Segments and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2018

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	2018			2017
Clear Aligner	$	385,505		$	282,399
Scanner	51,419			27,942
Total net revenues	$	436,924		$	310,341
Gross profit
Clear Aligner	$	296,976		$	219,947
Scanner	30,432			15,678
Total gross profit	$	327,408		$	235,625
Income from operations
Clear Aligner	$	161,454		$	114,734
Scanner	16,082			6,004
Unallocated corporate expenses	(79,344		)	(59,065		)
Total income from operations	$	98,192		$	61,673
Depreciation and amortization
Clear Aligner	$	6,384		$	4,363
Scanner	1,104			1,037
Unallocated corporate expenses	3,946			2,467
Total depreciation and amortization	$	11,434		$	7,867

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

	Three Months Ended March 31,
	2018			2017
Total segment income from operations	$	177,536		$	120,738
Unallocated corporate expenses	(79,344		)	(59,065		)
Total income from operations	98,192			61,673
Interest income	2,176			1,195
Other income (expense), net	177			450
Net income before provision for (benefit from) income taxes and equity in losses of investee	$	100,545		$	63,318

Geographical Information

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

	Three Months Ended March 31,
	2018		2017
Net revenues 1:
United States	$	237,103	$	183,273
The Netherlands	139,531		99,799
Other International	60,290		27,269
Total net revenues	$	436,924	$	310,341

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

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

	March 31, 2018		December 31, 2017
Long-lived assets 1:
The Netherlands	$	164,165	$	143,673
United States	126,983		128,171
Costa Rica	48,470		30,738
Mexico	30,215		25,090
China	12,258		5,480
Other International	18,437		15,641
Total long-lived assets	$	400,528	$	348,793

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