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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2017 |
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IDEXX Laboratories Limited |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2017 |
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for |
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IDEXX Laboratories Limited |
IDEXX Laboratories Limited (Registered number: 02454226) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2017 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Statement of Directors' Responsibilities | 5 |
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Report of the Independent Auditors | 6 |
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Statement of Comprehensive Income | 8 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Notes to the Financial Statements | 11 |
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IDEXX Laboratories Limited |
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Company Information |
for the Year Ended 31 December 2017 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
Mill House |
Boundary Road |
Loudwater |
High Wycombe |
Bucks. |
HP10 9QN |
IDEXX Laboratories Limited (Registered number: 02454226) |
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Strategic Report |
for the Year Ended 31 December 2017 |
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The directors present their strategic report for the year ended 31 December 2017. |
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IDEXX Laboratories UK Ltd. ("the Company") is a fully owned subsidiary of IDEXX Europe BV. The ultimate |
parent Company is IDEXX Laboratories Inc. The Company's main activities include sales & marketing of |
veterinary diagnostic products, veterinary laboratory services and water diagnostic products. |
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REVIEW OF BUSINESS |
Net sales for 2017 were £66,265,000, an increase of 5% over 2016. |
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Net profit/loss (after tax) went up from a profit of £1,769,000 in 2016 to a profit of £2,032.000 in 2017. |
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The companion animal veterinary diagnostics business continued its solid growth by an increase of 9% in |
2017. The business continued to successfully place its instruments into veterinary clinics and the sales grew |
accordingly. This, coupled with the placements in 2017 and improvements in utilization of the instruments, |
means that consumables revenue became an important recurring source. |
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At the same time our laboratory services have seen record sample volumes in the year and sales have also |
grown dynamically. |
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The Livestock, Poultry and Dairy segment has seen its contribution reduced by £960,000 compared to last |
year. This can be explained by the incorporation of a new legal entity in Ireland which absorbed around |
£1,066,000 of revenue to the Irish market. |
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If we compare the same market, LPD UK region revenues in 2017 were flat from 2016 with a few offsetting |
dynamics. Ruminant (BVDV volume decline) and Swine (PRRS volume decline) revenues decreased vs 2016 |
but were offset for the most part by small increases in both Poultry and Dairy. |
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Our water diagnostics business has again delivered strong results, with revenues now topping £6,426,000 |
and growth of 6%. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors have assessed the Company's price, credit and liquidity risks all of which are considered to be |
low. |
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FUTURE DEVELOPMENTS |
For 2018 the business continues to focus on top line growth however, it is also looking to improve gross and |
operating margins. |
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The Company has increased the number of personnel in 2017, from 254 in 2016 to a total of 269. For coming |
years we expect to add personnel in selected areas while continuing to seek efficiency improvements to |
maintain expectations of continued business growth and leverage. |
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ON BEHALF OF THE BOARD: |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Report of the Directors |
for the Year Ended 31 December 2017 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2017. |
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DIVIDENDS |
An interim dividend of £ no final dividend be paid. |
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The total distribution of dividends for the year ended 31 December 2017 will be £
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The profit for the year, after taxation, amounted to £1,769,151. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2017 to the date of |
this report. |
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Other changes in directors holding office are as follows: |
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date of this report. |
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The company is a wholly owned subsidiary and the interests of the group directors are disclosed in the |
financial statements of the ultimate parent company. |
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FINANCIAL INSTRUMENTS |
Basic financial instruments, including trade and other receivables, cash and bank balances and investments |
in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a |
financing transaction, where the transaction is measured at the present value of future receipts discounted at |
a market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for objective |
evidence of impairment., If an asset is impaired the impairment loss is the difference between the carrying |
amount and the present value of the estimated cash flows discounted at the asset's original effective interest |
rate. The impairment loss is recognised in profit or loss. |
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EMPLOYEES |
IDEXX takes an utmost care to comply with the Equality Act (2010) to be sure as an employer we provide to |
our employees the most ethical environment. IDEXX employees have access to a large batch of |
documentation on our intranet to better understand our code of Ethics and their rights. Thus, our HR |
department promotes these morals throughout guidelines on multiple topics (i.e.: opportunities, training or |
employment of disabled persons). |
IDEXX Laboratories Limited (Registered number: 02454226) |
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Report of the Directors |
for the Year Ended 31 December 2017 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps |
that he or she ought to have taken as a director in order to make himself or herself aware of any relevant |
audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Statement of Directors' Responsibilities |
