Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 06, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | IDEXX LABORATORIES INC /DE | ||
Entity Central Index Key | 874716 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 47,125,601 | ||
Entity Public Float | $6,663,805,564 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash and cash equivalents | $322,536,000 | $279,058,000 |
Accounts receivable, net of reserves of $4,306 in 2014 and $3,533 in 2013 | 152,380,000 | 158,038,000 |
Inventories | 160,342,000 | 133,427,000 |
Deferred income tax assets | 37,689,000 | 33,226,000 |
Other current assets | 86,451,000 | 48,957,000 |
Total current assets | 759,398,000 | 652,706,000 |
Long-Term Assets: | ||
Property and equipment, net | 303,587,000 | 281,214,000 |
Goodwill | 184,450,000 | 180,521,000 |
Intangible assets, net | 65,122,000 | 58,844,000 |
Other long-term assets, net | 71,654,000 | 57,231,000 |
Total long-term assets | 624,813,000 | 577,810,000 |
TOTAL ASSETS | 1,384,211,000 | 1,230,516,000 |
Current Liabilities: | ||
Accounts payable | 44,743,000 | 29,941,000 |
Accrued liabilities | 195,351,000 | 148,919,000 |
Line of credit | 549,000,000 | 277,000,000 |
Current portion of long-term debt | 1,035,000 | |
Current portion of deferred revenue | 31,812,000 | 21,458,000 |
Total current liabilities | 820,906,000 | 478,353,000 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 41,688,000 | 33,948,000 |
Long-term debt, net of current portion | 350,000,000 | 150,359,000 |
Long-term deferred revenue, net of current portion | 21,665,000 | 18,427,000 |
Other long-term liabilities | 32,363,000 | 31,215,000 |
Total long-term liabilities | 445,716,000 | 233,949,000 |
Total liabilities | 1,266,622,000 | 712,302,000 |
Commitments and Contingencies (Note 13) | ||
Stockholders' Equity: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 101,947 and 101,188 shares in 2014 and 2013, respectively | 10,195,000 | 10,119,000 |
Additional paid-in capital | 888,293,000 | 825,320,000 |
Deferred stock units: Outstanding: 118 and 122 units in 2014 and 2013, respectively | 5,066,000 | 5,110,000 |
Retained earnings | 1,675,299,000 | 1,493,393,000 |
Accumulated other comprehensive (loss) income | -8,071,000 | 13,622,000 |
Treasury stock, at cost: 54,574 and 49,649 shares in 2014 and 2013, respectively | -2,453,266,000 | -1,829,378,000 |
Total IDEXX Laboratories, Inc. stockholders' equity | 117,516,000 | 518,186,000 |
Noncontrolling interest | 73,000 | 28,000 |
Total stockholders' equity | 117,589,000 | 518,214,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,384,211,000 | $1,230,516,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, reserves | $4,306 | $3,533 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 101,947,000 | 101,188,000 |
Deferred stock units, outstanding | 118,000 | 122,000 |
Treasury stock, shares | 54,574,000 | 49,649,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Product revenue | $899,412 | $854,531 | $816,992 |
Service revenue | 586,395 | 522,527 | 476,346 |
Total revenue | 1,485,807 | 1,377,058 | 1,293,338 |
Cost of Revenue: | |||
Cost of product revenue | 335,046 | 318,685 | 305,910 |
Cost of service revenue | 334,645 | 302,255 | 288,280 |
Total cost of revenue | 669,691 | 620,940 | 594,190 |
Gross profit | 816,116 | 756,118 | 699,148 |
Expenses: | |||
Sales and marketing | 283,708 | 243,492 | 216,962 |
General and administrative | 173,890 | 157,861 | 137,609 |
Research and development | 98,263 | 88,003 | 82,014 |
Income from operations | 260,255 | 266,762 | 262,563 |
Interest expense | -15,429 | -5,386 | -3,848 |
Interest income | 1,729 | 1,885 | 1,902 |
Income before provision for income taxes | 246,555 | 263,261 | 260,617 |
Provision for income taxes | 64,604 | 75,467 | 82,330 |
Net income | 181,951 | 187,794 | 178,287 |
Less: Net income (loss) attributable to noncontrolling interest | 45 | -6 | 20 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $181,906 | $187,800 | $178,267 |
Earnings per Share: | |||
Basic | $3.63 | $3.53 | $3.24 |
Diluted | $3.58 | $3.48 | $3.17 |
Weighted Average Shares Outstanding: | |||
Basic | 50,047 | 53,159 | 54,985 |
Diluted | 50,751 | 53,985 | 56,155 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $181,951 | $187,794 | $178,287 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | -29,126 | -4,502 | 5,671 |
Unrealized (loss) gain on investments, net of tax (benefit) expense of ($63), $165 and $68 in 2014, 2013, and 2012, respectively | -107 | 279 | 116 |
Unrealized gain (loss) on derivative instruments: | |||
Unrealized gain (loss), net of tax expense (benefit) of $4,073, $1,555 and ($921) in 2014, 2013 and 2012, respectively | 9,542 | 3,781 | -1,651 |
Less: reclassification adjustment for gains included in net income, net of tax expense of $756, $679 and $1,623 in 2014, 2013 and 2012, respectively | -2,002 | -1,890 | -3,625 |
Unrealized gain (loss) on derivative instruments | 7,540 | 1,891 | -5,276 |
Other comprehensive (loss) income, net of tax | -21,693 | -2,332 | 511 |
Total comprehensive income | 160,258 | 185,462 | 178,798 |
Less: comprehensive income (loss) attributable to noncontrolling interest | 45 | -6 | 20 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $160,213 | $185,468 | $178,778 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Unrealized (loss) gain on investments, tax (benefit) expense | ($63) | $165 | $68 |
Unrealized gain (loss), tax (benefit) expense | 4,073 | 1,555 | -921 |
Reclassification adjustment for gains included in net income, tax expense | $756 | $679 | $1,623 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Deferred Stock Units [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total IDEXX Laboratories, Inc.Stockholders' Equity [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||||
Balance, value at Dec. 31, 2011 | $9,923 | $702,575 | $4,688 | $1,127,326 | $15,443 | ($1,320,376) | $539,579 | $14 | $539,593 |
Balance, shares at Dec. 31, 2011 | 99,229,000 | ||||||||
Comprehensive Income: | |||||||||
Net income (loss) | 178,267 | 178,267 | 20 | 178,287 | |||||
Other comprehensive (loss) income, net of tax | 511 | 511 | 511 | ||||||
Total comprehensive income | 178,778 | 20 | 178,798 | ||||||
Repurchases of common stock | -136,808 | -136,808 | -136,808 | ||||||
Common stock issued under stock plans, including excess tax benefit, shares | 931,000 | ||||||||
Common stock issued under stock plans, including excess tax benefit, value | 93 | 38,943 | -365 | 38,671 | 38,671 | ||||
Issuance of deferred stock units | 142 | 142 | 142 | ||||||
Vesting of deferred stock units | -165 | 165 | |||||||
Share-based compensation cost recognized | 15,861 | 15,861 | 15,861 | ||||||
Balance, value at Dec. 31, 2012 | 10,016 | 757,214 | 4,630 | 1,305,593 | 15,954 | -1,457,184 | 636,223 | 34 | 636,257 |
Balance, shares at Dec. 31, 2012 | 100,160,000 | ||||||||
Comprehensive Income: | |||||||||
Net income (loss) | 187,800 | 187,800 | -6 | 187,794 | |||||
Other comprehensive (loss) income, net of tax | -2,332 | -2,332 | -2,332 | ||||||
Total comprehensive income | 185,468 | -6 | 185,462 | ||||||
Repurchases of common stock | -372,194 | -372,194 | -372,194 | ||||||
Common stock issued under stock plans, including excess tax benefit, shares | 1,028,000 | ||||||||
Common stock issued under stock plans, including excess tax benefit, value | 103 | 51,861 | -38 | 51,926 | 51,926 | ||||
Issuance of deferred stock units | 189 | 189 | 189 | ||||||
Vesting of deferred stock units | -259 | 259 | |||||||
Share-based compensation cost recognized | 16,504 | 70 | 16,574 | 16,574 | |||||
Balance, value at Dec. 31, 2013 | 10,119 | 825,320 | 5,110 | 1,493,393 | 13,622 | -1,829,378 | 518,186 | 28 | 518,214 |
Balance, shares at Dec. 31, 2013 | 101,188,000 | 101,188,000 | |||||||
Comprehensive Income: | |||||||||
Net income (loss) | 181,906 | 181,906 | 45 | 181,951 | |||||
Other comprehensive (loss) income, net of tax | -21,693 | -21,693 | -21,693 | ||||||
Total comprehensive income | 160,213 | 45 | 160,258 | ||||||
Repurchases of common stock | -623,888 | -623,888 | -623,888 | ||||||
Common stock issued under stock plans, including excess tax benefit, shares | 759,000 | ||||||||
Common stock issued under stock plans, including excess tax benefit, value | 76 | 45,162 | 45,238 | 45,238 | |||||
Issuance of deferred stock units | -332 | -332 | -332 | ||||||
Vesting of deferred stock units | -218 | 218 | |||||||
Share-based compensation cost recognized | 18,029 | 70 | 18,099 | 18,099 | |||||
Balance, value at Dec. 31, 2014 | $10,195 | $888,293 | $5,066 | $1,675,299 | ($8,071) | ($2,453,266) | $117,516 | $73 | $117,589 |
Balance, shares at Dec. 31, 2014 | 101,947,000 | 101,947,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Cash Flows from Operating Activities: | |||||
Net income | $181,951 | $187,794 | $178,287 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 58,888 | 54,596 | 52,408 | ||
Gain on disposition of pharmaceutical product lines | -3,500 | ||||
Provision for uncollectible accounts | 2,035 | 1,601 | 1,108 | ||
Provision for (benefit of) deferred income taxes | 830 | 2,073 | -1,970 | ||
Share-based compensation expense | 18,099 | 16,539 | 15,952 | ||
Other | -160 | 614 | 410 | ||
Tax benefit from share-based compensation arrangements | -16,078 | -14,158 | -14,676 | ||
Changes in assets and liabilities: | |||||
Accounts receivable | -3,626 | -15,946 | 3,487 | ||
Inventories | -38,310 | -1,347 | -17,208 | ||
Other assets | -25,073 | -4,325 | 3,933 | ||
Accounts payable | 6,703 | -4,399 | -2,898 | ||
Accrued liabilities | 36,392 | 16,512 | 187 | ||
Deferred revenue | 14,195 | 6,442 | 6,888 | ||
Net cash provided by operating activities | 235,846 | 245,996 | 222,408 | ||
Cash Flows from Investing Activities: | |||||
Purchases of property and equipment | -60,523 | [1] | -77,612 | [1] | -57,618 |
Proceeds from disposition of pharmaceutical product lines | 3,500 | 3,000 | |||
Proceeds from sale of equity investment | 5,400 | ||||
Proceeds from sale of property and equipment | 45 | ||||
Acquisitions of intangible assets | -175 | -1,024 | -900 | ||
Acquisitions of a business, net of cash acquired | -25,115 | -10,923 | -2,658 | ||
Net cash used by investing activities | -80,413 | -86,059 | -58,131 | ||
Cash Flows from Financing Activities: | |||||
Borrowings (payments) on revolving credit facilities, net | 272,000 | 65,000 | -31,000 | ||
Issuance of senior notes | 200,000 | 150,000 | |||
Debt issue costs | -1,406 | -976 | |||
Payment of notes payable | -1,394 | -1,107 | -917 | ||
Repurchases of common stock | -618,158 | -367,761 | -132,268 | ||
Proceeds from exercises of stock options and employee stock purchase plans | 29,442 | 38,235 | 24,166 | ||
Tax benefit from share-based compensation arrangements | 16,078 | 14,158 | 14,676 | ||
Net cash used by financing activities | -103,438 | -102,451 | -125,343 | ||
Net effect of changes in exchange rates on cash | -8,517 | -2,414 | 1,157 | ||
Net increase in cash and cash equivalents | 43,478 | 55,072 | 40,091 | ||
Cash and cash equivalents at beginning of period | 279,058 | 223,986 | 183,895 | ||
Cash and cash equivalents at end of period | 322,536 | 279,058 | 223,986 | ||
Supplemental Disclosures of Cash Flow Information | |||||
Interest paid | 12,284 | 5,024 | 3,944 | ||
Income taxes paid | 60,239 | 67,721 | 68,921 | ||
Supplemental Disclosure of Non-Cash Information: | |||||
Market value of common shares received from employees in connection with share-based compensation - see Note 17 | 5,809 | 4,548 | 4,662 | ||
Receivable on disposition of pharmaceutical product lines | $3,500 | ||||
[1] | Expenditures for long-lived assets exclude expenditures for intangible assets. See Note 3 for information regarding acquisitions of intangible assets during the years ended December 31, 2014, 2013 and 2012. |
Nature_Of_Business_Basis_Of_Pr
Nature Of Business, Basis Of Presentation And Principles Of Consolidation | 12 Months Ended |
Dec. 31, 2014 | |
Nature Of Business, Basis Of Presentation And Principles Of Consolidation [Abstract] | |
Nature Of Business, Basis Of Presentation And Principles Of Consolidation | NOTE 1. NATURE OF BUSINESS, BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION |
The accompanying consolidated financial statements of IDEXX Laboratories, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with the requirements of Regulation S-X. | |
These statements include the accounts of IDEXX Laboratories, Inc. and our wholly-owned and majority-owned subsidiaries (“IDEXX,” the “Company,” “we” or “our”). We do not have any variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. | |
We develop, manufacture and distribute products and provide services for the veterinary, bioresearch, water, livestock, poultry and dairy markets. We also sell a line of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market. Our principal line of business, which we refer to as our Companion Animal Group (“CAG”) operating segment, provides diagnostic capabilities and information management solutions for the veterinary market as well as and biological materials testing and services for the bioresearch market. Our principal markets for these products and services are the United States (“U.S.”) and Europe, but we also sell to customers and distributors in many other countries around the world. Our Water operating segment provides innovative testing solutions for the quality and safety of water in our principal markets the U.S. and Europe, but we also sell to customers in many other countries around the world. Our Livestock, Poultry and Dairy (“LPD”) operating segment provides diagnostic tests and related instrumentation that are used to manage the health status of livestock and poultry, to improve bovine reproductive efficiency, and to ensure the quality and safety of milk and food. Our principal market for these tests and products is Europe but we also sell to customers in many other countries around the world. We also operate a smaller operating segment that comprises products for the human point-of-care medical diagnostics market (“OPTI Medical”). Financial information about the OPTI Medical operating segment is combined and presented with our pharmaceutical product line and out-licensing arrangements remaining from our pharmaceutical business in an “Other” category because they do not meet the quantitative or qualitative thresholds for reportable segments. See Note 14 for additional information regarding our reportable operating segments, products and services and geographical areas. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform with the current year presentation. Reclassifications had no material impact on previously reported results of operations, financial position or cash flows. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary Of Significant Accounting Policies [Abstract] | ||||
Summary Of Significant Accounting Policies | ||||
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
(a) Estimates | ||||
The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, product returns, customer programs and multiple element arrangements; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | ||||
(b)Cash and Cash Equivalents | ||||
We consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits and money market funds. | ||||
As of December 31, 2013, our reported cash and cash equivalents balances contained restricted cash in the aggregate of $0.7 million securing various obligations. There is no restricted cash on our consolidated balance sheet for the year ended December 31, 2014. | ||||
(c)Inventories | ||||
Inventories, which are stated at the lower of cost (first-in, first-out) or market, include material, conversion costs and inbound freight charges. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. | ||||
(d)Property and Equipment | ||||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We provide for depreciation and amortization primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: | ||||
Asset Classification | Estimated Useful Life | |||
Land improvements | 15 to 20 years | |||
Buildings and improvements | 10 to 40 years | |||
Shorter of remaining lease term or useful life of improvements | ||||
Leasehold improvements | ||||
Machinery and equipment | 3 to 8 years | |||
Office furniture and equipment | 3 to 7 years | |||
Computer hardware and software | 3 to 7 years | |||
We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2014 and 2013 was not material. | ||||
We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs are general and administrative in nature and relate primarily to the determination of performance requirements, data conversion and training. Software developed to deliver hosted services to our customers has been designated as internal use. See Note 6 for further information regarding costs capitalized in connection with software developed for internal use. | ||||
(e)Goodwill and Other Intangible Assets | ||||
A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When material, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. We assess contingent consideration to determine if it is part of the business combination or if it should be accounted for separately from the business combination in the postcombination period. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in fair value of contingent consideration are recognized in earnings. | ||||
We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: | ||||
Asset Classification | Estimated Useful Life | |||
Patents | 13 to 15 years | |||
Product rights(1) | 5 to 15 years | |||
Customer-related intangible assets(2) | 5 to 17 years | |||
Noncompete agreements | 3 to 7 years | |||
-1 | Product rights comprise certain technologies, intellectual property, licenses and trade names acquired from third parties. | |||
-2 | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | |||
We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would then perform step one of the two-step impairment test; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the two-step impairment test. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. | ||||
In the fourth quarter of 2014, we elected to bypass the qualitative approach and instead proceeded directly to step one of the two-step impairment test to assess the fair value of all of our reporting units. As part of step one of the two-step impairment test, we estimate the fair values of applicable reporting units using an income approach based on discounted forecasted cash flows. We make significant assumptions about the extent and timing of future cash flows, growth rates and discount rates. Model assumptions are based on our projections and best estimates, using appropriate and customary market participant assumptions. In addition, we make certain assumptions in allocating shared assets and liabilities to individual reporting units in determining the carrying value of each reporting unit. Changes in forecasted cash flows or the discount rate would affect the estimated fair values of our reporting units and could result in a goodwill impairment charge in a future period. | ||||
No goodwill impairments were identified during the years ended December 31, 2014, 2013 or 2012. | ||||
We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment to write the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate. No material impairments of our intangible assets were identified during the years ended December 31, 2014, 2013 and 2012. See Note 8 for further information regarding our goodwill and intangible assets. | ||||
(f)Warranty Reserves | ||||
We provide a standard twelve month warranty on all instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environment, historical costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. | ||||
(g)Income Taxes | ||||
The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. While we consider future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. | ||||
We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. | ||||
Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. See Note 11 for additional information regarding income taxes. | ||||
(h)Taxes Remitted to Governmental Authorities by IDEXX on Behalf of Customer | ||||
We calculate, collect from our customers, and remit to governmental authorities sales, value added and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. | ||||
(i)Revenue Recognition | ||||
We recognize revenue when four criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue-generating transactions generally fall into one of the following categories of revenue recognition: | ||||
· | Revenue from substantially all U.S. distributors is recognized upon delivery to the distributor because title and risk of loss remains with IDEXX until the product is delivered. Effective December 31, 2014, we did not renew our existing contracts with our key U.S. distribution partners and transitioned to an all-direct sales strategy for our rapid assay test kits and instrument consumables. We recognize revenue for the remainder of our customers, including most distributors outside of the U.S., when the product is delivered to the customer, except as noted below. | |||
· | We recognize revenue from the sales of instruments, non-cancelable software licenses and hardware systems upon installation and the customer’s acceptance of the instrument or system as we have no significant further obligations after this point in time. | |||
· | We recognize service revenue at the time the service is performed. | |||
· | We recognize revenue associated with extended maintenance agreements (“EMAs”) over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as current or long-term deferred revenue based on the time from the balance sheet date to the future date of revenue recognition. | |||
· | We recognize revenue on certain instrument systems under rental programs over the life of the rental agreement using the straight-line method. Amounts collected in advance of revenue recognition are recorded as current or long-term deferred revenue based on the time from the balance sheet date to the future date of revenue recognition. | |||
· | We recognize revenue on practice management systems sales, where the system includes software that is considered more than incidental, either by allocating the revenue to each element of the sale based on relative fair values of the elements, including post-contract support when fair value for all elements is available, or by use of the residual method when only the fair value of the post-contract support is available. We recognize revenue for the system upon installation and customer acceptance and recognize revenue equal to the fair value of the post-contract support over the support period. | |||
· | Shipping costs reimbursed by the customer are included in revenue. These same costs are also included in cost of product revenue. | |||
Multiple Element Arrangements (“MEAs”). Arrangements to sell products to customers frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of the instruments from the IDEXX VetLab suite of analyzers, digital imaging systems or practice management software, combined with one or more of the following products: EMAs, consumables and reference laboratory diagnostic and consulting services. Practice management software is frequently sold with post-contract customer support and implementation services. Delivery of the various products or performance of services within the arrangement may or may not coincide. Delivery of our IDEXX VetLab instruments, digital imaging systems, and practice management software generally occurs at the onset of the arrangement. EMAs, consumables, and reference laboratory diagnostic and consulting services typically are delivered over future periods, generally one to six years. In certain arrangements, revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of products and services in the future. | ||||
We allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition, as discussed above, have been met for each element. If available, we establish the selling price of each element based on vendor-specific objective evidence (“VSOE”), which represents the price charged for a deliverable when it is sold separately. We use third-party evidence (“TPE”) if VSOE is not available or best estimate of selling price if neither VSOE nor TPE is available. When these arrangements include a separately-priced EMA, we recognize revenue related to the EMA at the stated contractual price on a straight-line basis over the life of the agreement to the extent the separately stated price is substantive. If there is no stated contractual price for an EMA, or the separately stated price is not substantive, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition, as discussed above, have been met for each element. | ||||
When arrangements within the scope of software revenue recognition guidance include multiple elements, we allocate revenue to each element based on relative fair value, when VSOE exists for all elements, or by using the residual method when there is VSOE for the undelivered elements but no such evidence for the delivered elements. Under the residual method, the fair value of the undelivered elements is deferred and the residual revenue is allocated to the delivered elements. Revenue is recognized on any delivered elements when the four criteria for revenue recognition have been met for each element. If VSOE does not exist for the undelivered element, all revenue from the arrangement is deferred until the earlier of the point at which such sufficient VSOE does exist or all elements of the arrangement have been delivered. We determine fair value based on amounts charged separately for the delivered and undelivered elements to similar customers in standalone sales of the specific elements. | ||||
Certain arrangements with customers include discounts on future sales of products and services. We apply judgment in determining whether future discounts are significant and incremental. When the future discount offered is not considered significant and incremental, we do not account for the discount as an element of the original arrangement. If the future discount is significant and incremental, we recognize that discount as an element of the original arrangement and allocate the discount to the other elements of the arrangement based on relative selling price. To determine whether a discount is significant and incremental, we look to the discount provided in comparison to standalone sales of the same product or service to similar customers, the level of discount provided on other elements in the arrangement, and the significance of the discount to the overall arrangement. If the discount in the MEA approximates the discount typically provided in standalone sales, that discount is not considered incremental. | ||||
Customer Programs. We record reductions to revenue related to customer marketing and incentive programs, which include end-user rebates and other volume-based incentives. Incentives may be provided in the form of IDEXX Points, credits or cash and are earned by end users upon achieving defined volume purchases or utilization levels or upon entering an agreement to purchase products or services in future periods. Our most significant customer programs are categorized as follows: | ||||
Customer Loyalty Programs. Our customer loyalty programs offer customers the opportunity to earn incentives on a variety of IDEXX products and services as those products and services are purchased and utilized. Revenue reductions related to customer loyalty programs are recorded based on the actual issuance of incentives, incentives earned but not yet issued and estimates of incentives to be earned in the future. | ||||
Up-Front Customer Loyalty Programs. Our up-front loyalty programs provide incentives to customers in the form of cash payments or IDEXX Points upon entering multi-year agreements to purchase annual minimum amounts of future products or services. If a customer breaches its agreement, it is required to refund a prorated portion of the up-front cash or IDEXX Points, among other things. These incentives are considered to be customer acquisition costs and are capitalized and recognized as a reduction to revenue over the term of the customer agreement. If these up-front incentives are subsequently utilized to purchase IDEXX VetLab instruments, digital imaging systems or Cornerstone practice management systems, product revenue and cost is deferred and recognized over the term of the customer agreement as products and services are provided to the customer. We monitor customer purchases over the term of their agreement to assess the realizability of our capitalized customer acquisition costs. For the years ended December 31, 2014, 2013 and 2012, impairments of customer acquisition costs were immaterial. | ||||
