Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Feb. 18, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Trading Symbol	ALGN
Entity Registrant Name	ALIGN TECHNOLOGY INC
Entity Central Index Key	0001097149
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		76,878,090
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 1,101,023,930
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Net revenues:

Invisalign (1)

$ 366,955

^[1]

$ 295,215

^[1]

$ 285,798

^[1]

Non-case

20,171

17,118

18,178

Total net revenues

387,126

312,333

303,976

Cost of revenues:

Invisalign

74,418

71,530

69,536

Non-case

9,291

7,311

9,314

Total cost of revenues

83,709

78,841

78,850

Gross profit

303,417

233,492

225,126

Operating expenses:

Sales and marketing

114,013

112,542

115,062

General and administrative

64,790

61,718

62,154

Research and development

25,997

22,252

26,165

Litigation settlement costs

4,549

69,673

Insurance settlement

(8,666)

Restructurings

1,319

6,231

Total operating expenses

200,683

267,504

209,612

Profit (loss) from operations

102,734

(34,012)

15,514

Interest income

555

579

3,052

Interest expense

(19)

(85)

(24)

Other expense

(1,267)

(375)

(1,466)

Net profit (loss) before provision for income taxes

102,003

(33,893)

17,076

Provision for (benefit from) income taxes

27,750

(2,624)

(62,911)

Net profit (loss)

$ 74,253

$ (31,269)

$ 79,987

Net profit (loss) per share:

Basic

$ 0.98

$ (0.45)

$ 1.20

Diluted

$ 0.95

$ (0.45)

$ 1.18

Shares used in computing net profit (loss) per share:

Basic

75,825

69,094

66,812

Diluted

78,080

69,094

68,064

[1]	Net revenues for the year ended December 31, 2010 includes a $14.3 million release of previously deferred revenue for Invisalign Teen replacement aligners.

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 294,664	$ 166,487
Marketable securities, short-term	8,615	19,978
Accounts receivable, net of allowance for doubtful accounts of $735 and $1,033, respectively	65,430	54,537
Inventories	2,544	2,046
Prepaid expenses and other current assets	17,358	18,251
Total current assets	388,611	261,299
Marketable securities, long-term	9,089
Property and equipment, net	30,684	24,971
Goodwill	478	478
Intangible assets, net	2,188	4,988
Deferred tax asset	42,439	61,535
Other assets	3,454	1,969
Total assets	476,943	355,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	7,768	6,122
Accrued liabilities	51,358	42,822
Deferred revenues	33,848	32,299
Total current liabilities	92,974	81,243
Other long-term liabilities	6,222	961
Total liabilities	99,196	82,204
Commitments and contingencies (Notes 7 and 9)
Stockholders' equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)
Common stock, $0.0001 par value (200,000 shares authorized; 76,390 and 74,568 issued and outstanding, respectively)	8	7
Additional paid-in capital	555,851	525,073
Accumulated other comprehensive income, net	134	455
Accumulated deficit	(178,246)	(252,499)
Total stockholders' equity	377,747	273,036
Total liabilities and stockholders' equity	$ 476,943	$ 355,240

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 735	$ 1,033
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	76,390	74,568
Common stock, shares outstanding	76,390	74,568

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balances at Dec. 31, 2007	$ 161,154	$ 7	$ 450,140	$ 657	$ (289,650)
Balances, shares at Dec. 31, 2007		68,642
Net profit (loss)	79,987				79,987
Net change in unrealized gain (loss) from available-for sale securities	33			33
Net change in cumulative translation adjustment	(421)			(421)
Comprehensive net income (loss)	79,599
Issuance of common stock relating to employee equity compensation plans, value	10,506		10,506
Issuance of common stock relating to employee equity compensation plans, shares		1,651
Tax withholdings related to net share settlements of restricted stock units	(460)		(460)
Common stock repurchased, value	(50,138)		(38,571)		(11,567)
Common stock repurchased, shares		(4,660)
Excess tax benefit (provision) from share based payment arrangements	144		144
Stock based compensation	17,057		17,057
Acceleration of stock based compensation	678		678
Balances at Dec. 31, 2008	218,540	7	439,494	269	(221,230)
Balances, shares at Dec. 31, 2008		65,633
Net profit (loss)	(31,269)				(31,269)
Net change in unrealized gain (loss) from available-for sale securities	18			18
Net change in cumulative translation adjustment	168			168
Comprehensive net income (loss)	(31,083)
Issuance of common stock relating to employee equity compensation plans, value	8,097		8,097
Issuance of common stock relating to employee equity compensation plans, shares		1,349
Tax withholdings related to net share settlements of restricted stock units	(487)		(487)
Shares issued for litigation settlement, value	63,518		63,518
Shares issued for litigation settlement, shares		7,586
Excess tax benefit (provision) from share based payment arrangements	(637)		(637)
Stock based compensation	15,088		15,088
Acceleration of stock based compensation
Balances at Dec. 31, 2009	273,036	7	525,073	455	(252,499)
Balances, shares at Dec. 31, 2009	74,568	74,568
Net profit (loss)	74,253				74,253
Net change in unrealized gain (loss) from available-for sale securities	(19)			(19)
Net change in cumulative translation adjustment	(302)			(302)
Comprehensive net income (loss)	73,932
Issuance of common stock relating to employee equity compensation plans, value	11,822	1	11,821
Issuance of common stock relating to employee equity compensation plans, shares		1,822
Tax withholdings related to net share settlements of restricted stock units	(1,080)		(1,080)
Excess tax benefit (provision) from share based payment arrangements	3,965		3,965
Stock based compensation	16,072		16,072
Acceleration of stock based compensation
Balances at Dec. 31, 2010	$ 377,747	$ 8	$ 555,851	$ 134	$ (178,246)
Balances, shares at Dec. 31, 2010	76,390	76,390

