Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-19271 | |
Entity Registrant Name | IDEXX LABORATORIES INC /DE | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 01-0393723 | |
Entity Address, Address Line One | One IDEXX Drive | |
Entity Address, City or Town | Westbrook | |
Entity Address, State or Province | ME | |
Entity Address, Postal Zip Code | 04092 | |
City Area Code | 207 | |
Local Phone Number | 556-0300 | |
Title of 12(b) Security | Common Stock, $0.10 par value per share | |
Trading Symbol | IDXX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Outstanding (in shares) | 83,004,936 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000874716 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 111,367 | $ 112,546 |
Accounts receivable, net | 446,025 | 400,619 |
Inventories | 391,011 | 367,823 |
Other current assets | 201,043 | 220,489 |
Total current assets | 1,149,446 | 1,101,477 |
Long-Term Assets: | ||
Property and equipment, net | 665,439 | 649,474 |
Operating lease right-of-use assets | 115,060 | 118,618 |
Goodwill | 362,942 | 361,795 |
Intangible assets, net | 94,361 | 97,672 |
Other long-term assets | 421,150 | 417,729 |
Total long-term assets | 1,658,952 | 1,645,288 |
TOTAL ASSETS | 2,808,398 | 2,746,765 |
Current Liabilities: | ||
Accounts payable | 117,709 | 110,221 |
Accrued liabilities | 403,595 | 433,662 |
Credit facility | 431,500 | 579,000 |
Current portion of long-term debt | 74,986 | 74,982 |
Current portion of deferred revenue | 37,839 | 37,938 |
Total current liabilities | 1,065,629 | 1,235,803 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 5,826 | 8,150 |
Long-term debt, net of current portion | 696,362 | 694,387 |
Long-term deferred revenue, net of current portion | 30,439 | 30,862 |
Long-term operating lease liabilities | 98,177 | 101,239 |
Other long-term liabilities | 70,864 | 67,587 |
Total long-term liabilities | 901,668 | 902,225 |
Total liabilities | 1,967,297 | 2,138,028 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 107,321 shares in 2023 and 107,193 shares in 2022; Outstanding: 83,004 shares in 2023 and 82,894 shares in 2022 | 10,732 | 10,719 |
Additional paid-in capital | 1,489,903 | 1,463,215 |
Deferred stock units: Outstanding: 58 units in 2023 and 58 units in 2022 | 5,164 | 5,182 |
Retained earnings | 3,813,583 | 3,599,529 |
Accumulated other comprehensive loss | (76,615) | (77,796) |
Treasury stock, at cost: 24,318 shares in 2023 and 24,299 shares in 2022 | (4,401,666) | (4,392,112) |
Total stockholders’ equity | 841,101 | 608,737 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,808,398 | $ 2,746,765 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 107,321,000 | 107,193,000 |
Common stock, shares outstanding (in shares) | 83,004,000 | 82,894,000 |
Deferred stock units, outstanding (in shares) | 58,000 | 58,000 |
Treasury stock, shares (in shares) | 24,318,000 | 24,299,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Total revenue | $ 900,195 | $ 836,549 |
Cost of Revenue: | ||
Cost of revenue | 357,224 | 337,796 |
Gross profit | 542,971 | 498,753 |
Expenses: | ||
Sales and marketing | 147,804 | 132,292 |
General and administrative | 70,101 | 77,949 |
Research and development | 44,667 | 40,168 |
Income from operations | 280,399 | 248,344 |
Interest expense | (13,127) | (6,996) |
Interest income | 416 | 143 |
Income before provision for income taxes | 267,688 | 241,491 |
Provision for income taxes | 53,634 | 47,526 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ 214,054 | $ 193,965 |
Earnings per Share: | ||
Basic (in USD per share) | $ 2.58 | $ 2.30 |
Diluted (in USD per share) | $ 2.55 | $ 2.27 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 82,992 | 84,410 |
Diluted (in shares) | 83,959 | 85,564 |
Product revenue | ||
Revenue: | ||
Total revenue | $ 505,942 | $ 478,377 |
Cost of Revenue: | ||
Cost of revenue | 173,610 | 162,071 |
Service revenue | ||
Revenue: | ||
Total revenue | 394,253 | 358,172 |
Cost of Revenue: | ||
Cost of revenue | $ 183,614 | $ 175,725 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 214,054 | $ 193,965 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 4,258 | 3,277 |
Reclassification adjustment for benefit plans included in net income, net of tax of $20 in 2023 and $— in 2022 | 119 | 0 |
Unrealized gain (loss) on Euro-denominated notes, net of tax expense (benefit) of $(465) in 2023 and $439 in 2022 | (1,490) | 1,409 |
Unrealized gain (loss) on investments, net of tax expense (benefit) of $2 in 2023 and $(5) in 2022 | 6 | (17) |
Unrealized gain (loss) on derivative instruments: | ||
Unrealized gain (loss) on foreign currency exchange contracts, net of tax expense (benefit) of $(26) in 2023 and $1,436 in 2022 | (209) | 2,097 |
Unrealized gain (loss) on cross currency swaps, net of tax expense (benefit) of $(387) in 2023 and $311 in 2022 | (1,240) | 996 |
Unrealized (loss) on interest rate swap, net of tax (benefit) of $(14) in 2023 and $— in 2022 | (45) | 0 |
Reclassification adjustments for (gain) included in net income, net of tax benefit (expense) of $(117) in 2023 and $(610) in 2022 | (218) | (1,626) |
Unrealized gain (loss) on derivative instruments | (1,712) | 1,467 |
Other comprehensive income, net of tax | 1,181 | 6,136 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ 215,235 | $ 200,101 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification adjustment for benefit plans included in net income, net of tax | $ 20 | $ 0 |
Unrealized gain (loss) on Euro-denominated notes, tax expense (benefit) | (465) | 439 |
Unrealized gain (loss) on investments, tax expense (benefit) | 2 | (5) |
Unrealized gain (loss) on foreign currency exchange contracts, tax expense (benefit) | (26) | 1,436 |
Unrealized gain (loss) on cross currency swaps, tax expense (benefit) | (387) | 311 |
Unrealized (loss) on interest rate swap, tax (benefit) | (14) | 0 |
Reclassification adjustment for (gain) included in net income, tax benefit (expense) | $ (117) | $ (610) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Balance beginning of period (in shares) at Dec. 31, 2021 | 106,878 | ||||||
Balance beginning of period at Dec. 31, 2021 | $ 689,992 | $ 10,688 | $ 1,377,320 | $ 5,719 | $ 2,920,440 | $ (53,484) | $ (3,570,691) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 193,965 | 193,965 | |||||
Other comprehensive income, net | 6,136 | 6,136 | |||||
Repurchases of common stock, net | (273,058) | (273,058) | |||||
Common stock issued under stock plans, including excess tax benefit (in shares) | 125 | ||||||
Common stock issued under stock plans, including excess tax benefit | 11,590 | $ 12 | 11,583 | (5) | |||
Share-based compensation cost | 11,173 | 11,122 | 51 | ||||
Balance end of period (in shares) at Mar. 31, 2022 | 107,003 | ||||||
Balance end of period at Mar. 31, 2022 | $ 639,798 | $ 10,700 | 1,400,025 | 5,765 | 3,114,405 | (47,348) | (3,843,749) |
Balance beginning of period (in shares) at Dec. 31, 2022 | 107,193 | 107,193 | |||||
Balance beginning of period at Dec. 31, 2022 | $ 608,737 | $ 10,719 | 1,463,215 | 5,182 | 3,599,529 | (77,796) | (4,392,112) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 214,054 | 214,054 | |||||
Other comprehensive income, net | 1,181 | 1,181 | |||||
Repurchases of common stock, net | (9,554) | (9,554) | |||||
Common stock issued under stock plans, including excess tax benefit (in shares) | 128 | ||||||
Common stock issued under stock plans, including excess tax benefit | 12,753 | $ 13 | 12,765 | (25) | |||
Share-based compensation cost | $ 13,930 | 13,923 | 7 | ||||
Balance end of period (in shares) at Mar. 31, 2023 | 107,321 | 107,321 | |||||
Balance end of period at Mar. 31, 2023 | $ 841,101 | $ 10,732 | $ 1,489,903 | $ 5,164 | $ 3,813,583 | $ (76,615) | $ (4,401,666) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 214,054 | $ 193,965 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,331 | 26,511 |
Provision for credit losses | 2,325 | 2,092 |
Deferred income taxes | (3,757) | (5,028) |
Share-based compensation expense | 13,930 | 11,173 |
Other | (362) | 235 |
Changes in assets and liabilities: | ||
Accounts receivable | (44,133) | (37,531) |
Inventories | (23,887) | (18,854) |
Other assets and liabilities | (5,307) | (52,904) |
Accounts payable | 3,327 | (4,016) |
Deferred revenue | (609) | (937) |
Net cash provided by operating activities | 183,912 | 114,706 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (39,511) | (31,838) |
Acquisition of intangible assets | 0 | (10,000) |
Net cash used by investing activities | (39,511) | (41,838) |
Cash Flows from Financing Activities: | ||
(Repayments) borrowings under credit facility, net | (147,500) | 326,500 |
Payment of senior debt | 0 | (75,000) |
Payments of acquisition-related holdbacks | (1,780) | 0 |
Repurchases of common stock, net | 0 | (266,295) |
Proceeds from exercises of stock options and employee stock purchase plans | 12,796 | 11,653 |
Shares withheld for statutory tax withholding payments on restricted stock | (9,597) | (10,338) |
Net cash used by financing activities | (146,081) | (13,480) |
Net effect of changes in exchange rates on cash | 501 | 776 |
Net decrease in cash and cash equivalents | (1,179) | 60,164 |
Cash and cash equivalents at beginning of period | 112,546 | 144,454 |
Cash and cash equivalents at end of period | 111,367 | 204,618 |
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | 7,200 | 11,400 |
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | $ 12,453 | $ 11,016 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying unaudited condensed consolidated financial statements of IDEXX Laboratories, Inc. and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial information and with the requirements of Regulation S-X, Rule 10-01 for financial statements required to be filed as a part of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “IDEXX,” the “Company,” “we,” “our,” or “us” refer to IDEXX Laboratories, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements include the accounts of IDEXX Laboratories, Inc. and our wholly-owned and majority-owned subsidiaries. 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. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of our management, all adjustments necessary for a fair statement of our financial position and results of operations. All such adjustments are of a recurring nature. The condensed consolidated balance sheet data as of December 31, 2022, was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and our Annual Report on Form 10-K for the year ended December 31, 2022, (the “2022 Annual Report”) filed with the SEC. The preparation of our condensed consolidated financial statements requires us to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues, and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. We have included certain terms and abbreviations used throughout this Quarterly Report on Form 10-Q in the “Glossary of Terms and Selected Abbreviations.” |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Significant Accounting Policies The significant accounting policies used in preparation of these unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2023, are consistent with those discussed in “Note 2. Summary of Significant Accounting Policies” to the consolidated financial statements in our 2022 Annual Report, and as updated below. Accounts Payable - Supplier Financing Program We have an agreement with a third party to provide a supplier finance program, which facilitates participating suppliers’ ability to finance payment obligations from us with a designated third-party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more of our payment obligations prior to their scheduled due dates at a discounted price. Our obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under these arrangements. The terms of payments are in-line with the terms of our trade payables. The amount of payment obligations outstanding at the end of December 31, 2022, was $10.2 million. The roll-forward of our outstanding payment obligations under this arrangement, which are included in accounts payable on the unaudited condensed consolidated balance sheets, are as follows: (in thousands) For the Three Months Ended 2023 2022 Payment obligations outstanding at the beginning of the period $ 10,171 $ 4,775 Payment obligations during the period 13,031 13,341 Payment obligation paid during the period (15,666) (12,752) Payment obligations outstanding at the end of the period $ 7,536 $ 5,364 New Accounting Pronouncements Adopted We adopted ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” as of January 1, 2023, which adds certain disclosure requirements for a buyer in a supplier finance program. The amendments in this update require that a buyer in a supplier finance program discloses sufficient information about the program to allow a user of financial statements to understand the program's nature, activity during the period, changes from period to period, and potential magnitude. We adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities,” as of January 1, 2023. ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Our revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To accurately present the consideration received in exchange for promised products or services, we apply the five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations 5. Recognition of revenue when, or as, we satisfy a performance obligation We enter into contracts where customers purchase combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The timing of revenue recognition, billings, and cash collections results in accounts receivable, lease receivables, and contract assets as a result of revenue recognized in advance of billings, and contract liabilities or deferred revenue as a result of receiving consideration in advance of revenue recognition within our unaudited condensed consolidated balance sheet. Our general payment terms range from 30 to 60 days, with exceptions in certain geographies. Contracts may be amended to account for changes in contract specifications and requirements. Contract modifications exist when the amendment either creates new, or changes existing, enforceable rights and obligations. A modification is considered to be a separate contract, and revenue is recognized prospectively, when the modification creates new performance obligations to deliver additional goods or services and the related increase in consideration approximates the standalone selling price for the additional goods or services. If a contract modification does not create a new performance obligation to deliver new goods and/or services but the goods and/or services to be delivered after the contract modification date are distinct from the goods and/or services delivered on or before the contract modification date, then this contract modification is not accounted for as a separate contract, and we account for the goods and/or services to be delivered after the contract modification date prospectively. We account for a contract modification as if it were a part of the existing contract if the remaining goods or services are not distinct and, therefore, form part of a single performance obligation that is partially satisfied at the date of the contract modification. The effect that these contract modifications have on the transaction price, and on our measure of progress toward complete satisfaction of the performance obligation, is recognized as an adjustment to revenue at the date of the contract modification, with the adjustment to revenue made on a cumulative catch-up basis. Below is a listing of our major categories of revenue for our products and services: Diagnostic Products and Accessories . Diagnostic products and accessories revenues, including IDEXX VetLab® consumables and accessories, rapid assay, LPD, Water, and OPTI testing products, are predominantly recognized and invoiced at the time of shipment, which is when the customer obtains control of the product based on legal title transfer and we have the right to payment. We also provide customers with certain consumables that are recognized upon utilization by the customer, which is when we have the right to payment and the risks and rewards of ownership transfer. Shipping costs reimbursed by the customer are included in revenue and cost of sales. As a practical expedient, we do not account for shipping activities as a separate performance obligation. Laboratory Diagnostic and Consulting Services . Laboratory diagnostic and consulting services revenues are recognized and invoiced when the laboratory diagnostic service is performed. Instruments, Software and Systems . CAG Diagnostics capital instruments, veterinary software, and diagnostic imaging systems revenues are recognized and invoiced when the customer obtains control of the products based on legal title transfer and we have the right to payment, which generally occurs at the time of installation and customer acceptance. Our instruments, software, and systems are often included in one of our significant customer programs, as further described below. For veterinary software systems that include multiple performance obligations, such as perpetual software licenses and computer hardware, we allocate revenue to each performance obligation based on estimates of the price that we would charge the customer for each promised product or service if it were sold on a standalone basis. Lease Revenue . Revenues from instrument rental agreements and reagent rental programs are recognized either as operating leases on a ratable basis over the term of the agreement or as sales-type leases at the time of installation and customer acceptance. Customers typically pay for the right to use instruments under rental agreements in equal monthly amounts over the term of the rental agreement. Our reagent rental programs provide our customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded lease for the right to use our instruments. For some agreements, the customers are provided with the right to purchase the instrument at the end of the lease term. Lease revenues from these agreements are presented in product revenue on our unaudited condensed consolidated income statement. Lease revenue was approximately $4.5 million for the three months ended March 31, 2023, as compared to $5.0 million for the three months ended March 31, 2022, including both operating leases and sales-type leases under ASC 842, Leases, for leases entered into after January 1, 2019, and ASC 840, “Leases,” for leases entered into prior to 2019. Refer to below for revenue recognition under our reagent rental programs. Extended Warranties and Post-Contract Support . CAG Diagnostics capital instruments and diagnostic imaging systems extended warranties typically provide customers with continued coverage for a period of one warranties over time on a ratable basis using a time-elapsed measure of performance over the contract term, which approximates the expected timing in which applicable services are performed. Veterinary software post-contract support provides customers with access to technical support when and as needed through access to call centers and online customer assistance. Post-contract support contracts typically have a term of 12 months and customers are billed for post-contract support in equal quarterly amounts over the term. We recognize revenue for post-contract support services over time on a ratable basis using a time-elapsed measure of performance over the contract term, which approximates the expected timing in which applicable services are performed. On December 31, 2022, our deferred revenue related to extended warranties and post-contract support was $26.4 million, of which approximately $15.1 million were recognized during the three months ended March 31, 2023. Furthermore, as a result of new agreements, our deferred revenue related to extended warranties and post-contract support was $26.3 million as of March 31, 2023. We do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less and do not adjust for the effect of the financing components when the period between customer payment and revenue recognition is one year or less. De ferred revenue related to extended warranties and post-contract support with an original duration of more than one year was $10.2 million as of March 31, 2023, of which approximately 36%, 34%, 17%, 8%, and 5% are expected to be recognized during the remainder of 2023, the full years 2024, 2025, 2026, and thereafter, respectively. Additio nally, we have determined these agreements do not include a significant financing component. SaaS Subscriptions . We offer a variety of veterinary software and diagnostic imaging SaaS subscriptions including ezyVet ® , Animana ® , Neo ® , Cornerstone ® Cloud, Pet Health Network ® Pro, Petly ® Plans, Web PACS, rVetLink ® , and Smart Flow ™ . We recognize revenue for our SaaS subscriptions over time on a ratable basis over the contract term, beginning on the date our service is made available to the customer. Our subscription contracts vary in term from monthly to two years. Customers typically pay for our subscription contracts in equal monthly amounts over the term of the agreement. Deferred revenue related to our SaaS subscriptions is not material. Contracts with Multiple Performance Obligations . We enter into contracts with multiple performance obligations where customers purchase a combination of IDEXX products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires significant judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services. To the extent the transaction price includes variable consideration, such as volume rebates or expected price adjustments, we apply judgment in constraining the estimated variable consideration due to factors that may cause reversal of revenue recognized. We evaluate constraints based on our historical and projected experience with similar customer contracts. We allocate revenue to each performance obligation in proportion to the relative standalone selling prices, and recognize revenue when transfer of the related goods or services has occurred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the promised product or service when sold separately. When standalone selling prices for our products or services are not directly observable, we determine the standalone selling prices using relevant information available and apply suitable estimation methods including, but not limited to, the cost plus a margin approach. We recognize revenue as each performance obligation is satisfied, either at a point in time or over time, as described in the revenue categories above. We do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less. The following customer programs represent our most significant customer contracts that contain multiple performance obligations: Customer Commitment Programs . We offer customer incentives upon entering into multi-year agreements to purchase annual minimum amounts of products and services. Up-Front Customer Loyalty Programs . Our up-front loyalty programs provide customers with incentives in the form of cash payments or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services. If a customer breaches their agreement, they are required to refund all or a portion of the up-front cash or IDEXX Points, or make other repayments, remedial actions, or both. Up-front incentives to customers in the form of cash or IDEXX Points are not made in exchange for distinct goods or services and are capitalized as customer acquisition costs within other current and long-term assets, which are subsequently recognized as a reduction to revenue over the term of the customer agreement. If these up-front incentives are subsequently utilized to purchase instruments, we allocate total consideration, including future committed purchases less up-front incentives and estimates of expected price adjustments, based on relative standalone selling prices to identified performance obligations and recognize instrument revenue and cost at the time of installation and customer acceptance. To the extent invoiced instrument revenue exceeds recognized instrument revenue, we record deferred revenue as a contract liability, which is subsequently recognized upon the purchase of products and services over the term of the contract. We have determined these agreements do not include a significant financing component. Differences between estimated and actual customer purchases may impact the timing and amount of revenue recognition. On December 31, 2022, our capitalized customer acquisition costs were $158.0 million, of which approximately $13.4 million were recognized as a reduction of revenue during the three months ended March 31, 2023. Furthermore, as a result of new up-front customer loyalty payments, net of subsequent recognition, our capitalized customer acquisition costs were $158.9 million as of March 31, 2023. We monitor customer purchases over the term of their agreement to assess the realizability of our capitalized customer acquisition costs and review estimates of variable consideration. Impairments and revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustments to revenue arising from contract modifications during the three months ended March 31, 2023, were not material. Volume Commitment Programs . Our volume commitment programs, such as our IDEXX 360 program, provide customers with free or discounted instruments or systems upon entering into multi-year agreements to purchase annual minimum amounts of products and services. We allocate total consideration, including future committed purchases and expected price adjustments, based on relative standalone selling prices to identified performance obligations and recognize instrument revenue and cost at the time of installation and customer acceptance in advance of billing the customer, which is also when the customer obtains control of the instrument based on legal title transfer. Our right to future consideration related to instrument revenue is recorded as a contract asset within other current and long-term assets. The contract asset is transferred to accounts receivable when customers are billed for future products and services over the term of the contract. We have determined these agreements do not include a significant financing component. Differences between estimated and actual customer purchases may impact the timing and amount of revenue recognition. On December 31, 2022, our volume commitment contract assets were $190.8 million, of which approximately $11.1 million were reclassified to accounts receivable when customers were billed for related products and services during the three months ended March 31, 2023. Furthermore, as a result of new placements under volume commitment programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our volume commitment contract assets were $198.9 million as of March 31, 2023. We monitor customer purchases over the term of their agreement to assess the realizability of our contract assets and review estimates of variable consideration. Impairments and revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustments to revenue arising from contract modifications during the three months ended March 31, 2023, were not material. For our up-front customer loyalty and volume commitment programs, we estimate future revenues related to multi-year agreements to be approximately $3.0 billion, of which approximately 22%, 26%, 21%, 17%, and 14% are expected to be recognized during the remainder of 2023, the full years 2024, 2025, 2026, and thereafter, respectively. These future revenues relate to performance obligations not yet satisfied, for which customers have committed to future purchases, net of the expected revenue reductions from customer acquisition costs and expected price adjustments, and, as a result, are lower than stated contractual commitments by our customers. Instrument Rebate Programs . Our instrument rebate programs require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program. We account for the customer’s right to earn rebates on future purchases as a separate performance obligation and determine the standalone selling price based on an estimate of rebates the customer will earn over the term of the program. Total consideration allocated to identified performance obligations is limited to goods and services that the customer is presently obligated to purchase and does not include estimates of future purchases that are optional. We allocate total consideration to identified performance obligations, including