IDEXX Instrument Marketing Programs. Our instrument marketing programs require the customer to enroll at the time of instrument purchase and offer customers the opportunity to earn incentives in future periods based on the volume of the products they purchase and utilize over the term of the program. These arrangements are considered MEAs in accordance with our revenue recognition policy stated above. Revenue reductions related to instrument marketing programs are recorded based on an estimate of customer purchase and utilization levels and the incentive the customer will earn over the term of the program. Our estimates are based on historical experience and the specific terms and conditions of the marketing program and require us to apply judgment to approximate future product purchases and utilization. Differences between our estimates and actual incentives earned are accounted for as a change in estimate. These differences were not material for the years ended December 31, 2014, 2013 and 2012. | ||||
Reagent Rental Programs. Our reagent rental programs provide our customers the right to use our instruments in consideration for multi-year agreements to purchase annual minimum amounts of consumables. No instrument revenue is recognized at the time of instrument installation. We recognize a portion of the revenue allocated to the instrument concurrent with the future sale of consumables. We determine the amount of revenue allocated from the consumable to the instrument based on relative selling prices and determine the rate of instrument revenue recognition in proportion to the customer’s minimum volume commitment. The cost of the instrument is charged to cost of product revenue on a straight-line basis over the term of the minimum purchase agreement. | ||||
IDEXX Points may be applied against the purchase price of IDEXX products and services purchased in the future or applied to trade receivables due to us. IDEXX Points that have not yet been used by customers are classified as a liability until use or expiration occurs. We estimate the amount of IDEXX Points expected to expire, or breakage, based on historical expirations and we recognize the estimated benefit of breakage in proportion to actual redemptions of IDEXX Points by customers. On November 30 of each year, unused IDEXX Points earned before January 1 of the prior year generally expire and any variance from the breakage estimate is accounted for as a change in estimate. This variance was not material for the years ended December 31, 2014, 2013 and 2012. | ||||
Future market conditions and changes in product offerings may cause us to change marketing strategies to increase or decrease customer incentive offerings, possibly resulting in incremental reductions of revenue in future periods as compared to reductions in the current or prior periods. Additionally, certain customer programs require us to estimate, based on historical experience, and apply judgment to approximate the number of customers who will actually redeem the incentive. In determining estimated revenue reductions we utilize data supplied from distributors and collected directly from end users, which includes the volume of qualifying products purchased and the number of qualifying tests run as reported to us by end users via IDEXX SmartService, a secure Internet link that enables us to extract data and provide diagnostic service and support for certain IDEXX VetLab instruments through remote access. Differences between estimated and actual customer participation in programs may impact the amount and timing of revenue recognition. | ||||
Doubtful Accounts Receivable. We recognize revenue when collection from the customer is reasonably assured. We maintain allowances for doubtful accounts for potentially uncollectible receivables. We base our estimates on a detailed analysis of specific customer situations and a percentage of our accounts receivable by aging category. If the financial condition of our customers were to deteriorate, resulting in their inability to make payments, additional allowances might be required. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. | ||||
(j)Research and Development Costs | ||||
Research and development costs, which consist of salaries, employee benefits, materials and external consulting and product development costs, are expensed as incurred. We evaluate our software research and development costs for capitalization after the technological feasibility of software and products containing software has been established. No costs were capitalized during the years ended December 31, 2014, 2013 and 2012. | ||||
(k)Advertising Costs | ||||
Advertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $1.2 million, $1.5 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
(l)Legal Costs | ||||
Legal costs are considered period costs and accordingly are expensed in the year services are provided. | ||||
(m)Share-Based Compensation | ||||
We provide for various forms of share-based compensation awards to our employees and non-employee directors. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. Share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. See Note 4 for additional information regarding share-based compensation. | ||||
(n)Self-Insurance Accruals | ||||
We self-insure costs associated with workers’ compensation and health and general welfare claims incurred by our U.S. employees up to certain limits. The insurance company provides insurance for claims above these limits. Claim liabilities are recorded for estimates of the loss that we will ultimately incur on reported claims, as well as estimates of claims that have been incurred but not yet reported. Such liabilities are based on individual coverage, the average time from when a claim is incurred to the time it is paid and judgments about the present and expected levels of claim frequency and severity. Estimated claim liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Estimated claim liabilities are included in accrued liabilities in the accompanying consolidated balance sheets. | ||||
(o)Earnings per Share | ||||
Basic earnings per share is computed by dividing net income attributable to IDEXX Laboratories, Inc. stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options, the total unrecognized compensation expense for unvested share-based compensation awards and the excess tax benefits resulting from share-based compensation tax deductions in excess of the related expense recognized for financial reporting purposes, would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed and issuance is not contingent. See Note 4 for additional information regarding deferred stock units. | ||||
(p)Foreign Currency | ||||
The functional currency of all but two of our subsidiaries is their local currency. Assets and liabilities of these foreign subsidiaries are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”). | ||||
Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses. We recognized aggregate foreign currency losses of $2.0 million, less than $0.1 million and $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
(q)Derivative Instruments and Hedging | ||||
We recognize all derivative instruments, including our foreign currency exchange contracts and interest rate swap agreements, on the balance sheet at fair value at the balance sheet date. Derivative instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. If a derivative instrument qualifies for hedge accounting, changes in the fair value of the derivative instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedge instrument is not effective in achieving offsetting changes in fair value. We de-designate derivative instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | ||||
We enter into master netting arrangements with the counterparties to our derivative transactions which permit outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the accompanying consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts and interest rate swaps are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. See Note 16 for additional information regarding our derivative and hedging instruments. | ||||
(r)Fair Value Measurements | ||||
U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. | ||||
The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis and certain financial assets and liabilities that are not measured at fair value in our consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: | ||||
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. | |||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||||
Our foreign currency exchange contracts and interest rate swap agreements are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative instruments using an income approach, based on prevailing market forward rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. We measure the fair value of our interest rate swaps classified as derivative instruments using an income approach, utilizing a discounted cash flow analysis based on the terms of the contract and the interest rate curve adjusted for counterparty risk. | ||||
The amount outstanding under our unsecured revolving credit facility, notes receivable and long-term debt are measured at carrying value in our accompanying consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our credit facility, notes receivable and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our credit facility and long-term debt are valued using Level 2 inputs. The estimated fair value of our credit facility approximates its carrying value. At December 31, 2014, the estimated fair value and carrying value of our long-term debt were $367.3 million and $350.0 million, respectively. As of December 31, 2013, the carrying value of our long-term debt approximated its fair value. During the year ended December 31, 2014, we disposed of notes receivable representing a strategic investment in a privately held company. As of December 31, 2013, these notes receivable had a carrying value that approximated their fair value of $5.1 million and were valued using Level 3 inputs. See Note 3 for further information regarding the disposition of the notes receivable during June 2014. | ||||
(s)Comprehensive Income | ||||
We report all changes in equity during a period, resulting from net income and transactions or other events and circumstances from non-owner sources, in a financial statement for the period in which they are recognized. We have chosen to retrospectively present comprehensive income, which encompasses net income, foreign currency translation adjustments and the difference between the cost and the fair market value of investments in debt and equity securities, forward currency exchange contracts and interest rate swap agreements, in the consolidated statements of comprehensive income. See Note 18 for information about the effects on net income of significant amounts reclassified out of each component of AOCI for the years ended December 31, 2014 and 2013. We consider the foreign currency cumulative translation adjustment to be permanently invested and, therefore, have not provided income taxes on those amounts. | ||||
(t)Concentrations of Risk | ||||
Financial Instruments. Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts and notes receivable and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. | ||||
Concentration of credit risk with respect to accounts receivable is limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable credit risk exposure is limited. We maintain an allowance for doubtful accounts, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. | ||||
To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with the counterparties to our derivative transactions and frequently monitor the credit worthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. | ||||
Inventory. If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell and certain components, raw materials and consumables used in or with our products are obtained from sole or single source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. | ||||
Customers. Our largest customers are our U.S. distributors of our products in the CAG segment. Our two largest CAG distributors are Henry Schein Animal Health Supply, LLC (“Henry Schein”) and MWI Veterinary Supply (“MWI”). Henry Schein accounted for 8% of our 2014 consolidated revenue and 9% of our 2013 and 2012 consolidated revenue, and 2% and 7% of our net accounts receivable at December 31, 2014 and 2013. MWI accounted for 8% of our 2014, 2013 and 2012 consolidated revenue, respectively, and 8% and 11% of our net accounts receivable at December 31, 2014 and 2013, respectively. Effective January 1, 2015, most U.S. distributors are no longer our customers as a result of our transition to an all-direct sales strategy in the U.S. | ||||
(u)New Accounting Pronouncements Not Yet Adopted | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment which will replace most of the existing revenue recognition guidance within U.S. GAAP. The core principle of this guidance is that an entity should recognize revenue for the transfer of goods or services to customers in an amount that it expects to be entitled to receive for those goods or services. In doing so, companies will be required to make certain judgments and estimates, including identifying contract performance obligations, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price among separate performance obligations. Additionally, the amendment requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, significant judgments reached in the application of the guidance and assets recognized from the costs to obtain or fulfill a contract. Effective for the Company beginning on January 1, 2017, the amendment allows for two methods of adoption, a full retrospective method or a modified retrospective approach with the cumulative effect recognized at the date of initial application. Early adoption is not permitted. We are in the process of determining the method of adoption and the impact of this amendment on our consolidated financial statements. | ||||
In August 2014, the FASB issued an amendment that requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. The amendments in this update provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for one year after the date that the financial statements are issued and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this update apply to all entities and are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This amendment is not expected to have a material impact on our financial statements. | ||||
Acquisitions_And_Disposition_O
Acquisitions And Disposition Of Strategic Investment | 12 Months Ended |
Dec. 31, 2014 | |
Acquisitions And Disposition Of Strategic Investments [Abstract] | |
Acquisitions And Disposition of Strategic Investment | NOTE 3. ACQUISITIONS AND DISPOSITION OF STRATEGIC INVESTMENT |
We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range or expanding our existing product lines. | |
During the year ended December 31, 2014, we paid an aggregate of $25.1 million, to acquire seven businesses, each accounted for as separate business combinations. | |
We paid an aggregate of $18.7 million in cash and recorded contingent consideration of $4.2 million upon the acquisition of substantially all outstanding shares of a business and the assets of two other businesses, both that offer cloud-based veterinary practice software. As part of the business acquisitions, we recorded $11.7 million in amortizable intangible assets and $12.4 million in goodwill. Amortizable intangible assets primarily consisted of customer lists and software which were assigned weighted average useful lives of 16.4 years and 7.0 years, respectively. The weighted average useful life of all recognized amortizable intangible assets was 11.4 years. Goodwill is calculated as the consideration in excess of net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Of the total goodwill and amortizable assets acquired, $5.6 million of amortizable intangible assets are deductible for income tax purposes. All assets acquired in connection with these business combinations were assigned to our Companion Animal Group segment. Two out of three businesses acquired are located outside of the U.S. and, as such, the assets and liabilities recorded are subject to impacts of changes in foreign currency exchange rates. The results of operations of these acquired businesses have been included since the acquisition date. Pro forma information has not been presented for these business acquisitions because such information is not material to the financial statements. | |
We paid an aggregate of $6.2 million in cash and recorded contingent consideration of $1.5 million upon the acquisition of all outstanding shares of two veterinary reference laboratory testing businesses and to acquire the assets of two veterinary reference laboratory testing businesses. The purchase price in these business acquisitions was allocated primarily to customer list intangible assets, which were assigned a weighted average useful life of 13.3 years. $4.9 million of amortizable intangible assets associated with these acquisitions are deductible for income tax purposes. All assets acquired in connection with these business acquisitions were assigned to our Companion Animal Group segment. Certain of these business acquisitions were of businesses located outside of the U.S. and, as such, the assets and liabilities recorded are subject to impacts of changes in foreign currency exchange rates. The results of operations of these acquired businesses have been included since the acquisition date. Pro forma information has not been presented for these business acquisitions because such information is not material to the financial statements. | |
In June 2014, we divested our investment in a company that owns and operates veterinary hospitals. Upon the closing date, we received proceeds of $5.4 million in exchange for two outstanding promissory notes of the company and its subsidiaries and our 11% equity interest in the company. This investment has been accounted for under the equity method of accounting since acquisition in the fourth quarter of 2010. Upon the disposition of this strategic investment, we realized a $0.7 million gain, which has been reflected as a reduction to general and administrative. | |
During the year ended December 31, 2013, we paid an aggregate of $10.8 million in cash to acquire all outstanding shares of a distributor of certain of our bovine and dairy test products, as well as other food safety testing products, in Brazil. As part of this business acquisition, we recorded $4.8 million in amortizable intangible assets other than goodwill and $6.5 million in goodwill. The amortizable assets acquired consisted of a customer list, non-compete agreement and a trademark, which were assigned useful lives of 10, 5, and 15 years, respectively. The weighted average useful life of all recognized amortizable intangible assets was 9.9 years. Additionally, we recorded $0.7 million of cash and cash equivalents, $1.0 million in working capital, $0.5 million of fixed assets, $2.1 million in other assets and net deferred tax liabilities of $1.7 million. We deemed certain pre-acquisition contingent liabilities probable and recorded $3.1 million in other liabilities at December 31, 2013. Goodwill is calculated as the consideration in excess of net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill and amortizable intangible assets recorded from this business acquisition are not deductible for income tax purposes. All assets acquired in connection with this business acquisition were assigned to our LPD segment. The results of operations of this acquired business have been included since the acquisition date. Pro forma information has not been presented for this business acquisition because such information is not material to the financial statements. | |
During the year ended December 31, 2012, we paid an aggregate of $3.6 million in cash to acquire three businesses, each accounted for as separate business combinations, and to acquire a product right unrelated to business acquisitions. As part of these business acquisitions, we acquired amortizable intangible assets consisting of customer lists with a fair value of $1.7 million and other intangible assets of $0.7 million, which were assigned weighted average useful lives of 10 years and 8 years, respectively. All assets acquired in connection with these business acquisitions were assigned to the CAG segment. The results of operations of these acquired businesses have been included since the acquisition date. Pro forma information has not been presented for these acquisitions because such information is not material to the financial statements. | |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||
Share-Based Compensation | NOTE 4. SHARE-BASED COMPENSATION | ||||||||||||
Share-Based Awards | |||||||||||||
Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights and other stock unit awards. Other stock unit awards include restricted stock units (“RSUs”) and deferred stock units (“DSUs”). Stock options permit a holder to buy IDEXX stock upon vesting at the stock’s price on the date the option was granted. An RSU is an agreement to issue shares of IDEXX stock at the time of vesting. DSUs are granted under our Executive Deferred Compensation Plan (the “Executive Plan”) and non-employee Director Deferred Compensation Plan (the “Director Plan”). DSUs may or may not have vesting conditions depending on the plan under which they are issued. We did not issue any restricted stock or stock appreciation rights during the years ended December 31, 2014, 2013 and 2012 nor were any restricted stock or stock appreciation rights outstanding as of those years ended. There were no material modifications to the terms of outstanding options, RSUs or DSUs during the years ended December 31, 2014, 2013 or 2012. | |||||||||||||
We primarily issue shares of common stock to satisfy stock option exercises and employee stock purchase rights and to settle RSUs and DSUs. We issue shares of treasury stock to settle certain restricted stock units and upon the exercise of certain stock options. The number of shares of treasury stock issued during the years ended December 31, 2014, 2013 and 2012 was not material. The number of shares of common stock and treasury stock issued are equivalent to the number of awards exercised or settled. | |||||||||||||
With the exception of employee stock purchase rights, equity awards are issued to employees and non-employee directors under the 2009 Stock Incentive Plan (the “2009 Stock Plan”). Our board of directors has authorized the issuance of 9,950,000 shares of our common stock under this share-based incentive plan. Any shares that are subject to awards of stock options or stock appreciation rights will be counted against the share limit as one share for every share granted. Any shares that are issued other than stock options and stock appreciation rights will be counted against the share limit as two shares for every share granted. If any shares issued under our prior plans are forfeited, settled for cash or expire, these shares, to the extent of such forfeiture, cash settlement or expiration, will again be available for issuance under the 2009 Stock Plan. As of December 31, 2014, there were 6,578,907 remaining shares available for issuance under the 2009 Stock Plan. | |||||||||||||
Employee stock purchase rights are issued under the 1997 Employee Stock Purchase Plan, under which we reserved and may issue up to an aggregate of 1,590,000 shares of common stock in periodic offerings. Under this plan, stock is sold to employees at a 15% discount off the closing price of the stock on the last day of each quarter. The dollar value of this discount is equal to the fair value of purchase rights recognized as share-based compensation. We issued 47,000, 55,000 and 51,000 shares of common stock in connection with the Employee Stock Purchase Plan during the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there were 49,564 remaining shares available for issuance under the 1997 Employee Stock Purchase Plan. | |||||||||||||
Share-Based Compensation | |||||||||||||
Share-based compensation costs are classified in our consolidated financial statements consistent with the classification of cash compensation paid to the employees receiving such share-based compensation. The following is a summary of share-based compensation costs and related tax benefits recorded in our consolidated statements of income for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Share-based compensation expense included in cost of revenue | $ | 1,937 | $ | 1,841 | $ | 1,770 | |||||||
Share-based compensation expense included in operating expenses | 16,162 | 14,733 | 14,152 | ||||||||||
Total share-based compensation expense included in consolidated statements of income | 18,099 | 16,574 | 15,922 | ||||||||||
Income tax benefit resulting from share-based compensation arrangements | (6,107 | ) | (5,584 | ) | (5,403 | ) | |||||||
Net impact of share-based compensation on net income | $ | 11,992 | $ | 10,990 | $ | 10,519 | |||||||
Share-based compensation expense is reduced for an estimate of the number of awards that are expected to be forfeited. We use historical data and other factors to estimate employee termination behavior and to evaluate whether particular groups of employees have significantly different forfeiture behaviors. | |||||||||||||
The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards at December 31, 2014 was $35.9 million, which will be recognized over a weighted average period of approximately 1.6 years. | |||||||||||||
Stock Options | |||||||||||||
Option awards are granted with an exercise price equal to the closing market price of our common stock at the date of grant. Options granted to employees primarily vest ratably over five years on each anniversary of the date of grant and options granted to non-employee directors vest fully on the first anniversary of the date of grant. Vesting of option awards issued is conditional based on continuous service. Options granted after May 8, 2013 have a contractual term of ten years, options granted between January 1, 2006 and May 8, 2013 have contractual terms of seven years and options granted prior to January 1, 2006 have contractual terms of ten years. Upon any change in control of the company, 25% of the unvested stock options then outstanding will vest and become exercisable. However, if the acquiring entity does not assume outstanding options, then all options will vest immediately prior to the change in control. | |||||||||||||
We use the Black-Scholes-Merton option-pricing model to determine the fair value of options granted. Option-pricing models require the input of highly subjective assumptions, particularly for the expected stock price volatility and the expected term of options. Changes in the subjective input assumptions can materially affect the fair value estimate. Our expected stock price volatility assumptions are based on the historical volatility of our stock over periods that are similar to the expected terms of grants and other relevant factors. We derive the expected term based on historical experience and other relevant factors concerning expected employee behavior with regard to option exercise. The risk-free interest rate is based on U.S. Treasury yields for a maturity approximating the expected term calculated at the date of grant. We have never paid any cash dividends on our common stock and we have no intention to pay a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. | |||||||||||||
We determine the assumptions used in the valuation of option awards as of the date of grant. Differences in the expected stock price volatility, expected term or risk-free interest rate may necessitate distinct valuation assumptions at those grant dates. As such, we may use different assumptions for options granted throughout the year. The weighted averages of the valuation assumptions used to determine the fair value of each option award on the date of grant and the weighted average estimated fair values were as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected stock price volatility | 28 | % | 32 | % | 34 | % | |||||||
Expected term, in years | 5.7 | 4.9 | 4.6 | ||||||||||
Risk-free interest rate | 1.5 | % | 1.0 | % | 0.8 | % | |||||||
Weighted average fair value of options granted | $ | 36.14 | $ | 27.17 | $ | 26.38 | |||||||
A summary of the status of options granted under our share-based compensation plans at December 31, 2014, and changes during the year then ended, are presented in the table below: | |||||||||||||
Number of Options (000) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | ||||||||||
Outstanding as of December 31, 2013 | 2,131 | $ | 63.96 | ||||||||||
Granted | 297 | 123.24 | |||||||||||
Exercised | -585 | 41.63 | |||||||||||
Forfeited | -62 | 92.53 | |||||||||||
Expired | -1 | 91.68 | |||||||||||
Outstanding as of December 31, 2014 | 1,780 | $ | 80.16 | 4.3 | $ | 121,250 | |||||||