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net profit (loss)	$ 74,253	$ (31,269)	$ 79,987
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
Deferred taxes	17,307	(2,612)	(64,608)
Depreciation and amortization	11,386	10,204	9,964
Stock-based compensation	16,072	15,088	17,057
Acceleration of stock-based compensation			678
Amortization of intangibles	2,800	2,800	2,827
Litigation settlement costs paid in stock		56,523
Amortization of prepaid royalties	827	6,165
Provision for doubtful accounts	195	708	71
Loss on retirement and disposal of fixed assets	61	37	513
Loss on impairment of fixed assets			1,712
Excess tax provision for (benefit from) share-based payment arrangements	(3,965)	637	(144)
Changes in assets and liabilities:
Accounts receivable	(12,184)	(2,586)	(7,951)
Inventories	(508)	(85)	943
Prepaid expenses and other assets	(1,212)	306	276
Accounts payable	2,612	(614)	(2,651)
Accrued and other long-term liabilities	19,705	3,336	(3,487)
Deferred revenues	2,180	15,527	4,559
Net cash provided by operating activities	129,529	74,165	39,746
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(18,031)	(7,192)	(14,334)
Proceeds from sale of property and equipment			189
Restricted cash			21
Purchase of marketable securities	(18,334)	(42,923)	(75,050)
Maturities of marketable securities	20,590	48,893	87,926
Other assets	(145)	(334)	193
Net cash used in investing activities	(15,920)	(1,556)	(1,055)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	11,822	8,097	10,506
Payments on short-term obligations		(136)	(407)
Repurchases of common stock			(50,138)
Excess tax provision for (benefit from) share-based payment arrangements	3,965	(637)	144
Employees' taxes paid upon the vesting of restricted stock units	(1,080)	(487)	(460)
Net cash provided by (used in) financing activities	14,707	6,837	(40,355)
Effect of foreign exchange rate changes on cash and cash equivalents	(139)	(59)	(355)
Net increase (decrease) in cash and cash equivalents	128,177	79,387	(2,019)
Cash and cash equivalents, beginning of year	166,487	87,100	89,119
Cash and cash equivalents, end of year	$ 294,664	$ 166,487	$ 87,100