the customer’s right to earn rebates on future purchases, which is deferred and subsequently recognized upon the purchase of products and services, partly offsetting rebates as they are earned. On December 31, 2022, our deferred revenue related to instrument rebate programs was $25.6 million, of which approximately $2.6 million were recognized when customers purchased eligible products and services and earned rebates during the three months ended March 31, 2023. Furthermore, as a result of new instrument purchases under rebate progr ams, net of subsequent recognition, our deferred revenue was $24.9 million as of March 31, 2023, of which approximately 28%, 27%, 20%, 14%, and 11% are expected to be recognized during the remainder of 2023, the full years 2024, 2025, 2026, and thereafter, respectively. Reagent Rental Programs . Our reagent rental programs provide our customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded lease for the right to use our instrument, and we determine the amount of lease revenue allocated to the instrument based on relative standalone selling prices. We evaluate the terms of these embedded leases to determine classification as either a sales-type lease or an operating lease. Sales-type Reagent Rental Programs . Our reagent rental programs that effectively transfer control of instruments to our customers are classified as sales-type leases, and we recognize instrument revenue and cost in advance of billing the customer, at the time of installation and customer acceptance. Our right to future consideration related to instrument revenue is recorded as a lease receivable within other current and long-term assets, and is transferred to accounts receivable when customers are billed for future products and services over the term of the contract. On December 31, 2022, our lease receivable assets were $18.4 million, of which approxim ately $1.1 million were reclassified to accounts receivable when customers were billed for related products and services during the three months ended March 31, 2023. Furthermore, as a result of new placements under sales-type reagent rental programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our lease receivable assets were $20.3 million as of March 31, 2023. The impacts of discounting and unearned income as of March 31, 2023 were not material. Profit and loss recognized at the commencement date and interest income during the three months ended March 31, 2023, were not material. We monitor customer purchases over the term of their agreement to assess the realizability of our lease receivable assets. Impairments during the three months ended March 31, 2023 were not material. Operating-type Reagent Rental Programs . Our reagent rental programs that do not effectively transfer control of instruments to our customers are classified as operating leases, and we recognize instrument revenue and costs ratably over the term of the agreement. The cost of the instrument is capitalized within property and equipment. During the three months ended March 31, 2023, we transferred instrume nts of $3.8 million, as compared to $3.0 million for the three months ended March 31, 2022, from inventory to property and equipment. We estimate future revenue to be recognized related to our reagent rental programs of approximately $43.5 million, of which approximately 21%, 25%, 21%, 15%, and 18% are expe cted to be recognized during the remainder of 2023, the full years 2024, 2025, 2026, and thereafter, respectively. These future revenues relate to performance obligations not yet satisfied for which customers have committed to future purchases, net of any expected price adjustments, and, as a result, may be lower than stated contractual commitments by our customers. Other Customer Incentive Programs . Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified purchase threshold of goods and services. We account for these discounts as variable consideration and estimate the likelihood of a customer meeting the threshold in order to determine the transaction price using the most predictive approach. We typically use the most-likely-amount method for incentives that are offered to individual customers and the expected-value method for programs that are offered to a broad group of customers. Revenue adjustments that relate to performance obligations satisfied in prior periods, including cumulative catch-up adjustment to revenue arising from contract modifications, during the three months ended March 31, 2023, were not material. Refund obligations related to customer incentive programs are recorded in accrued liabilities for the actual issuance of incentives, incentives earned but not yet issued, and estimates of incentives to be earned in the future. Program Combinations . At times, we combine elements of our significant customer programs within a single customer contract. We separate each significant program element and include the contract assets, customer acquisition costs, deferred revenues, and estimated future revenues within the most relevant program disclosures above. Each customer contract is presented as a net contract asset or net contract liability on our unaudited condensed consolidated balance sheet. IDEXX Points . IDEXX Points may be applied to trade receivables due to us, converted to cash, or applied against the purchase price of IDEXX products and services. We consider IDEXX Points equivalent to cash. IDEXX Points that have not yet been used by customers are included in accrued liabilities until utilized or expired. Breakage is not material because customers can apply IDEXX Points to trade receivables at any time. Accounts Receivable . We recognize revenue when it is probable that we will collect substantially all of the consideration to which we will be entitled, based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers that purchase our products and services and we have no significant customers that accounted for greater than 10% of our consolidated revenues during the three months ended March 31, 2023. Disaggregated Revenues . We present disaggregated revenue for our CAG segment based on major product and service categories. Our Water segment is comprised of a single major product category. Although our LPD segment does not meet the quantitative requirements to be reported as a separate segment, we believe it is important to disaggregate these revenues as a major product and service category separately from our Other reportable segment given its distinct markets, and therefore we have elected to report LPD as a reportable segment. The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Three Months Ended March 31, 2023 2022 CAG segment revenue: CAG Diagnostics recurring revenue: $ 726,902 $ 664,810 IDEXX VetLab consumables 291,114 267,173 Rapid assay products 82,032 74,519 Reference laboratory diagnostic and consulting services 323,180 295,075 CAG Diagnostics services and accessories 30,576 28,043 CAG Diagnostics capital - instruments 33,144 36,997 Veterinary software, services and diagnostic imaging systems 67,233 59,377 CAG segment revenue 827,279 761,184 Water segment revenue 38,883 36,371 LPD segment revenue 29,208 30,870 Other segment revenue 4,825 8,124 Total revenue $ 900,195 $ 836,549 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Three Months Ended March 31, 2023 2022 United States $ 590,413 $ 525,906 Europe, the Middle East and Africa 176,008 173,808 Asia Pacific Region 78,360 83,861 Canada 35,962 35,232 Latin America & Caribbean 19,452 17,742 Total revenue $ 900,195 $ 836,549 Costs to Obtain a Contract . We capitalize sales commissions, and the related fringe benefits earned by our sales force when considered incremental, and recoverable costs of obtaining a contract. Our contracts include performance obligations related to various goods and services, some of which are satisfied at a point in time and others over time. Commission costs related to performance obligations satisfied at a point in time are expensed at the time of sale, which is when revenue is recognized. Commission costs related to long-term service contracts and performance obligations satisfied over time, including extended warranties and SaaS subscriptions, are deferred and recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We apply judgment in estimating the amortization period, which ranges from 3 to 7 years, by taking into consideration our customer contract terms, history of renewals, and expected length of customer relationship, , as well as the useful life of the underlying technology and products. Amortization expense is included in sales and marketing expenses in the accompanying unaudited condensed consolidated statements of income. Deferred commission costs are periodically reviewed for impairment. On December 31, 2022, our deferred commission costs, included within other assets, were $19.2 million, of which approximately $1.7 million of commission expense was recognized during the three months ended March 31, 2023. Furthermore, as a result of commissions related to new extended warranties and SaaS subscriptions, net of subsequent recognition, our deferred commission costs were $19.3 million as of March 31, 2023. Impairments of deferred commission costs during the three months ended March 31, 2023, were not material. |
Acquisitions, Asset Purchases a
Acquisitions, Asset Purchases and Investments | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Asset Purchases and Investments | ACQUISITIONS, ASSET PURCHASES AND INVESTMENTS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range, customer base, or existing product and service lines. From time to time we may acquire small reference laboratories or radiology practices that we account for as either asset purchases or business combinations. Asset Purchases and Investments During the first quarter of 2022 we made a $10.0 million payment for a perpetual intellectual property license, which will be amortized over 10 years. The related amortization expense is recorded in our CAG segment. During the second quarter of 2022, we entered into two discrete arrangements to license intellectual property for which we paid $65.0 million over the course of the 2022, and accrued $15.0 million in subsequent payments, all of which was charged to research and development expense. The $15.0 million milestone payment was made in the first quarter of 2023. These two arrangements were treated as asset acquisitions under U.S. GAAP and resulted in the full amount being expensed to research and development expense as in-process research and development costs with no alternative future use. The acquisition of these licensing arrangements supports new instrument platform advancements. During the second quarter of 2022 we purchased $25.0 million of preferred shares for a noncontrolling minority interest in one of the entities with which we have a license agreement. We elected to measure the investment as an equity security investment, under ASC 321, “Investment - Equity Securities,” and recorded the investment at cost. Business Combinations |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The fair value of options, restricted stock units, deferred stock units, and employee stock purchase rights awarded during the three months ended March 31, 2023, totaled $57.3 million, as compared to $51.0 million for the three months ended March 31, 2022. The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding as of March 31, 2023 , was $106.6 million, which will be recognized over a weighted average period of approximately 1.9 years. During the three months ended March 31, 2023, we recognized expenses of $13.9 million, as compared to $11.2 million for the three months ended March 31, 2022, related to share-based compensation. 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 each grant date. As such, we may use different assumptions for options granted throughout the year. Option awards are granted with an exercise price equal to or greater than the closing market price of our common stock at the date of grant. We have never paid any cash dividends on our common stock, and we have no intention to pay such a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. 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 Three Months Ended 2023 2022 Expected stock price volatility 32 % 30 % Expected term, in years 6.7 6.4 Risk-free interest rate 3.7 % 2.0 % Weighted average fair value of options granted $ 201.71 $ 170.22 |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSES We are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses 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. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Additional allowances may be required if either the financial condition of our customers were to deteriorate, or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us on their U.S. dollar-denominated purchases. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. Accounts Receivable The allowance for credit losses associated with accounts receiva bl e was $9.1 million and $8.3 million as of March 31, 2023 and December 31, 2022, respectively. The amount of accounts receivable reflected on the balance sheet is net of this reserve. Based on an aging analysis, as of March 31, 2023, approximately 92% of our accounts receivable had not yet reached the invoice due date and approximately 8% was considered past due, of which less than 1% was greater than 60 days past due. As of December 31, 2022, approximately 86% of our accounts receivable had not yet reached the invoice due date and approximately 14% was considered past due, of which approximately 2% was greater than 60 days past due. Contract assets and lease receivables The allowance for credit losses associated with the contract assets and lease receivables was $5.8 million and $5.5 million as of March 31, 2023 and December 31, 2022, respectively. The assets reflected on the balance sheet are net of these reserves. Historically, we have experienced low credit loss rates on our customer commitment programs and lease receivables. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The components of inventories were as follows: (in thousands) March 31, 2023 December 31, 2022 Raw materials $ 101,952 $ 92,796 Work-in-process 31,791 28,041 Finished goods 257,268 246,986 Inventories $ 391,011 $ 367,823 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES Maturities of operating lease liabilities were as follows: (in thousands) March 31, 2023 2023 (remainder of year) $ 17,093 2024 22,735 2025 18,495 2026 15,733 2027 12,409 Thereafter 52,204 Total lease payments 138,669 Less imputed interest (21,288) Total $ 117,381 Total minimum future lease payments for leases that have not commenced as of March 31, 2023, are approximately $0.6 million, and those leases will commence between 2023 and 2024. Supplemental cash flow information for leases was as follows: (in thousands) For the Three Months Ended For the Three Months Ended Cash paid for amounts included in the measurement of operating leases liabilities $ 7,775 $ 6,186 Right-of-use assets obtained in exchange for operating lease obligations, net of early $ 2,282 $ 7,169 |
