DELAWARE
(State or other jurisdiction of incorporation
or organization)
|
01-0393723
(I.R.S. Employer Identification No.)
|
ONE IDEXX DRIVE, WESTBROOK, MAINE
(Address of principal executive offices)
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04092
(ZIP Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.10 par value per share
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NASDAQ Global Select Market
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Large accelerated filer
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ý
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Term/Abbreviation
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Definition
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2015 Amended Agreement
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Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement executed in June 2015
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AOCI
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Accumulated other comprehensive income or loss
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ASC
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Accounting Standards Codification
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ASU 2014-09
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Accounting Standards Update (“ASU”) 2014-09,
Revenue from Contracts with Customers (Topic 606)
, also referred to as the “New Revenue Standard”
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ASU 2016-02
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ASU 2016-02,
Leases (Topic 842);
also referred to as the "New Leasing Standard"
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ASU 2016-09
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ASU 2016-09,
Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
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CAG
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Companion Animal Group, a reporting segment that provides veterinarians diagnostic products and services and information management solutions that enhance the health and well-being of pets
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cGMP
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The FDA’s current Good Manufacturing Practice regulations
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Credit Facility
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Our $850 million five-year unsecured revolving credit facility under an amended and restated credit agreement that was executed in December 2015, also referred to as line of credit
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EMA
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Extended maintenance agreements
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EPA
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U.S. Environmental Protection Agency
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EPS
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Earnings per share, if not specifically stated, EPS refers to earnings per share on a diluted basis
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EU
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European Union
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FASB
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U.S. Financial Accounting Standards Board
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FDA
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U.S. Food and Drug Administration
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FeLV
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Feline leukemia virus
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FIV
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Feline immunodeficiency virus, similar to the virus that leads to AIDS in humans
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Instrument rebate programs
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Our customer instrument rebate programs, previously referred to as IDEXX Instrument Marketing Programs, which 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
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IVLS
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IDEXX VetLab Station, connects and integrates the diagnostic information from all the IDEXX VetLab analyzers and thus provides reference laboratory information management system capability
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Kits and consumables
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Rapid assay kits and IDEXX VetLab consumables
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LPD
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Livestock, Poultry and Dairy, a reporting segment that provides diagnostic products and services for livestock and poultry health and ensures the quality and safety of milk and improve dairy efficiency
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Moss
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Moss Inc., a supplier of certain components used in our SNAP products and certain livestock and poultry testing kits
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OCI
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Other comprehensive income or loss
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OPTI Medical
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OPTI Medical Systems, Inc., a wholly-owned subsidiary of IDEXX Laboratories Inc., located in Roswell, Georgia. This business manufactures and supplies blood gas analyzers and consumables worldwide for the human point-of-care medical diagnostics market. The Roswell facility also manufactures electrolytes slides (instrument consumables) to run Catalyst One®, Catalyst Dx®, and blood gas analyzers and consumables for the veterinary market, and is also referred to as OPTI.
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Organic revenue growth
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A non-GAAP financial measure that represents the percentage change in revenue, as compared to the same period for the prior year, net of the effect of changes in foreign currency exchange rates, business acquisitions and divestitures. Organic revenue growth should be considered in addition to, and not as a replacement for or as a superior measure to, revenues reported in accordance with U.S. GAAP, and may not be comparable to similarly titled measures reported by other companies.
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Ortho
|
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Ortho Clinical Diagnostics, Inc., a supplier of dry slide consumables used in our Catalyst One and Catalyst Dx Chemistry Analyzers and VetTest Chemistry Analyzer
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Up-Front customer loyalty programs
|
|
Our up-front loyalty programs provides 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
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PACS
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Picture archiving and communication software, our software solution for accessing, storing, and sharing diagnostic images
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R&D
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Research and Development
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Reagent rentals
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Instruments being placed at customer sites at little or no cost in exchange for a long-term customer commitment to purchase instrument consumables
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Reported revenue growth
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The percentage change in revenue reported in accordance with U.S. GAAP, as compared to the same period in the prior year
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S&P
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Standard & Poor’s
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S&P 500 Health Care Index
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The index for the S&P 500 Health Care (U.S. companies) measures the performance of companies that are classified as members in the Global Industry Classification Standard of health care services sub-industry
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S&P 500 Index
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The S&P 500 Index is a U.S. stock market index based on the market capitalization of 500 large companies having common stock listed on the New York Stock Exchange or NASDAQ, including IDEXX
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SaaS
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Software-as-a-service
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SDMA
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Symmetrical dimethyl arginine, a biomarker that detects kidney disease
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SEC
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U.S. Securities and Exchange Commission
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Senior Note Agreements
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Note purchase agreements for the private placement senior notes having an aggregate principal amount of approximately $600 million, referred to as senior notes and long-term debt
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T4
|
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Thyroxine, a hormone produced by the thyroid gland, tested to indicate thyroid health
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2017 Tax Act
|
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The Tax Cuts and Jobs Act enacted on December 22, 2017, which includes significant changes to the U.S. corporate tax system
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U.S. GAAP
|
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Accounting principles generally accepted in the United States of America
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USDA
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United States Department of Agriculture
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Volume commitment programs
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Programs that provide customers with a free or discounted instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of products and services, such as our IDEXX 360 program.
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Water
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Water, a reporting segment that provides water microbiology testing products
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Item No.
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Page No.
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PART I
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PART II
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PART III
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PART IV
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•
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Point-of-care veterinary diagnostic products, comprised of instruments, consumables, and rapid assay test kits;
|
•
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Veterinary reference laboratory diagnostic and consulting services;
|
•
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Practice management and diagnostic imaging systems and services used by veterinaries;
|
•
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Health monitoring, biological materials testing, laboratory diagnostic instruments, and services used by the biomedical research community;
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•
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Diagnostic, health-monitoring products for livestock, poultry, and dairy;
|
•
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Products that test water for certain microbiological contaminants; and
|
•
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Point-of-care electrolytes and blood gas analyzers used in the human point-of-care medical diagnostics market.
|
•
|
SNAP 4Dx Plus, which tests for the six vector-borne diseases; Lyme disease,
Ehrlichia canis, Ehrlichia ewingii, Anaplasma phagocytophilum and Anaplasma platys,
and canine heartworm;
|
•
|
SNAP Heartworm RT, which tests for heartworm;
|
•
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SNAP Parvo, which tests for parvovirus, a virus causing life-threatening damage to the immune system and intestinal tract;
|
•
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SNAP cPL, which tests for canine pancreatitis;
|
•
|
SNAP
Giardia
, which is a fecal test for soluble
Giardia
antigens, a common cause of waterborne infection; and
|
•
|
SNAP Lepto, which tests for leptospirosis, a life-threatening bacterial infection spread through contact with water or soil that has been contaminated by the urine of infected animals.
|
•
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SNAP Feline Triple, which tests for feline immunodeficiency virus (“FIV”) (which is similar to the virus that leads to AIDS in humans), feline leukemia virus (“FeLV”) and feline heartworm;
|
•
|
SNAP FIV/FeLV Combo Test, which tests for FIV and FeLV;
|
•
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SNAP fPL, which tests for feline pancreatitis;
|
•
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SNAP
Giardia
, which is a fecal test for soluble
Giardia
antigens; and
|
•
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SNAP Feline proBNP, which uses a cardiac biomarker (NT proBNP) to test for stretch and stress on the heart.
|
•
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An exclusive license from Tulane University to patents that expire beginning in 2019 and continue into 2020 relating to reagents for the detection of Lyme disease utilized in certain of our SNAP products and a reference laboratory diagnostic test;
|
•
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An exclusive license from Cornell University to patents covering methods for detecting BVDV that started to expire in 2017 and will continue into 2022;
|
•
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Patents relating to reagents and methods for the detection of
Anaplasma phagocytophilum
utilized in certain of our SNAP products that started to expire in 2017 and will continue into 2022;
|
•
|
Patents relating to reagents and methods for the detection of
Ehrlichia canis
utilized in certain of our SNAP products that expire beginning in 2019 and continuing into 2022;
|
•
|
A patent concerning LaserCyte consumables that expires in 2020;
|
•
|
Patents concerning Catalyst
consumables that expire beginning in 2023 and continuing into 2029;
|
•
|
Patents concerning Catalyst instruments that expire beginning in 2026 and continuing into 2035;
|
•
|
Patents relating to reagents and methods for the detection of canine pancreatic lipase that expire in 2026; and
|
•
|
Patents relating to reagents and methods for the detection of SDMA that expire in 2029.
|
•
|
Companion animal diagnostic offerings.
We compete primarily on the basis of ease of use and speed of our products, diagnostic accuracy, product quality, breadth of our product line and services, unique product innovations, fully integrated technology, information management capability, availability of medical consultation, effectiveness of our sales and distribution channels, quality of our technical and customer service, and our pricing relative to the value of our products and services in comparison with competitive products and services. Our major competitors in most geographic locations in North America are Antech Diagnostics, a unit of VCA Inc., a division of Mars Inc.; Zoetis Inc. (including its wholly-owned subsidiary Abaxis, Inc.); Heska Corporation; Samsung Electronics Co., Ltd., and FUJIFILM North America Corporation. We also compete in certain international markets with Zoetis, Fujifilm Holdings Corporation, Samsung Electronics, Arkray, Inc., and BioNote, Inc.
|
•
|
Water, livestock,
poultry,
and dairy testing products.
We compete primarily on the basis of the ease of use, speed, accuracy, product quality and other performance characteristics of our products and services (including unique tests), the breadth of our product line and services, the effectiveness of our sales and distribution channels, the quality of our technical and customer service, our ability to receive regulatory approvals from governing agencies and our pricing relative to the value of our products in comparison with competitive products and services. Our
|
•
|
Veterinary Software, Services and Diagnostic Imaging Systems
. We compete primarily on the basis of functionality, connectivity to equipment and other systems, performance characteristics, effectiveness of our implementation, training process and customer service, information handling capabilities, advances in technologies and our pricing relative to the value of our products and services. We sell these products primarily in North America and Europe. Our largest competitor in North America and the U.K. is Covetrus, Inc., which was formed by the merger of Henry Schein, Inc.'s animal health business and Direct Vet Marketing, Inc. (d/b/a Vets First Choice) in February 2019; we expect that following this merger, Covetrus will continue Henry Schein's animal health business, which offers several systems and leverages its animal health distribution business in sales and service. We also compete with numerous focused smaller companies throughout the markets in which we offer veterinary software, including those offering cloud-based solutions.
|
•
|
Electrolyte and blood gas analyzers for the human point-of-care medical diagnostics market
. We compete primarily on the basis of the ease of use, menu, convenience, international distribution and service, instrument reliability, and our pricing relative to the value of our products. We compete primarily with large human medical diagnostics companies such as Radiometer A/S, Siemens Medical Solutions Diagnostics, Instrumentation Laboratory Company, Abbott Diagnostics, a division of Abbott Laboratories and Roche Diagnostics Corporation.
|
•
|
Developing, manufacturing, and marketing innovative new or improved and cost competitive in-clinic laboratory analyzers that drive sales of IDEXX VetLab instruments, grow our installed base of instruments and increase demand for related recurring sales of consumable products, services, and accessories;
|
•
|
Developing and introducing new proprietary diagnostic tests and services for both our reference laboratories and in-clinic applications that provide valuable medical information to our customers and effectively differentiate our products and services from those of our competitors;
|
•
|
Increasing the value to our customers of our companion animal products and services by enhancing the integration of the information and transactions of these products and the management of diagnostic information derived from our products;
|
•
|
Maintaining premium pricing, including by effectively implementing price increases, for our differentiated products and services through, among other things, effective communication and promotion of the value of our products and services in an environment where many of our competitors promote, market and sell lesser offerings at prices lower than ours;
|
•
|
Providing our veterinary customers with the medical and business tools, information, and resources that enable them to grow their practices and the utilization of our diagnostic products and services, through increased pet visits and enhanced practice of real-time care;
|
•
|
Achieving cost improvements in our worldwide network of reference laboratories by implementing global best practices, including lean processing techniques, incorporating technological enhancements, including laboratory automation and a global laboratory information management system, employing purchasing strategies to maximize leverage of our global scale, increasing the leverage of existing infrastructure and consolidating testing in high volume laboratory hubs;
|
•
|
Achieving cost improvements in the manufacture and service of our in-clinic laboratory analyzers by employing the benefits of economies of scale in both negotiating supply contracts and leveraging manufacturing overhead, and by improving reliability of our instruments;
|
•
|
Continuing to expand, develop, and advance the productivity of our companion animal diagnostic sales, marketing, customer support and logistics organizations in the U.S. and international markets in support of, among other things, our all-direct sales strategies;
|
•
|
Attracting, developing, and retaining key leadership and talent necessary to support all elements of our strategy, which is challenging due to the increasingly competitive and tight labor markets in which we operate;
|
•
|
Expanding our served market and growing our market share by strengthening our sales and marketing activities both within the U.S. and in geographies outside of the U.S.;
|
•
|
Identifying, completing, and integrating acquisitions that enhance our existing businesses or create new business or geographic areas for us;
|
•
|
Developing and implementing new technology and licensing strategies; and
|
•
|
Continuing to effectively manage our growth and expansion on a global scale through, among other things, designing and implementing cost-effective improvements to our processes, procedures, and infrastructure.
|
•
|
Changes in customer needs, expectations or trends and our ability to maintain relationships with key customers;
|
•
|
Our ability to implement our business strategy;
|
•
|
Our stock repurchase program;
|
•
|
Changes in our capital structure, including the issuance of additional debt;
|
•
|
Public announcements (including the timing of these announcements) regarding our business, financial performance and prospects or new products or services, product enhancements or technological advances by our competitors or us;
|
•
|
Trading activity in our stock, including portfolio transactions in our stock by us, our executive officers and directors, and significant stockholders or trading activity that results from the ordinary course rebalancing of stock indices in which we may be included, such as the S&P 500 Index;
|
•
|
Short-interest in our common stock, which could be significant from time to time;
|
•
|
Our inclusion in, or removal from, any stock indices;
|
•
|
Investor perception of us and the industry and markets in which we operate;
|
•
|
Changes in earnings estimates or buy/sell recommendations by securities analysts;
|
•
|
Whether or not we meet earnings estimates of securities analysts who follow us; and
|
•
|
General financial, domestic, international, economic, and market conditions, including overall fluctuations in the U.S. equity markets.
