Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

Note 14.     Segment Reporting 

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 diagnostic and information technology-based products and services for the veterinary market, which we refer to as the Companion Animal Group (“CAG”), water quality products (“Water”) and diagnostic products and services for livestock and poultry health and to ensure the quality and safety of milk and food, which we refer to as Livestock, Poultry and Dairy (“LPD”). Our Other operating segment combines and presents products for the human point-of-care medical diagnostics market with our pharmaceutical product line and our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments.

Certain costs are not allocated to our operating segments and are instead reported under the caption “Unallocated Amounts”. These costs include costs that do not align with one of our existing operating segments or are cost prohibitive to allocate, which primarily consist of our R&D function,regional or country expenses, certain foreign currency revaluation gains and losses on monetary balances in currencies other than our subsidiaries’ functional currency and unusual items. Corporate support function costs (such as information technology, facilities, human resources, finance and legal), health benefits and incentive compensation are charged to our business segments at pre-determined budgeted amounts or rates. Differences from these pre-determined budgeted amounts or rates are captured within Unallocated Amounts.

The following is a summary of segment performance for the three months ended March  31, 2017 and 2016(in thousands):

	For the Three Months Ended March 31,
		CAG	Water		LPD		Other		Unallocated Amounts		Consolidated Total
2017
Revenue	$	403,227	$	25,077	$	29,317	$	4,400	$	-	$	462,021
Income (loss) from operations	$	79,855	$	10,263	$	3,802	$	393	$	(2,070)	$	92,243
Interest expense, net												(7,506)
Income before provision for income taxes												84,737
Provision for income taxes												15,679
Net income												69,058
Less: Net income attributable to noncontrolling interest												39
Net income attributable to IDEXX Laboratories, Inc. stockholders											$	69,019
2016
Revenue	$	357,639	$	23,552	$	30,856	$	5,503	$	-	$	417,550
Income (loss) from operations	$	61,378	$	9,679	$	4,570	$	(837)	$	(997)	$	73,793
Interest expense, net												(7,484)
Income before provision for income taxes												66,309
Provision for income taxes												20,284
Net income												46,025
Less: Net income attributable to noncontrolling interest												6
Net income attributable to IDEXX  Laboratories, Inc. stockholders											$	46,019

The following is a summary of revenue by product and service category for the three months ended March  31, 2017 and 2016  (in thousands): 

	For the Three Months Ended
	March 31,
		2017		2016
CAG segment revenue:
CAG Diagnostics recurring revenue:	$	346,680	$	305,841
IDEXX VetLab consumables		123,553		107,969
Rapid assay products		47,895		43,086
Reference laboratory diagnostic and consulting services		159,069		140,708
CAG Diagnostics service and accessories		16,163		14,078
CAG Diagnostics capital - instruments		26,183		22,643
Veterinary software, services and diagnostic imaging systems		30,364		29,155
CAG segment revenue		403,227		357,639
Water segment revenue		25,077		23,552
LPD segment revenue		29,317		30,856
Other segment revenue		4,400		5,503
Total revenue	$	462,021	$	417,550