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Segments and Geographical Information
 6 Months Ended
Jun. 30, 2024
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, our Chief Executive Officer, 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):

 Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Net revenues
Clear Aligner$831,738 $832,674 $1,648,989 $1,622,478 
Systems and Services196,752 169,499 376,932 322,842 
Total net revenues$1,028,490 $1,002,173 $2,025,921 $1,945,320 
Gross profit
Clear Aligner$588,537 $603,251 $1,167,683 $1,169,390 
Systems and Services134,091 110,358 252,761 204,873 
Total gross profit$722,628 $713,609 $1,420,444 $1,374,263 
Income from operations
Clear Aligner$299,626 $306,093 $585,864 $583,614 
Systems and Services70,790 52,049 120,483 87,625 
Unallocated corporate expenses(223,370)(186,211)(405,166)(365,792)
Total income from operations$147,046 $171,931 $301,181 $305,447 
Stock-based compensation
Clear Aligner$8,619 $4,491 $12,383 $9,145 
Systems and Services421 263 780 584 
Unallocated corporate expenses37,988 33,106 72,653 65,866 
Total stock-based compensation$47,028 $37,860 $85,816 $75,595 
Depreciation and amortization
Clear Aligner
$16,623 $16,590 $31,056 $32,988 
Systems and Services
8,070 7,743 14,908 15,889 
Unallocated corporate expenses
11,473 11,486 23,148 22,762 
Total depreciation and amortization$36,166 $35,819 $69,112 $71,639 

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,
2024202320242023
Total segment income from operations$370,416 $358,142 $706,347 $671,239 
Unallocated corporate expenses(223,370)(186,211)(405,166)(365,792)
Total income from operations147,046 171,931 301,181 305,447 
Interest income3,301 4,421 7,693 6,758 
Other income (expense), net(6,481)(4,763)(6,622)(5,992)
Net income before provision for income taxes$143,866 $171,589 $302,252 $306,213 

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):

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Net revenues 1:
U.S. $438,533 $429,598 $870,634 $840,736 
Switzerland270,946 341,006 522,704 654,137 
Other International 319,011 231,569 632,583 450,447 
Total net revenues$1,028,490 $1,002,173 $2,025,921 $1,945,320 
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,
2024		December 31, 2023
Long-lived assets 1:
Switzerland$569,955 $575,432 
U.S. 211,373 210,275 
Other International618,672 623,155 
Total long-lived assets$1,400,000 $1,408,862 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.