|
•
|
34,200 square feet of laboratory space located in the U.S., used for our Reference Laboratory Diagnostic and Consulting Services line of business of CAG
|
•
|
24,800 square feet of office and laboratory space located in the U.K., used for our Reference Laboratory Diagnostic and Consulting Services line of business of CAG
|
•
|
3,100 square feet of laboratory space located in Canada, used for our Reference Laboratory Diagnostic and Consulting Services line of business of CAG
|
•
|
665,300 total square feet of laboratory, office and warehousing space located throughout the U.S., Europe, Canada, Australia, New Zealand, Brazil, Asia, and South Africa, primarily used for our Reference Laboratory Diagnostic and Consulting Services line of business of CAG
|
•
|
126,200 square feet of distribution, warehousing, and office space in the Netherlands, which serves as our European headquarters
|
•
|
114,400 square feet of industrial space in Tennessee for distribution and warehousing related to various lines of business
|
•
|
92,800 total square feet of office and manufacturing space in France, Switzerland, and Brazil related to our Livestock, Poultry and Dairy line of business
|
•
|
84,300 square feet of office, manufacturing and warehousing space in Georgia related to our CAG and OPTI Medical lines of business
|
•
|
65,000 square feet of office space in Maine for corporate, customer service, and information technology support services
|
•
|
50,300 square feet of office space in Wisconsin related to our Veterinary Software, Services and Diagnostic Imaging Systems line of business of CAG
|
•
|
8,100 square feet of manufacturing space in the U.K. related to our Water line of business
|
Period
|
|
Total Number of Shares Purchased
(a)
|
|
Average Price Paid per Share
(b)
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(1)
(c)
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
(1)
(d)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||
October 1, 2018 to October 31, 2018
|
|
364,975
|
|
|
$
|
216.77
|
|
|
364,975
|
|
|
3,337,367
|
|
November 1, 2018 to November 30, 2018
|
|
77,442
|
|
|
201.94
|
|
|
77,442
|
|
|
3,259,925
|
|
|
December 1, 2018 to December 31, 2018
|
|
48,388
|
|
|
185.86
|
|
|
47,071
|
|
|
3,212,854
|
|
|
Total
|
|
490,805
|
|
(2)
|
$
|
211.38
|
|
|
489,488
|
|
|
3,212,854
|
|
|
|
12/31/2013
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEXX Laboratories, Inc.
|
|
$100.00
|
|
$139.39
|
|
$137.11
|
|
$220.49
|
|
$294.03
|
|
$349.76
|
NASDAQ Index
|
|
$100.00
|
|
$114.75
|
|
$122.74
|
|
$133.62
|
|
$173.22
|
|
$168.30
|
S&P 500 Index
|
|
$100.00
|
|
$113.69
|
|
$115.26
|
|
$129.05
|
|
$157.22
|
|
$150.33
|
S&P 500 Health Care Index
|
|
$100.00
|
|
$125.34
|
|
$133.97
|
|
$130.37
|
|
$159.15
|
|
$169.44
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
|
(in thousands, except per share data)
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
INCOME STATEMENT DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue
|
|
$
|
2,213,242
|
|
|
$
|
1,969,058
|
|
|
$
|
1,775,423
|
|
|
$
|
1,601,892
|
|
|
$
|
1,485,807
|
|
Cost of revenue
|
|
971,700
|
|
|
871,676
|
|
|
799,987
|
|
|
711,622
|
|
|
669,691
|
|
|||||
Gross profit
|
|
1,241,542
|
|
|
1,097,382
|
|
|
975,436
|
|
|
890,270
|
|
|
816,116
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
387,406
|
|
|
354,294
|
|
|
317,058
|
|
|
299,955
|
|
|
283,708
|
|
|||||
General and administrative
|
|
244,938
|
|
|
220,878
|
|
|
207,017
|
|
|
182,510
|
|
|
173,890
|
|
|||||
Research and development
|
|
117,863
|
|
|
109,182
|
|
|
101,122
|
|
|
99,681
|
|
|
98,263
|
|
|||||
Impairment charge
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,212
|
|
|
—
|
|
|||||
Income from operations
|
|
491,335
|
|
|
413,028
|
|
|
350,239
|
|
|
299,912
|
|
|
260,255
|
|
|||||
Interest expense, net
|
|
(33,593
|
)
|
|
(31,971
|
)
|
|
(28,393
|
)
|
|
(26,771
|
)
|
|
(13,700
|
)
|
|||||
Income before provision for income taxes
|
|
457,742
|
|
|
381,057
|
|
|
321,846
|
|
|
273,141
|
|
|
246,555
|
|
|||||
Provision for income taxes
|
|
80,695
|
|
|
117,788
|
|
|
99,792
|
|
|
81,006
|
|
|
64,604
|
|
|||||
Net income
|
|
377,047
|
|
|
263,269
|
|
|
222,054
|
|
|
192,135
|
|
|
181,951
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
|
16
|
|
|
125
|
|
|
9
|
|
|
57
|
|
|
45
|
|
|||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
$
|
377,031
|
|
|
$
|
263,144
|
|
|
$
|
222,045
|
|
|
$
|
192,078
|
|
|
$
|
181,906
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
|
$
|
4.34
|
|
|
$
|
3.00
|
|
|
$
|
2.47
|
|
|
$
|
2.07
|
|
|
$
|
1.82
|
|
Diluted
|
|
$
|
4.26
|
|
|
$
|
2.94
|
|
|
$
|
2.44
|
|
|
$
|
2.05
|
|
|
$
|
1.79
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
|
86,864
|
|
|
87,769
|
|
|
89,732
|
|
|
92,601
|
|
|
100,094
|
|
|||||
Diluted
|
|
88,470
|
|
|
89,567
|
|
|
90,884
|
|
|
93,649
|
|
|
101,503
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
BALANCE SHEET DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
123,794
|
|
|
$
|
187,675
|
|
|
$
|
154,901
|
|
|
$
|
128,994
|
|
|
$
|
322,536
|
|
Marketable securities
(1)
|
|
—
|
|
|
284,255
|
|
|
236,949
|
|
|
213,591
|
|
|
—
|
|
|||||
Cash and cash equivalents and marketable securities
|
|
$
|
123,794
|
|
|
$
|
471,930
|
|
|
$
|
391,850
|
|
|
$
|
342,585
|
|
|
$
|
322,536
|
|
Working capital
|
|
$
|
(116,272
|
)
|
|
$
|
(32,582
|
)
|
|
$
|
(88,984
|
)
|
|
$
|
(35,127
|
)
|
|
$
|
(61,508
|
)
|
Total assets
|
|
$
|
1,537,349
|
|
|
$
|
1,713,416
|
|
|
$
|
1,530,704
|
|
|
$
|
1,474,993
|
|
|
$
|
1,384,211
|
|
Total long-term debt
|
|
$
|
601,348
|
|
|
$
|
606,075
|
|
|
$
|
593,110
|
|
|
$
|
597,085
|
|
|
$
|
350,000
|
|
Total stockholders' equity (deficit)
|
|
$
|
(9,233
|
)
|
|
$
|
(53,842
|
)
|
|
$
|
(108,213
|
)
|
|
$
|
(83,995
|
)
|
|
$
|
117,589
|
|
(1)
|
See "Part II. Item 8. Financial Statements and Supplementary Data, Note
6
.
Marketable Securities
" to the consolidated financial statements included in this Annual Report on Form 10-K for additional information regarding our marketable securities.
|
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
|
|
|
For the Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
|
|
|
|
|
|
|
|
|
Expected stock price volatility
|
|
24
|
%
|
|
26
|
%
|
|
25
|
%
|
Expected term, in years
(1)
|
|
5.8
|
|
|
5.8
|
|
|
5.7
|
|
Risk-free interest rate
|
|
2.7
|
%
|
|
2.0
|
%
|
|
1.2
|
%
|
(1)
|
Options granted have a contractual term of ten years.
|
|
|
For the Years Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Revenue
(dollars in thousands)
|
|
2018
|
|
2017
|
|
Dollar Change
|
|
Reported Revenue Growth
(1)
|
|
Percentage Change from Currency
|
|
Percentage Change from Acquisitions
|
|
Organic Revenue Growth
(1)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
CAG
|
|
$
|
1,935,428
|
|
|
$
|
1,703,377
|
|
|
$
|
232,051
|
|
|
13.6
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
|
12.8
|
%
|
United States
|
|
1,277,146
|
|
|
1,125,364
|
|
|
151,782
|
|
|
13.5
|
%
|
|
—
|
|
|
0.1
|
%
|
|
13.4
|
%
|
|||
International
|
|
658,282
|
|
|
578,013
|
|
|
80,269
|
|
|
13.9
|
%
|
|
2.1
|
%
|
|
—
|
|
|
11.7
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Water
|
|
125,198
|
|
|
114,395
|
|
|
10,803
|
|
|
9.4
|
%
|
|
0.2
|
%
|
|
—
|
|
|
9.3
|
%
|
|||
United States
|
|
58,774
|
|
|
55,482
|
|
|
3,292
|
|
|
5.9
|
%
|
|
—
|
|
|
—
|
|
|
5.9
|
%
|
|||
International
|
|
66,424
|
|
|
58,913
|
|
|
7,511
|
|
|
12.7
|
%
|
|
0.3
|
%
|
|
—
|
|
|
12.4
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LPD
|
|
130,581
|
|
|
128,481
|
|
|
2,100
|
|
|
1.6
|
%
|
|
1.0
|
%
|
|
—
|
|
|
0.6
|
%
|
|||
United States
|
|
13,932
|
|
|
14,108
|
|
|
(176
|
)
|
|
(1.3
|
%)
|
|
—
|
|
|
—
|
|
|
(1.3
|
%)
|
|||
International
|
|
116,649
|
|
|
114,373
|
|
|
2,276
|
|
|
2.0
|
%
|
|
1.1
|
%
|
|
—
|
|
|
0.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
22,035
|
|
|
22,805
|
|
|
(770
|
)
|
|
(3.4
|
%)
|
|
0.3
|
%
|
|
—
|
|
|
(3.7
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Company
|
|
$
|
2,213,242
|
|
|
$
|
1,969,058
|
|
|
$
|
244,184
|
|
|
12.4
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
|
11.6
|
%
|
United States
|
|
1,357,909
|
|
|
1,203,547
|
|
|
154,362
|
|
|
12.8
|
%
|
|
—
|
|
|
0.1
|
%
|
|
12.7
|
%
|
|||
International
|
|
855,333
|
|
|
765,511
|
|
|
89,822
|
|
|
11.7
|
%
|
|
1.8
|
%
|
|
—
|
|
|
9.9
|
%
|
(1)
|
Reported revenue growth and organic revenue growth may not recalculate due to rounding.
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Total Company - Results of Operations
(dollars in thousands)
|
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
2,213,242
|
|
|
|
|
|
$
|
1,969,058
|
|
|
|
|
$
|
244,184
|
|
|
12.4
|
%
|
|
Cost of revenue
|
|
971,700
|
|
|
|
|
|
871,676
|
|
|
|
|
100,024
|
|
|
11.5
|
%
|
||||
Gross profit
|
|
1,241,542
|
|
|
56.1
|
%
|
|
1,097,382
|
|
|
55.7
|
%
|
|
144,160
|
|
|
13.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
387,406
|
|
|
17.5
|
%
|
|
354,294
|
|
|
18.0
|
%
|
|
33,112
|
|
|
9.3
|
%
|
|||
General and administrative
|
|
244,938
|
|
|
11.1
|
%
|
|
220,878
|
|
|
11.2
|
%
|
|
24,060
|
|
|
10.9
|
%
|
|||
Research and development
|
|
117,863
|
|
|
5.3
|
%
|
|
109,182
|
|
|
5.5
|
%
|
|
8,681
|
|
|
8.0
|
%
|
|||
Total operating expenses
|
|
750,207
|
|
|
33.9
|
%
|
|
684,354
|
|
|
34.8
|
%
|
|
65,853
|
|
|
9.6
|
%
|
|||
Income from operations
|
|
$
|
491,335
|
|
|
22.2
|
%
|
|
$
|
413,028
|
|
|
21.0
|
%
|
|
$
|
78,307
|
|
|
19.0
|
%
|
(1)
|
Reported revenue growth and organic revenue growth may not recalculate due to rounding.