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2010
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies *Business Description* Align Technology, Inc. ("We", "Our", or "Align") was incorporated in April 1997 and designs, manufactures and markets the Invisalign system, a proprietary method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. *Basis of presentation and preparation* The consolidated financial statements include the accounts of the Align and our wholly-owned subsidiaries after elimination of intercompany transactions and balances. Amounts within revenues and cost of revenues in prior period amounts have been reclassified to conform with the current period presentation. These reclassifications had no impact on previously reported gross profit or financial position. In connection with the preparation of the consolidated financial statements, we evaluated events subsequent to the balance sheet date through the financial statement issuance date and determined that all material transactions have been recorded and disclosed properly. *Use of estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. *Fair value of financial instruments* The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate the fair value. *Cash equivalents and marketable securities* Cash equivalents consist of highly liquid instruments purchased with an original maturity of three months or less. We invest primarily in money market funds, commercial paper, foreign and domestic corporate bonds, and United States government securities, accordingly, these investments are subject to minimal credit and market risks. Marketable securities are classified as available-for-sale and are carried at fair value. Marketable securities classified as current assets have maturities of less than one year. Unrealized gains or losses on such securities are included in accumulated other comprehensive income (loss) in stockholders' equity. Realized gains and losses from maturities of all such securities are reported in earnings and computed using the specific identification cost method. Realized gains or losses and charges for other-than-temporary declines in value, if any, on available-for-sale securities are reported in other income (expense) as incurred. We periodically evaluate these investments for other-than-temporary impairment. We measure our cash equivalents and marketable securities at fair value. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. *Foreign currency* We analyze the functional currency for each of our international subsidiaries on an annual basis, or more often if necessary, to determine if a significant change in facts and circumstances indicate that the primary economic currency has changed. Adjustments from translating certain European subsidiaries' financial statements from the local currency to the U.S. dollar are recorded as a separate component of accumulated other comprehensive income (loss), net in the stockholders' equity section of the Consolidated Balance Sheets. This foreign currency translation adjustment reflects the translation of the balance sheet at period end exchange rates, and the income statement at an average exchange rate in effect during the period. As of December 31, 2010 and 2009, we had $0.1 million and $0.5 million, respectively, in accumulated other comprehensive income, net related to the translation of our foreign subsidiaries' financial statements. See Note 15 "Comprehensive Income (Loss)" in the Notes to our Consolidated Financial Statements for additional disclosures. Our other international entities operate in a U.S. dollar functional currency environment, and therefore, the foreign currency assets and liabilities are remeasured into the U.S. dollar at current exchange rates except for non-monetary assets and liabilities which are remeasured at historical exchange rates. Revenues and expenses are generally remeasured at an average exchange rate in effect during each period. Gains or losses from foreign currency remeasurement are included in other income (expense). For the years ended December 31, 2010, 2009, and 2008, we incurred a foreign currency loss of $0.6 million, a gain of $0.3 million, and a loss of $0.7 million, respectively, which were included in other income (expense). *Certain risks and uncertainties* Our operating results depend to a significant extent on our ability to market and develop our products. The life cycles of our products are difficult to estimate due in part to the effect of future product enhancements and competition. Our inability to successfully develop and market our products as a result of competition or other factors would have a material adverse effect on our business, financial condition and results of operations. Financial instruments which potentially expose us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. We invest excess cash primarily in money market funds of major financial institutions, commercial paper, foreign and domestic corporate bonds, and certificate of deposits. If the carrying value of our investments exceeds the fair value, and the decline in fair value is deemed to be other-than-temporary, we will be required to write down the value of our investments, which could materially harm our results of operations and financial condition. Moreover, the performance of certain securities in our investment portfolio correlates with the credit condition of the U.S. financial sector. We provide credit to customers in the normal course of business. Collateral is not required for accounts receivable, but ongoing evaluations of customers' credit worthiness are performed. We maintain reserves for potential credit losses and such losses have been within management's expectations. No individual customer accounted for 10% or more of our accounts receivable at December 31, 2010 and 2009, or net revenues in 2010, 2009, and 2008. In the United States of America, the Food and Drug Administration ("FDA") regulates the design, manufacture, distribution, preclinical and clinical study, clearance and approval of medical devices. Products developed by us may require approvals or clearances from the FDA or other international regulatory agencies prior to commercialized sales. There can be no assurance that our products will receive any of the required approvals or clearances. If we were denied approval or clearance or such approval was delayed, it may have a material adverse impact on us. We have manufacturing operations located outside the United States of America. We currently rely on our manufacturing facilities in Costa Rica to prepare digital treatment plans using a sophisticated, internally developed computer-modeling program. In addition, we manufacture our clear aligners at our facility in Juarez, Mexico. Our reliance on international operations exposes us to related risks and uncertainties, including difficulties in staffing and managing international operations, including difficulties in hiring and retaining qualified personnel; controlling production volume and quality of manufacture; political, social and economic instability, particularly as a result of increased levels of violence in Juarez, Mexico; interruptions and limitations in telecommunication services; product and material transportation delays or disruption; trade restrictions and changes in tariffs; import and export license requirements and restrictions; fluctuations in foreign currency exchange rates; and potential adverse tax consequences. If any of these risks materialize, our international manufacturing operations, as well as our operating results, may be harmed. We purchase certain inventory from sole suppliers. Additionally, we rely on a limited number of hardware manufacturers. The inability of any supplier or manufacturer to fulfill our supply requirements could materially and adversely impact our future operating results. *Inventories* Inventories are valued at the lower of cost or market, with costs computed on a first-in, first-out basis. *Property, equipment, long-lived assets, and finite purchased intangible assets* Property and equipment are stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Upon sale or retirement, the asset's cost and related accumulated depreciation are removed from the general ledger and any related gains or losses are reflected in the Consolidated Statements of Operations. Maintenance and repairs are expensed as incurred. Other intangible assets primarily consist of intangible assets purchased as part of the OrthoClear Agreement. These assets are amortized using the straight-line method over their estimated useful lives of five years, reflecting the period in which the economic benefits of the assets are expected to be realized. We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net cash flows the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is calculated as the amount by which the carrying amount of the asset exceeds its fair market value which is estimated based on projected discounted future net cash flows. In 2008, management decided to no longer invest in an internally developed software tool for business process management resulting in an asset impairment charge of $1.7 million which was recorded in general and administrative expense in the fourth quarter of 2008. There were no asset impairments during 2010 or 2009. *Development costs for internal use software* Costs relating to internal use software are accounted for in accordance with the provisions of accounting for the costs of computer software developed or obtained for internal use. As of December 31, 2010 and 2009, capitalized internal use software at cost was $7.1 million and $7.0 million, respectively. The associated accumulated amortization was $6.1 million and $5.3 million as of December 31, 2010 and 2009, respectively. Capitalized software costs are amortized over the estimated useful lives of three years. *Goodwill* Goodwill represents the excess of the purchase price paid over the fair value of tangible and identifiable intangible net assets acquired in business combinations. Goodwill is reviewed annually in the fourth quarter and whenever events or circumstances occur which indicate that goodwill might be impaired. We completed our annual evaluation of goodwill during the fourth quarter of 2010 and determined that there was no impairment. *Product Warranty* We warrant our products against material defects until the Invisalign cases are completed. We accrue for product warranty in cost of revenues upon shipment of products. Product warranty costs are primarily based on historical experience as to product failures as well as current information on repair costs. Actual warranty costs could differ materially from the estimated amounts. We regularly review the accrued balances and update these balances based on historical warranty cost trends. Actual warranty costs incurred have not materially differed from those accrued. *Allowance for Doubtful Accounts* We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments. We periodically review these allowances, including an analysis of the customers' payment history and information regarding the customers' creditworthiness. Actual write-offs have not been materially differed from the estimated allowance. *Revenue Recognition* We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. Revenues are recognized from product sales, net of discounts and rebates. Service revenues related to the training of dental professionals and staff on the Invisalign treatment process is recorded when the services are completed. We enter into arrangements that involve multiple future product deliverables. Included in the price of Invisalign Full, Invisalign Teen and Invisalign Assist, we offer case refinement, which is a finishing tool used to adjust a patient's teeth to the desired final position. Case refinement may be elected by the dental professional at any time during treatment however it is generally ordered in the last stages of orthodontic treatment. We use vendor specific objective evidence of fair value to allocate revenue to the case refinement deliverable and recognize the residual revenue upon shipment. We defer the fair value of case refinement upon shipment based on a breakage factor, which is determined by sufficient historical experience of case refinement usage. Actual usage rates could differ from the historical breakage factor requiring future adjustments to revenue. Revenues are deferred for certain products that include staged delivery. Depending on the product, revenues are recognized based on usage, case completion, ratably over a subscription period or upon shipment of the final staged shipment. Invisalign Teen is delivered in a single shipment except for six replacement aligners that are included in the price of the product and may be ordered at any time throughout treatment. We use vendor specific objective evidence of fair value to allocate revenue to the replacement aligners and recognize the residual revenue upon initial shipment. Through the second quarter of 2010, we deferred 100 percent of the fair value for the six replacement aligners. This deferred revenue was subsequently recognized as the replacement aligners were shipped or when the case was completed. Management evaluated the actual usage of replacement aligners since the launch of Invisalign Teen over two years ago and believes that there is sufficient historical evidence to establish an estimated usage rate. As a result, in June 2010, we reduced deferred revenue for Invisalign Teen replacement aligners by $14.3 million to reflect the estimated usage for in-process cases and starting in July 2010, we began deferring the fair value of the replacement aligners based on the estimated usage rate. We believe that this estimated usage is reasonable and appropriate because of the relative stability of the Invisalign Teen replacement utilization since it was first offered. Although we are not expecting any material changes, we will continue to analyze the usage of replacement aligners and may adjust the estimated usage rate as necessary. The Vivera retainer includes four shipments per year, and revenue is deferred upon the first shipment and recognized as each shipment occurs. For Invisalign Assist, when the progress tracking feature is selected, aligners are shipped to the dental professional after every nine stages. For these cases, revenue is deferred upon the first staged shipment and is recognized upon shipment of the final staged shipment. We estimate and record a provision for amounts of estimated losses on sales, if any, in the period such sales occur. Provisions for discounts and rebates to customers are provided for in the same period that the related product sales are recorded based upon historical discounts and rebates. *Shipping and Handling Costs* Shipping and handling charges to customers are included in net revenues, and the associated costs incurred are recorded in cost of revenues. *Research and development* Research and development costs are expensed as incurred. *Advertising costs* The cost of advertising and media is expensed as incurred. For the years ended December 31, 2010, 2009 and 2008 advertising costs totaled $20.2 million, $18.1 million, and $18.3 million, respectively. *Income taxes* We estimate income taxes based on the various jurisdictions where business is conducted. Significant judgment is required in determining the income tax provision. Deferred tax assets and liabilities are recognized for differing treatments of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. We must then assess the likelihood that our deferred tax assets will be realized. To the extent we believe that realization is not likely, we will establish a valuation allowance. We account for the impact of an uncertain income tax position on the income tax return by recognizing the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority under the guidance of Financial Accounting Standard Board ("FASB") Accounting Standards Codification ("ASC") 740-10. Uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. *Stock-based compensation* We recognize stock-based compensation cost for only those shares ultimately expected to vest on a straight-line basis over the requisite service period of the award, net of an estimated forfeiture rate. We estimate the fair value of stock options using a Black-Scholes valuation model, which requires the input of highly subjective assumptions, including the option's expected term and stock price volatility. In addition, judgment is also required in estimating the number of stock-based awards that are expected to be forfeited. Forfeitures are estimated based on historical experience at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. See Note 10 "Stockholders' Equity" in the Notes to our Consolidated Financial Statements for additional information. *Comprehensive income (loss)* Comprehensive income (loss) includes all changes in equity during a period from non-owner sources. Comprehensive income (loss), including unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments, are reported net of their related tax effect. *Recent Accounting Pronouncements* In September 2009, FASB amended ASC 605 as summarized in Accounting Standards Update (ASU) 2009-13, "Revenue Recognition: Multiple-Deliverable Revenue Arrangements." Guidance in ASC 605-25 on revenue arrangements with multiple deliverables has been amended to require an entity to allocate revenue to deliverables in an arrangement using its best estimate of selling prices if the vendor does not have vendor-specific objective evidence or third-party evidence of selling prices, and to eliminate the use of the residual method and require the entity to allocate revenue using the relative selling price method. The new guidance also requires expanded quantitative and qualitative disclosures about revenue from arrangements with multiple deliverables. The update is effective for fiscal years beginning on or after June 15, 2010, with early adoption permitted. Adoption may either be on a prospective basis for new revenue arrangements entered into after adoption of the update, or by retrospective application. We adopted this guidance on a prospective basis effective January 1, 2011, and do not expect the adoption to have a material impact to our 2011 consolidated financial statements. In January 2010, the FASB issued ASU 2010-06, "Fair Value Measurements and Disclosures (ASC 820): Improving Disclosures about Fair Value Measurements." This update will require (1) an entity to disclose separately the amounts of significant transfers in and out of Levels 1 and 2 fair value measurements and to describe the reasons for the transfers; and (2) information about purchases, sales, issuances and settlements to be presented separately (i.e. present the activity on a gross basis rather than net) in the reconciliation for fair value measurements using significant unobservable inputs (Level 3 inputs). This guidance clarifies existing disclosure requirements for the level of disaggregation used for classes of assets and liabilities measured at fair value and require disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements using Level 2 and Level 3 inputs. The new disclosures and clarifications of existing disclosure are effective for fiscal years beginning after December 15, 2009, except for the disclosure requirements related to the purchases, sales, issuances and settlements in the rollforward activity of Level 3 fair value measurements. Those disclosure requirements are effective for fiscal years ending after December 31, 2010. The adoption of this guidance did not have a material impact to our consolidated financial statements. In February 2010, FASB issued ASU 2010-09, "Subsequent Events (ASC 855): Amendments to Certain Recognition and Disclosure Requirements." The amendments in the ASU remove the requirement for a Securities and Exchange Commission (SEC) filer to disclose a date through which subsequent events have been evaluated in both issued and revised financial statements. Revised financial statements include financial statements revised as a result of either correction of an error or retrospective application of U.S. GAAP. We adopted this guidance in the first quarter of 2010. In December 2010, FASB issued ASU 2010-28, "Intangibles—Goodwill and Other (ASC 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts." The amendments in this guidance modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist. The qualitative factors are consistent with the existing guidance and examples, which require that goodwill of a reporting unit be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For public entities, the amendments in this guidance are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. Early adoption is not permitted. The adoption of this guidance did not have a material impact to our consolidated financial statements. In December 2010, FASB issued ASU 2010-29, "Business Combinations (ASC 805): Disclosure of Supplementary Pro Forma Information for Business Combinations." This guidance clarifies that pro forma disclosures should be presented as if a business combination occurred at the beginning of the prior annual period for purposes of preparing both the current reporting period and the prior reporting period pro forma financial information. These disclosures should be accompanied by a narrative description about the nature and amount of material, nonrecurring pro forma adjustments. The new accounting guidance is effective for business combinations consummated in periods beginning after December 15, 2010, and should be applied prospectively as of the date of adoption. Early adoption is permitted. The adoption of this guidance did not have a material impact to our consolidated financial statements. Management does not believe that other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants or the SEC have a material impact on our present or future consolidated financial statements.

Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Marketable Securities and Fair Value Measurements

Marketable Securities and Fair Value Measurements

Note 2. Marketable Securities and Fair Value Measurements

We had the following investments as of December 31, 2010 (in thousands):

Short-term


December 31, 2010	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate bonds and certificate of deposit	$	3,012	$	—	$	(1	)	$	3,011
Foreign bonds		705		—		—			705
Commercial paper		1,900		—		—			1,900
Discount notes		2,998		1		—			2,999

Total	$	8,615	$	1	$	(1	)	$	8,615

Long-term


December 31, 2010	Amortized Costs		Gross Unrealized Losses			Fair Value
Corporate bonds	$	5,748	$	(11	)	$	5,737
Foreign bonds		1,307		(1	)		1,306
Agency bonds		2,047		(1	)		2,046

Total	$	9,102	$	(13	)	$	9,089

We had the following investments as of December 31, 2009 (in thousands):

Short-term


December 31, 2009	Amortized Cost		Gross Unrealized Gains		Fair Value
U.S. government notes and bonds	$	18,972	$	6	$	18,978
Corporate bonds		1,000		—		1,000

Total	$	19,972	$	6	$	19,978

As of December 31, 2010 and 2009, all short-term investments have maturity dates of less than one year. For the years ended December 31, 2010 and 2009, realized losses were immaterial.