Fully vested as of December 31, 2014 | 888 | $ | 63.50 | 2.7 | $ | 75,286 | |||||||
Fully vested and expected to vest as of December 31, 2014 | 1,710 | $ | 79.13 | 4.2 | $ | 118,220 | |||||||
The total fair value of options vested during the years ended December 31, 2014, 2013 and 2012 was $7.8 million, $8.4 million and $8.3 million, respectively. | |||||||||||||
Intrinsic value of stock options exercised represents the amount by which the market price of the common stock exceeded the exercise price, before applicable income taxes. During the years ended December 31, 2014, 2013 and 2012 the total intrinsic value of stock options exercised was $51.2 million, $49.0 million and $45.8 million, respectively. | |||||||||||||
Restricted Stock Units | |||||||||||||
RSUs granted to employees vest ratably over five years on each anniversary of the date of grant or fully on the third anniversary of the date of grant, depending on the employee group receiving the award. RSUs granted to non-employee directors vest fully on the first anniversary of the date of grant. Vesting as it relates to RSUs issued is conditional based on continuous service. Upon any change in control of the company, 25% of the unvested RSUs then outstanding will vest, provided, however, that if the acquiring entity does not assume the RSUs, then all such units will vest immediately prior to the change in control. | |||||||||||||
A summary of the status of RSUs granted under our share-based compensation plans at December 31, 2014, and changes during the period then ended, are presented in the table below: | |||||||||||||
Number of Units (000) | Weighted Average Grant-Date Fair Value | ||||||||||||
Nonvested as of December 31, 2013 | 336 | $ | 76.67 | ||||||||||
Granted | 98 | 122.92 | |||||||||||
Vested | -122 | 64.71 | |||||||||||
Forfeited | -23 | 89.25 | |||||||||||
Nonvested as of December 31, 2014 | 289 | $ | 96.47 | ||||||||||
Expected to vest as of December 31, 2014 | 267 | $ | 95.97 | ||||||||||
The total fair value of RSUs vested during the years ended December 31, 2014, 2013 and 2012 was $15.4 million, $12.7 million and $13.3 million, respectively. The aggregate intrinsic value of nonvested RSUs as of December 31, 2014 is equal to the fair value of IDEXX’s common stock as of December 31, 2014 multiplied by the number of nonvested units as of December 31, 2014. | |||||||||||||
Deferred Stock Units | |||||||||||||
Under our Director Plan, non-employee directors may defer a portion of their cash fees in the form of vested DSUs. Prior to 2014, certain members of our management could elect to defer a portion of their cash compensation in the form of vested deferred stock units under our Executive Plan. Each DSU represents the right to receive one unissued share of our common stock. These recipients receive a number of DSUs equal to the amount of cash fees or compensation deferred divided by the closing sale price of the common stock on the date of deferral. Also under the Director Plan, non-employee directors are awarded annual grants of DSUs that vest fully on the first anniversary of the date of grant. Vesting for these annual DSU grants is conditional based on continuous service. DSUs are exchanged for a fixed number of shares of common stock, upon vesting if vesting criteria apply, subject to the limitations of the Director and Executive Plans and applicable law. | |||||||||||||
There were approximately 118,000 and 122,000 vested DSUs outstanding under our share-based compensation plans as of December 31, 2014 and 2013, respectively. Unvested DSUs as of December 31, 2014 and 2013 were not material. | |||||||||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Inventories | NOTE 5. INVENTORIES | |||||||
The components of inventories are as follows (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 26,908 | $ | 23,766 | ||||
Work-in-process | 16,859 | 14,359 | ||||||
Finished goods | 116,575 | 95,302 | ||||||
$ | 160,342 | $ | 133,427 | |||||
Property_And_Equipment_Net
Property And Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property And Equipment, Net [Abstract] | ||||||||
Property And Equipment, Net | ||||||||
NOTE 6. PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net, consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land and improvements | $ | 7,417 | $ | 7,471 | ||||
Buildings and improvements | 159,298 | 158,382 | ||||||
Leasehold improvements | 45,655 | 39,266 | ||||||
Machinery and equipment | 183,575 | 162,144 | ||||||
Office furniture and equipment | 35,696 | 35,271 | ||||||
Computer hardware and software | 151,404 | 136,008 | ||||||
Construction in progress | 20,890 | 11,473 | ||||||
603,935 | 550,015 | |||||||
Less accumulated depreciation and amortization | 300,348 | 268,801 | ||||||
Total property and equipment, net | $ | 303,587 | $ | 281,214 | ||||
Depreciation and amortization expense of property and equipment was $48.8 million, $42.8 million and $39.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
In 2011, we began the construction of a new administrative building adjacent to our primary facility on our worldwide headquarters in Westbrook, Maine, which was complete as of December 31, 2013. We capitalized $19.9 million and $13.9 million related to this project during the years ended December 31, 2013 and 2012, respectively. | ||||||||
During the years ended December 31, 2014, 2013 and 2012, we capitalized $11.9 million, $10.9 million and $12.4 million, respectively, related to computer software developed for internal use. | ||||||||
Other_Current_and_Noncurrent_A
Other Current and Noncurrent Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Current and Noncurrent Assets [Abstract] | ||||||||
Other Noncurrent Assets | NOTE 7. OTHER CURRENT AND NONCURRENT ASSETS | |||||||
Other current assets consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Prepaid expenses | $ | 32,672 | $ | 20,810 | ||||
Taxes receivable | 28,926 | 14,910 | ||||||
Customer acquisition costs, net | 11,262 | 8,098 | ||||||
Other assets | 13,591 | 5,139 | ||||||
$ | 86,451 | $ | 48,957 | |||||
Other noncurrent assets consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Investment in long-term product supply arrangements | $ | 10,765 | $ | 13,075 | ||||
Customer acquisition costs, net | 28,165 | 21,199 | ||||||
Other assets | 32,724 | 22,957 | ||||||
$ | 71,654 | $ | 57,231 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets, Net [Abstract] | ||||||||||||||||
Goodwill And Intangible Assets, Net | ||||||||||||||||
NOTE 8. GOODWILL AND INTANGIBLE ASSETS, NET | ||||||||||||||||
Intangible assets other than goodwill consisted of the following (in thousands): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | |||||||||||||
Patents | $ | 4,871 | $ | 4,308 | $ | 9,547 | $ | 8,619 | ||||||||
Product rights (1) | 36,912 | 20,657 | 38,670 | 25,796 | ||||||||||||
Customer-related intangible assets (2) | 88,494 | 40,933 | 82,940 | 38,800 | ||||||||||||
Noncompete agreements | 1,125 | 382 | 7,131 | 6,229 | ||||||||||||
$ | 131,402 | $ | 66,280 | $ | 138,288 | $ | 79,444 | |||||||||
-1 | Product rights comprise certain technologies, licenses and trade names acquired from third parties. | |||||||||||||||
-2 | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | |||||||||||||||
Amortization expense of intangible assets other than goodwill was $9.8 million, $9.7 million and $9.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. The increase in intangible assets other than goodwill during the twelve months ended December 31, 2014 resulted from intangibles recognized in connection with the acquisition of businesses, partly offset by the amortization of our intangible assets and, to a lesser extent, changes in foreign currency exchange rates. | ||||||||||||||||
At December 31, 2014, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter (in thousands): | ||||||||||||||||
Amortization Expense | ||||||||||||||||
2015 | $ | 10,678 | ||||||||||||||
2016 | 10,332 | |||||||||||||||
2017 | 9,438 | |||||||||||||||
2018 | 8,068 | |||||||||||||||
2019 | 6,560 | |||||||||||||||
Thereafter | 20,046 | |||||||||||||||
$ | 65,122 | |||||||||||||||
The increase in goodwill during the twelve months ended December 31, 2014 resulted from goodwill recognized in connection with the acquisition of businesses, partly offset by changes in foreign currency exchange rates. See Note 3 for information regarding goodwill and other intangible assets recognized in connection with the acquisition of businesses and other assets during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014, 2013, and 2012 were as follows (in thousands): | ||||||||||||||||
CAG | Water | LPD | Other | Consolidated Total | ||||||||||||
Balance as of December 31, 2011 | $ | 141,677 | $ | 13,576 | $ | 10,826 | $ | 6,531 | $ | 172,610 | ||||||
Impact of Changes in Foreign Currency Exchange Rates | 1,478 | 603 | 303 | - | 2,384 | |||||||||||
Balance as of December 31, 2012 | $ | 143,155 | $ | 14,179 | $ | 11,129 | $ | 6,531 | $ | 174,994 | ||||||
Business Combinations | 250 | - | 6,491 | - | 6,741 | |||||||||||
Impact of Changes in Foreign Currency Exchange Rates | -1,997 | 336 | 447 | - | -1,214 | |||||||||||
Balance as of December 31, 2013 | $ | 141,408 | $ | 14,515 | $ | 18,067 | $ | 6,531 | $ | 180,521 | ||||||
Business Combinations | 13,077 | - | - | - | 13,077 | |||||||||||
Impact of Changes in Foreign Currency Exchange Rates | -6,334 | -826 | -1,988 | - | -9,148 | |||||||||||
Balance as of December 31, 2014 | $ | 148,151 | $ | 13,689 | $ | 16,079 | $ | 6,531 | $ | 184,450 | ||||||
See Note 3 for information regarding the recognition of goodwill in connection with the acquisition of businesses during the years ended December 31, 2014 and 2013. We have no history of impairment charges to the carrying value of our goodwill. | ||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Accrued Liabilities | NOTE 9. ACCRUED LIABILITIES | |||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued expenses | $ | 55,655 | $ | 44,274 | ||||
Accrued employee compensation and related expenses | 75,232 | 62,474 | ||||||
Accrued taxes | 28,439 | 16,508 | ||||||
Accrued customer programs | 36,025 | 25,663 | ||||||
$ | 195,351 | $ | 148,919 | |||||
Debt
Debt | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt [Abstract] | ||||
Debt | NOTE 10. DEBT | |||
In June 2014, we refinanced our existing $450.0 million unsecured revolving credit facility by entering into an amended and restated credit agreement relating to a five-year unsecured revolving credit facility in the principal amount of $700 million with a syndicate of multinational banks, which matures on June 18, 2019 (the new credit facility and the previous credit facility are referred to collectively as the “Credit Facility”) and requires no scheduled prepayments before that date. Although the Credit Facility does not mature until June 18, 2019, all individual borrowings under the terms of the Credit Facility have a stated term between 30 and 180 days. At the end of each term, the obligation is either repaid or rolled over into a new borrowing. The Credit Facility contains a subjective material adverse event clause, which allows the debt holders to call the loans under the Credit Facility if we fail to provide prompt written notice to the syndicate of such an event. Based on the stated term and the existence of the subjective material adverse event clause, this Credit Facility is reflected in the current liabilities section of our consolidated balance sheets. At December 31, 2014 and 2013, we had $549.0 million and $277.0 million, respectively, outstanding under the Credit Facility with weighted average effective interest rates of 1.5% and 1.6%, respectively. The funds available under the Credit Facility at December 31, 2014 and December 31, 2013 reflect a further reduction due to the issuance of a letter of credit for $1.0 million, which was issued in connection with our workers’ compensation policy. | ||||
Applicable interest rates on borrowings under the Credit Facility generally range from 0.875 to 1.375 percentage points (“Credit Spread”) above the London interbank offered rate or the Canadian Dollar-denominated bankers’ acceptance rate, based on our leverage ratio, or the prevailing prime rate plus a maximum spread of up to 0.375%, based on our leverage ratio. We have entered into forward fixed interest rate swap agreements to manage the economic effect of the first $80 million of variable interest rate borrowings. As such, we continue to designate the existing interest rate swaps as cash flow hedges. See Note 16 for a discussion of our derivative instruments and hedging activities. Under the Credit Facility, we pay quarterly commitment fees of 0.15% to 0.35%, based on our leverage ratio, on any unused commitment. | ||||
The obligations under the Credit Facility may be accelerated upon the occurrence of an event of default under the Credit Facility, which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness, cross-acceleration to specified indebtedness and a change of control default. The Credit Facility contains affirmative, negative and financial covenants customary for financings of this type. The negative covenants include restrictions on liens, indebtedness of subsidiaries of the Company, fundamental changes, investments, transactions with affiliates and certain restrictive agreements. The financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization and share-based compensation defined as the consolidated leverage ratio under the terms of the Credit Facility, not to exceed 3.5-to-1. At December 31, 2014, we were in compliance with the covenants of the Credit Facility. | ||||
In December 2013, we issued and sold through a private placement an aggregate principal amount of $150 million of senior notes consisting of lose$75 million of 3.94% Series A Senior Notes due December 11, 2023 (the “2023 Notes”) and $75 million of 4.04% Series B Senior Notes due December 11, 2025 (the “2025 Notes” and together with the 2023 Notes, the “December Notes”) under a Note Purchase Agreement among the Company, New York Life Insurance Company and the accredited institutional purchasers named therein (the “December 2013 Note Agreement”). | ||||
In July 2014, we issued and sold through a private placement an aggregate principal amount of $125 million of senior notes consisting of $75 million of 3.76% Series B Senior Notes due July 21, 2024 (the “2024 Notes”) and $50 million of 3.32% Series A Senior Notes due July 21, 2021 (the “2021 Notes” and together with the 2024 Notes, the “Prudential Notes”) under a Note Purchase and Private Shelf Agreement among the Company, Prudential Investment Management, Inc. and the accredited institutional purchasers named therein (the “July 2014 Note Agreement”). | ||||
In September 2014, we issued and sold through a private placement an aggregate principal amount of $75 million of 3.72% Senior Notes due September 4, 2026 (the “2026 Notes” and together with the Prudential Notes and the December Notes, the “Senior Notes”) under a Note Purchase Agreement dated as of July 22, 2014 among the Company, New York Life Insurance Company and the accredited institutional purchasers named therein (such agreement, together with July 2014 Note Agreement and December 2013 Note Agreement, the “Senior Note Agreements”). | ||||
In December 2014, we entered into a Multicurrency Note Purchase and Private Shelf Agreement among the Company, Metropolitan Life Insurance Company (“MetLife”), and the accredited institutional purchasers named therein pursuant to which the Company agreed to issue and sell $75 million of its 3.25% Series A Senior Notes having a seven-year term, and $75 million of its 3.72% Series B Senior Notes having a twelve-year term. The issuance, sale and purchase of the 2022 Notes and 2027 Notes occurred in February 2015. The Agreement also provides for an uncommitted shelf facility by which the Company may request that MetLife purchase, over the next three years, up to $50 million of additional senior promissory notes of the Company at a fixed interest rate to be determined at the time of purchase and with a maturity date not to exceed fifteen years. | ||||
The Senior Note Agreements contain affirmative, negative and financial covenants customary for agreements of this type. The negative covenants include restrictions on liens, indebtedness of our subsidiaries, priority indebtedness, fundamental changes, investments, transactions with affiliates, certain restrictive agreements and violations of laws and regulations. The financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization and share-based compensation, as defined in the Senior Note Agreements, not to exceed 3.5-to-1. At December 31, 2014, we were in compliance with the covenants of the Senior Note Agreements. | ||||
Should we elect to prepay the Senior Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Senior Note Agreements. Additionally, in the event of a change in control of the Company or upon the disposition of certain assets of the Company the proceeds of which are not reinvested (as defined in the Senior Note Agreements), we may be required to prepay all or a portion of the Senior Notes. The obligations under the Senior Notes may be accelerated upon the occurrence of an event of default under the applicable Senior Note Agreement, each of which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness and cross-acceleration to specified indebtedness. | ||||
In June 2014, we paid off the remaining outstanding principal balance on the mortgage related to our worldwide headquarters in Westbrook, Maine. | ||||
Annual principal payments on long-term debt at December 31, 2014 are as follows (in thousands): | ||||
Years Ending December 31, | Amount | |||
2015 | $ | - | ||
2016 | - | |||
2017 | - | |||
2018 | - | |||
2019 | - | |||
Thereafter | 350,000 | |||
$ | 350,000 | |||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes [Abstract] | ||||||||||||||
Income Taxes | NOTE 11. INCOME TAXES | |||||||||||||
Earnings before income taxes were as follows (in thousands): | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Domestic | $ | 148,510 | $ | 184,086 | $ | 184,159 | ||||||||
International | 98,045 | 79,175 | 76,458 | |||||||||||
$ | 246,555 | $ | 263,261 | $ | 260,617 | |||||||||
The provision (benefit) for income taxes comprised the following (in thousands): | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current | ||||||||||||||
Federal | $ | 39,713 | $ | 50,999 | $ | 59,887 | ||||||||
State | 4,692 | 5,639 | 5,879 | |||||||||||
International | 20,213 | 16,657 | 18,534 | |||||||||||
64,618 | 73,295 | 84,300 | ||||||||||||
Deferred | ||||||||||||||
Federal | 2,301 | 3,203 | -198 | |||||||||||
State | 33 | 329 | 72 | |||||||||||
International | -2,348 | -1,360 | -1,844 | |||||||||||
-14 | 2,172 | -1,970 | ||||||||||||
$ | 64,604 | $ | 75,467 | $ | 82,330 | |||||||||
The provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate as follows: | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
U.S. federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State income tax, net of federal tax benefit | 1.5 | 1.5 | 1.5 | |||||||||||
International income taxes | -7 | -4.6 | -3.8 | |||||||||||
Domestic manufacturing exclusions | -1.2 | -1.4 | -1.5 | |||||||||||
Research and development credit | -1.3 | -2.3 | - | |||||||||||
Other, net | -0.8 | 0.5 | 0.4 | |||||||||||
Effective tax rate | 26.2 | % | 28.7 | % | 31.6 | % | ||||||||
Our effective income tax rate was 26.2% for the year ended December 31, 2014 and 28.7% for the year ended December 31, 2013. The decrease in our effective income tax rate for the year ended December 31, 2014, as compared to the year ended December 31, 2013, was related to higher relative earnings subject to international tax rates that are lower than domestic tax rates, a non-recurring benefit related to the deferral of intercompany profits that were included in prior year tax provisions in error, which is not material to current or prior interim or annual periods, and the resolution of domestic and international tax audits, which resulted in a net reduction in our provision for uncertain tax positions. These favorable factors were partly offset by a reduction in the benefit from the U.S. research and development (“R&D”) tax credit. During the three months ended March 31, 2013, legislation in the U.S. retroactively allowed the R&D tax credit for all of 2012 and extended the R&D tax credit through the year ending December 31, 2013. As a result, in the year ending December 31, 2013 we recorded the benefit of two years of R&D tax credit as compared to the year ending December 31, 2014 in which we have recorded only the benefit related to that year’s activities. | ||||||||||||||
Our effective income tax rate was 28.7% for the year ended December 31, 2013 and 31.6% for the year ended December 31, 2012. The decrease in our effective income tax rate for the year ended December 31, 2013, as compared to the year ended December 31, 2012, was due primarily to the R&D tax credit. For the year ended December 31, 2012, the U.S. legislation authorizing the R&D tax credit had expired and no associated tax benefit was recognized within this period. On January 2, 2013, U.S. federal legislation was enacted that retroactively allowed an R&D tax credit for all of 2012 and extended the R&D tax credit through the year ended December 31, 2013. Because the related legislation was enacted in 2013, the full benefit of the R&D tax credit related to the prior year’s activities was recognized in 2013. In addition, higher relative earnings subject to international tax rates that are lower than domestic tax rates also contributed to the decrease in our effective income tax rate. | ||||||||||||||
We have business operations in Switzerland and the Netherlands and have been granted tax rulings by each jurisdiction. Our tax rulings in Switzerland and the Netherlands are set to expire on December 31, 2015 and December 31, 2022, respectively. As a result of the tax rulings, our net income was higher by $8.5 million, $6.5 million and $6.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The benefit from these tax rulings is reflected within the overall benefit received from international income taxes in the table above. | ||||||||||||||
We consider the majority of the operating earnings of non-U.S. subsidiaries to be indefinitely invested outside the U.S. The cumulative earnings of these subsidiaries were $431.7 million at December 31, 2014. No provision has been made for U.S. federal and state, or international taxes that may result from future remittances of the undistributed earnings of non-U.S. subsidiaries. Should we repatriate these earnings in the future, we would have to adjust the income tax provision in the period in which the decision to repatriate earnings is made. A determination of the related tax liability that would be paid on these undistributed earnings if repatriated is not practicable. For the operating earnings not considered to be indefinitely invested outside the U.S., we have accounted for the tax impact on a current basis. | ||||||||||||||
The components of the net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets are as follows (in thousands): | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||
Assets | ||||||||||||||
Accrued expenses | $ | 20,377 | $ | 7,824 | $ | 19,833 | $ | 1,622 | ||||||
Accounts receivable reserves | 2,591 | - | 1,153 | - | ||||||||||
Deferred revenue | 8,697 | 3,084 | 5,872 | 1,552 | ||||||||||
Inventory basis differences | 3,154 | 347 | 2,670 | - | ||||||||||
Property-based differences | - | 1,601 | - | 1,728 | ||||||||||
Share-based compensation | 2,490 | 8,936 | 2,325 | 7,923 | ||||||||||
Other | 171 | 255 | 13 | 150 | ||||||||||
Net operating loss carryforwards | 65 | 4,368 | 500 | 4,182 | ||||||||||
Unrealized losses on foreign currency exchange contracts, interest rate swaps and investments | - | - | 1,580 | - | ||||||||||
Total assets | 37,545 | 26,415 | 33,946 | 17,157 | ||||||||||
Valuation allowance | -457 | -4,221 | -642 | -4,559 | ||||||||||
Total assets, net of valuation allowance | 37,088 | 22,194 | 33,304 | 12,598 | ||||||||||
Liabilities | ||||||||||||||
Deferred instrument costs | - | -10,149 | - | -3,093 | ||||||||||
Property-based differences | - | -33,978 | - | -25,823 | ||||||||||
Intangible asset basis differences | - | -16,882 | - | -15,513 | ||||||||||
Other | -610 | -517 | -190 | -790 | ||||||||||
Unrealized gains on foreign currency exchange contracts, interest rate swaps and investments | -2,603 | - | -1,303 | - | ||||||||||
Total liabilities | -3,213 | -61,526 | -1,493 | -45,219 | ||||||||||
Net deferred tax assets (liabilities) | $ | 33,875 | $ | -39,332 | $ | 31,811 | $ | -32,621 | ||||||
We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. We classify certain uncertain tax positions as long-term liabilities. | ||||||||||||||
The total amount of unrecognized tax benefits at December 31, 2014 and December 31, 2013 was $5.9 million and $6.3 million, respectively. Of the total unrecognized tax benefits at December 31, 2014 and 2013, $5.0 million and $5.7 million, respectively, comprise unrecognized tax positions that would, if recognized, affect our effective tax rate. The ultimate deductibility of the remaining unrecognized tax positions is highly certain but there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. | ||||||||||||||
During each of the years ended December 31, 2014, 2013 and 2012, we recorded interest expense and penalties of $0.3 million as income tax expense in our consolidated statement of income. At December 31, 2014 and 2013, we had $0.5 million and $0.6 million, respectively, of estimated interest expense and penalties accrued in our consolidated balance sheets. | ||||||||||||||
The following table summarizes the changes in unrecognized tax benefits during the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total amounts of unrecognized tax benefits, beginning of period | $ | 6,325 | $ | 5,906 | $ | 5,149 | ||||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 432 | 8 | 290 | |||||||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,789 | 1,954 | 1,436 | |||||||||||
Decreases in unrecognized tax benefits relating to settlements with taxing authorities | -2,242 | -317 | - | |||||||||||
Decreases in unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations | -362 | -1,226 | -969 | |||||||||||
Total amounts of unrecognized tax benefits, end of period | $ | 5,942 | $ | 6,325 | $ | 5,906 | ||||||||
In 2015, it is reasonably possible that we could recognize up to $0.4 million of income tax benefits that have not been recognized at December 31, 2014. The income tax benefits are due primarily to the lapse in the statutes of limitations for various U.S. and international tax jurisdictions. | ||||||||||||||
In the ordinary course of our business, our income tax filings are regularly under audit by tax authorities. While we believe we have appropriately provided for all uncertain tax positions, amounts asserted by taxing authorities could be greater or less than our accrued position. Accordingly, additional provisions on income tax matters, or reductions of previously accrued provisions, could be recorded in the future as we revise our estimates due to changing facts and circumstances or the underlying matters are settled or otherwise resolved. We are currently under tax examinations by various state and international tax authorities. We anticipate that these examinations will be concluded within the next year. We are no longer subject to U.S. federal examinations for tax years before 2013. With few exceptions, we are no longer subject to income tax examinations in any state and local, or international jurisdictions in which we conduct significant taxable activities for years before 2006. | ||||||||||||||
At December 31, 2014, we had net operating loss carryforwards in certain state and international jurisdictions of approximately $41.6 million available to offset future taxable income. Most of these net operating loss carryforwards will expire at various dates through 2018 and the remainder have indefinite lives. We have recorded a valuation allowance of $4.7 million against certain deferred tax assets related to temporary differences including net operating loss carryforwards, as it is more likely than not that they will not be realized or utilized within the carryforward period. | ||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | NOTE 12. EARNINGS PER SHARE | |||||||
The following is a reconciliation of shares outstanding for basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Shares outstanding for basic earnings per share: | 50,047 | 53,159 | 54,985 | |||||
Shares outstanding for diluted earnings per share: | ||||||||
Shares outstanding for basic earnings per share | 50,047 | 53,159 | 54,985 | |||||
Dilutive effect of share-based payment awards | 704 | 826 | 1,170 | |||||
50,751 | 53,985 | 56,155 | ||||||
