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Segments and Geographical Information
 9 Months Ended
Sep. 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 ("CODM"), 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
September 30,		Nine Months Ended
September 30,
2024202320242023
Net revenues
Clear Aligner$786,844 $794,939 $2,435,833 $2,417,417 
Systems and Services191,028 165,275 567,960 488,117 
Total net revenues$977,872 $960,214 $3,003,793 $2,905,534 
Gross profit
Clear Aligner$552,841 $562,331 $1,720,524 $1,731,721 
Systems and Services128,933 100,745 381,694 305,618 
Total gross profit$681,774 $663,076 $2,102,218 $2,037,339 
Income from operations
Clear Aligner$276,319 $296,319 $862,183 $879,933 
Systems and Services68,744 44,975 189,227 132,600 
Unallocated corporate expenses(182,765)(174,948)(587,931)(540,740)
Total income from operations$162,298 $166,346 $463,479 $471,793 
Stock-based compensation
Clear Aligner$7,648 $5,772 $20,031 $14,917 
Systems and Services427 366 1,207 950 
Unallocated corporate expenses40,964 33,464 113,617 99,330 
Total stock-based compensation$49,039 $39,602 $134,855 $115,197 
Depreciation and amortization
Clear Aligner
$17,971 $17,737 $49,027 $50,725 
Systems and Services
8,099 7,827 23,007 23,716 
Unallocated corporate expenses
11,723 11,466 34,871 34,228 
Total depreciation and amortization$37,793 $37,030 $106,905 $108,669 

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
September 30,		Nine Months Ended
September 30,
2024202320242023
Total segment income from operations$345,063 $341,294 $1,051,410 $1,012,533 
Unallocated corporate expenses(182,765)(174,948)(587,931)(540,740)
Total income from operations162,298 166,346 463,479 471,793 
Interest income4,003 5,522 11,696 12,280 
Other income (expense), net(371)(9,757)(6,993)(15,749)
Net income before provision for income taxes$165,930 $162,111 $468,182 $468,324 

Our CODM 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
September 30,		Nine Months Ended
September 30,
 2024202320242023
Net revenues 1:
U.S. $421,204 $421,272 $1,291,838 $1,262,008 
Switzerland216,638 259,587 739,342 913,724 
Other International 340,030 279,355 972,613 729,802 
Total net revenues$977,872 $960,214 $3,003,793 $2,905,534 
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):
 September 30,
2024		December 31,
2023
Long-lived assets 1:
Switzerland$580,428 $575,432 
U.S. 203,772 210,275 
Other International627,306 623,155 
Total long-lived assets$1,411,506 $1,408,862 
1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.