Fair Value Measurements

We measure the fair value of our cash equivalents and marketable securities as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value:

Level 1—Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Our Level 1 assets consist of money market funds. We did not hold any Level 1 liabilities as of December 31, 2010.

Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Our Level 2 assets consist of corporate bonds, certificates of deposits, discount notes, foreign bonds, agency bonds, and commercial paper. We did not hold any Level 2 liabilities as of December 31, 2010.

Level 3—Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

We did not hold any Level 3 assets or liabilities as of December 31, 2010.

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2010 (in thousands):


Description	Balance as of December 31, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	164,722	$	164,722	$	—

Short-term investments:
Corporate bonds and certificate of deposit		3,011				3,011
Foreign bonds		705				705
Discount notes		2,999				2,999
Commercial paper		1,900				1,900

Long-term investments:
Corporate bonds		5,737				5,737
Foreign bonds		1,306				1,306
Agency bonds		2,046				2,046

	$	182,426	$	164,722	$	17,704

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

Balance Sheet Components

12 Months Ended

Dec. 31, 2010

Balance Sheet Components

Balance Sheet Components

Note 3. Balance Sheet Components

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2010		2009
Raw materials	$	1,272	$	1,079
Work in process		1,030		746
Finished goods		242		221

	$	2,544	$	2,046

Work in process includes costs to produce the Invisalign product. Finished goods primarily represent ancillary products that support the Invisalign system.

Property and equipment

Property and equipment consist of the following (in thousands):


	Useful Life (in years)		December 31,
	Useful Life (in years)		2010			2009
Clinical and manufacturing equipment		5	$	48,373		$	46,620
Computer hardware		3		16,246			13,895
Computer software		3		12,776			12,511
Furniture and fixtures		5		4,873			5,468
Leasehold improvements		Term of the lease		3,406			10,046
Construction in progress				12,784			6,437

				98,458			94,977
Less: Accumulated depreciation and amortization		N/A		(67,774	)		(70,006	)

			$	30,684		$	24,971

As of December 31, 2010, construction in progress consisted primarily of costs for capital equipment and internal use software expected to be placed in service in the next year. Depreciation and amortization was $11.4 million, $10.2 million, and $10.0 million, for the years ended December 31, 2010, 2009 and 2008, respectively.

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2010		2009
Accrued payroll and benefits	$	26,551	$	25,847
Accrued litigation settlement		4,549		—
Accrued income taxes		1,936		2,920
Accrued sales rebate		3,826		2,610
Accrued sales tax and value added tax		2,940		2,392
Accrued warranty		2,607		2,376
Accrued sales and marketing expenses		2,955		1,954
Other		5,994		4,723

	$	51,358	$	42,822

Warranty

Warranty accrual as of December 31, 2010 and 2009 consists of the following activity (in thousands):


Warranty accrual, December 31, 2008	$	2,031
Charged to cost of revenues		2,926
Actual warranty expenditures		(2,581	)

Warranty accrual, December 31, 2009		2,376

Charged to cost of revenues		2,793
Actual warranty expenditures		(2,562	)

Warranty accrual, December 31, 2010	$	2,607

Impairment of Long-Lived Assets	12 Months Ended
Impairment of Long-Lived Assets	Dec. 31, 2010
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets	Note 4. Impairment of Long-Lived Assets We evaluate the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value of a long-lived asset may not be recoverable. Our management decided to cease further investment in an internally developed software tool for business process management resulting in an asset impairment charge of $1.7 million which was recorded in general and administrative expense in the fourth quarter of 2008. The impairment indicators which management considered included the fact that this internally developed software tool was not completed and management concluded that no market participant would be willing to purchase an unfinished customized application, therefore the fair value was determined to be zero, and the capitalized amount of the software tool was written off. There were no impairment charges in 2010 and 2009.

Litigation Settlements	12 Months Ended
Litigation Settlements	Dec. 31, 2010
Litigation Settlements
Litigation Settlements	Note 6. Litigation Settlements *Ormco* On August 16, 2009, we entered into three agreements with Ormco Corporation ("Ormco"), an affiliate of Danaher Corporation ("Danaher"): a Settlement Agreement, a Stock Purchase Agreement, and a Joint Development, Marketing and Sales agreement ("Collaboration Agreement"). The Settlement Agreement ended all pending litigations between the parties, and we agreed to (1) make a cash payment of $13.2 million upon the execution of the agreement and (2) issue a total of 7.6 million non-assessable shares of common stock pursuant to the Stock Purchase Agreement. The settlement value was allocated between past infringement and future use of the patent based on total case shipments during the period of infringement. We attributed $69.7 million to past infringement claims, based on case shipments from September 9, 2003 through August 16, 2009. This was recorded as litigation settlement costs and included in our operating expenses. Additional royalty costs based on case shipments between August 17, 2009 through January 19, 2010 totaling $7.0 million were recorded as prepaid royalties as of the settlement date. We amortized $6.2 million of the prepaid royalties to cost of sales for the year ended December 31, 2009 and the remaining $0.8 million was amortized during first quarter of 2010. *OrthoClear Insurance Settlement* In June 2010, we received an $8.7 million insurance settlement over a disputed coverage under our general liability umbrella that was not previously reimbursed by our insurer related to the OrthoClear litigation. This insurance settlement was included in our 2010 operating expenses. *Leiszler* On May 10, 2010, Christopher J. Leiszler filed a complaint against us in the United States District Court for the Northern District of California. The complaint alleges that we implemented unfair and fraudulent requirements for the prescription of Invisalign through the Invisalign Proficiency Requirements. In January 2010 Dr. Leiszler's Invisalign provider status was suspended for failing to meet the Proficiency Requirements. Dr. Leiszler sued on behalf of himself and all others similarly situated. The complaint seeks a refund of the price paid to us for Invisalign training. On October 19, 2010, we entered into a memorandum of understanding to resolve this litigation, and on November 30, 2010, we executed a formal Stipulation of Settlement which must be approved by the Court. On December 23, 2010, the Court granted preliminary approval of the proposed settlement. The Court has scheduled a hearing in April 2011 to determine whether to grant final approval of the proposed settlement. Under terms of the proposed settlement, class members can be reinstated to prescribe Invisalign treatment under certain circumstances (the "Reinstatement Benefit"). Certain class members will have the option to elect a cash remedy instead of the Reinstatement Benefit. Pursuant to the proposed settlement, in January 2011, we deposited approximately $8.0 million into an escrow account to pay eligible class members who elect the cash remedy, as well as legal fees and other costs. We recorded a total litigation settlement charge of $4.5 million during 2010 for our estimated liability related to this settlement. We will continue to assess and evaluate the matter with our legal counsel and update the estimated settlement charge as appropriate as new information becomes available.