for the Year Ended 31 December 2017 |
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The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law |
the directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company |
law the directors must not approve the financial statements unless they are satisfied that they give a true and |
fair view of the state of affairs of the company and of the profit or loss of the company for that period. In |
preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain |
the company's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and enable them to ensure that the financial statements comply with the Companies Act 2006. They |
are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for |
the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
IDEXX Laboratories Limited |
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Opinion |
We have audited the financial statements of IDEXX Laboratories Limited (the 'company') for the year ended |
31 December 2017 which comprise the Statement of Comprehensive Income, Statement of Financial |
Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of |
significant accounting policies. The financial reporting framework that has been applied in their preparation is |
applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally |
Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2017 and of its profit for
the year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
applicable law. Our responsibilities under those standards are further described in the Auditors' |
responsibilities for the audit of the financial statements section of our report. We are independent of the |
company in accordance with the ethical requirements that are relevant to our audit of the financial statements |
in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in |
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and |
appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not |
include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and we do not express any form |
of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, |
in doing so, consider whether the other information is materially inconsistent with the financial statements or |
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we |
have performed, we conclude that there is a material misstatement of this other information, we are required |
to report that fact. We have nothing to report in this regard. |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which
the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
Report of the Independent Auditors to the Members of |
IDEXX Laboratories Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of |
the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
report to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair |
view, and for such internal control as the directors determine necessary to enable the preparation of financial |
statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to |
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going |
concern basis of accounting unless the directors either intend to liquidate the company or to cease |
operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes |
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit |
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. |
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, |
they could reasonably be expected to influence the economic decisions of users taken on the basis of these |
financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of |
the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's |
members those matters we are required to state to them in a Report of the Auditors and for no other purpose. |
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the |
company and the company's members as a body, for our audit work, for this report, or for the opinions we |
have formed. |
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for and on behalf of
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Statutory Auditor |
Mill House |
Boundary Road |
Loudwater |
High Wycombe |
Bucks. |
HP10 9QN |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Statement of Comprehensive Income |
for the Year Ended 31 December 2017 |
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2017 | 2016 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING PROFIT |
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Interest receivable and similar income |
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2,582,675 | 2,323,749 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION | 7 |
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Tax on profit | 8 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Statement of Financial Position |
31 December 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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Investments | 12 |
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CURRENT ASSETS |
Debtors | 13 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 17 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
its behalf by: |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2017 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2017 |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2017 |
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1. | STATEMENT OF COMPLIANCE |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and |
Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• |
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and
26.23; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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Preparation of consolidated financial statements |
The financial statements contain information about IDEXX Laboratories Limited as an individual |
company and do not contain consolidated financial information as the parent of a group. The company |
is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare |
consolidated financial statements as it and its subsidiary undertakings are included by full consolidation |
in the the consolidated financial statements of its ultimate parent, IDEXX Laboratories Inc., a company |
registered in the United States of America. |
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Turnover |
Turnover represents net invoiced sales of goods and services, excluding value added tax. |
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Goodwill |
Amortisation is calculated so as to write off the cost of the goodwill, less its estimated residual value, |
over the useful economic life of the goodwill. |
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The useful economic life is considered to be 2 to 20 years. |
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Tangible fixed assets |
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Freehold property | - |
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Short leasehold | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Basic financial instruments, including trade and other receivables, cash and bank balances and |