Other Current and Long-Term Ass
Other Current and Long-Term Assets | 3 Months Ended |
Mar. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Other Current and Long-Term Assets | OTHER CURRENT AND LONG-TERM ASSETS Other current assets consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Customer acquisition costs $ 50,882 $ 50,776 Contract assets, net (1) 46,644 41,854 Prepaid expenses 40,084 41,742 Taxes receivable 27,192 48,430 Foreign currency exchange contracts 4,314 5,185 Cross currency swap contracts 6,877 8,135 Deferred sales commissions 6,495 6,472 Other assets 18,555 17,895 Other current assets $ 201,043 $ 220,489 (1) Contract assets, net, are net of allowances for credit loss. Refer to "Note 6. Credit Losses." Other long-term assets consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Contract assets, net (1) $ 152,209 $ 148,971 Customer acquisition costs 107,971 107,205 Deferred income taxes 57,136 55,215 Equity investments 30,250 30,250 Investment in long-term product supply arrangements 24,021 25,250 Deferred sales commissions 12,765 12,718 Taxes receivable 1,548 717 Other assets 35,250 37,403 Other long-term assets $ 421,150 $ 417,729 (1) Contract assets, net, are net of allowances for credit loss. Refer to "Note 6. Credit Losses." |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued expenses $ 123,608 $ 149,446 Accrued employee compensation and related expenses 110,845 142,994 Accrued customer incentives and refund obligations 77,106 72,250 Accrued taxes 72,832 48,547 Current lease liabilities 19,204 20,425 Accrued liabilities $ 403,595 $ 433,662 Other long-term liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued taxes $ 51,559 $ 49,142 Other accrued long-term expenses 19,305 18,445 Other long-term liabilities $ 70,864 $ 67,587 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Credit Facility As of March 31, 2023, we had $431.5 million in outstanding borrowings under our Credit Facility, which consisted of $181.5 million drawn under our line of credit and a $250.0 million Term Loan, with a weighted average effective interest rate of 5.8%. As of December 31, 2022, we had $579.0 million in outstanding borrowings under our Credit Facility, which consisted of $329.0 million draw under our line of credit and a $250.0 million Term Loan, with a weighted average effective interest rate of 5.1%. As of March 31, 2023, we had a remaining borrowing availability of $817.0 million under our $1.25 billion Credit Facility. The funds available under the Credit Facility reflect a further reduction due to the issuance of letters of credit, which were issued in connection with our workers’ compensation policy, for $1.5 million. The applicable interest rate for the Credit Facility is calculated at a per annum rate equal to either (at our option) (1) a prime rate plus a margin ranging from 0.0% to 0.375% based on our consolidated leverage ratio, (2) an adjusted term SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio, or (3) an adjusted daily simple SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio. In March 2023 we entered into an interest rate swap agreement to manage the economic effect of $250 million of variable interest borrowings under our Credit Facility. Refer to Note 19 for a discussion of our derivative instruments and hedging activity. 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 sole 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 March 31, 2023 and December 31, 2022, we were in compliance with the covenants of the Credit Facility. Senior Notes The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the “Senior Notes”) as of March 31, 2023: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement 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, and certain restrictive agreements. The sole 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 March 31, 2023 and December 31, 2022, we were in compliance with the covenants of the Senior Note Agreements. |
Repurchases of Common Stock
Repurchases of Common Stock | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Repurchases Of Common Stock | REPURCHASES OF COMMON STOCK We primarily acquire shares by repurchases in the open market. However, we also acquire shares that are surrendered by employees in payment for the minimum required statutory 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 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 three months ended March 31, 2023 and 2022 was not material. The following is a summary of our open market common stock repurchases, reported on a trade date basis, and shares acquired through employee surrender: (in thousands, except per share amounts) For the Three Months Ended March 31, 2023 2022 Shares repurchased in the open market — 502 Shares acquired through employee surrender for statutory tax withholding 19 21 Total shares repurchased 19 523 Cost of shares repurchased in the open market $ — $ 262,783 Cost of shares for employee surrenders 9,597 10,338 Total cost of shares $ 9,597 $ 273,121 Average cost per share - open market repurchases $ — $ 523.04 Average cost per share - employee surrenders $ 503.65 $ 505.53 Average cost per share - total $ 503.65 $ 522.36 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 20.0% for the three months ended March 31, 2023, as compared to 19.7% for the three months ended March 31, 2022. The increase in our effective tax rate for the three months ended March 31, 2023, as compared to the same periods in the prior year, was primarily driven by a decrease in tax benefits related to share-based compensation.The effective tax rate for the three months ended March 31, 2023 and 2022, differed from the U.S. federal statutory tax rate of 21% primarily due to tax benefits from share-based compensation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in AOCI, net of tax, consisted of the following: For the Three Months Ended March 31, 2023 Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax Unrealized Gain (Loss) on (in thousands) Unrealized Gain (Loss) on Investments, Foreign Currency Exchange Contracts Interest Rate Swap Euro-Denominated Notes Cross Currency Swaps Defined Benefit Plans, Net of Tax Cumulative Translation Total Balance as of December 31, 2022 $ (172) $ 839 $ — $ 4,947 $ 7,057 $ (2,776) $ (87,691) $ (77,796) Other comprehensive income (loss) before reclassifications 6 (209) (45) (1,490) (1,240) — 4,258 1,280 Reclassified from accumulated other comprehensive income — (218) — — — 119 — (99) Balance as of March 31, 2023 $ (166) $ 412 $ (45) $ 3,457 $ 5,817 $ (2,657) $ (83,433) $ (76,615) For the Three Months Ended March 31, 2022 Unrealized Gain (Loss) on Cash Flow Hedges, Unrealized Gain (Loss) on (in thousands) Unrealized (Loss) Gain on Investments, Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Cumulative Translation Total Balance as of December 31, 2021 $ (126) $ 4,979 $ 422 $ 3,240 $ (61,999) $ (53,484) Other comprehensive income (loss) before reclassifications (17) 2,097 1,409 996 3,277 7,762 Reclassified from accumulated other comprehensive income — (1,626) — — — (1,626) Balance as of March 31, 2022 $ (143) $ 5,450 $ 1,831 $ 4,236 $ (58,722) $ (47,348) The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI For the Three Months Ended March 31, 2023 2022 Foreign currency exchange contracts Cost of revenue $ 335 $ 2,236 Tax expense 117 610 Gain, net of tax $ 218 $ 1,626 Defined benefit plans Cost of revenue and operating expenses $ (139) $ — Tax benefit (20) — Loss, net of tax $ (119) $ — |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to our 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 and the total unrecognized compensation expense for unvested share-based compensation awards, 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. Refer to Note 5 to the consolidated financial statements in our 2022 Annual Report for additional information regarding deferred stock units. The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share: (in thousands) For the Three Months Ended March 31, 2023 2022 Shares outstanding for basic earnings per share 82,992 84,410 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 82,992 84,410 Dilutive effect of share-based payment awards 967 1,154 83,959 85,564 Certain awards and options to acquire shares have been excluded from the calculation of shares outstanding for diluted earnings per share because they were anti-dilutive. The following table presents information concerning those anti-dilutive awards and options: (in thousands) For the Three Months Ended March 31, 2023 2022 Weighted average number of shares underlying anti-dilutive awards 35 2 Weighted average number of shares underlying anti-dilutive options 345 212 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments Refer to “Note 8. Leases,” for more information regarding our lease commitments. Contingencies We are subject to claims that may 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, the results of legal actions cannot be predicted with certainty, and therefore our actual losses with respect to these contingencies could exceed our accruals. Except for the litigation matter described below, as of March 31, 2023, our accruals with respect to actual and threatened litigation were not material. We are a defendant in an ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement. The plaintiff has asserted a claim of approximately $50 million, inclusive of interest through June 30, 2020, alleging that the incorrect royalty provision was applied to certain licensed products and services throughout the agreement term and that royalties were also due on non-licensed diagnostic services that were provided concurrently with licensed services. The trial court previously ruled in favor of the plaintiff in this matter. The appellate court reversed the trial court’s decision, and the plaintiff has petitioned the state supreme court for review. While we believe the claim is without merit and continue to vigorously defend ourselves against the plaintiff’s allegations, litigation is inherently unpredictable and there can be no assurance that we will prevail in this matter. During the third quarter of 2020, we established an accrual of $27.5 million related to this ongoing matter, which represents the amount of the contingent loss that we have determined to be probable and estimable. We have not made any adjustments to this accrual since it was established. The actual cost of resolving this matter may be higher or lower than the amount we have accrued. 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 potential indemnification under these agreements is minimal. Accordingly, we have recorded no liabilities for these obligations as of March 31, 2023 and December 31, 2022. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate primarily through three business segments: Companion Animal Group (“CAG”), Water quality products (“Water”), and Livestock, Poultry and Dairy (“LPD”). CAG provides products and services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides innovative testing solutions for the detection and quantification of various microbiological parameters in water. LPD provides diagnostic tests, services, and related instrumentation that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. Our Other operating segment combines and presents our human medical diagnostic business (“OPTI Medical”) with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. OPTI Medical develops, manufactures, and distributes human medical diagnostic products and provides human medical diagnostic services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include: CAG, Water, LPD, and Other. Assets are not allocated to segments for internal reporting purposes. The following is a summary of segment performance: (in thousands) For the Three Months Ended March 31, CAG Water LPD Other Consolidated Total 2023 Revenue $ 827,279 $ 38,883 $ 29,208 $ 4,825 $ 900,195 Income from operations $ 261,750 $ 16,971 $ 1,308 $ 370 $ 280,399 Interest expense, net (12,711) Income before provision for income taxes 267,688 Provision for income taxes 53,634 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 214,054 2022 Revenue $ 761,184 $ 36,371 $ 30,870 $ 8,124 $ 836,549 Income from operations $ 223,125 $ 16,654 $ 6,737 $ 1,828 $ 248,344 Interest expense, net (6,853) Income before provision for income taxes 241,491 Provision for income taxes 47,526 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 193,965 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