Certain options to acquire shares have been excluded from the calculation of shares outstanding for dilutive earnings per share because they were anti-dilutive. The following table presents information concerning those anti-dilutive options for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Weighted average number of shares underlying anti-dilutive options | 322 | 527 | 696 | |||||
Commitments_Contingencies_And_
Commitments, Contingencies And Guarantees | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments, Contingencies And Guarantees [Abstract] | |||||
Commitments, Contingencies And Guarantees | NOTE 13. COMMITMENTS, CONTINGENCIES AND GUARANTEES | ||||
Commitments | |||||
We determine the lease period of any executed agreements using the noncancelable lease term plus any renewal options by which the failure to renew imposes a penalty in such amount that renewal is reasonably assured. We lease multiple facilities under operating leases with various expiration dates through 2030. In addition, we are responsible for the real estate taxes and operating expenses related to these facilities. We also have lease commitments for automobiles and office equipment. Rent expense charged to operations under operating leases was approximately $17.2 million, $15.8 million and $15.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Minimum annual rental payments under these agreements are estimated as follows (in thousands): | |||||
Years Ending December 31, | Amount | ||||
2015 | $ | 17,228 | |||
2016 | 15,245 | ||||
2017 | 12,984 | ||||
2018 | 10,048 | ||||
2019 | 6,731 | ||||
Thereafter | 15,256 | ||||
$ | 77,492 | ||||
We have various minimum royalty payments due through 2027 of $3.3 million. If these obligations are not satisfied, the related license arrangements may be terminated, resulting in either a loss in exclusivity or the right to use the technology. | |||||
We are required to annually purchase a minimum amount of inventory from certain suppliers. Through 2022, we have a total of $11.4 million in minimum purchase commitments under these arrangements. | |||||
Contingencies | |||||
We are subject to claims that arise in the ordinary course of business, including with respect to actual and threatened litigation and other matters. We accrue for loss contingencies when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. However, our actual losses with respect to these contingencies could exceed our accruals. | |||||
Under our workers’ compensation insurance policies for U.S. employees, we have retained the first $300,000, $250,000 and $250,000 in claim liability per incident with aggregate maximum claim liabilities per year of $2.3 million for the year ended December 31, 2014 and $2.0 million for each of the years ended December 31, 2013 and 2012, respectively. We have recognized cumulative expenses of $1.1 million, $0.5 million and $0.6 million for claims incurred during the years ended December 31, 2014, 2013 and 2012, respectively. Our estimated liability for workers’ compensation was $1.4 million and $1.2 million as of December 31, 2014 and 2013, respectively. Claims incurred during the years ended December 31, 2014 and 2013 are relatively undeveloped as of December 31, 2014. Therefore, it is possible that we could incur additional healthcare and wage indemnification costs beyond those previously recognized up to our aggregate liability for each of the respective claim years. For the years ended on or prior to December 31, 2012, based on our retained claim liability per incident and our aggregate claim liability per year, our maximum liability in excess of the amounts deemed probable and previously recognized is not material as of December 31, 2014. As of December 31, 2014, we had outstanding letters of credit totaling $1.3 million to the insurance companies as security for these claims in connection with these policies. | |||||
Under our current employee healthcare insurance policy for U.S. employees, we retain claims liability risk up to $375,000, $325,000 and $300,000 per incident per year in 2014, 2013 and 2012, respectively. We recognized employee healthcare claim expense of $32.0 million, $29.2 million and $23.0 million during the years ended December 31, 2014, 2013 and 2012, respectively, which includes actual claims paid and an estimate of our liability for the uninsured portion of employee healthcare obligations that have been incurred but not paid. Should employee health insurance claims exceed our estimated liability, we would have further obligations. Our estimated liability for healthcare claims that have been incurred but not paid as of December 31, 2014 and 2013 was $4.1 million and $4.3 million, respectively. | |||||
We have entered into an employment agreement with our chief executive officer whereby payment may be required if we terminate his employment without cause other than following a change in control. The amount payable is based upon the executive’s salary at the time of termination and the cost to us of continuing to provide certain benefits. Had this officer been terminated without cause at December 31, 2014, other than following a change in control, we would have had an obligation for salaries and benefits of approximately $1.6 million under such agreement. In addition, the agreement provides for continued vesting of his outstanding equity awards for a period of two years. | |||||
We have entered into employment agreements with each of our officers that require us to make certain payments in the event the officer’s employment is terminated under certain circumstances within a certain period following a change in control. The amount payable by us under each of these agreements is based on the officer’s salary and bonus history at the time of termination and the cost to us of continuing to provide certain benefits. Had all of our officers been terminated in qualifying terminations following a change in control at December 31, 2014, we would have had aggregate obligations of approximately $24.8 million under these agreements. These agreements also provide for the acceleration of the vesting of all stock options and restricted stock units upon any qualifying termination following a change in control. At this time, we believe the likelihood of terminations as a result of the scenarios described is remote, and therefore, we have not accrued for such loss contingencies. | |||||
We have total contingent liabilities outstanding of up to $11.8 million primarily related to the achievement of certain revenue milestones. We have recorded $6.3 million of contingent commitments on our consolidated balance sheet at December 31, 2014. The amount of contingent consideration recorded on our consolidated balance sheet at December 31, 2013 was not material. We have not accrued for $5.5 million of contingent liabilities, related to the acquisition of an intangible asset in 2008, as we do not deem the achievement of associated revenue milestones to be probable of occurring as of December 31, 2014. | |||||
From time to time, we have received notices alleging that our products infringe third-party proprietary rights, although we are not aware of any pending litigation with respect to such claims. Patent litigation frequently is complex and expensive, and the outcome of patent litigation can be difficult to predict. There can be no assurance that we will prevail in any infringement proceedings that may be commenced against us. If we lose any such litigation, we may be stopped from selling certain products and/or we may be required to pay damages as a result of the litigation. | |||||
Guarantees | |||||
We enter into agreements with third parties in the ordinary course of business under which we are obligated to indemnify such third parties for and against various risks and losses. The precise terms of such indemnities vary with the nature of the agreement. In many cases, we limit the maximum amount of our indemnification obligations, but in some cases those obligations may be theoretically unlimited. We have not incurred material expenses in discharging any of these indemnification obligations, and based on our analysis of the nature of the risks involved, we believe that the fair value of these agreements is minimal. Accordingly, we have recorded no liabilities for these obligations at December 31, 2014 and 2013. | |||||
When acquiring a business, we sometimes assume liability for certain events or occurrences that took place prior to the date of acquisition. We have recorded $2.5 million and $3.1 million of probable pre-acquisition liabilities in the accompanying consolidated balance sheets at December 31, 2014 and 2013, respectively. | |||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Reporting | NOTE 14. SEGMENT REPORTING | |||||||||||||||||||
Prior to January 1, 2013, we operated primarily through three business segments: diagnostic and information technology-based products and services for the veterinary market, which we continue to refer to as CAG; water quality products (“Water”); and diagnostic products for livestock and poultry health, which we referred to as Livestock and Poultry Diagnostics. We also operated two smaller operating segments that comprised products for milk quality and safety (“Dairy”) and products for the human point-of-care medical diagnostics market (“OPTI Medical”). Financial information about our Dairy and OPTI Medical operating segments was combined and presented with our remaining pharmaceutical product line and our out-licensing arrangements in an “Other” category because they did not meet the quantitative or qualitative thresholds for reportable segments. | ||||||||||||||||||||
In 2013, we combined the management of our Livestock and Poultry Diagnostics and Dairy lines of business into our LPD segment to more effectively realize the market synergies between the product lines and to achieve operational efficiencies. Our OPTI Medical operating segment remains combined and presented with our remaining pharmaceutical product line and our out-licensing arrangements in an “Other” category because they do not meet the quantitative or qualitative thresholds for reportable segments. The segment income (loss) from operations discussed within this report for the years ended December 31, 2012 has been retrospectively revised to reflect this change in the composition of our reportable segments. | ||||||||||||||||||||
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, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-maker is our Chief Executive Officer. Our operating segments include: CAG, Water, LPD, and Other. Assets are not allocated to segments for internal reporting purposes. | ||||||||||||||||||||
CAG develops, designs, manufactures and distributes products and performs services for veterinarians and the bioresearch market, primarily related to diagnostics and information management. Water develops, designs, manufactures and distributes a range of products used in the detection of various microbiological parameters in water. LPD develops, designs, manufactures and distributes diagnostic tests and related instrumentation that are used to manage the health status of livestock and poultry, to improve bovine reproductive efficiency, and to ensure the quality and safety of milk and food. OPTI Medical develops, designs, manufactures and distributes point-of-care electrolyte and blood gas analyzers and related consumable products for the human medical diagnostics market. | ||||||||||||||||||||
The accounting policies of our segments are the same as those described in the summary of significant accounting policies in Note 2 except for inventories, as discussed below. Intersegment revenues, which are not included in the table below, were not material for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Items that are not allocated to our operating segments are as follows: a portion of corporate support function and personnel-related expenses; certain manufacturing costs; corporate research and development expenses that do not align with one of our existing business or service categories; the difference between estimated and actual share-based compensation expense; and certain foreign currency exchange gains and losses. These amounts are shown under the caption “Unallocated Amounts.” | ||||||||||||||||||||
We estimate our share-based compensation expense, corporate support function expenses and certain personnel-related costs and allocate the estimated expenses to the operating segments. This allocation differs from actual expense and consequently yields a difference that is reported under the caption “Unallocated Amounts.” | ||||||||||||||||||||
With respect to manufacturing costs, the costs reported in our operating segments include our standard cost for products sold and any variances from standard cost for products purchased or manufactured within the period. We capitalize these variances for inventory on hand at the end of the period to record inventory in accordance with U.S. GAAP. We then record these variances as cost of product revenue as that inventory is sold. The impact to cost of product revenue resulting from this variance capitalization and subsequent recognition is reported within the caption “Unallocated Amounts.” | ||||||||||||||||||||
Additionally, in certain geographies where we maintain inventories in currencies other than the U.S. dollar, the product costs reported in our operating segments include our standard cost for products sold, which is stated at the budgeted currency exchange rate from the beginning of the fiscal year. In these geographies, the variances from standard cost for products sold related to changes in currency exchange rates are reported within the caption “Unallocated Amounts.” | ||||||||||||||||||||
Below is our segment information (in thousands): | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | |||||||||||||||
2014 | ||||||||||||||||||||
Revenue | $ | 1,236,855 | $ | 94,725 | $ | 127,388 | $ | 26,839 | $ | - | $ | 1,485,807 | ||||||||
Income (loss) from operations | $ | 213,109 | $ | 39,262 | $ | 24,215 | $ | 2,479 | $ | -18,810 | $ | 260,255 | ||||||||
Interest expense, net | -13,700 | |||||||||||||||||||
Income before provision for income taxes | 246,555 | |||||||||||||||||||
Provision for income taxes | 64,604 | |||||||||||||||||||
Net income | 181,951 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 45 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 181,906 | ||||||||||||||||||
Depreciation and amortization | $ | 48,740 | $ | 2,553 | $ | 5,144 | $ | 2,451 | $ | - | $ | 58,888 | ||||||||
Expenditures for long-lived assets (1) | $ | 49,270 | $ | 2,499 | $ | 4,025 | $ | 4,729 | $ | - | $ | 60,523 | ||||||||
2013 | ||||||||||||||||||||
Revenue | $ | 1,150,169 | $ | 87,959 | $ | 113,811 | $ | 25,119 | $ | - | $ | 1,377,058 | ||||||||
Income (loss) from operations | $ | 218,645 | $ | 37,321 | $ | 14,159 | $ | 2,405 | $ | -5,768 | $ | 266,762 | ||||||||
Interest expense, net | -3,501 | |||||||||||||||||||
Income before provision for income taxes | 263,261 | |||||||||||||||||||
Provision for income taxes | 75,467 | |||||||||||||||||||
Net income | 187,794 | |||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | -6 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 187,800 | ||||||||||||||||||
Depreciation and amortization | $ | 45,079 | $ | 2,470 | $ | 4,906 | $ | 2,141 | $ | - | $ | 54,596 | ||||||||
Expenditures for long-lived assets (1) | $ | 66,134 | $ | 3,254 | $ | 5,569 | $ | 2,655 | $ | - | $ | 77,612 | ||||||||
2012 | ||||||||||||||||||||
Revenue | $ | 1,072,211 | $ | 84,680 | $ | 111,308 | $ | 25,139 | $ | - | $ | 1,293,338 | ||||||||
Income (loss) from operations | $ | 203,236 | $ | 37,687 | $ | 20,808 | $ | 2,902 | $ | -2,070 | $ | 262,563 | ||||||||
Interest expense, net | -1,946 | |||||||||||||||||||
Income before provision for income taxes | 260,617 | |||||||||||||||||||
Provision for income taxes | 82,330 | |||||||||||||||||||
Net income | 178,287 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 20 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 178,267 | ||||||||||||||||||
Depreciation and amortization | $ | 43,042 | $ | 2,358 | $ | 4,943 | $ | 2,065 | $ | - | $ | 52,408 | ||||||||
Expenditures for long-lived assets (1) | $ | 47,531 | $ | 2,099 | $ | 5,767 | $ | 2,221 | $ | - | $ | 57,618 | ||||||||
__________ | ||||||||||||||||||||
(1) Expenditures for long-lived assets exclude expenditures for intangible assets. See Note 3 for information regarding acquisitions of intangible assets during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Revenue by product and service categories was as follows (in thousands): | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
CAG segment revenue: | ||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 1,053,410 | $ | 973,886 | $ | 896,449 | ||||||||||||||
VetLab consumables | 341,397 | 312,457 | 278,818 | |||||||||||||||||
VetLab service and accessories | 53,383 | 50,675 | 48,056 | |||||||||||||||||
Rapid assay products | 165,647 | 169,547 | 162,232 | |||||||||||||||||
Reference laboratory diagnostic and consulting services | 492,983 | 441,207 | 407,343 | |||||||||||||||||
CAG Diagnostics capital instruments | 79,626 | 83,492 | 90,177 | |||||||||||||||||
Customer information management and digital imaging systems | 103,819 | 92,791 | 85,585 | |||||||||||||||||
CAG segment revenue | 1,236,855 | 1,150,169 | 1,072,211 | |||||||||||||||||
Water segment revenue | 94,725 | 87,959 | 84,680 | |||||||||||||||||
LPD segment revenue | 127,388 | 113,811 | 111,308 | |||||||||||||||||
Other segment revenue | 26,839 | 25,119 | 25,139 | |||||||||||||||||
Total revenue | $ | 1,485,807 | $ | 1,377,058 | $ | 1,293,338 | ||||||||||||||
Revenue by principal geographic area, based on customers’ domiciles, was as follows (in thousands): | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Americas | ||||||||||||||||||||
United States | $ | 848,928 | $ | 802,345 | $ | 759,419 | ||||||||||||||
Canada | 69,743 | 69,947 | 66,405 | |||||||||||||||||
Latin America | 34,086 | 26,893 | 22,901 | |||||||||||||||||
952,757 | 899,185 | 848,725 | ||||||||||||||||||
Europe, the Middle East and Africa | ||||||||||||||||||||
Germany | 85,189 | 78,109 | 72,983 | |||||||||||||||||
United Kingdom | 74,131 | 65,027 | 64,412 | |||||||||||||||||
France | 53,322 | 49,093 | 45,927 | |||||||||||||||||
Italy | 28,794 | 26,443 | 24,625 | |||||||||||||||||
Spain | 21,566 | 20,194 | 19,776 | |||||||||||||||||
Switzerland | 14,544 | 12,246 | 12,967 | |||||||||||||||||
Other | 88,844 | 75,573 | 59,948 | |||||||||||||||||
366,390 | 326,685 | 300,638 | ||||||||||||||||||
Asia Pacific Region | ||||||||||||||||||||
Australia | 58,448 | 53,063 | 50,658 | |||||||||||||||||
Japan | 44,132 | 44,869 | 49,204 | |||||||||||||||||
China | 34,674 | 29,044 | 24,628 | |||||||||||||||||
Other | 29,406 | 24,212 | 19,485 | |||||||||||||||||
166,660 | 151,188 | 143,975 | ||||||||||||||||||
Total | $ | 1,485,807 | $ | 1,377,058 | $ | 1,293,338 | ||||||||||||||
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, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Americas | ||||||||||||||||||||
United States | $ | 262,475 | $ | 245,511 | ||||||||||||||||
Brazil | 3,206 | 869 | ||||||||||||||||||
Canada | 2,270 | 2,114 | ||||||||||||||||||
267,951 | 248,494 | |||||||||||||||||||
Europe, the Middle East and Africa | ||||||||||||||||||||
United Kingdom | 14,366 | 12,959 | ||||||||||||||||||
Germany | 4,836 | 5,733 | ||||||||||||||||||
France | 3,172 | 3,127 | ||||||||||||||||||
Netherlands | 3,456 | 2,956 | ||||||||||||||||||
Switzerland | 2,631 | 3,076 | ||||||||||||||||||
Other | 1,674 | 1,190 | ||||||||||||||||||
30,135 | 29,041 | |||||||||||||||||||
Asia Pacific Region | ||||||||||||||||||||
Japan | 2,204 | 690 | ||||||||||||||||||
Australia | 1,789 | 1,801 | ||||||||||||||||||
Other | 1,508 | 1,188 | ||||||||||||||||||
5,501 | 3,679 | |||||||||||||||||||
Total | $ | 303,587 | $ | 281,214 | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Fair Value Measurements | NOTE 15. FAIR VALUE MEASUREMENTS | ||||||||||||
The following table sets forth our assets and liabilities that were measured at fair value on a recurring basis at December 31, 2014 and at December 31, 2013 by level within the fair value hierarchy (in thousands): | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets for | Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | Balance at | ||||||||||
As of December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | 31-Dec-14 | |||||||||
Assets | |||||||||||||
Money market funds(1) | $ | 204,743 | $ | - | $ | - | $ | 204,743 | |||||
Equity mutual funds(2) | 2,654 | - | - | 2,654 | |||||||||
Foreign currency exchange contracts(3) | - | 12,226 | - | 12,226 | |||||||||
Liabilities | |||||||||||||
Foreign currency exchange contracts(3) | - | 1,323 | - | 1,323 | |||||||||
Deferred compensation(4) | 2,654 | - | - | 2,654 | |||||||||
Interest rate swaps(5) | - | 1,117 | - | 1,117 | |||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets for | Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | Balance at | ||||||||||
As of December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||||||||
Assets | |||||||||||||
Money market funds(1) | $ | 153,109 | $ | - | $ | - | $ | 153,109 | |||||
Equity mutual funds(2) | 2,847 | - | - | 2,847 | |||||||||
Foreign currency exchange contracts(3) | - | 4,044 | - | 4,044 | |||||||||
Liabilities | |||||||||||||
Foreign currency exchange contracts(3) | - | 3,096 | - | 3,096 | |||||||||
Deferred compensation(4) | 2,847 | - | - | 2,847 | |||||||||
Interest rate swaps(5) | - | 1,821 | - | 1,821 | |||||||||
__________ | |||||||||||||
-1 | Money market funds are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2014 and December 31, 2013 consisted of demand deposits. | ||||||||||||
-2 | Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets, net. See number (4) below for a discussion of the related deferred compensation liability. | ||||||||||||
-3 | Foreign currency exchange contracts are included within other current assets or accrued liabilities depending on the gain (loss) position. | ||||||||||||
-4 | A deferred compensation plan assumed as part of a business combination is included within other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in number (2) above. | ||||||||||||
-5 | Interest rate swaps are included within accrued liabilities. | ||||||||||||
We did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 of the fair value hierarchy during the years ended December 31, 2014 and 2013. | |||||||||||||
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate carrying value due to their short maturity. See Note 2 for additional information regarding the fair values of our unsecured revolving credit facility, notes receivable and long-term debt. | |||||||||||||
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative Instruments And Hedging [Abstract] | ||||||||||||
Derivative Instruments And Hedging | Note 16. Derivative Instruments and Hedging | |||||||||||
Disclosure within this footnote is presented to provide transparency about how and why we use derivative instruments and how the instruments and related hedged items affect our financial position, results of operations, and cash flows. See Note 2 for a discussion surrounding our derivative instrument and hedging accounting policies, Note 15 for additional information regarding the fair value of our derivative instruments and Note 18 for additional information regarding the effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations. | ||||||||||||
We are exposed to certain risks related to our ongoing business operations. The primary risks that we manage by using derivative instruments are foreign currency exchange risk and interest rate risk. Our subsidiaries enter into foreign currency exchange contracts to manage the exchange risk associated with their forecasted intercompany inventory purchases and sales for the next year. From time to time, we may also enter into foreign currency exchange contracts to minimize the impact of foreign currency fluctuations associated with specific, significant transactions. We enter into interest rate swaps to minimize the impact of interest rate fluctuations associated with our variable-rate Credit Facility. | ||||||||||||
The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in euro, British pound, Japanese yen, Canadian dollar, Australian dollar and Swiss franc. We also utilize natural hedges to mitigate our transaction and commitment exposures. Our corporate policy prescribes the range of allowable hedging activity. We enter into foreign currency exchange contracts with large multinational financial institutions and we do not hold or engage in transactions involving derivative instruments for purposes other than risk management. Our accounting policies for these contracts are based on our designation of such instruments as hedging transactions. | ||||||||||||
Cash Flow Hedges | ||||||||||||
We have designated our foreign currency exchange contracts and variable-to-fixed interest rate swaps as cash flow hedges as these derivative instruments mitigate the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange and interest rates. Unless noted otherwise, we have also designated our derivative instruments as qualifying for hedge accounting treatment. | ||||||||||||
We did not de-designate any instruments from hedge accounting treatment during the years ended December 31, 2014, 2013 and 2012. Gains or losses related to hedge ineffectiveness recognized in earnings during the years ended December 31, 2014, 2013 and 2012 were not material. At December 31, 2014, the estimated amount of net gains, net of income tax expense, which are expected to be reclassified out of AOCI and into earnings within the next twelve months is $7.4 million if exchange and interest rates do not fluctuate from the levels at December 31, 2014. | ||||||||||||
We enter into foreign currency exchange contracts for amounts that are less than the full value of forecasted intercompany inventory purchases and sales. Our hedging strategy related to intercompany inventory purchases and sales is to employ the full amount of our hedges for the succeeding year at the conclusion of our budgeting process for that year. We primarily utilize foreign currency exchange contracts with durations of less than 24 months. Quarterly, we enter into contracts to hedge incremental portions of anticipated foreign currency transactions for the current and following year. As a result, our risk with respect to foreign currency exchange rate fluctuations and the notional value of foreign currency exchange contracts may vary throughout the year. The U.S. dollar is the currency purchased or sold in all of our foreign currency exchange contracts. The notional amount of foreign currency exchange contracts to hedge forecasted intercompany inventory purchases and sales totaled $186.7 million and $168.3 million at December 31, 2014 and December 31, 2013, respectively. | ||||||||||||
We have entered into forward fixed interest rate swap agreements to manage the economic effect of variable interest obligations on amounts borrowed under the terms of the Credit Facility. Beginning on March 30, 2012, the variable interest rate associated with $40 million of borrowings outstanding under the Credit Facility became effectively fixed at 1.36% plus the Credit Spread through June 30, 2016. Beginning on March 28, 2013, the variable interest rate associated with an additional $40 million of borrowings outstanding under the Credit Facility became effectively fixed at 1.64% plus the Credit Spread through June 30, 2016. Two of our forward fixed interest rate swap agreements expired on March 31, 2012. Under these agreements, the variable interest rate associated with $80 million of borrowings outstanding under the Credit Facility had been effectively fixed at 2% plus the Credit Spread. | ||||||||||||
The fair values of derivative instruments, their respective classification on the consolidated balance sheets and amounts subject to offset under master netting arrangements consisted of the following (in thousands): | ||||||||||||
Asset Derivatives | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||||
Foreign currency exchange contracts | Other current assets | $ | 12,226 | $ | 4,044 | |||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 1,323 | 2,965 | ||||||||||
Net amount | $ | 10,903 | $ | 1,079 | ||||||||
Liability Derivatives | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 1,323 | $ | 3,096 | |||||||
Interest rate swaps | Accrued liabilities | 1,117 | 1,821 | |||||||||
Total derivative instruments presented on the balance sheet | 2,440 | 4,917 | ||||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 1,323 | 2,965 | ||||||||||
Net amount | $ | 1,117 | $ | 1,952 | ||||||||
The effect of derivative instruments designated as cash flow hedges on the consolidated balance sheets for the years ended December 31, 2014, 2013 and 2012 consisted of the following (in thousands): | ||||||||||||