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
1,935,428
|
|
|
|
|
$
|
1,703,377
|
|
|
|
|
$
|
232,051
|
|
|
13.6
|
%
|
||
Cost of revenue
|
|
868,919
|
|
|
|
|
766,579
|
|
|
|
|
102,340
|
|
|
13.4
|
%
|
|||||
Gross profit
|
|
1,066,509
|
|
|
55.1
|
%
|
|
936,798
|
|
|
55.0
|
%
|
|
129,711
|
|
|
13.8
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
345,737
|
|
|
17.9
|
%
|
|
312,497
|
|
|
18.3
|
%
|
|
33,240
|
|
|
10.6
|
%
|
|||
General and administrative
|
|
204,425
|
|
|
10.6
|
%
|
|
180,907
|
|
|
10.6
|
%
|
|
23,518
|
|
|
13.0
|
%
|
|||
Research and development
|
|
86,864
|
|
|
4.5
|
%
|
|
79,837
|
|
|
4.7
|
%
|
|
7,027
|
|
|
8.8
|
%
|
|||
Total operating expenses
|
|
637,026
|
|
|
32.9
|
%
|
|
573,241
|
|
|
33.7
|
%
|
|
63,785
|
|
|
11.1
|
%
|
|||
Income from operations
|
|
$
|
429,483
|
|
|
22.2
|
%
|
|
$
|
363,557
|
|
|
21.3
|
%
|
|
$
|
65,926
|
|
|
18.1
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
125,198
|
|
|
|
|
$
|
114,395
|
|
|
|
|
$
|
10,803
|
|
|
9.4
|
%
|
||
Cost of revenue
|
|
37,106
|
|
|
|
|
35,030
|
|
|
|
|
2,076
|
|
|
5.9
|
%
|
|||||
Gross profit
|
|
88,092
|
|
|
70.4
|
%
|
|
79,365
|
|
|
69.4
|
%
|
|
8,727
|
|
|
11.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
15,900
|
|
|
12.7
|
%
|
|
14,482
|
|
|
12.7
|
%
|
|
1,418
|
|
|
9.8
|
%
|
|||
General and administrative
|
|
13,005
|
|
|
10.4
|
%
|
|
11,803
|
|
|
10.3
|
%
|
|
1,202
|
|
|
10.2
|
%
|
|||
Research and development
|
|
2,580
|
|
|
2.1
|
%
|
|
2,464
|
|
|
2.2
|
%
|
|
116
|
|
|
4.7
|
%
|
|||
Total operating expenses
|
|
31,485
|
|
|
25.1
|
%
|
|
28,749
|
|
|
25.1
|
%
|
|
2,736
|
|
|
9.5
|
%
|
|||
Income from operations
|
|
$
|
56,607
|
|
|
45.2
|
%
|
|
$
|
50,616
|
|
|
44.2
|
%
|
|
$
|
5,991
|
|
|
11.8
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
130,581
|
|
|
|
|
$
|
128,481
|
|
|
|
|
$
|
2,100
|
|
|
1.6
|
%
|
||
Cost of revenue
|
|
55,621
|
|
|
|
|
56,341
|
|
|
|
|
(720
|
)
|
|
(1.3
|
%)
|
|||||
Gross profit
|
|
74,960
|
|
|
57.4
|
%
|
|
72,140
|
|
|
56.1
|
%
|
|
2,820
|
|
|
3.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
24,594
|
|
|
18.8
|
%
|
|
24,801
|
|
|
19.3
|
%
|
|
(207
|
)
|
|
(0.8
|
%)
|
|||
General and administrative
|
|
19,159
|
|
|
14.7
|
%
|
|
18,723
|
|
|
14.6
|
%
|
|
436
|
|
|
2.3
|
%
|
|||
Research and development
|
|
11,795
|
|
|
9.0
|
%
|
|
12,152
|
|
|
9.5
|
%
|
|
(357
|
)
|
|
(2.9
|
%)
|
|||
Total operating expenses
|
|
55,548
|
|
|
42.5
|
%
|
|
55,676
|
|
|
43.3
|
%
|
|
(128
|
)
|
|
(0.2
|
%)
|
|||
Income from operations
|
|
$
|
19,412
|
|
|
14.9
|
%
|
|
$
|
16,464
|
|
|
12.8
|
%
|
|
$
|
2,948
|
|
|
17.9
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
22,035
|
|
|
|
|
$
|
22,805
|
|
|
|
|
$
|
(770
|
)
|
|
(3.4
|
%)
|
||
Cost of revenue
|
|
11,785
|
|
|
|
|
11,417
|
|
|
|
|
368
|
|
|
3.2
|
%
|
|||||
Gross profit
|
|
10,250
|
|
|
46.5
|
%
|
|
11,388
|
|
|
49.9
|
%
|
|
(1,138
|
)
|
|
(10.0
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing
|
|
1,806
|
|
|
8.2
|
%
|
|
2,093
|
|
|
9.2
|
%
|
|
(287
|
)
|
|
(13.7
|
%)
|
|||
General and administrative
|
|
3,741
|
|
|
17.0
|
%
|
|
3,359
|
|
|
14.7
|
%
|
|
382
|
|
|
11.4
|
%
|
|||
Research and development
|
|
974
|
|
|
4.4
|
%
|
|
1,099
|
|
|
4.8
|
%
|
|
(125
|
)
|
|
(11.4
|
%)
|
|||
Total operating expenses
|
|
6,521
|
|
|
29.6
|
%
|
|
6,551
|
|
|
28.7
|
%
|
|
(30
|
)
|
|
(0.5
|
%)
|
|||
Income from operations
|
|
$
|
3,729
|
|
|
16.9
|
%
|
|
$
|
4,837
|
|
|
21.2
|
%
|
|
$
|
(1,108
|
)
|
|
(22.9
|
%)
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||
Results of Operations
(dollars in thousands) |
|
2018
|
|
Percent of Revenue
|
|
2017
|
|
Percent of Revenue
|
|
Amount
|
|
Percentage
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
N/A
|
|
Cost of revenue
|
|
(1,731
|
)
|
|
|
|
2,309
|
|
|
|
|
(4,040
|
)
|
|
(175.0
|
%)
|
|||
Gross profit
|
|
1,731
|
|
|
|
|
(2,309
|
)
|
|
|
|
4,040
|
|
|
(175.0
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales and marketing
|
|
(631
|
)
|
|
|
|
421
|
|
|
|
|
(1,052
|
)
|
|
(249.9
|
%)
|
|||
General and administrative
|
|
4,608
|
|
|
|
|
6,086
|
|
|
|
|
(1,478
|
)
|
|
(24.3
|
%)
|
|||
Research and development
|
|
15,650
|
|
|
|
|
13,630
|
|
|
|
|
2,020
|
|
|
14.8
|
%
|
|||
Total operating expenses
|
|
19,627
|
|
|
|
|
20,137
|
|
|
|
|
(510
|
)
|
|
(2.5
|
%)
|
|||
Income from operations
|
|
$
|
(17,896
|
)
|
|
|
|
$
|
(22,446
|
)
|
|
|
|
$
|
4,550
|
|
|
(20.3
|
%)
|
|
|
For the Years Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Revenue
(dollars in thousands)
|
|
2017
|
|
2016
|
|
Dollar Change
|
|
Reported Revenue Growth
(1)
|
|
Percentage Change from Currency
|
|
Percentage Change from Acquisitions
|
|
Organic Revenue Growth
(1)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CAG
|
|
$
|
1,703,377
|
|
|
$
|
1,522,689
|
|
|
$
|
180,688
|
|
|
11.9
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|
11.4
|
%
|
United States
|
|
1,125,364
|
|
|
1,017,065
|
|
|
108,299
|
|
|
10.6
|
%
|
|
—
|
|
|
0.2
|
%
|
|
10.5
|
%
|
|||
International
|
|
578,013
|
|
|
505,624
|
|
|
72,389
|
|
|
14.3
|
%
|
|
0.8
|
%
|
|
0.4
|
%
|
|
13.2
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Water
|
|
114,395
|
|
|
103,579
|
|
|
10,816
|
|
|
10.4
|
%
|
|
0.3
|
%
|
|
—
|
|
|
10.2
|
%
|
|||
United States
|
|
55,482
|
|
|
52,852
|
|
|
2,630
|
|
|
5.0
|
%
|
|
—
|
|
|
—
|
|
|
5.0
|
%
|
|||
International
|
|
58,913
|
|
|
50,727
|
|
|
8,186
|
|
|
16.1
|
%
|
|
0.6
|
%
|
|
—
|
|
|
15.6
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LPD
|
|
128,481
|
|
|
126,491
|
|
|
1,990
|
|
|
1.6
|
%
|
|
1.1
|
%
|
|
—
|
|
|
0.5
|
%
|
|||
United States
|
|
14,108
|
|
|
13,253
|
|
|
855
|
|
|
6.5
|
%
|
|
—
|
|
|
—
|
|
|
6.5
|
%
|
|||
International
|
|
114,373
|
|
|
113,238
|
|
|
1,135
|
|
|
1.0
|
%
|
|
1.2
|
%
|
|
—
|
|
|
(0.2
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other
|
|
22,805
|
|
|
22,664
|
|
|
141
|
|
|
0.6
|
%
|
|
0.1
|
%
|
|
—
|
|
|
0.5
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Company
|
|
$
|
1,969,058
|
|
|
$
|
1,775,423
|
|
|
$
|
193,635
|
|
|
10.9
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|
10.4
|
%
|
United States
|
|
1,203,547
|
|
|
1,089,595
|
|
|
113,952
|
|
|
10.5
|
%
|
|
—
|
|
|
0.2
|
%
|
|
10.3
|
%
|
|||
International
|
|
765,511
|
|
|
685,828
|
|
|
79,683
|
|
|
11.6
|
%
|
|
0.8
|
%
|
|
0.3
|
%
|
|
10.5
|
%
|
(1)
|
Reported revenue growth and organic revenue growth may not recalculate due to rounding.
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Total Company - Results of Operations
(dollars in thousands)
|
|
2017
|
|
Percent of Revenue
|
|
2016
|
|
Percent of Revenue
|
|
Amount
|
|
|
Percentage
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
1,969,058
|
|
|
|
|
|
$
|
1,775,423
|
|
|
|
|
|
$
|
193,635
|
|
|
10.9
|
%
|
Cost of revenue
|
|
871,676
|
|
|
|
|
|
799,987
|
|
|
|
|
|
71,689
|
|
|
9.0
|
%
|
|||
Gross profit
|
|
1,097,382
|
|
|
55.7
|
%
|
|
975,436
|
|
|
54.9
|
%
|
|
121,946
|
|
|
12.5
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
354,294
|
|
|
18.0
|
%
|
|
317,058
|
|
|
17.9
|
%
|
|
37,236
|
|
|
11.7
|
%
|
|||
General and administrative
|
|
220,878
|
|
|
11.2
|
%
|
|
207,017
|
|
|
11.7
|
%
|
|
13,861
|
|
|
6.7
|
%
|
|||
Research and development
|
|
109,182
|
|
|
5.5
|
%
|
|
101,122
|
|
|
5.7
|
%
|
|
8,060
|
|
|
8.0
|
%
|
|||
Total operating expenses
|
|
684,354
|
|
|
34.8
|
%
|
|
625,197
|
|
|
35.2
|
%
|
|
59,157
|
|
|
9.5
|
%
|
|||
Income from operations
|
|
$
|
413,028
|
|
|
21.0
|
%
|
|
$
|
350,239
|
|
|
19.7
|
%
|
|
$
|
62,789
|
|
|
17.9
|
%
|
(1)
|
Reported revenue growth and organic revenue growth may not recalculate due to rounding.
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2017
|
|
Percent of Revenue
|
|
2016
|
|
Percent of Revenue
|
|
Amount
|
|
|
Percentage
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
1,703,377
|
|
|
|
|
|
$
|
1,522,689
|
|
|
|
|
|
$
|
180,688
|
|
|
11.9
|
%
|
Cost of revenue
|
|
766,579
|
|
|
|
|
|
702,367
|
|
|
|
|
|
64,212
|
|
|
9.1
|
%
|
|||
Gross profit
|
|
936,798
|
|
|
55.0
|
%
|
|
820,322
|
|
|
53.9
|
%
|
|
116,476
|
|
|
14.2
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
312,497
|
|
|
18.3
|
%
|
|
277,377
|
|
|
18.2
|
%
|
|
35,120
|
|
|
12.7
|
%
|
|||
General and administrative
|
|
180,907
|
|
|
10.6
|
%
|
|
168,637
|
|
|
11.1
|
%
|
|
12,270
|
|
|
7.3
|
%
|
|||
Research and development
|
|
79,837
|
|
|
4.7
|
%
|
|
72,966
|
|
|
4.8
|
%
|
|
6,871
|
|
|
9.4
|
%
|
|||
Total operating expenses
|
|
573,241
|
|
|
33.7
|
%
|
|
518,980
|
|
|
34.1
|
%
|
|
54,261
|
|
|
10.5
|
%
|
|||
Income from operations
|
|
$
|
363,557
|
|
|
21.3
|
%
|
|
$
|
301,342
|
|
|
19.8
|
%
|
|
$
|
62,215
|
|
|
20.6
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2017
|
|
Percent of Revenue
|
|
2016
|
|
Percent of Revenue
|
|
Amount
|
|
|
Percentage
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
114,395
|
|
|
|
|
|
$
|
103,579
|
|
|
|
|
|
$
|
10,816
|
|
|
10.4
|
%
|
Cost of revenue
|
|
35,030
|
|
|
|
|
|
31,701
|
|
|
|
|
|
3,329
|
|
|
10.5
|
%
|
|||
Gross profit
|
|
79,365
|
|
|
69.4
|
%
|
|
71,878
|
|
|
69.4
|
%
|
|
7,487
|
|
|
10.4
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
14,482
|
|
|
12.7
|
%
|
|
13,201
|
|
|
12.7
|
%
|
|
1,281
|
|
|
9.7
|
%
|
|||
General and administrative
|
|
11,803
|
|
|
10.3
|
%
|
|
10,426
|
|
|
10.1
|
%
|
|
1,377
|
|
|
13.2
|
%
|
|||
Research and development
|
|
2,464
|
|
|
2.2
|
%
|
|
2,549
|
|
|
2.5
|
%
|
|
(85
|
)
|
|
(3.3
|
%)
|
|||
Total operating expenses
|
|
28,749
|
|
|
25.1
|
%
|
|
26,176
|
|
|
25.3
|
%
|
|
2,573
|
|
|
9.8
|
%
|
|||
Income from operations
|
|
$
|
50,616
|
|
|
44.2
|
%
|
|
$
|
45,702
|
|
|
44.1
|
%
|
|
$
|
4,914
|
|
|
10.8
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2017
|
|
Percent of Revenue
|
|
2016
|
|
Percent of Revenue
|
|
Amount
|
|
|
Percentage
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
128,481
|
|
|
|
|
|
$
|
126,491
|
|
|
|
|
|
$
|
1,990
|
|
|
1.6
|
%
|
Cost of revenue
|
|
56,341
|
|
|
|
|
|
52,690
|
|
|
|
|
|
3,651
|
|
|
6.9
|
%
|
|||
Gross profit
|
|
72,140
|
|
|
56.1
|
%
|
|
73,801
|
|
|
58.3
|
%
|
|
(1,661
|
)
|
|
(2.3
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
24,801
|
|
|
19.3
|
%
|
|
22,723
|
|
|
18.0
|
%
|
|
2,078
|
|
|
9.1
|
%
|
|||
General and administrative
|
|
18,723
|
|
|
14.6
|
%
|
|
20,193
|
|
|
16.0
|
%
|
|
(1,470
|
)
|
|
(7.3
|
%)
|
|||
Research and development
|
|
12,152
|
|
|
9.5
|
%
|
|
11,971
|
|
|
9.5
|
%
|
|
181
|
|
|
1.5
|
%
|
|||
Total operating expenses
|
|
55,676
|
|
|
43.3
|
%
|
|
54,887
|
|
|
43.4
|
%
|
|
789
|
|
|
1.4
|
%
|
|||
Income from operations
|
|
$
|
16,464
|
|
|
12.8
|
%
|
|
$
|
18,914
|
|
|
15.0
|
%
|
|
$
|
(2,450
|
)
|
|
(13.0
|
%)
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||||
Results of Operations
(dollars in thousands) |
|
2017
|
|
Percent of Revenue
|
|
2016
|
|
Percent of Revenue
|
|
Amount
|
|
|
Percentage
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
22,805
|
|
|
|
|
|
$
|
22,664
|
|
|
|
|
|
$
|
141
|
|
|
0.6
|
%
|
Cost of revenue
|
|
11,417
|
|
|
|
|
|
11,103
|
|
|
|
|
|
314
|
|
|
2.8
|
%
|
|||
Gross profit
|
|
11,388
|
|
|
49.9
|
%
|
|
11,561
|
|
|
51.0
|
%
|
|
(173
|
)
|
|
(1.5
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
|
2,093
|
|
|
9.2
|
%
|
|
2,870
|
|
|
12.7
|
%
|
|
(777
|
)
|
|
(27.1
|
%)
|
|||
General and administrative
|
|
3,359
|
|
|
14.7
|
%
|
|
4,908
|
|
|
21.7
|
%
|
|
(1,549
|
)
|
|
(31.6
|
%)
|
|||
Research and development
|
|
1,099
|
|
|
4.8
|
%
|
|
2,899
|
|
|
12.8
|
%
|
|
(1,800
|
)
|
|
(62.1
|
%)
|
|||
Total operating expenses
|
|
6,551
|
|
|
28.7
|
%
|
|
10,677
|
|
|
47.1
|
%
|
|
(4,126
|
)
|
|
(38.6
|
%)
|
|||
Income from operations
|
|
$
|
4,837
|
|
|
21.2
|
%
|
|
$
|
884
|
|
|
3.9
|
%
|
|
$
|
3,953
|
|
|
447.2
|
%
|
|
|
For the Years Ended December 31,
|
|
Change
|
|||||||||||||||
Results of Operations
(dollars in thousands) |
|
2017
|
|
|
|
2016
|
|
|
|
Amount
|
|
|
Percentage
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
N/A
|
|
Cost of revenue
|
|
2,309
|
|
|
|
|
2,126
|
|
|
|
|
183
|
|
|
8.6
|
%
|
|||
Gross profit
|
|
(2,309
|
)
|
|
|
|
(2,126
|
)
|
|
|
|
(183
|
)
|
|
8.6
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing
|
|
421
|
|
|
|
|
887
|
|
|
|
|
(466
|
)
|
|
(52.5
|
%)
|
|||
General and administrative
|
|
6,086
|
|
|
|
|
2,853
|
|
|
|
|
3,233
|
|
|
113.3
|
%
|
|||
Research and development
|
|
13,630
|
|
|
|
|
10,737
|
|
|
|
|
2,893
|
|
|
26.9
|
%
|
|||
Total operating expenses
|
|
20,137
|
|
|
|
|
14,477
|
|
|
|
|
5,660
|
|
|
39.1
|
%
|
|||
Income from operations
|
|
$
|
(22,446
|
)
|
|
|
|
$
|
(16,603
|
)
|
|
|
|
$
|
(5,843
|
)
|
|
35.2
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
Cash, cash equivalents and marketable securities
(dollars in millions)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
U.S.
