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Business Segment and Geographic Information
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Business Segment and Geographic Information
8. 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
DexCom is domiciled in the United States. We sell our CGM systems through a direct sales force in the United States, Canada and some countries in Europe, and through distribution arrangements in the United States, and certain countries in Africa, Asia, Europe, Latin America, and the Middle East, as well as Australia, Canada, and New Zealand. We disaggregate our revenue from contracts by geography and by major sales channel as we believe they best depict how the nature, amount and timing of revenues and cash flows are affected by economic factors.
Revenues by geographic region
During the three and nine months ended September 30, 2020 and 2019, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The table below sets forth revenues for the periods shown by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the product. The majority of our long-lived assets are located in the United States.
Three Months Ended
September 30, 2020
Three Months Ended
September 30, 2019
(Dollars in millions)Amount% of TotalAmount% of Total
United States$398.6 80 %$308.8 78 %
Outside of the United States102.3 20 %87.5 22 %
Total$500.9 100 %$396.3 100 %
Nine Months Ended
September 30, 2020
Nine Months Ended
September 30, 2019
(Dollars in millions)Amount% of TotalAmount% of Total
United States $1,058.0 78 %$785.6 78 %
Outside of the United States299.8 22 %227.6 22 %
Total revenues$1,357.8 100 %$1,013.2 100 %
Revenues by customer sales channel
The following table sets forth revenues by major sales channel for the periods shown:
Three Months Ended
September 30, 2020
Three Months Ended
September 30, 2019
(Dollars in millions)Amount% of TotalAmount% of Total
Distributor$382.4 76 %$270.4 68 %
Direct118.5 24 %125.9 32 %
Total$500.9 100 %$396.3 100 %
Nine Months Ended
September 30, 2020
Nine Months Ended
September 30, 2019
(Dollars in millions)Amount% of TotalAmount% of Total
Distributor$1,000.2 74 %$680.0 67 %
Direct357.6 26 %333.2 33 %
Total$1,357.8 100 %$1,013.2 100 %