Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-19271 | ||
Entity Registrant Name | IDEXX LABORATORIES INC /DE | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 01-0393723 | ||
Entity Address, Address Line One | One IDEXX Drive | ||
Entity Address, City or Town | Westbrook, | ||
Entity Address, State or Province | ME | ||
Entity Address, Postal Zip Code | 04092 | ||
City Area Code | 207 | ||
Local Phone Number | 556-0300 | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | IDXX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 28,964,148,468 | ||
Entity Common Stock, Shares Outstanding (in shares) | 82,903,371 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III—Specifically identified portions of the Company’s definitive Proxy Statement to be filed in connection with the Company’s 2023 annual meeting of stockholders (the “2023 Annual Meeting”), to be held on May 17, 2023, are incorporated herein by reference. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000874716 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Boston, Massachusetts |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 112,546,000 | $ 144,454,000 |
Accounts receivable, net of allowance of $8,265 in 2022 and $5,668 in 2021 | 400,619,000 | 368,348,000 |
Inventories | 367,823,000 | 269,030,000 |
Other current assets | 220,489,000 | 173,823,000 |
Total current assets | 1,101,477,000 | 955,655,000 |
Long-Term Assets: | ||
Property and equipment, net | 649,474,000 | 587,667,000 |
Operating lease right-of-use assets | 118,618,000 | 105,101,000 |
Goodwill | 361,795,000 | 359,345,000 |
Intangible assets, net | 97,672,000 | 99,035,000 |
Other long-term assets | 417,729,000 | 330,400,000 |
Total long-term assets | 1,645,288,000 | 1,481,548,000 |
TOTAL ASSETS | 2,746,765,000 | 2,437,203,000 |
Current Liabilities: | ||
Accounts payable | 110,221,000 | 116,140,000 |
Accrued liabilities | 433,662,000 | 458,909,000 |
Credit facility | 579,000,000 | 73,500,000 |
Current portion of long-term debt | 74,982,000 | 74,996,000 |
Current portion of deferred revenue | 37,938,000 | 40,034,000 |
Total current liabilities | 1,235,803,000 | 763,579,000 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 8,150,000 | 8,935,000 |
Long-term debt, net of current portion | 694,387,000 | 775,205,000 |
Long-term deferred revenue, net of current portion | 30,862,000 | 41,174,000 |
Long-term operating lease liabilities | 101,239,000 | 87,377,000 |
Other long-term liabilities | 67,587,000 | 70,941,000 |
Total long-term liabilities | 902,225,000 | 983,632,000 |
Total liabilities | 2,138,028,000 | 1,747,211,000 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 107,193 shares in 2022 and 106,878 shares in 2021; Outstanding: 82,894 shares in 2022 and 84,562 shares in 2021 | 10,719,000 | 10,688,000 |
Additional paid-in capital | 1,463,215,000 | 1,377,320,000 |
Deferred stock units: Outstanding: 58 units in 2022 and 90 units in 2021 | 5,182,000 | 5,719,000 |
Retained earnings | 3,599,529,000 | 2,920,440,000 |
Accumulated other comprehensive loss | (77,796,000) | (53,484,000) |
Treasury stock, at cost: 24,299 shares in 2022 and 22,317 shares in 2021 | (4,392,112,000) | (3,570,691,000) |
Total IDEXX Laboratories, Inc. stockholders’ equity | 608,737,000 | 689,992,000 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,746,765,000 | $ 2,437,203,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 8,265 | $ 5,668 |
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 107,193,000 | 106,878,000 |
Common stock, shares outstanding (in shares) | 82,894,000 | 84,562,000 |
Deferred stock units, outstanding (in shares) | 58,000 | 90,000 |
Treasury stock, shares (in shares) | 24,299,000 | 22,317,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Total revenue | $ 3,367,324 | $ 3,215,360 | $ 2,706,655 |
Cost of Revenue: | |||
Total cost of revenue | 1,362,986 | 1,325,928 | 1,135,615 |
Gross profit | 2,004,338 | 1,889,432 | 1,571,040 |
Expenses: | |||
Sales and marketing | 524,505 | 486,735 | 434,435 |
General and administrative | 326,248 | 309,660 | 300,832 |
Research and development | 254,820 | 161,009 | 141,249 |
Income from operations | 898,765 | 932,028 | 694,524 |
Interest expense | (39,858) | (29,808) | (33,125) |
Interest income | 1,065 | 434 | 586 |
Income before provision for income taxes | 859,972 | 902,654 | 661,985 |
Provision for income taxes | 180,883 | 157,810 | 79,854 |
Net income | 679,089 | 744,844 | 582,131 |
Less: Net (loss) income attributable to noncontrolling interest | 0 | (1) | 355 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ 679,089 | $ 744,845 | $ 581,776 |
Earnings per Share: | |||
Basic (in USD per share) | $ 8.12 | $ 8.74 | $ 6.82 |
Diluted (in USD per share) | $ 8.03 | $ 8.60 | $ 6.71 |
Weighted Average Shares Outstanding: | |||
Basic (in shares) | 83,623 | 85,200 | 85,342 |
Diluted (in shares) | 84,600 | 86,572 | 86,722 |
Product revenue | |||
Revenue: | |||
Total revenue | $ 1,928,773 | $ 1,875,308 | $ 1,586,809 |
Cost of Revenue: | |||
Total cost of revenue | 656,511 | 656,823 | 557,795 |
Service revenue | |||
Revenue: | |||
Total revenue | 1,438,551 | 1,340,052 | 1,119,846 |
Cost of Revenue: | |||
Total cost of revenue | $ 706,475 | $ 669,105 | $ 577,820 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 679,089 | $ 744,844 | $ 582,131 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (25,692) | (26,731) | 15,151 |
Defined benefit plans, net of tax expense of $(613) in 2022 | (3,282) | 0 | 0 |
Reclassification adjustment for defined benefit plans included in net income, net of tax of $99 in 2022 | 506 | 0 | 0 |
Unrealized gain (loss) on Euro-denominated notes, net of tax expense (benefit) of $1,411 in 2022, $2,011 in 2021 and $(2,325) in 2020 | 4,525 | 6,404 | (7,378) |
Unrealized gain (loss) on investments, net of tax expense (benefit) of $(14) in 2022, $46 in 2021 and $(120) in 2020 | (46) | 146 | (382) |
Unrealized gain (loss) on derivative instruments: | |||
Unrealized gain (loss) on foreign currency exchange contracts, net of tax expense (benefit) of $5,954 in 2022, $2,133 in 2021 and $(2,013) in 2020 | 14,851 | 9,139 | (8,527) |
Unrealized gain (loss) on cross currency swaps, net of tax expense (benefit) of $1,190 in 2022, $1,699 in 2021 and $(1,774) in 2020 | 3,817 | 5,399 | (5,626) |
Reclassification adjustment for (gain) loss included in net income, net of tax (expense) benefit of $(6,742) in 2022, $1,347 in 2021 and $(158) in 2020 | (18,991) | 5,774 | (671) |
Unrealized gain (loss) on derivative instruments | (323) | 20,312 | (14,824) |
Other comprehensive gain (loss), net of tax | (24,312) | 131 | (7,433) |
Comprehensive income | 654,777 | 744,975 | 574,698 |
Less: comprehensive income attributable to noncontrolling interest | 0 | (1) | 355 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ 654,777 | $ 744,976 | $ 574,343 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Defined benefit plans, net of tax expense | $ (613) | ||
Reclassification adjustment for benefit plans included in net income, net of tax | 99 | ||
Unrealized gain (loss) on Euro-denominated notes, tax expense (benefit) | 1,411 | $ 2,011 | $ (2,325) |
Unrealized gain (loss) on investments, tax expense (benefit) | (14) | 46 | (120) |
Unrealized gain (loss) on foreign currency exchange contracts, tax expense (benefit) | 5,954 | 2,133 | (2,013) |
Unrealized gain (loss) on cross currency swaps, tax expense (benefit) | 1,190 | 1,699 | (1,774) |
Reclassification adjustment for (gain) loss included in net income, tax (expense) benefit | $ (6,742) | $ 1,347 | $ (158) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest |
Balance beginning of period (in shares) at Dec. 31, 2019 | 105,711 | |||||||||
Balance beginning of period at Dec. 31, 2019 | $ 177,825 | $ (1,829) | $ 10,571 | $ 1,213,517 | $ 4,462 | $ 1,595,648 | $ (1,829) | $ (46,182) | $ (2,600,543) | $ 352 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 582,131 | 581,776 | 355 | |||||||
Other comprehensive gain (loss), net | (7,433) | (7,433) | ||||||||
Repurchases of common stock, net | (199,347) | (199,347) | ||||||||
Common stock issued under stock plans, net (in shares) | 746 | |||||||||
Common stock issued under stock plans, net | 50,497 | $ 75 | 51,368 | (946) | ||||||
Deferred stock units activity | 0 | (894) | 894 | |||||||
Share-based compensation cost | 30,951 | 30,858 | 93 | |||||||
Balance end of period (in shares) at Dec. 31, 2020 | 106,457 | |||||||||
Balance end of period at Dec. 31, 2020 | 632,795 | $ 10,646 | 1,294,849 | 4,503 | 2,175,595 | (53,615) | (2,799,890) | 707 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 744,844 | 744,845 | (1) | |||||||
Other comprehensive gain (loss), net | 131 | 131 | ||||||||
Acquisition of noncontrolling interest (Note 4) | (990) | (284) | (706) | |||||||
Repurchases of common stock, net | (770,801) | (770,801) | ||||||||
Common stock issued under stock plans, net (in shares) | 421 | |||||||||
Common stock issued under stock plans, net | 46,258 | $ 42 | 46,228 | (12) | ||||||
Deferred stock units activity | 0 | (1,035) | 1,035 | |||||||
Share-based compensation cost | $ 37,755 | 37,562 | 193 | |||||||
Balance end of period (in shares) at Dec. 31, 2021 | 106,878 | 106,878 | ||||||||
Balance end of period at Dec. 31, 2021 | $ 689,992 | $ 10,688 | 1,377,320 | 5,719 | 2,920,440 | (53,484) | (3,570,691) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 679,089 | 679,089 | ||||||||
Other comprehensive gain (loss), net | (24,312) | (24,312) | ||||||||
Repurchases of common stock, net | (821,421) | (821,421) | ||||||||
Common stock issued under stock plans, net (in shares) | 315 | |||||||||
Common stock issued under stock plans, net | 35,619 | $ 31 | 36,654 | (1,066) | 0 | |||||
Deferred stock units activity | 0 | (459) | 459 | |||||||
Share-based compensation cost | $ 49,770 | 49,700 | 70 | |||||||
Balance end of period (in shares) at Dec. 31, 2022 | 107,193 | 107,193 | ||||||||
Balance end of period at Dec. 31, 2022 | $ 608,737 | $ 10,719 | $ 1,463,215 | $ 5,182 | $ 3,599,529 | $ (77,796) | $ (4,392,112) | $ 0 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 679,089 | $ 744,844 | $ 582,131 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 111,900 | 104,596 | 95,998 |
Impairment charge | 2,346 | 5,148 | 2,501 |
Provision for uncollectible accounts | 5,829 | 1,484 | 4,946 |
Deferred income taxes | (35,065) | (3,377) | (38,082) |
Share-based compensation expense | 49,770 | 37,755 | 30,951 |
Other | 2,645 | 2,619 | 1,379 |
Changes in assets and liabilities: | |||
Accounts receivable | (41,398) | (33,141) | (60,722) |
Inventories | (121,731) | (52,919) | (18,885) |
Accounts payable | 3,467 | 11,233 | 981 |
Deferred revenue | (11,019) | (7,551) | (13,373) |
Other assets and liabilities | (102,849) | (55,145) | 60,238 |
Net cash provided by operating activities | 542,984 | 755,546 | 648,063 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (148,838) | (119,549) | (106,958) |
Acquisitions of intangible assets | (10,000) | 0 | (668) |
Equity investments | (25,000) | 0 | (250) |
Acquisitions of businesses, net of cash acquired | (11,512) | (173,418) | (1,500) |
Net cash used by investing activities | (195,350) | (292,967) | (109,376) |
Cash Flows from Financing Activities: | |||
Borrowings (repayments) on credit facility, net | 505,500 | 73,500 | (289,625) |
Issuance of senior notes | 0 | 0 | 200,000 |
Payments of senior notes | (75,000) | (50,000) | 0 |
Debt issuance costs | (435) | (2,650) | (5,025) |
Purchase of minority interest | 0 | (990) | 0 |
Repurchases of common stock, net | (819,711) | (746,777) | (182,815) |
Proceeds from exercises of stock options and employee stock purchase plans | 35,747 | 46,565 | 51,328 |
Payment of acquisition-related contingent consideration and holdbacks | (6,431) | (1,500) | (1,676) |
Shares withheld for statutory tax withholding payments on restricted stock | (10,606) | (15,562) | (20,603) |
Net cash used by financing activities | (370,936) | (697,414) | (248,416) |
Net effect of changes in exchange rates on cash | (8,606) | (4,639) | 3,331 |
Net (decrease) increase in cash and cash equivalents | (31,908) | (239,474) | 293,602 |
Cash and cash equivalents at beginning of period | 144,454 | 383,928 | 90,326 |
Cash and cash equivalents at end of period | $ 112,546 | $ 144,454 | $ 383,928 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business, Basis of Presentation and Principles of Consolidation | NATURE OF BUSINESS, BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements of IDEXX Laboratories, Inc. and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the requirements of Regulation S-X. These statements include the accounts of IDEXX Laboratories, Inc., and our wholly-owned and majority-owned subsidiaries (“IDEXX,” the “Company,” “we,” or “our”). We do not have any variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We have included certain terms and abbreviations used throughout these financial statements in the “Glossary of Terms and Selected Abbreviations.” We develop, manufacture, and distribute products and provide services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing industries. We also sell human medical point-of-care products and laboratory diagnostics. Our principal line of business, which we refer to as our Companion Animal Group (“CAG”) operating segment, provides diagnostic capabilities and information management solutions for the companion animal veterinary industry, as well as the biomedical research community. Our principal regions for these products and services are the North America, Europe, Australia, and Japan, but we also sell to customers and distributors in many other countries around the world. Our Water operating segment provides innovative testing solutions for the quality and safety of water principally in the U.S. and Europe, but we also sell to customers in many other countries around the world. Our Livestock, Poultry and Dairy (“LPD”) operating segment provides diagnostic tests and related instrumentation and performs services that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. Our principal regions for these products and services are Europe, United States, China, Australia, and Brazil, but we also sell to customers in many other countries around the world. We also operate a smaller operating segment that is comprised of our human medical diagnostic products and services business (“OPTI Medical”). Financial information about our OPTI Medical operating segment is combined and presented with our out-licensing arrangements remaining from our pharmaceutical business in an “Other” category because they do not meet the quantitative or qualitative thresholds for reportable segments. Refer to “Note 3. Revenue Recognition” for additional information regarding disaggregated revenue by segment, major product and service categories, and geographical areas. Refer to “Note 17. Segment Reporting” for additional information regarding our reportable operating segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Estimates The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable and customer contract assets and lease receivables; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, including product returns and customer contracts with multiple performance obligations; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates. ( b ) Cash and Cash Equivalents We consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits, money market funds, and short-duration agency bonds and commercial paper as described above. There is no restricted cash on our consolidated balance sheets for the years ended December 31, 2022 and 2021. (c) Inventories – Refer to Note 7 (d) Property and Equipment – Refer to Note 9 (e) Goodwill and Other Intangible Assets – Refer to Note 11 (f) Warranty Reserves We provide a standard twelve-month warranty on all diagnostic instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environments, historical and estimated costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. The amount of warranty reserve during the years ended December 31, 2022 and 2021, was not material. (g) Income Taxes – Refer to Note 14 (h) Taxes Remitted to Governmental Authorities by IDEXX on Behalf of Customer We calculate, collect from our customers, and remit to governmental authorities, sales, value-added, and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. (i) Revenue Recognition – Refer to Note 3 (j) Research and Development Costs Research and development costs, which consist of employee compensation and benefits, certain licensing agreements, materials, external consulting, and product development costs, are expensed as incurred. We evaluate our research and development costs for capitalization after the technological feasibility has been established for software and products containing software to be sold; however, no costs were capitalized during the years ended December 31, 2022, 2021, and 2020. Software developed to deliver hosted services to our customers has been designated as internal use, and we capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Refer to “Note 9. Property and Equipment, Net” for further information on internal use software. (k) Advertising Costs Advertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $5.0 million, $3.3 million, and $1.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. (l) Legal Costs Legal costs are considered period costs and, accordingly, are expensed in the year services are provided. (m) Share-Based Compensation – Refer to Note 5 (n) Leases – Refer to Note 8 (o) Earnings per Share – Refer to Note 15 (p) Foreign Currency The functional currency of six of our foreign subsidiaries is the U.S. dollar. Assets and liabilities of our other foreign subsidiaries, whose functional currency is their local currency, are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”). Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses within our Other segment. We recognized aggregate foreign currency losses of $3.4 million, losses of $2.1 million, and gains of $0.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. (q) Hedging Instruments – Refer to Note 19 (r) Fair Value Measurements – Refer to Note 18 (s) Comprehensive Income We report all changes in equity, including net income and transactions or other events and circumstances from non-owner sources during the period in which they are recognized. We have chosen to present comprehensive income, which encompasses net income, foreign currency translation adjustments, gains and losses on our net investment hedges, defined benefit plan adjustments, and the difference between the cost and the fair market value of investments in debt and equity securities, and forward currency exchange contracts, in the consolidated statements of comprehensive income. Refer to “Note 21. Accumulated Other Comprehensive Income” for information about the effects on net income of significant amounts reclassified out of each component of AOCI for the years ended December 31, 2022, 2021, and 2020. (t) Equity and Cost Methods of Accounting for Investments Investments where we have the ability to exercise significant influence, but do not control the entity, are accounted for under the equity method of accounting. Significant influence generally exists if we have a 20% to 50% ownership interest in the investee. Equity investments in entities for which we do not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost less impairment, if any, adjusted for changes resulting from qualifying observable price changes for the identical investment of the same issuer should they occur. We evaluate our investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an investment is determined to be other than temporary, a loss is recorded in earnings in the current period. As of December 31, 2022 and 2021, our equity investments of $30.3 million and $5.3 million, respectively, are recorded at cost in other long-term assets. Refer to “Note 4. Acquisitions, Asset Purchases and Investments” for additional information regarding our acquisition of equity investments. (u) Concentrations of Risk Financial Instruments . Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, contract assets, lease receivables, and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. To reduce credit risk with respect to accounts receivable, contract assets, and lease receivables, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable, contract assets, and lease receivables credit risk exposure is limited. We maintain allowances for expected credit losses, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with counterparties to our derivative transactions and frequently monitor the creditworthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. Inventory . If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell, as well as certain components, raw materials and consumables used in or with our products, are sole or single-source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. (v) New Accounting Pronouncements Adopted We adopted ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” effective January 1, 2020, using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables and leased equipment. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a non-cash cumulative effect adjustment to retained earnings of $1.8 million, net of $0.6 million of income taxes, on our opening consolidated balance sheet as of January 1, 2020. This adjustment, before the impact of income taxes, was comprised of $2.3 million related to our contract assets and sales-type leases, and $0.2 million related to accounts receivable. Refer to “Note 6. Credit Losses” for more information on our presentation of credit losses. Effective January 1, 2021, we adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around goodwill recognized for tax purposes and the allocation of current and deferred tax expense among legal entities, among other minor changes. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments.” ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if another lease classification (i.e., sales-type or direct financing) would result in recognition of a day-one loss. We elected to adopt this standard as of the third quarter of 2021, on a prospective basis. The adoption of ASU 2021-05 did not have a material impact on our consolidated financial statements. (w) New Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which adds certain disclosure requirements for a buyer in a supplier finance program. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated roll-forward information. In interim reporting periods, the amount outstanding at the end of the period is required to be disclosed. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose roll-forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted. We do not expect this guidance will have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities.” ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. This standard is effective for fiscal years beginning after December 15, 2022. Adoption of the ASU 2021-08 should be applied prospectively. We do not expect this guidance will have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Our revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To accurately present the consideration received in exchange for promised products or services, we apply the five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations 5. Recognition of revenue when, or as, we satisfy a performance obligation We enter into contracts where customers purchase combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The timing of revenue recognition, billings, and cash collections results in accounts receivable, lease receivables, and contract assets as a result of revenue recognized in advance of billings, and contract liabilities or deferred revenue as a result of receiving consideration in advance of revenue recognition within our consolidated balance sheet. Our general payment terms range from 30 to 60 days, with exceptions in certain geographies. Contracts may be amended to account for changes in contract specifications and requirements. Contract modifications exist when the amendment either creates new, or changes existing, enforceable rights and obligations. A modification is considered to be a separate contract, and revenue is recognized prospectively, when the modification creates new performance obligations to deliver additional goods or services and the related increase in consideration approximates the standalone selling price for the additional goods or services. If a contract modification does not create a new performance obligation to deliver new goods and/or services but the goods and/or services to be delivered after the contract modification date are distinct from the goods and/or services delivered on or before the contract modification date, then this contract modification is not accounted for as a separate contract, and we account for the goods and/or services to be delivered after the contract modification date prospectively. We account for a contract modification as if it were a part of the existing contract if the remaining goods or services are not distinct and, therefore, form part of a single performance obligation that is partially satisfied at the date of the contract modification. The effect that these contract modifications have on the transaction price, and on our measure of progress toward complete satisfaction of the performance obligation, is recognized as an adjustment to revenue at the date of the contract modification, with the adjustment to revenue made on a cumulative catch-up basis. Below is a listing of our major categories of revenue for our products and services. Diagnostic Products and Accessories . Diagnostic products and accessories revenues, including IDEXX VetLab ® consumables and accessories, rapid assay, LPD, Water, and OPTI testing products, are predominantly recognized and invoiced at the time of shipment, which is when the customer obtains control of the product based on legal title transfer and we have the right to payment. We also provide customers with certain consumables that are recognized upon utilization by the customer, which is when we have the right to payment and the risks and rewards of ownership transfer. Shipping costs reimbursed by the customer are included in revenue and cost of sales. As a practical expedient, we do not account for shipping activities as a separate performance obligation. Laboratory Diagnostic and Consulting Services . Laboratory diagnostic and consulting services revenues are recognized and invoiced when the laboratory diagnostic service is performed. Instruments, Software and Systems . CAG Diagnostics capital instruments, veterinary software, and diagnostic imaging systems revenues are recognized and invoiced when the customer obtains control of the products based on legal title transfer and we have the right to payment, which generally occurs at the time of installation and customer acceptance. Our instruments, software, and systems are often included in one of our significant customer programs, as further described below. For veterinary software systems that include multiple performance obligations, such as perpetual software licenses and computer hardware, we allocate revenue to each performance obligation based on estimates of the price that we would charge the customer for each promised product or service if it were sold on a standalone basis. Lease Revenue . Revenues from instrument rental agreements and reagent rental programs are recognized either as operating leases on a ratable basis over the term of the agreement or as sales-type leases at the time of installation and customer acceptance. Customers typically pay for the right to use instruments under rental agreements in equal monthly amounts over the term of the rental agreement. Our reagent rental programs provide our customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded lease for the right to use