|
|
$
|
2.0
|
|
|
$
|
5.9
|
|
|
$
|
4.8
|
|
Foreign
|
|
121.8
|
|
|
466.0
|
|
|
387.0
|
|
|||
Total
|
|
$
|
123.8
|
|
|
$
|
471.9
|
|
|
$
|
391.8
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries
|
|
$
|
11.1
|
|
|
$
|
334.3
|
|
|
$
|
285.8
|
|
|
|
|
|
|
|
|
|
|
|
|||
Percentage of total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries
|
|
9.0
|
%
|
|
70.8
|
%
|
|
72.9
|
%
|
Marketable securities
(dollars in millions)
|
|
For the Year Ended December 31, 2017
|
|
Percent of Total
|
|||
|
|
|
|
|
|
||
Corporate bonds
|
|
$
|
140.9
|
|
|
49.6
|
%
|
Certificates of deposit
|
|
58.5
|
|
|
20.6
|
%
|
|
Commercial paper
|
|
29.2
|
|
|
10.3
|
%
|
|
Asset backed securities
|
|
22.2
|
|
|
7.8
|
%
|
|
U.S. government bonds
|
|
15.6
|
|
|
5.5
|
%
|
|
Agency bonds
|
|
10.9
|
|
|
3.8
|
%
|
|
Treasury bills
|
|
7.0
|
|
|
2.5
|
%
|
|
Total marketable securities
|
|
$
|
284.3
|
|
|
|
|
|
|
For the Three Months Ended
|
|||||||||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30,
2018
|
|
March 31, 2018
|
|
December 31, 2017
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding
(1)
|
|
42.6
|
|
|
44.3
|
|
|
41.2
|
|
|
42.0
|
|
|
41.7
|
|
Inventory turns
(2)
|
|
2.3
|
|
|
2.1
|
|
|
2.2
|
|
|
2.0
|
|
|
2.2
|
|
(1)
|
Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days.
|
(2)
|
Inventory turns represent inventory-related cost of product revenue for the 12 months preceding each quarter-end divided by the inventory balance at the end of the quarter.
|
|
|
For the Years Ended December 31,
|
||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
$
|
400,084
|
|
|
$
|
373,276
|
|
|
$
|
338,943
|
|
Net cash provided (used) by investing activities
|
|
138,602
|
|
|
(138,688
|
)
|
|
(90,786
|
)
|
|||
Net cash used by financing activities
|
|
(597,799
|
)
|
|
(208,016
|
)
|
|
(222,196
|
)
|
|||
Net effect of changes in exchange rates on cash
|
|
(4,768
|
)
|
|
6,202
|
|
|
(54
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(63,881
|
)
|
|
$
|
32,774
|
|
|
$
|
25,907
|
|
|
|
For the Years Ended December 31,
|
||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
||||
Accounts receivable
|
|
$
|
(18,401
|
)
|
|
$
|
(24,918
|
)
|
|
$
|
(22,554
|
)
|
Inventories
|
|
(25,623
|
)
|
|
(19,062
|
)
|
|
7,648
|
|
|||
Accounts payable
|
|
(166
|
)
|
|
1,391
|
|
|
2,117
|
|
|||
Deferred revenue
|
|
(7,719
|
)
|
|
3,551
|
|
|
7,672
|
|
|||
Other assets and liabilities
|
|
(39,731
|
)
|
|
47,418
|
|
|
12,491
|
|
|||
Tax benefit from share-based compensation arrangements
|
|
—
|
|
|
—
|
|
|
(14,702
|
)
|
|||
Total change in cash due to changes in operating assets and liabilities and the tax benefit from share-based compensation arrangements
|
|
$
|
(91,640
|
)
|
|
$
|
8,380
|
|
|
$
|
(7,328
|
)
|
|
December
|
|
|
Trailing 12 Months Adjusted EBITDA:
|
2018
|
|
|
|
|
|
|
Net income attributable to stockholders
|
$
|
377,031
|
|
Interest expense
|
34,744
|
|
|
Provision for income taxes
|
80,695
|
|
|
Depreciation and amortization
|
83,178
|
|
|
Share-based compensation expense
|
25,157
|
|
|
Extraordinary and other non-recurring non-cash charges
|
2,629
|
|
|
Adjusted EBITDA
|
$
|
603,434
|
|
|
|
||
|
|
||
|
December
|
|
|
Debt to Adjusted EBITDA Ratio:
|
2018
|
|
|
|
|
|
|
Line of credit
|
$
|
398,937
|
|
Long-term debt
|
601,348
|
|
|
Total debt
|
1,000,285
|
|
|
Acquisition-related consideration payable
|
5,037
|
|
|
Capitalized leases
|
269
|
|
|
U.S. GAAP change - deferred financing costs
|
429
|
|
|
Gross debt
|
$
|
1,006,020
|
|
Gross debt to Adjusted EBITDA ratio
|
1.67
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
(123,794
|
)
|
Net debt
|
$
|
882,226
|
|
Net debt to Adjusted EBITDA ratio
|
1.46
|
|
Contractual obligations (in thousands)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt obligations
(1)
|
|
$
|
721,730
|
|
|
$
|
20,299
|
|
|
$
|
89,907
|
|
|
$
|
182,810
|
|
|
$
|
428,714
|
|
Operating leases
|
|
106,819
|
|
|
19,351
|
|
|
31,637
|
|
|
19,317
|
|
|
36,514
|
|
|||||
Purchase obligations
(2)
|
|
284,314
|
|
|
247,407
|
|
|
29,151
|
|
|
1,536
|
|
|
6,220
|
|
|||||
Minimum royalty payments
|
|
2,114
|
|
|
993
|
|
|
451
|
|
|
167
|
|
|
503
|
|
|||||
Total contractual cash obligations
|
|
$
|
1,114,977
|
|
|
$
|
288,050
|
|
|
$
|
151,146
|
|
|
$
|
203,830
|
|
|
$
|
471,951
|
|
(1)
|
Long-term debt amounts include interest payments associated with long-term debt.
|
(2)
|
Purchase obligations include agreements and purchase orders to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities, pricing, and approximate timing of purchase transactions.
|
|
|
For the Years Ended December 31,
|
||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
||||
Revenue impact
|
|
$
|
13,623
|
|
|
$
|
6,615
|
|
|
$
|
(14,105
|
)
|
|
|
|
|
|
|
|
|
|
|
|||
Operating profit impact, excluding hedge activity
|
|
$
|
2,260
|
|
|
$
|
2,542
|
|
|
$
|
(6,921
|
)
|
|
|
|
|
|
|
|
|
|
|
|||
Hedge gains - prior year
|
|
(27
|
)
|
|
(3,620
|
)
|
|
(20,879
|
)
|
|||
Hedge (loss) gain - current year
|
|
(976
|
)
|
|
27
|
|
|
3,620
|
|
|||
Hedging activity impact
|
|
(1,003
|
)
|
|
(3,593
|
)
|
|
(17,259
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Operating profit impact, including hedge activity
|
|
$
|
1,257
|
|
|
$
|
(1,051
|
)
|
|
$
|
(24,180
|
)
|
Diluted earnings per share impact, including hedge activity
|
|
$
|
0.01
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.20
|
)
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
The following documents are filed as part of this Form 10-K:
|
||
|
|
|
(a) (1) and (a) (2)
|
The financial statements set forth in the Index to Consolidated Financial Statements and the Consolidated Financial Statement Schedule are filed as a part of this Annual Report on Form 10-K commencing on page F-1.
|
|
|
|
|
(a)(3) and (b)
|
The exhibits listed in the accompanying Exhibit Index are filed as part of this Annual Report on Form 10-K and either filed herewith or incorporated by reference herein, as applicable.
|
|
|
|
Page No.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
|
||
ASSETS
|
|
|
|
|
|
||
Current Assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
123,794
|
|
|
$
|
187,675
|
|
Marketable securities
|
—
|
|
|
284,255
|
|
||
Accounts receivable, net of reserves of $4,702 in 2018 and $4,576 in 2017
|
248,855
|
|
|
234,597
|
|
||
Inventories
|
173,303
|
|
|
164,318
|
|
||
Other current assets
|
108,220
|
|
|
101,140
|
|
||
Total current assets
|
654,172
|
|
|
971,985
|
|
||
Long-Term Assets:
|
|
|
|
||||
Property and equipment, net
|
437,270
|
|
|
379,096
|
|
||
Goodwill
|
214,489
|
|
|
199,873
|
|
||
Intangible assets, net
|
41,825
|
|
|
43,846
|
|
||
Other long-term assets
|
189,593
|
|
|
118,616
|
|
||
Total long-term assets
|
883,177
|
|
|
741,431
|
|
||
TOTAL ASSETS
|
$
|
1,537,349
|
|
|
$
|
1,713,416
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
69,534
|
|
|
$
|
66,968
|
|
Accrued liabilities
|
260,683
|
|
|
253,418
|
|
||
Line of credit
|
398,937
|
|
|
655,000
|
|
||
Current portion of deferred revenue
|
41,290
|
|
|
29,181
|
|
||
Total current liabilities
|
770,444
|
|
|
1,004,567
|
|
||
Long-Term Liabilities:
|
|
|
|
||||
Deferred income tax liabilities
|
29,267
|
|
|
25,353
|
|
||
Long-term debt
|
601,348
|
|
|
606,075
|
|
||
Long-term deferred revenue, net of current portion
|
60,697
|
|
|
35,545
|
|
||
Other long-term liabilities
|
84,826
|
|
|
95,718
|
|
||
Total long-term liabilities
|
776,138
|
|
|
762,691
|
|
||
Total liabilities
|
1,546,582
|
|
|
1,767,258
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Note 15)
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ Equity (Deficit):
|
|
|
|
||||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,087 shares in 2018 and 104,275 shares in 2017; Outstanding: 86,100 shares in 2018 and 87,104 shares in 2017
|
10,509
|
|
|
10,428
|
|
||
Additional paid-in capital
|
1,138,216
|
|
|
1,073,931
|
|
||
Deferred stock units: Outstanding: 162 units in 2018 and 229 units in 2017
|
4,524
|
|
|
5,988
|
|
||
Retained earnings
|
1,167,928
|
|
|
803,545
|
|
||
Accumulated other comprehensive loss
|
(41,791
|
)
|
|
(36,470
|
)
|
||
Treasury stock, at cost: 18,988 shares in 2018 and 17,171 shares in 2017
|
(2,288,899
|
)
|
|
(1,911,528
|
)
|
||
Total IDEXX Laboratories, Inc. stockholders’ deficit
|
(9,513
|
)
|
|
(54,106
|
)
|
||
Noncontrolling interest
|
280
|
|
|
264
|
|
||
Total stockholders’ equity (deficit)
|
(9,233
|
)
|
|
(53,842
|
)
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
$
|
1,537,349
|
|
|
$
|
1,713,416
|
|
|
|
|
|
|
|
||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Revenue:
|
|
|
|
|
|
|
|
|
|
|||
Product revenue
|
|
$
|
1,322,683
|
|
|
$
|
1,176,115
|
|
|
$
|
1,070,973
|
|
Service revenue
|
|
890,559
|
|
|
792,943
|
|
|
704,450
|
|
|||
Total revenue
|
|
2,213,242
|
|
|
1,969,058
|
|
|
1,775,423
|
|
|||
Cost of Revenue:
|
|
|
|
|
|
|
||||||
Cost of product revenue
|
|
494,889
|
|
|
446,449
|
|
|
416,810
|
|
|||
Cost of service revenue
|
|
476,811
|
|
|
425,227
|
|
|
383,177
|
|
|||
Total cost of revenue
|
|
971,700
|
|
|
871,676
|
|
|
799,987
|
|
|||
Gross profit
|
|
1,241,542
|
|
|
1,097,382
|
|
|
975,436
|
|
|||
Expenses:
|
|
|
|
|
|
|
||||||
Sales and marketing
|
|
387,406
|
|
|
354,294
|
|
|
317,058
|
|
|||
General and administrative
|
|
244,938
|
|
|
220,878
|
|
|
207,017
|
|
|||
Research and development
|
|
117,863
|
|
|
109,182
|
|
|
101,122
|
|
|||
Income from operations
|
|
491,335
|
|
|
413,028
|
|
|
350,239
|
|
|||
Interest expense
|
|
(34,744
|
)
|
|
(37,225
|
)
|
|
(32,049
|
)
|
|||
Interest income
|
|
1,151
|
|
|
5,254
|
|
|
3,656
|
|
|||
Income before provision for income taxes
|
|
457,742
|
|
|
381,057
|
|
|
321,846
|
|
|||
Provision for income taxes
|
|
80,695
|
|
|
117,788
|
|
|
99,792
|
|
|||
Net income
|
|
377,047
|
|
|
263,269
|
|
|
222,054
|
|
|||
Less: Net income attributable to noncontrolling interest
|
|
16
|
|
|
125
|
|
|
9
|
|
|||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
$
|
377,031
|
|
|
$
|
263,144
|
|
|
$
|
222,045
|
|
|
|
|
|
|
|
|
||||||
Earnings per Share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.34
|
|
|
$
|
3.00
|
|
|
$
|
2.47
|
|
Diluted
|
|
$
|
4.26
|
|
|
$
|
2.94
|
|
|
$
|
2.44
|
|
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
86,864
|
|
|
87,769
|
|
|
89,732
|
|
|||
Diluted
|
|
88,470
|
|
|
89,567
|
|
|
90,884
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
377,047
|
|
|
$
|
263,269
|
|
|
$
|
222,054
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
(21,911
|
)
|
|
25,107
|
|
|
(5,874
|
)
|
|||
Unrealized gain (loss) on net investment hedge
|
|
3,917
|
|
|
(8,347
|
)
|
|
2,142
|
|
|||
Unrealized gain (loss) on investments, net of tax expense (benefit) of ($40) in 2018, $0 in 2017 and $113 in 2016
|
|
(135
|
)
|
|
(42
|
)
|
|
245
|
|
|||
Unrealized gain (loss) on derivative instruments:
|
|
|
|
|
|
|
||||||
Unrealized gain (loss), net of tax expense (benefit) of $2,852 in 2018, ($5,304) in 2017 and $2,174 in 2016
|
|
12,019
|
|
|
(10,332
|
)
|
|
4,950
|
|
|||
Less: reclassification adjustment for (gains) losses included in net income, net of tax (expense) benefit of $187 in 2018, $224 in 2017 and ($949) in 2016
|
|
789
|
|
|
197
|
|
|
(2,251
|
)
|
|||
Unrealized gain (loss) on derivative instruments
|
|
12,808
|
|
|
(10,135
|
)
|
|
2,699
|
|
|||
Other comprehensive income gain (loss), net of tax
|
|
(5,321
|
)
|
|
6,583
|
|
|
(788
|
)
|
|||
Comprehensive income
|
|
371,726
|
|
|
269,852
|
|
|
221,266
|
|
|||
Less: comprehensive income attributable to noncontrolling interest
|
|
16
|
|
|
125
|
|
|
9
|
|
|||
Comprehensive income attributable to IDEXX Laboratories, Inc.
