Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

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 sector, 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 producer efficiency, which we refer to as Livestock, Poultry and Dairy (“LPD”). Although our LPD segment does not meet the quantitative thresholds to be reported as a separate segment, we believe it is important to disaggregate these revenues as a major product and service category within our Other reportable segment given its distinct markets, and therefore we have elected to report LPD as a reportable segment. Our Other operating segment combines and presents products and services for the human medical diagnostics sector with our out-licensing arrangements. Assets are not allocated to segments for internal reporting purposes.

The following is a summary of segment performance:

(in thousands)	For the Three Months Ended September 30,
	CAG		Water		LPD		Other		Consolidated Total
2022
Revenue	$	764,990	$	40,840	$	28,452	$	7,379	$	841,661
Income from operations	$	221,454	$	19,924	$	4,480	$	(1,030)	$	244,828
Interest expense, net									(10,645)
Income before provision for income taxes									234,183
Provision for income taxes									53,245
Net income									180,938
Less: Net income attributable to noncontrolling interest									—
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	180,938
2021
Revenue	$	732,495	$	38,143	$	29,126	$	10,657	$	810,421
Income from operations	$	201,947	$	17,599	$	3,600	$	2,816	$	225,962
Interest expense, net									(7,012)
Income before provision for income taxes									218,950
Provision for income taxes									43,772
Net income									175,178
Less: Net income attributable to noncontrolling interest									(57)
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	175,235

(in thousands)	For the Nine Months Ended September 30,
	CAG		Water		LPD		Other		Consolidated Total
2022
Revenue	$	2,310,261	$	116,406	$	89,211	$	22,878	$	2,538,756
Income from operations	$	601,105	$	54,498	$	14,447	$	2,188	$	672,238
Interest expense, net									(25,481)
Income before provision for income taxes									646,757
Provision for income taxes									139,875
Net income									506,882
Less: Net income attributable to noncontrolling interest									—
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	506,882
2021
Revenue	$	2,170,857	$	109,374	$	101,920	$	32,119	$	2,414,270
Income from operations	$	649,892	$	49,599	$	24,276	$	9,070	$	732,837
Interest expense, net									(22,066)
Income before provision for income taxes									710,771
Provision for income taxes									128,698
Net income									582,073
Less: Net income attributable to noncontrolling interest									(1)
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	582,074

Refer to “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, 2022 and 2021.