investments in commercial paper, are initially recognised at transaction price, unless the arrangement |
constitutes a financing transaction, where the transaction is measured at the present value of future |
receipts discounted at a market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for |
objective evidence of impairment., If an asset is impaired the impairment loss is the difference |
between the carrying amount and the present value of the estimated cash flows discounted at the |
asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive |
income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the statement of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the statement of financial position date. Transactions in foreign currencies are translated into sterling |
at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account |
in arriving at the operating result. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2017 | 2016 |
£ | £ |
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The total turnover of the company for the year has been derived from its principal activity wholly |
undertaken in the UK and Southern Ireland. |
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4. | EMPLOYEES AND DIRECTORS |
2017 | 2016 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2017 | 2016 |
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Directors |
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Supply and marketing diagnostic products |
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Veterinary laboratory |
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5. | DIRECTORS' EMOLUMENTS |
2017 | 2016 |
£ | £ |
Directors' remuneration |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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Information regarding the highest paid director is as follows: |
2017 | 2016 |
£ | £ |
Emoluments etc |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
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5. | DIRECTORS' EMOLUMENTS - continued |
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Certain directors are remunerated by other fellow group companies as they are also directors and |
officers of other companies within the group. These directors services to the company do not occupy a |
significant amount of their time. As such these directors do not consider that they have received any |
remuneration for the incidental services to the company for the year ended 31 December 2017 or 31 |
December 2016. |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2017 | 2016 |
£ | £ |
Interest paid on late tax |
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Loan |
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7. | PROFIT BEFORE TAXATION |
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The profit is stated after charging/(crediting): |
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2017 | 2016 |
£ | £ |
Other operating leases |
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Depreciation - owned assets |
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Loss on disposal of fixed assets |
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Goodwill amortisation |
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Auditor's remuneration |
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Taxation compliance services |
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Foreign exchange differences |
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( |
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8. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2017 | 2016 |
£ | £ |
Current tax: |
UK corporation tax |
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Deferred tax | ( |
) | ( |
) |
Tax on profit |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
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8. | TAXATION - continued |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The |
difference is explained below: |
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2017 | 2016 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
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Effects of: |
Expenses not deductible for tax purposes |
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Depreciation in excess of capital allowances |
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Group relief | ( |
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Revenue expenditure capitalised | - | (1,410 | ) |
Movement in deferred tax | ( |
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Group relieved Research & Development expenditure credit | - | (9,427 | ) |
Total tax charge |
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The UK Government announced as part of the FInance (No 2) Act 2015, which received Royal Assent |
on 18 November 2015 that the main rate of corporation tax would be reduced from 20% to 19% from 1 |
April 2017. In addition as part of the Finance Act 2016, it was further reduced to 17% from 1 April |
2020. This will affect the rate at which future UK current tax will be payable. |
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9. | DIVIDENDS |
2017 | 2016 |
£ | £ |
Ordinary shares of £1 each |
Interim |
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10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2017 |
and 31 December 2017 |
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AMORTISATION |
At 1 January 2017 |
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Amortisation for year |
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At 31 December 2017 |
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NET BOOK VALUE |
At 31 December 2017 |
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At 31 December 2016 |
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IDEXX Laboratories Limited (Registered number: 02454226) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
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11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Short | and | Computer |
property | leasehold | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2017 |
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Additions |
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Disposals |
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( |
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Reclassification/transfer |
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At 31 December 2017 |
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DEPRECIATION |
At 1 January 2017 |
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Charge for year |
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Eliminated on disposal |
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( |
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) | ( |
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Reclassification/transfer |
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At 31 December 2017 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2017 |
|