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. We have 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 non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed 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. 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 three months ended March 31, 2023. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed 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. Our interest rate swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our interest rate swap contracts classified as derivative instruments using current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. The amounts outstanding under our unsecured revolving credit facility (“Credit Facility” or “line of credit”) and senior notes (“long-term debt”) are measured at carrying value in our unaudited condensed 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 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 fai r value of our Credit Facility approximates its carrying value. The estimated fair value and carrying value of our long-term debt w ere $740.5 million and $771.7 million , respectively, as of March 31, 2023, and $725.6 million and $769.8 million, respectively, as of December 31, 2022. The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy: (in thousands) As of March 31, 2023 Quoted Prices Significant Significant Balance as of March 31, 2023 Assets Equity mutual funds (1) $ 292 $ — $ — $ 292 Cross currency swaps (2) $ — $ 7,906 $ — $ 7,906 Foreign currency exchange contracts (2) $ — $ 4,355 $ — $ 4,355 Liabilities Cross currency swaps (2) $ — $ 271 $ — $ 271 Foreign currency exchange contracts (2) $ — $ 3,770 $ — $ 3,770 Interest rate swap (3) $ — $ 59 $ — $ 59 Deferred compensation (4) $ 292 $ — $ — $ 292 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (in thousands) As of December 31, 2022 Quoted Prices Significant Significant Balance as of December 31, 2022 Assets Equity mutual funds (1) $ 385 $ — $ — $ 385 Cross currency swaps (2) $ — $ 9,262 $ — $ 9,262 Foreign currency exchange contracts (2) $ — $ 5,185 $ — $ 5,185 Liabilities Foreign currency exchange contracts (2) $ — $ 4,572 $ — $ 4,572 Deferred compensation (4) $ 385 $ — $ — $ 385 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (1) 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. Refer to footnote (4) below for a discussion of the related deferred compensation liability. (2) Cross currency swaps and foreign currency exchange contracts are included within other current assets, other long-term assets, accrued liabilities, or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (3) Interest rate swap is included within other long-term liabilities. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and 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 footnote (1) above. The estimated fair values of certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate their respective carrying values due to their short maturity. Contingent Consideration We have classified our liabilities for contingent consideration related to acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which includes the achievements of future revenues. The contingent consideration is included within other short-term liabilities. We record changes in the estimated fair value of contingent consideration in the unaudited condensed consolidated statements of income. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the three months ended March 31, 2023, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2022 $ 120 Payment of contingent consideration — Contingent consideration as of March 31, 2023 $ 120 |
Hedging Instruments
Hedging Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Instruments | HEDGING INSTRUMENTS Disclosure within this note is presented to provide transparency about how and why we use derivative and non-derivative instruments (collectively “hedging instruments”), how the instruments and related hedged items are accounted for, and how the instruments and related hedged items affect our financial position, results of operations, and cash flows. We are exposed to certain risks related to our ongoing business operations. The primary risk that we currently manage by using hedging instruments is foreign currency exchange risk. During the first quarter of 2023, we entered into an interest rate swap to manage the impact of interest rate fluctuations associated with $250.0 million of borrowings under our variable-rate Credit Facility. We have designated the interest rate swap as a cash flow hedge. 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 other foreign currency exchange contracts, cross currency swaps, or foreign-denominated debt issuances to minimize the impact of foreign currency fluctuations associated with specific balance sheet exposures, including net investments in certain foreign subsidiaries. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in the euro, British pound, Japanese yen, Canadian dollar, and Australian dollar. 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 well-capitalized 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. We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. 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 and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, changes in the fair value of the hedging 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 hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging 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. Refer to “Note 14. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of income for the three months ended March 31, 2023 and 2022. We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain 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 unaudited condensed consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. Cash Flow Hedges We have designated our foreign currency exchange contracts and our interest rate swap as cash flow hedges as these derivative instruments manage the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange and interest rates on variable interest obligations under the terms of our Credit Facility. 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 either the three months ended March 31, 2023 or 2022. As of March 31, 2023, the estimated amount of net gains, net of tax, from our foreign currency exchange contracts which are expected to be reclassified out of AOCI and into earnings within the next 12 months, is $0.6 million if exchange rates do not fluctuate from the levels as of March 31, 2023. Foreign Currency Exchange Contracts : We target to hedge approximately 75% to 85% of the estimated exposure from intercompany product purchases and sales denominated in the euro, British pound, Canadian dollar, Japanese yen, and Australian dollar. We have additional unhedged foreign currency exposures related to foreign services and emerging markets where it is not practical to hedge. 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 $248.7 million and $258.2 million as of March 31, 2023 and December 31, 2022, respectively. The following table presents the effect of cash flow hedge accounting on our unaudited condensed consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Three Months Ended 2023 2022 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 357,224 $ 337,796 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 335 $ 2,236 Interest Rate Swap : We entered into an interest rate swap agreement to manage the economic effect of variable interest obligations on amounts borrowed under the terms of the Credit Facility. Beginning on March 31, 2023, the variable interest rate associated with $250.0 million of borrowings outstanding under the Credit Facility became effectively fixed at 3.9% plus the applicable credit spread, through October 20, 2025. Due to the effective date of the interest rate swap being March 31, 2023, no amount was reclassified out of other comprehensive income to interest expense for the first quarter of 2023. Net Investment Hedges, Euro-Denominated Notes In June 2015, we issued and sold through a private placement an aggregate principal amount of €88.9 million in euro-denominated 1.785% Series C Senior Notes due June 18, 2025. We have designated these euro-denominated notes as a hedge of our euro net investment in certain foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates in the euro relative to the U.S. dollar. As a result of this designation, gains and losses from the change in translated U.S. dollar value of these euro-denominated notes are recorded in AOCI rather than to earnings. We recorded losses of $1.5 million , net of tax, within AOCI as a result of this net investment hedge for the three months ended March 31, 2023, and gains of $1.4 million for the three months ended March 31, 2022. The related cumulative unrealized gain recorded as of March 31, 2023, will not be reclassified in earnings until the complete or substantially complete liquidation of the net investment in the hedged foreign operations or all or a portion of the hedge no longer qualifies for hedge accounting treatment. Refer to Note 13 to the consolidated financial statements included in our 2022 Annual Report for further information regarding the issuance of these euro-denominated notes. Net Investment Hedges, Cross Currency Swaps We have entered into several cross currency swap contracts as a hedge of our net investment in foreign operations to offset foreign currency translation gains and losses on the net investment. These cross currency swaps have maturity dates beginning on June 30, 2023, through March 31, 2028. At maturity of the cross currency swap contracts, we will deliver the notional amount of €90.0 million and will receive approximately $104.5 million from the counterparties on June 30, 2023; we will deliver the notional amount of €15 million and will receive approximately $17.5 million from the counterparties on June 18, 2025; and we will deliver the notional amount of €35 million and will receive $37.8 million from the counterparties on March 31, 2028. The changes in fair value of the cross currency swap contracts are recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidate d. During the three months ended March 31, 2023, we recorded losses of $1.2 million, net of tax, within AOCI as a result of these net investment hedges, and gains of $1.0 million during the three months ended March 31, 2022. We will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swaps. This interest rate component is excluded from the assessment of hedge effectiveness and is recognized as a reduction to interest expense over the life of the hedge instrument. We recognized ap proximately $0.7 million related to the excluded component as a reduction of interest expense for the three months ended March 31, 2023, and $0.7 million for the three months ended March 31, 2022. Fair Values of Hedging Instruments Designated as Hedges in Consolidated Balance Sheets The fair values of hedging instruments and their respective classification on our unaudited condensed consolidated balance sheets and amounts subject to offset under master netting arrangements consisted of the following derivative instruments, unless otherwise noted: (in thousands) Hedging Assets March 31, 2023 December 31, 2022 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 4,314 $ 5,185 Cross currency swaps Other current assets 6,877 8,135 Foreign currency exchange contracts Other long-term assets 41 — Cross currency swaps Other long-term assets 1,029 1,127 Total derivative instruments presented as hedging instruments on the balance sheet 12,261 14,447 Gross amounts subject to master netting arrangements not offset on the balance sheet (1,890) (3,210) Net amount $ 10,371 $ 11,237 (in thousands) Hedging Liabilities March 31, 2023 December 31, 2022 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 3,525 $ 4,572 Cross currency swaps Other long-term liabilities 271 — Interest rate swap Other long-term liabilities 59 — Foreign currency exchange contracts Other long-term liabilities 245 — Total derivative instruments presented as hedging instruments on the balance sheet 4,100 4,572 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 96,730 94,775 Total hedging instruments presented on the balance sheet 100,830 99,347 Gross amounts subject to master netting arrangements not offset on the balance sheet (1,890) (3,210) Net amount $ 98,940 $ 96,137 (1) Amounts represent reported carrying amounts of our foreign currency-denominated debt. Refer to “Note 18. Fair Value Measurements” for information regarding the fair value of our long-term debt. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounts Payable - Supplier Financing Program | Accounts Payable - Supplier Financing ProgramWe have an agreement with a third party to provide a supplier finance program, which facilitates participating suppliers’ ability to finance payment obligations from us with a designated third-party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more of our payment obligations prior to their scheduled due dates at a discounted price. Our obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under these arrangements. The terms of payments are in-line with the terms of our trade payables. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted We adopted ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” as of January 1, 2023, which adds certain disclosure requirements for a buyer in a supplier finance program. The amendments in this update require that a buyer in a supplier finance program discloses sufficient information about the program to allow a user of financial statements to understand the program's nature, activity during the period, changes from period to period, and potential magnitude. We adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities,” as of January 1, 2023. ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. |
Revenue | Our revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To accurately present the consideration received in exchange for promised products or services, we apply the five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations |
Share-based Compensation | 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 each grant date. As such, we may use different assumptions for options granted throughout the year. Option awards are granted with an exercise price equal to or greater than the closing market price of our common stock at the date of grant. We have never paid any cash dividends on our common stock, and we have no intention to pay such a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. |
Credit Losses | We are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses 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. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Additional allowances may be required if either the financial condition of our customers were to deteriorate, or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us on their U.S. dollar-denominated purchases. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Earnings Per Share | Basic earnings per share is computed by dividing net income attributable to our 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 and the total unrecognized compensation expense for unvested share-based compensation awards, 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. |
