Segment Reporting

6 Months Ended

Jun. 30, 2019

SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Interim Chief Executive Officer. Our reportable segments include diagnostic and information technology-based products and services for the veterinary market, which we refer to as the Companion Animal Group (“CAG”), water quality products (“Water”) and diagnostic products and services for livestock and poultry health and to ensure the quality and safety of milk and improve dairy efficiency, which we refer to as Livestock, Poultry and Dairy (“LPD”). Our Other operating segment combines and presents products for the human point-of-care medical diagnostics market with our out-licensing arrangements. Assets are not allocated to segments for internal reporting purposes.

Certain costs are not allocated to our operating segments and are instead reported under the caption “Unallocated Amounts.” These costs include costs that do not align with one of our existing operating segments or are cost prohibitive to allocate, which primarily consist of our R&D function, regional or country expenses, certain foreign currency revaluation and settlement gains and losses on monetary balances in currencies other than our subsidiaries’ functional currency and unusual items. Corporate support function costs (such as information technology, facilities, human resources, finance and legal), health benefits and incentive compensation are charged to our business segments at pre-determined budgeted amounts or rates. Differences from these pre-determined budgeted amounts or rates are also captured within Unallocated Amounts.

The following is a summary of segment performance:



(in thousands)	For the Three Months Ended June 30,
	CAG		Water		LPD		Other		Unallocated Amounts			Consolidated Total
2019
Revenue	$	547,349	$	34,764	$	33,104	$	4,886	$	—		$	620,103

Income (loss) from operations	$	144,583	$	16,567	$	6,393	$	752	$	(4,020	)	$	164,275
Interest expense, net												(8,153		)
Income before provision for income taxes												156,122
Provision for income taxes												30,421
Net income												125,701
Less: Net loss attributable to noncontrolling interest												(5		)
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	125,706

2018
Revenue	$	507,487	$	32,658	$	34,998	$	5,609	$	—		$	580,752

Income (loss) from operations	$	129,796	$	15,122	$	6,471	$	1,130	$	(6,925	)	$	145,594
Interest expense, net												(8,285		)
Income before provision for income taxes												137,309
Provision for income taxes												28,629
Net income												108,680
Less: Net loss attributable to noncontrolling interest												(11		)
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	108,691



(in thousands)	For the Six Months Ended June 30,
	CAG		Water		LPD		Other		Unallocated Amounts			Consolidated Total
2019
Revenue	$	1,056,267	$	65,074	$	64,610	$	10,208	$	—		$	1,196,159

Income (loss) from operations	$	259,605	$	30,349	$	12,643	$	2,278	$	(7,462	)	$	297,413
Interest expense, net												(16,499		)
Income before provision for income taxes												280,914
Provision for income taxes												52,504
Net income												228,410
Less: Net income attributable to noncontrolling interest												23
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	228,387

2018
Revenue	$	978,320	$	61,801	$	67,238	$	11,049	$	—		$	1,118,408

Income (loss) from operations	$	230,194	$	27,584	$	9,432	$	1,628	$	(10,200	)	$	258,638
Interest expense, net												(16,980		)
Income before provision for income taxes												241,658
Provision for income taxes												43,502
Net income												198,156
Less: Net income attributable to noncontrolling interest												14
Net income attributable to IDEXX Laboratories, Inc. stockholders												$	198,142

See “Note 3. Revenue Recognition” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three and six months ended June 30, 2019 and 2018.