Note 15. 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 improve dairy efficiency, 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.

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, 2018 and 2017 (in thousands):


	For the Three Months Ended March 31,
		CAG	Water		LPD		Other		Unallocated Amounts		Consolidated Total
2018
Revenue	$	470,833	$	29,143	$	32,240	$	5,440	$	-	$	537,656

Income (loss) from operations	$	100,398	$	12,462	$	2,961	$	498	$	(3,275)	$	113,044
Interest expense, net												(8,695)
Income before provision for income taxes												104,349
Provision for income taxes												14,873
Net income												89,476
Less: Net income attributable to noncontrolling interest												25
Net income attributable to IDEXX Laboratories, Inc. stockholders											$	89,451

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

See “Note 3. Revenue Recognition” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three months ended March 31, 2018 and 2017.