our instruments. For some agreements, the customers are provided with the right to purchase the instrument at the end of the lease term. Lease revenues from these agreements are presented in product revenue on our consolidated income statement. Lease revenue was approximately $20.3 million for the year ended December 31, 2022, as compared to $20.8 million for the year ended December 31, 2021, including both operating leases and sales-type leases under ASC 842, Leases, for leases entered into after January 1, 2019, and ASC 840, Leases, for leases entered into prior to 2019. Refer to below for revenue recognition under our reagent rental programs. Extended Warranties and Post-Contract Support . CAG Diagnostics capital instruments and diagnostic imaging systems extended warranties typically provide customers with continued coverage for a period of one five years Veterinary software post-contract support provides customers with access to technical support when and as needed through access to call centers and online customer assistance. Post-contract support contracts typically have a term of 12 months and customers are billed for post-contract support in equal quarterly amounts over the term. We recognize revenue for post-contract support services over time on a ratable basis using a time-elapsed measure of performance over the contract term, which approximates the expected timing in which applicable services are performed. On December 31, 2021, our deferred revenue related to extended warranties and post-contract support was $30.0 million, of which approximately $21.3 million was recognized during the year ended December 31, 2022. Furthermore, as a result of new agreements, our deferred revenue related to extended warranties and post-contract support was $26.4 million at December 31, 2022. We do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less, and do not adjust for the effect of the financing components when the period between customer payment and revenue recognition is one year or less. Deferred revenue related to extended warranties and post-contract support with an original duration of more than one year was $11.3 million at December 31, 2022, of which approximately 44%, 31%, 14%, 6%, and 5% are expected to be recognized during 2023, 2024, 2025, 2026, and thereafter, respectively. We have determined these agreements do not include a significant financing component. SaaS Subscriptions . We offer a variety of veterinary software and diagnostic imaging SaaS subscriptions including ezyVet, Animana, Neo, Cornerstone Cloud, Pet Health Network Pro, Petly Plans, Web PACS, rVetLink, and SmartFlow. We recognize revenue for our SaaS subscriptions over time on a ratable basis over the contract term, beginning on the date our service is made available to the customer. Our subscription contracts vary in term from monthly to two years. Customers typically pay for our subscription contracts in equal monthly amounts over the term of the agreement. Deferred revenue related to our SaaS subscriptions is not material. Contracts with Multiple Performance Obligations . We enter into contracts with multiple performance obligations where customers purchase a combination of IDEXX products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires significant judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services. To the extent the transaction price includes variable consideration, such as volume rebates or expected price adjustments, we apply judgment in constraining the estimated variable consideration due to factors that may cause reversal of revenue recognized. We evaluate constraints based on our historical and projected experience with similar customer contracts. We allocate revenue to each performance obligation in proportion to the relative standalone selling prices, and recognize revenue when transfer of the related goods or services has occurred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the promised product or service when sold separately. When standalone selling prices for our products or services are not directly observable, we determine the standalone selling prices using relevant information available and apply suitable estimation methods including, but not limited to, the cost plus a margin approach. We recognize revenue as each performance obligation is satisfied, either at a point in time or over time, as described in the revenue categories above. We do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less. The following customer programs represent our most significant customer contracts which contain multiple performance obligations: Customer Commitment Programs . We offer customer incentives upon entering into multi-year agreements to purchase annual minimum amounts of products and services. Up-Front Customer Loyalty Programs . Our up-front loyalty programs provide customers with incentives in the form of cash payments or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services. If a customer breaches their agreement, they are required to refund all or a portion of the up-front cash or IDEXX Points, or make other repayments, remedial actions, or both. Up-front incentives to customers in the form of cash or IDEXX Points are not made in exchange for distinct goods or services and are capitalized as customer acquisition costs within other current and long-term assets, which are subsequently recognized as a reduction to revenue over the term of the customer agreement. If these up-front incentives are subsequently utilized to purchase instruments, we allocate total consideration, including future committed purchases less up-front incentives and estimates of expected price adjustments, based on relative standalone selling prices to identified performance obligations, and recognize instrument revenue and cost at the time of installation and customer acceptance. To the extent invoiced instrument revenue exceeds recognized instrument revenue, we record deferred revenue as a contract liability, which is subsequently recognized upon the purchase of products and services over the term of the contract. We have determined these agreements do not include a significant financing component. On December 31, 2021, our capitalized customer acquisition costs were $158.3 million, of which approximately $48.9 million was recognized as a reduction of revenue during the year ended December 31, 2022. Furthermore, as a result of new up-front customer loyalty payments, net of subsequent recognition, our capitalized customer acquisition costs were $158.0 million at December 31, 2022. We monitor customer purchases over the term of their agreement to assess the realizability of our capitalized customer acquisition costs and review estimates of variable consideration. Impairments and revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustments to revenue arising from contract modifications, during the years ended December 31, 2022 and 2021, were not material. Volume Commitment Programs . Our volume commitment programs, such as our IDEXX 360 program, provide customers with free or discounted instruments or systems upon entering into multi-year agreements to purchase annual minimum amounts of products and services. We allocate total consideration, including future committed purchases and expected price adjustments, based on relative standalone selling prices to identified performance obligations and recognize instrument revenue and cost at the time of installation and customer acceptance in advance of billing the customer, which is also when the customer obtains control of the instrument based on legal title transfer. Our right to future consideration related to instrument revenue is recorded as a contract asset within other current and long-term assets. The contract asset is transferred to accounts receivable when customers are billed for products and services over the term of the contract. We have determined these agreements do not include a significant financing component. On December 31, 2021, our volume commitment contract assets were $159.9 million, of which approximately $38.0 million was reclassified to accounts receivable when customers were billed for related products and services during the year ended December 31, 2022. Furthermore, as a result of new placements under volume commitment programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our volume commitment contract assets were $190.8 million at December 31, 2022. We monitor customer purchases over the term of their agreement to assess the realizability of our contract assets and review estimates of variable consideration. Impairments and revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustments to revenue arising from contract modifications, during the years ended December 31, 2022 and 2021, were not material. For our up-front customer loyalty and volume commitment programs, we estimate future revenues related to multi-year agreements to be approximately $3.2 billion, of which approximately 28%, 25%, 20%, 15%, and 12% are expected to be recognized during 2023, 2024, 2025, 2026, and thereafter, respectively. These future revenues relate to performance obligations not yet satisfied, for which customers have committed to future purchases, net of the expected revenue reductions from customer acquisition costs and expected price adjustments, and as a result, are lower than stated contractual commitments by our customers. Instrument Rebate Programs . Our instrument rebate programs require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program. We account for the customer’s right to earn rebates on future purchases as a separate performance obligation and determine the standalone selling price based on an estimate of rebates the customer will earn over the term of the program. Total consideration allocated to identified performance obligations is limited to goods and services that the customer is presently obligated to purchase and does not include estimates of future purchases that are optional. We allocate total consideration to identified performance obligations, including the customer’s right to earn rebates on future purchases, which is deferred and subsequently recognized upon the purchase of products and services, partly offsetting rebates as they are earned. On December 31, 2021, our deferred revenue related to instrument rebate programs was $33.0 million, of which approximately $12.0 million was recognized when customers purchased eligible products and services and earned rebates during the year ended December 31, 2022. Furthermore, as a result of new instrument purchases under rebate programs, net of subsequent recognition, our deferred revenue was $25.6 million at December 31, 2022, of which approximately 36%, 25%, 17%, 13%, and 9% are expected to be recognized during 2023, 2024, 2025, 2026, and thereafter, respectively. Reagent Rental Programs . Our reagent rental programs provide our customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded lease for the right to use our instrument and we determine the amount of lease revenue allocated to the instrument based on relative standalone selling prices. We evaluate the terms of these embedded leases to determine classification as either a sales-type lease or an operating lease. Sales-type Reagent Rental Programs . Our reagent rental programs that effectively transfer control of instruments to our customers are classified as sales-type leases and we recognize instrument revenue and cost in advance of billing the customer, at the time of installation and customer acceptance. Our right to future consideration related to instrument revenue is recorded as a lease receivable within other current and long-term assets, and is transferred to accounts receivable when customers are billed for products and services over the term of the contract. On December 31, 2021, our lease receivable assets were $15.3 million, of which approximately $3.4 million was reclassified to accounts receivable when customers were billed for related products and services during the year ended December 31, 2022. Furthermore, as a result of new placements under sales-type reagent rental programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our lease receivable assets were $18.4 million at December 31, 2022. The impacts of discounting and unearned income at December 31, 2022, were not material. Profit and loss recognized at the commencement date and interest income during the year ended December 31, 2022 were not material. We monitor customer purchases over the term of their agreement to assess the realizability of our lease receivable assets. Impairments during the year ended December 31, 2022 were not material. Operating-type Reagent Rental Programs . Our reagent rental programs that do not effectively transfer control of instruments to our customers are classified as operating leases and we recognize instrument revenue and costs ratably over the term of the agreement. The cost of the instrument is capitalized within property and equipment. We estimate future revenue to be recognized related to our reagent rental programs of approximately $42.8 million, of which approximately 30%, 25%, 20%, 13%, and 12% are expected to be recognized during 2023, 2024, 2025, 2026, and thereafter, respectively. These future revenues relate to performance obligations not yet satisfied for which customers have committed to future purchases, net of expected price adjustments, and as a result, may be lower than stated contractual commitments by our customers. Other Customer Incentive Programs . Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified purchase threshold of goods and services. We account for these discounts as variable consideration and estimate the likelihood of a customer meeting the threshold in order to determine the transaction price using the most predictive approach. We typically use the most-likely-amount method for incentives that are offered to individual customers, and the expected-value method for programs that are offered to a broad group of customers. Revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustments to revenue arising from contract modifications, during the years ended December 31, 2022 and 2021, were not material. Refund obligations related to customer incentive programs are recorded in accrued liabilities for the actual issuance of incentives, incentives earned but not yet issued, and estimates of incentives to be earned in the future. Program Combinations . At times, we combine elements of our significant customer programs within a single customer contract. We separate each significant program element and include the contract assets, customer acquisition costs, deferred revenues, and estimated future revenues within the most relevant program disclosures above. Each customer contract is presented as a net contract asset or net contract liability on our consolidated balance sheet. IDEXX Points . IDEXX Points may be applied to trade receivables due to us, converted to cash, or applied against the purchase price of IDEXX products and services. We consider IDEXX Points equivalent to cash. IDEXX Points that have not yet been used by customers are included in accrued liabilities until utilized or expired. Breakage is not material because customers can apply IDEXX Points to trade receivables at any time. Accounts Receivable . We recognize revenue when it is probable that we will collect substantially all of the consideration to which we will be entitled, based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. We have no significant customers that accounted for greater than 10% of our consolidated revenues and we have no concentration of credit risk as of December 31, 2022. Disaggregated Revenues . We present disaggregated revenue for our CAG segment based on major product and service categories. Our Water segment is comprised of a single major product category. Although our LPD segment does not meet the quantitative requirements to be reported as a separate segment, we believe it is important to disaggregate these revenues as a major product and service category separately from our Other reportable segment given its distinct markets, and therefore we have elected to report LPD as a reportable segment. The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Years Ended December 31, 2022 2021 2020 CAG segment revenue: CAG Diagnostics recurring revenue: $ 2,660,280 $ 2,534,562 $ 2,113,839 IDEXX VetLab consumables 1,057,236 1,006,781 824,376 Rapid assay products 313,667 296,852 253,018 Reference laboratory diagnostic and consulting services 1,178,113 1,123,656 946,268 CAG Diagnostics services and accessories 111,264 107,273 90,177 CAG Diagnostics capital - instruments 147,326 149,140 108,950 Veterinary software, services and diagnostic imaging systems 251,187 206,258 162,976 CAG segment revenue 3,058,793 2,889,960 2,385,765 Water segment revenue 155,720 146,505 128,625 LPD segment revenue 122,607 135,887 145,845 Other segment revenue 30,204 43,008 46,420 Total revenue $ 3,367,324 $ 3,215,360 $ 2,706,655 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Years Ended December 31, 2022 2021 2020 Americas United States $ 2,182,959 $ 1,995,683 $ 1,691,224 Canada 142,743 139,727 107,398 Latin America & Caribbean 75,035 66,623 51,863 2,400,737 2,202,033 1,850,485 Europe, the Middle East and Africa Germany 137,876 146,762 119,353 United Kingdom 110,400 114,955 90,156 France 84,479 90,836 74,814 Italy 48,192 52,062 42,817 Spain 46,982 48,169 39,265 Switzerland 30,646 31,984 24,850 Netherlands 26,882 29,656 23,461 Other 161,577 167,525 148,049 647,034 681,949 562,765 Asia Pacific Region Australia 96,408 94,414 79,629 Japan 77,661 84,275 74,725 China 49,193 63,166 70,845 Other 96,291 89,523 68,206 319,553 331,378 293,405 Total $ 3,367,324 $ 3,215,360 $ 2,706,655 Costs to Obtain a Contract . We capitalize sales commissions and the related fringe benefits earned by our sales force when considered incremental and recoverable costs of obtaining a contract that includes future performance obligations. Our contracts include performance obligations related to various goods and services, some of which are satisfied at a point in time and others over time. Commission costs related to performance obligations satisfied at a point in time are expensed at the time of sale, which is when revenue is recognized. Commission costs related to long-term service contracts and performance obligations satisfied over time, including extended warranties and SaaS subscriptions, are deferred and recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We apply judgment in estimating the amortization period, which ranges from 3 to 7 years, by taking into consideration our customer contract terms, history of renewals, and expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of income. Deferred commission costs are periodically reviewed for impairment. On December 31, 2021, our deferred commission costs, included within other assets, were $19.5 million, of which approximately $6.5 million of commission expense was recognized during the year ended December 31, 2022. Furthermore, as a result of commissions related to new extended warranties and SaaS subscriptions, net of subsequent recognition, our deferred commission costs were $19.2 million at December 31, 2022. Impairments of deferred commission costs during the years ended December 31, 2022 and 2021, were not material. |
Acquisitions, Asset Purchases a
Acquisitions, Asset Purchases and Investments | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Asset Purchases and Investments | ACQUISITIONS, ASSET PURCHASES AND INVESTMENTS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range, customer base, or existing product and service lines. From time to time, we may acquire small reference laboratories or radiology practices that we account for as either asset purchases or business combinations. Asset Purchases and Investments During 2022, we entered into two discrete arrangements to license intellectual property for which we paid $65.0 million and accrued $15.0 million in subsequent payments, all of which was charged to research and development expense. The $15.0 million milestone payment was issued in the first quarter of 2023. These two arrangements were treated as asset acquisitions under U.S. GAAP and resulted in the full amount being expensed to research and development expense as in- process research and development costs with no alternative future use. The acquisition of these licensing arrangements supports new instrument platform advancements. We also made a $10.0 million payment for a perpetual intellectual property license, which will be amortized over 10 years. The research and development expense and amortization expense were recorded in our CAG segment. During 2022 we also purchased $25.0 million of preferred shares for a noncontrolling minority interest in one of the entities with which we have a license agreement. We have elected to measure the investment as an equity security investment, under ASC 321, “Investment - Equity Securities,” and recorded the investment at cost. The investment is included in other long-term assets. Business Combinations During the third quarter of 2022, we acquired the assets of an international water testing company located in Canada for approximately $12.8 million in cash, including a holdback of approximately $1.3 million. This acquisition expands our product offering in the Water segment. The fair values of the assets and liabilities acquired consists of technology intangibles of approximately $3.4 million, with a life of 10 years; customer relationship intangibles of approximately $1.2 million, with a life of 10 years; approximately $6.9 million of goodwill, representing synergies with our Water testing portfolio; and approximately $1.3 million of tangible assets, including inventory and accounts receivable. Goodwill related to this acquisition is expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our Water segment since the acquisition date. The acquisition expenses were not material. During the fourth quarter of 2021, we acquired the shares of a reference laboratory located in Finland for approximately $13.4 million in cash, including a holdback of approximately $1.4 million. This acquisition expands our international reference laboratory presence and was accounted for as a business combination. The fair values of the assets acquired consist of customer relationship intangibles of approximately $7.4 million, with a life of 10 years; a non-compete agreement of approximately $0.8 million, with a life of 3 years; approximately $6.9 million of goodwill, representing synergies within our broader CAG portfolio; and approximately $1.7 million in net tangible liabilities. Goodwill related to this acquisition is not expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. During the third quarter of 2021, we acquired the assets of a teleradiology business for approximately $5.4 million, including a contingent payment of $0.3 million. This acquisition expands our current teleradiology capability. The acquired assets primarily consist of a customer relationship intangible of approximately $1.7 million, with a weighted average life of 10 years , and approximately $3.7 million in goodwill. Goodwill related to this acquisition is expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. During the second quarter of 2021, we acquired the assets of the ezyVet cloud-based veterinary software businesses and the shares of ezyVet US, Inc., as well as the Vet Radar business assets, for approximately $157.2 million, including an estimated contingent payment of $5.0 million. The acquired assets include the ezyVet cloud-native practice management system software and the Vet Radar cloud-based workflow management software. The acquisition expands our cloud-based software offerings to support our customers with technology solutions that raise the standards of care for patients and improve practice efficiency. The fair values of assets acquired were as follow: approximately $32.0 million in customer-related intangible with a weighted average life of 10 years; approximately $8.4 million in technology-related intangibles with a weighted average life of 6 years; approximately $2.4 million in trademarks with a weighted average life of 14 years; approximately $1.8 million in non-compete agreements with a weighted average life of 5 years; approximately $109.4 million in goodwill, r epresenting synergies within our broader CAG portfolio; and approximately $3.2 million in net tangible assets. Goodwill has been allocated to multiple reporting units based upon the fair value of projected earnings as of the date of the acquisition. The goodwill was allocated as follows: approximately $23.4 million to IDEXX VetLab®, approximately $27.0 million to Reference Laboratories, approximately $11.1 million to Rapid Assay, and approximately $47.9 million to Veterinary Software Services. Goodwill related to this acquisition is expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. During the fourth quarter of 2021, we increased the contingent payable by $2.0 million, for a total expected payment of $7.0 million, which was subsequently paid during 2022. The increase to the contingent payment is expensed as the adjustment was made after the measurement period. The acquisition expenses were approximately $2.2 million. During the first quarter of 2021, we acquired the shares of a reference laboratory located in Switzerland for approximately $5.5 million in cash, including holdback and contingent payments of approximately $1.1 million. This acquisition expands our international reference laboratory presence and was accounted for as a business combination. The fair values of the assets acquired consist of approximately $4.3 million in intangible assets, primarily for customer relationships, which will be amortized over 9 years, approximately $1.8 million for goodwill, representing synergies within our broader CAG portfolio, and approximately $0.6 million of liabilities, including deferred taxes associated with the acquired intangible assets. Goodwill related to this acquisition is not deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. Acquisition of noncontrolling interest |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We provide for various forms of share-based compensation awards to our employees and non-employee directors. Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights, and other stock unit awards. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. For stock options, restricted stock units (“RSUs”), and deferred stock units (“DSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award for stock options. For performance-based restricted stock units (“PBRSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a grade-vesting methodology over the requisite service period. Stock options permit a holder to buy IDEXX stock upon vesting at the stock option exercise price set on the day of grant. An RSU is an agreement to issue shares of IDEXX stock at the time of vesting. A PBRSU is an agreement to issue shares of IDEXX stock at the time of vesting upon successful completion of certain performance goals. DSUs are granted under our Executive Deferred Compensation Plan (the “Executive Plan”) and non-employee Director Deferred Compensation Plan (the “Director Plan”). DSUs may or may not have vesting conditions depending on the plan under which they are issued. We did not issue any restricted stock or stock appreciation rights during the years ended December 31, 2022, 2021, and 2020, nor were any restricted stock or stock appreciation rights outstanding as of those years ended. We primarily issue shares of common stock to satisfy stock option exercises and employee stock purchase rights and to settle RSUs, PBRSUs, and DSUs. We issue shares of treasury stock to settle certain RSUs and upon the exercise of certain stock options, which were not material for the years ended December 31, 2022, 2021, and 2020. The number of shares of common stock and treasury stock issued are equivalent to the number of awards exercised or settled. With the exception of employee stock purchase rights, equity awards are issued to employees and non-employee di rectors under the 2018 Stock Incentive Plan (the “2018 Stock Plan”). Our Board of Directors has authorized the issuance of 7.5 million shar es of our common stock under the 2018 Stock Plan. Any shares that are subject to awards of stock options or stock appreciation rights will be counted against the share limit as one share for every share granted. Any shares that are issued other than stock options and stock appreciation rights will be counted against the share limit as 2.4 shares for every share granted. If any shares issued under our prior plans are forfeited, settled for cash, or expire, these shares, to the extent of such forfeiture, cash settlement, or expiration, will again be available for issuance under the 2018 Stock Plan. As of December 31, 2022, there were approximately 6.3 million remaining shares available for issuance under the 2018 Stock Plan. Share-Based Compensation Share-based compensation costs are classified in the consolidated financial statements consistent with the classification of cash compensation paid to the employees receiving such share-based compensation. The following is a summary of share-based compensation costs and related tax benefits recorded in our consolidated statements of income: (in thousands) For the Years Ended December 31, 2022 2021 2020 Share-based compensation expense included in cost of revenue $ 4,638 $ 4,044 $ 3,415 Share-based compensation expense included in operating expenses 45,132 33,711 27,536 Total share-based compensation expense included in consolidated statements of income 49,770 37,755 30,951 Income tax benefit resulting from share-based compensation expense (4,658) (4,734) (3,965) Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards 45,112 33,021 26,986 Income tax benefit resulting from settlement of share-based awards (12,522) (32,474) (38,981) Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income $ 32,590 $ 547 $ (11,995) There were no material modifications to the terms of outstanding options, RSUs, PBRSUs, or DSUs during the years ended December 31, 2022, 2021, or 2020. Share-based compensation expense is reduced for an estimate of the number of awards that are expected to be forfeited. We use historical data and other factors to estimate expected employee terminations and to evaluate whether particular groups of employees have significantly different forfeiture expectations. Our share-based awards granted in certain years include a retirement provision for all employees based on age and length of service. These grants are subject to accelerated expensing if the holder meets the retirement definition set forth in the applicable equity and incentive plan document. The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards at December 31, 2022, was $65.1 million, which will be recognized over a weighted average period of approximately 1.3 years. Stock Options Prior to December 4, 2019, all options granted to employees primarily vest ratably over five years on each anniversary of the date of grant. Options granted to non-employee directors vest fully on the first anniversary of the date of grant. Employee grants after December 4, 2019 vest ratably over four years. Vesting of option awards issued is conditional based on continuous service, unless the employee retires under the retirement provision, for grants issued in 2018, 2019, and 2022, for which they will vest for two We use the Black-Scholes-Merton option-pricing model to determine the fair value of options granted. Option-pricing models require the input of highly subjective assumptions, particularly for the expected stock price volatility and the expected term of options. Changes in the subjective input assumptions can affect the fair value estimate. Our expected stock price volatility assumptions are based on the historical volatility of our stock over periods that are similar to the expected terms of grants and other relevant factors. We derive the expected term based on historical experience and other relevant factors concerning expected employee behavior with regard to option exercise. The risk-free interest rate is based on U.S. Treasury yields for a maturity approximating the expected term calculated at the date of grant. We have never paid any cash dividends on our common stock and we have no intention to pay a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. We determine the assumptions used in the valuation of option awards as of the date of grant. Differences in the expected stock price volatility, expected term or risk-free interest rate may necessitate distinct valuation assumptions at those grant dates. As such, we may use different assumptions for options granted throughout the year. The weighted averages of the valuation assumptions used to determine the fair value of each option award on the date of grant and the weighted average estimated fair values were as follows: For the Years Ended December 31, 2022 2021 2020 Expected stock price volatility 30 % 30 % 27 % Expected term, in years 6.4 6.2 6.0 Risk-free interest rate 2.1 % 0.7 % 1.4 % Weighted average fair value of options granted $ 166.30 $ 169.15 $ 84.92 A summary of the status of options granted under our share-based compensation plans at December 31, 2022, and changes during the year then ended, are presented in the table below: Number of Options (000) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding as of December 31, 2021 1,757 $ 188.47 Granted 158 $ 494.75 Exercised (173) $ 118.96 Forfeited (39) $ 347.18 Expired (2) $ 544.08 Outstanding as of December 31, 2022 1,701 $ 219.90 5.3 $ 352,274 Fully vested as of December 31, 2022 1,202 $ 156.37 4.3 $ 307,580 Fully vested and expected to vest as of December 31, 2022 1,684 $ 217.85 5.2 $ 351,359 The total fair value of options vested were $20.4 million, $17.3 million, and $14.6 million during the years ended December 31, 2022, 2021, and 2020, respectively . Intrinsic value of stock options exercised represents the amount by which the market price of the common stock exceeded the exercise price, before applicable income taxes. The total intrinsic values of stock options exercised were $54.6 million, $147.9 million, and $163.0 million during the years ended December 31, 2022, 2021, and 2020, respectively. Restricted Stock Units Prior to December 4, 2019, the majority of RSUs, including our PBRSUs, granted to employees vest ratably over five years on each anniversary of the date of grant. Employee grants after December 4, 2019, will vest ratably over 4 years. PBRSUs granted to employees vest based on meeting performance goals set on the day of grant. RSUs granted to non-employee directors vest fully on the first anniversary of the date of grant. Vesting as it relates to RSUs and PBRSUs issued is conditional based on continuous service, unless the employee retires under the retirement provision, for grants issued in 2018, 2019, and 2022, for which they will vest for two A summary of the status of RSUs and PBRSUs granted under our share-based compensation plans at December 31, 2022, and changes during the period then ended, are presented in the table below: Number of Units (000) Weighted Average Grant-Date Fair Value Nonvested as of December 31, 2021 165 $ 306.18 Granted 59 Vested (66) Forfeited (10) Nonvested as of December 31, 2022 148 $ 391.55 Expected to vest as of December 31, 2022 141 $ 389.24 The total fair values of RSUs and PBRSUs vested were $32.9 million, $46.1 million, and $27.9 million during the years ended December 31, 2022, 2021, and 2020, respectively. The aggregate intrinsic value of nonvested RSUs and PBRSUs as of December 31, 2022, which is equal to the fair value of IDEXX’s common stock as of December 31, 2022, multiplied by the number of nonvested units as of December 31, 2022, was $60.3 million. Deferred Stock Units Under our Director Plan, non-employee directors may defer a portion of their cash fees in the form of vested DSUs. Prior to 2014, certain members of our management could elect to defer a portion of their cash compensation in the form of vested deferred stock units under our Executive Plan. Each DSU represents the right to receive one unissued share of our common stock. These recipients receive a number of DSUs equal to the amount of cash fees or compensation deferred divided by the closing sale price of the common stock on the date of deferral. Also under the Director Plan, non-employee directors are awarded annual grants of either RSUs or DSUs that vest fully on the first anniversary of the date of grant. Vesting for these annual RSU and DSU grants is conditional based on continuous service. Vested DSUs are distributed as shares of common stock on the distribution date elected by the participant and pursuant to the terms of the Director or Executive Plan, as applicable. There were approximately 58,000 and 90,000 vested DSUs outstanding under our share-based compensation plans as of December 31, 2022 and 2021, respectively. During 2022, approximately 33,000 DSUs were distributed as shares of common stock. Unvested DSUs as of December 31, 2022 and 2021, were not material. Employee Stock Purchase Rights Employee stock purchase rights are issued under the 1997 Employee Stock Purchase Plan, under which we reserved and may issue up to an aggregate of 4.7 million shares of common stock in periodic offerings. Under this plan, stock is sold to employees at a 15% discount off the closing price of the stock on the last day of each quarter. The dollar value of this discount is equal to the fair value of purchase rights recognized as share-based compensation. We issued approximately 44,600, 29,500, and 39,000 shares of common stock in connection with the Employee Stock Purchase Plan during the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, there were approximately 1.0 million remaining shares available for issuance under the 1997 Employee Stock Purchase Plan. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSESWe are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses for potentially uncollectible receivables. We base our estimates on a detailed analysis of specific customer situations and a percentage of our accounts receivable by aging category. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Refer to “Note 2. Accounting Policies” for more information on our adoption of ASU 2016-13 on January 1, 2020, using the modified retrospective transition method. Additional allowances may be required if either the financial condition of our customers was to deteriorate, or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us on their U.S. dollar-denominated purchases. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. Accounts Receivable The allowance for credit losses associated with accounts receivable was $8.3 million and $5.7 million at December 31, 2022 and 2021, respectively. The amount of accounts receivable reflected on the balance sheet is net of this reserve. Based on an aging analysis, at December 31, 2022, approximately 86% of our accounts receivable had not yet reached the invoice due date and approximately 14% was considered past due, of which approximately 2.0% was greater than 60 days past due. At December 31, 2021, approximately 90% of our accounts receivable had not yet reached the invoice due date and approximately 10% was considered past due, of which approximately 1.8% was greater than 60 days past due. Write-offs and recoveries related to credit losses during the years ended December 31, 2022, 2021, and 2020 were not material. Contract assets and lease receivables The allowance for credit losses associated with contract assets and lease receivables was $5.5 million and $4.4 million at December 31, 2022 and 2021, respectively. The assets reflected on the balance sheet are net of these reserves. Historically, we have experienced low credit loss rates on our customer commitment programs and lease receivables. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Write-offs and recoveries related to credit losses during the years ended December 31, 2022, 2021, and 2020 were not material. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. Unpaid inventory reflected within accounts payable in our consolidated balance sheets was $59.4 million, $64.4 million, and $45.6 million at December 31, 2022, 2021, and 2020, respectively. Instrument inventory transferred to property and equipment related to rental and operating-type reagent rental programs was $17.4 million, $11.6 million, $9.6 million during the years ended December 31, 2022, 2021, and 2020, respectively. The components of inventories are as follows: (in thousands) December 31, 2022 December 31, 2021 Raw materials $ 92,796 $ 60,427 Work-in-process 28,041 26,397 Finished goods 246,986 182,206 Inventories $ 367,823 $ 269,030 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within 1 year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and equipment in the normal course of business. We determine the expected term of any executed agreements using the non-cancelable lease term plus any renewal options by which the failure to renew imposes a penalty in such amount that renewal is reasonably assured. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense. Rent escalations are considered in the calculation of minimum lease payments in our capital lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index and payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based on the estimated standalone prices. We determine if an arrangement is a lease at its inception. Operating leases are included in operating lease right-of-use assets, accrued liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Our financing leases are not material to the financial statements. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an explicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease right-of-use assets also include any rent prepayments, lease incentives upon receipt, and straight-line rent expense impacts, which represent the differences between our operating lease liabilities and right-of-use assets. Maturities of operating lease liabilities are as follows: (in thousands) December 31, 2022 2023 $ 24,559 2024 22,178 2025 17,879 2026 15,207 2027 12,157 Thereafter 50,677 Total lease payments 142,657 Less imputed interest (20,993) Total lease liability (current and long-term) $ 121,664 Total minimum future lease payments of approximately $0.6 million for leases that have not commenced as of December 31, 2022, are not included in the consolidated financial statements, as we do not yet control the underlying assets. These leases are expected to commence during 2023 through 2024 with lease terms of approximately 3.2 years to 7.7 years. December 31, 2022 December 31, 2021 Weighted average remaining lease term - operating leases 9.7 years 9.4 years Weighted average discount rate - operating leases 3.5 % 2.5 % Expenses incurred related to operating leases, excluding variable and short-term leases, were approximately $26.8 million and $23.0 million during the years ended December 31, 2022 and 2021, respectively. Total expenses incurred related to operating leases, including variable rent and short-term leases, were approximately $28.7 million and $25.5 million for the years ended December 31, 2022 and 2021, respectively. Supplemental cash flow information for leases is as follows: For the Years Ended (in thousands) 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,973 $ 24,214 Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations $ 36,817 $ 37,572 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation are relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We evaluate our property and equipment for impairment periodically or as changes in circumstances or the occurrence of events suggest the remaining value is not recoverable from future cash flows. If the carrying value of our property and equipment is impaired, an impairment charge is recorded for the amount by which the carrying value of the property and equipment exceeds its fair value. We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2022 and 2021, was not material. We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs relate primarily to the determination of performance requirements, data conversion, and training. Software developed to deliver hosted services to our customers has been designated as internal use. Property and equipment, net, consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Land and improvements $ 22,221 $ 22,642 Buildings and improvements 356,049 329,091 Leasehold improvements 107,251 93,248 Machinery and equipment 404,963 382,753 Office furniture and equipment 71,625 69,090 Computer hardware and software 295,969 276,895 Construction in progress 97,310 62,339 1,355,388 1,236,058 Less accumulated depreciation and amortization 705,914 648,391 Total property and equipment, net $ 649,474 $ 587,667 Below are the amounts of depreciation and amortization of property and equipment, capitalized computer software for internal use, unpaid property and equipment reflected in accounts payable and accrued expenses, and rental and reagent rental program instruments transferred from inventory to property and equipment: For the Years Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization expense $ 96,746 $ 92,376 $ 86,095 Capitalized computer software developed for internal use $ 20,329 $ 14,753 $ 18,472 Unpaid property and equipment, reflected in accounts payable and accrued liabilities $ 18,334 $ 19,326 $ 13,343 Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment (Note 3) $ 17,407 $ 11,628 $ 9,645 We had no material impairments for the years ended December 31, 2022 or 2020. We had impairments of $5.1 million for the year ended December 31, 2021, associated with a write-down of rental assets in certain regions. |
Other Current and Long-Term Ass
Other Current and Long-Term Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Other Current and Long-Term Assets | OTHER CURRENT AND LONG-TERM ASSETS Other current assets consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Customer acquisition costs $ 50,776 $ 48,942 Taxes receivable 48,430 19,464 Contract assets, net (1) 41,854 37,772 Prepaid expenses 41,742 41,997 Cross currency swap contracts 8,135 — Deferred sales commissions 6,472 6,475 Foreign currency exchange contracts 5,185 6,512 Other 17,895 12,661 Other current assets $ 220,489 $ 173,823 (1) Contract assets, net, are net of allowances for credit loss. Refer to “Note 6. Credit Losses.” Other long-term assets consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Contract assets, net (1) $ 148,971 $ 122,160 Customer acquisition costs 107,205 109,392 Deferred income taxes 55,215 24,784 Equity investments 30,250 5,250 Investment in long-term product supply arrangements 25,250 13,348 Deferred sales commissions 12,718 13,019 Taxes receivable 717 1,806 Other 37,403 40,641 Other long-term assets $ 417,729 $ 330,400 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When significant, we typically utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be separately identified and recognized. Our business combinations regularly include contingent consideration arrangements that require additional consideration to be paid based on the achievement of established objectives, most commonly related to customer retention or revenue growth of the customer base during the post-combination period. We assess contingent consideration to determine if it should be recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value recognized in earnings if changes in estimates are made after the measurement period. During the fourth quarter of 2021, we increased the fair value of the contingent payment to ezyVet by $2.0 million. Changes in the fair value of contingent consideration and differences arising upon settlement were not material during the years ended December 31, 2021 and 2020. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50%. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would assess the fair value of all of our reporting units and compare the fair value of the reporting unit to its carrying value to determine if the carrying value exceeds its fair value, and if a goodwill impairment loss should be recognized. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to assessing the fair value of all of our reporting units and compare the fair value of the reporting unit to carrying value to determine if any impairment exists. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. In the fourth quarter of 2022, we performed a qualitative assessment of goodwill impairment and concluded that it is not more likely than not that the fair value of any of our reporting units is less than its carrying amount, including goodwill. If a reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to the fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds the fair value. Any excess of the carrying value of the goodwill above its fair value would be recognized as an impairment loss. No goodwill impairments were identified during the years ended December 31, 2022, 2021, or 2020, and no accumulated impairment losses are recorded. We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets, other than goodwill, based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The asset group is the lowest level for which identifiable cash flows associated with the intangible asset are largely independent. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of the asset group exceeds the related estimated undiscounted future cash flows, an impairment loss to adjust the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset and apply a risk-adjusted discount rate. We had no impairments of our intangible assets during the years ended December 31, 2022 and 2020. The amount of impairment for the year ended December 31, 2021 was immaterial. The changes in the carrying amount of goodwill for the years ended December 31, 2022, 2021, and 2020, were as follows: (in thousands) CAG Water LPD Other Consolidated Total Balance as of December 31, 2019 $ 207,350 $ 11,611 $ 14,232 $ 6,531 $ 239,724 Business combinations 220 — — — 220 Acquisition adjustment (1,900) — — — (1,900) Impact of changes in foreign currency exchange rates 4,724 412 167 — 5,303 Balance as of December 31, 2020 $ 210,394 $ 12,023 $ 14,399 $ 6,531 $ 243,347 Business combinations 120,346 — — — 120,346 Impact of changes in foreign currency exchange rates (3,569) (84) (695) — (4,348) Balance as of December 31, 2021 $ 327,171 $ 11,939 $ 13,704 $ 6,531 $ 359,345 Business combinations 1,641 6,857 — — 8,498 Impact of changes in foreign currency exchange rates (5,330) (897) 179 — (6,048) Balance as of December 31, 2022 $ 323,482 $ 17,899 $ 13,883 $ 6,531 $ 361,795 Refer to “Note 4. Acquisitions, Asset Purchases and Investments” for information regarding goodwill and other intangible assets recognized in connection with the acquisition of businesses and other assets during the years ended December 31, 2022, 2021, and 2020. We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years Intangible assets other than goodwill consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer-related intangible assets (1) $ 104,111 $ 30,952 $ 73,159 $ 121,936 $ 38,349 $ 83,587 Product rights (2) 30,176 8,039 22,137 17,350 5,332 12,018 Noncompete agreements 4,432 2,056 2,376 4,257 827 3,430 $ 138,719 $ 41,047 $ 97,672 $ 143,543 $ 44,508 $ 99,035 The above table excludes fully amortized intangible assets for the periods presented. (1) Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. (2) Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. Amortization expense of intangible assets other than goodwill was $15.0 million, $12.1 million, and $9.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. At December 31, 2022, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter: (in thousands) Amortization Expense 2023 $ 13,841 2024 12,707 2025 12,029 2026 11,767 2027 10,426 Thereafter 36,902 $ 97,672 |
Accrued Liabilities and Other L
