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Segments and Geographical Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segments and Geographical Information Segments and Geographical Information
Segment Information

We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, and other separately managed general and administrative costs outside the operating segments. We group our operations into two reportable segments: Clear Aligner segment and Imaging Systems and CAD/CAM services (“Systems and Services”) segment.
Summarized financial information by segment is as follows (in thousands):

 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net revenues
Clear Aligner$798,398 $840,959 $1,608,094 $1,594,228 
Systems and Services171,155 169,849 334,678 311,351 
Total net revenues$969,553 $1,010,808 $1,942,772 $1,905,579 
Gross profit
Clear Aligner$585,245 $646,665 $1,190,941 $1,231,199 
Systems and Services102,314 111,873 205,964 204,437 
Total gross profit$687,559 $758,538 $1,396,905 $1,435,636 
Income from operations
Clear Aligner$307,209 $347,626 $619,928 $675,091 
Systems and Services45,599 64,675 96,398 111,903 
Unallocated corporate expenses(164,612)(143,399)(330,048)(292,646)
Total income from operations$188,196 $268,902 $386,278 $494,348 
Stock-based compensation
Clear Aligner$3,001 $2,632 $5,855 $4,926 
Systems and Services236 174 450 345 
Unallocated corporate expenses30,903 26,049 59,456 50,825 
Total stock-based compensation$34,140 $28,855 $65,761 $56,096 
Depreciation and amortization
Clear Aligner
$14,029 $12,170 $27,796 $23,290 
Systems and Services
6,776 4,622 13,698 9,167 
Unallocated corporate expenses
9,476 9,100 18,413 19,070 
Total depreciation and amortization$30,281 $25,892 $59,907 $51,527 

The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands):


 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Total segment income from operations$352,808 $412,301 $716,326 $786,994 
Unallocated corporate expenses(164,612)(143,399)(330,048)(292,646)
Total income from operations188,196 268,902 386,278 494,348 
Interest income245 383 922 2,026 
Other income (expense), net(14,832)(483)(26,105)34,049 
Net income before provision for income taxes$173,609 $268,802 $361,095 $530,423 
Geographical Information

Net revenues are presented below by geographic area (in thousands):

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2022202120222021
Net revenues 1:
U.S. $430,053 $434,398 $850,973 $817,400 
Switzerland330,351 366,334 662,090 681,784 
Other International 209,149 210,076 429,709 406,395 
Total net revenues$969,553 $1,010,808 $1,942,772 $1,905,579 

1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):
 June 30,
2022		December 31, 2021
Long-lived assets 1:
Switzerland$499,626 $444,205 
U.S. 212,071 210,582 
China123,180 125,346 
Other International465,479 423,050 
Total long-lived assets$1,300,356 $1,203,183 
 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.