|
|
$
|
371,710
|
|
|
$
|
269,727
|
|
|
$
|
221,257
|
|
|
|
|
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Number of Shares
|
|
$0.10 Par Value
|
|
Additional Paid-in Capital
|
|
Deferred Stock Units
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Treasury Stock
|
|
Noncontrolling Interest
|
|
Total Stockholders’ Equity (Deficit)
|
|||||||||||||||||
Balance January 1, 2016
|
102,237
|
|
|
$
|
10,258
|
|
|
$
|
940,534
|
|
|
$
|
5,409
|
|
|
$
|
318,356
|
|
|
$
|
(42,265
|
)
|
|
$
|
(1,316,417
|
)
|
|
$
|
130
|
|
|
$
|
(83,995
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222,045
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
222,054
|
|
||||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(788
|
)
|
|
—
|
|
|
—
|
|
|
(788
|
)
|
||||||||
Repurchases of common stock, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(317,026
|
)
|
|
—
|
|
|
(317,026
|
)
|
||||||||
Common stock issued under stock plans, including excess tax benefit
|
1,104
|
|
|
76
|
|
|
51,904
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,980
|
|
||||||||
Deferred stock units activity
|
—
|
|
|
—
|
|
|
(343
|
)
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(329
|
)
|
||||||||
Share-based compensation cost
|
—
|
|
|
—
|
|
|
19,800
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,891
|
|
||||||||
Balance December 31, 2016
|
103,341
|
|
|
$
|
10,334
|
|
|
$
|
1,011,895
|
|
|
$
|
5,514
|
|
|
$
|
540,401
|
|
|
$
|
(43,053
|
)
|
|
$
|
(1,633,443
|
)
|
|
$
|
139
|
|
|
$
|
(108,213
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
263,144
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
263,269
|
|
||||||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,583
|
|
|
—
|
|
|
—
|
|
|
6,583
|
|
||||||||
Repurchases of common stock, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(278,085
|
)
|
|
—
|
|
|
(278,085
|
)
|
||||||||
Common stock issued under stock plans
|
934
|
|
|
94
|
|
|
39,005
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,099
|
|
||||||||
Deferred stock units activity
|
—
|
|
|
—
|
|
|
(350
|
)
|
|
338
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||||||
Share-based compensation cost
|
—
|
|
|
—
|
|
|
23,381
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,517
|
|
||||||||
Balance December 31, 2017
|
104,275
|
|
|
$
|
10,428
|
|
|
$
|
1,073,931
|
|
|
$
|
5,988
|
|
|
$
|
803,545
|
|
|
$
|
(36,470
|
)
|
|
$
|
(1,911,528
|
)
|
|
$
|
264
|
|
|
$
|
(53,842
|
)
|
Cumulative effect of accounting changes (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,648
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,648
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377,031
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
377,047
|
|
||||||||
Other comprehensive loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,321
|
)
|
|
—
|
|
|
—
|
|
|
(5,321
|
)
|
||||||||
Repurchases of common stock, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(377,371
|
)
|
|
—
|
|
|
(377,371
|
)
|
||||||||
Common stock issued under stock plans
|
812
|
|
|
81
|
|
|
39,756
|
|
|
(2,092
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,745
|
|
||||||||
Deferred stock units activity
|
—
|
|
|
—
|
|
|
(385
|
)
|
|
385
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation cost
|
—
|
|
|
—
|
|
|
24,914
|
|
|
243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,157
|
|
||||||||
Balance December 31, 2018
|
105,087
|
|
|
$
|
10,509
|
|
|
$
|
1,138,216
|
|
|
$
|
4,524
|
|
|
$
|
1,167,928
|
|
|
$
|
(41,791
|
)
|
|
$
|
(2,288,899
|
)
|
|
$
|
280
|
|
|
$
|
(9,233
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
377,047
|
|
|
$
|
263,269
|
|
|
$
|
222,054
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
83,178
|
|
|
83,140
|
|
|
78,218
|
|
|||
Amortization on marketable securities, net
|
|
(5
|
)
|
|
38
|
|
|
843
|
|
|||
Impairment charge
|
|
2,629
|
|
|
—
|
|
|
2,228
|
|
|||
Provision for uncollectible accounts
|
|
1,609
|
|
|
1,881
|
|
|
1,170
|
|
|||
Benefit of (provision for) deferred income taxes
|
|
1,209
|
|
|
(7,918
|
)
|
|
20,881
|
|
|||
Share-based compensation expense
|
|
25,157
|
|
|
23,517
|
|
|
19,891
|
|
|||
Other
|
|
900
|
|
|
969
|
|
|
986
|
|
|||
Tax benefit from share-based compensation arrangements
|
|
—
|
|
|
—
|
|
|
(14,702
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(18,401
|
)
|
|
(24,918
|
)
|
|
(22,554
|
)
|
|||
Inventories
|
|
(25,623
|
)
|
|
(19,062
|
)
|
|
7,648
|
|
|||
Accounts payable
|
|
(166
|
)
|
|
1,391
|
|
|
2,117
|
|
|||
Deferred revenue
|
|
(7,719
|
)
|
|
3,551
|
|
|
7,672
|
|
|||
Other assets and liabilities
|
|
(39,731
|
)
|
|
47,418
|
|
|
12,491
|
|
|||
Net cash provided by operating activities
|
|
400,084
|
|
|
373,276
|
|
|
338,943
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
|
(115,751
|
)
|
|
(74,384
|
)
|
|
(64,787
|
)
|
|||
Purchases of marketable securities
|
|
(87
|
)
|
|
(334,164
|
)
|
|
(227,894
|
)
|
|||
Proceeds from the sale and maturities of marketable securities
|
|
284,125
|
|
|
286,759
|
|
|
203,859
|
|
|||
Acquisitions of intangible assets and equity investment
|
|
(7,185
|
)
|
|
(2,320
|
)
|
|
—
|
|
|||
Acquisitions of businesses, net of cash acquired
|
|
(22,500
|
)
|
|
(14,579
|
)
|
|
(1,964
|
)
|
|||
Net cash provided (used) by investing activities
|
|
138,602
|
|
|
(138,688
|
)
|
|
(90,786
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
||||||
(Repayment) borrowings on revolving credit facilities, net
|
|
(256,040
|
)
|
|
44,000
|
|
|
38,000
|
|
|||
Debt issue costs
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|||
Repurchases of common stock
|
|
(369,319
|
)
|
|
(282,565
|
)
|
|
(304,086
|
)
|
|||
Proceeds from exercises of stock options and employee stock purchase plans
|
|
38,201
|
|
|
38,622
|
|
|
38,344
|
|
|||
Payment of acquisition-related contingent consideration
|
|
(1,266
|
)
|
|
—
|
|
|
(4,728
|
)
|
|||
Shares withheld for statutory tax withholding on restricted stock (Note 2)
|
|
(9,375
|
)
|
|
(8,073
|
)
|
|
(4,372
|
)
|
|||
Tax benefit from share-based compensation arrangements
|
|
—
|
|
|
—
|
|
|
14,702
|
|
|||
Net cash used by financing activities
|
|
(597,799
|
)
|
|
(208,016
|
)
|
|
(222,196
|
)
|
|||
Net effect of changes in exchange rates on cash
|
|
(4,768
|
)
|
|
6,202
|
|
|
(54
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
(63,881
|
)
|
|
32,774
|
|
|
25,907
|
|
|||
Cash and cash equivalents at beginning of period
|
|
187,675
|
|
|
154,901
|
|
|
128,994
|
|
|||
Cash and cash equivalents at end of period
|
|
$
|
123,794
|
|
|
$
|
187,675
|
|
|
$
|
154,901
|
|
|
|
|
|
|
|
|
|
|
|
|||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
|
Consolidated Balance Sheet
|
||||||||||
|
|
|
|
|
|
||||||
|
Previous U.S. GAAP
December 31, 2017 (Reported) |
|
New U.S. GAAP
January 1, 2018
|
|
Attributed to the
New Revenue Standard |
||||||
|
|
|
|
|
|
|
|||||
ASSETS
|
|
|
|
|
|
|
|||||
Cash, cash equivalents and marketable securities
|
$
|
471,930
|
|
|
$
|
471,930
|
|
|
$
|
—
|
|
Accounts receivable
|
234,597
|
|
|
237,281
|
|
|
2,684
|
|
|||
Inventories
|
164,318
|
|
|
163,184
|
|
|
(1,134
|
)
|
|||
Property and equipment, net
|
379,096
|
|
|
379,096
|
|
|
—
|
|
|||
Goodwill and intangible assets, net
|
243,719
|
|
|
243,719
|
|
|
—
|
|
|||
Other assets
|
219,756
|
|
|
246,481
|
|
|
26,725
|
|
|||
TOTAL ASSETS
|
$
|
1,713,416
|
|
|
$
|
1,741,691
|
|
|
$
|
28,275
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
66,968
|
|
|
$
|
66,968
|
|
|
$
|
—
|
|
Accrued liabilities
|
253,418
|
|
|
254,381
|
|
|
963
|
|
|||
Deferred income tax liabilities
|
25,353
|
|
|
25,087
|
|
|
(266
|
)
|
|||
Line of credit and long-term debt
|
1,261,075
|
|
|
1,261,075
|
|
|
—
|
|
|||
Deferred revenue
|
64,726
|
|
|
110,158
|
|
|
45,432
|
|
|||
Other long-term liabilities
|
95,718
|
|
|
82,840
|
|
|
(12,878
|
)
|
|||
Total liabilities
|
1,767,258
|
|
|
1,800,509
|
|
|
33,251
|
|
|||
|
|
|
|
|
|
||||||
Stockholders’ Deficit:
|
|
|
|
|
|
||||||
Retained earnings
|
803,545
|
|
|
798,569
|
|
|
(4,976
|
)
|
|||
All other stockholders' deficit and noncontrolling interest
|
(857,387
|
)
|
|
(857,387
|
)
|
|
—
|
|
|||
Total stockholders’ deficit
|
(53,842
|
)
|
|
(58,818
|
)
|
|
(4,976
|
)
|
|||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
1,713,416
|
|
|
$
|
1,741,691
|
|
|
$
|
28,275
|
|
|
Consolidated Balance Sheet
|
||||||||||
|
As of December 31, 2018
|
||||||||||
|
|
|
|
|
|
||||||
|
Previous U.S. GAAP
|
|
New U.S. GAAP
(As Reported) |
|
Attributed to the
New Revenue Standard |
||||||
|
|
|
|
|
|
|
|||||
ASSETS
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
123,794
|
|
|
$
|
123,794
|
|
|
$
|
—
|
|
Accounts receivable
|
245,189
|
|
|
248,855
|
|
|
3,666
|
|
|||
Inventories
|
175,540
|
|
|
173,303
|
|
|
(2,237
|
)
|
|||
Property and equipment, net
|
437,270
|
|
|
437,270
|
|
|
—
|
|
|||
Goodwill and intangible assets, net
|
256,314
|
|
|
256,314
|
|
|
—
|
|
|||
Other assets
|
253,339
|
|
|
297,813
|
|
|
44,474
|
|
|||
TOTAL ASSETS
|
$
|
1,491,446
|
|
|
$
|
1,537,349
|
|
|
$
|
45,903
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
69,534
|
|
|
$
|
69,534
|
|
|
$
|
—
|
|
Accrued liabilities
|
252,723
|
|
|
260,683
|
|
|
7,960
|
|
|||
Deferred income tax liabilities
|
34,424
|
|
|
29,267
|
|
|
(5,157
|
)
|
|||
Line of credit and long-term debt
|
1,000,285
|
|
|
1,000,285
|
|
|
—
|
|
|||
Deferred revenue
|
63,270
|
|
|
101,987
|
|
|
38,717
|
|
|||
Other long-term liabilities
|
93,643
|
|
|
84,826
|
|
|
(8,817
|
)
|
|||
Total liabilities
|
1,513,879
|
|
|
1,546,582
|
|
|
32,703
|
|
|||
|
|
|
|
|
|
||||||
Stockholders’ Deficit:
|
|
|
|
|
|
||||||
Retained earnings
|
1,154,778
|
|
|
1,167,928
|
|
|
13,150
|
|
|||
Accumulated other comprehensive (loss) income
|
(41,841
|
)
|
|
(41,791
|
)
|
|
50
|
|
|||
All other stockholders' deficit and noncontrolling interest
|
(1,135,370
|
)
|
|
(1,135,370
|
)
|
|
—
|
|
|||
Total stockholders’ deficit
|
(22,433
|
)
|
|
(9,233
|
)
|
|
13,200
|
|
|||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
1,491,446
|
|
|
$
|
1,537,349
|
|
|
$
|
45,903
|
|
|
Consolidated Statement of Income
|
||||||||||
|
For the Year Ended December 31, 2018
|
||||||||||
|
|
|
|
|
|
||||||
|
Previous U.S. GAAP
|
|
New U.S. GAAP
(As Reported) |
|
Attributed to the
New Revenue Standard |
||||||
|
|
|
|
|
|
||||||
Total revenue
|
$
|
2,154,902
|
|
|
$
|
2,213,242
|
|
|
$
|
58,340
|
|
Total cost of revenue
|
936,302
|
|
|
971,700
|
|
|
35,398
|
|
|||
Gross profit
|
1,218,600
|
|
|
1,241,542
|
|
|
22,942
|
|
|||
|
|
|
|
|
|
||||||
Total operating expense
|
752,268
|
|
|
750,207
|
|
|
(2,061
|
)
|
|||
Income from operations
|
466,332
|
|
|
491,335
|
|
|
25,003
|
|
|||
Interest expense
|
(34,744
|
)
|
|
(34,744
|
)
|
|
—
|
|
|||
Interest income
|
2,198
|
|
|
1,151
|
|
|
(1,047
|
)
|
|||
Income before provision for income taxes
|
433,786
|
|
|
457,742
|
|
|
23,956
|
|
|||
Provision for income taxes
|
74,865
|
|
|
80,695
|
|
|
5,830
|
|
|||
Net income
|
$
|
358,921
|
|
|
$
|
377,047
|
|
|
$
|
18,126
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash Flows
|
||||||||||
|
For the Year Ended December 31, 2018
|
||||||||||
|
|
|
|
|
|
||||||
|
Previous U.S. GAAP
|
|
New U.S. GAAP
(As Reported) |
|
Attributed to the
New Revenue Standard |