Accrued Liabilities and Other Long Term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Other Long Term Liabilities | ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES Accrued liabilities consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Accrued expenses $ 149,446 $ 133,978 Accrued employee compensation and related expenses 142,994 182,926 Accrued customer incentives and refund obligations 72,250 79,469 Accrued taxes 48,547 42,605 Current lease liabilities 20,425 19,931 Accrued liabilities $ 433,662 $ 458,909 Other long-term liabilities consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Accrued taxes $ 49,142 $ 56,466 Other accrued long-term expenses 18,445 14,475 Other long-term liabilities $ 67,587 $ 70,941 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Debt | DEBT Credit Facility On October 20, 2022, we, along with IDEXX Distribution, Inc., IDEXX Operations, Inc., OPTI Medical Systems, Inc., IDEXX Laboratories Canada Corporation, IDEXX B.V., IDEXX Laboratories B.V., and IDEXX Laboratories GmbH, each a wholly-owned subsidiary (whether directly or indirectly held) (collectively, the “Borrowers”), together with the lenders party to that certain Existing Credit Agreement (as defined below), JPMorgan Chase Bank, N.A., as administrative agent (“Agent”), and the other parties thereto, entered into Amendment No. 1 (the “Amendment”), to that certain fourth amended and restated credit agreement, dated as of December 9, 2021, relating to a five-year unsecured revolving credit facility in the principal amount of $1.0 billion (the “Existing Credit Agreement,” and as amended by the Amendment, the “Credit Agreement”), among the Borrowers, the lenders, the Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Toronto agent, and the other parties thereto. The Amendment amends the Existing Credit Agreement to (i) provide for a borrowing by us effective October 20, 2022, of an incremental term loan in an aggregate principal amount of $250 million, (ii) convert all existing borrowings, which have interest rates determined by reference to a LIBOR-based interest rate, to borrowings determined by reference to a SOFR-based interest rate, (iii) provide for an option by us to obtain incremental borrowings under the Credit Agreement of term loans and/or revolving credit commitments of up to an aggregate principal amount of $250 million, which would represent an aggregate maximum of up to $1.5 billion, subject to the Borrowers obtaining commitments from existing or new lenders and satisfying other conditions specified in the Credit Agreement, and (iv) add certain implementing mechanics relating to the foregoing. On October 20, 2022, pursuant to the terms of the Credit Agreement, the term lenders thereunder provided us, as borrower, an incremental term loan in an aggregate principal amount of $250 million (the “Term Loan”). The Term Loan matures on October 20, 2025. The net proceeds of the Term Loan were used to repay previously incurred revolver borrowings under the Existing Credit Agreement. The Term Loan is subject to the same affirmative and negative covenants and events of default as the borrowings previously incurred pursuant to the Existing Credit Agreement. The applicable interest rate for the Term Loan is consistent with our line of credit, and is calculated at a per annum rate equal to either (at our option) (1) a prime rate plus a margin ranging from 0.0% to 0.375% based on our consolidated leverage ratio, (2) an adjusted term SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio, or (3) an adjusted daily simple SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio. Issuance costs for the incremental Term Loan were immaterial. Although the revolving line of credit does not mature until December 9, 2026, and the Term Loan does not mature until October 20, 2025, all individual borrowings under the terms of the Credit Facility with an interest rate based on the prevailing Prime or SOFR rate (as selected by the Borrower) have a stated term between 1 and 180 days. At the end of each term, the obligation is either repaid or rolled over into a new borrowing or replaced by a borrowing based on a specific benchmark rate (where interest is then paid monthly). The Credit Facility contains a subjective material adverse event notification clause, which allows the debt holders to call the loans under the Credit Facility if we fail to provide prompt written notice to the syndicate of such an event. Based on the stated terms and the existence of the subjective material adverse event clause, this Credit Facility is reflected in the current liabilities section of our consolidated balance sheets. At December 31, 2022, we had $329 million outstanding on our line of credit and a $250 million Term Loan, for a total of $579 million outstanding borrowings under our Credit Facility, with a weighted average effective interest rate of 5.1%. Our weighted average borrowing rate for the year ended December 31, 2022, was 3.1%. At December 31, 2021, we had $73.5 million outstanding borrowings under our Credit Facility. The funds available under the Credit Facility reflect a further reduction due to the issuance of letters of credit, which were primarily issued in connection with our workers’ compensation policy, for $1.5 million in the year ended December 31, 2022, and $1.4 million in the year ended December 31, 2021. The obligations under the Credit Facility may be accelerated upon the occurrence of an event of default under the Credit Facility, which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness, cross-acceleration to specified indebtedness, and a change of control default. The Credit Facility contains affirmative, negative, and financial covenants customary for financings of this type. The negative covenants include restrictions on liens, indebtedness of subsidiaries of the Company, fundamental changes, investments, transactions with affiliates, and certain restrictive agreements. The sole financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization, and share-based compensation defined as the consolidated leverage ratio under the terms of the Credit Facility, not to exceed 3.5-to-1. At December 31, 2022, we were in compliance with the covenants of the Credit Facility. Senior Notes The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the “Senior Notes”) as of December 31, 2022: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement The following narrative represents our Senior Note activity: NY Life 2013 and 2014 Note Agreements, Including Amendments In December 2013, we issued and sold through a private placement an aggregate principal amount of $150 million of unsecured senior notes consisting of $75 million of 3.94% Series A Senior Notes due December 11, 2023 (the “2023 Series A Notes”) and $75 million of 4.04% Series B Senior Notes due December 11, 2025 (the “2025 Series B Notes”) under a Note Purchase Agreement among the Company, New York Life Insurance Company, and the accredited institutional purchasers named therein (as amended on April 10, 2020, the “NY Life 2013 Note Agreement”). In September 2014, we issued and sold through a private placement an aggregate principal amount of $75 million of unsecured 3.72% senior notes due September 4, 2026 (the “2026 Senior Notes”) under a Note Purchase Agreement dated as of July 22, 2014, among the Company, New York Life Insurance Company, and the accredited institutional purchasers named therein (as amended April 10, 2020, the “NY Life 2014 Note Agreement”). On April 10, 2020, we amended the NY Life 2013 Note Agreement and the NY Life 2014 Note Agreement by entering into two Amendments to Note Purchase Agreement with New York Life Insurance Company and the other parties thereto, which modified several defined terms, schedules and covenant baskets in the NY Life 2013 Agreement and the NY Life 2014 Note Agreement to create additional operating flexibility, and in particular to align such provisions with similar modifications we made substantially concurrently in our other debt facilities. Prudential 2015 Amended Agreement, Including Amendments In July 2014, we issued and sold through a private placement an aggregate principal amount of $125 million of unsecured senior notes consisting of $50 million of 3.32% Series A Senior Notes due July 21, 2021 (the “2021 Series A Notes”) and $75 million of 3.76% Series B Senior Notes due July 21, 2024 (the “2024 Series B Notes”) under a Note Purchase and Private Shelf Agreement among the Company, Prudential Investment Management, Inc. (“Prudential”), and the accredited institutional purchasers named therein (the “Prudential 2014 Note Agreement”). The $50 million 3.32% Series A Senior Note was repaid in full on the July 21, 2021 due date. In June 2015, we entered into an Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement (the “Original Prudential 2015 Amended Agreement”), among the Company, Prudential, and the accredited institutional purchasers named therein, which amends and restates the Prudential 2014 Note Agreement. Pursuant to the Original Prudential 2015 Amended Agreement, we issued and sold through an aggregated private placement an aggregate principal amount of €88.9 million of unsecured 1.785% Series C Senior Notes due June 18, 2025 (the “2025 Series C Notes”). On May 9, 2019, we entered into the Amendment to Note Purchase and Private Shelf Agreement (the “Prudential First Amendment”) with Prudential and the other parties thereto, which amended certain reporting provisions in the Original Prudential 2015 Amended Agreement. On April 10, 2020, we entered into the Second Amendment to the Prudential 2015 Amended Agreement (the “Prudential Second Amendment”), in order to (i) increase the facility size to $425 million, (ii) extend the facility issuance period to April 10, 2023, (iii) make various implementing and administrative changes in order to facilitate a $75 million notes issuance on April 14, 2020, (iv) allow the amount available to be issued under the facility to equal $425 million less the amount of notes outstanding from time to time during the issuance period, and (v) modify several defined terms, schedules and covenant baskets in the Original Prudential 2015 Amended Agreement, as amended by the Prudential First Amendment, to create additional operating flexibility, and in particular to align such provisions with similar modifications we made substantially concurrently in our other debt facilities. We refer to the Original Prudential 2015 Agreement, as amended by the Prudential First Amendment and the Prudential Second Amendment, as the “Prudential 2015 Amended Agreement.” On April 14, 2020, we issued and sold to Prudential and other purchasers $75 million of our unsecured senior notes (the “Prudential 2030 Series D Notes”) pursuant to the Prudential Second Amendment. The entire outstanding balance of the Prudential 2030 Series D Notes is due and payable on April 14, 2030, and the Prudential 2030 Series D Notes bear interest at the rate of 2.50% per annum. We used the proceeds received from the Prudential 2030 Series D Notes for general corporate purposes. MetLife 2014 Note Agreement, Including Amendments We entered into a Multicurrency Note Purchase and Private Shelf Agreement, dated as of December 19, 2014 (the “Original MetLife 2014 Note Agreement”), among the Company, Metropolitan Life Insurance Company (“MetLife”), and the accredited institutional purchasers named therein pursuant to which we agreed to issue and sell an aggregate principal amount of $150 million of unsecured senior notes consisting of $75 million of our 3.25% Series A Senior Notes having a seven-year term (the “2022 Series A Notes”), and $75 million of our 3.72% Series B Senior Notes having a twelve-year term (“2027 Series B Notes”). The issuance, sale and purchase of these notes occurred in February 2015. The aggregate principal amount of our 2022 Series A Notes for $75 million was paid on February 12, 2022. On March 14, 2019, we amended the Original MetLife 2014 Note Agreement. Pursuant to the Original MetLife 2014 Note Agreement, as so amended, we issued and sold through a private placement an aggregate principal amount of $100 million of unsecured senior notes at a 4.19% per annum rate, due March 14, 2029 (the “2029 Series C Notes”). On March 23, 2020, we entered into the Second Amendment to the Original MetLife 2014 Note Agreement (the “MetLife Second Amendment”), in order to (i) increase the facility size from $150 million to $300 million, (ii) extend the facility issuance period to December 20, 2022, (iii) make various implementing and administrative changes in order to facilitate a $125 million notes issuance on April 2, 2020, and (iv) allow the amount available to be issued under the facility to equal $300 million, less the amounts outstanding on 2029 Series C Notes and MetLife 2030 Series D Notes. On April 2, 2020, we issued and sold to MetLife and other purchasers $125 million of our unsecured senior notes (the “MetLife 2030 Series D Notes”) pursuant to the MetLife Second Amendment. The entire outstanding principal balance of the MetLife 2030 Series D Notes is due and payable on April 2, 2030, and the MetLife 2030 Series D Notes bear interest at the rate of 2.50% per annum. We used the proceeds received from the MetLife 2030 Series D Notes for general corporate purposes. We refer to the Original MetLife 2014 Agreement, as so amended, as the “MetLife 2014 Agreement,” and together with the NY Life 2013 Note Agreement, NY Life 2014 Note Agreement, and Prudential 2015 Amended Note Agreement, collectively, as the “Senior Note Agreements.” Senior Note Agreements The Senior Note Agreements contain affirmative, negative, and financial covenants customary for agreements of this type. The negative covenants include restrictions on liens, indebtedness of our subsidiaries, priority indebtedness, fundamental changes, investments, transactions with affiliates, certain restrictive agreements, and violations of laws and regulations. The sole financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization, and share-based compensation, as defined in the Senior Note Agreements, not to exceed 3.5-to-1. At December 31, 2022, we were in compliance with the covenants of the Senior Note Agreements. Should we elect to prepay the Senior Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Senior Note Agreements. Additionally, in the event of a change in control of the Company or upon the disposition of certain assets of the Company the proceeds of which are not reinvested (as defined in the Senior Note Agreements), we may be required to prepay all or a portion of the Senior Notes. The obligations under the Senior Notes may be accelerated upon the occurrence of an event of default under the applicable Senior Note Agreement, each of which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness, and cross-acceleration to specified indebtedness. We used the net proceeds from the issuances and sale of the Senior Notes for general corporate purposes. Annual principal payments on long-term debt at December 31, 2022, are as follows: (in thousands) Years Ending December 31, Amount 2023 $ 75,000 2024 75,000 2025 169,775 2026 75,000 2027 75,000 Thereafter 300,000 $ 769,775 Total interest paid on all debt (including our Credit Facility) for the years ended December 31, 2022, 2021, and 2020, was $39.5 million, $30.5 million, and $32.4 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for a valuation allowance, we consider future taxable income and ongoing prudent and feasible tax planning strategies. In the event that we determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. We classify uncertain tax positions as long-term liabilities. Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. Earnings before income taxes were as follows: (in thousands) For the Years Ended December 31, 2022 2021 2020 Domestic $ 684,661 $ 689,994 $ 483,694 International 175,311 212,660 178,291 $ 859,972 $ 902,654 $ 661,985 The provision (benefit) for income taxes comprised the following: (in thousands) For the Years Ended December 31, 2022 2021 2020 Current Federal $ 150,099 $ 112,811 $ 72,921 State 30,529 19,147 17,346 International 35,138 29,288 26,301 215,766 161,246 116,568 Deferred Federal (31,663) (7,019) (14,126) State (5,735) (503) (2,863) International 2,515 4,086 (19,725) (34,883) (3,436) (36,714) $ 180,883 $ 157,810 $ 79,854 The provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate as follows: For the Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 2.3 2.1 2.4 Taxation on international earnings 0.6 (0.8) (1.0) Foreign derived intangible income (1.7) (1.2) (1.1) Share-based compensation from settlements (1.5) (3.6) (5.9) Research and development credit (1.1) (0.7) (0.8) Impact of Switzerland tax reform — — (3.3) Other, net 1.4 0.7 0.8 Effective tax rate 21.0 % 17.5 % 12.1 % Our effective income tax rate was 21.0% for the year ended December 31, 2022, and 17.5% for the year ended December 31, 2021. Our effective income tax rate for the year ended December 31, 2022, was higher primarily due to decreases in tax benefits related to share-based compensation and higher taxes on international income. Income taxes paid, net of refunds received, for the periods ended December 31, 2022, 2021, and 2020, were $239.8 million, $161.7 million, and $110.7 million, respectively. Prior to January 1, 2022, we received benefits from a tax ruling in the Netherlands that documented our mutual understanding of how prior tax laws applied to our circumstances. Primarily as a result of this tax ruling, our net income was higher by $21.4 million and $14.2 million for the years ended December 31, 2021 and 2020, respectively. The benefits from these tax rulings are reflected within the overall benefits received from taxation on international earnings during those years in the table above. On December 21, 2021, the Netherlands adopted legislation eliminating the tax benefits related to this tax ruling for tax years beginning after December 31, 2021. The components of the net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets are as follows: (in thousands) December 31, 2022 December 31, 2021 Assets Accrued expenses $ 38,457 $ 48,433 Accounts receivable reserves 2,447 2,131 Deferred revenue 4,671 6,269 Inventory basis differences 9,062 6,553 Property-based differences 20,157 16,132 Intangible asset basis differences 44,196 46,606 Share-based compensation 11,324 10,740 Other 1,273 1,163 Net operating loss carryforwards 8,956 8,570 Tax credit carryforwards 13,370 13,483 Unrealized losses on foreign currency exchange contracts and investments 227 1,755 Research and development expenditure differences 29,997 — Total assets 184,137 161,835 Valuation allowance (39,726) (39,280) Total assets, net of valuation allowance 144,411 122,555 Liabilities Customer acquisition costs (37,223) (37,265) Property-based differences (44,295) (42,363) Intangible asset basis differences (2,379) (17,345) Other (8,958) (5,662) Unrealized gains on foreign currency exchange contracts and investments (4,491) (4,071) Total liabilities (97,346) (106,706) Net deferred tax assets $ 47,065 $ 15,849 As of December 31, 2022, we recorded valuation allowances against certain deferred tax assets related to temporary differences, including intangible asset basis differences and net operating loss (“NOL”) and tax credit carryforwards, as it is more likely than not that they will not be realized or utilized within the carryforward period. The following table summarizes the changes in valuation allowance for deferred tax assets: (in thousands) For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 39,280 $ 40,262 $ 9,454 Charges to costs and expense 2,200 1,464 31,076 Write-off/cash payments (1,537) (1,182) (34) Foreign currency translation (217) (1,264) (234) Balance at the end of the year $ 39,726 $ 39,280 $ 40,262 As of December 31, 2022, we have NOLs in certain state and international jurisdictions of approximately $34.1 million available to offset future taxable income. Most of these NOLs will expire at various dates between 2023 and 2029 and the remainder have indefinite lives. The following table summarizes the changes in unrecognized tax positions: (in thousands) For the Years Ended December 31, 2022 2021 2020 Total amounts of unrecognized tax benefits, beginning of period $ 21,789 $ 22,484 $ 26,841 Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period 342 443 (1,755) Gross increases in unrecognized tax positions as a result of tax positions taken in the current period 3,197 2,414 4,199 Decreases in unrecognized tax positions related to settlements with taxing authorities (1,544) (537) (6,446) Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations (1,237) (3,015) (355) Total amounts of unrecognized tax benefits, end of period $ 22,547 $ 21,789 $ 22,484 Of the total unrecognized tax benefits at December 31, 2022 and 2021, $20.9 million and $22.2 million, respectively, comprise unrecognized tax positions that would, if recognized, affect our effective tax rate. During the years ended December 31, 2022, 2021, and 2020, we recorded interest expense and penalties of $1.3 million, $1.1 million, and $1.3 million, respectively, as income tax expense in our consolidated statement of income. At December 31, 2022, 2021, and 2020, we had $4.2 million, $3.8 million, and $3.6 million, respectively, of estimated interest expense and penalties accrued in our consolidated balance sheets. In the ordinary course of our business, our income tax filings are regularly under audit by tax authorities. While we believe we have appropriately provided for all uncertain tax positions, amounts asserted by taxing authorities could be greater or less than our accrued position. Accordingly, additional provisions on income tax matters, or reductions of previously accrued provisions, could be recorded in the future as we revise our estimates due to changing facts and circumstances or the underlying matters are settled or otherwise resolved. We are currently under tax examinations in various jurisdictions. We anticipate that these examinations will be concluded within the next two years. With few exceptions, we are no longer subject to income tax examinations in any jurisdiction in which we conduct significant taxable activities for years before 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to our stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the total unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed, and issuance is not contingent. Refer to “Note 5. Share-Based Compensation” for additional information regarding deferred stock units. The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share: (in thousands) For the Years Ended December 31, 2022 2021 2020 Shares outstanding for basic earnings per share: 83,623 85,200 85,342 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 83,623 85,200 85,342 Dilutive effect of share-based payment awards 977 1,372 1,380 84,600 86,572 86,722 Certain awards and options to acquire shares have been excluded from the calculation of shares outstanding for diluted earnings per share because they were anti-dilutive. The following table presents information concerning those anti-dilutive awards and options: (in thousands) For the Years Ended December 31, 2022 2021 2020 Weighted average number of shares underlying anti-dilutive options 263 121 206 Weighted average number of shares underlying anti-dilutive awards 46 — — |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments Refer to “Note 8. Leases” for more information regarding our lease commitments. In the ordinary course of business we enter into purchase obligations that include agreements and purchase orders to purchase goods or services that are contractually enforceable and that specify all significant terms, including fixed or minimum quantities, pricing, and approximate timing of purchases. As of December 31, 2022, we had approximately $232.4 million in purchase obligations due in 2023. Our purchase obligations beyond 2023 are approximately $50.4 million. The expected timing of payments of our purchase obligations is estimated based on current information. Timing of payments and actual amounts paid may be different, depending on the time of receipt of goods or services, or changes to agreed-upon amounts for some obligations. Contingencies We are subject to claims that may arise in the ordinary course of business, including with respect to actual and threatened litigation and other matters. We accrue for loss contingencies when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. However, the results of legal actions cannot be predicted with certainty, and therefore our actual losses with respect to these contingencies could exceed our accruals. Except for the litigation matter described below, at December 31, 2022, our accruals with respect to actual and threatened litigation were not material. We are a defendant in an ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement. The plaintiff has asserted a claim of approximately $50 million inclusive of interest through June 30, 2020, alleging that the incorrect royalty provision was applied to certain licensed products and services throughout the agreement term and that royalties were also due on non-licensed diagnostic services that were provided concurrently with licensed services. The trial court previously ruled in favor of the plaintiff in this matter. The appellate court reversed the trial court’s decision, and the plaintiff has petitioned the state supreme court for review. While we believe the claim is without merit and continue to vigorously defend ourselves against the plaintiff’s allegations, litigation is inherently unpredictable and there can be no assurance that we will prevail in this matter. During the third quarter of 2020, we established an accrual of $27.5 million related to this ongoing matter, which represents the amount of the contingent loss that we have determined to be probable and estimable. We have not made any adjustments to this accrual since it was established. The actual cost of resolving this matter may be higher or lower than the amount we have accrued. From time to time, we have received notices alleging that our products infringe third-party proprietary rights, although we are not aware of any pending litigation with respect to such claims. Patent litigation frequently is complex and expensive, and the outcome of patent litigation can be difficult to predict. There can be no assurance that we will prevail in any infringement proceedings that may be commenced against us. If we lose any such litigation, we may be stopped from selling certain products and/or we may be required to pay damages as a result of the litigation. Guarantees We enter into agreements with third parties in the ordinary course of business under which we are obligated to indemnify such third parties for and against various risks and losses. The precise terms of such indemnities vary with the nature of the agreement. In many cases, we limit the maximum amount of our indemnification obligations, but in some cases, those obligations may be theoretically unlimited. We have not incurred material expenses in discharging any of these indemnification obligations and, based on our analysis of the nature of the risks involved, we believe that the fair value of potential indemnification under these agreements is minimal. Accordingly, we have recorded no liabilities for these obligations at December 31, 2022 and 2021. When acquiring a business, we sometimes assume liability for certain events or occurrences that took place prior to the date of acquisition. As of December 31, 2022 and 2021, we do not have any material pre-acquisition liabilities recorded. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate primarily through three business segments: Companion Animal Group (“CAG”), Water quality products (“Water”), and Livestock, Poultry and Dairy (“LPD”). CAG provides products and services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides innovative testing solutions for the detection and quantification of various microbiological parameters in water. LPD provides diagnostic tests, services, and related instrumentation that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. Our Other operating segment combines and presents our human medical diagnostic business (“OPTI Medical”) with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. OPTI Medical develops, manufactures, and distributes human medical diagnostic products and provides human medical diagnostic services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include: CAG, Water, LPD, and Other. Assets are not allocated to segments for internal reporting purposes. Intersegment revenues, which are not included in the table below, were not material for the years ended December 31, 2022, 2021, and 2020. The following is a summary of segment performance: (in thousands) For the Years Ended December 31, CAG Water LPD Other Consolidated Total 2022 Revenue $ 3,058,793 $ 155,720 $ 122,607 $ 30,204 $ 3,367,324 Income from operations $ 800,949 $ 72,519 $ 19,809 $ 5,488 $ 898,765 Interest expense, net (38,793) Income before provision for income taxes 859,972 Provision for income taxes 180,883 Net income 679,089 Less: Net income attributable to noncontrolling interest — Net income attributable to IDEXX Laboratories, Inc. stockholders $ 679,089 Depreciation and amortization $ 101,254 $ 3,020 $ 3,797 $ 3,829 $ 111,900 2021 Revenue $ 2,889,960 $ 146,505 $ 135,887 $ 43,008 $ 3,215,360 Income from operations $ 824,022 $ 65,444 $ 28,636 $ 13,926 $ 932,028 Interest expense, net (29,374) Income before provision for income taxes 902,654 Provision for income taxes 157,810 Net income 744,844 Less: Net income attributable to noncontrolling interest (1) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 744,845 Depreciation and amortization $ 94,202 $ 2,709 $ 3,908 $ 3,777 $ 104,596 2020 Revenue $ 2,385,765 $ 128,625 $ 145,845 $ 46,420 $ 2,706,655 Income from operations $ 574,887 $ 58,867 $ 40,008 $ 20,762 $ 694,524 Interest expense, net (32,539) Income before provision for income taxes 661,985 Provision for income taxes 79,854 Net income 582,131 Less: Net income attributable to noncontrolling interest 355 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 581,776 Depreciation and amortization $ 84,697 $ 2,630 $ 4,070 $ 4,601 $ 95,998 Refer to “Note 3. Revenue Recognition” for a summary of disaggregated revenue by reportable segment and by major product and service category for the years ended December 31, 2022, 2021, and 2020. Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: (in thousands) December 31, 2022 December 31, 2021 Americas United States $ 486,690 $ 436,003 Brazil 25,949 17,043 Canada 7,407 7,003 520,046 460,049 Europe, the Middle East and Africa Germany 55,726 60,451 United Kingdom 10,710 9,828 Netherlands 11,975 19,405 France 1,507 1,884 Switzerland 13,445 3,545 Other 3,054 3,821 96,417 98,934 Asia Pacific Region Japan 5,111 5,845 Australia 20,243 14,584 Other 7,657 8,255 33,011 28,684 Total $ 649,474 $ 587,667 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2, or transfers in or out of Level 3, of the fair value hierarchy during the years ended December 31, 2022 and 2021. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative instruments using an income approach, based on prevailing market forward rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. The amounts outstanding under our unsecured revolving credit facility (“Credit Facility” or “line of credit”) and senior notes (“long-term debt”) are measured at carrying value in our accompanying consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our Credit Facility and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our Credit Facility and long-term debt are valued using Level 2 inputs. The estimated fair value of our Credit Facility approximates its carrying value. At December 31, 2022, the estimated fair value and carrying value of our long-term debt were $725.6 million and $769.8 million, respectively. At December 31, 2021, the estimated fair value and carrying value of our long-term debt were $916.3 million and $850.7 million, respectively. The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy: (in thousands) As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2022 Assets Equity mutual funds (2) $ 385 $ — $ — $ 385 Cross currency swaps (3) $ — $ 9,262 $ — $ 9,262 Foreign currency exchange contracts (3) $ — $ 5,185 $ — $ 5,185 Liabilities Foreign currency exchange contracts (3) $ — $ 4,572 $ — $ 4,572 Deferred compensation (4) $ 385 $ — $ — $ 385 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (in thousands) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2021 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 826 $ — $ — $ 826 Cross currency swaps (3) $ — $ 4,256 $ — $ 4,256 Foreign currency exchange contracts (3) $ — $ 6,512 $ — $ 6,512 Liabilities Foreign currency exchange contracts (3) $ — $ 601 $ — $ 601 Deferred compensation (4) $ 826 $ — $ — $ 826 Contingent payments - acquisitions $ — $ — $ 7,230 $ 7,230 (1) Money market funds with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2022, and December 31, 2021, consisted of demand deposits. (2) Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. Refer to footnote (4) below for a discussion of the related deferred compensation liability. (3) Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above. The estimated fair values of certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate carrying value due to their short maturity. Contingent Consideration We have classified our liabilities for contingent consideration related to acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which includes the achievements of future revenues. The contingent consideration is included within other short-term liabilities. We record changes in the estimated fair value of contingent consideration in the consolidated statements of income. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the year ended December 31, 2022, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2021 $ 7,230 Payment of contingent consideration (7,110) Change in estimated fair value — Contingent consideration as of December 31, 2022 $ 120 During the second quarter of 2022, we determined that the $7.0 million contingent consideration associated with our ezyVet acquisition in the second quarter of 2021 would be earned based on revenue achievements obtained. This amount was paid out during the second and third quarters of 2022. During the third quarter of 2022, we also issued a contingent payment related to a separate acquisition for approximately $0.1 million. |