Gain (Loss) Recognized in AOCI on Derivative Instruments (Effective Portion) | ||||||||||||
For Year Ended December 31, | ||||||||||||
Derivative instruments | 2014 | 2013 | 2012 | |||||||||
Foreign currency exchange contracts, net of tax | $ | 7,098 | $ | 1,350 | $ | -4,481 | ||||||
Interest rate swaps, net of tax | 442 | 541 | -795 | |||||||||
Total derivative instruments, net of tax | $ | 7,540 | $ | 1,891 | $ | -5,276 | ||||||
Repurchases_Of_Common_Stock
Repurchases Of Common Stock | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Repurchases Of Common Stock [Abstract] | ||||||||||
Repurchases Of Common Stock | ||||||||||
NOTE 17. REPURCHASES OF COMMON STOCK | ||||||||||
Our board of directors has authorized the repurchase of up to 57,000,000 shares of our common stock in the open market or in negotiated transactions pursuant to the Company’s share repurchase program. We believe that the repurchase of our common stock is a favorable means of returning value to our shareholders, and we also repurchase to offset the dilutive effect of our share-based compensation programs. Repurchases of our common stock may vary depending upon the level of other investing activities and the share price. As of December 31, 2014, there are 3,081,303 remaining shares available for repurchase under this authorization. | ||||||||||
The following is a summary of our open market common stock repurchases for the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||
For the Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Shares repurchased | 4,881 | 3,952 | 1,474 | |||||||
Total cost of shares repurchased | $ | 618,158 | $ | 367,761 | $ | 132,268 | ||||
Average cost per share | $ | 126.66 | $ | 93.06 | $ | 89.72 | ||||
We primarily acquire shares by means of repurchases in the open market. However, we also acquire shares that are surrendered by employees in payment for the minimum required withholding taxes due on the vesting of restricted stock units and the settlement of deferred stock units, otherwise referred to herein as employee surrenders. We acquired 46,190 shares at a total cost of $5.8 million in connection with employee surrenders for the year ended December 31, 2014 compared to 49,475 shares at a total cost of $4.5 million for the year ended December 31, 2013 and 53,272 shares at a total cost of $4.7 million for the year ended December 31, 2012. | ||||||||||
We issue shares of treasury stock upon the vesting of certain restricted stock units and upon the exercise of certain stock options. The number of shares of treasury stock issued during the years ended December 31, 2014, 2013 and 2012 was not material. | ||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income | NOTE 18. ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||
The changes in accumulated other comprehensive income, net of tax, for the years ended December 31, 2014 and 2013 consisted of the following (in thousands): | |||||||||||||
Unrealized (loss) gain on investments, net of tax | Unrealized (loss) gain on derivatives instruments, net of tax | Cumulative translation adjustment | Total | ||||||||||
Balance as of December 31, 2012 | $ | -171 | $ | -2,070 | $ | 18,195 | $ | 15,954 | |||||
Other comprehensive income (loss) before reclassifications | 279 | 3,781 | -4,502 | -442 | |||||||||
Gains reclassified from accumulated other comprehensive income | - | -1,890 | - | -1,890 | |||||||||
Balance as of December 31, 2013 | 108 | -179 | 13,693 | 13,622 | |||||||||
Other comprehensive (loss) income before reclassifications | -107 | 9,542 | -29,126 | -19,691 | |||||||||
Gains reclassified from accumulated other comprehensive income | - | -2,002 | - | -2,002 | |||||||||
Balance as of December 31, 2014 | $ | 1 | $ | 7,361 | $ | -15,433 | $ | -8,071 | |||||
The following is a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
Amounts Reclassified from Accumulated Other | |||||||||||||
Affected Line Item in the | Comprehensive Income | ||||||||||||
Details about Accumulated Other | Statement Where | For the Years Ended December 31, | |||||||||||
Comprehensive Income Components | Net Income is Presented | 2014 | 2013 | 2012 | |||||||||
Gains (losses) on derivative instruments included in net income: | |||||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | 3,822 | $ | 3,469 | $ | 5,938 | ||||||
Interest rate swaps | Interest expense | -1,064 | -900 | -690 | |||||||||
Total gains before tax | 2,758 | 2,569 | 5,248 | ||||||||||
Tax expense | 756 | 679 | 1,623 | ||||||||||
Gains, net of tax | $ | 2,002 | $ | 1,890 | $ | 3,625 | |||||||
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 19. PREFERRED STOCK |
Our board of directors is authorized, subject to any limitations prescribed by law, without further stockholder approval, to issue from time to time up to 500,000 shares of Preferred Stock, $1.00 par value per share (“Preferred Stock”), in one or more series. Each such series of Preferred Stock shall have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. There are no shares of Preferred Stock outstanding as of December 31, 2014. | |
IDEXX_Retirement_And_Incentive
IDEXX Retirement And Incentive Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
IDEXX Retirement And Incentive Savings Plan [Abstract] | |
IDEXX Retirement And Incentive Savings Plan | NOTE 20. IDEXX RETIREMENT AND INCENTIVE SAVINGS PLAN |
We have established the IDEXX Retirement and Incentive Savings Plan (the “401(k) Plan”). Employees eligible to participate in the 401(k) Plan may contribute specified percentages of their salaries, a portion of which will be matched by us. We matched $8.8 million, $7.8 million and $7.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, we may make contributions to the 401(k) Plan at the discretion of the board of directors. There were no discretionary contributions in 2014, 2013 or 2012. | |
We also have established defined contribution plans for regional employees in Europe and in Canada. With respect to these plans, we contributed $3.7 million, $3.1 million and $2.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Disposition_Of_Pharmaceutical_
Disposition Of Pharmaceutical Product Lines And Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Disposition Of Pharmaceutical Product Lines And Restructuring [Abstract] | |
Disposition Of Pharmaceutical Product Lines And Restructuring | NOTE 21. DISPOSITION OF PHARMACEUTICAL PRODUCT LINES AND RESTRUCTURING |
In the fourth quarter of 2008, we sold our Acarexx® and SURPASS® veterinary pharmaceutical products and a feline insulin product under development, which were a part of our CAG segment, for cash proceeds of $7.0 million, a short-term receivable of $1.4 million and up to $11.5 million of future payments based on the achievement of certain development and sales milestones by the acquirer of the feline insulin product. In the fourth quarter of 2009 we earned and received a milestone payment of $2.0 million in connection with the achievement of certain development milestones by the acquirer. We earned milestone payments of $3.5 million, $3.0 million and $3.0 million in 2012, 2011 and 2010, respectively, in connection with the achievement of certain sales milestones by the acquirer following commercialization of the feline insulin product. These aggregate milestone payments were received in the first quarter of 2013, 2012 and 2011 respectively. The 2013 milestone payment was included in other current assets on the accompanying consolidated balance sheet for the year ended December 31, 2012. Because we had no obligation to deliver product or services, or otherwise provide support to the third party under this agreement, and because collectability was reasonably assured, these milestone payments were included in results of operations when earned. The payments were not classified as revenue because the transaction was accounted for as the sale of a business; rather they were reflected as reductions to general and administrative expenses as earned. We are not eligible to receive any further milestone payments under this agreement. | |
In the fourth quarter of 2008, we also entered into a separate royalty bearing license agreement related to certain intellectual property of our pharmaceutical division. Under this agreement we received $0.3 million up front, $1.6 million in the fourth quarter of 2014 and $0.3 million in the fourth quarters of 2013 and 2010 in connection with the achievement of certain production and clinical field trial milestones by the licensee. We had no obligation to deliver product or services, or otherwise provide support to the third party under this agreement. Due to these circumstances, and because collectability is reasonably assured, milestone payments earned under this agreement were included in results of operations when earned. The payments received during the year ended December 31, 2014 satisfied the licensee’s milestone payment obligation. Under the agreement, future royalties are due to us contingent upon commercialization of the product. | |
Summary_Of_Quarterly_Data
Summary Of Quarterly Data | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary Of Quarterly Data [Abstract] | ||||||||||||||
Summary Of Quarterly Data | NOTE 22. SUMMARY OF QUARTERLY DATA (UNAUDITED) | |||||||||||||
A summary of quarterly data follows (in thousands, except per share data): | ||||||||||||||
For the Three Months Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2014 | ||||||||||||||
Revenue | $ | 360,203 | $ | 390,122 | $ | 383,523 | $ | 351,959 | ||||||
Gross profit | 202,097 | 218,518 | 213,336 | 182,165 | ||||||||||
Operating income | 70,046 | 83,219 | 72,189 | 34,801 | ||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 46,585 | 57,218 | 52,142 | 25,961 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.90 | $ | 1.12 | $ | 1.05 | $ | 0.54 | ||||||
Diluted | $ | 0.89 | $ | 1.10 | $ | 1.03 | $ | 0.54 | ||||||
2013 | ||||||||||||||
Revenue | $ | 332,106 | $ | 352,583 | $ | 338,297 | $ | 354,073 | ||||||
Gross profit | 183,974 | 197,698 | 185,783 | 188,665 | ||||||||||
Operating income | 61,188 | 78,763 | 65,485 | 61,328 | ||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 44,860 | 53,995 | 45,688 | 43,258 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.82 | $ | 1.01 | $ | 0.87 | $ | 0.83 | ||||||
Diluted | $ | 0.81 | $ | 0.99 | $ | 0.86 | $ | 0.82 | ||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||
Valuation And Qualifying Accounts | SCHEDULE II | |||||||||||||||||
IDEXX LABORATORIES, INC. AND SUBSIDIARIES | ||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance at Beginning of Year | Charges to Costs and Expenses | Charges to Other Accounts1 | Write-Offs/Cash Payments | Foreign Currency Translation | Balance at End of Year | |||||||||||||
Reserves for doubtful accounts receivable: | ||||||||||||||||||
31-Dec-12 | $ | 3,239 | $ | 1,108 | $ | - | $ | -1,732 | $ | 17 | $ | 2,632 | ||||||
31-Dec-13 | 2,632 | 1,601 | - | -762 | 62 | 3,533 | ||||||||||||
31-Dec-14 | 3,533 | 2,035 | - | -1,146 | -116 | 4,306 | ||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||
31-Dec-12 | $ | 4,614 | $ | 265 | $ | - | $ | -358 | $ | 26 | $ | 4,547 | ||||||
31-Dec-13 | 4,547 | 735 | 742 | -701 | -122 | 5,201 | ||||||||||||
31-Dec-14 | 5,201 | 799 | - | -1,042 | -280 | 4,678 | ||||||||||||
1 Amount relates to net operating losses obtained through acquisitions where uncertainty exists as to our ability to use the tax attribute. | ||||||||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary Of Significant Accounting Policies [Abstract] | ||||
Estimates | (a) Estimates | |||
The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, product returns, customer programs and multiple element arrangements; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | ||||
Cash And Cash Equivalents | Cash and Cash Equivalents | |||
We consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits and money market funds. | ||||
As of December 31, 2013, our reported cash and cash equivalents balances contained restricted cash in the aggregate of $0.7 million securing various obligations. There is no restricted cash on our consolidated balance sheet for the year ended December 31, 2014. | ||||
Inventories | Inventories | |||
Inventories, which are stated at the lower of cost (first-in, first-out) or market, include material, conversion costs and inbound freight charges. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. | ||||
Property And Equipment | Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We provide for depreciation and amortization primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: | ||||
Asset Classification | Estimated Useful Life | |||
Land improvements | 15 to 20 years | |||
Buildings and improvements | 10 to 40 years | |||
Shorter of remaining lease term or useful life of improvements | ||||
Leasehold improvements | ||||
Machinery and equipment | 3 to 8 years | |||
Office furniture and equipment | 3 to 7 years | |||
Computer hardware and software | 3 to 7 years | |||
We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2014 and 2013 was not material. | ||||
We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs are general and administrative in nature and relate primarily to the determination of performance requirements, data conversion and training. Software developed to deliver hosted services to our customers has been designated as internal use. See Note 6 for further information regarding costs capitalized in connection with software developed for internal use. | ||||
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets | |||
A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When material, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. We assess contingent consideration to determine if it is part of the business combination or if it should be accounted for separately from the business combination in the postcombination period. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Changes in fair value of contingent consideration are recognized in earnings. | ||||
We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: | ||||
Asset Classification | Estimated Useful Life | |||
Patents | 13 to 15 years | |||
Product rights(1) | 5 to 15 years | |||
Customer-related intangible assets(2) | 5 to 17 years | |||
Noncompete agreements | 3 to 7 years | |||
-1 | Product rights comprise certain technologies, intellectual property, licenses and trade names acquired from third parties. | |||
-2 | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | |||
We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would then perform step one of the two-step impairment test; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the two-step impairment test. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. | ||||
In the fourth quarter of 2014, we elected to bypass the qualitative approach and instead proceeded directly to step one of the two-step impairment test to assess the fair value of all of our reporting units. As part of step one of the two-step impairment test, we estimate the fair values of applicable reporting units using an income approach based on discounted forecasted cash flows. We make significant assumptions about the extent and timing of future cash flows, growth rates and discount rates. Model assumptions are based on our projections and best estimates, using appropriate and customary market participant assumptions. In addition, we make certain assumptions in allocating shared assets and liabilities to individual reporting units in determining the carrying value of each reporting unit. Changes in forecasted cash flows or the discount rate would affect the estimated fair values of our reporting units and could result in a goodwill impairment charge in a future period. | ||||
No goodwill impairments were identified during the years ended December 31, 2014, 2013 or 2012. | ||||
We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment to write the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate. No material impairments of our intangible assets were identified during the years ended December 31, 2014, 2013 and 2012. See Note 8 for further information regarding our goodwill and intangible assets. | ||||
Warranty Reserves | Warranty Reserves | |||
We provide a standard twelve month warranty on all instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environment, historical costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. | ||||
Income Taxes | Income Taxes | |||
The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. While we consider future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. | ||||
We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. | ||||
Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. See Note 11 for additional information regarding income taxes. | ||||
Taxes Remitted To Governmental Authorities By IDEXX On Behalf Of Customer | Taxes Remitted to Governmental Authorities by IDEXX on Behalf of CustomerWe calculate, collect from our customers, and remit to governmental authorities sales, value added and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. | |||
Revenue Recognition | Revenue Recognition | |||
We recognize revenue when four criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue-generating transactions generally fall into one of the following categories of revenue recognition: | ||||
· | Revenue from substantially all U.S. distributors is recognized upon delivery to the distributor because title and risk of loss remains with IDEXX until the product is delivered. Effective December 31, 2014, we did not renew our existing contracts with our key U.S. distribution partners and transitioned to an all-direct sales strategy for our rapid assay test kits and instrument consumables. We recognize revenue for the remainder of our customers, including most distributors outside of the U.S., when the product is delivered to the customer, except as noted below. | |||
· | We recognize revenue from the sales of instruments, non-cancelable software licenses and hardware systems upon installation and the customer’s acceptance of the instrument or system as we have no significant further obligations after this point in time. | |||
· | We recognize service revenue at the time the service is performed. | |||
· | We recognize revenue associated with extended maintenance agreements (“EMAs”) over the life of the contracts using the straight-line method, which approximates the expected timing in which applicable services are performed. Amounts collected in advance of revenue recognition are recorded as current or long-term deferred revenue based on the time from the balance sheet date to the future date of revenue recognition. | |||
· | We recognize revenue on certain instrument systems under rental programs over the life of the rental agreement using the straight-line method. Amounts collected in advance of revenue recognition are recorded as current or long-term deferred revenue based on the time from the balance sheet date to the future date of revenue recognition. | |||
· | We recognize revenue on practice management systems sales, where the system includes software that is considered more than incidental, either by allocating the revenue to each element of the sale based on relative fair values of the elements, including post-contract support when fair value for all elements is available, or by use of the residual method when only the fair value of the post-contract support is available. We recognize revenue for the system upon installation and customer acceptance and recognize revenue equal to the fair value of the post-contract support over the support period. | |||
· | Shipping costs reimbursed by the customer are included in revenue. These same costs are also included in cost of product revenue. | |||
Multiple Element Arrangements (“MEAs”). Arrangements to sell products to customers frequently include multiple deliverables. Our most significant MEAs include the sale of one or more of the instruments from the IDEXX VetLab suite of analyzers, digital imaging systems or practice management software, combined with one or more of the following products: EMAs, consumables and reference laboratory diagnostic and consulting services. Practice management software is frequently sold with post-contract customer support and implementation services. Delivery of the various products or performance of services within the arrangement may or may not coincide. Delivery of our IDEXX VetLab instruments, digital imaging systems, and practice management software generally occurs at the onset of the arrangement. EMAs, consumables, and reference laboratory diagnostic and consulting services typically are delivered over future periods, generally one to six years. In certain arrangements, revenue recognized is limited to the amount invoiced or received that is not contingent on the delivery of products and services in the future. | ||||
We allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition, as discussed above, have been met for each element. If available, we establish the selling price of each element based on vendor-specific objective evidence (“VSOE”), which represents the price charged for a deliverable when it is sold separately. We use third-party evidence (“TPE”) if VSOE is not available or best estimate of selling price if neither VSOE nor TPE is available. When these arrangements include a separately-priced EMA, we recognize revenue related to the EMA at the stated contractual price on a straight-line basis over the life of the agreement to the extent the separately stated price is substantive. If there is no stated contractual price for an EMA, or the separately stated price is not substantive, we allocate revenue to each element based on the relative selling price and recognize revenue when the elements have standalone value and the four criteria for revenue recognition, as discussed above, have been met for each element. | ||||
When arrangements within the scope of software revenue recognition guidance include multiple elements, we allocate revenue to each element based on relative fair value, when VSOE exists for all elements, or by using the residual method when there is VSOE for the undelivered elements but no such evidence for the delivered elements. Under the residual method, the fair value of the undelivered elements is deferred and the residual revenue is allocated to the delivered elements. Revenue is recognized on any delivered elements when the four criteria for revenue recognition have been met for each element. If VSOE does not exist for the undelivered element, all revenue from the arrangement is deferred until the earlier of the point at which such sufficient VSOE does exist or all elements of the arrangement have been delivered. We determine fair value based on amounts charged separately for the delivered and undelivered elements to similar customers in standalone sales of the specific elements. | ||||
Certain arrangements with customers include discounts on future sales of products and services. We apply judgment in determining whether future discounts are significant and incremental. When the future discount offered is not considered significant and incremental, we do not account for the discount as an element of the original arrangement. If the future discount is significant and incremental, we recognize that discount as an element of the original arrangement and allocate the discount to the other elements of the arrangement based on relative selling price. To determine whether a discount is significant and incremental, we look to the discount provided in comparison to standalone sales of the same product or service to similar customers, the level of discount provided on other elements in the arrangement, and the significance of the discount to the overall arrangement. If the discount in the MEA approximates the discount typically provided in standalone sales, that discount is not considered incremental. | ||||
Customer Programs. We record reductions to revenue related to customer marketing and incentive programs, which include end-user rebates and other volume-based incentives. Incentives may be provided in the form of IDEXX Points, credits or cash and are earned by end users upon achieving defined volume purchases or utilization levels or upon entering an agreement to purchase products or services in future periods. Our most significant customer programs are categorized as follows: | ||||
Customer Loyalty Programs. Our customer loyalty programs offer customers the opportunity to earn incentives on a variety of IDEXX products and services as those products and services are purchased and utilized. Revenue reductions related to customer loyalty programs are recorded based on the actual issuance of incentives, incentives earned but not yet issued and estimates of incentives to be earned in the future. | ||||
Up-Front Customer Loyalty Programs. Our up-front loyalty programs provide incentives to customers in the form of cash payments or IDEXX Points upon entering multi-year agreements to purchase annual minimum amounts of future products or services. If a customer breaches its agreement, it is required to refund a prorated portion of the up-front cash or IDEXX Points, among other things. These incentives are considered to be customer acquisition costs and are capitalized and recognized as a reduction to revenue over the term of the customer agreement. If these up-front incentives are subsequently utilized to purchase IDEXX VetLab instruments, digital imaging systems or Cornerstone practice management systems, product revenue and cost is deferred and recognized over the term of the customer agreement as products and services are provided to the customer. We monitor customer purchases over the term of their agreement to assess the realizability of our capitalized customer acquisition costs. For the years ended December 31, 2014, 2013 and 2012, impairments of customer acquisition costs were immaterial. | ||||
IDEXX Instrument Marketing Programs. Our instrument marketing programs require the customer to enroll at the time of instrument purchase and offer customers the opportunity to earn incentives in future periods based on the volume of the products they purchase and utilize over the term of the program. These arrangements are considered MEAs in accordance with our revenue recognition policy stated above. Revenue reductions related to instrument marketing programs are recorded based on an estimate of customer purchase and utilization levels and the incentive the customer will earn over the term of the program. Our estimates are based on historical experience and the specific terms and conditions of the marketing program and require us to apply judgment to approximate future product purchases and utilization. Differences between our estimates and actual incentives earned are accounted for as a change in estimate. These differences were not material for the years ended December 31, 2014, 2013 and 2012. | ||||
Reagent Rental Programs. Our reagent rental programs provide our customers the right to use our instruments in consideration for multi-year agreements to purchase annual minimum amounts of consumables. No instrument revenue is recognized at the time of instrument installation. We recognize a portion of the revenue allocated to the instrument concurrent with the future sale of consumables. We determine the amount of revenue allocated from the consumable to the instrument based on relative selling prices and determine the rate of instrument revenue recognition in proportion to the customer’s minimum volume commitment. The cost of the instrument is charged to cost of product revenue on a straight-line basis over the term of the minimum purchase agreement. | ||||
IDEXX Points may be applied against the purchase price of IDEXX products and services purchased in the future or applied to trade receivables due to us. IDEXX Points that have not yet been used by customers are classified as a liability until use or expiration occurs. We estimate the amount of IDEXX Points expected to expire, or breakage, based on historical expirations and we recognize the estimated benefit of breakage in proportion to actual redemptions of IDEXX Points by customers. On November 30 of each year, unused IDEXX Points earned before January 1 of the prior year generally expire and any variance from the breakage estimate is accounted for as a change in estimate. This variance was not material for the years ended December 31, 2014, 2013 and 2012. | ||||