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. We have 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 non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed 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. 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 three months ended March 31, 2023. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed 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. Our interest rate swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our interest rate swap contracts classified as derivative instruments using current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. |
Hedging Instruments | We are exposed to certain risks related to our ongoing business operations. The primary risk that we currently manage by using hedging instruments is foreign currency exchange risk. During the first quarter of 2023, we entered into an interest rate swap to manage the impact of interest rate fluctuations associated with $250.0 million of borrowings under our variable-rate Credit Facility. We have designated the interest rate swap as a cash flow hedge. 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 other foreign currency exchange contracts, cross currency swaps, or foreign-denominated debt issuances to minimize the impact of foreign currency fluctuations associated with specific balance sheet exposures, including net investments in certain foreign subsidiaries. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in the euro, British pound, Japanese yen, Canadian dollar, and Australian dollar. 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 well-capitalized 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. We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. 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 and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, changes in the fair value of the hedging 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 hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging 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. Refer to “Note 14. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of income for the three months ended March 31, 2023 and 2022. We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain 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 unaudited condensed consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of outstanding payment obligations | The roll-forward of our outstanding payment obligations under this arrangement, which are included in accounts payable on the unaudited condensed consolidated balance sheets, are as follows: (in thousands) For the Three Months Ended 2023 2022 Payment obligations outstanding at the beginning of the period $ 10,171 $ 4,775 Payment obligations during the period 13,031 13,341 Payment obligation paid during the period (15,666) (12,752) Payment obligations outstanding at the end of the period $ 7,536 $ 5,364 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Three Months Ended March 31, 2023 2022 CAG segment revenue: CAG Diagnostics recurring revenue: $ 726,902 $ 664,810 IDEXX VetLab consumables 291,114 267,173 Rapid assay products 82,032 74,519 Reference laboratory diagnostic and consulting services 323,180 295,075 CAG Diagnostics services and accessories 30,576 28,043 CAG Diagnostics capital - instruments 33,144 36,997 Veterinary software, services and diagnostic imaging systems 67,233 59,377 CAG segment revenue 827,279 761,184 Water segment revenue 38,883 36,371 LPD segment revenue 29,208 30,870 Other segment revenue 4,825 8,124 Total revenue $ 900,195 $ 836,549 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Three Months Ended March 31, 2023 2022 United States $ 590,413 $ 525,906 Europe, the Middle East and Africa 176,008 173,808 Asia Pacific Region 78,360 83,861 Canada 35,962 35,232 Latin America & Caribbean 19,452 17,742 Total revenue $ 900,195 $ 836,549 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of weighted averages of the assumptions used in estimating the fair value of stock option awards | 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 Three Months Ended 2023 2022 Expected stock price volatility 32 % 30 % Expected term, in years 6.7 6.4 Risk-free interest rate 3.7 % 2.0 % Weighted average fair value of options granted $ 201.71 $ 170.22 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
Schedule of components of inventories | The components of inventories were as follows: (in thousands) March 31, 2023 December 31, 2022 Raw materials $ 101,952 $ 92,796 Work-in-process 31,791 28,041 Finished goods 257,268 246,986 Inventories $ 391,011 $ 367,823 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities were as follows: (in thousands) March 31, 2023 2023 (remainder of year) $ 17,093 2024 22,735 2025 18,495 2026 15,733 2027 12,409 Thereafter 52,204 Total lease payments 138,669 Less imputed interest (21,288) Total $ 117,381 |
Schedule of lease and supplemental cash flow information | Supplemental cash flow information for leases was as follows: (in thousands) For the Three Months Ended For the Three Months Ended Cash paid for amounts included in the measurement of operating leases liabilities $ 7,775 $ 6,186 Right-of-use assets obtained in exchange for operating lease obligations, net of early $ 2,282 $ 7,169 |
Other Current and Long-Term A_2
Other Current and Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Customer acquisition costs $ 50,882 $ 50,776 Contract assets, net (1) 46,644 41,854 Prepaid expenses 40,084 41,742 Taxes receivable 27,192 48,430 Foreign currency exchange contracts 4,314 5,185 Cross currency swap contracts 6,877 8,135 Deferred sales commissions 6,495 6,472 Other assets 18,555 17,895 Other current assets $ 201,043 $ 220,489 (1) Contract assets, net, are net of allowances for credit loss. Refer to "Note 6. Credit Losses." |
Schedule of other long-term assets | Other long-term assets consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Contract assets, net (1) $ 152,209 $ 148,971 Customer acquisition costs 107,971 107,205 Deferred income taxes 57,136 55,215 Equity investments 30,250 30,250 Investment in long-term product supply arrangements 24,021 25,250 Deferred sales commissions 12,765 12,718 Taxes receivable 1,548 717 Other assets 35,250 37,403 Other long-term assets $ 421,150 $ 417,729 (1) Contract assets, net, are net of allowances for credit loss. Refer to "Note 6. Credit Losses." |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued expenses $ 123,608 $ 149,446 Accrued employee compensation and related expenses 110,845 142,994 Accrued customer incentives and refund obligations 77,106 72,250 Accrued taxes 72,832 48,547 Current lease liabilities 19,204 20,425 Accrued liabilities $ 403,595 $ 433,662 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following: (in thousands) March 31, 2023 December 31, 2022 Accrued taxes $ 51,559 $ 49,142 Other accrued long-term expenses 19,305 18,445 Other long-term liabilities $ 70,864 $ 67,587 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the “Senior Notes”) as of March 31, 2023: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of common stock repurchases | The following is a summary of our open market common stock repurchases, reported on a trade date basis, and shares acquired through employee surrender: (in thousands, except per share amounts) For the Three Months Ended March 31, 2023 2022 Shares repurchased in the open market — 502 Shares acquired through employee surrender for statutory tax withholding 19 21 Total shares repurchased 19 523 Cost of shares repurchased in the open market $ — $ 262,783 Cost of shares for employee surrenders 9,597 10,338 Total cost of shares $ 9,597 $ 273,121 Average cost per share - open market repurchases $ — $ 523.04 Average cost per share - employee surrenders $ 503.65 $ 505.53 Average cost per share - total $ 503.65 $ 522.36 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | The changes in AOCI, net of tax, consisted of the following: For the Three Months Ended March 31, 2023 Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax Unrealized Gain (Loss) on (in thousands) Unrealized Gain (Loss) on Investments, Foreign Currency Exchange Contracts Interest Rate Swap Euro-Denominated Notes Cross Currency Swaps Defined Benefit Plans, Net of Tax Cumulative Translation Total Balance as of December 31, 2022 $ (172) $ 839 $ — $ 4,947 $ 7,057 $ (2,776) $ (87,691) $ (77,796) Other comprehensive income (loss) before reclassifications 6 (209) (45) (1,490) (1,240) — 4,258 1,280 Reclassified from accumulated other comprehensive income — (218) — — — 119 — (99) Balance as of March 31, 2023 $ (166) $ 412 $ (45) $ 3,457 $ 5,817 $ (2,657) $ (83,433) $ (76,615) For the Three Months Ended March 31, 2022 Unrealized Gain (Loss) on Cash Flow Hedges, Unrealized Gain (Loss) on (in thousands) Unrealized (Loss) Gain on Investments, Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Cumulative Translation Total Balance as of December 31, 2021 $ (126) $ 4,979 $ 422 $ 3,240 $ (61,999) $ (53,484) Other comprehensive income (loss) before reclassifications (17) 2,097 1,409 996 3,277 7,762 Reclassified from accumulated other comprehensive income — (1,626) — — — (1,626) Balance as of March 31, 2022 $ (143) $ 5,450 $ 1,831 $ 4,236 $ (58,722) $ (47,348) |
Schedule of reclassifications out of other comprehensive income | The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI For the Three Months Ended March 31, 2023 2022 Foreign currency exchange contracts Cost of revenue $ 335 $ 2,236 Tax expense 117 610 Gain, net of tax $ 218 $ 1,626 Defined benefit plans Cost of revenue and operating expenses $ (139) $ — Tax benefit (20) — Loss, net of tax $ (119) $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of shares outstanding for basic and diluted earnings per share | The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share: (in thousands) For the Three Months Ended March 31, 2023 2022 Shares outstanding for basic earnings per share 82,992 84,410 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 82,992 84,410 Dilutive effect of share-based payment awards 967 1,154 83,959 85,564 |
Schedule of number of anti-dilutive stock options | The following table presents information concerning those anti-dilutive awards and options: (in thousands) For the Three Months Ended March 31, 2023 2022 Weighted average number of shares underlying anti-dilutive awards 35 2 Weighted average number of shares underlying anti-dilutive options 345 212 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment performance | The following is a summary of segment performance: (in thousands) For the Three Months Ended March 31, CAG Water LPD Other Consolidated Total 2023 Revenue $ 827,279 $ 38,883 $ 29,208 $ 4,825 $ 900,195 Income from operations $ 261,750 $ 16,971 $ 1,308 $ 370 $ 280,399 Interest expense, net (12,711) Income before provision for income taxes 267,688 Provision for income taxes 53,634 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 214,054 2022 Revenue $ 761,184 $ 36,371 $ 30,870 $ 8,124 $ 836,549 Income from operations $ 223,125 $ 16,654 $ 6,737 $ 1,828 $ 248,344 Interest expense, net (6,853) Income before provision for income taxes 241,491 Provision for income taxes 47,526 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 193,965 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on recurring basis | The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy: (in thousands) As of March 31, 2023 Quoted Prices Significant Significant Balance as of March 31, 2023 Assets Equity mutual funds (1) $ 292 $ — $ — $ 292 Cross currency swaps (2) $ — $ 7,906 $ — $ 7,906 Foreign currency exchange contracts (2) $ — $ 4,355 $ — $ 4,355 Liabilities Cross currency swaps (2) $ — $ 271 $ — $ 271 Foreign currency exchange contracts (2) $ — $ 3,770 $ — $ 3,770 Interest rate swap (3) $ — $ 59 $ — $ 59 Deferred compensation (4) $ 292 $ — $ — $ 292 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (in thousands) As of December 31, 2022 Quoted Prices Significant Significant Balance as of December 31, 2022 Assets Equity mutual funds (1) $ 385 $ — $ — $ 385 Cross currency swaps (2) $ — $ 9,262 $ — $ 9,262 Foreign currency exchange contracts (2) $ — $ 5,185 $ — $ 5,185 Liabilities Foreign currency exchange contracts (2) $ — $ 4,572 $ — $ 4,572 Deferred compensation (4) $ 385 $ — $ — $ 385 Contingent payments - acquisitions $ — $ — $ 120 $ 120 (1) 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. Refer to footnote (4) below for a discussion of the related deferred compensation liability. (2) Cross currency swaps and foreign currency exchange contracts are included within other current assets, other long-term assets, accrued liabilities, or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (3) Interest rate swap is included within other long-term liabilities. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and 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 footnote (1) above. |
Schedule of contingent consideration liability | Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the three months ended March 31, 2023, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2022 $ 120 Payment of contingent consideration — Contingent consideration as of March 31, 2023 $ 120 |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of net investment hedges and Income Statement impact of hedging instruments | The following table presents the effect of cash flow hedge accounting on our unaudited condensed consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Three Months Ended 2023 2022 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 357,224 $ 337,796 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 335 $ 2,236 |