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2010
Legal Proceedings
Legal Proceedings	Note 7. Legal Proceedings *Weber* On May 18, 2007, Debra A. Weber filed a consumer class action lawsuit against us, OrthoClear, Inc. and OrthoClear Holdings, Inc. (d/b/a OrthoClear, Inc.) in Syracuse, New York, U.S. District Court. The complaint alleges two causes of action against the OrthoClear defendants and one cause of action against us for breach of contract. The cause of action against us titled "Breach of Third Party Benefit Contract" references our agreement to make Invisalign treatment available to OrthoClear patients, alleging that we failed "to provide the promised treatment to Plaintiff or any of the class members." On June 2, 2010, the Court granted our motion for summary judgment and dismissed us from the action. On June 29, 2010, Weber requested that the Court enter final judgment as to Align pursuant to Federal Rule of Civil Procedure 54(b) in order to certify Align's dismissal for immediate appeal. We filed an opposition to Weber's request on July 19, 2010, on the grounds that Weber failed to show that exceptional circumstances warranted the entry of a final judgment where fewer than all claims or parties had been dismissed. On August 20, 2010, the Court denied Weber's motion. On October 29, 2010, the Court dismissed the action against OrthoClear and OrthoClear Holdings Inc. with prejudice at the request of the remaining parties pursuant to a settlement. The Stipulation and Order of Dismissal with Prejudice entered by the Court provides that the settlement and dismissal does not affect any rights Weber may have to appeal dismissal of the action as against us. We believe there is no evidence to indicate that a reasonable possibility exists that a loss had been incurred as of December 31, 2010. *Securities Litigation* In August 2009, Plaintiff Charles Wozniak filed a lawsuit against us and our Chief Executive Officer and President, Thomas M. Prescott ("Mr. Prescott"), in District Court for the Northern District of California on behalf of a claimed class consisting of all persons or entities who purchased our common stock between January 30, 2007 and October 24, 2007. The complaint alleges that Align and Mr. Prescott violated Section 10(b) of the Securities Exchange Act of 1934 and that Mr. Prescott violated Section 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the class period, we failed to disclose that we had shifted the focus of our sales force to clearing backlog, causing a significant decrease in the number of new case starts. On November 13, 2009, the Court appointed Plumbers and Pipefitters National Pension Fund as lead plaintiff. The lead plaintiff filed an amended complaint on January 29, 2010. The amended complaint alleges that we and Mr. Prescott issued a number of purportedly false and misleading statements throughout the class period concerning the Patients First program, our production capacity, a purported backlog, and the focus of our sales force. On March 26, 2010, we and Mr. Prescott filed a motion to dismiss the amended complaint. The motion was heard by the Court on July 9, 2010, and the Court has not yet released a ruling on the motion. We believe the lawsuit to be without merit and intend to vigorously defend ourselves. We believe there is not sufficient evidence to conclude that a reasonable possibility exists that a loss had been incurred as of December 31, 2010.

Credit Facilities	12 Months Ended
Credit Facilities	Dec. 31, 2010
Credit Facilities
Credit Facilities	Note 8. Credit Facilities On December 14, 2010, we renegotiated and amended our existing credit facility with Comerica Bank. Under this revolving line of credit, we have $30.0 million of available borrowings with a maturity date of December 31, 2012. The interest rate on borrowings will range from Libor plus 1.5% to 2.0% depending upon the amount of cash we maintain at Comerica Bank. This credit facility requires a quick ratio covenant and also requires us to maintain a minimum unrestricted cash balance of $10.0 million. Additionally, in the event our unrestricted cash deposited is less than $55.0 million, the unused facility fee will increase from 0.050% per quarter to 0.125% per quarter. As of December 31, 2010, we had no outstanding borrowings under this credit facility and are in compliance with the financial covenants.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

Commitments and Contingencies

Note 9. Commitments and Contingencies

Operating leases

We rent our facilities and certain equipment and automobiles under non-cancelable operating lease arrangements. Facility leases expire at various dates through 2015 and thereafter and provides for pre-negotiated fixed rental rates during the terms of the lease.

We have a facility in San Jose, Costa Rica. The facility comprises approximately 63,000 square feet of manufacturing and office space. The monthly rent in 2010 for the Costa Rica facility is approximately $84,000. We renewed the lease in March 2008 for an additional five year term, which commenced in October 2008 and expires in September 2013.

We also have a facility in Juarez, Mexico used to manufacture clear aligners. This facility comprises of approximately 68,000 square feet of manufacturing and office space with a monthly rent in 2010 of approximately $32,000. We assumed the lease from International Manufacturing Solutions in December 2008 and will expire in July 2013.

Our European headquarters are located in Amsterdam, The Netherlands. On August 3, 2007, the original lease agreement was amended to expand our Amsterdam facility to approximately 16,000 square feet of office space. This lease will expire in June 2012, with an option to renew for an additional five year term. We may also terminate this lease in June 2012 for a fee of approximately $125,000. The monthly rent in 2010 for the Amsterdam facility is approximately $45,000.