Future market conditions and changes in product offerings may cause us to change marketing strategies to increase or decrease customer incentive offerings, possibly resulting in incremental reductions of revenue in future periods as compared to reductions in the current or prior periods. Additionally, certain customer programs require us to estimate, based on historical experience, and apply judgment to approximate the number of customers who will actually redeem the incentive. In determining estimated revenue reductions we utilize data supplied from distributors and collected directly from end users, which includes the volume of qualifying products purchased and the number of qualifying tests run as reported to us by end users via IDEXX SmartService, a secure Internet link that enables us to extract data and provide diagnostic service and support for certain IDEXX VetLab instruments through remote access. Differences between estimated and actual customer participation in programs may impact the amount and timing of revenue recognition. | ||||
Doubtful Accounts Receivable. We recognize revenue when collection from the customer is reasonably assured. We maintain allowances for doubtful accounts for potentially uncollectible receivables. We base our estimates on a detailed analysis of specific customer situations and a percentage of our accounts receivable by aging category. If the financial condition of our customers were to deteriorate, resulting in their inability to make payments, additional allowances might be required. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. | ||||
Research And Development Costs | Research and Development Costs | |||
Research and development costs, which consist of salaries, employee benefits, materials and external consulting and product development costs, are expensed as incurred. We evaluate our software research and development costs for capitalization after the technological feasibility of software and products containing software has been established. No costs were capitalized during the years ended December 31, 2014, 2013 and 2012. | ||||
Advertising Costs | Advertising Costs | |||
Advertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $1.2 million, $1.5 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Legal Costs | Legal Costs | |||
Legal costs are considered period costs and accordingly are expensed in the year services are provided. | ||||
Share-Based Compensation | Share-Based Compensation | |||
We provide for various forms of share-based compensation awards to our employees and non-employee directors. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. Share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. See Note 4 for additional information regarding share-based compensation. | ||||
Self-Insurnace Accruals | Self-Insurance Accruals | |||
We self-insure costs associated with workers’ compensation and health and general welfare claims incurred by our U.S. employees up to certain limits. The insurance company provides insurance for claims above these limits. Claim liabilities are recorded for estimates of the loss that we will ultimately incur on reported claims, as well as estimates of claims that have been incurred but not yet reported. Such liabilities are based on individual coverage, the average time from when a claim is incurred to the time it is paid and judgments about the present and expected levels of claim frequency and severity. Estimated claim liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Estimated claim liabilities are included in accrued liabilities in the accompanying consolidated balance sheets. | ||||
Earnings Per Share | Earnings per Share | |||
Basic earnings per share is computed by dividing net income attributable to IDEXX Laboratories, Inc. stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options, the total unrecognized compensation expense for unvested share-based compensation awards and the excess tax benefits resulting from share-based compensation tax deductions in excess of the related expense recognized for financial reporting purposes, would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed and issuance is not contingent. See Note 4 for additional information regarding deferred stock units. | ||||
Foreign Currency | Foreign Currency | |||
The functional currency of all but two of our subsidiaries is their local currency. Assets and liabilities of these foreign subsidiaries are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”). | ||||
Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses. We recognized aggregate foreign currency losses of $2.0 million, less than $0.1 million and $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Derivative Instruments And Hedging | Derivative Instruments and Hedging | |||
We recognize all derivative instruments, including our foreign currency exchange contracts and interest rate swap agreements, on the balance sheet at fair value at the balance sheet date. Derivative instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. If a derivative instrument qualifies for hedge accounting, changes in the fair value of the derivative instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedge instrument is not effective in achieving offsetting changes in fair value. We de-designate derivative instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | ||||
We enter into master netting arrangements with the counterparties to our derivative transactions which permit outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the accompanying consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts and interest rate swaps are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. See Note 16 for additional information regarding our derivative and hedging instruments. | ||||
Fair Value Measurements | Fair Value Measurements | |||
U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. | ||||
The Company has certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis and certain financial assets and liabilities that are not measured at fair value in our consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: | ||||
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. | |||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||||
Our foreign currency exchange contracts and interest rate swap agreements are measured at fair value on a recurring basis in our accompanying consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative instruments using an income approach, based on prevailing market forward rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. We measure the fair value of our interest rate swaps classified as derivative instruments using an income approach, utilizing a discounted cash flow analysis based on the terms of the contract and the interest rate curve adjusted for counterparty risk. | ||||
The amount outstanding under our unsecured revolving credit facility, notes receivable and long-term debt are measured at carrying value in our accompanying consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our credit facility, notes receivable and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our credit facility and long-term debt are valued using Level 2 inputs. The estimated fair value of our credit facility approximates its carrying value. At December 31, 2014, the estimated fair value and carrying value of our long-term debt were $367.3 million and $350.0 million, respectively. As of December 31, 2013, the carrying value of our long-term debt approximated its fair value. During the year ended December 31, 2014, we disposed of notes receivable representing a strategic investment in a privately held company. As of December 31, 2013, these notes receivable had a carrying value that approximated their fair value of $5.1 million and were valued using Level 3 inputs. See Note 3 for further information regarding the disposition of the notes receivable during June 2014. | ||||
Comprehensive Income | Comprehensive Income | |||
We report all changes in equity during a period, resulting from net income and transactions or other events and circumstances from non-owner sources, in a financial statement for the period in which they are recognized. We have chosen to retrospectively present comprehensive income, which encompasses net income, foreign currency translation adjustments and the difference between the cost and the fair market value of investments in debt and equity securities, forward currency exchange contracts and interest rate swap agreements, in the consolidated statements of comprehensive income. See Note 18 for information about the effects on net income of significant amounts reclassified out of each component of AOCI for the years ended December 31, 2014 and 2013. We consider the foreign currency cumulative translation adjustment to be permanently invested and, therefore, have not provided income taxes on those amounts. | ||||
Concentrations Of Risk | Concentrations of Risk | |||
Financial Instruments. Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts and notes receivable and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. | ||||
Concentration of credit risk with respect to accounts receivable is limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable credit risk exposure is limited. We maintain an allowance for doubtful accounts, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. | ||||
To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with the counterparties to our derivative transactions and frequently monitor the credit worthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. | ||||
Inventory. If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell and certain components, raw materials and consumables used in or with our products are obtained from sole or single source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. | ||||
Customers. Our largest customers are our U.S. distributors of our products in the CAG segment. Our two largest CAG distributors are Henry Schein Animal Health Supply, LLC (“Henry Schein”) and MWI Veterinary Supply (“MWI”). Henry Schein accounted for 8% of our 2014 consolidated revenue and 9% of our 2013 and 2012 consolidated revenue, and 2% and 7% of our net accounts receivable at December 31, 2014 and 2013. MWI accounted for 8% of our 2014, 2013 and 2012 consolidated revenue, respectively, and 8% and 11% of our net accounts receivable at December 31, 2014 and 2013, respectively. Effective January 1, 2015, most U.S. distributors are no longer our customers as a result of our transition to an all-direct sales strategy in the U.S. | ||||
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted | |||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment which will replace most of the existing revenue recognition guidance within U.S. GAAP. The core principle of this guidance is that an entity should recognize revenue for the transfer of goods or services to customers in an amount that it expects to be entitled to receive for those goods or services. In doing so, companies will be required to make certain judgments and estimates, including identifying contract performance obligations, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price among separate performance obligations. Additionally, the amendment requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, significant judgments reached in the application of the guidance and assets recognized from the costs to obtain or fulfill a contract. Effective for the Company beginning on January 1, 2017, the amendment allows for two methods of adoption, a full retrospective method or a modified retrospective approach with the cumulative effect recognized at the date of initial application. Early adoption is not permitted. We are in the process of determining the method of adoption and the impact of this amendment on our consolidated financial statements. | ||||
In August 2014, the FASB issued an amendment that requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. The amendments in this update provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for one year after the date that the financial statements are issued and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this update apply to all entities and are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This amendment is not expected to have a material impact on our financial statements. | ||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary Of Significant Accounting Policies [Abstract] | ||||
Schedule Of Estimated Useful Lives For Property And Equipment | ||||
Asset Classification | Estimated Useful Life | |||
Land improvements | 15 to 20 years | |||
Buildings and improvements | 10 to 40 years | |||
Shorter of remaining lease term or useful life of improvements | ||||
Leasehold improvements | ||||
Machinery and equipment | 3 to 8 years | |||
Office furniture and equipment | 3 to 7 years | |||
Computer hardware and software | 3 to 7 years | |||
Schedule Of Estimated Useful Lives For Intangible Assets | ||||
Asset Classification | Estimated Useful Life | |||
Patents | 13 to 15 years | |||
Product rights(1) | 5 to 15 years | |||
Customer-related intangible assets(2) | 5 to 17 years | |||
Noncompete agreements | 3 to 7 years | |||
-1 | Product rights comprise certain technologies, intellectual property, licenses and trade names acquired from third parties. | |||
-2 | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||
Schedule Of Selected Financial Impact Of Share-Based Compensation | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Share-based compensation expense included in cost of revenue | $ | 1,937 | $ | 1,841 | $ | 1,770 | |||||||
Share-based compensation expense included in operating expenses | 16,162 | 14,733 | 14,152 | ||||||||||
Total share-based compensation expense included in consolidated statements of income | 18,099 | 16,574 | 15,922 | ||||||||||
Income tax benefit resulting from share-based compensation arrangements | (6,107 | ) | (5,584 | ) | (5,403 | ) | |||||||
Net impact of share-based compensation on net income | $ | 11,992 | $ | 10,990 | $ | 10,519 | |||||||
Schedule Of Weighted Averages Of The Assumptions Used In Estimating The Fair Value Of Stock Option Awards | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected stock price volatility | 28 | % | 32 | % | 34 | % | |||||||
Expected term, in years | 5.7 | 4.9 | 4.6 | ||||||||||
Risk-free interest rate | 1.5 | % | 1.0 | % | 0.8 | % | |||||||
Weighted average fair value of options granted | $ | 36.14 | $ | 27.17 | $ | 26.38 | |||||||
Schedule Of Stock Option Activity | |||||||||||||
Number of Options (000) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | ||||||||||
Outstanding as of December 31, 2013 | 2,131 | $ | 63.96 | ||||||||||
Granted | 297 | 123.24 | |||||||||||
Exercised | -585 | 41.63 | |||||||||||
Forfeited | -62 | 92.53 | |||||||||||
Expired | -1 | 91.68 | |||||||||||
Outstanding as of December 31, 2014 | 1,780 | $ | 80.16 | 4.3 | $ | 121,250 | |||||||
Fully vested as of December 31, 2014 | 888 | $ | 63.50 | 2.7 | $ | 75,286 | |||||||
Fully vested and expected to vest as of December 31, 2014 | 1,710 | $ | 79.13 | 4.2 | $ | 118,220 | |||||||
Schedule Of Restricted Stock Unit Activity | |||||||||||||
Number of Units (000) | Weighted Average Grant-Date Fair Value | ||||||||||||
Nonvested as of December 31, 2013 | 336 | $ | 76.67 | ||||||||||
Granted | 98 | 122.92 | |||||||||||
Vested | -122 | 64.71 | |||||||||||
Forfeited | -23 | 89.25 | |||||||||||
Nonvested as of December 31, 2014 | 289 | $ | 96.47 | ||||||||||
Expected to vest as of December 31, 2014 | 267 | $ | 95.97 | ||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventories [Abstract] | ||||||||
Schedule Of Components Of Inventories | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 26,908 | $ | 23,766 | ||||
Work-in-process | 16,859 | 14,359 | ||||||
Finished goods | 116,575 | 95,302 | ||||||
$ | 160,342 | $ | 133,427 | |||||
Property_And_Equipment_Net_Tab
Property And Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property And Equipment, Net [Abstract] | ||||||||
Schedule Of Property And Equipment | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land and improvements | $ | 7,417 | $ | 7,471 | ||||
Buildings and improvements | 159,298 | 158,382 | ||||||
Leasehold improvements | 45,655 | 39,266 | ||||||
Machinery and equipment | 183,575 | 162,144 | ||||||
Office furniture and equipment | 35,696 | 35,271 | ||||||
Computer hardware and software | 151,404 | 136,008 | ||||||
Construction in progress | 20,890 | 11,473 | ||||||
603,935 | 550,015 | |||||||
Less accumulated depreciation and amortization | 300,348 | 268,801 | ||||||
Total property and equipment, net | $ | 303,587 | $ | 281,214 | ||||
Other_Current_and_Noncurrent_A1
Other Current and Noncurrent Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Current and Noncurrent Assets [Abstract] | ||||||||
Schedule Of Other Current Assets | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Prepaid expenses | $ | 32,672 | $ | 20,810 | ||||
Taxes receivable | 28,926 | 14,910 | ||||||
Customer acquisition costs, net | 11,262 | 8,098 | ||||||
Other assets | 13,591 | 5,139 | ||||||
$ | 86,451 | $ | 48,957 | |||||
Schedule Of Other Noncurrent Assets | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Investment in long-term product supply arrangements | $ | 10,765 | $ | 13,075 | ||||
Customer acquisition costs, net | 28,165 | 21,199 | ||||||
Other assets | 32,724 | 22,957 | ||||||
$ | 71,654 | $ | 57,231 | |||||
Recovered_Sheet1
Goodwill And Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets, Net [Abstract] | ||||||||||||||||
Schedule Of Intangible Assets Other Than Goodwill | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | |||||||||||||
Patents | $ | 4,871 | $ | 4,308 | $ | 9,547 | $ | 8,619 | ||||||||
Product rights (1) | 36,912 | 20,657 | 38,670 | 25,796 | ||||||||||||
Customer-related intangible assets (2) | 88,494 | 40,933 | 82,940 | 38,800 | ||||||||||||
Noncompete agreements | 1,125 | 382 | 7,131 | 6,229 | ||||||||||||
$ | 131,402 | $ | 66,280 | $ | 138,288 | $ | 79,444 | |||||||||
-1 | Product rights comprise certain technologies, licenses and trade names acquired from third parties. | |||||||||||||||
Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | ||||||||||||||||
Schedule Of Expected Amortization Expense | ||||||||||||||||
Amortization Expense | ||||||||||||||||
2015 | $ | 10,678 | ||||||||||||||
2016 | 10,332 | |||||||||||||||
2017 | 9,438 | |||||||||||||||
2018 | 8,068 | |||||||||||||||
2019 | 6,560 | |||||||||||||||
Thereafter | 20,046 | |||||||||||||||
$ | 65,122 | |||||||||||||||
Schedule Of Goodwill | ||||||||||||||||
CAG | Water | LPD | Other | Consolidated Total | ||||||||||||
Balance as of December 31, 2011 | $ | 141,677 | $ | 13,576 | $ | 10,826 | $ | 6,531 | $ | 172,610 | ||||||
Impact of Changes in Foreign Currency Exchange Rates | 1,478 | 603 | 303 | - | 2,384 | |||||||||||
Balance as of December 31, 2012 | $ | 143,155 | $ | 14,179 | $ | 11,129 | $ | 6,531 | $ | 174,994 | ||||||
Business Combinations | 250 | - | 6,491 | - | 6,741 | |||||||||||
Impact of Changes in Foreign Currency Exchange Rates | -1,997 | 336 | 447 | - | -1,214 | |||||||||||
Balance as of December 31, 2013 | $ | 141,408 | $ | 14,515 | $ | 18,067 | $ | 6,531 | $ | 180,521 | ||||||
Business Combinations | 13,077 | - | - | - | 13,077 | |||||||||||
Impact of Changes in Foreign Currency Exchange Rates | -6,334 | -826 | -1,988 | - | -9,148 | |||||||||||
Balance as of December 31, 2014 | $ | 148,151 | $ | 13,689 | $ | 16,079 | $ | 6,531 | $ | 184,450 | ||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Schedule Of Accrued Liabilities | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued expenses | $ | 55,655 | $ | 44,274 | ||||
Accrued employee compensation and related expenses | 75,232 | 62,474 | ||||||
Accrued taxes | 28,439 | 16,508 | ||||||
Accrued customer programs | 36,025 | 25,663 | ||||||
$ | 195,351 | $ | 148,919 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt [Abstract] | ||||
Schedule Of Annual Principal Payments On Long-Term Debt | ||||
Years Ending December 31, | Amount | |||
2015 | $ | - | ||
2016 | - | |||
2017 | - | |||
2018 | - | |||
2019 | - | |||
Thereafter | 350,000 | |||
$ | 350,000 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes [Abstract] | ||||||||||||||
Schedule Of Earnings Before Income Taxes | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Domestic | $ | 148,510 | $ | 184,086 | $ | 184,159 | ||||||||
International | 98,045 | 79,175 | 76,458 | |||||||||||
$ | 246,555 | $ | 263,261 | $ | 260,617 | |||||||||
Schedule Of Components Of Provision (Benefit) For Income Taxes | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current | ||||||||||||||
Federal | $ | 39,713 | $ | 50,999 | $ | 59,887 | ||||||||
State | 4,692 | 5,639 | 5,879 | |||||||||||
International | 20,213 | 16,657 | 18,534 | |||||||||||
64,618 | 73,295 | 84,300 | ||||||||||||
Deferred | ||||||||||||||
Federal | 2,301 | 3,203 | -198 | |||||||||||
State | 33 | 329 | 72 | |||||||||||
International | -2,348 | -1,360 | -1,844 | |||||||||||
-14 | 2,172 | -1,970 | ||||||||||||
$ | 64,604 | $ | 75,467 | $ | 82,330 | |||||||||
Schedule Of Effective Income Tax Rate Reconciliation | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
U.S. federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State income tax, net of federal tax benefit | 1.5 | 1.5 | 1.5 | |||||||||||
International income taxes | -7 | -4.6 | -3.8 | |||||||||||
Domestic manufacturing exclusions | -1.2 | -1.4 | -1.5 | |||||||||||
Research and development credit | -1.3 | -2.3 | - | |||||||||||
Other, net | -0.8 | 0.5 | 0.4 | |||||||||||
Effective tax rate | 26.2 | % | 28.7 | % | 31.6 | % | ||||||||
Schedule Of Components Of Net Deferred Tax Assets And Liabilities | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||
Assets | ||||||||||||||
Accrued expenses | $ | 20,377 | $ | 7,824 | $ | 19,833 | $ | 1,622 | ||||||
Accounts receivable reserves | 2,591 | - | 1,153 | - | ||||||||||
Deferred revenue | 8,697 | 3,084 | 5,872 | 1,552 | ||||||||||
Inventory basis differences | 3,154 | 347 | 2,670 | - | ||||||||||
Property-based differences | - | 1,601 | - | 1,728 | ||||||||||
Share-based compensation | 2,490 | 8,936 | 2,325 | 7,923 | ||||||||||
Other | 171 | 255 | 13 | 150 | ||||||||||
Net operating loss carryforwards | 65 | 4,368 | 500 | 4,182 | ||||||||||
Unrealized losses on foreign currency exchange contracts, interest rate swaps and investments | - | - | 1,580 | - | ||||||||||
Total assets | 37,545 | 26,415 | 33,946 | 17,157 | ||||||||||
Valuation allowance | -457 | -4,221 | -642 | -4,559 | ||||||||||
Total assets, net of valuation allowance | 37,088 | 22,194 | 33,304 | 12,598 | ||||||||||
Liabilities | ||||||||||||||
Deferred instrument costs | - | -10,149 | - | -3,093 | ||||||||||
Property-based differences | - | -33,978 | - | -25,823 | ||||||||||
Intangible asset basis differences | - | -16,882 | - | -15,513 | ||||||||||
Other | -610 | -517 | -190 | -790 | ||||||||||
Unrealized gains on foreign currency exchange contracts, interest rate swaps and investments | -2,603 | - | -1,303 | - | ||||||||||
Total liabilities | -3,213 | -61,526 | -1,493 | -45,219 | ||||||||||
Net deferred tax assets (liabilities) | $ | 33,875 | $ | -39,332 | $ | 31,811 | $ | -32,621 | ||||||
Schedule Of Changes In Unrecognized Tax Benefits | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Total amounts of unrecognized tax benefits, beginning of period | $ | 6,325 | $ | 5,906 | $ | 5,149 | ||||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 432 | 8 | 290 | |||||||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,789 | 1,954 | 1,436 | |||||||||||
Decreases in unrecognized tax benefits relating to settlements with taxing authorities | -2,242 | -317 | - | |||||||||||
Decreases in unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations | -362 | -1,226 | -969 | |||||||||||
Total amounts of unrecognized tax benefits, end of period | $ | 5,942 | $ | 6,325 | $ | 5,906 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Shares outstanding for basic earnings per share: | 50,047 | 53,159 | 54,985 | |||||
Shares outstanding for diluted earnings per share: | ||||||||
Shares outstanding for basic earnings per share | 50,047 | 53,159 | 54,985 | |||||
Dilutive effect of share-based payment awards | 704 | 826 | 1,170 | |||||
50,751 | 53,985 | 56,155 | ||||||
Schedule Of Number Of Anti-Dilutive Stock Options | ||||||||
For the Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Weighted average number of shares underlying anti-dilutive options | 322 | 527 | 696 | |||||
Commitments_Contingencies_And_1
Commitments, Contingencies And Guarantees (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments, Contingencies And Guarantees [Abstract] | |||||
Schedule Of Minimum Annual Rental Payments | |||||
Years Ending December 31, | Amount | ||||
2015 | $ | 17,228 | |||
2016 | 15,245 | ||||
2017 | 12,984 | ||||
2018 | 10,048 | ||||
2019 | 6,731 | ||||
Thereafter | 15,256 | ||||
$ | 77,492 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Summary Of Segment Performance | For the Years Ended December 31, | |||||||||||||||||||
CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | |||||||||||||||
2014 | ||||||||||||||||||||
Revenue | $ | 1,236,855 | $ | 94,725 | $ | 127,388 | $ | 26,839 | $ | - | $ | 1,485,807 | ||||||||
Income (loss) from operations | $ | 213,109 | $ | 39,262 | $ | 24,215 | $ | 2,479 | $ | -18,810 | $ | 260,255 | ||||||||
Interest expense, net | -13,700 | |||||||||||||||||||
Income before provision for income taxes | 246,555 | |||||||||||||||||||
Provision for income taxes | 64,604 | |||||||||||||||||||
Net income | 181,951 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 45 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 181,906 | ||||||||||||||||||
Depreciation and amortization | $ | 48,740 | $ | 2,553 | $ | 5,144 | $ | 2,451 | $ | - | $ | 58,888 | ||||||||
Expenditures for long-lived assets (1) | $ | 49,270 | $ | 2,499 | $ | 4,025 | $ | 4,729 | $ | - | $ | 60,523 | ||||||||
2013 | ||||||||||||||||||||
Revenue | $ | 1,150,169 | $ | 87,959 | $ | 113,811 | $ | 25,119 | $ | - | $ | 1,377,058 | ||||||||
Income (loss) from operations | $ | 218,645 | $ | 37,321 | $ | 14,159 | $ | 2,405 | $ | -5,768 | $ | 266,762 | ||||||||
Interest expense, net | -3,501 | |||||||||||||||||||
Income before provision for income taxes | 263,261 | |||||||||||||||||||
Provision for income taxes | 75,467 | |||||||||||||||||||
Net income | 187,794 | |||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | -6 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 187,800 | ||||||||||||||||||
Depreciation and amortization | $ | 45,079 | $ | 2,470 | $ | 4,906 | $ | 2,141 | $ | - | $ | 54,596 | ||||||||
Expenditures for long-lived assets (1) | $ | 66,134 | $ | 3,254 | $ | 5,569 | $ | 2,655 | $ | - | $ | 77,612 | ||||||||
2012 | ||||||||||||||||||||
Revenue | $ | 1,072,211 | $ | 84,680 | $ | 111,308 | $ | 25,139 | $ | - | $ | 1,293,338 | ||||||||
Income (loss) from operations | $ | 203,236 | $ | 37,687 | $ | 20,808 | $ | 2,902 | $ | -2,070 | $ | 262,563 | ||||||||
Interest expense, net | -1,946 | |||||||||||||||||||
Income before provision for income taxes | 260,617 | |||||||||||||||||||
Provision for income taxes | 82,330 | |||||||||||||||||||
Net income | 178,287 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 20 | |||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 178,267 | ||||||||||||||||||
Depreciation and amortization | $ | 43,042 | $ | 2,358 | $ | 4,943 | $ | 2,065 | $ | - | $ | 52,408 | ||||||||
Expenditures for long-lived assets (1) | $ | 47,531 | $ | 2,099 | $ | 5,767 | $ | 2,221 | $ | - | $ | 57,618 | ||||||||
__________ | ||||||||||||||||||||
(1) Expenditures for long-lived assets exclude expenditures for intangible assets. See Note 3 for information regarding acquisitions of intangible assets during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Summary Of Revenue By Product And Service Category | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
CAG segment revenue: | ||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 1,053,410 | $ | 973,886 | $ | 896,449 | ||||||||||||||
VetLab consumables | 341,397 | 312,457 | 278,818 | |||||||||||||||||
VetLab service and accessories | 53,383 | 50,675 | 48,056 | |||||||||||||||||
Rapid assay products | 165,647 | 169,547 | 162,232 | |||||||||||||||||
Reference laboratory diagnostic and consulting services | 492,983 | 441,207 | 407,343 | |||||||||||||||||
CAG Diagnostics capital instruments | 79,626 | 83,492 | 90,177 | |||||||||||||||||
Customer information management and digital imaging systems | 103,819 | 92,791 | 85,585 | |||||||||||||||||
CAG segment revenue | 1,236,855 | 1,150,169 | 1,072,211 | |||||||||||||||||
Water segment revenue | 94,725 | 87,959 | 84,680 | |||||||||||||||||
LPD segment revenue | 127,388 | 113,811 | 111,308 | |||||||||||||||||
Other segment revenue | 26,839 | 25,119 | 25,139 | |||||||||||||||||
Total revenue | $ | 1,485,807 | $ | 1,377,058 | $ | 1,293,338 | ||||||||||||||
Schedule Of Revenue By Principal Geographic Area | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Americas | ||||||||||||||||||||
United States | $ | 848,928 | $ | 802,345 | $ | 759,419 | ||||||||||||||
Canada | 69,743 | 69,947 | 66,405 | |||||||||||||||||
Latin America | 34,086 | 26,893 | 22,901 | |||||||||||||||||
952,757 | 899,185 | 848,725 | ||||||||||||||||||
Europe, the Middle East and Africa | ||||||||||||||||||||