Hedging Instruments
Hedging Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Instruments | HEDGING INSTRUMENTS Disclosure within this note is presented to provide transparency about how and why we use derivative and non-derivative instruments (collectively “hedging instruments”), how the instruments and related hedged items are accounted for, and how the instruments and related hedged items affect our financial position, results of operations, and cash flows. We are exposed to certain risks related to our ongoing business operations. The primary risk that we currently manage by using hedging instruments is foreign currency exchange risk. We may also enter into interest rate swaps to minimize the impact of interest rate fluctuations associated with borrowings under our variable-rate Credit Facility. Our subsidiaries enter into foreign currency exchange contracts to manage the exchange risk associated with their forecasted intercompany inventory purchases and sales for the next year. From time to time, we may also enter into other foreign currency exchange contracts, cross currency swaps, or foreign-denominated debt issuances to minimize the impact of foreign currency fluctuations associated with specific balance sheet exposures, including net investments in certain foreign subsidiaries. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in euro, British pound, Japanese yen, Canadian dollar, and Australian dollar. We also utilize natural hedges to mitigate our transaction and commitment exposures. Our corporate policy prescribes the range of allowable hedging activity. We enter into foreign currency exchange contracts with well-capitalized multinational financial institutions, and we do not hold or engage in transactions involving derivative instruments for purposes other than risk management. Our accounting policies for these contracts are based on our designation of such instruments as hedging transactions. We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. Instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, changes in the fair value of the hedging instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Refer to “Note 21. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on the consolidated statements of income for the years ended December 31, 2022, 2021, and 2020. We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the accompanying consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. Refer to “Note 18. Fair Value Measurements” for additional information regarding the fair value of our derivative instruments and “Note 21. Accumulated Other Comprehensive Income” for additional information regarding the effect of derivative instruments designated as cash flow hedges on the consolidated statements of income. Cash Flow Hedges We have designated our foreign currency exchange contracts as cash flow hedges as these derivative instruments mitigate the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange. Unless noted otherwise, we have also designated our derivative instruments as qualifying for hedge accounting treatment. We did not de-designate any instruments from hedge accounting treatment during the years ended December 31, 2022, 2021, and 2020. Gains and losses related to hedge ineffectiveness recognized in earnings during the years ended December 31, 2022, 2021, and 2020 were not material. At December 31, 2022, the estimated amount of net gains, net of tax, which are expected to be reclassified out of AOCI and into earnings within the next twelve months is $0.8 million if exchange rates do not fluctuate from the levels at December 31, 2022. We target to hedge approximately 75% to 85% of the estimated exposure from intercompany product purchases and sales denominated in the euro, British pound, Canadian dollar, Japanese yen, and Australian dollar. We have additional unhedged foreign currency exposures related to foreign services and emerging markets where it is not practical to hedge. We primarily utilize foreign currency exchange contracts with durations of less than 24 months. Quarterly, we enter into contracts to hedge incremental portions of anticipated foreign currency transactions for the current and following year. As a result, our risk with respect to foreign currency exchange rate fluctuations and the notional value of foreign currency exchange contracts may vary throughout the year. The U.S. dollar is the currency purchased or sold in all of our foreign currency exchange contracts. The notional amount of foreign currency exchange contracts to hedge forecasted intercompany inventory purchases and sales totaled $258.2 million, and $286.7 million at December 31, 2022 and 2021, respectively. The following table presents the effect of cash flow hedge accounting on our consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Years Ended December 31, 2022 2021 2020 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 1,362,986 $ 1,325,928 $ 1,135,615 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 25,733 $ (7,121) $ 829 Net Investment Hedges, Euro-Denominated Notes In June 2015, we issued and sold through a private placement an aggregate principal amount of €88.9 million in euro-denominated 1.785% Series C Senior Notes due June 18, 2025. We have designated these euro-denominated notes as a hedge of our euro net investment in certain foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates in the euro relative to the U.S. dollar. As a result of this designation, gains and losses from the change in translated U.S. dollar value of these euro-denominated notes are recorded in AOCI rather than to earnings. We recorded a gain of $4.5 million, a gain of $6.4 million, and a loss of $7.4 million, net of tax, within AOCI as a result of this net investment hedge for the years ended December 31, 2022, 2021, and 2020, respectively. The related cumulative unrealized gain recorded at December 31, 2022, will not be reclassified in earnings until the complete or substantially complete liquidation of the net investment in the hedged foreign operations or all or a portion of the hedge no longer qualifies for hedge accounting treatment. Refer to “Note 13. Debt” to the consolidated financial statements included in this Annual Report on Form 10-K for further information regarding the issuance of these euro-denominated notes. Net Investment Hedges, Cross Currency Swaps We have entered into several cross currency swap contracts as a hedge of our net investment in foreign operations to offset foreign currency translation gains and losses on the net investment. These cross currency swaps have maturity dates beginning on June 30, 2023, through June 18, 2025. At maturity of the cross currency swap contracts, we will deliver the notional amounts of €90.0 million and will receive approximately $104.5 million from the counterparties on June 30, 2023, and we will deliver the notional amount of €15.0 million and will receive approximately $17.5 million from the counterparties on June 18, 2025. The change in fair value of the cross currency swap contracts are recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. We recorded a gain of $3.8 million, a gain of $5.4 million, and a loss of $5.6 million, net of tax, within AOCI as a result of these net investment hedges, during the years ended December 31, 2022, 2021, and 2020, respectively. We will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swaps. This interest rate component is excluded from the assessment of hedge effectiveness and, thus, is recognized as a reduction to interest expense over the life of the hedge instrument. We recognized approximately $2.8 million and $2.8 million related to the excluded component as a reduction of interest expense for the years ended December 31, 2022 and 2021, respectively. Fair Values of Hedging Instruments Designated as Hedges in Consolidated Balance Sheets The fair values of hedging instruments, their respective classification on the consolidated balance sheets, and amounts subject to offset under master netting arrangements consisted of the following derivative instruments, unless otherwise noted: (in thousands) Hedging Assets December 31, 2022 December 31, 2021 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 5,185 $ 6,512 Cross currency swaps Other current assets 8,135 — Cross currency swaps Other long-term assets 1,127 4,256 Total derivative instruments presented as hedge instruments on the balance sheet 14,447 10,768 Gross amounts subject to master netting arrangements not offset on the balance sheet (3,210) (601) Net amount $ 11,237 $ 10,167 (in thousands) Hedging Liabilities December 31, 2022 December 31, 2021 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 4,572 $ 601 Total derivative instruments presented as cash flow hedges on the balance sheet 4,572 601 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 94,775 100,711 Total hedging instruments presented on the balance sheet 99,347 101,312 Gross amounts subject to master netting arrangements not offset on the balance sheet (3,210) (601) Net amount $ 96,137 $ 100,711 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. Refer to “Note 18. Fair Value Measurements” for information regarding the fair value of our long-term debt. |
Repurchases of Common Stock
Repurchases of Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Repurchases of Common Stock | REPURCHASES OF COMMON STOCK As of December 31, 2022, our Board of Directors has authorized the repurchase of u p to 73.0 million sh ares of our common stock in the open market or in negotiated transactions pursuant to the Company’s share repurchase program. We believe that the repurchase of our common stock is a favorable means of returning value to our stockholders, and we also repurchase to offset the dilutive effect of our share-based compensation programs. Repurchases of our common stock may vary depending upon the level of other investing activities and the share price. As of December 31, 2022, there are approximate ly 3.0 million rem aining shares available for repurchase under this authorization. We primarily acquire shares by repurchases in the open market. However, we also acquire shares that are surrendered by employees in payment for the minimum required statutory withholding taxes due on the vesting of restricted stock units and the settlement of deferred stock units, otherwise referred to herein as employee surrenders. We issue shares of treasury stock upon the vesting of certain restricted stock units and upon the exercise of certain stock options. The number of shares of treasury stock issued during the years ended December 31, 2022, 2021, and 2020, was not material. The following is a summary of our open market common stock repurchases, reported on a trade date basis, and shares acquired through employee surrenders: (in thousands, except per share amounts) For the Years Ended December 31, 2022 2021 2020 Shares repurchased in the open market 1,963 1,283 721 Shares acquired through employee surrenders for statutory tax withholding 21 29 58 Total shares repurchased 1,984 1,312 779 Cost of shares repurchased in the open market $ 810,942 $ 755,545 $ 179,623 Cost of shares for employee surrenders 10,606 15,562 20,603 Total cost of shares $ 821,548 $ 771,107 $ 200,226 Average cost per share - open market repurchases $ 413.12 $ 588.58 $ 249.20 Average cost per share - employee surrenders $ 501.89 $ 548.08 $ 354.98 Average cost per share - total $ 414.06 $ 587.70 $ 257.08 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in AOCI, net of tax, consisted of the following: For the Years Ended December 31, 2022 and 2021 Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax (in thousands) Unrealized (Loss) Gain on Investments, Net of Tax Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Defined Benefit Plans, Net of Tax Cumulative Translation Adjustment Total Balance as of December 31, 2020 $ (272) $ (9,934) $ (5,982) $ (2,159) $ — $ (35,268) $ (53,615) Other comprehensive income (loss) before reclassifications 146 9,139 6,404 5,399 — (26,731) (5,643) Amounts reclassified from accumulated other comprehensive income — 5,774 — — — — 5,774 Balance as of December 31, 2021 (126) 4,979 422 3,240 — (61,999) (53,484) Other comprehensive (loss) income before reclassifications (46) 14,851 4,525 3,817 (3,282) (25,692) (5,827) Amounts reclassified from accumulated other comprehensive income — (18,991) — — 506 — (18,485) Balance as of December 31, 2022 $ (172) $ 839 $ 4,947 $ 7,057 $ (2,776) $ (87,691) $ (77,796) The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI for the Years Ended December 31, 2022 2021 2020 Foreign currency exchange contracts Cost of revenue $ 25,733 $ (7,121) $ 829 Tax (expense) benefit (6,742) 1,347 (158) Gains (losses), net of tax $ 18,991 $ (5,774) $ 671 Defined benefit plans Cost of revenue and operating expenses $ (605) $ — $ — Tax benefit 99 — — Losses, net of tax $ (506) $ — $ — |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Preferred Stock | PREFERRED STOCK |
IDEXX Retirement and Incentive
IDEXX Retirement and Incentive Savings Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
IDEXX Retirement and Incentive Savings Plan | IDEXX RETIREMENT AND INCENTIVE SAVINGS PLAN We have established the IDEXX Retirement and Incentive Savings Plan (the “401(k) Plan”). U.S. employees eligible to participate in the 401(k) Plan may contribute specified percentages of their salaries. We match a portion of these contributions, not to exceed 5% of participants’ eligible compensation. We matched $28.3 million, $25.8 million, and $23.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. In addition, we may make contributions to the 401(k) Plan at the discretion of the Board of Directors. There were no discretionary contributions in 2022, 2021 or 2020. We also have established defined contribution plans for regional employees in Europe and in Canada. With respect to these plans, our contributions over the past three years have not been material. Defined Benefit Pension Obligations Our Swiss defined benefit pension plans “(Swiss Plans”) are government-mandated retirement plans that provide employees with a minimum investment return. We account for our Swiss Plans in accordance with ASC 715-30, “Defined Benefit Plans - Pension.” As of December 31, 2022, our Swiss Plans had an unfunded net pension obligation of $4.0 million, with a fair value of plan assets of $12.5 million. The investments of the plan assets are measured using a mix of Level 1, Level 2, and Level 3 inputs. For the year ended December 31, 2022, we recognized $1.5 million in expense related to the Swiss Plans. The expense was reflected in cost of revenue, sales & marketing expense, general and administrative expense, and research and development expense, based on employee classification. Future benefits expected to be paid as of December 31, 2022, are as follows: (in thousands) December 31, 2022 2023 875 2024 1,075 2025 974 2026 804 2027 1,085 2028 through 2032 5,354 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimates | EstimatesThe preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable and customer contract assets and lease receivables; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, including product returns and customer contracts with multiple performance obligations; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits, money market funds, and short-duration agency bonds and commercial paper as described above. |
Warranty Reserves | Warranty ReservesWe provide a standard twelve-month warranty on all diagnostic instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environments, historical and estimated costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. |
Taxes Remitted to Governmental Authorities by IDEXX on Behalf of Customer | Taxes Remitted to Governmental Authorities by IDEXX on Behalf of CustomerWe calculate, collect from our customers, and remit to governmental authorities, sales, value-added, and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. |
Research and Development Costs | Research and Development CostsResearch and development costs, which consist of employee compensation and benefits, certain licensing agreements, materials, external consulting, and product development costs, are expensed as incurred. We evaluate our research and development costs for capitalization after the technological feasibility has been established for software and products containing software to be sold; however, no costs were capitalized during the years ended December 31, 2022, 2021, and 2020. Software developed to deliver hosted services to our customers has been designated as internal use, and we capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Refer to “Note 9. Property and Equipment, Net” for further information on internal use software. |
Advertising Costs | Advertising CostsAdvertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $5.0 million, $3.3 million, and $1.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Legal Costs | Legal CostsLegal costs are considered period costs and, accordingly, are expensed in the year services are provided. |
Foreign Currency | Foreign Currency The functional currency of six of our foreign subsidiaries is the U.S. dollar. Assets and liabilities of our other foreign subsidiaries, whose functional currency is their local currency, are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”).Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses within our Other segment. |
Comprehensive Income | Comprehensive IncomeWe report all changes in equity, including net income and transactions or other events and circumstances from non-owner sources during the period in which they are recognized. We have chosen to present comprehensive income, which encompasses net income, foreign currency translation adjustments, gains and losses on our net investment hedges, defined benefit plan adjustments, and the difference between the cost and the fair market value of investments in debt and equity securities, and forward currency exchange contracts, in the consolidated statements of comprehensive income. |
Equity and Cost Methods of Accounting for Investments | Equity and Cost Methods of Accounting for Investments Investments where we have the ability to exercise significant influence, but do not control the entity, are accounted for under the equity method of accounting. Significant influence generally exists if we have a 20% to 50% ownership interest in the investee. Equity investments in entities for which we do not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost less impairment, if any, adjusted for changes resulting from qualifying observable price changes for the identical investment of the same issuer should they occur. We evaluate our investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Concentrations of Risk | Concentrations of Risk Financial Instruments . Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, contract assets, lease receivables, and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. To reduce credit risk with respect to accounts receivable, contract assets, and lease receivables, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable, contract assets, and lease receivables credit risk exposure is limited. We maintain allowances for expected credit losses, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with counterparties to our derivative transactions and frequently monitor the creditworthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. Inventory . If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell, as well as certain components, raw materials and consumables used in or with our products, are sole or single-source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. |
New Accounting Pronouncements Adopted and New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Adopted We adopted ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” effective January 1, 2020, using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables and leased equipment. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a non-cash cumulative effect adjustment to retained earnings of $1.8 million, net of $0.6 million of income taxes, on our opening consolidated balance sheet as of January 1, 2020. This adjustment, before the impact of income taxes, was comprised of $2.3 million related to our contract assets and sales-type leases, and $0.2 million related to accounts receivable. Refer to “Note 6. Credit Losses” for more information on our presentation of credit losses. Effective January 1, 2021, we adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around goodwill recognized for tax purposes and the allocation of current and deferred tax expense among legal entities, among other minor changes. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments.” ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if another lease classification (i.e., sales-type or direct financing) would result in recognition of a day-one loss. We elected to adopt this standard as of the third quarter of 2021, on a prospective basis. The adoption of ASU 2021-05 did not have a material impact on our consolidated financial statements. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which adds certain disclosure requirements for a buyer in a supplier finance program. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated roll-forward information. In interim reporting periods, the amount outstanding at the end of the period is required to be disclosed. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose roll-forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted. We do not expect this guidance will have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities.” ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. This standard is effective for fiscal years beginning after December 15, 2022. Adoption of the ASU 2021-08 should be applied prospectively. We do not expect this guidance will have a material impact on our consolidated financial statements. |
Revenue Recognition | Our revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To accurately present the consideration received in exchange for promised products or services, we apply the five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations 5. Recognition of revenue when, or as, we satisfy a performance obligation |
Share-Based Compensation | We provide for various forms of share-based compensation awards to our employees and non-employee directors. Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights, and other stock unit awards. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. For stock options, restricted stock units (“RSUs”), and deferred stock units (“DSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award for stock options. For performance-based restricted stock units (“PBRSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a grade-vesting methodology over the requisite service period. |
Credit Losses | We are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses for potentially uncollectible receivables. We base our estimates on a detailed analysis of specific customer situations and a percentage of our accounts receivable by aging category. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Refer to “Note 2. Accounting Policies” for more information on our adoption of ASU 2016-13 on January 1, 2020, using the modified retrospective transition method. Additional allowances may be required if either the financial condition of our customers was to deteriorate, or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us on their U.S. dollar-denominated purchases. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. |
Leases | The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within 1 year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and equipment in the normal course of business. We determine the expected term of any executed agreements using the non-cancelable lease term plus any renewal options by which the failure to renew imposes a penalty in such amount that renewal is reasonably assured. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense. Rent escalations are considered in the calculation of minimum lease payments in our capital lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index and payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based on the estimated standalone prices. We determine if an arrangement is a lease at its inception. Operating leases are included in operating lease right-of-use assets, accrued liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Our financing leases are not material to the financial statements. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an explicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease right-of-use assets also include any rent prepayments, lease incentives upon receipt, and straight-line rent expense impacts, which represent the differences between our operating lease liabilities and right-of-use assets. |
