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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
We operate primarily through three business segments, which are our reportable 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 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”) in assessing performance. The CODM, our president and Chief Executive Officer, evaluates the performance of operating segments based on revenues and gross profit. Our CODM reviews budget and actual results of the operating segments and decides how to allocate resources to meet our strategic priorities, and also meets with operating segment leaders on a periodic basis to determine allocation of resources.

The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. Intersegment revenues, which are not included in the tables below, were not material for the years ended December 31, 2024, 2023, and 2022. Assets are not allocated to segments for internal reporting purposes and are not included in the review performed by the CODM for purposes of assessing segment performance and allocation of resources. Certain corporate expenses are allocated to the segments, including depreciation and amortization. Foreign currency transaction gains and losses for all operating segments are reported within our Other operating segment, and are reconciled in the table below.
    
The following tables are a summary of reportable segment performance with our Other operating segment to reconcile to the total consolidated for the years ended December 31, 2024, 2023, and 2022:
(in thousands)For the Years Ended December 31,
CAGWaterLPD
Total
2024   
Total revenues from reportable segments
$3,574,044 $185,112 $122,060 $3,881,216 
Reconciliation of revenue
Other revenues
16,288 
Total consolidated revenue
3,897,504 
Cost of revenue
1,394,864 55,101 59,500 
Segment gross profit$2,179,180 $130,011 $62,560 $2,371,751 
Reconciliation of operating profit (segment profit)
Segment gross profit
$2,371,751 
Segment operating expenses
(1,242,169)
Other operating profit (excluding unallocated amounts)
3,282 
Unallocated amounts
Foreign currency transaction losses
(4,527)
Interest expense
(31,205)
Interest income
12,699 
Income before provision for income taxes$1,109,831 

(in thousands)For the Years Ended December 31,
CAGWaterLPD
Total
2023
Total revenues from reportable segments
$3,352,356 $168,149 $121,659 $3,642,164 
Reconciliation of revenue
Other revenues
18,789 
Total consolidated revenue
3,660,953 
Cost of revenue
1,349,930 52,148 56,219 
Segment gross profit$2,002,426 $116,001 $65,440 $2,183,867 
Reconciliation of operating profit (segment profit)
Segment gross profit
$2,183,867 
Segment operating expenses
(1,086,812)
Other operating profit (excluding unallocated amounts)
1,151 
Unallocated amounts
Foreign currency transaction losses(1,078)
Interest expense
(41,581)
Interest income
5,629 
Income before provision for income taxes$1,061,176 
(in thousands)For the Years Ended December 31,
CAGWaterLPD
 Total
2022
Total revenues from reportable segments
$3,058,793 $155,720 $122,607 $3,337,120 
Reconciliation of revenue
Other revenues
30,204 
Total consolidated revenue
3,367,324 
Cost of revenue
1,252,216 45,861 49,606 
Segment gross profit$1,806,577 $109,859 $73,001 $1,989,437 
Reconciliation of operating profit (segment profit)
Segment gross profit
$1,989,437 
Segment operating expenses
(1,096,160)
Other operating profit (excluding unallocated amounts)
8,896 
Unallocated amounts
Foreign currency transaction losses
(3,408)
Interest expense
(39,858)
Interest income
1,065 
Income before provision for income taxes$859,972 

Refer to “Note 3. Revenue” for a summary of disaggregated revenue by segment and by major product and service category for the years ended December 31, 2024, 2023, and 2022.    

(in thousands)For the Years Ended December 31,
CAGWaterLPDOtherConsolidated Total
Depreciation and amortization
2024
$116,278 $4,734 $3,802 $5,122 $129,936 
2023
$103,554 $4,117 $3,657 $3,580 $114,908 
2022
$101,254 $3,020 $3,797 $3,829 $111,900 
Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows:
(in thousands)
December 31, 2024December 31, 2023
Americas  
United States$553,600 $531,735 
Brazil22,139 33,236 
Canada8,165 7,032 
583,904 572,003 
Europe, the Middle East and Africa
Germany52,652 56,115 
Switzerland14,722 14,129 
United Kingdom11,137 10,900 
Netherlands9,484 10,604 
France1,769 1,724 
Other3,058 2,907 
92,822 96,379 
Asia Pacific Region
Australia19,307 21,922 
Japan9,382 4,892 
Other7,708 6,981 
36,397 33,795 
Total$713,123 $702,177