Segments and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2017

Notes To Financial Statements [Abstract]

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocation of resources. The following information relates to these segments (in thousands):

	Three Months Ended March 31,
Net revenues	2017			2016
Clear Aligner	$	282,399		$	219,698
Scanner	27,942			19,022
Total net revenues	$	310,341		$	238,720
Gross profit
Clear Aligner	$	219,947		$	172,067
Scanner	15,678			8,560
Total gross profit	$	235,625		$	180,627
Income from operations
Clear Aligner	$	114,734		$	96,650
Scanner	6,004			1,542
Unallocated corporate expenses	(59,065		)	(44,858		)
Total income from operations	$	61,673		$	53,334
Depreciation and amortization
Clear Aligner	$	4,363		$	3,152
Scanner	1,037			1,048
Unallocated corporate expenses	2,467			592
Total depreciation and amortization	$	7,867		$	4,792

The following table reconciles total segment income from operations in the table above to net income before provision for income taxes and equity losses of investee (in thousands):

	Three Months Ended March 31,
	2017			2016
Total segment income from operations	$	120,738		$	98,192
Unallocated corporate expenses	(59,065		)	(44,858		)
Total income from operations	61,673			53,334
Interest and other income (expense), net	1,645			(427		)
Net income before provision (benefit) for income taxes and equity in losses of investee	$	63,318		$	52,907

Geographical Information

Net revenues are presented below by geographic area (in thousands):

	Three Months Ended March 31,
	2017		2016
Net revenues(1):
United States (2)	$	183,273	$	166,101
The Netherlands (2)	105,650		47,400
Other International	21,418		25,219
Total net revenues	$	310,341	$	238,720

⁽¹⁾Net revenues are attributed to countries based on location of where revenue is recognized.

⁽²⁾ Effective July 2016, we implemented a new international corporate structure. This changed the structure of our international procurement and sales operations.

Tangible long-lived assets are presented below by geographic area (in thousands):

	March 31, 2017		December 31, 2016
Long-lived assets(1):
The Netherlands	$	120,513	$	111,515
United States	86,252		43,278
Mexico	17,952		17,918
Other International	6,975		2,456
Total long-lived assets	$	231,692	$	175,167

⁽¹⁾Long-lived assets are attributed to countries based on entity that owns the assets.