Segments and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Net revenues
Clear Aligner	$	481,611	$	469,205
Scanner	69,352		79,766
Total net revenues	$	550,963	$	548,971
Gross profit
Clear Aligner	$	351,492	$	351,358
Scanner	42,864		50,738
Total gross profit	$	394,356	$	402,096
Income from operations
Clear Aligner	$	166,388	$	158,641
Scanner	14,389		28,259
Unallocated corporate expenses	(110,859)		(99,199)
Total income from operations	$	69,918	$	87,701
Depreciation and amortization
Clear Aligner	$	10,121	$	9,090
Scanner	1,785		1,508
Unallocated corporate depreciation and amortization	8,832		7,718
Total depreciation and amortization	$	20,738	$	18,316
Impairments and other charges
Clear Aligner	$	—	$	29,782
Total impairments and other charges	$	—	$	29,782

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 (in thousands):

	Three Months Ended March 31,
	2020		2019
Total segment income from operations	$	180,777	$	186,900
Unallocated corporate expenses	(110,859)		(99,199)
Total income from operations	69,918		87,701
Interest income	1,986		2,633
Other income (expense), net	(18,549)		(5,746)
Net income before provision for (benefit from) income taxes and equity in losses of investee	$	53,355	$	84,588

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 March 31,
	2020		2019
Net revenues 1:
United States	$	271,705	$	279,005
Switzerland 2	184,317		—
The Netherlands 2	—		174,744
China	19,725		42,616
Other International	75,216		52,606
Total net revenues	$	550,963	$	548,971

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

² During the first quarter of 2020, we implemented a new international corporate structure. This changed the structure of our international procurement and sales operations from the Netherlands to Switzerland.

Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):

	March 31, 2020		December 31, 2019
Long-lived assets 1:
Switzerland 2	$	229,010	$	7,755
United States	182,131		164,451
Costa Rica	85,573		82,083
China	84,127		73,174
The Netherlands 2	1,504		226,286
Other International	151,512		134,225
Total long-lived assets	$	733,857	$	687,974

¹ Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

2 As a result of the new international corporate structure changes, most of the long-lived assets were transferred from our Netherlands entity to our Switzerland entity during the first quarter of 2020