Business Segment and Geographic Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segment and Geographic Information

9. Business Segment and Geographic Information

Reportable Segments

An operating segment is identified as a component of a business that has discrete financial information available and for which the chief operating decision maker must decide the level of resource allocation. In addition, the guidance for segment reporting indicates certain quantitative materiality thresholds. None of the components of our business meet the definition of an operating segment.

We currently consider our operations to be, and manage our business globally within, one reportable segment, which is consistent with how our President and Chief Executive Officer, who is our chief operating decision maker, reviews our business, makes investment and resource allocation decisions, and assesses operating performance.

Disaggregation of Revenue

We disaggregate revenue by geographic region and by major sales channel. We have determined that disaggregating revenue into these categories achieves the ASC Topic 606 disclosure objectives of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Revenue by geographic region

During the three and six months ended June 30, 2023 and June 30, 2022, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The following table sets forth revenue by our two primary geographical markets, the United States and International, based on the geographic location to which we deliver the components, for the periods shown:

	Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
(In millions)	Amount		% of Total		Amount		% of Total
United States	$	616.6	71	%	$	511.0	73	%
International	254.7		29	%	185.2		27	%
Total revenue	$	871.3	100	%	$	696.2	100	%
	Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
(In millions)	Amount		% of Total		Amount		% of Total
United States	$	1,142.6	71	%	$	962.2	73	%
International	470.2		29	%	362.8		27	%
Total revenue	$	1,612.8	100	%	$	1,325.0	100	%

Revenue by customer sales channel

We sell our CGM systems through a direct sales organization and through distribution arrangements that allow distributors to sell our products. The following table sets forth revenue by major sales channel for the periods shown:

	Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
(In millions)	Amount		% of Total		Amount		% of Total
Distributor	$	738.8	85	%	$	585.1	84	%
Direct	132.5		15	%	111.1		16	%
Total revenue	$	871.3	100	%	$	696.2	100	%
	Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
(In millions)	Amount		% of Total		Amount		% of Total
Distributor	$	1,357.7	84	%	$	1,112.2	84	%
Direct	255.1		16	%	212.8		16	%
Total revenue	$	1,612.8	100	%	$	1,325.0	100	%