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, | | 2018 | | 2017 | | 2016 | Net revenues | | | | | | Clear Aligner | $ | 1,691,467 |
| | $ | 1,309,262 |
| | $ | 958,327 |
| Scanner | 275,025 |
| | 164,151 |
| | 121,547 |
| Total net revenues | $ | 1,966,492 |
| | $ | 1,473,413 |
|
| $ | 1,079,874 |
| Gross profit | | | | | | Clear Aligner | $ | 1,280,495 |
| | $ | 1,019,563 |
| | $ | 747,494 |
| Scanner | 167,372 |
| | 97,384 |
| | 67,800 |
| Total gross profit | $ | 1,447,867 |
| | $ | 1,116,947 |
| | $ | 815,294 |
| Income from operations | | | | | | Clear Aligner | $ | 712,439 |
| | $ | 564,648 |
| | $ | 411,817 |
| Scanner | 98,998 |
| | 49,613 |
| | 37,498 |
| Unallocated corporate expenses | (344,873 | ) | | (260,650 | ) | | (200,394 | ) | Total income from operations | $ | 466,564 |
| | $ | 353,611 |
| | $ | 248,921 |
| Depreciation and amortization | | | | | | Clear Aligner | $ | 29,001 |
| | $ | 21,581 |
| | $ | 13,742 |
| Scanner | 4,965 |
| | 4,385 |
| | 3,871 |
| Unallocated corporate expenses | 20,761 |
| | 11,773 |
| | 6,389 |
| Total depreciation and amortization | $ | 54,727 |
| | $ | 37,739 |
| | $ | 24,002 |
|
The following table reconciles total segment income from operations in the table above to net income before provision for income taxes and equity in losses of investee (in thousands): | | | | | | | | | | | | | | For the Year Ended December 31, | | 2018 | | 2017 | | 2016 | Total segment income from operations | $ | 811,437 |
| | $ | 614,261 |
| | $ | 449,315 |
| Unallocated corporate expenses | (344,873 | ) | | (260,650 | ) | | (200,394 | ) | Total income from operations | 466,564 |
| | 353,611 |
| | 248,921 |
| Interest income | 8,576 |
| | 6,948 |
| | 4,213 |
| Other income (expense), net | (8,489 | ) | | 4,240 |
| | (10,568 | ) | Net income before provision for income taxes and equity in losses of investee | $ | 466,651 |
| | $ | 364,799 |
| | $ | 242,566 |
|
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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, | | 2018 | | 2017 | | 2016 | Net revenues (1): | | | | | | United States (2) | $ | 1,023,559 |
| | $ | 836,200 |
| | $ | 692,254 |
| The Netherlands (2) | 610,039 |
| | 456,108 |
| | 286,911 |
| China | 155,790 |
| | 81,661 |
| | 46,480 |
| Other International | 177,104 |
| | 99,444 |
| | 54,229 |
| Total net revenues | $ | 1,966,492 |
| | $ | 1,473,413 |
| | $ | 1,079,874 |
|
| | (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, | | 2018 | | 2017 | Long-lived assets (3): | | | | The Netherlands | $ | 206,679 |
| | $ | 143,673 |
| United States | 139,239 |
| | 128,171 |
| Costa Rica | 80,218 |
| | 30,738 |
| China | 36,249 |
| | 5,480 |
| Mexico | 33,240 |
| | 25,090 |
| Other International | 25,704 |
| | 15,641 |
| Total long-lived assets | $ | 521,329 |
| | $ | 348,793 |
|
(3) Long-lived assets are attributed to countries based on entity that owns the assets.
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