Property and Equipment | Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation are relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We evaluate our property and equipment for impairment periodically or as changes in circumstances or the occurrence of events suggest the remaining value is not recoverable from future cash flows. If the carrying value of our property and equipment is impaired, an impairment charge is recorded for the amount by which the carrying value of the property and equipment exceeds its fair value. We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2022 and 2021, was not material. We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs relate primarily to the determination of performance requirements, data conversion, and training. Software developed to deliver hosted services to our customers has been designated as internal use. |
Goodwill and Other Intangible Assets | A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When significant, we typically utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be separately identified and recognized. Our business combinations regularly include contingent consideration arrangements that require additional consideration to be paid based on the achievement of established objectives, most commonly related to customer retention or revenue growth of the customer base during the post-combination period. We assess contingent consideration to determine if it should be recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value recognized in earnings if changes in estimates are made after the measurement period. During the fourth quarter of 2021, we increased the fair value of the contingent payment to ezyVet by $2.0 million. Changes in the fair value of contingent consideration and differences arising upon settlement were not material during the years ended December 31, 2021 and 2020. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50%. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would assess the fair value of all of our reporting units and compare the fair value of the reporting unit to its carrying value to determine if the carrying value exceeds its fair value, and if a goodwill impairment loss should be recognized. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to assessing the fair value of all of our reporting units and compare the fair value of the reporting unit to carrying value to determine if any impairment exists. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. In the fourth quarter of 2022, we performed a qualitative assessment of goodwill impairment and concluded that it is not more likely than not that the fair value of any of our reporting units is less than its carrying amount, including goodwill. If a reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to the fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds the fair value. Any excess of the carrying value of the goodwill above its fair value would be recognized as an impairment loss. No goodwill impairments were identified during the years ended December 31, 2022, 2021, or 2020, and no accumulated impairment losses are recorded. We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years |
Income Taxes | The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for a valuation allowance, we consider future taxable income and ongoing prudent and feasible tax planning strategies. In the event that we determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. We classify uncertain tax positions as long-term liabilities. Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. |
Earnings Per Share | Basic earnings per share is computed by dividing net income attributable to our stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the total unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed, and issuance is not contingent. |
Self-Insurance Accruals | We are subject to claims that may arise in the ordinary course of business, including with respect to actual and threatened litigation and other matters. We accrue for loss contingencies when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. However, the results of legal actions cannot be predicted with certainty, and therefore our actual losses with respect to these contingencies could exceed our accruals. |
Fair Value Measurements | U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2, or transfers in or out of Level 3, of the fair value hierarchy during the years ended December 31, 2022 and 2021. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative |
Hedging Instruments | We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. Instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, changes in the fair value of the hedging instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Refer to “Note 21. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on the consolidated statements of income for the years ended December 31, 2022, 2021, and 2020.We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the accompanying consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenues | The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Years Ended December 31, 2022 2021 2020 CAG segment revenue: CAG Diagnostics recurring revenue: $ 2,660,280 $ 2,534,562 $ 2,113,839 IDEXX VetLab consumables 1,057,236 1,006,781 824,376 Rapid assay products 313,667 296,852 253,018 Reference laboratory diagnostic and consulting services 1,178,113 1,123,656 946,268 CAG Diagnostics services and accessories 111,264 107,273 90,177 CAG Diagnostics capital - instruments 147,326 149,140 108,950 Veterinary software, services and diagnostic imaging systems 251,187 206,258 162,976 CAG segment revenue 3,058,793 2,889,960 2,385,765 Water segment revenue 155,720 146,505 128,625 LPD segment revenue 122,607 135,887 145,845 Other segment revenue 30,204 43,008 46,420 Total revenue $ 3,367,324 $ 3,215,360 $ 2,706,655 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Years Ended December 31, 2022 2021 2020 Americas United States $ 2,182,959 $ 1,995,683 $ 1,691,224 Canada 142,743 139,727 107,398 Latin America & Caribbean 75,035 66,623 51,863 2,400,737 2,202,033 1,850,485 Europe, the Middle East and Africa Germany 137,876 146,762 119,353 United Kingdom 110,400 114,955 90,156 France 84,479 90,836 74,814 Italy 48,192 52,062 42,817 Spain 46,982 48,169 39,265 Switzerland 30,646 31,984 24,850 Netherlands 26,882 29,656 23,461 Other 161,577 167,525 148,049 647,034 681,949 562,765 Asia Pacific Region Australia 96,408 94,414 79,629 Japan 77,661 84,275 74,725 China 49,193 63,166 70,845 Other 96,291 89,523 68,206 319,553 331,378 293,405 Total $ 3,367,324 $ 3,215,360 $ 2,706,655 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of selected financial impact of share-based compensation | The following is a summary of share-based compensation costs and related tax benefits recorded in our consolidated statements of income: (in thousands) For the Years Ended December 31, 2022 2021 2020 Share-based compensation expense included in cost of revenue $ 4,638 $ 4,044 $ 3,415 Share-based compensation expense included in operating expenses 45,132 33,711 27,536 Total share-based compensation expense included in consolidated statements of income 49,770 37,755 30,951 Income tax benefit resulting from share-based compensation expense (4,658) (4,734) (3,965) Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards 45,112 33,021 26,986 Income tax benefit resulting from settlement of share-based awards (12,522) (32,474) (38,981) Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income $ 32,590 $ 547 $ (11,995) |
Schedule of weighted averages of the assumptions used in estimating the fair value of stock option awards | The weighted averages of the valuation assumptions used to determine the fair value of each option award on the date of grant and the weighted average estimated fair values were as follows: For the Years Ended December 31, 2022 2021 2020 Expected stock price volatility 30 % 30 % 27 % Expected term, in years 6.4 6.2 6.0 Risk-free interest rate 2.1 % 0.7 % 1.4 % Weighted average fair value of options granted $ 166.30 $ 169.15 $ 84.92 |
Schedule of stock option activity | A summary of the status of options granted under our share-based compensation plans at December 31, 2022, and changes during the year then ended, are presented in the table below: Number of Options (000) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding as of December 31, 2021 1,757 $ 188.47 Granted 158 $ 494.75 Exercised (173) $ 118.96 Forfeited (39) $ 347.18 Expired (2) $ 544.08 Outstanding as of December 31, 2022 1,701 $ 219.90 5.3 $ 352,274 Fully vested as of December 31, 2022 1,202 $ 156.37 4.3 $ 307,580 Fully vested and expected to vest as of December 31, 2022 1,684 $ 217.85 5.2 $ 351,359 |
Schedule of restricted stock unit activity | A summary of the status of RSUs and PBRSUs granted under our share-based compensation plans at December 31, 2022, and changes during the period then ended, are presented in the table below: Number of Units (000) Weighted Average Grant-Date Fair Value Nonvested as of December 31, 2021 165 $ 306.18 Granted 59 Vested (66) Forfeited (10) Nonvested as of December 31, 2022 148 $ 391.55 Expected to vest as of December 31, 2022 141 $ 389.24 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, Net [Abstract] | |
Schedule of components of inventories | The components of inventories are as follows: (in thousands) December 31, 2022 December 31, 2021 Raw materials $ 92,796 $ 60,427 Work-in-process 28,041 26,397 Finished goods 246,986 182,206 Inventories $ 367,823 $ 269,030 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Maturities of operating lease liabilities | Maturities of operating lease liabilities are as follows: (in thousands) December 31, 2022 2023 $ 24,559 2024 22,178 2025 17,879 2026 15,207 2027 12,157 Thereafter 50,677 Total lease payments 142,657 Less imputed interest (20,993) Total lease liability (current and long-term) $ 121,664 |
Lease and supplemental cash flow information | December 31, 2022 December 31, 2021 Weighted average remaining lease term - operating leases 9.7 years 9.4 years Weighted average discount rate - operating leases 3.5 % 2.5 % Supplemental cash flow information for leases is as follows: For the Years Ended (in thousands) 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,973 $ 24,214 Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations $ 36,817 $ 37,572 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of estimated useful lives for property and equipment | We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years |
Schedule of property and equipment | Property and equipment, net, consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Land and improvements $ 22,221 $ 22,642 Buildings and improvements 356,049 329,091 Leasehold improvements 107,251 93,248 Machinery and equipment 404,963 382,753 Office furniture and equipment 71,625 69,090 Computer hardware and software 295,969 276,895 Construction in progress 97,310 62,339 1,355,388 1,236,058 Less accumulated depreciation and amortization 705,914 648,391 Total property and equipment, net $ 649,474 $ 587,667 |
Summary of depreciation and amortization, capitalized computer software for internal use and unpaid property equipment reflected in accounts payable and accrued expenses | Below are the amounts of depreciation and amortization of property and equipment, capitalized computer software for internal use, unpaid property and equipment reflected in accounts payable and accrued expenses, and rental and reagent rental program instruments transferred from inventory to property and equipment: For the Years Ended December 31, (in thousands) 2022 2021 2020 Depreciation and amortization expense $ 96,746 $ 92,376 $ 86,095 Capitalized computer software developed for internal use $ 20,329 $ 14,753 $ 18,472 Unpaid property and equipment, reflected in accounts payable and accrued liabilities $ 18,334 $ 19,326 $ 13,343 Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment (Note 3) $ 17,407 $ 11,628 $ 9,645 |
Other Current and Long-Term A_2
Other Current and Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Customer acquisition costs $ 50,776 $ 48,942 Taxes receivable 48,430 19,464 Contract assets, net (1) 41,854 37,772 Prepaid expenses 41,742 41,997 Cross currency swap contracts 8,135 — Deferred sales commissions 6,472 6,475 Foreign currency exchange contracts 5,185 6,512 Other 17,895 12,661 Other current assets $ 220,489 $ 173,823 (1) Contract assets, net, are net of allowances for credit loss. Refer to “Note 6. Credit Losses.” |
Schedule of other long-term assets | Other long-term assets consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Contract assets, net (1) $ 148,971 $ 122,160 Customer acquisition costs 107,205 109,392 Deferred income taxes 55,215 24,784 Equity investments 30,250 5,250 Investment in long-term product supply arrangements 25,250 13,348 Deferred sales commissions 12,718 13,019 Taxes receivable 717 1,806 Other 37,403 40,641 Other long-term assets $ 417,729 $ 330,400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2022, 2021, and 2020, were as follows: (in thousands) CAG Water LPD Other Consolidated Total Balance as of December 31, 2019 $ 207,350 $ 11,611 $ 14,232 $ 6,531 $ 239,724 Business combinations 220 — — — 220 Acquisition adjustment (1,900) — — — (1,900) Impact of changes in foreign currency exchange rates 4,724 412 167 — 5,303 Balance as of December 31, 2020 $ 210,394 $ 12,023 $ 14,399 $ 6,531 $ 243,347 Business combinations 120,346 — — — 120,346 Impact of changes in foreign currency exchange rates (3,569) (84) (695) — (4,348) Balance as of December 31, 2021 $ 327,171 $ 11,939 $ 13,704 $ 6,531 $ 359,345 Business combinations 1,641 6,857 — — 8,498 Impact of changes in foreign currency exchange rates (5,330) (897) 179 — (6,048) Balance as of December 31, 2022 $ 323,482 $ 17,899 $ 13,883 $ 6,531 $ 361,795 |
Schedule of estimated useful lives for intangible assets | We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years |
Schedule of intangible assets other than goodwill | Intangible assets other than goodwill consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer-related intangible assets (1) $ 104,111 $ 30,952 $ 73,159 $ 121,936 $ 38,349 $ 83,587 Product rights (2) 30,176 8,039 22,137 17,350 5,332 12,018 Noncompete agreements 4,432 2,056 2,376 4,257 827 3,430 $ 138,719 $ 41,047 $ 97,672 $ 143,543 $ 44,508 $ 99,035 The above table excludes fully amortized intangible assets for the periods presented. (1) Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. (2) Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. |
Schedule of expected amortization expense | At December 31, 2022, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter: (in thousands) Amortization Expense 2023 $ 13,841 2024 12,707 2025 12,029 2026 11,767 2027 10,426 Thereafter 36,902 $ 97,672 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Long Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Accrued expenses $ 149,446 $ 133,978 Accrued employee compensation and related expenses 142,994 182,926 Accrued customer incentives and refund obligations 72,250 79,469 Accrued taxes 48,547 42,605 Current lease liabilities 20,425 19,931 Accrued liabilities $ 433,662 $ 458,909 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following: (in thousands) December 31, 2022 December 31, 2021 Accrued taxes $ 49,142 $ 56,466 Other accrued long-term expenses 18,445 14,475 Other long-term liabilities $ 67,587 $ 70,941 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Schedule of long-term debt instruments | The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the “Senior Notes”) as of December 31, 2022: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement |
Schedule of annual principal payments on long-term debt | Annual principal payments on long-term debt at December 31, 2022, are as follows: (in thousands) Years Ending December 31, Amount 2023 $ 75,000 2024 75,000 2025 169,775 2026 75,000 2027 75,000 Thereafter 300,000 $ 769,775 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings before income taxes | Earnings before income taxes were as follows: (in thousands) For the Years Ended December 31, 2022 2021 2020 Domestic $ 684,661 $ 689,994 $ 483,694 International 175,311 212,660 178,291 $ 859,972 $ 902,654 $ 661,985 |
Schedule of components of provision (benefit) for income taxes | The provision (benefit) for income taxes comprised the following: (in thousands) For the Years Ended December 31, 2022 2021 2020 Current Federal $ 150,099 $ 112,811 $ 72,921 State 30,529 19,147 17,346 International 35,138 29,288 26,301 215,766 161,246 116,568 Deferred Federal (31,663) (7,019) (14,126) State (5,735) (503) (2,863) International 2,515 4,086 (19,725) (34,883) (3,436) (36,714) $ 180,883 $ 157,810 $ 79,854 |
Schedule of effective income tax rate reconciliation | The provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate as follows: For the Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 2.3 2.1 2.4 Taxation on international earnings 0.6 (0.8) (1.0) Foreign derived intangible income (1.7) (1.2) (1.1) Share-based compensation from settlements (1.5) (3.6) (5.9) Research and development credit (1.1) (0.7) (0.8) Impact of Switzerland tax reform — — (3.3) Other, net 1.4 0.7 0.8 Effective tax rate 21.0 % 17.5 % 12.1 % |
Schedule of components of net deferred tax assets and liabilities | The components of the net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets are as follows: (in thousands) December 31, 2022 December 31, 2021 Assets Accrued expenses $ 38,457 $ 48,433 Accounts receivable reserves 2,447 2,131 Deferred revenue 4,671 6,269 Inventory basis differences 9,062 6,553 Property-based differences 20,157 16,132 Intangible asset basis differences 44,196 46,606 Share-based compensation 11,324 10,740 Other 1,273 1,163 Net operating loss carryforwards 8,956 8,570 Tax credit carryforwards 13,370 13,483 Unrealized losses on foreign currency exchange contracts and investments 227 1,755 Research and development expenditure differences 29,997 — Total assets 184,137 161,835 Valuation allowance (39,726) (39,280) Total assets, net of valuation allowance 144,411 122,555 Liabilities Customer acquisition costs (37,223) (37,265) Property-based differences (44,295) (42,363) Intangible asset basis differences (2,379) (17,345) Other (8,958) (5,662) Unrealized gains on foreign currency exchange contracts and investments (4,491) (4,071) Total liabilities (97,346) (106,706) Net deferred tax assets $ 47,065 $ 15,849 |
Summary of valuation allowance | The following table summarizes the changes in valuation allowance for deferred tax assets: (in thousands) For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 39,280 $ 40,262 $ 9,454 Charges to costs and expense 2,200 1,464 31,076 Write-off/cash payments (1,537) (1,182) (34) Foreign currency translation (217) (1,264) (234) Balance at the end of the year $ 39,726 $ 39,280 $ 40,262 |
Schedule of changes in unrecognized tax benefits | The following table summarizes the changes in unrecognized tax positions: (in thousands) For the Years Ended December 31, 2022 2021 2020 Total amounts of unrecognized tax benefits, beginning of period $ 21,789 $ 22,484 $ 26,841 Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period 342 443 (1,755) Gross increases in unrecognized tax positions as a result of tax positions taken in the current period 3,197 2,414 4,199 Decreases in unrecognized tax positions related to settlements with taxing authorities (1,544) (537) (6,446) Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations (1,237) (3,015) (355) Total amounts of unrecognized tax benefits, end of period $ 22,547 $ 21,789 $ 22,484 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of shares outstanding for basic and diluted earnings per share | The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share: (in thousands) For the Years Ended December 31, 2022 2021 2020 Shares outstanding for basic earnings per share: 83,623 85,200 85,342 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 83,623 85,200 85,342 Dilutive effect of share-based payment awards 977 1,372 1,380 84,600 86,572 86,722 |
Schedule of number of anti-dilutive stock options | The following table presents information concerning those anti-dilutive awards and options: (in thousands) For the Years Ended December 31, 2022 2021 2020 Weighted average number of shares underlying anti-dilutive options 263 121 206 Weighted average number of shares underlying anti-dilutive awards 46 — — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of segment performance | The following is a summary of segment performance: (in thousands) For the Years Ended December 31, CAG Water LPD Other Consolidated Total 2022 Revenue $ 3,058,793 $ 155,720 $ 122,607 $ 30,204 $ 3,367,324 Income from operations $ 800,949 $ 72,519 $ 19,809 $ 5,488 $ 898,765 Interest expense, net (38,793) Income before provision for income taxes 859,972 Provision for income taxes 180,883 Net income 679,089 Less: Net income attributable to noncontrolling interest — Net income attributable to IDEXX Laboratories, Inc. stockholders $ 679,089 Depreciation and amortization $ 101,254 $ 3,020 $ 3,797 $ 3,829 $ 111,900 2021 Revenue $ 2,889,960 $ 146,505 $ 135,887 $ 43,008 $ 3,215,360 Income from operations $ 824,022 $ 65,444 $ 28,636 $ 13,926 $ 932,028 Interest expense, net (29,374) Income before provision for income taxes 902,654 Provision for income taxes 157,810 Net income 744,844 Less: Net income attributable to noncontrolling interest (1) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 744,845 Depreciation and amortization $ 94,202 $ 2,709 $ 3,908 $ 3,777 $ 104,596 2020 Revenue $ 2,385,765 $ 128,625 $ 145,845 $ 46,420 $ 2,706,655 Income from operations $ 574,887 $ 58,867 $ 40,008 $ 20,762 $ 694,524 Interest expense, net (32,539) Income before provision for income taxes 661,985 Provision for income taxes 79,854 Net income 582,131 Less: Net income attributable to noncontrolling interest 355 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 581,776 Depreciation and amortization $ 84,697 $ 2,630 $ 4,070 $ 4,601 $ 95,998 |
Schedule of net long-lived assets by principal geographic areas | Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: (in thousands) December 31, 2022 December 31, 2021 Americas United States $ 486,690 $ 436,003 Brazil 25,949 17,043 Canada 7,407 7,003 520,046 460,049 Europe, the Middle East and Africa Germany 55,726 60,451 United Kingdom 10,710 9,828 Netherlands 11,975 19,405 France 1,507 1,884 Switzerland 13,445 3,545 Other 3,054 3,821 96,417 98,934 Asia Pacific Region Japan 5,111 5,845 Australia 20,243 14,584 Other 7,657 8,255 33,011 28,684 Total $ 649,474 $ 587,667 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on recurring basis | The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy: (in thousands) As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2022 Assets Equity mutual funds (2) $ 385 $ — $ — $ 385 Cross currency swaps (3) $ — $ 9,262 $ — $ 9,262 Foreign currency exchange contracts (3) $ — $ 5,185 $ — $ 5,185 Liabilities Foreign currency exchange contracts (3) $ — $ 4,572 $ — $ 4,572 Deferred compensation (4) $ 385 $ — $ — $ 385 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (in thousands) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2021 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 826 $ — $ — $ 826 Cross currency swaps (3) $ — $ 4,256 $ — $ 4,256 Foreign currency exchange contracts (3) $ — $ 6,512 $ — $ 6,512 Liabilities Foreign currency exchange contracts (3) $ — $ 601 $ — $ 601 Deferred compensation (4) $ 826 $ — $ — $ 826 Contingent payments - acquisitions $ — $ — $ 7,230 $ 7,230 (1) Money market funds with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2022, and December 31, 2021, consisted of demand deposits. (2) Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. Refer to footnote (4) below for a discussion of the related deferred compensation liability. (3) Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above. |
Schedule of contingent consideration liability | We record changes in the estimated fair value of contingent consideration in the consolidated statements of income. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the year ended December 31, 2022, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2021 $ 7,230 Payment of contingent consideration (7,110) Change in estimated fair value — Contingent consideration as of December 31, 2022 $ 120 |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of net investment hedges and Income Statement impact of hedging instruments | The following table presents the effect of cash flow hedge accounting on our consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Years Ended December 31, 2022 2021 2020 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 1,362,986 $ 1,325,928 $ 1,135,615 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 25,733 $ (7,121) $ 829 |
Schedule of hedging instruments | The fair values of hedging instruments, their respective classification on the consolidated balance sheets, and amounts subject to offset under master netting arrangements consisted of the following derivative instruments, unless otherwise noted: (in thousands) Hedging Assets December 31, 2022 December 31, 2021 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 5,185 $ 6,512 Cross currency swaps Other current assets 8,135 — Cross currency swaps Other long-term assets 1,127 4,256 Total derivative instruments presented as hedge instruments on the balance sheet 14,447 10,768 Gross amounts subject to master netting arrangements not offset on the balance sheet (3,210) (601) Net amount $ 11,237 $ 10,167 (in thousands) Hedging Liabilities December 31, 2022 December 31, 2021 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 4,572 $ 601 Total derivative instruments presented as cash flow hedges on the balance sheet 4,572 601 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 94,775 100,711 Total hedging instruments presented on the balance sheet 99,347 101,312 Gross amounts subject to master netting arrangements not offset on the balance sheet (3,210) (601) Net amount $ 96,137 $ 100,711 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. Refer to “Note 18. Fair Value Measurements” for information regarding the fair value of our long-term debt. |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of common stock repurchases | The following is a summary of our open market common stock repurchases, reported on a trade date basis, and shares acquired through employee surrenders: (in thousands, except per share amounts) For the Years Ended December 31, 2022 2021 2020 Shares repurchased in the open market 1,963 1,283 721 Shares acquired through employee surrenders for statutory tax withholding 21 29 58 Total shares repurchased 1,984 1,312 779 Cost of shares repurchased in the open market $ 810,942 $ 755,545 $ 179,623 Cost of shares for employee surrenders 10,606 15,562 20,603 Total cost of shares $ 821,548 $ 771,107 $ 200,226 Average cost per share - open market repurchases $ 413.12 $ 588.58 $ 249.20 Average cost per share - employee surrenders $ 501.89 $ 548.08 $ 354.98 Average cost per share - total $ 414.06 $ 587.70 $ 257.08 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income | The changes in AOCI, net of tax, consisted of the following: For the Years Ended December 31, 2022 and 2021 Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax (in thousands) Unrealized (Loss) Gain on Investments, Net of Tax Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Defined Benefit Plans, Net of Tax Cumulative Translation Adjustment Total Balance as of December 31, 2020 $ (272) $ (9,934) $ (5,982) $ (2,159) $ — $ (35,268) $ (53,615) Other comprehensive income (loss) before reclassifications 146 9,139 6,404 5,399 — (26,731) (5,643) Amounts reclassified from accumulated other comprehensive income — 5,774 — — — — 5,774 Balance as of December 31, 2021 (126) 4,979 422 3,240 — (61,999) (53,484) Other comprehensive (loss) income before reclassifications (46) 14,851 4,525 3,817 (3,282) (25,692) (5,827) Amounts reclassified from accumulated other comprehensive income — (18,991) — — 506 — (18,485) Balance as of December 31, 2022 $ (172) $ 839 $ 4,947 $ 7,057 $ (2,776) $ (87,691) $ (77,796) |
