Segments and Geographical Information (Tables)

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
Net revenues	2017			2016			2017			2016
Clear Aligner	$	321,036		$	243,436		$	603,435		$	463,134
Scanner	35,446			25,926			63,388			44,948
Total net revenues	$	356,482		$	269,362		$	666,823		$	508,082
Gross profit
Clear Aligner	$	250,814		$	191,326		$	470,761		$	363,393
Scanner	20,103			13,890			35,781			22,450
Total gross profit	$	270,917		$	205,216		$	506,542		$	385,843
Income from operations
Clear Aligner	$	133,916		$	107,709		$	248,650		$	204,358
Scanner	8,795			6,814			14,799			8,356
Unallocated corporate expenses	(59,142		)	(49,387		)	(118,207		)	(94,244		)
Total income from operations	$	83,569		$	65,136		$	145,242		$	118,470
Depreciation and amortization
Clear Aligner	$	5,600		$	3,470		$	9,963		$	6,622
Scanner	1,082			1,044			2,119			2,092
Unallocated corporate expenses	2,194			579			4,661			1,171
Total depreciation and amortization	$	8,876		$	5,093		$	16,743		$	9,885

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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Total segment income from operations	$	142,711		$	114,523		$	263,449		$	212,714
Unallocated corporate expenses	(59,142		)	(49,387		)	(118,207		)	(94,244		)
Total income from operations	83,569			65,136			145,242			118,470
Interest and other income (expense), net	3,212			125			4,857			(302		)
Net income before provision for income taxes and equity in losses of investee	$	86,781		$	65,261		$	150,099		$	118,168

Geographical Information

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Net revenues⁽¹⁾:
United States ⁽²⁾	$	207,021	$	182,322	$	390,294	$	348,423
The Netherlands ⁽²⁾	124,321		56,598		229,971		103,998
Other International	25,140		30,442		46,558		55,661
Total net revenues	$	356,482	$	269,362	$	666,823	$	508,082

⁽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):



	June 30, 2017		December 31, 2016
Long-lived assets⁽¹⁾:
The Netherlands	$	127,980	$	111,515
United States	103,207		43,278
Mexico	18,073		17,918
Other International	6,279		2,456
Total long-lived assets	$	255,539	$	175,167

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