Segment Reporting

9 Months Ended

Sep. 30, 2019

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 out-licensing arrangements. Assets are not allocated to segments for internal reporting purposes.

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 and country expenses, certain foreign currency revaluation and settlement 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 also captured within Unallocated Amounts.

The following is a summary of segment performance:



(in thousands)	For the Three Months Ended September 30,
	CAG		Water		LPD		Other		Unallocated Amounts			Consolidated Total
2019
Revenue	$	533,130	$	34,906	$	31,370	$	5,897	$	—		$	605,303

Income (loss) from operations	$	124,490	$	17,045	$	4,994	$	1,379	$	(8,106	)	$	139,802
Interest expense, net												(7,004		)
Income before provision for income taxes												132,798
Provision for income taxes												23,960
Net income												108,838
Less: Net income attributable to noncontrolling interest												1
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	108,837

2018
Revenue	$	478,097	$	33,108	$	29,420	$	4,823	$	—		$	545,448

Income (loss) from operations	$	102,241	$	15,874	$	4,007	$	443	$	(5,215	)	$	117,350
Interest expense, net												(8,311		)
Income before provision for income taxes												109,039
Provision for income taxes												15,825
Net income												93,214
Less: Net loss attributable to noncontrolling interest												(37		)
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	93,251



(in thousands)	For the Nine Months Ended September 30,
	CAG		Water		LPD		Other		Unallocated Amounts			Consolidated Total
2019
Revenue	$	1,589,397	$	99,980	$	95,980	$	16,105	$	—		$	1,801,462

Income (loss) from operations	$	384,095	$	47,394	$	17,637	$	3,657	$	(15,568	)	$	437,215
Interest expense, net												(23,503		)
Income before provision for income taxes												413,712
Provision for income taxes												76,464
Net income												337,248
Less: Net income attributable to noncontrolling interest												24
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	337,224

2018
Revenue	$	1,456,417	$	94,909	$	96,658	$	15,872	$	—		$	1,663,856

Income (loss) from operations	$	332,435	$	43,458	$	13,439	$	2,071	$	(15,415	)	$	375,988
Interest expense, net												(25,291		)
Income before provision for income taxes												350,697
Provision for income taxes												59,327
Net income												291,370
Less: Net loss attributable to noncontrolling interest												(23		)
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	291,393

See “Note 3. Revenue Recognition” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three and nine months ended September 30, 2019 and 2018.