Segment Reporting

9 Months Ended

Sep. 30, 2023

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.

The following is a summary of segment performance:

(in thousands)	For the Three Months Ended September 30,
	CAG		Water		LPD		Other		Consolidated Total
2023
Revenue	$	837,160	$	44,450	$	29,747	$	4,170	$	915,527
Income from operations	$	253,358	$	20,328	$	2,405	$	(808)	$	275,283
Interest expense, net									(7,392)
Income before provision for income taxes									267,891
Provision for income taxes									55,660
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	212,231
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 attributable to IDEXX Laboratories, Inc. stockholders									$	180,938

(in thousands)	For the Nine Months Ended September 30,
	CAG		Water		LPD		Other		Consolidated Total
2023
Revenue	$	2,531,091	$	126,362	$	88,866	$	13,033	$	2,759,352
Income from operations	$	790,617	$	57,119	$	5,664	$	(1,574)	$	851,826
Interest expense, net									(30,318)
Income before provision for income taxes									821,508
Provision for income taxes									170,987
Net income attributable to IDEXX Laboratories, Inc. stockholders									$	650,521
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 attributable to IDEXX Laboratories, Inc. stockholders									$	506,882

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, 2023 and 2022.