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|||||
Net income
|
$
|
358,921
|
|
|
$
|
377,047
|
|
|
$
|
18,126
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Benefit of deferred income taxes
|
3,482
|
|
|
1,209
|
|
|
(2,273
|
)
|
|||
All other adjustments to reconcile net income to net cash provided by operating activities
|
113,468
|
|
|
113,468
|
|
|
—
|
|
|||
Changes in assets and liabilities, net
|
(75,787
|
)
|
|
(91,640
|
)
|
|
(15,853
|
)
|
|||
Net cash provided by operating activities
|
$
|
400,084
|
|
|
$
|
400,084
|
|
|
$
|
—
|
|
Description of Change:
|
|
Impact of Change:
|
|
Adoption Method:
|
Tax benefits related to share-based payments at settlement are recorded through the income statement instead of equity
|
|
Decreases in income tax expense by approximately $21.5 and $27.7 million for the years ended December 31, 2018 and 2017, respectively
|
|
Prospective (required)
|
Tax benefits related to share-based payments at settlement are classified as operating cash flows instead of financing cash flows
|
|
Increase in cash flow from operating activities and decrease in cash flow from financing activities by approximately $21.5 million and $27.7 million for the years ended December 31, 2018 and 2017, respectively
|
|
Prospective (elected)
|
Cash payments to tax authorities for shares withheld to meet employee tax withholding requirements on restricted stock units are classified as financing cash flow instead of operating cash flow
|
|
Increases in cash flow from operating activities and decreases in cash flow from financing activities for the years ended December 31, 2018, 2017, and 2016, by approximately $9.4, $8.1 million, and $4.4 million, respectively
|
|
Retrospective (required)
|
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
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
CAG segment revenue:
|
|
|
|
|
|
|
|
|
|
|||
CAG Diagnostics recurring revenue:
|
|
$
|
1,654,530
|
|
|
$
|
1,451,701
|
|
|
$
|
1,281,262
|
|
IDEXX VetLab consumables
|
|
617,237
|
|
|
518,774
|
|
|
451,456
|
|
|||
Rapid assay products
|
|
217,541
|
|
|
205,309
|
|
|
189,122
|
|
|||
Reference laboratory diagnostic and consulting services
|
|
746,794
|
|
|
660,142
|
|
|
581,067
|
|
|||
CAG Diagnostics services and accessories
|
|
72,958
|
|
|
67,476
|
|
|
59,617
|
|
|||
CAG Diagnostics capital - instruments
|
|
134,264
|
|
|
119,963
|
|
|
121,191
|
|
|||
Veterinary software, services and diagnostic imaging systems
|
|
146,634
|
|
|
131,713
|
|
|
120,236
|
|
|||
CAG segment revenue
|
|
1,935,428
|
|
|
1,703,377
|
|
|
1,522,689
|
|
|||
|
|
|
|
|
|
|
||||||
Water segment revenue
|
|
125,198
|
|
|
114,395
|
|
|
103,579
|
|
|||
LPD segment revenue
|
|
130,581
|
|
|
128,481
|
|
|
126,491
|
|
|||
Other segment revenue
|
|
22,035
|
|
|
22,805
|
|
|
22,664
|
|
|||
|
|
|
|
|
|
|
||||||
Total revenue
|
|
$
|
2,213,242
|
|
|
$
|
1,969,058
|
|
|
$
|
1,775,423
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Americas
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
1,357,909
|
|
|
$
|
1,203,547
|
|
|
$
|
1,089,595
|
|
Canada
|
|
94,206
|
|
|
83,818
|
|
|
74,923
|
|
|||
Latin America
|
|
50,969
|
|
|
46,893
|
|
|
38,872
|
|
|||
|
|
1,503,084
|
|
|
1,334,258
|
|
|
1,203,390
|
|
|||
|
|
|
|
|
|
|
||||||
Europe, the Middle East and Africa
|
|
|
|
|
|
|
||||||
Germany
|
|
100,459
|
|
|
88,328
|
|
|
80,156
|
|
|||
United Kingdom
|
|
87,807
|
|
|
80,149
|
|
|
77,671
|
|
|||
France
|
|
60,319
|
|
|
55,993
|
|
|
51,204
|
|
|||
Italy
|
|
36,956
|
|
|
31,889
|
|
|
28,907
|
|
|||
Spain
|
|
33,687
|
|
|
28,866
|
|
|
24,268
|
|
|||
Switzerland
|
|
19,875
|
|
|
17,913
|
|
|
16,361
|
|
|||
Netherlands
|
|
18,090
|
|
|
15,877
|
|
|
14,049
|
|
|||
Other
|
|
114,877
|
|
|
100,409
|
|
|
83,147
|
|
|||
|
|
472,070
|
|
|
419,424
|
|
|
375,763
|
|
|||
Asia Pacific Region
|
|
|
|
|
|
|
||||||
Australia
|
|
63,386
|
|
|
56,994
|
|
|
52,871
|
|
|||
China
|
|
57,621
|
|
|
55,810
|
|
|
48,257
|
|
|||
Japan
|
|
60,213
|
|
|
53,344
|
|
|
51,544
|
|
|||
Other
|
|
56,868
|
|
|
49,228
|
|
|
43,598
|
|
|||
|
|
238,088
|
|
|
215,376
|
|
|
196,270
|
|
|||
Total
|
|
$
|
2,213,242
|
|
|
$
|
1,969,058
|
|
|
$
|
1,775,423
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
||||||
Share-based compensation expense included in cost of revenue
|
|
$
|
2,816
|
|
|
$
|
2,675
|
|
|
$
|
2,305
|
|
Share-based compensation expense included in operating expenses
|
|
22,341
|
|
|
20,842
|
|
|
17,586
|
|
|||
Total share-based compensation expense included in consolidated statements of income
|
|
25,157
|
|
|
23,517
|
|
|
19,891
|
|
|||
Income tax benefit resulting from share-based compensation expense
|
|
(4,190
|
)
|
|
(6,810
|
)
|
|
(6,143
|
)
|
|||
Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards
|
|
20,967
|
|
|
16,707
|
|
|
13,748
|
|
|||
Income tax benefit resulting from settlement of share-based awards under ASU 2016-09
|
|
(21,496
|
)
|
|
(27,743
|
)
|
|
—
|
|
|||
Net (benefit) expense related to share-based compensation arrangements included in consolidated statements of income
|
|
$
|
(529
|
)
|
|
$
|
(11,036
|
)
|
|
$
|
13,748
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Share price at grant
|
|
$
|
179.56
|
|
|
$
|
142.89
|
|
|
$
|
69.07
|
|
Expected stock price volatility
|
|
24
|
%
|
|
26
|
%
|
|
25
|
%
|
|||
Expected term, in years
|
|
5.8
|
|
|
5.8
|
|
|
5.7
|
|
|||
Risk-free interest rate
|
|
2.7
|
%
|
|
2.0
|
%
|
|
1.2
|
%
|
|||
Weighted average fair value of options granted
|
|
$
|
52.99
|
|
|
$
|
40.83
|
|
|
$
|
17.87
|
|
|
|
Number of Options (000)
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value ($000)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||
Outstanding as of December 31, 2017
|
|
2,727
|
|
|
$
|
72.72
|
|
|
|
|
|
||
Granted
|
|
333
|
|
|
$
|
179.56
|
|
|
|
|
|
||
Exercised
|
|
(561
|
)
|
|
$
|
51.55
|
|
|
|
|
|
||
Forfeited
|
|
(50
|
)
|
|
$
|
95.19
|
|
|
|
|
|
||
Outstanding as of December 31, 2018
|
|
2,449
|
|
|
$
|
91.64
|
|
|
6.2
|
|
$
|
231,414
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully vested as of December 31, 2018
|
|
1,239
|
|
|
$
|
67.69
|
|
|
4.7
|
|
$
|
146,555
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully vested and expected to vest as of December 31, 2018
|
|
2,402
|
|
|
$
|
91.28
|
|
|
6.1
|
|
$
|
227,861
|
|
|
|
Number of Units (000)
|
|
Weighted Average Grant-Date Fair Value
|
|||
|
|
|
|
|
|
|
|
Nonvested as of December 31, 2017
|
|
383
|
|
|
$
|
85.74
|
|
Granted
|
|
79
|
|
|
$
|
179.22
|
|
Vested
|
|
(136
|
)
|
|
$
|
74.69
|
|
Forfeited
|
|
(20
|
)
|
|
$
|
100.02
|
|
Nonvested as of December 31, 2018
|
|
306
|
|
|
$
|
113.87
|
|
|
|
|
|
|
|||
Expected to vest as of December 31, 2018
|
|
289
|
|
|
$
|
113.44
|
|
As of December 31, 2017
|
|
Amortized Cost
|
|
|
Gross Unrealized Gains
|
|
|
Gross Unrealized Losses
|
|
|
Fair Value
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Corporate bonds
|
|
$
|
140,969
|
|
|
$
|
96
|
|
|
$
|
(179
|
)
|
|
$
|
140,886
|
|
Certificates of deposit
|
|
58,510
|
|
|
—
|
|
|
—
|
|
|
58,510
|
|
||||
Commercial paper
|
|
29,171
|
|
|
—
|
|
|
—
|
|
|
29,171
|
|
||||
Asset backed securities
|
|
22,206
|
|
|
4
|
|
|
(43
|
)
|
|
22,167
|
|
||||
U.S. government bonds
|
|
15,619
|
|
|
11
|
|
|
(19
|
)
|
|
15,611
|
|
||||
Agency bonds
|
|
10,990
|
|
|
9
|
|
|
(52
|
)
|
|
10,947
|
|
||||
Treasury bills
|
|
6,964
|
|
|
—
|
|
|
(1
|
)
|
|
6,963
|
|
||||
Total marketable securities
|
|
$
|
284,429
|
|
|
$
|
120
|
|
|
$
|
(294
|
)
|
|
$
|
284,255
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Raw materials
|
|
$
|
31,973
|
|
|
$
|
32,994
|
|
Work-in-process
|
|
17,009
|
|
|
17,786
|
|
||
Finished goods
|
|
124,321
|
|
|
113,538
|
|
||
Inventories (Note 2)
|
|
$
|
173,303
|
|
|
$
|
164,318
|
|
Asset Classification
|
|
Estimated Useful Life
|
|
|
|
Land improvements
|
|
15 to 20 years
|
Buildings and improvements
|
|
10 to 40 years
|
Leasehold improvements
|
|
Shorter of remaining lease term or useful life of improvements
|
Machinery and equipment
|
|
3 to 8 years
|
Office furniture and equipment
|
|
3 to 7 years
|
Computer hardware and software
|
|
3 to 7 years
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Land and improvements
|
|
$
|
8,701
|
|
|
$
|
7,323
|
|
Buildings and improvements
|
|
190,809
|
|
|
180,185
|
|
||
Leasehold improvements
|
|
66,917
|
|
|
52,227
|
|
||
Machinery and equipment
|
|
299,204
|
|
|
284,375
|
|
||
Office furniture and equipment
|
|
51,661
|
|
|
47,476
|
|
||
Computer hardware and software
|
|
218,150
|
|
|
206,580
|
|
||
Construction in progress
|
|
70,561
|
|
|
33,470
|
|
||
|
|
906,003
|
|
|
811,636
|
|
||
Less accumulated depreciation and amortization
|
|
468,733
|
|
|
432,540
|
|
||
Total property and equipment, net
|
|
$
|
437,270
|
|
|
$
|
379,096
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization expense
|
|
$
|
74,208
|
|
|
$
|
73,797
|
|
|
$
|
63,537
|
|
Capitalized computer software developed for internal use
|
|
$
|
17,115
|
|
|
$
|
16,131
|
|
|
$
|
15,590
|
|
Unpaid property and equipment, reflected in accounts payable and accrued liabilities
|
|
$
|
17,894
|
|
|
$
|
11,744
|
|
|
$
|
10,601
|
|
Rental and Reagent Rental Program instruments transferred from inventory to property and equipment (Note 3)
|
|
$
|
20,360
|
|
|
$
|
16,313
|
|
|
$
|
18,324
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Prepaid expenses
|
|
$
|
30,314
|
|
|
$
|
28,967
|
|
Taxes receivable
|
|
14,098
|
|
|
35,475
|
|
||
Customer acquisition costs (Notes 2 and 3)
|
|
34,515
|
|
|
23,520
|
|
||
Contract assets (Notes 2 and 3)
|
|
9,670
|
|
|
—
|
|
||
Deferred sales commissions (Notes 2 and 3)
|
|
4,464
|
|
|
—
|
|
||
Other assets (Notes 2 and 3)
|
|
15,159
|
|
|
13,178
|
|
||
Other current assets
|
|
$
|
108,220
|
|
|
$
|
101,140
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Investment in long-term product supply arrangements
|
|
$
|
10,894
|
|
|
$
|
9,949
|
|
Customer acquisition costs (Notes 2 and 3)
|
|
89,862
|
|
|
64,670
|
|
||
Contract assets (Notes 2 and 3)
|
|
31,269
|
|
|
—
|
|
||
Deferred sales commissions (Notes 2 and 3)
|
|
9,470
|
|
|
—
|
|
||
Deferred income taxes (Note 2)
|
|
8,481
|
|
|
7,698
|
|
||
Other assets (Notes 2 and 3)
|
|
39,617
|
|
|
36,299
|
|
||
Other long-term assets
|
|
$
|
189,593
|
|
|
$
|
118,616
|
|
Asset Classification
|
|
Estimated Useful Life
|
|
|
|
Product rights
(1)
|
|
5 to 15 years
|
Customer-related intangible assets
(2)
|
|
3 to 17 years
|
Noncompete agreements
|
|
3 to 5 years
|
(1)
|
Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties.
|
(2)
|
Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Product rights
(1)
|
|
$
|
27,060
|
|
|
$
|
19,153
|
|
|
$
|
7,907
|
|
|
$
|
32,558
|
|
|
$
|
25,251
|
|
|
$
|
7,307
|
|
Customer-related intangible assets
(2)
|
|
77,015
|
|
|
43,352
|
|
|
33,663
|
|
|
80,398
|
|
|
44,382
|
|
|
36,016
|
|
||||||
Noncompete agreements
|
|
856
|
|
|
601
|
|
|
255
|
|
|
1,271
|
|
|
748
|
|
|
523
|
|
||||||
|
|
$
|
104,931
|
|
|
$
|
63,106
|
|
|
$
|
41,825
|
|
|
$
|
114,227
|
|
|
$
|
70,381
|
|
|
$
|
43,846
|
|
(1)
|
Product rights comprise certain technologies, licenses and trade names acquired from third parties.
|
(2)
|
Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties.