Germany | 85,189 | 78,109 | 72,983 | |||||||||||||||||
United Kingdom | 74,131 | 65,027 | 64,412 | |||||||||||||||||
France | 53,322 | 49,093 | 45,927 | |||||||||||||||||
Italy | 28,794 | 26,443 | 24,625 | |||||||||||||||||
Spain | 21,566 | 20,194 | 19,776 | |||||||||||||||||
Switzerland | 14,544 | 12,246 | 12,967 | |||||||||||||||||
Other | 88,844 | 75,573 | 59,948 | |||||||||||||||||
366,390 | 326,685 | 300,638 | ||||||||||||||||||
Asia Pacific Region | ||||||||||||||||||||
Australia | 58,448 | 53,063 | 50,658 | |||||||||||||||||
Japan | 44,132 | 44,869 | 49,204 | |||||||||||||||||
China | 34,674 | 29,044 | 24,628 | |||||||||||||||||
Other | 29,406 | 24,212 | 19,485 | |||||||||||||||||
166,660 | 151,188 | 143,975 | ||||||||||||||||||
Total | $ | 1,485,807 | $ | 1,377,058 | $ | 1,293,338 | ||||||||||||||
Schedule Of Net Long-Lived Assets By Principal Geographic Areas | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Americas | ||||||||||||||||||||
United States | $ | 262,475 | $ | 245,511 | ||||||||||||||||
Brazil | 3,206 | 869 | ||||||||||||||||||
Canada | 2,270 | 2,114 | ||||||||||||||||||
267,951 | 248,494 | |||||||||||||||||||
Europe, the Middle East and Africa | ||||||||||||||||||||
United Kingdom | 14,366 | 12,959 | ||||||||||||||||||
Germany | 4,836 | 5,733 | ||||||||||||||||||
France | 3,172 | 3,127 | ||||||||||||||||||
Netherlands | 3,456 | 2,956 | ||||||||||||||||||
Switzerland | 2,631 | 3,076 | ||||||||||||||||||
Other | 1,674 | 1,190 | ||||||||||||||||||
30,135 | 29,041 | |||||||||||||||||||
Asia Pacific Region | ||||||||||||||||||||
Japan | 2,204 | 690 | ||||||||||||||||||
Australia | 1,789 | 1,801 | ||||||||||||||||||
Other | 1,508 | 1,188 | ||||||||||||||||||
5,501 | 3,679 | |||||||||||||||||||
Total | $ | 303,587 | $ | 281,214 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Schedule Of Fair Value Of Assets And Liabilities Measured On Recurring Basis | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets for | Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | Balance at | ||||||||||
As of December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | 31-Dec-14 | |||||||||
Assets | |||||||||||||
Money market funds(1) | $ | 204,743 | $ | - | $ | - | $ | 204,743 | |||||
Equity mutual funds(2) | 2,654 | - | - | 2,654 | |||||||||
Foreign currency exchange contracts(3) | - | 12,226 | - | 12,226 | |||||||||
Liabilities | |||||||||||||
Foreign currency exchange contracts(3) | - | 1,323 | - | 1,323 | |||||||||
Deferred compensation(4) | 2,654 | - | - | 2,654 | |||||||||
Interest rate swaps(5) | - | 1,117 | - | 1,117 | |||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets for | Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | Balance at | ||||||||||
As of December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||||||||
Assets | |||||||||||||
Money market funds(1) | $ | 153,109 | $ | - | $ | - | $ | 153,109 | |||||
Equity mutual funds(2) | 2,847 | - | - | 2,847 | |||||||||
Foreign currency exchange contracts(3) | - | 4,044 | - | 4,044 | |||||||||
Liabilities | |||||||||||||
Foreign currency exchange contracts(3) | - | 3,096 | - | 3,096 | |||||||||
Deferred compensation(4) | 2,847 | - | - | 2,847 | |||||||||
Interest rate swaps(5) | - | 1,821 | - | 1,821 | |||||||||
__________ | |||||||||||||
-1 | Money market funds are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2014 and December 31, 2013 consisted of demand deposits. | ||||||||||||
-2 | Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets, net. See number (4) below for a discussion of the related deferred compensation liability. | ||||||||||||
-3 | Foreign currency exchange contracts are included within other current assets or accrued liabilities depending on the gain (loss) position. | ||||||||||||
-4 | A deferred compensation plan assumed as part of a business combination is included within other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in number (2) above. | ||||||||||||
-5 | Interest rate swaps are included within accrued liabilities. | ||||||||||||
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Derivative [Line Items] | ||||||||||||
Gain/(Loss) Recognized In Other Comprehensive Income On Derivative Instruments (Effective Portion) | ||||||||||||
Gain (Loss) Recognized in AOCI on Derivative Instruments (Effective Portion) | ||||||||||||
For Year Ended December 31, | ||||||||||||
Derivative instruments | 2014 | 2013 | 2012 | |||||||||
Foreign currency exchange contracts, net of tax | $ | 7,098 | $ | 1,350 | $ | -4,481 | ||||||
Interest rate swaps, net of tax | 442 | 541 | -795 | |||||||||
Total derivative instruments, net of tax | $ | 7,540 | $ | 1,891 | $ | -5,276 | ||||||
Assets [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments | ||||||||||||
Asset Derivatives | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||||
Foreign currency exchange contracts | Other current assets | $ | 12,226 | $ | 4,044 | |||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 1,323 | 2,965 | ||||||||||
Net amount | $ | 10,903 | $ | 1,079 | ||||||||
Liabilities [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments | ||||||||||||
Liability Derivatives | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 1,323 | $ | 3,096 | |||||||
Interest rate swaps | Accrued liabilities | 1,117 | 1,821 | |||||||||
Total derivative instruments presented on the balance sheet | 2,440 | 4,917 | ||||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 1,323 | 2,965 | ||||||||||
Net amount | $ | 1,117 | $ | 1,952 | ||||||||
Repurchases_Of_Common_Stock_Ta
Repurchases Of Common Stock (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Repurchases Of Common Stock [Abstract] | ||||||||||
Schedule Of Common Stock Repurchases | ||||||||||
For the Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Shares repurchased | 4,881 | 3,952 | 1,474 | |||||||
Total cost of shares repurchased | $ | 618,158 | $ | 367,761 | $ | 132,268 | ||||
Average cost per share | $ | 126.66 | $ | 93.06 | $ | 89.72 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||
Schedule Of Accumulated Other Comprehensive Income | |||||||||||||
Unrealized (loss) gain on investments, net of tax | Unrealized (loss) gain on derivatives instruments, net of tax | Cumulative translation adjustment | Total | ||||||||||
Balance as of December 31, 2012 | $ | -171 | $ | -2,070 | $ | 18,195 | $ | 15,954 | |||||
Other comprehensive income (loss) before reclassifications | 279 | 3,781 | -4,502 | -442 | |||||||||
Gains reclassified from accumulated other comprehensive income | - | -1,890 | - | -1,890 | |||||||||
Balance as of December 31, 2013 | 108 | -179 | 13,693 | 13,622 | |||||||||
Other comprehensive (loss) income before reclassifications | -107 | 9,542 | -29,126 | -19,691 | |||||||||
Gains reclassified from accumulated other comprehensive income | - | -2,002 | - | -2,002 | |||||||||
Balance as of December 31, 2014 | $ | 1 | $ | 7,361 | $ | -15,433 | $ | -8,071 | |||||
Summary Of Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||||||
Amounts Reclassified from Accumulated Other | |||||||||||||
Affected Line Item in the | Comprehensive Income | ||||||||||||
Details about Accumulated Other | Statement Where | For the Years Ended December 31, | |||||||||||
Comprehensive Income Components | Net Income is Presented | 2014 | 2013 | 2012 | |||||||||
Gains (losses) on derivative instruments included in net income: | |||||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | 3,822 | $ | 3,469 | $ | 5,938 | ||||||
Interest rate swaps | Interest expense | -1,064 | -900 | -690 | |||||||||
Total gains before tax | 2,758 | 2,569 | 5,248 | ||||||||||
Tax expense | 756 | 679 | 1,623 | ||||||||||
Gains, net of tax | $ | 2,002 | $ | 1,890 | $ | 3,625 | |||||||
Summary_Of_Quarterly_Data_Tabl
Summary Of Quarterly Data (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary Of Quarterly Data [Abstract] | ||||||||||||||
Schedule Of Quarterly Data | ||||||||||||||
For the Three Months Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2014 | ||||||||||||||
Revenue | $ | 360,203 | $ | 390,122 | $ | 383,523 | $ | 351,959 | ||||||
Gross profit | 202,097 | 218,518 | 213,336 | 182,165 | ||||||||||
Operating income | 70,046 | 83,219 | 72,189 | 34,801 | ||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 46,585 | 57,218 | 52,142 | 25,961 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.90 | $ | 1.12 | $ | 1.05 | $ | 0.54 | ||||||
Diluted | $ | 0.89 | $ | 1.10 | $ | 1.03 | $ | 0.54 | ||||||
2013 | ||||||||||||||
Revenue | $ | 332,106 | $ | 352,583 | $ | 338,297 | $ | 354,073 | ||||||
Gross profit | 183,974 | 197,698 | 185,783 | 188,665 | ||||||||||
Operating income | 61,188 | 78,763 | 65,485 | 61,328 | ||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 44,860 | 53,995 | 45,688 | 43,258 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.82 | $ | 1.01 | $ | 0.87 | $ | 0.83 | ||||||
Diluted | $ | 0.81 | $ | 0.99 | $ | 0.86 | $ | 0.82 | ||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $0 | $700,000 | |
Goodwill impairments | 0 | 0 | 0 |
Intangible assets impairments | 0 | 0 | 0 |
Revenue recognition, multiple-deliverable arrangements, years | one to six years | ||
Advertising costs | 1,200,000 | 1,500,000 | 1,100,000 |
Foreign currency transaction losses | -2,000,000 | -100,000 | -200,000 |
Fair value of long-term debt | 367,300,000 | ||
Carrying value of long-term debt | 350,000,000 | 150,359,000 | |
Fair value of notes receivable | $5,100,000 | ||
Percentage of Revenue From Henry Schein [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of IDEXX consolidated total | 8.00% | 9.00% | 9.00% |
Percentage of Accounts Receivable From Henry Schein [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of IDEXX consolidated total | 2.00% | 7.00% | |
Percentage of Revenue From MWI Veterinary Supply [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of IDEXX consolidated total | 8.00% | 8.00% | 8.00% |
Percentage of Accounts Receivable From MWI Veterinary Supply [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of IDEXX consolidated total | 8.00% | 11.00% |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Schedule Of Estimated Useful Lives For Property And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Shorter of remaining lease term or useful life of improvements |
Maximum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 |
Maximum [Member] | Building And Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 |
Maximum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 |
Maximum [Member] | Office Furniture And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 |
Maximum [Member] | Computer Hardware And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 |
Minimum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 |
Minimum [Member] | Building And Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 |
Minimum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 |
Minimum [Member] | Office Furniture And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 |
Minimum [Member] | Computer Hardware And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Schedule Of Estimated Useful Lives For Intangible Assets) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | ||
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 5 years | ||
Maximum [Member] | Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 15 years | ||
Maximum [Member] | Product Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 15 years | [1] | |
Maximum [Member] | Customer-Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 17 years | [2] | |
Maximum [Member] | Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 7 years | ||
Minimum [Member] | Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 13 years | ||
Minimum [Member] | Product Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 5 years | [1] | |
Minimum [Member] | Customer-Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 5 years | [2] | |
Minimum [Member] | Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Estimated Useful Life | 3 years | ||
[1] | Product rights comprise certain technologies, intellectual property, licenses and trade names acquired from third parties.Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | ||
[2] | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. |
Acquisitions_And_Disposition_O1
Acquisitions And Disposition Of Strategic Investment (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |||
Acquisitions And Strategic Investments [Line Items] | ||||
Acquisition of a business, net of cash acquired | $25,115,000 | $10,923,000 | $2,658,000 | |
Number of businesses acquired | 7 | 3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 4,800,000 | |||
Business Combinations, goodwill | 13,077,000 | 6,741,000 | ||
Weighted average useful lives of amortizable intangible assets | 9 years 10 months 24 days | |||
Proceeds from sale of equity investment | 5,400,000 | -5,400,000 | ||
Equity method investment, ownership percentage | 11.00% | |||
Gain on sale of equity investment | 700,000 | |||
Cash payments to acquire businesses | 10,800,000 | 3,600,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 700,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 1,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 500,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 2,100,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 1,700,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 3,100,000 | |||
Cloud-based Veterinary Practice Software Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Acquisition of a business, net of cash acquired | 18,700,000 | |||
Number of businesses acquired | 3 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,700,000 | |||
Business Combinations, goodwill | 12,400,000 | |||
Weighted average useful lives of amortizable intangible assets | 11 years 4 months 24 days | |||
Amortizable intangible assets deductible for income tax purposes | 5,600,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 4,200,000 | |||
Assets Of Cloud-based Veterinary Practice Software Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Number of businesses acquired | 2 | |||
Cloud-based Veterinary Practice Software Businesses, Foreign [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Number of businesses acquired | 2 | |||
Veterinary Reference Laboratory Testing Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Acquisition of a business, net of cash acquired | 6,200,000 | |||
Number of businesses acquired | 2 | |||
Weighted average useful lives of amortizable intangible assets | 13 years 3 months 18 days | |||
Amortizable intangible assets deductible for income tax purposes | 4,900,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 1,500,000 | |||
Assets Of Veterinary Reference Laboratory Testing Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Number of businesses acquired | 2 | |||
Computer Software, Intangible Asset [Member] | Cloud-based Veterinary Practice Software Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Weighted average useful lives of amortizable intangible assets | 7 years | |||
Customer Lists [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Useful life assigned to intangible asset, years | 10 years | |||
Weighted average useful lives of amortizable intangible assets | 10 years | |||
Intangibles acquired as result of business combination | 1,700,000 | |||
Customer Lists [Member] | Cloud-based Veterinary Practice Software Businesses [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Weighted average useful lives of amortizable intangible assets | 16 years 4 months 24 days | |||
Other Intangible Assets [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Weighted average useful lives of amortizable intangible assets | 8 years | |||
Intangibles acquired as result of business combination | $700,000 | |||
Noncompete Agreements [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Useful life assigned to intangible asset, years | 5 years | |||
Trademarks [Member] | ||||
Acquisitions And Strategic Investments [Line Items] | ||||
Useful life assigned to intangible asset, years | 15 years |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued in connection with the Employee Stock Purchase Plan | 47,000 | 55,000 | 51,000 |
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | $35.90 | ||
Weighted average recognition period for unrecognized compensation expense, in years | 1 year 7 months 6 days | ||
Intrinsic value of stock options exercised | 51.2 | 49 | 45.8 |
Number of unissued shares of common stock each DSU represents right to receive | 1 | ||
Fair value of options vested during period | 7.8 | 8.4 | 8.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 7 years | |
2009 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for grant under share-based incentive plans | 9,950,000 | ||
Shares available for grant under share-based incentive plans | 6,578,907 | ||
1997 Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for grant under share-based incentive plans | 1,590,000 | ||
Shares available for grant under share-based incentive plans | 49,564 | ||
Discount from market value for employee stock purchase rights | 15.00% | ||
Stock Options Granted To Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock Units Granted To Employees With Ratable Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Restricted Stock Units Granted To Employees With Cliff Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Units Granted To Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of unvested share-based awards to vest upon change in control | 25% | ||
Fair value of awards vested during period | $15.40 | $12.70 | $13.30 |
Stock Options And Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 1 to 1 | ||
Awards Other Than Stock Options And Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 2 to 1 | ||
Stock Options Granted To Employees With Ratable Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of unvested share-based awards to vest upon change in control | 25% |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule Of Selected Financial Impact Of Share-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit resulting from share-based compensation arrangements | ($6,107) | ($5,584) | ($5,403) |
Net impact of share-based compensation on net income | 11,992 | 10,990 | 10,519 |
Cost Of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 1,937 | 1,841 | 1,770 |
Operating Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 16,162 | 14,733 | 14,152 |
Total Share-Based Compensation Expense Included In Consolidated Statements Of Income [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $18,099 | $16,574 | $15,922 |
ShareBased_Compensation_Schedu1
Share-Based Compensation (Schedule Of Weighted Averages Of The Assumptions Used In Estimating The Fair Value Of Stock Option Awards) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation [Abstract] | |||
Expected stock price volatility | 28.00% | 32.00% | 34.00% |
Expected term, in years | 5 years 8 months 12 days | 4 years 10 months 24 days | 4 years 7 months 6 days |
Risk-free interest rate | 1.50% | 1.00% | 0.80% |
Weighted average fair value of options granted | $36.14 | $27.17 | $26.38 |
ShareBased_Compensation_Schedu2
Share-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-Based Compensation [Abstract] | |
Outstanding as of December 31, 2013 | 2,131 |
Granted | 297 |
Exercised | -585 |
Forfeited | -62 |
Expired | -1 |
Outstanding as of December 31, 2014 | 1,780 |
Fully vested as of December 31, 2014 | 888 |
Fully vested and expected to vest as of December 31, 2014 | 1,710 |
Weighted average exercise price of beginning balance of options outstanding | $63.96 |
Weighted average exercise price of options granted | $123.24 |
Weighted average exercise price of options exercised | $41.63 |
Weighted average exercise price of options forfeited | $92.53 |
Weighted average exercise price of options expired | $91.68 |
Weighted average exercise price of ending balance of options outstanding | $80.16 |
Weighted average exercise price of options fully vested | $63.50 |
Weighted average exercise price of options fully vested and expected to vest | $79.13 |
Weighted average remaining contractual term of ending balance of options outstanding | 4 years 3 months 18 days |
Weighted average remaining contractual term of options fully vested | 2 years 8 months 12 days |
Weighted average remaining contractual term of options fully vested and expected to vest | 4 years 2 months 12 days |
Aggregate Intrinsic Value | $121,250 |
Aggregate intrinsic value of options fully vested | 75,286 |
Aggregate intrinsic value of options expected to vest | $118,220 |
ShareBased_Compensation_Schedu3
Share-Based Compensation (Schedule Of Restricted Stock Unit Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs Outstanding as of December 31, 2013 | 336 |
Granted | 98 |
Vested | -122 |
Forfeited | -23 |
RSUs Outstanding as of December 31, 2014 | 289 |
Weighted Average Grant-Date Fair Value of Beginning Balance of Outstanding Awards as of December 31, 2013 | $76.67 |
Weighted Average Grant-Date Fair Value, Granted | $122.92 |
Weighted Average Grant-Date Fair Value of Awards Vested | $64.71 |
Weighted Average Grant-Date Fair Value of Awards Forfeited | $89.25 |
Weighted Average Grant-Date Fair Value of Ending Balance of Outstanding Awards as of December 31, 2014 | $96.47 |
Restricted Stock Units Expected To Vest, Reduced For Estimated Forfeitures [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs Outstanding as of December 31, 2014 | 267 |
Weighted Average Grant-Date Fair Value of Ending Balance of Outstanding Awards as of December 31, 2014 | $95.97 |
Inventories_Schedule_Of_Compon
Inventories (Schedule Of Components Of Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $26,908 | $23,766 |
Work-in-process | 16,859 | 14,359 |
Finished goods | 116,575 | 95,302 |
Inventories | $160,342 | $133,427 |
Property_And_Equipment_Net_Nar
Property And Equipment, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense of property and equipment | $48.80 | $42.80 | $39.80 |
New Westbrook Administrative Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Current year additions | 19.9 | 13.9 | |
Software Developed For Internal Use [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Current year additions | $11.90 | $10.90 | $12.40 |
Property_And_Equipment_Net_Sch
Property And Equipment, Net (Schedule Of Property And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | $603,935 | $550,015 |
Less accumulated depreciation and amortization | 300,348 | 268,801 |
Total property and equipment, net | 303,587 | 281,214 |
Land And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 7,417 | 7,471 |
Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 159,298 | 158,382 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 45,655 | 39,266 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 183,575 | 162,144 |
Office Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 35,696 | 35,271 |
Computer Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 151,404 | 136,008 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | $20,890 | $11,473 |
Other_Current_and_Noncurrent_A2
Other Current and Noncurrent Assets (Schedule Of Other Current Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current and Noncurrent Assets [Abstract] | ||
Prepaid expenses | $32,672 | $20,810 |
Taxes receivable | 28,926 | 14,910 |
Customer acquisition costs, net | 11,262 | 8,098 |
Other assets | 13,591 | 5,139 |
Other current assets | $86,451 | $48,957 |
Other_Current_and_Noncurrent_A3
Other Current and Noncurrent Assets (Schedule Of Other Noncurrent Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current and Noncurrent Assets [Abstract] | ||
Investment in long-term product supply arrangements | $10,765 | $13,075 |
Customer acquisition costs, net | 28,165 | 21,199 |
Other assets | 32,724 | 22,957 |
Other long-term assets, net | $71,654 | $57,231 |
Goodwil_And_Intangible_Assets_
Goodwil And Intangible Assets, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets, Net [Abstract] | |||
Aggregate amortization expense | $9.80 | $9.70 | $9.80 |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets, Net (Schedule Of Intangible Assets Other Than Goodwill) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $131,402 | $138,288 | ||
Accumulated Amortization | 66,280 | 79,444 | ||
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 4,871 | 9,547 | ||
Accumulated Amortization | 4,308 | 8,619 | ||
Product Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 36,912 | [1] | 38,670 | [1] |
Accumulated Amortization | 20,657 | [1] | 25,796 | [1] |
Customer-Related Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 88,494 | [2] | 82,940 | [2] |
Accumulated Amortization | 40,933 | [2] | 38,800 | [2] |
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | 1,125 | 7,131 | ||
Accumulated Amortization | $382 | $6,229 | ||
[1] | Product rights comprise certain technologies, intellectual property, licenses and trade names acquired from third parties.Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. | |||
[2] | Customer-related intangible assets comprise customer lists and customer relationships acquired from third parties. |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets, Net (Schedule Of Expected Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets, Net [Abstract] | |
2015 | $10,678 |
2016 | 10,332 |
2017 | 9,438 |
2018 | 8,068 |
2019 | 6,560 |
Thereafter | 20,046 |
Total estimated amortization expense to be incurred after December 31, 2014 | $65,122 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets, Net (Schedule Of Goodwill) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segments Of Goodwill [Line Items] | ||||
Beginning balance | $180,521 | $174,994 | $172,610 | |
Business Combinations | 13,077 | 6,741 | ||
Impact of Changes in Foreign Currency Exchange Rates | -9,148 | -1,214 | 2,384 | |
Ending balance | 184,450 | 180,521 | 174,994 | |
CAG [Member] | ||||
Segments Of Goodwill [Line Items] | ||||
Beginning balance | 141,408 | 143,155 | 141,677 | |
Business Combinations | 13,077 | 250 | ||
Impact of Changes in Foreign Currency Exchange Rates | -6,334 | -1,997 | 1,478 | |
Ending balance | 148,151 | 141,408 | 143,155 | |
Water Segment [Member] | ||||
Segments Of Goodwill [Line Items] | ||||
Beginning balance | 14,515 | 14,179 | 13,576 | |
Impact of Changes in Foreign Currency Exchange Rates | -826 | 336 | 603 | |
Ending balance | 13,689 | 14,515 | 14,179 | |
LPD [Member] | ||||
Segments Of Goodwill [Line Items] | ||||
Beginning balance | 18,067 | 11,129 | 10,826 | |
Business Combinations | 6,491 | |||
Impact of Changes in Foreign Currency Exchange Rates | -1,988 | 447 | 303 | |
Ending balance | 16,079 | 18,067 | 11,129 | |
Other Segment [Member] | ||||
Segments Of Goodwill [Line Items] | ||||
Beginning balance | 6,531 | |||
Ending balance | $6,531 | $6,531 | $6,531 | $6,531 |
Accrued_Liabilities_Schedule_O
Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Accrued expenses | $55,655 | $44,274 |
Accrued employee compensation and related expenses | 75,232 | 62,474 |
Accrued taxes | 28,439 | 16,508 |
Accrued customer programs | 36,025 | 25,663 |
Accrued liabilities | $195,351 | $148,919 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 26, 2011 | 9-May-13 | Sep. 30, 2014 | Jul. 31, 2014 | |
Line of Credit Facility [Line Items] | |||||||
Outstanding Credit Facility balance | $549,000,000 | $549,000,000 | $277,000,000 | ||||
Credit Facility weighted average interest rates on outstanding balance | 1.50% | 1.50% | 1.60% | ||||
Reduction of Credit Facility Availability | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Credit Facility borrowings hedged | 80,000,000 | 80,000,000 | |||||
Consolidated Leverage Ratio Under Credit Facility & Note Payable, maximum | 3.5 | ||||||
Long-term Debt | 350,000,000 | 350,000,000 | |||||
Fair value of mortgage at inception | 367,300,000 | 367,300,000 | |||||
Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Commitment fees | 0.35% | ||||||
Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Commitment fees | 0.15% | ||||||
Outdated Unsecured Short Term Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Borrowing capacity | 450,000,000 | ||||||
Amended And Restated Unsecured Short Term Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Borrowing capacity | 700,000,000 | ||||||
Credit Facility maturity date | 18-Jun-19 | ||||||
Minimum Credit Spread On LIBOR Or CDOR Borrowings [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit spread during period | 0.88% | ||||||
Maximum Credit Spread On LIBOR Or CDOR Borrowings [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit spread during period | 1.38% | ||||||
Maximum Credit Spread On Prime Rate Borrowings [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit spread during period | 0.38% | ||||||
Senior Notes [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Consolidated Leverage Ratio Under Credit Facility & Note Payable, maximum | 3.5 | ||||||