On January 26, 2010, we entered into an agreement to lease new corporate headquarters of approximately 129,024 square feet in San Jose, California. The lease agreement commenced on June 28, 2010 and will continue for an initial term of seven years and two months. The monthly rent in 2010 for our San Jose, California corporate headquarters is approximately $130,000. The agreement for our previous corporate headquarters in Santa Clara, California, expired on June 30, 2010.

We recognize rent expense on a straight-line basis over the lease period, and accrued for rent expense incurred but not paid. Total rent expense was $4.7 million, $3.8 million, and $3.8 million, for the years ended December 31, 2010, 2009 and 2008, respectively.

Minimum future lease payments for non-cancelable leases as of December 31, 2010, are as follows (in thousands):


Fiscal Year	Operating leases
2011	$	5,596
2012		4,405
2013		3,492
2014		2,491
2015		2,533
Thereafter		4,319

Total minimum lease payments	$	22,836

Stockholders' Equity

12 Months Ended

Dec. 31, 2010

Stockholders' Equity

Stockholders' Equity

Note 10. Stockholders' Equity

Preferred Stock Rights Agreement

The Preferred Stock Rights Agreement (the "Rights Agreement") is intended to protect stockholders from unfair or coercive takeover practices. In accordance with the Rights Agreement, the Board of Directors declared a dividend distribution of one preferred stock purchase right (a "Right") for each outstanding share of our common stock to stockholders of record on November 22, 2005. Each Right entitles stockholders to buy one one-thousandth of a share of our Series A Participating Preferred Stock, par value $0.0001 per share, at an exercise price of $37.00, subject to adjustment. Rights will become exercisable upon the occurrence of certain events, including a person or group acquiring or the announcing the intention to acquire beneficial ownership of 15% or more of the then outstanding common stock without the approval of the Board of Directors. Each holder of a Right will have the right to receive, upon exercise, shares of common stock having a value equal to two times the purchase price. The Rights will expire on November 22, 2015 or upon the exercise of the Rights, whichever occurs earlier.

Common Stock

The holders of common stock are entitled to receive dividends whenever funds are legally available and when and if declared by the Board of Directors. We have never declared or paid dividends on our common stock.

Stock-based Compensation Expense

Stock-based compensation expense is based on the estimated fair value of awards, net of estimated forfeitures and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and may be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation expense related to all of our stock-based awards and employee stock purchases for the years ended December 31, 2010, 2009, 2008 is as follows (in thousands):


	For the Years Ended December 31,
	2010		2009		2008
Cost of revenues	$	1,629	$	1,502	$	1,753
Sales and marketing		4,430		4,308		5,289
General and administrative		7,931		7,641		8,011
Research and development		2,082		1,637		2,004

Total stock-based compensation	$	16,072	$	15,088	$	17,057

Stock-based Compensation Plans

Our 2005 Incentive Plan provides for the granting of incentive stock options, non-statutory stock options, restricted stock units, stock appreciation rights, performance units and performance shares to employees, non-employee directors, and consultants. Options are granted for terms not to exceed ten years and generally vest over 4 years with 25% vesting one year from the date of grant and 1/48^th each month thereafter. Any shares granted as an award of restricted stock, restricted stock unit, performance share or performance unit are counted against the authorized share reserve as two (2) shares for every one (1) share subject to the award, and any shares cancelled will be returned at the same ratio. In addition, an aggregate of 5,000,000 shares that would have been returned to our expired 2001 Stock Incentive Plan as a result options cancelled or shares repurchased, can be added to the shares available under the 2005 Incentive Plan. This plan expired on December 31, 2010.

On May 20, 2010 our stockholders voted to amend the 2005 Incentive Plan. The amended plan extended the plan expiration date to December 31, 2020, increased the number of shares reserved for issuance by 3,300,000 shares, and reduced the maximum option term to seven years. The amended 2005 Incentive Plan also changed the share reserve ratio such that shares subject to an award of restricted stock, restricted stock units, performance shares or performance units will now be counted against the authorized share reserve as one and one-half (11/2) shares for every one (1) share subject to the award, and any shares cancelled will be returned at the same ratio.

As of December 31, 2010, we have a total of 4,110,981 shares reserved and available for issuance which includes 2,375,766 shares that have been transferred from the 2001 Stock Incentive Plan.

Stock Options

Activity for the years ended December 31, 2010, 2009 and 2008 under the stock option plans are set forth below (in thousands, except years and per share amounts):


	Stock Options
	Number of Shares Underlying Stock Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at of December 31, 2007		7,133		$	10.99
Granted		2,182			12.78
Exercised		(912	)		6.50
Cancelled or expired		(1,094	)		14.02

Outstanding at December 31, 2008		7,309			11.63
Granted		1,134			8.62
Exercised		(586	)		7.05
Cancelled or expired		(369	)		12.45

Outstanding at of December 31, 2009		7,488			11.49
Granted		1,501			17.65
Exercised		(913	)		7.87
Cancelled or expired		(261	)		14.63

Outstanding at of December 31, 2010		7,815		$	12.99		5.71	$	51,645

Vested and expected to vest at December 31, 2010		7,604		$	12.93		5.68	$	50,719

Exercisable at December 31, 2010		5,151		$	12.08		5.12	$	38,877

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day in 2010 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each fiscal year. This amount will fluctuate based on the fair market value of our stock. The total intrinsic value of stock options exercised for the years ended December 31, 2010, 2009 and 2008 was $9.2 million, $3.2 million, and $5.2 million, respectively. We issue new shares upon the exercise of options.

The fair value of stock options granted was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:


	2010			2009			2008
Stock options:
Expected term (in years)		4.4			4.4			4.4
Expected volatility		63.3	%		62.0	%		60.0	%
Risk-free interest rate		1.9	%		1.6	%		2.8	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	9.08		$	4.32		$	6.40

The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. We used a mid-point model to determine the expected term of stock options based on our historical exercise, post-vesting cancellation experience, and the remaining contractual term of our outstanding options.

We use our own historical volatility.