Schedule of hedging instruments | The fair values of hedging instruments and their respective classification on our unaudited condensed consolidated balance sheets and amounts subject to offset under master netting arrangements consisted of the following derivative instruments, unless otherwise noted: (in thousands) Hedging Assets March 31, 2023 December 31, 2022 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 4,314 $ 5,185 Cross currency swaps Other current assets 6,877 8,135 Foreign currency exchange contracts Other long-term assets 41 — Cross currency swaps Other long-term assets 1,029 1,127 Total derivative instruments presented as hedging instruments on the balance sheet 12,261 14,447 Gross amounts subject to master netting arrangements not offset on the balance sheet (1,890) (3,210) Net amount $ 10,371 $ 11,237 (in thousands) Hedging Liabilities March 31, 2023 December 31, 2022 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 3,525 $ 4,572 Cross currency swaps Other long-term liabilities 271 — Interest rate swap Other long-term liabilities 59 — Foreign currency exchange contracts Other long-term liabilities 245 — Total derivative instruments presented as hedging instruments on the balance sheet 4,100 4,572 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 96,730 94,775 Total hedging instruments presented on the balance sheet 100,830 99,347 Gross amounts subject to master netting arrangements not offset on the balance sheet (1,890) (3,210) Net amount $ 98,940 $ 96,137 (1) Amounts represent reported carrying amounts of our foreign currency-denominated debt. Refer to “Note 18. Fair Value Measurements” for information regarding the fair value of our long-term debt. |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Supplier finance program obligation | $ 7,536 | $ 10,171 | $ 5,364 | $ 4,775 |
Accounting Policies (Schedule o
Accounting Policies (Schedule of Supplier Financing Program) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplier Finance Program, Obligation [Roll Forward] | ||
Payment obligations outstanding at the beginning of the period | $ 10,171 | $ 4,775 |
Payment obligations during the period | 13,031 | 13,341 |
Payment obligation paid during the period | (15,666) | (12,752) |
Payment obligations outstanding at the end of the period | $ 7,536 | $ 5,364 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 60 days |
Revenue Recognition (Lease Reve
Revenue Recognition (Lease Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Lease revenue | $ 4.5 | $ 5 |
Revenue Recognition (Extended W
Revenue Recognition (Extended Warranties and Post-Contract Support) (Details) - Extended warranties and post contract support - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Post-contract support contract, term | 12 months | |
Deferred revenue | $ 26.3 | $ 26.4 |
Deferred revenue recognized | 15.1 | |
Estimation of future revenues | $ 10.2 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 1 year | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 5 years |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligation) (Details) | Mar. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Extended warranties and post contract support | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 36% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 22% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Instrument rebate programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 28% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 21% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Extended warranties and post contract support | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 34% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 26% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Instrument rebate programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 27% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Extended warranties and post contract support | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 17% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 21% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Instrument rebate programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 21% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Extended warranties and post contract support | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 8% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 17% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Instrument rebate programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 14% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 15% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Extended warranties and post contract support | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 5% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 14% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Instrument rebate programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 11% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 18% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue Recognition (SaaS Subsc
Revenue Recognition (SaaS Subscriptions) (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Maximum | |
Disaggregation of Revenue [Line Items] | |
SaaS Subscription, term of contract | 2 years |
Revenue Recognition (Up-Front C
Revenue Recognition (Up-Front Customer Loyalty Programs) (Details) - Up front customer loyalty programs - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Capitalized customer acquisition costs | $ 158.9 | $ 158 |
Recognized as a reduction of revenue | $ 13.4 |
Revenue Recognition (Volume Com
Revenue Recognition (Volume Commitment Programs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Volume commitment programs | ||
Disaggregation of Revenue [Line Items] | ||
Commitment contract assets | $ 198.9 | $ 190.8 |
Commitment contract assets reclassified to accounts receivable | 11.1 | |
Up front customer loyalty programs and volume commitment programs | ||
Disaggregation of Revenue [Line Items] | ||
Estimation of future revenues | $ 3,000 |
Revenue Recognition (Instrument
Revenue Recognition (Instrument Rebate Programs) (Details) - Instrument rebate programs - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 24.9 | $ 25.6 |
Deferred revenue recognized | $ 2.6 |
Revenue Recognition (Reagent Re
Revenue Recognition (Reagent Rental Programs) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Lease receivable asset | $ 20.3 | $ 18.4 | |
Lease receivable asset reclassified to accounts receivable | 1.1 | ||
Operating-type reagent rental programs | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Instruments transferred to property and equipment | 3.8 | $ 3 | |
Reagent rental programs | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Estimation of future revenues | $ 43.5 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Major Product and Service Categories) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 900,195 | $ 836,549 |
CAG segment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 827,279 | 761,184 |
CAG segment revenue | CAG Diagnostics recurring revenue: | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 726,902 | 664,810 |
CAG segment revenue | IDEXX VetLab consumables | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 291,114 | 267,173 |
CAG segment revenue | Rapid assay products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 82,032 | 74,519 |
CAG segment revenue | Reference laboratory diagnostic and consulting services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 323,180 | 295,075 |
CAG segment revenue | CAG Diagnostics services and accessories | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 30,576 | 28,043 |
CAG segment revenue | CAG Diagnostics capital - instruments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 33,144 | 36,997 |
CAG segment revenue | Veterinary software, services and diagnostic imaging systems | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 67,233 | 59,377 |
Water segment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 38,883 | 36,371 |
LPD segment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 29,208 | 30,870 |
Other segment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 4,825 | $ 8,124 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Principal Geographic Area, Based on Customers' Domiciles) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 900,195 | $ 836,549 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 590,413 | 525,906 |
Europe, the Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 176,008 | 173,808 |
Asia Pacific Region | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 78,360 | 83,861 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 35,962 | 35,232 |
Latin America & Caribbean | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 19,452 | $ 17,742 |
Revenue Recognition (Costs to O
Revenue Recognition (Costs to Obtain a Contract) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Deferred commission costs | $ 19.3 | $ 19.2 |
Commissions expense recognized | $ 1.7 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Amortization period | 3 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Amortization period | 7 years |
Acquisitions, Asset Purchases_2
Acquisitions, Asset Purchases and Investments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) arrangement | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Investment acquired, non-controlling interest share | $ 25,000 | |||
Goodwill | $ 362,942 | $ 361,795 | ||
International Water Testing Company | Canada | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 12,800 | |||
Holdback | 1,300 | |||
Goodwill | $ 6,900 | |||
International Water Testing Company | Canada | Technology-related intangibles | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Net tangible assets | $ 3,400 | |||
International Water Testing Company | Canada | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Net tangible assets | $ 1,200 | |||
International Water Testing Company | Canada | New tangible assets | ||||
Business Acquisition [Line Items] | ||||
Net tangible assets | $ 1,300 | |||
Perpetual Intellectual Property License | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire productive assets | $ 10,000 | |||
Finite-lived intangible asset, useful life | 10 years | |||
License Intellectual Property Rights | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire productive assets | $ 15,000 | $ 65,000 | ||
Number of arrangements to license intellectual property | arrangement | 2 | |||
Payable to acquire productive assets | $ 15,000 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Fair value of share-based compensation awards, granted | $ 57.3 | $ 51 |
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | $ 106.6 | |
Weighted average recognition period for unrecognized compensation expense, in years | 1 year 10 months 24 days | |
Share-based compensation expense | $ 13.9 | $ 11.2 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions Used) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Expected stock price volatility | 32% | 30% |
Expected term, in years | 6 years 8 months 12 days | 6 years 4 months 24 days |
Risk-free interest rate | 3.70% | 2% |
Weighted average fair value of options granted (in USD per share) | $ 201.71 | $ 170.22 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable allowance for credit losses | $ 9.1 | $ 8.3 |
Percent of accounts receivable not past due | 92% | 86% |
Percent of accounts receivable past due | 8% | 14% |
Accounts receivable, noncurrent, threshold period past due | 60 days | 60 days |
Reserve for contract assets and sales-type leases | $ 5.8 | $ 5.5 |
Greater than 60 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percent of accounts receivable past due | 1% | 2% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 101,952 | $ 92,796 |
Work-in-process | 31,791 | 28,041 |
Finished goods | 257,268 | 246,986 |
Inventories | $ 391,011 | $ 367,823 |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 (remainder of year) | $ 17,093 |
2024 | 22,735 |
2025 | 18,495 |
2026 | 15,733 |
2027 | 12,409 |
Thereafter | 52,204 |
Total lease payments | 138,669 |
Less imputed interest | (21,288) |
Total | $ 117,381 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Operating lease, lease not yet commenced, liability | $ 0.6 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating leases liabilities | $ 7,775 | $ 6,186 |
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations | $ 2,282 | $ 7,169 |
Other Current and Long-Term A_3
Other Current and Long-Term Assets (Schedule Of Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent [Abstract] | ||
Customer acquisition costs | $ 50,882 | $ 50,776 |
Contract assets, net | 46,644 | 41,854 |
Prepaid expenses | 40,084 | 41,742 |
Taxes receivable | 27,192 | 48,430 |
Foreign currency exchange contracts | 4,314 | 5,185 |
Cross currency swap contracts | 6,877 | 8,135 |
Deferred sales commissions | 6,495 | 6,472 |
Other assets | 18,555 | 17,895 |
Other current assets | $ 201,043 | $ 220,489 |
Other Current and Long-Term A_4
Other Current and Long-Term Assets (Schedule Of Other Long-term Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets, net | $ 152,209 | $ 148,971 |
Customer acquisition costs | 107,971 | 107,205 |
Deferred income taxes | 57,136 | 55,215 |
Equity investments | 30,250 | 30,250 |
Investment in long-term product supply arrangements | 24,021 | 25,250 |
Deferred sales commissions | 12,765 | 12,718 |
Taxes receivable | 1,548 | 717 |
Other assets | 35,250 | 37,403 |
Other long-term assets | $ 421,150 | $ 417,729 |
Accrued Liabilities (Schedule O
Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 123,608 | $ 149,446 |
Accrued employee compensation and related expenses | 110,845 | 142,994 |
Accrued customer incentives and refund obligations | 77,106 | 72,250 |
Accrued taxes | 72,832 | 48,547 |
Current lease liabilities | $ 19,204 | $ 20,425 |
Operating lease, liability, current, statement of financial position [extensible enumeration] | Accrued liabilities | Accrued liabilities |
Accrued liabilities | $ 403,595 | $ 433,662 |
Accrued Liabilities (Schedule_2
Accrued Liabilities (Schedule Of Other Long-term Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $ 51,559 | $ 49,142 |
Other accrued long-term expenses | 19,305 | 18,445 |
Other long-term liabilities | $ 70,864 | $ 67,587 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Credit facility | $ 431,500,000 | $ 579,000,000 |
Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Consolidated leverage ratio, maximum | 350% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility | $ 181,500,000 | $ 329,000,000 |