Notes Payable | 150,000,000 | 75,000,000 | 125,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | ||||||
Series A Senior Note [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Notes Payable | 75,000,000 | 75,000,000 | 75,000,000 | 50,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | 3.94% | 3.32% | |||
Debt Instrument, Term | 7 years | ||||||
Series B Senior Note [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Notes Payable | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | 3.72% | 4.04% | 3.76% | |||
Debt Instrument, Term | 12 years | ||||||
Uncommitted Shelf Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Notes Payable | $50,000,000 | $50,000,000 | |||||
Uncommitted Shelf Facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Term | 15 years |
Debt_Schedule_Of_Annual_Princi
Debt (Schedule Of Annual Principal Payments On Long-Term Debt) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt [Abstract] | |
Thereafter | $350,000 |
Annual Principal Payments on Long-Term Debt, Total | $350,000 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Tax Rate | 26.20% | 28.70% | 31.60% | |
Income tax ruling exemption | $8,500,000 | $6,500,000 | $6,000,000 | |
Cumulative earnings of non-United States subsidiaries considered to be indefinitely invested outside of United States | 431,700,000 | |||
Unrecognized tax benefits | 5,942,000 | 6,325,000 | 5,906,000 | 5,149,000 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 5,000,000 | 5,700,000 | ||
Interest expense and penalties related to unrecognized tax benefits | 300,000 | 300,000 | 300,000 | |
Interest expense and penalties accrued | 500,000 | 600,000 | ||
Positions for which it is reasonably possible that total amount of unrecognized tax benefits will significantly increase or decrease within 12 months of reporting date | 400,000 | |||
Net operating loss carryforwards in certain state and international jurisdictions | 41,600,000 | |||
Valuation allowance against certain deferred tax assets related to net operating loss carryforwards | $4,700,000 | |||
Tax years no longer subject to U.S. federal examination [Member] | ||||
Years before | 2013 | |||
With few exceptions, tax years no longer subject to state or local and international jurisdicition examination [Member] | ||||
Years before | 2006 | |||
Switzerland [Member] | ||||
Expiration date for tax holidays | 31-Dec-15 | |||
Netherlands [Member] | ||||
Expiration date for tax holidays | 31-Dec-22 |
Income_Taxes_Schedule_Of_Earni
Income Taxes (Schedule Of Earnings Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Domestic | $148,510 | $184,086 | $184,159 |
International | 98,045 | 79,175 | 76,458 |
Income before provision for income taxes | $246,555 | $263,261 | $260,617 |
Income_Taxes_Schedule_Of_Compo
Income Taxes (Schedule Of Components Of Provision (Benefit) For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provision Benefit For Income Taxes [Line Items] | |||
Provision (benefit) for deferred income taxes | $830 | $2,073 | ($1,970) |
Provision for income taxes | 64,604 | 75,467 | 82,330 |
Current [Member] | |||
Provision Benefit For Income Taxes [Line Items] | |||
Federal | 39,713 | 50,999 | 59,887 |
State | 4,692 | 5,639 | 5,879 |
International | 20,213 | 16,657 | 18,534 |
Provision for current income taxes | 64,618 | 73,295 | 84,300 |
Deferred [Member] | |||
Provision Benefit For Income Taxes [Line Items] | |||
Federal | 2,301 | 3,203 | -198 |
State | 33 | 329 | 72 |
International | -2,348 | -1,360 | -1,844 |
Provision (benefit) for deferred income taxes | ($14) | $2,172 | ($1,970) |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State income tax, net of federal tax benefit | 1.50% | 1.50% | 1.50% |
International income taxes | -7.00% | -4.60% | -3.80% |
Domestic manufacturing exclusions | -1.20% | -1.40% | -1.50% |
Research and development credit | -1.30% | -2.30% | |
Other, net | -0.80% | 0.50% | 0.40% |
Effective tax rate | 26.20% | 28.70% | 31.60% |
Income_Taxes_Schedule_Of_Compo1
Income Taxes (Schedule Of Components Of Net Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current [Member] | ||
Assets: | ||
Accrued expenses | $20,377 | $19,833 |
Accounts receivable reserves | 2,591 | 1,153 |
Deferred revenue | 8,697 | 5,872 |
Inventory basis differences | 3,154 | 2,670 |
Share-based compensation | 2,490 | 2,325 |
Other | 171 | 13 |
Net operating loss carryforwards | 65 | 500 |
Unrealized losses on foreign currency exchange contracts, interest rate swaps and investments | 1,580 | |
Total assets | 37,545 | 33,946 |
Valuation allowance | -457 | -642 |
Total assets, net of valuation allowance | 37,088 | 33,304 |
Liabilities: | ||
Other | -610 | -190 |
Unrealized gains on foreign currency exchange | -2,603 | -1,303 |
Total liabilities | -3,213 | -1,493 |
Net deferred tax assets (liabilities) | 33,875 | 31,811 |
Long-Term [Member] | ||
Assets: | ||
Accrued expenses | 7,824 | 1,622 |
Deferred revenue | 3,084 | 1,552 |
Inventory basis differences | 347 | |
Property-based differences | 1,601 | 1,728 |
Share-based compensation | 8,936 | 7,923 |
Other | 255 | 150 |
Net operating loss carryforwards | 4,368 | 4,182 |
Total assets | 26,415 | 17,157 |
Valuation allowance | -4,221 | -4,559 |
Total assets, net of valuation allowance | 22,194 | 12,598 |
Liabilities: | ||
Deferred instrument costs | -10,149 | -3,093 |
Property-based differences | -33,978 | -25,823 |
Intangible assst basis differences | -16,882 | -15,513 |
Other | -517 | -790 |
Total liabilities | -61,526 | -45,219 |
Net deferred tax assets (liabilities) | ($39,332) | ($32,621) |
Income_Taxes_Schedule_Of_Chang
Income Taxes (Schedule Of Changes In Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Total amounts of unrecognized tax benefits, beginning of period | $6,325 | $5,906 | $5,149 |
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 432 | 8 | 290 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 1,789 | 1,954 | 1,436 |
Decreases in unrecognized tax benefits relating to settlements with taxing authorities | -2,242 | -317 | |
Decreases in unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations | -362 | -1,226 | -969 |
Total amounts of unrecognized tax benefits, end of period | $5,942 | $6,325 | $5,906 |
Earnings_Per_Share_Schedule_Of
Earnings Per Share (Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Shares outstanding for basic earnings per share | 50,047 | 53,159 | 54,985 |
Dilutive effect of share-based payment awards | 704 | 826 | 1,170 |
Shares outstanding for diluted earnings per share | 50,751 | 53,985 | 56,155 |
Earnings_Per_Share_Schedule_Of1
Earnings Per Share (Schedule Of Number Of Anti-Dilutive Stock Options) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Weighted average number of shares underlying anti-dilutive options | 322 | 527 | 696 |
Commitments_Contingencies_And_2
Commitments, Contingencies And Guarantees (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Payment Required Upon Termination Of Employment [Line Items] | |||
Rent expense charged to operations | $17,200,000 | $15,800,000 | $15,400,000 |
Minimum royalty payments due through 2027 | 3,300,000 | ||
Contingent commitments, not accrued | 5,500,000 | ||
Business Combination, Contingent Consideration, Liability | 6,300,000 | ||
Total contingent liabilities | 11,800,000 | ||
Purchase Obligation | 11,400,000 | ||
Other Liabilities | 2,500,000 | 3,100,000 | |
Outstanding letters of credit to insurance company as security for workers' compensation claims | 1,300,000 | ||
Period for continued vesting of outstanding equity awards upon termination of CEO without cause other than following a change in control, years | two years | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 3,100,000 | ||
Payment Required To CEO Upon Termination Of Employment Without Cause Other Than Following Change In Control [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
Employee agreement contingencies | 1,600,000 | ||
Payment Required To Officers Upon Termination Of Employment Following Change Of Control [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
Employee agreement contingencies | 24,800,000 | ||
Workers Compensation Insurance Policies [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
Retained claim liability per incident | 300,000 | 250,000 | 250,000 |
Loss contingency, range of possible loss, maximum | 2,300,000 | 2,000,000 | 2,000,000 |
Self Insurance Reserve | 1,400,000 | 1,200,000 | |
Workers Compensation Insurance Policies [Member] | Cumulative Expense for Claims Incurred in 2014 [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
General insurance expense | 1,100,000 | ||
Workers Compensation Insurance Policies [Member] | Cumulative Expense for Claims Incurred in 2013 [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
General insurance expense | 500,000 | ||
Workers Compensation Insurance Policies [Member] | Cumulative Expense For Claims Incurred In 2012 [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
General insurance expense | 600,000 | ||
Employee Health Care Insurance Policy [Member] | |||
Payment Required Upon Termination Of Employment [Line Items] | |||
Retained claim liability per incident | 375,000 | 325,000 | 300,000 |
General insurance expense | 32,000,000 | 29,200,000 | 23,000,000 |
Self Insurance Reserve | $4,100,000 | $4,300,000 |
Commitments_Contingencies_And_3
Commitments, Contingencies And Guarantees (Schedule Of Minimum Annual Rental Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments, Contingencies And Guarantees [Abstract] | |
2015 | $17,228 |
2016 | 15,245 |
2017 | 12,984 |
2018 | 10,048 |
2019 | 6,731 |
Thereafter | 15,256 |
Total minimum annual rental payments | $77,492 |
Segment_Reporting_Summary_Of_S
Segment Reporting (Summary Of Segment Performance) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Number of business segments | 3 | ||||||||||||
Revenue | $351,959 | $383,523 | $390,122 | $360,203 | $354,073 | $338,297 | $352,583 | $332,106 | $1,485,807 | $1,377,058 | $1,293,338 | ||
Income (loss) from operations | 34,801 | 72,189 | 83,219 | 70,046 | 61,328 | 65,485 | 78,763 | 61,188 | 260,255 | 266,762 | 262,563 | ||
Interest expense, net | -13,700 | -3,501 | -1,946 | ||||||||||
Income before provision for income taxes | 246,555 | 263,261 | 260,617 | ||||||||||
Provision for income taxes | 64,604 | 75,467 | 82,330 | ||||||||||
Net income | 181,951 | 187,794 | 178,287 | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 45 | -6 | 20 | ||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 25,961 | 52,142 | 57,218 | 46,585 | 43,258 | 45,688 | 53,995 | 44,860 | 181,906 | 187,800 | 178,267 | ||
Depreciation and amortization | 58,888 | 54,596 | 52,408 | ||||||||||
Expenditures for long-lived assets | 60,523 | [1] | 77,612 | [1] | 57,618 | ||||||||
CAG Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 1,236,855 | 1,150,169 | 1,072,211 | ||||||||||
Income (loss) from operations | 213,109 | 218,645 | 203,236 | ||||||||||
Depreciation and amortization | 48,740 | 45,079 | 43,042 | ||||||||||
Expenditures for long-lived assets | 49,270 | [1] | 66,134 | [1] | 47,531 | ||||||||
Water Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 94,725 | 87,959 | 84,680 | ||||||||||
Income (loss) from operations | 39,262 | 37,321 | 37,687 | ||||||||||
Depreciation and amortization | 2,553 | 2,470 | 2,358 | ||||||||||
Expenditures for long-lived assets | 2,499 | [1] | 3,254 | [1] | 2,099 | ||||||||
LPD Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 127,388 | 113,811 | 111,308 | ||||||||||
Income (loss) from operations | 24,215 | 14,159 | 20,808 | ||||||||||
Depreciation and amortization | 5,144 | 4,906 | 4,943 | ||||||||||
Expenditures for long-lived assets | 4,025 | [1] | 5,569 | [1] | 5,767 | ||||||||
Other Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue | 26,839 | 25,119 | 25,139 | ||||||||||
Income (loss) from operations | 2,479 | 2,405 | 2,902 | ||||||||||
Depreciation and amortization | 2,451 | 2,141 | 2,065 | ||||||||||
Expenditures for long-lived assets | 4,729 | [1] | 2,655 | [1] | 2,221 | ||||||||
Unallocated Amounts [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Income (loss) from operations | ($18,810) | ($5,768) | ($2,070) | ||||||||||
[1] | Expenditures for long-lived assets exclude expenditures for intangible assets. See Note 3 for information regarding acquisitions of intangible assets during the years ended December 31, 2014, 2013 and 2012. |
Segment_Reporting_Summary_Of_R
Segment Reporting (Summary Of Revenue By Product And Service Category) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $351,959 | $383,523 | $390,122 | $360,203 | $354,073 | $338,297 | $352,583 | $332,106 | $1,485,807 | $1,377,058 | $1,293,338 |
CAG Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,236,855 | 1,150,169 | 1,072,211 | ||||||||
CAG Segment [Member] | CAG Diagnostics Recurring Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,053,410 | 973,886 | 896,449 | ||||||||
CAG Segment [Member] | Vetlab Consumables [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 341,397 | 312,457 | 278,818 | ||||||||
CAG Segment [Member] | VetLab Service and Accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 53,383 | 50,675 | 48,056 | ||||||||
CAG Segment [Member] | Rapid Assay Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 165,647 | 169,547 | 162,232 | ||||||||
CAG Segment [Member] | Reference Laboratory Diagnostic And Consulting Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 492,983 | 441,207 | 407,343 | ||||||||
CAG Segment [Member] | CAG Diagnostic Capital - Instruments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 79,626 | 83,492 | 90,177 | ||||||||
CAG Segment [Member] | Customer Information Managment and Digital Imaging Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 103,819 | 92,791 | 85,585 | ||||||||
Water Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 94,725 | 87,959 | 84,680 | ||||||||
LPD Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 127,388 | 113,811 | 111,308 | ||||||||
Other Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $26,839 | $25,119 | $25,139 |
Segment_Reporting_Schedule_Of_
Segment Reporting (Schedule Of Revenue By Principal Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $351,959 | $383,523 | $390,122 | $360,203 | $354,073 | $338,297 | $352,583 | $332,106 | $1,485,807 | $1,377,058 | $1,293,338 |
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 952,757 | 899,185 | 848,725 | ||||||||
Americas [Member] | United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 848,928 | 802,345 | 759,419 | ||||||||
Americas [Member] | Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 69,743 | 69,947 | 66,405 | ||||||||
Americas [Member] | Latin America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 34,086 | 26,893 | 22,901 | ||||||||
Europe, The Middle East And Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 366,390 | 326,685 | 300,638 | ||||||||
Europe, The Middle East And Africa [Member] | Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 85,189 | 78,109 | 72,983 | ||||||||
Europe, The Middle East And Africa [Member] | United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 74,131 | 65,027 | 64,412 | ||||||||
Europe, The Middle East And Africa [Member] | France [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 53,322 | 49,093 | 45,927 | ||||||||
Europe, The Middle East And Africa [Member] | Italy [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 28,794 | 26,443 | 24,625 | ||||||||
Europe, The Middle East And Africa [Member] | Spain [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 21,566 | 20,194 | 19,776 | ||||||||
Europe, The Middle East And Africa [Member] | Switzerland [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 14,544 | 12,246 | 12,967 | ||||||||
Europe, The Middle East And Africa [Member] | Other Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 88,844 | 75,573 | 59,948 | ||||||||
Asia Pacific Region [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 166,660 | 151,188 | 143,975 | ||||||||
Asia Pacific Region [Member] | Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 58,448 | 53,063 | 50,658 | ||||||||
Asia Pacific Region [Member] | Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 44,132 | 44,869 | 49,204 | ||||||||
Asia Pacific Region [Member] | China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 34,674 | 29,044 | 24,628 | ||||||||
Asia Pacific Region [Member] | Other Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $29,406 | $24,212 | $19,485 |
Segment_Reporting_Schedule_Of_1
Segment Reporting (Schedule Of Net Long-Lived Assets By Principal Geographic Areas) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | $303,587 | $281,214 |
Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 267,951 | 248,494 |
Americas [Member] | United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 262,475 | 245,511 |
Americas [Member] | Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 3,206 | 869 |
Americas [Member] | Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 2,270 | 2,114 |
Europe, The Middle East And Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 30,135 | 29,041 |
Europe, The Middle East And Africa [Member] | United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 14,366 | 12,959 |
Europe, The Middle East And Africa [Member] | Germany [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 4,836 | 5,733 |
Europe, The Middle East And Africa [Member] | France [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 3,172 | 3,127 |
Europe, The Middle East And Africa [Member] | Netherlands [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 3,456 | 2,956 |
Europe, The Middle East And Africa [Member] | Switzerland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 2,631 | 3,076 |
Europe, The Middle East And Africa [Member] | Other Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 1,674 | 1,190 |
Asia Pacific Region [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 5,501 | 3,679 |
Asia Pacific Region [Member] | Japan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 2,204 | 690 |
Asia Pacific Region [Member] | Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | 1,789 | 1,801 |
Asia Pacific Region [Member] | Other Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Assets | $1,508 | $1,188 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) (Measured At Fair Value On Recurring Basis [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Money Market Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | $204,743 | [1] | $153,109 | [1] |
Money Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | 204,743 | [1] | 153,109 | [1] |
Equity Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | 2,654 | [2] | 2,847 | [2] |
Equity Mutual Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | 2,654 | [2] | 2,847 | [2] |
Foreign Currency Exchange Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | 12,226 | [3] | 4,044 | [3] |
Fair value of Liabilities | 1,323 | [3] | 3,096 | [3] |
Foreign Currency Exchange Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Assets | 12,226 | [3] | 4,044 | [3] |
Fair value of Liabilities | 1,323 | [3] | 3,096 | [3] |
Deferred Compensation [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Liabilities | 2,654 | [4] | 2,847 | [4] |
Deferred Compensation [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Liabilities | 2,654 | [4] | 2,847 | [4] |
Interest Rate Swaps [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Liabilities | 1,117 | 1,821 | [5] | |
Interest Rate Swaps [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Liabilities | $1,117 | $1,821 | [5] | |
[1] | Money market funds are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2014 and December 31, 2013 consisted of demand deposits. | |||
[2] | Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets, net. See number (4) below for a discussion of the related deferred compensation liability. | |||
[3] | Foreign currency exchange contracts are included within other current assets or accrued liabilities depending on the gain (loss) position. | |||
[4] | A deferred compensation plan assumed as part of a business combination is included within other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in number (2) above. | |||
[5] | Interest rate swaps are included within accrued liabilities. |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | ||
Estimated net amount of gains expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | $7,400,000 | |
General duration of foreign currency exchange contracts | 2 years | |
Credit Facility borrowings hedged | 80,000,000 | |
Notional Amount of Foreign Currency Exchange Contracts | 186,700,000 | 168,300,000 |
Interest Rate Swap Effective On March 30, 2012 [Member] | ||
Derivative [Line Items] | ||
Fixed portion of interest rate associated with interest rate swap | 1.36% | |
Credit Facility borrowings hedged | 40,000,000 | |
Interest Rate Swap Effective On March 30, 2010 [Member] | ||
Derivative [Line Items] | ||
Fixed portion of interest rate associated with interest rate swap | 2.00% | |
Credit Facility borrowings hedged | 80,000,000 | |
Interest Rate Swap Effective On March 28, 2013 [Member] | ||
Derivative [Line Items] | ||
Fixed portion of interest rate associated with interest rate swap | 1.64% | |
Credit Facility borrowings hedged | $40,000,000 |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging (Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments) (Details) (Derivatives Designated As Hedging Instruments [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, fair value of liabilities | $2,440 | $4,917 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 1,323 | 2,965 |
Derivative Asset | 10,903 | 1,079 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1,323 | 2,965 |
Derivative Liability | 1,117 | 1,952 |
Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, fair value of assets | 12,226 | 4,044 |
Foreign Currency Exchange Contracts [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, fair value of liabilities | 1,323 | 3,096 |
Interest Rate Swaps [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments, fair value of liabilities | $1,117 | $1,821 |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging (Gain (Loss) Recognized In Other Comprehensive Income On Derivative Instruments (Effective Portion)) (Details) (Cash Flow Hedges [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion), Net of Tax | $7,540 | $1,891 | ($5,276) |
Foreign Currency Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion), Net of Tax | 7,098 | 1,350 | -4,481 |
Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion), Net of Tax | $442 | $541 | ($795) |
Repurchases_Of_Common_Stock_De
Repurchases Of Common Stock (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Repurchases Of Common Stock [Abstract] | |||
Shares of common stock repurchases authorized | 57,000,000 | ||
Remaining shares available for repurchase under authorization | 3,081,303 | ||
Shares repurchased | 4,881,000 | 3,952,000 | 1,474,000 |
Total cost of shares repurchased | $618,158 | $367,761 | $132,268 |
Average cost per share | $126.66 | $93.06 | $89.72 |
Shares acquired through employee surrenders | 46,190 | 49,475 | 53,272 |
Cost of shares acquired through employee surrenders | $5,809 | $4,548 | $4,662 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income [Abstract] | |||
Beginning balance, Unrealized Gain on Investments, Net of Tax | $108 | ($171) | |
Beginning balance, Unrealized Loss on Derivative Instruments, Net of Tax | -179 | -2,070 | |
Beginning balance, Cumulative Translation Adjustment | 13,693 | 18,195 | |
Other comprehensive income (loss) before reclassifications, Unrealized Gain on Investments, Net of Tax | -107 | 279 | 116 |
Other comprehensive income (loss) before reclassifications, Unrealized Loss on Derivative Instruments, Net of Tax | 9,542 | 3,781 | -1,651 |
Other comprehensive income (loss) before reclassifications, Cumulative Translation Adjustment | -29,126 | -4,502 | 5,671 |
Gains reclassified from accumulated other comprehensive income, Unrealized Loss on Derivative Instruments, Net of Tax | -2,002 | -1,890 | -3,625 |
Ending balance, Unrealized Gain on Investments, Net of Tax | 1 | 108 | -171 |
Ending balance, Unrealized Gain on Derivative Instruments, Net of Tax | 7,361 | -179 | -2,070 |
Ending balance, Cumulative Translation Adjustment | -15,433 | 13,693 | 18,195 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | 13,622 | 15,954 | |
Accumulated Other Comprehensive Income, before Tax | -19,691 | -442 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -2,002 | -1,890 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | ($8,071) | $13,622 | $15,954 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provision for income taxes | $64,604 | $75,467 | $82,330 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,002 | 1,890 | |
Reclassifications out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,758 | 2,569 | 5,248 |
Provision for income taxes | 756 | 679 | 1,623 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,002 | 1,890 | 3,625 |
Interest Rate Swaps [Member] | Reclassifications out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -1,064 | -900 | -690 |
Foreign Currency Exchange Contracts [Member] | Reclassifications out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $3,822 | $3,469 | $5,938 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | Dec. 31, 2014 |
Preferred Stock [Abstract] | |
Shares of preferred stock authorized | 500,000 |
Par value per share | $1 |
Preferred Stock outstanding | 0 |
IDEXX_Retirement_And_Incentive1
IDEXX Retirement And Incentive Savings Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
401(k) Plan [Member] | |||
Retirement And Incentive Savings Plan [Line Items] | |||
Employer contributions | $8.80 | $7.80 | $7.10 |
Discretionary contributions | 0 | 0 | 0 |
European And Canadian Based Defined Contribution Plan [Member] | |||
Retirement And Incentive Savings Plan [Line Items] | |||
Employer contributions | $3.70 | $3.10 | $2.80 |
Disposition_Of_Pharmaceutical_1
Disposition Of Pharmaceutical Product Lines And Restructuring (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | |
Disposition Of Pharmaceutical Product Lines And Restructuring [Line Items] | ||||||||
Proceeds from disposition of pharmaceutical product lines | $3,500,000 | $3,000,000 | ||||||
Acarexx And SURPASS Products And Feline Insulin Product Under Development [Member] | ||||||||
Disposition Of Pharmaceutical Product Lines And Restructuring [Line Items] | ||||||||
Proceeds from disposition of pharmaceutical product lines | 1,400,000 | 7,000,000 | ||||||
Royalty Bearing License Agreement [Member] | ||||||||
Disposition Of Pharmaceutical Product Lines And Restructuring [Line Items] | ||||||||
Proceeds from disposition of pharmaceutical product lines | 300,000 | |||||||
Milestone payment earned | 300,000 | 1,600,000 | 300,000 | |||||
Feline Insulin Product [Member] | ||||||||
Disposition Of Pharmaceutical Product Lines And Restructuring [Line Items] | ||||||||
Milestone payment earned | 3,500,000 | 3,000,000 | 2,000,000 | 3,000,000 | ||||
Feline Insulin Product Total Potential Milestone Payments [Member] | ||||||||
Disposition Of Pharmaceutical Product Lines And Restructuring [Line Items] | ||||||||
Potential milestone payments | $11,500,000 |
Summary_Of_Quarterly_Data_Deta
Summary Of Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary Of Quarterly Data [Abstract] | |||||||||||
Revenue | $351,959 | $383,523 | $390,122 | $360,203 | $354,073 | $338,297 | $352,583 | $332,106 | $1,485,807 | $1,377,058 | $1,293,338 |
Gross profit | 182,165 | 213,336 | 218,518 | 202,097 | 188,665 | 185,783 | 197,698 | 183,974 | 816,116 | 756,118 | 699,148 |
Operating income | 34,801 | 72,189 | 83,219 | 70,046 | 61,328 | 65,485 | 78,763 | 61,188 | 260,255 | 266,762 | 262,563 |
Net income attributable to stockholders | $25,961 | $52,142 | $57,218 | $46,585 | $43,258 | $45,688 | $53,995 | $44,860 | $181,906 | $187,800 | $178,267 |
Earnings per Share: | |||||||||||
Basic | $0.54 | $1.05 | $1.12 | $0.90 | $0.83 | $0.87 | $1.01 | $0.82 | $3.63 | $3.53 | $3.24 |
Diluted | $0.54 | $1.03 | $1.10 | $0.89 | $0.82 | $0.86 | $0.99 | $0.81 | $3.58 | $3.48 | $3.17 |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reserves For Doubtful Accounts Receivable [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $3,533 | $2,632 | $3,239 | |
Charges to Costs and Expenses | 2,035 | 1,601 | 1,108 | |
Write-Offs/Cash Payments | -1,146 | -762 | -1,732 | |
Foreign Currency Translation | -116 | 62 | 17 | |
Balance at End of Year | 4,306 | 3,533 | 2,632 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 5,201 | 4,547 | 4,614 | |
Charges to Costs and Expenses | 799 | 735 | 265 | |
Valuation Allowances and Reserves, Charged to Other Accounts | 742 | [1] | ||
Write-Offs/Cash Payments | -1,042 | -701 | -358 | |
Foreign Currency Translation | -280 | -122 | 26 | |
Balance at End of Year | $4,678 | $5,201 | $4,547 | |
[1] | Amount relates to net operating losses obtained through acquisitions where uncertainty exists as to our ability to use the tax attribute. |