Segments and Geographical Information (Tables)

9 Months Ended

Sep. 30, 2019

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	2019			2018			2019			2018
Clear Aligner	$	516,265		$	427,087		$	1,482,172		$	1,245,833
Scanner	91,076			78,202			274,837			186,639
Total net revenues	$	607,341		$	505,289		$	1,757,009		$	1,432,472
Gross profit
Clear Aligner	$	379,202		$	321,772		$	1,096,702		$	950,360
Scanner	58,352			50,009			175,237			114,411
Total gross profit	$	437,554		$	371,781		$	1,271,939		$	1,064,771
Income from operations
Clear Aligner	$	211,952		$	182,667		$	614,622		$	534,408
Scanner	32,760			31,498			100,286			65,250
Unallocated corporate expenses	(117,560		)	(88,957		)	(323,565		)	(253,567		)
Total income from operations	$	127,152		$	125,208		$	391,343		$	346,091
Depreciation and amortization
Clear Aligner	$	9,306		$	7,218		$	27,851		$	20,361
Scanner	1,987			1,237			5,349			3,510
Unallocated corporate depreciation and amortization	8,413			5,664			23,994			14,314
Total depreciation and amortization	$	19,706		$	14,119		$	57,194		$	38,185
Impairments and other (gains) charges
Clear Aligner	$	(6,792	)	$	—		$	22,990		$	—
Scanner	—			—			—			—
Unallocated corporate impairments and other charges	—			—			—			—
Total impairments and other charges	$	(6,792	)	$	—		$	22,990		$	—

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,
	2019			2018			2019			2018
Total segment income from operations	$	244,712		$	214,165		$	714,908		$	599,658
Unallocated corporate expenses	(117,560		)	(88,957		)	(323,565		)	(253,567		)
Total income from operations	127,152			125,208			391,343			346,091
Interest income	3,478			2,234			9,576			6,327
Other income (expense), net	(2,211		)	(837		)	5,935			(7,759		)
Net income before provision for income taxes and equity in losses of investee	$	128,419		$	126,605		$	406,854		$	344,659

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,
	2019		2018		2019		2018
Net revenues 1:
United States	$	286,050	$	263,349	$	861,710	$	754,472
The Netherlands	173,926		141,405		540,858		437,364
China	63,636		52,874		151,075		116,891
Other International	83,729		47,661		203,366		123,745
Total net revenues	$	607,341	$	505,289	$	1,757,009	$	1,432,472

¹ Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

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

	September 30, 2019		December 31, 2018
Long-lived assets 2:
The Netherlands	$	231,746	$	206,679
United States	164,732		139,239
Costa Rica	81,574		80,218
China	62,359		36,249
Mexico	38,494		33,240
Other International	81,599		25,704
Total long-lived assets	$	660,504	$	521,329

 

² Long-lived assets are attributed to countries based on the location of our entity that owns or leases the asset