|
|
Amortization Expense
|
||
|
|
|
|
2019
|
$
|
8,450
|
|
2020
|
7,087
|
|
|
2021
|
6,232
|
|
|
2022
|
5,063
|
|
|
2023
|
3,330
|
|
|
Thereafter
|
11,663
|
|
|
|
$
|
41,825
|
|
|
|
CAG
|
|
Water
|
|
LPD
|
|
Other
|
|
Consolidated Total
|
||||||||||
Balance as of December 31, 2015
|
|
$
|
145,191
|
|
|
$
|
13,038
|
|
|
$
|
14,174
|
|
|
$
|
6,531
|
|
|
$
|
178,934
|
|
Business combinations
|
|
1,720
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,720
|
|
|||||
Impact of changes in foreign currency exchange rates
|
|
(717
|
)
|
|
(2,148
|
)
|
|
439
|
|
|
—
|
|
|
(2,426
|
)
|
|||||
Balance as of December 31, 2016
|
|
$
|
146,194
|
|
|
$
|
10,890
|
|
|
$
|
14,613
|
|
|
$
|
6,531
|
|
|
$
|
178,228
|
|
Business combinations
|
|
13,541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,541
|
|
|||||
Impact of changes in foreign currency exchange rates
|
|
6,501
|
|
|
1,061
|
|
|
542
|
|
|
—
|
|
|
8,104
|
|
|||||
Balance as of December 31, 2017
|
|
$
|
166,236
|
|
|
$
|
11,951
|
|
|
$
|
15,155
|
|
|
$
|
6,531
|
|
|
$
|
199,873
|
|
Business combinations
|
|
20,282
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,282
|
|
|||||
Impact of changes in foreign currency exchange rates
|
|
(4,132
|
)
|
|
(730
|
)
|
|
(804
|
)
|
|
—
|
|
|
(5,666
|
)
|
|||||
Balance as of December 31, 2018
|
|
$
|
182,386
|
|
|
$
|
11,221
|
|
|
$
|
14,351
|
|
|
$
|
6,531
|
|
|
$
|
214,489
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Accrued expenses
|
|
$
|
65,212
|
|
|
$
|
64,430
|
|
Accrued employee compensation and related expenses
|
|
109,488
|
|
|
102,944
|
|
||
Accrued taxes
|
|
26,609
|
|
|
29,389
|
|
||
Accrued customer incentives and refund obligations (Notes 2 and 3)
|
|
59,374
|
|
|
56,655
|
|
||
Accrued liabilities
|
|
$
|
260,683
|
|
|
$
|
253,418
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
|
|
||
Accrued taxes
|
|
$
|
66,767
|
|
|
$
|
66,506
|
|
Accrued customer incentives (Note 2)
|
|
—
|
|
|
12,956
|
|
||
Other accrued long-term expenses
|
|
18,059
|
|
|
16,256
|
|
||
Other long-term liabilities
|
|
$
|
84,826
|
|
|
$
|
95,718
|
|
Years Ending December 31,
|
|
Amount
|
||
|
|
|
|
|
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
50,000
|
|
|
2022
|
|
75,000
|
|
|
2023
|
|
75,000
|
|
|
Thereafter
|
|
401,777
|
|
|
|
|
$
|
601,777
|
|
|
|
For the Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
|
|
|
|
|
|
|
|
|
U.S. federal statutory rate
|
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income tax, net of federal tax benefit
|
|
2.6
|
|
|
1.9
|
|
|
1.8
|
|
Taxation on international earnings
|
|
(0.8
|
)
|
|
(5.5
|
)
|
|
(4.8
|
)
|
Foreign derived intangible income
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
Share-based compensation from settlements under ASU 2016-09
|
|
(4.7
|
)
|
|
(7.3
|
)
|
|
—
|
|
Domestic manufacturing exclusions
|
|
—
|
|
|
(1.1
|
)
|
|
(1.0
|
)
|
Research and development credit
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
(0.8
|
)
|
Impact of the Tax Cuts and Jobs Act
|
|
0.5
|
|
|
9.4
|
|
|
—
|
|
State income tax carryforwards
|
|
(0.2
|
)
|
|
(1.4
|
)
|
|
—
|
|
Other, net
|
|
1.4
|
|
|
0.8
|
|
|
0.8
|
|
Effective tax rate
|
|
17.6
|
%
|
|
30.9
|
%
|
|
31.0
|
%
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
|
||
Accrued expenses
|
|
$
|
21,065
|
|
|
$
|
13,843
|
|
Accounts receivable reserves
|
|
2,363
|
|
|
2,624
|
|
||
Deferred revenue
|
|
7,637
|
|
|
10,618
|
|
||
Inventory basis differences
|
|
2,787
|
|
|
3,039
|
|
||
Property-based differences
|
|
1,652
|
|
|
1,324
|
|
||
Share-based compensation
|
|
9,267
|
|
|
9,035
|
|
||
Other
|
|
2,314
|
|
|
918
|
|
||
Net operating loss carryforwards
|
|
3,208
|
|
|
3,350
|
|
||
Tax credit carryforwards
|
|
10,226
|
|
|
8,096
|
|
||
Unrealized losses on foreign currency exchange contracts, interest rate swaps and investments
|
|
404
|
|
|
2,355
|
|
||
Total assets
|
|
60,923
|
|
|
55,202
|
|
||
Valuation allowance
|
|
(6,212
|
)
|
|
(6,211
|
)
|
||
Total assets, net of valuation allowance
|
|
54,711
|
|
|
48,991
|
|
||
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Deferred instrument costs
|
|
(27,210
|
)
|
|
(20,399
|
)
|
||
Property-based differences
|
|
(32,494
|
)
|
|
(31,859
|
)
|
||
Intangible asset basis differences
|
|
(13,454
|
)
|
|
(13,574
|
)
|
||
Other
|
|
(432
|
)
|
|
(656
|
)
|
||
Unrealized gains on foreign currency exchange contracts, interest rate swaps and investments
|
|
(1,907
|
)
|
|
(158
|
)
|
||
Total liabilities
|
|
(75,497
|
)
|
|
(66,646
|
)
|
||
Net deferred tax assets (liabilities)
|
|
$
|
(20,786
|
)
|
|
$
|
(17,655
|
)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
||||||
Total amounts of unrecognized tax benefits, beginning of period
|
|
$
|
21,417
|
|
|
$
|
18,463
|
|
|
$
|
7,204
|
|
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period
|
|
2,991
|
|
|
74
|
|
|
75
|
|
|||
Gross increases in unrecognized tax benefits as a result of tax positions taken in the current period
|
|
461
|
|
|
4,681
|
|
|
12,657
|
|
|||
Decreases in unrecognized tax benefits relating to settlements with taxing authorities
|
|
—
|
|
|
(713
|
)
|
|
(1,326
|
)
|
|||
Decreases in unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations
|
|
(622
|
)
|
|
(1,088
|
)
|
|
(147
|
)
|
|||
Total amounts of unrecognized tax benefits, end of period
|
|
$
|
24,247
|
|
|
$
|
21,417
|
|
|
$
|
18,463
|
|
|
|
For the Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
|
|
|
|
|
|
|
|
|
Shares outstanding for basic earnings per share:
|
|
86,864
|
|
|
87,769
|
|
|
89,732
|
|
|
|
|
|
|
|
|
|||
Shares outstanding for diluted earnings per share:
|
|
|
|
|
|
|
|||
Shares outstanding for basic earnings per share
|
|
86,864
|
|
|
87,769
|
|
|
89,732
|
|
Dilutive effect of share-based payment awards
|
|
1,606
|
|
|
1,798
|
|
|
1,152
|
|
|
|
88,470
|
|
|
89,567
|
|
|
90,884
|
|
|
|
For the Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
|
|
|
|
|
|
|
||
Weighted average number of shares underlying anti-dilutive options
|
|
287
|
|
|
327
|
|
|
88
|
|
Years Ending December 31,
|
|
Amount
|
||
|
|
|
|
|
2019
|
|
$
|
19,351
|
|
2020
|
|
17,109
|
|
|
2021
|
|
14,528
|
|
|
2022
|
|
10,799
|
|
|
2023
|
|
8,518
|
|
|
Thereafter
|
|
36,514
|
|
|
|
|
$
|
106,819
|
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||
|
|
CAG
|
|
Water
|
|
LPD
|
|
Other
|
|
Unallocated Amounts
|
|
Consolidated Total
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
1,935,428
|
|
|
$
|
125,198
|
|
|
$
|
130,581
|
|
|
$
|
22,035
|
|
|
$
|
—
|
|
|
$
|
2,213,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
|
$
|
429,483
|
|
|
$
|
56,607
|
|
|
$
|
19,412
|
|
|
$
|
3,729
|
|
|
$
|
(17,896
|
)
|
|
$
|
491,335
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
(33,593
|
)
|
|||||||||||
Income before provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
457,742
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
80,695
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
377,047
|
|
|||||||||||
Less: Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
$
|
377,031
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
72,789
|
|
|
$
|
2,592
|
|
|
$
|
4,094
|
|
|
$
|
3,703
|
|
|
$
|
—
|
|
|
$
|
83,178
|
|
Expenditures for long-lived assets
(1)
|
|
$
|
103,300
|
|
|
$
|
3,172
|
|
|
$
|
4,787
|
|
|
$
|
4,492
|
|
|
$
|
—
|
|
|
$
|
115,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue
|
|
$
|
1,703,377
|
|
|
$
|
114,395
|
|
|
$
|
128,481
|
|
|
$
|
22,805
|
|
|
$
|
—
|
|
|
$
|
1,969,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
|
$
|
363,557
|
|
|
$
|
50,616
|
|
|
$
|
16,464
|
|
|
$
|
4,837
|
|
|
$
|
(22,446
|
)
|
|
$
|
413,028
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
(31,971
|
)
|
|||||||||||
Income before provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
381,057
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
117,788
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
263,269
|
|
|||||||||||
Less: Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
$
|
263,144
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
71,835
|
|
|
$
|
2,856
|
|
|
$
|
5,052
|
|
|
$
|
3,397
|
|
|
$
|
—
|
|
|
$
|
83,140
|
|
Expenditures for long-lived assets
(1)
|
|
$
|
64,759
|
|
|
$
|
2,573
|
|
|
$
|
3,021
|
|
|
$
|
4,031
|
|
|
$
|
—
|
|
|
$
|
74,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue
|
|
$
|
1,522,689
|
|
|
$
|
103,579
|
|
|
$
|
126,491
|
|
|
$
|
22,664
|
|
|
$
|
—
|
|
|
$
|
1,775,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
|
$
|
301,342
|
|
|
$
|
45,702
|
|
|
$
|
18,914
|
|
|
$
|
884
|
|
|
$
|
(16,603
|
)
|
|
$
|
350,239
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
(28,393
|
)
|
|||||||||||
Income before provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
321,846
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
|
99,792
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
222,054
|
|
|||||||||||
Less: Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
$
|
222,045
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
$
|
64,878
|
|
|
$
|
3,098
|
|
|
$
|
5,543
|
|
|
$
|
4,699
|
|
|
$
|
—
|
|
|
$
|
78,218
|
|
Expenditures for long-lived assets
(1)
|
|
$
|
56,329
|
|
|
$
|
2,102
|
|
|
$
|
4,824
|
|
|
$
|
1,532
|
|
|
$
|
—
|
|
|
$
|
64,787
|
|
(1)
|
Expenditures for long-lived assets exclude expenditures for intangible assets. See "Note
4
.
Acquisitions and Investments
" for information regarding acquisitions of intangible assets during the years ended
December 31, 2018
,
2017
and
2016
.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Americas
|
|
|
|
|
||||
United States
|
|
$
|
348,240
|
|
|
$
|
310,696
|
|
Brazil
|
|
16,735
|
|
|
17,030
|
|
||
Canada
|
|
1,859
|
|
|
2,238
|
|
||
|
|
366,834
|
|
|
329,964
|
|
||
Europe, the Middle East and Africa
|
|
|
|
|
||||
Germany
|
|
25,036
|
|
|
7,522
|
|
||
United Kingdom
|
|
11,517
|
|
|
11,528
|
|
||
Netherlands
|
|
10,273
|
|
|
8,225
|
|
||
France
|
|
2,130
|
|
|
2,305
|
|
||
Switzerland
|
|
2,742
|
|
|
1,755
|
|
||
Other
|
|
3,763
|
|
|
3,838
|
|
||
|
|
55,461
|
|
|
35,173
|
|
||
Asia Pacific Region
|
|
|
|
|
||||
Japan
|
|
5,296
|
|
|
4,065
|
|
||
Australia
|
|
4,257
|
|
|
4,426
|
|
||
Other
|
|
5,422
|
|
|
5,468
|
|
||
|
|
14,975
|
|
|
13,959
|
|
||
Total
|
|
$
|
437,270
|
|
|
$
|
379,096
|
|
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.
|
As of December 31, 2018
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Balance at December 31, 2018
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds
(1)
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
250
|
|
Equity mutual funds
(2)
|
|
$
|
1,673
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,673
|
|
Cross currency swaps
(3)
|
|
$
|
—
|
|
|
$
|
1,789
|
|
|
$
|
—
|
|
|
$
|
1,789
|
|
Foreign currency exchange contracts
(3)
|
|
$
|
—
|
|
|
$
|
8,163
|
|
|
$
|
—
|
|
|
$
|
8,163
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts
(3)
|
|
$
|
—
|
|
|
$
|
603
|
|
|
$
|
—
|
|
|
$
|
603
|
|
Deferred compensation
(4)
|
|
$
|
1,673
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,673
|
|
As of December 31, 2017
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Balance at December 31, 2017
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds
(1)
|
|
$
|
32,962
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,962
|
|
Certificates of deposit
(1)
|
|
$
|
—
|
|
|
$
|
1,250
|
|
|
$
|
—
|
|
|
$
|
1,250
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
$
|
—
|
|
|
$
|
140,886
|
|
|
$
|
—
|
|
|
$
|
140,886
|
|
Certificates of deposit
|
|
—
|
|
|
58,510
|
|
|
—
|
|
|
58,510
|
|
||||
Commercial paper
|
|
—
|
|
|
29,171
|
|
|
—
|
|
|
29,171
|
|
||||
Asset backed securities
|
|
—
|
|
|
22,167
|
|
|
—
|
|
|
22,167
|
|
||||
U.S. government bonds
|
|
—
|
|
|
15,611
|
|
|
—
|
|
|
15,611
|
|
||||
Agency bonds
|
|
—
|
|
|
10,947
|
|
|
—
|
|
|
10,947
|
|
||||
Treasury bills
|
|
—
|
|
|
6,963
|
|
|
—
|
|
|
6,963
|
|
||||
Total marketable securities
|
|
$
|
—
|
|
|
$
|
284,255
|
|
|
$
|
—
|
|
|
$
|
284,255
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity mutual funds
(2)
|
|
$
|
2,162
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,162
|
|
Foreign currency exchange contracts
(3)
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
477
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts
(3)
|
|
$
|
—
|
|
|
$
|
6,468
|
|
|
$
|
—
|
|
|
$
|
6,468
|
|
Deferred compensation
(4)
|
|
$
|
2,162
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,162
|
|
(1)
|
Money market funds and certificates of deposit with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of
December 31, 2018
, and
December 31, 2017
, consisted of demand deposits. Certificates of deposit with an original maturity of over ninety days are included within marketable securities.
|
(2)
|
Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. See number (4) below for a discussion of the related deferred compensation liability.
|
(3)
|
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.
|
(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 number (2) above.