Stated interest rate | 5.80% | 5.10% |
Line of credit facility, remaining borrowing capacity | $ 817,000,000 | |
Line of credit facility, maximum borrowing capacity | 1,250,000,000 | |
Reduction of credit facility availability | $ 1,500,000 | |
Consolidated leverage ratio, maximum | 350% | |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Credit facility | $ 250,000,000 | $ 250,000,000 |
Face amount | $ 250,000,000 | |
Term Loan | Prime Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0% | |
Term Loan | Prime Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.375% | |
Term Loan | Secured Overnight Financing Rate (SOFR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate, additional | 0.875% | |
Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate, additional | 1.375% | |
Term Loan | Daily Secured Overnight Financing Rate (SOFR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Term Loan | Daily Secured Overnight Financing Rate (SOFR) | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate, additional | 0.875% | |
Term Loan | Daily Secured Overnight Financing Rate (SOFR) | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate, additional | 1.375% |
Debt (Schedule of Current Senio
Debt (Schedule of Current Senior Notes Outstanding) (Details) - Senior Notes | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) |
2023 Series A Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 3.94% | 3.94% |
2025 Series B Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 4.04% | 4.04% |
2026 Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 3.72% | 3.72% |
2024 Series B Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 3.76% | 3.76% |
2025 Series C Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | € | € 88,857,000 | |
Coupon Rate | 1.785% | 1.785% |
2027 Series B Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 3.72% | 3.72% |
2029 Series C Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 100,000,000 | |
Coupon Rate | 4.19% | 4.19% |
MetLife 2030 Series D Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 125,000,000 | |
Coupon Rate | 2.50% | 2.50% |
Prudential 2030 Series D Notes | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Coupon Rate | 2.50% | 2.50% |
Repurchases of Common Stock (De
Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Shares repurchased in the open market (in shares) | 0 | 502 |
Shares acquired through employee surrender for statutory tax withholding (in shares) | 19 | 21 |
Total shares repurchased (in shares) | 19 | 523 |
Cost of shares repurchased in the open market | $ 0 | $ 262,783 |
Cost of shares for employee surrenders | 9,597 | 10,338 |
Total cost of shares | $ 9,597 | $ 273,121 |
Average cost per share - open market repurchases (in USD per share) | $ 0 | $ 523.04 |
Average cost per share - employee surrenders (in USD per share) | 503.65 | 505.53 |
Average cost per share - total (in USD per share) | $ 503.65 | $ 522.36 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 20% | 19.70% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | $ 608,737 | $ 689,992 |
Balance end of period | 841,101 | 639,798 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (77,796) | (53,484) |
Other comprehensive income (loss) before reclassifications | 1,280 | 7,762 |
Reclassified from accumulated other comprehensive income | (99) | (1,626) |
Balance end of period | (76,615) | (47,348) |
Unrealized Gain (Loss) on Investments, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (172) | (126) |
Other comprehensive income (loss) before reclassifications | 6 | (17) |
Reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | (166) | (143) |
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax | Foreign Currency Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 839 | 4,979 |
Other comprehensive income (loss) before reclassifications | (209) | 2,097 |
Reclassified from accumulated other comprehensive income | (218) | (1,626) |
Balance end of period | 412 | 5,450 |
Unrealized Gain (Loss) on Cash Flow Hedges, Net of Tax | Interest Rate Swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 0 | |
Other comprehensive income (loss) before reclassifications | (45) | |
Reclassified from accumulated other comprehensive income | 0 | |
Balance end of period | (45) | |
Unrealized Gain (Loss) on Net Investment Hedges, Net of Tax | Euro-Denominated Notes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 4,947 | 422 |
Other comprehensive income (loss) before reclassifications | (1,490) | 1,409 |
Reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 3,457 | 1,831 |
Unrealized Gain (Loss) on Net Investment Hedges, Net of Tax | Cross Currency Swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | 7,057 | 3,240 |
Other comprehensive income (loss) before reclassifications | (1,240) | 996 |
Reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 5,817 | 4,236 |
Defined Benefit Plans, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (2,776) | |
Other comprehensive income (loss) before reclassifications | 0 | |
Reclassified from accumulated other comprehensive income | 119 | |
Balance end of period | (2,657) | |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (87,691) | (61,999) |
Other comprehensive income (loss) before reclassifications | 4,258 | 3,277 |
Reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | $ (83,433) | $ (58,722) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule Associated with Cash Flow Hedges and Pension of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenue | $ 357,224 | $ 337,796 |
Tax expense | 53,634 | 47,526 |
Gain (loss), net of tax | 214,054 | 193,965 |
Cash flow hedge | Reclassification out of accumulated other comprehensive income | Foreign currency exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenue | 335 | 2,236 |
Tax expense | 117 | 610 |
Gain (loss), net of tax | 218 | 1,626 |
Defined benefit plans | Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenue | (139) | 0 |
Tax expense | (20) | 0 |
Gain (loss), net of tax | $ (119) | $ 0 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Shares outstanding for basic earnings per share: | ||
Shares outstanding for basic earnings per share (in shares) | 82,992 | 84,410 |
Shares outstanding for diluted earnings per share: | ||
Shares outstanding for basic earnings per share (in shares) | 82,992 | 84,410 |
Dilutive effect of share-based payment awards (in shares) | 967 | 1,154 |
Shares outstanding for diluted earnings per share (in shares) | 83,959 | 85,564 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule Of Number Of Anti-Dilutive Stock Options) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average number of shares underlying anti-dilutive shares (in shares) | 35 | 2 |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average number of shares underlying anti-dilutive shares (in shares) | 345 | 212 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Damages sought | $ 50,000,000 | ||
Loss contingency accrual | $ 27,500,000 | ||
Guarantee obligation liability | $ 0 | $ 0 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 900,195 | $ 836,549 |
Income from operations | 280,399 | 248,344 |
Interest expense, net | (12,711) | (6,853) |
Income before provision for income taxes | 267,688 | 241,491 |
Provision for income taxes | 53,634 | 47,526 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | 214,054 | 193,965 |
CAG | ||
Segment Reporting Information [Line Items] | ||
Revenue | 827,279 | 761,184 |
Income from operations | 261,750 | 223,125 |
Water | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,883 | 36,371 |
Income from operations | 16,971 | 16,654 |
LPD | ||
Segment Reporting Information [Line Items] | ||
Revenue | 29,208 | 30,870 |
Income from operations | 1,308 | 6,737 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,825 | 8,124 |
Income from operations | $ 370 | $ 1,828 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Estimated fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 740.5 | $ 725.6 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 771.7 | $ 769.8 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities) (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | $ 292 | $ 385 |
Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 7,906 | 9,262 |
Derivative liability | 271 | |
Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4,355 | 5,185 |
Derivative liability | 3,770 | 4,572 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 59 | |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 292 | 385 |
Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 120 | 120 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 292 | 385 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 292 | 385 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 7,906 | 9,262 |
Derivative liability | 271 | |
Significant Other Observable Inputs (Level 2) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4,355 | 5,185 |
Derivative liability | 3,770 | 4,572 |
Significant Other Observable Inputs (Level 2) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 59 | |
Significant Other Observable Inputs (Level 2) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity mutual fund | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | |
Significant Unobservable Inputs (Level 3) | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | $ 120 | $ 120 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Contingent Consideration Liability) (Details) - Contingent payment $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 120 |
Payment of contingent consideration | 0 |
Ending balance | $ 120 |
Hedging Instruments (Narrative)
Hedging Instruments (Narrative) (Details) | 3 Months Ended | |||||||
Mar. 31, 2028 USD ($) | Jun. 18, 2025 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Jun. 30, 2015 EUR (€) | |
Derivative [Line Items] | ||||||||
Credit facility | $ 431,500,000 | $ 579,000,000 | ||||||
Estimated net amount of gain expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | 600,000 | |||||||
Unrealized gain (loss) on Euro-denominated notes, net of tax | (1,490,000) | $ 1,409,000 | ||||||
Unrealized gain (loss) on cross currency swaps, net of tax | (1,240,000) | 996,000 | ||||||
Excluded component recognized as reduction of interest | $ 700,000 | $ 700,000 | ||||||
Euro-Denominated Notes | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, face amount | € | € 88,900,000 | |||||||
Stated interest rate | 1.785% | |||||||
Interest Rate Swap | ||||||||
Derivative [Line Items] | ||||||||
Derivative, fixed interest rate | 3.90% | 3.90% | ||||||
Foreign Currency Exchange Contracts | ||||||||
Derivative [Line Items] | ||||||||
General duration of foreign currency exchange contracts | 24 months | |||||||
Derivative, notional amount | $ 248,700,000 | 258,200,000 | ||||||
Foreign Currency Exchange Contracts | Minimum | ||||||||
Derivative [Line Items] | ||||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 75% | |||||||
Foreign Currency Exchange Contracts | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 85% | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | € | € 90,000,000 | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | Forecast | ||||||||
Derivative [Line Items] | ||||||||
Proceeds from hedge | $ 104,500,000 | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | € | 15,000,000 | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | Forecast | ||||||||
Derivative [Line Items] | ||||||||
Proceeds from hedge | $ 17,500,000 | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | € | € 35,000,000 | |||||||
Cross Currency Swaps | Derivatives and non-derivatives designated as hedging instruments | Forecast | ||||||||
Derivative [Line Items] | ||||||||
Proceeds from hedge | $ 37,800,000 | |||||||
Term Loan | ||||||||
Derivative [Line Items] | ||||||||
Credit facility | $ 250,000,000 | $ 250,000,000 | ||||||
Debt instrument, face amount | 250,000,000 | |||||||
Term Loan | Interest Rate Swap | ||||||||
Derivative [Line Items] | ||||||||
Credit facility | $ 250,000,000 |
Hedging Instruments (Derivative
Hedging Instruments (Derivatives Designated In Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Cost of revenue | $ 357,224 | $ 337,796 |
Foreign currency exchange contracts | Costs of revenue | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ 335 | $ 2,236 |
Hedging Instruments (Schedule O
Hedging Instruments (Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments) (Details) - Derivatives and non-derivatives designated as hedging instruments - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedging instruments on the balance sheet | $ 12,261 | $ 14,447 |
Gross amounts subject to master netting arrangements not offset on the balance sheet | (1,890) | (3,210) |
Net amount | 10,371 | 11,237 |
Total hedging instruments presented on the balance sheet | 100,830 | 99,347 |
Gross amounts subject to master netting arrangements not offset on the balance sheet | (1,890) | (3,210) |
Net amount | 98,940 | 96,137 |
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet | Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 96,730 | 94,775 |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 4,100 | 4,572 |
Cash Flow Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedging instruments on the balance sheet | 4,314 | 5,185 |
Cash Flow Hedging | Foreign currency exchange contracts | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedging instruments on the balance sheet | 41 | 0 |
Cash Flow Hedging | Foreign currency exchange contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 3,525 | 4,572 |
Cash Flow Hedging | Foreign currency exchange contracts | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 245 | 0 |
Cash Flow Hedging | Cross currency swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedging instruments on the balance sheet | 6,877 | 8,135 |
Cash Flow Hedging | Cross currency swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments presented as hedging instruments on the balance sheet | 1,029 | 1,127 |
Cash Flow Hedging | Cross currency swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | 271 | 0 |
Cash Flow Hedging | Interest Rate Swap | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total hedging instruments presented on the balance sheet | $ 59 | $ 0 |