|
|
|
|
At 31 December 2016 |
|
|
|
|
|
|
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2017 |
and 31 December 2017 |
|
NET BOOK VALUE |
At 31 December 2017 |
|
At 31 December 2016 |
|
|
The company's investments at the Statement of Financial Position date in the share capital of |
companies include the following: |
|
|
Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2017 | 2016 |
£ | £ |
Aggregate capital and reserves |
|
|
IDEXX Laboratories Limited (Registered number: 02454226) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2017 | 2016 |
£ | £ |
Accruals and deferred income |
|
|
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2017 | 2016 |
£ | £ |
Within one year | 296,361 | 339,209 |
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
17. | PROVISIONS FOR LIABILITIES |
2016 |
£ |
Deferred tax |
|
IDEXX Laboratories Limited (Registered number: 02454226) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
|
17. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred |
tax |
£ |
Balance at 1 January 2017 |
|
Movement in provision | ( |
) |
Balance at 31 December 2017 | ( |
) |
|
18. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
|
Ordinary | £1 |
|
2 |
|
19. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2017 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 December 2017 |
|
|
20. | ULTIMATE PARENT COMPANY |
|
The company was controlled throughout the current and previous year by its immediate parent |
company, IDEXX Europe BV, a company incorporated in the Netherlands. The ultimate parent |
company is IDEXX Laboratories Inc, a company incorporated in the USA. Copies of the group |
accounts incorporating the results of the company are available from IDEXX Laboratories Inc, One |
Idexx Drive, Westbrook, Maine 04092, USA. |
|
21. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
party transactions with wholly owned subsidiaries within the group. |
IDEXX Laboratories Limited (Registered number: 02454226) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
|
22. | SHARE-BASED PAYMENT TRANSACTIONS |
|
IDEXX Laboratories Inc. provide for various forms of share-based compensation awards to our |
employees and non-employee directors. The share-based compensation plans allow for the issuance |
of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights |
and other stock unit awards. With the exception of stock options, the fair value of our awards is equal |
to the closing stock price of IDEXX common stock on the date of grant. The fair value of the stock |
option awards is calculated using the Black-Scholes-Merton option-pricing model. For stock options, |
restricted stock units (RSUs), and deferred stock units (DSUs), share-based compensation expense is |
recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the |
award for stock options. For performance-based restricted stock units (PBRSUs), share-based |
compensation expense is recognized net of estimated forfeitures, on a grade-vesting methodology |
over the requisite service period. |
|
Stock options permit a holder to buy IDEXX stock upon vesting at the stock’s price on the date the |
option was granted. An RSU is an agreement to issue shares of IDEXX stock at the time of vesting. A |
PBRSUs is an agreement to issues shares of IDEXX stock at the time of vesting upon successful |
completion of certain performance goals. DSUs are granted under our Executive Deferred |
Compensation Plan (the Executive Plan) and non-employee Director Deferred Compensation Plan (the |
Director Plan). DSUs may or may not have vesting conditions depending on the plan under which they |
are issued. |
|
IDEXX Laboratories Inc. primarily issue shares of common stock to satisfy stock option exercises and |
employee stock purchase rights and to settle RSUs, PBRSUs, and DSUs. IDEXX Laboratories Inc. |
issue shares of treasury stock to settle certain RSUs and upon the exercise of certain stock options. |
The number of shares of common stock and treasury stock issued are equivalent to the number of |
awards exercised or settled. |
|
With the exception of employee stock purchase rights, equity awards are issued to employees and |
non-employee directors under the 2009 Stock Incentive Plan (the 2009 Stock Plan). IDEXX |
Laboratories Inc. Board of Directors has authorised the issuance of 19.9 million shares of common |
stock under this share-based incentive plan. Any shares that are subject to awards of stock options or |
stock appreciation rights will be counted against the share limit as one share for every share granted. |
Any shares that are issued other than stock options and stock appreciation rights will be counted |
against the share limit as two shares for every share granted. If any shares issued under our prior |
plans are forfeited, settled for cash, or expire, these shares, to the extent of such forfeiture, cash |
settlement or expiration, will again be available for issuance under the 2009 Stock Plan. As of |
December 31, 2017, there were approximately 11.4 million remaining shares available for issuance |
under the 2009 Stock Plan. |
|
Option awards are granted with an exercise price equal to the closing market price of our common |
stock on the date of grant. Options granted to employees primarily vest ratably over five years on each |
anniversary of the date of grant and options granted to non-employee directors vest fully on the first |
anniversary of the date of grant. Vesting of option awards issued is conditional based on continuous |
service. Options granted after May 8, 2013 have a contractual term of ten years, options granted |
between January 1, 2006 and May 8, 2013 have contractual terms of seven years and options granted |
prior to January 1, 2006 had contractual terms of ten years. Upon any change in control of the |
company, 25 percent of the unvested stock options then outstanding will vest and become exercisable. |
However, if the acquiring entity does not assume outstanding options, then all options will vest |
immediately prior to the change in control |
|
IDEXX Laboratories Limited (Registered number: 02454226) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
The majority of RSUs, including our PBRSUs, granted to employees vest ratably over five years on |
each anniversary of the date of grant. PBRSUs granted to employees vest based on meeting |
performance goals in the year of grant. RSUs granted to non-employee directors vest fully on the first |
anniversary of the date of grant. Vesting as it relates to RSUs and PBRSUs issued is conditional based |
on continuous service. Upon any change in control of the company, 25 percent of the unvested RSUs |
and PBRSUs then outstanding will vest, provided, however, that if the acquiring entity does not assume |
the RSUs and PBRSUs, then all such units will vest immediately prior to the change in control. At time |
of grant, we assume all PBRSUs will meet |
performance goals to vest. |
|
The company received a charge of £260,530 (2016: £85,477) from IDEXX Laboratories Inc. based on |
the spread on exercise in addition to the share-based payment charge. |