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 | 2017 | | 2016 | | 2015 | Clear Aligner | $ | 1,309,262 |
| | $ | 958,327 |
| | $ | 800,186 |
| Scanner | 164,151 |
| | 121,547 |
| | 45,300 |
| Total net revenues | $ | 1,473,413 |
| | $ | 1,079,874 |
|
| $ | 845,486 |
| Gross profit | | | | | | Clear Aligner | $ | 1,019,563 |
| | $ | 747,494 |
| | $ | 628,187 |
| Scanner | 97,384 |
| | 67,800 |
| | 11,923 |
| Total gross profit | $ | 1,116,947 |
| | $ | 815,294 |
| | $ | 640,110 |
| Income from operations | | | | | | Clear Aligner | $ | 564,648 |
| | $ | 411,817 |
| | $ | 371,113 |
| Scanner | 49,613 |
| | 37,498 |
| | (12,337 | ) | Unallocated corporate expenses | (260,650 | ) | | (200,394 | ) | | (170,142 | ) | Total income from operations | $ | 353,611 |
| | $ | 248,921 |
| | $ | 188,634 |
| Depreciation and amortization | | | | | | Clear Aligner | $ | 21,581 |
| | $ | 13,742 |
| | $ | 9,842 |
| Scanner | 4,385 |
| | 3,871 |
| | 3,839 |
| Unallocated corporate expenses | 11,773 |
| | 6,389 |
| | 4,323 |
| Total depreciation and amortization | $ | 37,739 |
| | $ | 24,002 |
| | $ | 18,004 |
|
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 (in thousands): | | | | | | | | | | | | | | | For the Year Ended December 31, | | | 2017 | | 2016 | | 2015 | | Total segment income from operations | $ | 614,261 |
| | $ | 449,315 |
| | $ | 358,776 |
| | Unallocated corporate expenses | (260,650 | ) | | (200,394 | ) | | (170,142 | ) | | Total income from operations | 353,611 |
| | 248,921 |
| | 188,634 |
| | Interest and other income (expense), net | 11,188 |
| | (6,355 | ) | | (2,533 | ) | | Net income before provision for income taxes and equity losses of investee | $ | 364,799 |
| | $ | 242,566 |
| | $ | 186,101 |
| |
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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, | | 2017 | | 2016 | | 2015 | Net revenues (1): | | | | | | United States (2) | $ | 836,200 |
| | $ | 692,254 |
| | $ | 585,874 |
| The Netherlands (2) | 456,108 |
| | 286,911 |
| | 167,128 |
| Other International | 181,105 |
| | 100,709 |
| | 92,484 |
| Total net revenues | $ | 1,473,413 |
| | $ | 1,079,874 |
| | $ | 845,486 |
|
| | (1) | Net revenues are attributed to countries based on location of where revenue is recognized. |
(2) Effective July 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, | | 2017 | | 2016 | Long-lived assets (1): | | | | The Netherlands | $ | 143,673 |
| | $ | 104,039 |
| United States | 128,171 |
| | 43,278 |
| Costa Rica | 30,738 |
| | 2,657 |
| Mexico | 25,090 |
| | 17,918 |
| China | 5,480 |
| | 461 |
| Other International | 15,641 |
| | 6,814 |
| Total long-lived assets | $ | 348,793 |
| | $ | 175,167 |
|
(1) Long-lived assets are attributed to countries based on entity that owns the assets.
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