Segments and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Summarized financial information by segment is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net revenues
Clear Aligner	$	832,674	$	798,398	$	1,622,478	$	1,608,094
Systems and Services	169,499		171,155		322,842		334,678
Total net revenues	$	1,002,173	$	969,553	$	1,945,320	$	1,942,772
Gross profit
Clear Aligner	$	603,251	$	585,245	$	1,169,390	$	1,190,941
Systems and Services	110,358		102,314		204,873		205,964
Total gross profit	$	713,609	$	687,559	$	1,374,263	$	1,396,905
Income from operations
Clear Aligner	$	306,093	$	307,209	$	583,614	$	619,928
Systems and Services	52,049		45,599		87,625		96,398
Unallocated corporate expenses	(186,211)		(164,612)		(365,792)		(330,048)
Total income from operations	$	171,931	$	188,196	$	305,447	$	386,278
Stock-based compensation
Clear Aligner	$	4,491	$	3,001	$	9,145	$	5,855
Systems and Services	263		236		584		450
Unallocated corporate expenses	33,106		30,903		65,866		59,456
Total stock-based compensation	$	37,860	$	34,140	$	75,595	$	65,761
Depreciation and amortization
Clear Aligner	$	16,590	$	14,029	$	32,988	$	27,796
Systems and Services	7,743		6,776		15,889		13,698
Unallocated corporate expenses	11,486		9,476		22,762		18,413
Total depreciation and amortization	$	35,819	$	30,281	$	71,639	$	59,907

The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Total segment income from operations	$	358,142	$	352,808	$	671,239	$	716,326
Unallocated corporate expenses	(186,211)		(164,612)		(365,792)		(330,048)
Total income from operations	171,931		188,196		305,447		386,278
Interest income	4,421		245		6,758		922
Other income (expense), net	(4,763)		(14,832)		(5,992)		(26,105)
Net income before provision for income taxes	$	171,589	$	173,609	$	306,213	$	361,095

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,
	2023		2022		2023		2022
Net revenues 1:
U.S.	$	429,598	$	430,053	$	840,736	$	850,973
Switzerland	341,006		330,351		654,137		662,090
Other International	231,569		209,149		450,447		429,709
Total net revenues	$	1,002,173	$	969,553	$	1,945,320	$	1,942,772

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):

	June 30, 2023		December 31, 2022
Long-lived assets 1:
Switzerland	$	566,755	$	532,921
U.S.	208,822		214,804
Other International2	629,346		603,010
Total long-lived assets	$	1,404,923	$	1,350,735

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

2 Certain prior period immaterial amounts have been reclassified to conform to current presentation.