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Segments and Geographical Information
 6 Months Ended
Jun. 30, 2023
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 and restructuring costs. We group our operations into two reportable segments (i) Clear Aligner segment and (ii) 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,
2023202220232022
Net revenues
Clear Aligner$832,674 $798,398 $1,622,478 $1,608,094 
Systems and Services169,499 171,155 322,842 334,678 
Total net revenues$1,002,173 $969,553 $1,945,320 $1,942,772 
Gross profit
Clear Aligner$603,251 $585,245 $1,169,390 $1,190,941 
Systems and Services110,358 102,314 204,873 205,964 
Total gross profit$713,609 $687,559 $1,374,263 $1,396,905 
Income from operations
Clear Aligner$306,093 $307,209 $583,614 $619,928 
Systems and Services52,049 45,599 87,625 96,398 
Unallocated corporate expenses(186,211)(164,612)(365,792)(330,048)
Total income from operations$171,931 $188,196 $305,447 $386,278 
Stock-based compensation
Clear Aligner$4,491 $3,001 $9,145 $5,855 
Systems and Services263 236 584 450 
Unallocated corporate expenses33,106 30,903 65,866 59,456 
Total stock-based compensation$37,860 $34,140 $75,595 $65,761 
Depreciation and amortization
Clear Aligner
$16,590 $14,029 $32,988 $27,796 
Systems and Services
7,743 6,776 15,889 13,698 
Unallocated corporate expenses
11,486 9,476 22,762 18,413 
Total depreciation and amortization$35,819 $30,281 $71,639 $59,907 

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,
2023202220232022
Total segment income from operations$358,142 $352,808 $671,239 $716,326 
Unallocated corporate expenses(186,211)(164,612)(365,792)(330,048)
Total income from operations171,931 188,196 305,447 386,278 
Interest income4,421 245 6,758 922 
Other income (expense), net(4,763)(14,832)(5,992)(26,105)
Net income before provision for income taxes$171,589 $173,609 $306,213 $361,095 
Geographical Information

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

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Net revenues 1:
U.S. $429,598 $430,053 $840,736 $850,973 
Switzerland341,006 330,351 654,137 662,090 
Other International 231,569 209,149 450,447 429,709 
Total net revenues$1,002,173 $969,553 $1,945,320 $1,942,772 

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,
2023		December 31, 2022
Long-lived assets 1:
Switzerland$566,755 $532,921 
U.S. 208,822 214,804 
Other International2
629,346 603,010 
Total long-lived assets$1,404,923 $1,350,735 
 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.
2 Certain prior period immaterial amounts have been reclassified to conform to current presentation.