Segments and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Schedule of Segment Reporting Information, by Segment

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	2018			2017			2018			2017
Clear Aligner	$	433,241		$	321,036		$	818,746		$	603,435
Scanner	57,018			35,446			108,437			63,388
Total net revenues	$	490,259		$	356,482		$	927,183		$	666,823
Gross profit
Clear Aligner	$	331,612		$	250,814		$	628,588		$	470,761
Scanner	33,970			20,103			64,402			35,781
Total gross profit	$	365,582		$	270,917		$	692,990		$	506,542
Income from operations
Clear Aligner	$	190,287		$	133,916		$	351,741		$	248,650
Scanner	17,670			8,795			33,752			14,799
Unallocated corporate expenses	(85,266		)	(59,142		)	(164,610		)	(118,207		)
Total income from operations	$	122,691		$	83,569		$	220,883		$	145,242
Depreciation and amortization
Clear Aligner	$	6,759		$	5,600		$	13,143		$	9,963
Scanner	1,169			1,082			2,273			2,119
Unallocated corporate depreciation and amortization	4,704			2,194			8,650			4,661
Total depreciation and amortization	$	12,632		$	8,876		$	24,066		$	16,743

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,
	2018			2017			2018			2017
Total segment income from operations	$	207,957		$	142,711		$	385,493		$	263,449
Unallocated corporate expenses	(85,266		)	(59,142		)	(164,610		)	(118,207		)
Total income from operations	122,691			83,569			220,883			145,242
Interest income	1,917			1,441			4,093			2,636
Other income (expense), net	(7,099		)	1,771			(6,922		)	2,221
Net income before provision for income taxes and equity in losses of investee	$	117,509		$	86,781		$	218,054		$	150,099

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Net revenues 1:
United States	$	254,020	$	207,021	$	491,123	$	390,294
The Netherlands	156,428		109,532		295,959		209,331
Other International	79,811		39,929		140,101		67,198
Total net revenues	$	490,259	$	356,482	$	927,183	$	666,823

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):

	June 30, 2018		December 31, 2017
Long-lived assets 2:
The Netherlands	$	190,130	$	143,673
United States	129,837		128,171
Costa Rica	61,609		30,738
Mexico	31,289		25,090
China	16,393		5,480
Other International	18,675		15,641
Total long-lived assets	$	447,933	$	348,793

²Long-lived assets are attributed to countries based on entity that owns the assets.