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): | | | | | | | | | | | | | | For the Year Ended December 31, | Net Revenues | 2016 | | 2015 | | 2014 | Clear Aligner | $ | 958,327 |
| | $ | 800,186 |
| | $ | 712,549 |
| Scanner | 121,547 |
| | 45,300 |
| | 49,104 |
| Total net revenues | $ | 1,079,874 |
| | $ | 845,486 |
|
| $ | 761,653 |
| Gross Profit | | | | | | Clear Aligner | $ | 747,494 |
| | $ | 628,187 |
| | $ | 562,889 |
| Scanner | 67,800 |
| | 11,923 |
| | 15,554 |
| Total gross profit | $ | 815,294 |
| | $ | 640,110 |
| | $ | 578,443 |
| Income from Operations | | | | | | Clear Aligner | $ | 411,817 |
| | $ | 371,113 |
| | $ | 341,055 |
| Scanner | 37,498 |
| | (12,337 | ) | | (8,483 | ) | Unallocated corporate expenses | (200,394 | ) | | (170,142 | ) | | (138,996 | ) | Total income from operations | $ | 248,921 |
| | $ | 188,634 |
| | $ | 193,576 |
| Depreciation and Amortization | | | | | | Clear Aligner | $ | 13,742 |
| | $ | 9,842 |
| | $ | 8,706 |
| Scanner | 3,871 |
| | 3,839 |
| | 4,498 |
| Unallocated corporate expenses | 6,389 |
| | 4,323 |
| | 4,652 |
| Total depreciation and amortization | $ | 24,002 |
| | $ | 18,004 |
| | $ | 17,856 |
|
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: | | | | | | | | | | | | | | | For the Year Ended December 31, | | | 2016 | | 2015 | | 2014 | | Total segment income from operations | $ | 449,315 |
| | $ | 358,776 |
| | $ | 332,572 |
| | Unallocated corporate expenses | (200,394 | ) | | (170,142 | ) | | (138,996 | ) | | Total income from operations | 248,921 |
| | 188,634 |
| | 193,576 |
| | Interest and other income (expense), net | (6,355 | ) | | (2,533 | ) | | (3,207 | ) | | Net income before provision for income taxes and equity losses of investee | $ | 242,566 |
| | $ | 186,101 |
| | $ | 190,369 |
| |
|
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas |
Net revenues are presented below by geographic area (in thousands): | | | | | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | 2014 | Net revenues (1): | | | | | | United States (2) | $ | 692,254 |
| | $ | 585,874 |
| | $ | 532,569 |
| The Netherlands (2) | 291,053 |
| | 167,128 |
| | 156,817 |
| Other International | 96,567 |
| | 92,484 |
| | 72,267 |
| Total net revenues | $ | 1,079,874 |
| | $ | 845,486 |
| | $ | 761,653 |
|
| | (1) | Net revenues are attributed to countries based on location of where revenue is recognized. |
(2) During 2016, we implemented a new international corporate structure. This changed the structure of our international procurement and sales operations.
Tangible long-lived assets are presented below by geographic area (in thousands): | | | | | | | | | | As of December 31, | | 2016 | | 2015 | Long-lived assets (1): | | | | The Netherlands (2) | $ | 111,515 |
| | $ | 486 |
| United States (2) | 43,278 |
| | 112,632 |
| Mexico | 17,918 |
| | 15,422 |
| Other International | 2,456 |
| | 7,933 |
| Total long-lived assets | $ | 175,167 |
| | $ | 136,473 |
|
(1) Long-lived assets are attributed to countries based on entity that owns the assets. (2) As a result of the new international corporate structure changes, approximately $92.0 million in long-lived assets were transferred from the U.S. to our Netherlands entity in 2016.
|