Summary of reclassifications out of other comprehensive income | The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI for the Years Ended December 31, 2022 2021 2020 Foreign currency exchange contracts Cost of revenue $ 25,733 $ (7,121) $ 829 Tax (expense) benefit (6,742) 1,347 (158) Gains (losses), net of tax $ 18,991 $ (5,774) $ 671 Defined benefit plans Cost of revenue and operating expenses $ (605) $ — $ — Tax benefit 99 — — Losses, net of tax $ (506) $ — $ — |
IDEXX Retirement and Incentiv_2
IDEXX Retirement and Incentive Savings Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of future benefits expected to be paid | Future benefits expected to be paid as of December 31, 2022, are as follows: (in thousands) December 31, 2022 2023 875 2024 1,075 2025 974 2026 804 2027 1,085 2028 through 2032 5,354 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Jan. 01, 2020 USD ($) | Dec. 31, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 0 | $ 0 | |||
Capitalized costs | 0 | 0 | $ 0 | ||
Advertising costs | $ 5,000,000 | 3,300,000 | 1,400,000 | ||
Number of foreign subsidiaries | subsidiary | 6 | ||||
Foreign currency gains (losses) | $ (3,400,000) | (2,100,000) | 600,000 | ||
Equity investment, cost | 30,300,000 | 5,300,000 | |||
Non-cash cumulative effect adjustment to retained earnings, net of tax | 608,737,000 | 689,992,000 | 632,795,000 | $ 177,825,000 | |
Reserve for contract assets and sales-type leases | 5,500,000 | 4,400,000 | |||
Accounts receivable allowance for credit losses | 8,300,000 | 5,700,000 | |||
Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | $ 3,599,529,000 | $ 2,920,440,000 | $ 2,175,595,000 | 1,595,648,000 | |
Accounting Standards Update 2016-13 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Reserve for contract assets and sales-type leases | $ 2,300,000 | ||||
Accounts receivable allowance for credit losses | 200,000 | ||||
Accounting Standards Update 2016-13 | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, tax | $ 600,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | (1,829,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | (1,829,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | $ 1,800,000 |
Revenue Recognition (General Na
Revenue Recognition (General Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
General payment terms | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
General payment terms | 60 days |
Revenue Recognition (Lease Reve
Revenue Recognition (Lease Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Lease revenue | $ 20.3 | $ 20.8 |
Revenue Recognition (Extended W
Revenue Recognition (Extended Warranties and Post-Contract Support) (Details) - Extended warranties and post contract support - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Post-contract support contract, term | 12 months | |
Deferred revenue | $ 26.4 | $ 30 |
Deferred revenue recognized | 21.3 | |
Estimation of future revenues | $ 11.3 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 1 year | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 5 years |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligation) (Details) | Dec. 31, 2022 |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 44% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 31% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 14% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 6% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 5% |
Revenue recognition period (in years) | |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 28% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 25% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 20% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 15% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 12% |
Revenue recognition period (in years) | |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 36% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 25% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 17% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 13% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 9% |
Revenue recognition period (in years) | |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 30% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 25% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 20% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 13% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 12% |
Revenue recognition period (in years) |
Revenue Recognition (SaaS Subsc
Revenue Recognition (SaaS Subscriptions) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
SaaS subscription, term | 2 years |
Revenue Recognition (Up-Front C
Revenue Recognition (Up-Front Customer Loyalty Programs) (Details) - Up front customer loyalty programs - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized customer acquisition costs | $ 158 | $ 158.3 |
Capitalized customer acquisition costs recognized as a reduction of revenue | $ 48.9 |
Revenue Recognition (Volume Com
Revenue Recognition (Volume Commitment Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Volume commitment programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Commitment contract assets | $ 190.8 | $ 159.9 |
Commitment contract assets reclassified to accounts receivable | 38 | |
Up front customer loyalty programs and volume commitment programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Estimation of future revenues | $ 3,200 |
Revenue Recognition (Instrument
Revenue Recognition (Instrument Rebate Programs) (Details) - Instrument rebate programs - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 25.6 | $ 33 |
Deferred revenue recognized | $ 12 |
Revenue Recognition (Reagent Re
Revenue Recognition (Reagent Rental Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Lease receivable asset | $ 18.4 | $ 15.3 |
Lease receivable, reclassified to receivable | 3.4 | |
Reagent rental programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Estimation of future revenues | $ 42.8 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Major Product and Service Categories) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 3,367,324 | $ 3,215,360 | $ 2,706,655 |
CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 3,058,793 | 2,889,960 | 2,385,765 |
Water segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 155,720 | 146,505 | 128,625 |
LPD segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 122,607 | 135,887 | 145,845 |
Other segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 30,204 | 43,008 | 46,420 |
CAG Diagnostics recurring revenue: | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,660,280 | 2,534,562 | 2,113,839 |
IDEXX VetLab consumables | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,057,236 | 1,006,781 | 824,376 |
Rapid assay products | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 313,667 | 296,852 | 253,018 |
Reference laboratory diagnostic and consulting services | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,178,113 | 1,123,656 | 946,268 |
CAG Diagnostics services and accessories | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 111,264 | 107,273 | 90,177 |
CAG Diagnostics capital - instruments | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 147,326 | 149,140 | 108,950 |
Veterinary software, services and diagnostic imaging systems | CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 251,187 | $ 206,258 | $ 162,976 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Principal Geographic Area, Based on Customers' Domiciles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 3,367,324 | $ 3,215,360 | $ 2,706,655 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,400,737 | 2,202,033 | 1,850,485 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,182,959 | 1,995,683 | 1,691,224 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 142,743 | 139,727 | 107,398 |
Latin America & Caribbean | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 75,035 | 66,623 | 51,863 |
Europe, the Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 647,034 | 681,949 | 562,765 |
Germany | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 137,876 | 146,762 | 119,353 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 110,400 | 114,955 | 90,156 |
France | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 84,479 | 90,836 | 74,814 |
Italy | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 48,192 | 52,062 | 42,817 |
Spain | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 46,982 | 48,169 | 39,265 |
Switzerland | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 30,646 | 31,984 | 24,850 |
Netherlands | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 26,882 | 29,656 | 23,461 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 161,577 | 167,525 | 148,049 |
Asia Pacific Region | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 319,553 | 331,378 | 293,405 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 96,408 | 94,414 | 79,629 |
Japan | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 77,661 | 84,275 | 74,725 |
China | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 49,193 | 63,166 | 70,845 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 96,291 | $ 89,523 | $ 68,206 |
Revenue Recognition (Costs to O
Revenue Recognition (Costs to Obtain a Contract) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred commission costs | $ 19.2 | $ 19.5 |
Commissions expense recognized | $ 6.5 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Amortization period | 3 years | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Amortization period | 7 years |
Acquisitions, Asset Purchases_2
Acquisitions, Asset Purchases and Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) arrangement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Investment acquired, non-controlling interest share | $ 25,000 | $ 0 | $ 250 | |||||||
Goodwill | $ 359,345 | $ 361,795 | 359,345 | $ 243,347 | $ 239,724 | |||||
Noncontrolling interest, remaining percentage purchased from noncontrolling owners | 5% | |||||||||
Noncontrolling interest, purchase of Interests | $ 1,000 | 990 | ||||||||
International Water Testing Company | Canada | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | $ 12,800 | |||||||||
Holdback | 1,300 | |||||||||
Goodwill | $ 6,900 | |||||||||
International Water Testing Company | Canada | Technology-based intangible assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||
Net tangible assets | $ 3,400 | |||||||||
International Water Testing Company | Canada | Customer relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||
Net tangible assets | $ 1,200 | |||||||||
International Water Testing Company | Canada | New tangible assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 1,300 | |||||||||
Reference Laboratory | Finland | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | 13,400 | |||||||||
Holdback | 1,400 | 1,400 | ||||||||
Goodwill | 6,900 | 6,900 | ||||||||
Net tangible liabilities | $ 1,700 | 1,700 | ||||||||
Reference Laboratory | Finland | Customer relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||
Net tangible assets | $ 7,400 | 7,400 | ||||||||
Reference Laboratory | Finland | Noncompete agreements | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible asset, useful life | 3 years | |||||||||
Net tangible assets | $ 800 | 800 | ||||||||
Reference Laboratory | Switzerland | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 1,800 | |||||||||
Consideration transferred | 5,500 | |||||||||
Contingent payment and holdback | 1,100 | |||||||||
Liabilities | $ 600 | |||||||||
Reference Laboratory | Switzerland | Customer relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible asset, useful life | 9 years | |||||||||
Intangible assets acquired | $ 4,300 | |||||||||
Teleradiology Business | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 3,700 | |||||||||
Consideration transferred | 5,400 | |||||||||
Contingent consideration | 300 | |||||||||
Teleradiology Business | Customer relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 1,700 | |||||||||
Weighted average useful life of intangible assets | 10 years | |||||||||
EzyVet Cloud-based Veterinary | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 3,200 | |||||||||
Goodwill | 109,400 | |||||||||
Consideration transferred | 157,200 | |||||||||
Contingent consideration | 7,000 | 5,000 | $ 7,000 | |||||||
Change in amount of contingent payable | 2,000 | |||||||||
Acquisition expenses | $ 2,200 | |||||||||
EzyVet Cloud-based Veterinary | IDEXX VetLab consumables | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 23,400 | |||||||||
EzyVet Cloud-based Veterinary | Reference laboratory diagnostic and consulting services | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 27,000 | |||||||||
EzyVet Cloud-based Veterinary | Rapid assay products | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 11,100 | |||||||||
EzyVet Cloud-based Veterinary | Veterinary software, services and diagnostic imaging systems | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 47,900 | |||||||||
EzyVet Cloud-based Veterinary | Technology-based intangible assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 8,400 | |||||||||
Weighted average useful life of intangible assets | 6 years | |||||||||
EzyVet Cloud-based Veterinary | Customer relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 32,000 | |||||||||
Weighted average useful life of intangible assets | 10 years | |||||||||
EzyVet Cloud-based Veterinary | Noncompete agreements | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 1,800 | |||||||||
Weighted average useful life of intangible assets | 5 years | |||||||||
EzyVet Cloud-based Veterinary | Trademarks | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net tangible assets | $ 2,400 | |||||||||
Weighted average useful life of intangible assets | 14 years | |||||||||
License Intellectual Property Rights | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of arrangements to license intellectual property | arrangement | 2 | |||||||||
Payments to acquire productive assets | $ 65,000 | |||||||||
Payable to acquire productive assets | 15,000 | |||||||||
License Intellectual Property Rights | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire productive assets | $ 15,000 | |||||||||
Perpetual Intellectual Property License | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire productive assets | $ 10,000 | |||||||||
Finite-lived intangible asset, useful life | 10 years |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 | Dec. 31, 2018 shares | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | $ | $ 65.1 | |||||
Weighted average recognition period for unrecognized compensation expense, in years | 1 year 3 months 18 days | |||||
Intrinsic value of stock options exercised | $ | $ 54.6 | $ 147.9 | $ 163 | |||
Nonvested, intrinsic value | $ | $ 60.3 | |||||
Number of unissued shares of common stock each DSU represents right to receive (in shares) | 1 | |||||
Deferred stock units, outstanding (in shares) | 58,000 | 90,000 | ||||
2018 Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for grant under share-based incentive plans (in shares) | 7,500,000 | |||||
Shares available for grant under share-based incentive plans (in shares) | 6,300,000 | |||||
Stock options and stock appreciation rights | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 1 | |||||
Awards other than stock options and stock appreciation rights | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 2.4 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional vesting period | 2 years | |||||
Contractual term | 10 years | |||||
Award vesting rights, percentage | 25% | |||||
Fair value of options vested during period | $ | $ 20.4 | $ 17.3 | 14.6 | |||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional vesting period | 2 years | |||||
Award vesting rights, percentage | 25% | |||||
Fair value of awards vested during period | $ | $ 32.9 | $ 46.1 | $ 27.9 | |||
Vested (in shares) | 66,000 | |||||
Deferred stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Deferred stock units, outstanding (in shares) | 58,000 | 90,000 | ||||
Vested (in shares) | 33,000 | |||||
1997 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for grant under share-based incentive plans (in shares) | 4,700,000 | |||||
Shares available for grant under share-based incentive plans (in shares) | 1,000,000 | |||||
Discount from market value for employee stock purchase rights | 15% | |||||
Common stock issued in connection with the Employee Stock Purchase Plan (in shares) | 44,600 | 29,500 | 39,000 | |||
Share-based Compensation Award, Tranche One | Stock options granted to employees with ratable vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Share-based Compensation Award, Tranche One | Restricted stock units granted to employees with ratable vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Share-based Compensation Award, Tranche Two | Stock options granted to employees with ratable vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Share-based Compensation Award, Tranche Two | Restricted stock units granted to employees with ratable vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Selected Financial Impact of Share-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 49,770 | $ 37,755 | $ 30,951 |
Income tax benefit resulting from share-based compensation expense | (4,658) | (4,734) | (3,965) |
Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards | 45,112 | 33,021 | 26,986 |
Income tax benefit resulting from settlement of share-based awards | (12,522) | (32,474) | (38,981) |
Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income | 32,590 | 547 | (11,995) |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4,638 | 4,044 | 3,415 |
Operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 45,132 | $ 33,711 | $ 27,536 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Weighted Averages of the Assumptions Used In Estimating the Fair Value of Stock Option Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected stock price volatility | 30% | 30% | 27% |
Expected term, in years | 6 years 4 months 24 days | 6 years 2 months 12 days | 6 years |
Risk-free interest rate | 2.10% | 0.70% | 1.40% |
Weighted average fair value of options granted (in USD per shares) | $ 166.30 | $ 169.15 | $ 84.92 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Options | |
Outstanding, at beginning of year (in shares) | shares | 1,757 |
Granted (in shares) | shares | 158 |
Exercised (in shares) | shares | (173) |
Forfeited (in shares) | shares | (39) |
Expired (in shares) | shares | (2) |
Outstanding, at end of year (in shares) | shares | 1,701 |
Fully vested, at end of year (in shares) | shares | 1,202 |
Fully vested and expected to vest, at end of year (in shares) | shares | 1,684 |
Weighted Average Exercise Price | |
Weighted average exercise price of beginning balance of options outstanding (in USD per share) | $ / shares | $ 188.47 |
Weighted average exercise price of options granted (in USD per share) | $ / shares | 494.75 |
Weighted average exercise price of options exercised (in USD per share) | $ / shares | 118.96 |
Weighted average exercise price of options forfeited (in USD per share) | $ / shares | 347.18 |
Weighted average exercise price of options expired (in USD per share) | $ / shares | 544.08 |
Weighted average exercise price of ending balance of options outstanding (in USD per share) | $ / shares | 219.90 |
Weighted average exercise price of options fully vested (in USD per share) | $ / shares | 156.37 |
Weighted average exercise price of options fully vested and expected to vest (in USD per share) | $ / shares | $ 217.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term of ending balance of options outstanding | 5 years 3 months 18 days |
Weighted average remaining contractual term of options fully vested | 4 years 3 months 18 days |
Weighted average remaining contractual term of options fully vested and expected to vest | 5 years 2 months 12 days |
Aggregate intrinsic value | $ | $ 352,274 |
Aggregate intrinsic value of options fully vested | $ | 307,580 |
Aggregate intrinsic value of options expected to vest | $ | $ 351,359 |
Share-Based Compensation (Sch_4
Share-Based Compensation (Schedule Of Restricted Stock Unit Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted stock units (RSU's) | |
Number of Units | |
Nonvested, at beginning of year (in shares) | 165 |
Granted (in shares) | 59 |
Vested (in shares) | (66) |
Forfeited (in shares) | (10) |
Nonvested, at end of year (in shares) | 148 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant date fair value, at beginning of year (in USD per share) | $ / shares | $ 306.18 |
Weighted average grant date fair value, end of year (in USD per share) | $ / shares | $ 391.55 |
Restricted stock units expected to vest reduced for estimated forfeitures | |
Number of Units | |
Nonvested, at end of year (in shares) | 141 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant date fair value, end of year (in USD per share) | $ / shares | $ 389.24 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable allowance for credit losses | $ 8.3 | $ 5.7 |
Percent of accounts receivable not past due | 86% | 90% |
Percent of accounts receivable past due | 14% | 10% |
Accounts receivable, noncurrent, threshold period past due | 60 days | 60 days |
Reserve for contract assets and sales-type leases | $ 5.5 | $ 4.4 |
Greater than 60 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percent of accounts receivable past due | 2% | 1.80% |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory, Net [Abstract] | |||
Unpaid inventory | $ 59,400 | $ 64,400 | $ 45,600 |
Reagent rental programs | |||
Inventory [Line Items] | |||
Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment | $ 17,407 | $ 11,628 | $ 9,645 |
Inventories (Schedule of Compon
Inventories (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Raw materials | $ 92,796 | $ 60,427 |
Work-in-process | 28,041 | 26,397 |
Finished goods | 246,986 | 182,206 |
Inventories | $ 367,823 | $ 269,030 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, not yet commenced, liability | $ 0.6 | |
Rent expense, excluding variable and short-term expenses | 26.8 | $ 23 |
Total rent expense including variable rent and short-term expenses | $ 28.7 | $ 25.5 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, not yet commenced, lease term | 3 years 2 months 12 days | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, termination period | 1 year | |
Operating leases, not yet commenced, lease term | 7 years 8 months 12 days |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 24,559 | |
2024 | 22,178 | |
2025 | 17,879 | |
2026 | 15,207 | |
2027 | 12,157 | |
Thereafter | 50,677 | |
Total lease payments | 142,657 | |
Less imputed interest | (20,993) | |
Total lease liability (current and long-term) | $ 121,664 | |
Weighted average remaining lease term - operating leases | 9 years 8 months 12 days | 9 years 4 months 24 days |
Weighted average discount rate - operating leases | 3.50% | 2.50% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 24,973 | $ 24,214 |
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations | $ 36,817 | $ 37,572 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Property and Equipment, Net (_2
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross amount | $ 1,355,388 | $ 1,236,058 |
Less accumulated depreciation and amortization | 705,914 | 648,391 |
Total property and equipment, net | 649,474 | 587,667 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 22,221 | 22,642 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 356,049 | 329,091 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 107,251 | 93,248 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 404,963 | 382,753 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 71,625 | 69,090 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 295,969 | 276,895 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | $ 97,310 | $ 62,339 |
Property and Equipment, Net (Su
Property and Equipment, Net (Summary Of Depreciation And Amortization, Capitalized Computer Software For Internal Use And Unpaid Property Equipment Reflected In Account Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 96,746 | $ 92,376 | $ 86,095 |
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | 18,334 | 19,326 | 13,343 |
Reagent rental programs | |||
Property, Plant and Equipment [Line Items] | |||
Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment | 17,407 | 11,628 | 9,645 |
Capitalized computer software developed for internal use | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized computer software developed for internal use | $ 20,329 | $ 14,753 | $ 18,472 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Write-down of rental assets | $ 0 | $ 5,100,000 | $ 0 |
Other Current and Long-Term A_3
Other Current and Long-Term Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Customer acquisition costs | $ 50,776 | $ 48,942 |
Taxes receivable | 48,430 | 19,464 |
Contract assets, net | 41,854 | 37,772 |
Prepaid expenses | 41,742 | 41,997 |
Cross currency swap contracts | 8,135 | 0 |
Deferred sales commissions | 6,472 | 6,475 |
Foreign currency exchange contracts | 5,185 | 6,512 |
Other | 17,895 | 12,661 |
Other current assets | $ 220,489 | $ 173,823 |
Other Current and Long-Term A_4
Other Current and Long-Term Assets (Schedule Of Other Long-term Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets, net | $ 148,971 | $ 122,160 |
Customer acquisition costs | 107,205 | 109,392 |
Deferred income taxes | 55,215 | 24,784 |
Equity investments | 30,250 | 5,250 |
Investment in long-term product supply arrangements | 25,250 | 13,348 |
Deferred sales commissions | 12,718 | 13,019 |
Taxes receivable | 717 | 1,806 |
Other | 37,403 | 40,641 |
Other long-term assets | $ 417,729 | $ 330,400 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill impairments | $ 0 | $ 0 | $ 0 | |
Goodwill impairments, accumulated impairment loss | $ 0 | 0 | 0 | 0 |
Intangible assets impairments | 0 | 0 | ||
Aggregate amortization expense | $ 15,000,000 | $ 12,100,000 | $ 9,800,000 | |
ezyVet | ||||
Business Acquisition [Line Items] | ||||
Change in amount of contingent payable | $ 2,000,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 359,345 | $ 243,347 | $ 239,724 |
Business combinations | 8,498 | 120,346 | 220 |
Acquisition adjustment | (1,900) | ||
Impact of changes in foreign currency exchange rates | (6,048) | (4,348) | 5,303 |
Ending balance | 361,795 | 359,345 | 243,347 |
CAG | |||
Goodwill [Roll Forward] | |||
Beginning balance | 327,171 | 210,394 | 207,350 |
Business combinations | 1,641 | 120,346 | 220 |
Acquisition adjustment | (1,900) | ||
Impact of changes in foreign currency exchange rates | (5,330) | (3,569) | 4,724 |
Ending balance | 323,482 | 327,171 | 210,394 |
Water | |||
Goodwill [Roll Forward] | |||
Beginning balance | 11,939 | 12,023 | 11,611 |
Business combinations | 6,857 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | (897) | (84) | 412 |
Ending balance | 17,899 | 11,939 | 12,023 |
LPD | |||
Goodwill [Roll Forward] | |||
Beginning balance | 13,704 | 14,399 | 14,232 |
Business combinations | 0 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | 179 | (695) | 167 |
Ending balance | 13,883 | 13,704 | 14,399 |
Other | |||
Goodwill [Roll Forward] | |||
Beginning balance | 6,531 | 6,531 | 6,531 |
Business combinations | 0 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | 0 | 0 | 0 |
Ending balance | $ 6,531 | $ 6,531 | $ 6,531 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Schedule of Estimated Useful Lives For Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Customer-related intangible assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 3 years |
