Segments and Geographical Information (Tables)

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
Net revenues	2018			2017			2018			2017
Clear Aligner	$	427,087		$	341,611		$	1,245,833		$	945,046
Scanner	78,202			43,656			186,639			107,044
Total net revenues	$	505,289		$	385,267		$	1,432,472		$	1,052,090
Gross profit
Clear Aligner	$	321,772		$	266,285		$	950,360		$	737,046
Scanner	50,009			26,203			114,411			61,984
Total gross profit	$	371,781		$	292,488		$	1,064,771		$	799,030
Income from operations
Clear Aligner	$	182,667		$	154,614		$	534,408		$	403,264
Scanner	31,498			13,525			65,250			28,324
Unallocated corporate expenses	(88,957		)	(69,376		)	(253,567		)	(187,583		)
Total income from operations	$	125,208		$	98,763		$	346,091		$	244,005
Depreciation and amortization
Clear Aligner	$	7,218		$	5,643		$	20,361		$	15,607
Scanner	1,237			1,130			3,510			3,248
Unallocated corporate depreciation and amortization	5,664			3,199			14,314			7,860
Total depreciation and amortization	$	14,119		$	9,972		$	38,185		$	26,715

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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Total segment income from operations	$	214,165		$	168,139		$	599,658		$	431,588
Unallocated corporate expenses	(88,957		)	(69,376		)	(253,567		)	(187,583		)
Total income from operations	125,208			98,763			346,091			244,005
Interest income	2,234			1,826			6,327			4,462
Other income (expense), net	(837		)	1,924			(7,759		)	4,145
Net income before provision for income taxes and equity in losses of investee	$	126,605		$	102,513		$	344,659		$	252,612

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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net revenues 1:
United States	$	263,349	$	217,758	$	754,472	$	608,052
The Netherlands	141,405		109,068		437,364		318,399
China	52,874		26,965		116,891		59,195
Other International	47,661		31,476		123,745		66,444
Total net revenues	$	505,289	$	385,267	$	1,432,472	$	1,052,090

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

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

	September 30, 2018		December 31, 2017
Long-lived assets 2:
The Netherlands	$	195,790	$	143,673
United States	135,369		128,171
Costa Rica	71,437		30,738
Mexico	34,272		25,090
China	33,955		5,480
Other International	20,807		15,641
Total long-lived assets	$	491,630	$	348,793

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