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Business Segment and Geographic Information
9 Months Ended
Sep. 30, 2022
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.
Dexcom is domiciled in the United States. We sell our CGM systems through a direct sales force in the North America, Asia Pacific, Europe, and the Middle East, 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.
Revenue by geographic region
During the three and nine months ended September 30, 2022 and September 30, 2021, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The table below sets forth revenue 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 components. The majority of our long-lived assets are located in the United States.
Three Months Ended
September 30, 2022
Three Months Ended
September 30, 2021
(Dollars in millions)Amount% of TotalAmount% of Total
United States$573.4 75 %$489.6 75 %
Outside of the United States196.2 25 %160.6 25 %
Total revenue$769.6 100 %$650.2 100 %
Nine Months Ended
September 30, 2022
Nine Months Ended
September 30, 2021
(Dollars in millions)Amount% of TotalAmount% of Total
United States$1,535.6 73 %$1,332.3 76 %
Outside of the United States559.0 27 %418.0 24 %
Total revenue$2,094.6 100 %$1,750.3 100 %
Revenue by customer sales channel
The following table sets forth revenue by major sales channel for the three and nine months ended September 30, 2022 and September 30, 2021:
Three Months Ended
September 30, 2022
Three Months Ended
September 30, 2021
(Dollars in millions)Amount% of TotalAmount% of Total
Distributor$656.2 85 %$552.3 85 %
Direct113.4 15 %97.9 15 %
Total revenue$769.6 100 %$650.2 100 %
Nine Months Ended
September 30, 2022
Nine Months Ended
September 30, 2021
(Dollars in millions)Amount% of TotalAmount% of Total
Distributor$1,768.4 84 %$1,438.9 82 %
Direct326.2 16 %311.4 18 %
Total revenue$2,094.6 100 %$1,750.3 100 %