Customer-related intangible assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 17 years |
Product rights | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Product rights | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 15 years |
Noncompete agreements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 3 years |
Noncompete agreements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Schedule of Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 138,719 | $ 143,543 |
Accumulated Amortization | 41,047 | 44,508 |
Net | 97,672 | 99,035 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 104,111 | 121,936 |
Accumulated Amortization | 30,952 | 38,349 |
Net | 73,159 | 83,587 |
Product rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 30,176 | 17,350 |
Accumulated Amortization | 8,039 | 5,332 |
Net | 22,137 | 12,018 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,432 | 4,257 |
Accumulated Amortization | 2,056 | 827 |
Net | $ 2,376 | $ 3,430 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Schedule of Expected Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 13,841 | |
2024 | 12,707 | |
2025 | 12,029 | |
2026 | 11,767 | |
2027 | 10,426 | |
Thereafter | 36,902 | |
Net | $ 97,672 | $ 99,035 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Long Term Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 149,446 | $ 133,978 |
Accrued employee compensation and related expenses | 142,994 | 182,926 |
Accrued customer incentives and refund obligations | 72,250 | 79,469 |
Accrued taxes | 48,547 | 42,605 |
Current lease liabilities | $ 20,425 | $ 19,931 |
Operating lease, liability, current, statement of financial position [extensible enumeration] | Accrued liabilities | Accrued liabilities |
Accrued liabilities | $ 433,662 | $ 458,909 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Long Term Liabilities (Schedule Of Other Long-term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $ 49,142 | $ 56,466 |
Other accrued long-term expenses | 18,445 | 14,475 |
Other long-term liabilities | $ 67,587 | $ 70,941 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 12 Months Ended | |||||||||||||||||
Oct. 20, 2022 USD ($) | Jul. 31, 2021 USD ($) | Dec. 19, 2014 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 09, 2021 USD ($) | Apr. 14, 2020 USD ($) | Apr. 10, 2020 USD ($) amendement | Apr. 02, 2020 USD ($) | Mar. 23, 2020 USD ($) | Mar. 22, 2020 USD ($) | Mar. 14, 2019 USD ($) | Jun. 30, 2015 EUR (€) | Sep. 30, 2014 USD ($) | Jul. 31, 2014 USD ($) | Dec. 31, 2013 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||||||||||
Outstanding credit facility balance | $ 579,000,000 | $ 73,500,000 | ||||||||||||||||
Repayments of senior debt | 75,000,000 | 50,000,000 | $ 0 | |||||||||||||||
Interest paid | $ 39,500,000 | 30,500,000 | $ 32,400,000 | |||||||||||||||
Term Loan | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Borrowing capacity option amount | $ 1,500,000,000 | |||||||||||||||||
Senior Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Number of amendments | amendement | 2 | |||||||||||||||||
Consolidated leverage ratio under credit facility & note payable, maximum | 3.50% | |||||||||||||||||
Senior Notes | 2023 Series A Notes and 2025 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 150,000,000 | |||||||||||||||||
Senior Notes | 2023 Series A Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 3.94% | 3.94% | 3.94% | |||||||||||||||
Senior Notes | 2025 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 4.04% | 4.04% | 4.04% | |||||||||||||||
Senior Notes | 2026 Senior Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 3.72% | 3.72% | 3.72% | |||||||||||||||
Senior Notes | 2021 Series A Notes and 2024 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 125,000,000 | |||||||||||||||||
Senior Notes | 2021 Series A Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 50,000,000 | |||||||||||||||||
Stated interest rate | 3.32% | |||||||||||||||||
Repayments of senior debt | $ 50,000,000 | |||||||||||||||||
Senior Notes | 2024 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 3.76% | 3.76% | 3.76% | |||||||||||||||
Senior Notes | 2025 Series C Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | € | € 88,857,000 | € 88,900,000 | ||||||||||||||||
Stated interest rate | 1.785% | 1.785% | 1.785% | |||||||||||||||
Senior Notes | Prudential 2030 Series D Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Borrowing capacity | $ 425,000,000 | |||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | |||||||||||||||
Senior Notes | 2022 Series A Notes and 2027 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 150,000,000 | |||||||||||||||||
Senior Notes | 2022 Series A Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, term | 7 years | |||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 3.25% | |||||||||||||||||
Senior Notes | 2027 Series B Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, term | 12 years | |||||||||||||||||
Face amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||||||
Stated interest rate | 3.72% | 3.72% | 3.72% | |||||||||||||||
Senior Notes | 2029 Series C Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 100,000,000 | $ 100,000,000 | ||||||||||||||||
Stated interest rate | 4.19% | 4.19% | 4.19% | |||||||||||||||
Senior Notes | MetLife 2030 Series D Notes | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Borrowing capacity | $ 300,000,000 | $ 150,000,000 | ||||||||||||||||
Face amount | $ 125,000,000 | $ 125,000,000 | ||||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | |||||||||||||||
Secured Debt | Term Loan | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Face amount | $ 250,000,000 | |||||||||||||||||
Outstanding credit facility balance | $ 250,000,000 | |||||||||||||||||
Secured Debt | Term Loan | Prime Rate | Minimum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Credit spread during period | 0% | |||||||||||||||||
Secured Debt | Term Loan | Prime Rate | Maximum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Credit spread during period | 0.375% | |||||||||||||||||
Secured Debt | Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Credit spread during period | 0.10% | |||||||||||||||||
Secured Debt | Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Basis spread on variable rate, additional | 0.875% | |||||||||||||||||
Secured Debt | Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Basis spread on variable rate, additional | 1.375% | |||||||||||||||||
Secured Debt | Term Loan | Daily Secured Overnight Financing Rate (SOFR) | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Credit spread during period | 0.10% | |||||||||||||||||
Secured Debt | Term Loan | Daily Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Basis spread on variable rate, additional | 0.875% | |||||||||||||||||
Secured Debt | Term Loan | Daily Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Basis spread on variable rate, additional | 1.375% | |||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Outstanding credit facility balance | $ 329,000,000 | 73,500,000 | ||||||||||||||||
Stated interest rate | 5.10% | 5.10% | ||||||||||||||||
Credit facility weighted average interest rates on outstanding balance | 3.10% | 3.10% | ||||||||||||||||
Reduction of credit facility availability | $ 1,500,000 | $ 1,400,000 | ||||||||||||||||
Consolidated leverage ratio under credit facility & note payable, maximum | 3.50% | |||||||||||||||||
Revolving Credit Facility | Term Loan | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, term | 5 years | |||||||||||||||||
Borrowing capacity | $ 1,000,000,000 | |||||||||||||||||
Principal amount | $ 250,000,000 | |||||||||||||||||
Revolving Credit Facility, Individual Borrowings | Minimum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, term | 1 day | |||||||||||||||||
Revolving Credit Facility, Individual Borrowings | Maximum | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Debt instrument, term | 180 days |
Debt (Schedule of Current Senio
Debt (Schedule of Current Senior Notes Outstanding) (Details) - Senior Notes | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Apr. 14, 2020 USD ($) | Apr. 02, 2020 USD ($) | Mar. 14, 2019 USD ($) | Jun. 30, 2015 EUR (€) | Dec. 19, 2014 USD ($) | Sep. 30, 2014 USD ($) | Jul. 31, 2014 USD ($) | Dec. 31, 2013 USD ($) |
2023 Series A Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 3.94% | 3.94% | 3.94% | |||||||
2025 Series B Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 4.04% | 4.04% | 4.04% | |||||||
2026 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 3.72% | 3.72% | 3.72% | |||||||
2024 Series B Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 3.76% | 3.76% | 3.76% | |||||||
2025 Series C Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | € | € 88,857,000 | € 88,900,000 | ||||||||
Coupon Rate | 1.785% | 1.785% | 1.785% | |||||||
2027 Series B Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 3.72% | 3.72% | 3.72% | |||||||
2029 Series C Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 100,000,000 | $ 100,000,000 | ||||||||
Coupon Rate | 4.19% | 4.19% | 4.19% | |||||||
MetLife 2030 Series D Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 125,000,000 | $ 125,000,000 | ||||||||
Coupon Rate | 2.50% | 2.50% | 2.50% | |||||||
Prudential 2030 Series D Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 2.50% | 2.50% | 2.50% |
Debt (Schedule of Annual Princi
Debt (Schedule of Annual Principal Payments on Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instruments [Abstract] | |
2023 | $ 75,000 |
2024 | 75,000 |
2025 | 169,775 |
2026 | 75,000 |
2027 | 75,000 |
Thereafter | 300,000 |
Total | $ 769,775 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 684,661 | $ 689,994 | $ 483,694 |
International | 175,311 | 212,660 | 178,291 |
Income before provision for income taxes | $ 859,972 | $ 902,654 | $ 661,985 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 150,099 | $ 112,811 | $ 72,921 |
State | 30,529 | 19,147 | 17,346 |
International | 35,138 | 29,288 | 26,301 |
Provision for current income taxes | 215,766 | 161,246 | 116,568 |
Deferred | |||
Federal | (31,663) | (7,019) | (14,126) |
State | (5,735) | (503) | (2,863) |
International | 2,515 | 4,086 | (19,725) |
Provision (benefit) for deferred income taxes | (34,883) | (3,436) | (36,714) |
Provision for income taxes | $ 180,883 | $ 157,810 | $ 79,854 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21% | 21% | 21% |
State income tax, net of federal tax benefit | 2.30% | 2.10% | 2.40% |
Taxation on international earnings | 0.60% | (0.80%) | (1.00%) |
Foreign derived intangible income | (1.70%) | (1.20%) | (1.10%) |
Share-based compensation from settlements | (1.50%) | (3.60%) | (5.90%) |
Research and development credit | (1.10%) | (0.70%) | (0.80%) |
Impact of Switzerland tax reform | 0% | 0% | (3.30%) |
Other, net | 1.40% | 0.70% | 0.80% |
Effective tax rate | 21% | 17.50% | 12.10% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 21% | 17.50% | 12.10% |
Income taxes paid | $ 239.8 | $ 161.7 | $ 110.7 |
Income tax ruling exemption | 21.4 | 14.2 | |
Net operating loss carryforwards in certain state and international jurisdictions | 34.1 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 20.9 | 22.2 | |
Interest expense and penalties related to unrecognized tax benefits | 1.3 | 1.1 | 1.3 |
Interest expense and penalties accrued | $ 4.2 | $ 3.8 | $ 3.6 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Accrued expenses | $ 38,457 | $ 48,433 | ||
Accounts receivable reserves | 2,447 | 2,131 | ||
Deferred revenue | 4,671 | 6,269 | ||
Inventory basis differences | 9,062 | 6,553 | ||
Property-based differences | 20,157 | 16,132 | ||
Intangible asset basis differences | 44,196 | 46,606 | ||
Share-based compensation | 11,324 | 10,740 | ||
Other | 1,273 | 1,163 | ||
Net operating loss carryforwards | 8,956 | 8,570 | ||
Tax credit carryforwards | 13,370 | 13,483 | ||
Unrealized losses on foreign currency exchange contracts and investments | 227 | 1,755 | ||
Research and development expenditure differences | 29,997 | 0 | ||
Total assets | 184,137 | 161,835 | ||
Valuation allowance | (39,726) | (39,280) | $ (40,262) | $ (9,454) |
Total assets, net of valuation allowance | 144,411 | 122,555 | ||
Liabilities | ||||
Customer acquisition costs | (37,223) | (37,265) | ||
Property-based differences | (44,295) | (42,363) | ||
Intangible asset basis differences | (2,379) | (17,345) | ||
Other | (8,958) | (5,662) | ||
Unrealized gains on foreign currency exchange contracts and investments | (4,491) | (4,071) | ||
Total liabilities | (97,346) | (106,706) | ||
Net deferred tax assets | $ 47,065 | $ 15,849 |
Income Taxes (Schedule of Valua
Income Taxes (Schedule of Valuation Allowance For Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 39,280 | $ 40,262 | $ 9,454 |
Charges to costs and expense | 2,200 | 1,464 | 31,076 |
Write-off/cash payments | (1,537) | (1,182) | (34) |
Foreign currency translation | (217) | (1,264) | (234) |
Balance at the end of the year | $ 39,726 | $ 39,280 | $ 40,262 |
Income Taxes (Schedule of Chang
Income Taxes (Schedule of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total amounts of unrecognized tax benefits, beginning of period | $ 21,789 | $ 22,484 | $ 26,841 |
Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period | 342 | 443 | |
Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period | (1,755) | ||
Gross increases in unrecognized tax positions as a result of tax positions taken in the current period | 3,197 | 2,414 | 4,199 |
Decreases in unrecognized tax positions related to settlements with taxing authorities | (1,544) | (537) | (6,446) |
Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations | (1,237) | (3,015) | (355) |
Total amounts of unrecognized tax benefits, end of period | $ 22,547 | $ 21,789 | $ 22,484 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares outstanding for basic earnings per share: | |||
Shares outstanding for basic earnings per share (in shares) | 83,623 | 85,200 | 85,342 |
Shares outstanding for diluted earnings per share: | |||
Shares outstanding for basic earnings per share (in shares) | 83,623 | 85,200 | 85,342 |
Dilutive effect of share-based payment awards (in shares) | 977 | 1,372 | 1,380 |
Shares outstanding for diluted earnings per share (in shares) | 84,600 | 86,572 | 86,722 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule Of Number Of Anti-Dilutive Stock Options and Awards) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of shares underlying anti-dilutive options (in shares) | 263 | 121 | 206 |
Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of shares underlying anti-dilutive options (in shares) | 46 | 0 | 0 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase obligations due in within year one | $ 232,400,000 | ||
Purchase obligations due in after year one | 50,400,000 | ||
Damages sought | 50,000,000 | ||
Loss contingency accrual | $ 27,500,000 | ||
Liabilities for indemnification obligations | $ 0 | $ 0 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Reporting (Summary of S
Segment Reporting (Summary of Segment Performance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 3,367,324 | $ 3,215,360 | $ 2,706,655 |
Income from operations | 898,765 | 932,028 | 694,524 |
Interest expense, net | (38,793) | (29,374) | (32,539) |
Income before provision for income taxes | 859,972 | 902,654 | 661,985 |
Provision for income taxes | 180,883 | 157,810 | 79,854 |
Net income | 679,089 | 744,844 | 582,131 |
Less: Net (loss) income attributable to noncontrolling interest | 0 | (1) | 355 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | 679,089 | 744,845 | 581,776 |
Depreciation and amortization | 111,900 | 104,596 | 95,998 |
CAG | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,058,793 | 2,889,960 | 2,385,765 |
Income from operations | 800,949 | 824,022 | 574,887 |
Depreciation and amortization | 101,254 | 94,202 | 84,697 |
Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 155,720 | 146,505 | 128,625 |
Income from operations | 72,519 | 65,444 | 58,867 |
Depreciation and amortization | 3,020 | 2,709 | 2,630 |
LPD | |||
Segment Reporting Information [Line Items] | |||
Revenue | 122,607 | 135,887 | 145,845 |
Income from operations | 19,809 | 28,636 | 40,008 |
Depreciation and amortization | 3,797 | 3,908 | 4,070 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 30,204 | 43,008 | 46,420 |
Income from operations | 5,488 | 13,926 | 20,762 |
Depreciation and amortization | $ 3,829 | $ 3,777 | $ 4,601 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Net Long-Lived Assets by Principal Geographic Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 649,474 | $ 587,667 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 520,046 | 460,049 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 486,690 | 436,003 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 25,949 | 17,043 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 7,407 | 7,003 |
Europe, the Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 96,417 | 98,934 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 55,726 | 60,451 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 10,710 | 9,828 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 11,975 | 19,405 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,507 | 1,884 |
Switzerland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 13,445 | 3,545 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,054 | 3,821 |
Asia Pacific Region | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 33,011 | 28,684 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 5,111 | 5,845 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 20,243 | 14,584 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 7,657 | $ 8,255 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payment of contingent consideration | $ 6,431 | $ 1,500 | $ 1,676 | ||
ezyVet | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent payment | $ 7,000 | ||||
Another acquisition | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payment of contingent consideration | $ 100 | ||||
Estimated fair value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value disclosure | 725,600 | 916,300 | |||
Carrying value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value disclosure | $ 769,800 | $ 850,700 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 4,256 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Significant Other Observable Inputs (Level 2) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4,256 | |
Significant Unobservable Inputs (Level 3) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 76 | |
Fair Value, Recurring | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | $ 385 | 826 |
Fair Value, Recurring | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 9,262 | |
Fair Value, Recurring | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 5,185 | 6,512 |
Derivative liabilities | 4,572 | 601 |
Fair Value, Recurring | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 385 | 826 |
Fair Value, Recurring | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 120 | 7,230 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 76 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 385 | 826 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 385 | 826 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 9,262 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 5,185 | 6,512 |
Derivative liabilities | 4,572 | 601 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | $ 120 | $ 7,230 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Contingent Consideration Liability) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 7,230 |
Payment of contingent consideration | (7,110) |
Change in estimated fair value | 0 |
Ending balance | $ 120 |
Hedging Instruments (Narrative)
Hedging Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||||
Jun. 18, 2025 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Jun. 30, 2015 EUR (€) | |
Derivative [Line Items] | |||||||
Estimated net amount of gains expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | $ 800 | ||||||
General duration of foreign currency exchange contracts | 24 months | ||||||
Derivative, notional amount | $ 258,200 | $ 286,700 | |||||
Unrealized gain (loss) on Euro-denominated notes, net of tax | 4,525 | 6,404 | $ (7,378) | ||||
Unrealized gain (loss) on cross currency swaps, net of tax | 3,817 | 5,399 | $ (5,626) | ||||
Excluded component recognized as reduction of interest | $ 2,800 | $ 2,800 | |||||
Minimum | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 75% | ||||||
Maximum | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 85% | ||||||
Series C Senior Note | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € | € 88,900,000 | ||||||
Stated interest rate | 1.785% | ||||||
Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | € | € 90,000,000 | ||||||
Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | € | € 15,000,000 | ||||||
Forecast | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Proceeds from hedge | $ 104,500 | ||||||
Forecast | Designated as Hedging Instrument | Cross currency swaps | |||||||
Derivative [Line Items] | |||||||
Proceeds from hedge | $ 17,500 |
Hedging Instruments (Derivative
Hedging Instruments (Derivatives Designated in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Cost of revenue | $ 1,362,986 | $ 1,325,928 | $ 1,135,615 |
Foreign currency exchange contracts | Cost of revenue | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ 25,733 | $ (7,121) | $ 829 |
Hedging Instruments (Schedule O
Hedging Instruments (Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedge instruments on the balance sheet | $ 14,447 | $ 10,768 |
Gross amounts subject to master netting arrangements not offset on the balance sheet | (3,210) | (601) |
Net amount | 11,237 | 10,167 |
Total hedging instruments presented on the balance sheet | 99,347 | 101,312 |
Gross amounts subject to master netting arrangements not offset on the balance sheet | (3,210) | (601) |
Net amount | 96,137 | 100,711 |
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet | Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 94,775 | 100,711 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 4,572 | 601 |
Cash Flow Hedges | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedge instruments on the balance sheet | 5,185 | 6,512 |
Cash Flow Hedges | Foreign currency exchange contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 4,572 | 601 |
Cash Flow Hedges | Cross currency swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedge instruments on the balance sheet | 8,135 | 0 |
Cash Flow Hedges | Cross currency swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedge instruments on the balance sheet | $ 1,127 | $ 4,256 |
Repurchases of Common Stock (De
Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Shares of common stock repurchases authorized (in shares) | 73,000,000 | ||
Remaining shares available for repurchase under authorization (in shares) | 3,000,000 | ||
Shares repurchased in the open market (in shares) | 1,963,000 | 1,283,000 | 721,000 |
Shares acquired through employee surrenders for statutory tax withholding (in shares) | 21,000 | 29,000 | 58,000 |
Total shares repurchased (in shares) | 1,984,000 | 1,312,000 | 779,000 |
Cost of shares repurchased in the open market | $ 810,942 | $ 755,545 | $ 179,623 |
Cost of shares for employee surrenders | 10,606 | 15,562 | 20,603 |
Total cost of shares | $ 821,548 | $ 771,107 | $ 200,226 |
Average cost per share - open market repurchases (in USD per share) | $ 413.12 | $ 588.58 | $ 249.20 |
Average cost per share - employee surrenders (in USD per share) | 501.89 | 548.08 | 354.98 |
Average cost per share - total (in USD per share) | $ 414.06 | $ 587.70 | $ 257.08 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | $ 689,992 | $ 632,795 |
Balance end of period | 608,737 | 689,992 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (53,484) | (53,615) |
Other comprehensive (loss) income before reclassifications | (5,827) | (5,643) |
Amounts reclassified from accumulated other comprehensive income | (18,485) | 5,774 |
Balance end of period | (77,796) | (53,484) |
Unrealized (Loss) Gain on Investments, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (126) | (272) |
Other comprehensive (loss) income before reclassifications | (46) | 146 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | (172) | (126) |
Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax Foreign Currency Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 4,979 | (9,934) |
Other comprehensive (loss) income before reclassifications | 14,851 | 9,139 |
Amounts reclassified from accumulated other comprehensive income | (18,991) | 5,774 |
Balance end of period | 839 | 4,979 |
Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax | Euro-Denominated Notes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 422 | (5,982) |
Other comprehensive (loss) income before reclassifications | 4,525 | 6,404 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 4,947 | 422 |
Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax | Cross Currency Swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 3,240 | (2,159) |
Other comprehensive (loss) income before reclassifications | 3,817 | 5,399 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 7,057 | 3,240 |
Defined Benefit Plans, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 0 | 0 |
Other comprehensive (loss) income before reclassifications | (3,282) | 0 |
Amounts reclassified from accumulated other comprehensive income | 506 | 0 |
Balance end of period | (2,776) | 0 |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (61,999) | (35,268) |
Other comprehensive (loss) income before reclassifications | (25,692) | (26,731) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | $ (87,691) | $ (61,999) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of revenue | $ 1,362,986 | $ 1,325,928 | $ 1,135,615 |
Tax (expense) benefit | 180,883 | 157,810 | 79,854 |
Gains (losses), net of tax | 679,089 | 744,844 | 582,131 |
Foreign currency exchange contracts | Reclassification out of accumulated other comprehensive income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of revenue | 25,733 | (7,121) | 829 |
Tax (expense) benefit | (6,742) | 1,347 | (158) |
Gains (losses), net of tax | 18,991 | (5,774) | 671 |
Defined benefit plans | Reclassification out of accumulated other comprehensive income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of revenue | (605) | 0 | 0 |
Tax (expense) benefit | 99 | 0 | 0 |
Gains (losses), net of tax | $ (506) | $ 0 | $ 0 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||
Shares of preferred stock authorized (in shares) | 500,000 | |
Par value per share (in USD per share) | $ 1 | |
Preferred Stock outstanding (in shares) | 0 | 0 |
IDEXX Retirement and Incentiv_3
IDEXX Retirement and Incentive Savings Plan (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | Switzerland | |||
Retirement And Incentive Savings Plan [Line Items] | |||
Defined benefit plan, benefit obligation | $ 4,000,000 | ||
Defined benefit plan, plan assets, amount | 12,500,000 | ||
Pension expense | $ 1,500,000 | ||
401(k) Plan | |||
Retirement And Incentive Savings Plan [Line Items] | |||
Contribution match, maximum percent of participants' eligible compensation | 5% | 5% | 5% |
Employer contributions | $ 28,300,000 | $ 25,800,000 | $ 23,400,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |
IDEXX Retirement and Incentiv_4
IDEXX Retirement and Incentive Savings Plan (Schedule of Future Benefits Expected to be Paid (Details) - Pension Plan - Switzerland $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 875 |
2024 | 1,075 |
2025 | 974 |
2026 | 804 |
2027 | 1,085 |
2028 through 2032 | $ 5,354 |
Uncategorized Items - idxx-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |