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Segments and Geographical Information
 12 Months Ended
Dec. 31, 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 reportable segment. Certain operating expenses are not directly attributable to a reportable segment and must be allocated. Each allocation is measured differently based on the nature of the cost being allocated. Certain other operating expense are not specifically allocated to segment income from operations and generally include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, other separately managed general and administrative costs outside the reportable segments and restructuring costs. 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):
 Year Ended December 31,
202320222021
Net revenues
Clear Aligner$3,199,329 $3,072,585 $3,247,080 
Systems and Services662,931 662,050 705,504 
Total net revenues$3,862,260 $3,734,635 $3,952,584 
Gross profit
Clear Aligner$2,288,038 $2,228,170 $2,474,373 
Systems and Services418,825 405,605 460,982 
Total gross profit$2,706,863 $2,633,775 $2,935,355 
Income from operations
Clear Aligner$1,182,257 $1,134,420 $1,325,866 
Systems and Services191,355 179,765 259,127 
Unallocated corporate expenses(730,274)(671,590)(608,593)
Total income from operations$643,338 $642,595 $976,400 
Stock-based compensation
Clear Aligner$13,963 $14,816 $10,648 
Systems and Services1,293 994 705 
Unallocated corporate expenses138,770 117,557 102,983 
Total stock-based compensation$154,026 $133,367 $114,336 
Depreciation and amortization
Clear Aligner$64,781 $57,888 $50,723 
Systems and Services31,518 28,300 21,581 
Unallocated corporate expenses46,102 39,605 36,425 
Total depreciation and amortization$142,401 $125,793 $108,729 


The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands):
Year Ended December 31,
202320222021
Total segment income from operations$1,373,612 $1,314,185 $1,584,993 
Unallocated corporate expenses(730,274)(671,590)(608,593)
Total income from operations643,338 642,595 976,400 
Interest income17,258 5,367 3,103 
Other income (expense), net(19,392)(48,905)32,920 
Net income before provision for (benefit from) income taxes $641,204 $599,057 $1,012,423 

Our Chief Operating Decision Maker does not regularly review total assets at the reportable segment level; however, we have provided geographical information related to our long-lived assets below.

Geographical Information
Net revenues are presented below by geographic area (in thousands): 
 Year Ended December 31,
 202320222021
Net revenues 1:
U.S.$1,665,925 $1,660,045 $1,724,296 
Switzerland1,168,320 1,216,094 1,353,229 
Other International1,028,015 858,496 875,059 
Total net revenues$3,862,260 $3,734,635 $3,952,584 
1    Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

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):
 December 31,
 20232022
Long-lived assets 1:
Switzerland$575,432 $532,921 
U.S.210,275 214,804 
Other International623,155 603,010 
Total long-lived assets$1,408,862 $1,350,735 
1    Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.