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Segments and Geographical Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segments and Geographical Information Segments and Geographical Information
Segment Information

We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations generally include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, other separately managed general and administrative costs outside the operating segments and restructuring costs. We group our operations into two reportable segments: Clear Aligner segment and Imaging Systems and CAD/CAM services (“Systems and Services”) segment.
Summarized financial information by segment is as follows (in thousands):
 Year Ended December 31,
202220212020
Net revenues
Clear Aligner$3,072,585 $3,247,080 $2,101,459 
Systems and Services662,050 705,504 370,482 
Total net revenues$3,734,635 $3,952,584 $2,471,941 
Gross profit
Clear Aligner$2,228,170 $2,474,373 $1,532,130 
Systems and Services405,605 460,982 231,105 
Total gross profit$2,633,775 $2,935,355 $1,763,235 
Income from operations
Clear Aligner$1,134,420 $1,325,866 $768,045 
Systems and Services179,765 259,127 96,052 
Unallocated corporate expenses(671,590)(608,593)(476,926)
Total income from operations$642,595 $976,400 $387,171 
Stock-based compensation
Clear Aligner$14,816 $10,648 $8,975 
Systems and Services994 705 734 
Unallocated corporate expenses117,557 102,983 88,718 
Total stock-based compensation$133,367 $114,336 $98,427 
Depreciation and amortization
Clear Aligner$57,888 $50,723 $41,371 
Systems and Services28,300 21,581 16,798 
Unallocated corporate expenses39,605 36,425 35,369 
Total depreciation and amortization$125,793 $108,729 $93,538 


The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands):
Year Ended December 31,
202220212020
Total segment income from operations$1,314,185 $1,584,993 $864,097 
Unallocated corporate expenses(671,590)(608,593)(476,926)
Total income from operations642,595 976,400 387,171 
Interest income5,367 3,103 3,125 
Other income (expense), net(48,905)32,920 (11,347)
Net income before provision for (benefit from) income taxes $599,057 $1,012,423 $378,949 

Geographical Information

Net revenues are presented below by geographic area (in thousands): 
 Year Ended December 31,
 202220212020
Net revenues 1:
U.S.$1,660,045 $1,724,296 $1,099,564 
Switzerland1,216,094 1,353,229 809,080 
Other International858,496 875,059 563,297 
Total net revenues$3,734,635 $3,952,584 $2,471,941 
1    Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.
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):
 December 31,
 20222021
Long-lived assets 1:
Switzerland$532,921 $444,205 
U.S.214,804 210,582 
China118,669 125,346 
Other International484,341 423,050 
Total long-lived assets$1,350,735 $1,203,183 
1    Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.