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Financial statement line items in which effects of cash flow hedges are recorded
|
|
Cost of revenue
|
|
$
|
971,700
|
|
|
$
|
871,676
|
|
|
$
|
799,987
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
|
|
|
|
$
|
(976
|
)
|
|
$
|
27
|
|
|
$
|
3,200
|
|
|
|
|
|
Hedging Assets
|
||||||
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
|
|
||||
Derivatives and non-derivatives designated as hedging instruments
|
|
Balance Sheet Classification
|
|
|
|
|
||||
Foreign currency exchange contracts
|
|
Other current assets
|
|
$
|
8,163
|
|
|
$
|
477
|
|
Cross currency swaps
|
|
Other long-term assets
|
|
1,789
|
|
|
—
|
|
||
Total derivative instruments presented as hedge instruments on the balance sheet
|
|
|
|
9,952
|
|
|
477
|
|
||
Gross amounts subject to master netting arrangements not offset on the balance sheet
|
|
|
|
603
|
|
|
477
|
|
||
Net amount
|
|
|
|
$
|
9,349
|
|
|
$
|
—
|
|
|
|
|
|
Hedging Liabilities
|
||||||
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
|
|
||||
Derivatives and non-derivatives designated as hedging instruments
|
|
Balance Sheet Classification
|
|
|
|
|
||||
Foreign currency exchange contracts
|
|
Accrued liabilities
|
|
$
|
603
|
|
|
$
|
6,468
|
|
Total derivative instruments presented as cash flow hedges on the balance sheet
|
|
|
|
603
|
|
|
6,468
|
|
||
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet
(1)
|
|
Long-term debt
|
|
101,777
|
|
|
106,567
|
|
||
Total hedging instruments presented on the balance sheet
|
|
102,380
|
|
|
113,035
|
|
||||
Gross amounts subject to master netting arrangements not offset on the balance sheet
|
|
|
|
603
|
|
|
477
|
|
||
Net amount
|
|
|
|
$
|
101,777
|
|
|
$
|
112,558
|
|
(1)
|
Amounts represent reported carrying amounts of our foreign currency denominated debt. See "Note
17
.
Fair Value Measurements
" for information regarding the fair value of our long-term debt.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Shares repurchased in the open market
|
|
1,773
|
|
|
1,749
|
|
|
3,071
|
|
|||
Shares acquired through employee surrender
for statutory tax withholding
|
|
52
|
|
|
57
|
|
|
60
|
|
|||
Total shares repurchased
|
|
1,825
|
|
|
1,806
|
|
|
3,131
|
|
|||
|
|
|
|
|
|
|
||||||
Cost of share repurchased in the open market
|
|
$
|
368,691
|
|
|
$
|
270,297
|
|
|
$
|
313,072
|
|
Cost of shares for employee surrenders
|
|
9,375
|
|
|
8,074
|
|
|
4,372
|
|
|||
Total cost of shares
|
|
$
|
378,066
|
|
|
$
|
278,371
|
|
|
$
|
317,444
|
|
|
|
|
|
|
|
|
||||||
Average cost per share - open market repurchases
|
|
$
|
207.92
|
|
|
$
|
154.51
|
|
|
$
|
101.96
|
|
Average cost per share - employee surrenders
|
|
$
|
182.18
|
|
|
$
|
142.55
|
|
|
$
|
73.04
|
|
Average cost per share - total
|
|
$
|
207.19
|
|
|
$
|
154.13
|
|
|
$
|
101.40
|
|
|
|
Unrealized Gain (Loss) on Investments, Net of Tax
|
|
Unrealized Gain (Loss) on Derivatives Instruments, Net of Tax
|
|
Unrealized Gain (Loss) on Net Investment Hedge, Net of Tax
|
|
Cumulative Translation Adjustment
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2016
|
|
$
|
20
|
|
|
$
|
4,916
|
|
|
$
|
4,036
|
|
|
$
|
(52,025
|
)
|
|
$
|
(43,053
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(42
|
)
|
|
(10,332
|
)
|
|
(8,347
|
)
|
|
25,107
|
|
|
6,386
|
|
|||||
Gains reclassified from accumulated other comprehensive income
|
|
—
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
197
|
|
|||||
Balance as of December 31, 2017
|
|
(22
|
)
|
|
(5,219
|
)
|
|
(4,311
|
)
|
|
(26,918
|
)
|
|
(36,470
|
)
|
|||||
Other comprehensive (loss) income before reclassifications
|
|
(135
|
)
|
|
12,019
|
|
|
3,917
|
|
|
(21,911
|
)
|
|
(6,110
|
)
|
|||||
Gains reclassified from accumulated other comprehensive income
|
|
—
|
|
|
789
|
|
|
—
|
|
|
—
|
|
|
789
|
|
|||||
Balance as of December 31, 2018
|
|
$
|
(157
|
)
|
|
$
|
7,589
|
|
|
$
|
(394
|
)
|
|
$
|
(48,829
|
)
|
|
$
|
(41,791
|
)
|
Details about Accumulated Other Comprehensive Income Components
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income for the Years Ended December 31,
|
||||||||||
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gains (losses) on derivative instruments included in net income:
|
|
|
|
|
|
|
|
|
||||||
Foreign currency exchange contracts
|
|
Cost of revenue
|
|
$
|
(976
|
)
|
|
$
|
27
|
|
|
$
|
3,621
|
|
Interest rate swaps
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
(421
|
)
|
|||
|
|
Total (losses) gains before tax
|
|
(976
|
)
|
|
27
|
|
|
3,200
|
|
|||
|
|
Tax (benefit) expense
|
|
(187
|
)
|
|
224
|
|
|
949
|
|
|||
|
|
(Losses) gains, net of tax
|
|
$
|
(789
|
)
|
|
$
|
(197
|
)
|
|
$
|
2,251
|
|
|
|
For the Three Months Ended
|
||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue
|
|
$
|
537,656
|
|
|
$
|
580,752
|
|
|
$
|
545,448
|
|
|
$
|
549,386
|
|
Gross profit
|
|
303,099
|
|
|
332,439
|
|
|
305,643
|
|
|
300,361
|
|
||||
Operating income
|
|
113,044
|
|
|
145,594
|
|
|
117,350
|
|
|
115,347
|
|
||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
89,451
|
|
|
108,691
|
|
|
93,251
|
|
|
85,638
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.02
|
|
|
$
|
1.25
|
|
|
$
|
1.07
|
|
|
$
|
0.99
|
|
Diluted
|
|
$
|
1.01
|
|
|
$
|
1.23
|
|
|
$
|
1.05
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
||||||||
Revenue
|
|
$
|
462,021
|
|
|
$
|
508,940
|
|
|
$
|
491,976
|
|
|
$
|
506,121
|
|
Gross profit
|
|
258,191
|
|
|
292,715
|
|
|
274,002
|
|
|
272,474
|
|
||||
Operating income
|
|
92,243
|
|
|
122,564
|
|
|
100,413
|
|
|
97,808
|
|
||||
Net income attributable to IDEXX Laboratories, Inc. stockholders
|
|
69,019
|
|
|
85,357
|
|
|
70,511
|
|
|
38,257
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.78
|
|
|
$
|
0.97
|
|
|
$
|
0.81
|
|
|
$
|
0.44
|
|
Diluted
|
|
$
|
0.77
|
|
|
$
|
0.95
|
|
|
$
|
0.79
|
|
|
$
|
0.43
|
|
(1)
|
Amounts presented may not recalculate to full-year totals due to rounding.
|
|
|
Balance at Beginning of Year
|
|
Charges to Costs and Expenses
|
|
Write-Offs/Cash Payments
|
|
Foreign Currency Translation
|
|
Balance at End of Year
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reserves for doubtful accounts receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2016
|
|
$
|
5,128
|
|
|
$
|
822
|
|
|
$
|
(531
|
)
|
|
$
|
(896
|
)
|
|
$
|
4,523
|
|
December 31, 2017
|
|
4,523
|
|
|
591
|
|
|
(1,660
|
)
|
|
1,122
|
|
|
4,576
|
|
|||||
December 31, 2018
|
|
4,576
|
|
|
390
|
|
|
(969
|
)
|
|
705
|
|
|
4,702
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2016
|
|
$
|
4,446
|
|
|
$
|
885
|
|
|
$
|
(816
|
)
|
|
$
|
376
|
|
|
$
|
4,891
|
|
December 31, 2017
|
|
4,891
|
|
|
1,789
|
|
|
(679
|
)
|
|
210
|
|
|
6,211
|
|
|||||
December 31, 2018
|
|
6,211
|
|
|
402
|
|
|
—
|
|
|
(401
|
)
|
|
6,212
|
|
|
|
|
|
101
|
eXtensible Business Reporting Language (XBRL) documents submitted electronically: 101.INS (XBRL Instance Document), 101.SCH (XBRL Taxonomy Extension Schema Document), 101.CAL (XBRL Calculation Linkbase Document), 101.LAB (XBRL Taxonomy Label Linkbase Document), 101.DEF (XBRL Taxonomy Definition Linkbase Document) and 101.PRE (XBRL Taxonomy Presentation Linkbase Document). The following financial information from IDEXX Laboratories Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 formatted in XBRL: (i) Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016; (ii) Consolidated Balance Sheets at December 31, 2018 and 2017; (iii) Consolidated Statements of Changes in Equity for the years ended December 31, 2018, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016; and (v) Notes to Consolidated Financial Statements, tagged as blocks of text.
|
|
|
*
|
Confidential treatment requested as to certain portions.
|
|
|
**
|
Management contract or compensatory arrangement required to be filed as an exhibit pursuant to Item 15(a)(3) of Form 10-K.
|
|
IDEXX LABORATORIES, INC.
|
|
|
|
|
|
By: /s/ Jonathan W. Ayers
|
Date: February 15, 2019
|
Jonathan W. Ayers
|
|
President and Chief Executive Officer
|
SIGNATURE
|
|
|
TITLE
|
|
DATE
|
|||
|
|
|
|
|
||||
/s/ Jonathan W. Ayers
|
|
President, Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer)
|
|
February 15, 2019
|
||||
Jonathan W. Ayers
|
|
|
|
|||||
|
|
|
|
|
||||
/s/ Brian P. McKeon
|
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)
|
|
February 15, 2019
|
||||
Brian P. McKeon
|
|
|
|
|||||
|
|
|
|
|
||||
/s/ Bruce L. Claflin
|
|
Director
|
|
February 15, 2019
|
||||
Bruce L. Claflin
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ Stuart M. Essig, PhD
|
|
Director
|
|
February 15, 2019
|
||||
Stuart M. Essig
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ Rebecca M. Henderson, PhD
|
|
Director
|
|
February 15, 2019
|
||||
Rebecca M. Henderson, PhD
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ Daniel M. Junius
|
|
Director
|
|
February 15, 2019
|
||||
Daniel M. Junius
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ Lawrence D. Kingsley
|
|
Director
|
|
February 15, 2019
|
||||
Lawrence D. Kingsley
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ M. Anne Szostak
|
|
Director
|
|
February 15, 2019
|
||||
M. Anne Szostak
|
|
|
|
|
||||
|
|
|
|
|
||||
/s/ Sophie V. Vandebroek, PhD
|
|
Director
|
|
February 15, 2019
|
||||
Sophie V. Vandebroek, PhD
|
|
|
|
|
||||
|
|
|
|
|
1.
|
Grant of Restricted Stock Units.
|
IDEXX LABORATORIES, INC.
|
|
SUBSIDIARIES OF THE COMPANY
|
|
|
|
Legal Entity Name
|
Jurisdiction of Incorporation or Formation
|
|
|
342 Saco Street, LLC
|
Maine
|
Beijing IDEXX-Yuanheng Laboratories Co. Limited
|
China
|
IDEXX Animana B.V.
|
Netherlands
|
IDEXX Brasil Laboratórios Ltda.
|
Brazil
|
IDEXX Brasil Participações Ltda.
|
Brazil
|
IDEXX Diagnostic Limited
|
Ireland
|
IDEXX Diavet AG
|
Schwyz
|
IDEXX Distribution, Inc.
|
Massachusetts
|
IDEXX Europe B.V.
|
Netherlands
|
IDEXX GmbH
|
Germany
|
IDEXX Holding B.V.
|
Netherlands
|
IDEXX Holding GmbH
|
Germany
|
IDEXX Holdings, Inc.
|
Delaware
|
IDEXX Laboratories II (NZ) ULC
|
New Zealand
|
IDEXX Laboratories (Proprietary) Limited
|
South Africa
|
IDEXX Laboratories (Shanghai) Company Limited
|
China
|
IDEXX Laboratories B.V.
|
Netherlands
|
IDEXX Laboratories Canada 1, ULC
|
Nova Scotia
|
IDEXX Laboratories Canada 2, ULC
|
Nova Scotia
|
IDEXX Laboratories Canada Corporation
|
Canada
|
IDEXX Laboratories Canada LP
|
Ontario
|
IDEXX Laboratories Co., Ltd.
|
Thailand
|
IDEXX Laboratories Danmark ApS
|
Denmark
|
IDEXX Laboratories DMCC
|
UAE
|
IDEXX Laboratories Inc.
|
Taiwan Province of China
|
IDEXX Laboratories Italia S.r.l.
|
Italy
|
IDEXX Laboratories, KK
|
Japan
|
IDEXX Laboratories LLC
|
Russia
|
IDEXX Laboratories Limited
|
England & Wales
|
IDEXX Laboratories Ltd.
|
Korea, Republic of
|
IDEXX Laboratories Norge AS
|
Norway
|
IDEXX Laboratories Oy
|
Finland
|
IDEXX Laboratories Private Limited
|
India
|
IDEXX Laboratories Pty Limited
|
New South Wales
|
IDEXX Laboratories Singapore Pte. Ltd.
|
Singapore
|
IDEXX Laboratories Sp. z o.o.
|
Poland
|
IDEXX Laboratories SPRL
|
Belgium
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IDEXX Laboratories Sverige AB
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Sweden
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IDEXX Laboratories, S.de R.L. de C.V.
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Mexico
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IDEXX Laboratories s.r.o.
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Czech Republic
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IDEXX Laboratorios, S.L.
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Spain
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IDEXX Montpellier SAS
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France
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IDEXX Operations, Inc.
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Delaware
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IDEXX Pharmaceuticals, LLC
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Delaware
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IDEXX Real Estate Holdings, LLC
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Maine
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IDEXX Reference Laboratories Ltd.
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Canada
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IDEXX SARL
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France
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IDEXX Switzerland GmbH
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Bern/Berne
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IDEXX Technologies GmbH
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Bern/Berne
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IDEXX Technologies Limited
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England & Wales
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IDEXX Technologies VSS LLC
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Ukraine
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IDEXX UK Acquisition Limited
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England & Wales
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IDEXX Vet Med Labor GmbH
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Austria
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In Vitro-Labor für veterinärmedizinische Diagnostik und Hygiene GmbH
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Austria
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Laboratoire IDEXX SARL
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France
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OPTI Medical Systems GmbH
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Germany
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OPTI Medical Systems, Inc.
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Delaware
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Vet Med Lab (UK) Limited
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England & Wales
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Vet Med Labor GmbH
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Germany
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/s/ PricewaterhouseCoopers LLP
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Boston, Massachusetts
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February 15, 2019
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1)
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I have reviewed this report on Form 10-K for the year ended December 31, 2018 of IDEXX Laboratories, Inc.;
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2)
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3)
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4)
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5)
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 15, 2019
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/s/ Jonathan W. Ayers
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Jonathan W. Ayers
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|
Chairman, President and Chief Executive Officer
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|
(Principal Executive Officer)
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1)
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I have reviewed this report on Form 10-K for the year ended December 31, 2018 of IDEXX Laboratories, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: February 15, 2019
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/s/ Brian P. McKeon
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|
Brian P. McKeon
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|
Executive Vice President, Chief Executive Officer
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|
and Treasurer
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(Principal Financial Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Jonathan W. Ayers
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February 15, 2019
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Jonathan W. Ayers
Chairman, President and Chief Executive Officer
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(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Brian P. McKeon
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February 15, 2019
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Brian P. McKeon
Executive Vice President, Chief Financial Officer
and Treasurer
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