The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option.

We have not paid any cash dividends since inception and do not anticipate paying cash dividends in the foreseeable future, therefore we used an expected dividend of zero.

As of December 31, 2010, there was $13.8 million of total unamortized compensation costs related to stock options and these costs are expected to be recognized over a weighted average period of 2.3 years. For the year ended December 31, 2010, the total recognized tax effect from exercised options was $0.9 million.

The options outstanding and exercisable by exercise price at December 31, 2010 are as follows:


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price per Share		Shares		Weighted Average Exercise Price per Share
$ 2.18 - $ 7.81		2,088,638		5.20	$	7.11		1,664,197	$	6.94
7.84 - 13.00		2,464,744		6.31		11.26		1,783,261		10.78
13.04 - 17.94		2,324,711		6.19		17.54		873,361		17.58
17.97 - 27.06		936,878		4.08		19.35		830,376		19.36

$ 2.18 - $27.06		7,814,971		5.71	$	12.99		5,151,195	$	12.08

Restricted Stock Units

The fair value of restricted stock units is based on our closing stock price on the date of grant. A summary of the nonvested shares for the years ended December 31, 2010, 2009 and 2008 is as follows (in thousands, except years and per share amounts):


	Shares Underlying RSUs			Average Grant Date Fair Value Price per Share		Contractual Term (in years)		Aggregate Intrinsic Value
Nonvested as of December 31, 2007		651		$	15.78
Granted		685			12.78
Vested and released		(258	)		15.55
Forfeited		(206	)		15.00

Nonvested as of December 31, 2008		872			13.68
Granted		326			8.56
Vested and released		(257	)		13.39
Forfeited		(65	)		12.44

Nonvested as of December 31, 2009		876			11.95
Granted		427			17.59
Vested and released		(327	)		12.72
Forfeited		(71	)		13.80

Nonvested as of December 31, 2010		905		$	14.19		1.16	$	17,702

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (calculated by multiplying our closing stock price on the last trading day of 2010 by the number of non-vested RSUs) that would have been received by the unit holders had all RSUs been vested and released on the last day of each fiscal year. This amount will fluctuate based on the fair market value of our stock. During 2010, of the 327,020 shares vested and released, approximately 60,793 vested shares were withheld for executive RSU tax payments, resulting in a net issuance of 266,227 shares.

The total intrinsic value of RSUs vested and released during 2010, 2009 and 2008 was $5.8 million, $2.9 million and $2.9 million, respectively. As of December 31, 2010, there was $7.6 million of total unamortized compensation costs related to RSUs, and these costs are expected to be recognized over a weighted average period of 2.1 years.

Employee Stock Purchase Plan

Our 2001 Employee Stock Purchase Plan (the "2001 Purchase Plan") consists of consecutive overlapping twenty-four month offering periods with four six-month purchase periods in each offering period. Employees purchase shares at 85% of the fair market value of the common stock at either the beginning of the offering period or the end of the purchase period, whichever is lower. During the year ended December 31, 2010, we issued 643,129 shares under the 2001 Purchase Plan. As of December 31, 2010, we reserved 14,933,456 shares of common stock for future issuance and 10,981,603 shares remain available for future issuance. These reserved shares will be cancelled upon the expiration of the final purchase period under the 2001 Purchase Plan.

In May 2010, our shareholders approved the 2010 Employee Stock Purchase Plan (the "2010 Purchase Plan") to replace the 2001 Purchase Plan which expired on January 31, 2011. The terms and features of the 2010 Purchase Plan are substantially the same as the 2001 Purchase Plan and will continue until terminated by either the Board or its administrator. The maximum number of shares available for issuance under the 2010 Purchase Plan is 2,400,000 shares.

The fair value of the option component of the Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:


	December 31,
	2010			2009			2008
Employee Stock Purchase Plan:
Expected term (in years)		1.3			1.3			1.2
Expected volatility		55.8	%		74.6	%		67.2	%
Risk-free interest rate		0.4	%		0.6	%		2.2	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	7.22		$	3.78		$	4.89

As of December 31, 2010, there was $0.3 million of total unamortized compensation costs related to employee stock purchases. These costs are expected to be recognized over a weighted average period of 0.6 years.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Common Stock Repurchase Program	12 Months Ended
Common Stock Repurchase Program	Dec. 31, 2010
Common Stock Repurchase Program
Common Stock Repurchase Program	Note 11. Common Stock Repurchase Program In April 2008, our Board of Directors approved a common stock repurchase program authorizing management to repurchase up to $50 million of our outstanding common stock. During 2008, we purchased approximately 4.7 million shares of common stock at an average price of $10.76 per share for an aggregate purchase price of $50.1 million including commissions and completed the stock repurchase program. The common stock repurchases reduced additional paid-in capital by $38.6 million and increased accumulated deficit by $11.6 million. All repurchased shares were retired, and there were no stock repurchases during 2010 and 2009.

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2010
Employee Benefit Plan
Employee Benefit Plan	Note 12. Employee Benefit Plan In January 1999, we adopted a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. In 2009, our Board of Directors authorized us to match 50% of our employee's salary deferral contributions up to a 6% of the employee's eligible compensation effective 2010. We contributed approximately $1.6 million to the 401(k) plan in 2010.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

Income Taxes

Note 13. Income Taxes

Deferred tax assets and liabilities were as follows (in thousands):


	Years Ended December 31,
	2010			2009
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	27,486		$	47,607
Credit carryforwards		7,080			7,583
Reserves & accruals		9,247			8,947
Depreciation and amortization		5,103			6,196
Stock-based compensation		7,919			5,606
Other		929			785

		57,764			76,724

Deferred tax liabilities:
Prepaid expenses		913			1,739
Translation gains		(5	)		239
Other		864			1,344

		1,772			3,322

Net deferred tax assets before valuation allowance		55,992			73,402
Valuation allowance		(6,079	)		(6,182	)

Net deferred tax assets	$	49,913		$	67,220

With the exception of certain capital loss and foreign net operating loss carryforwards, we released the tax valuation allowance on most of the deferred tax assets and recorded an income tax benefit of $64.6 million for the year ended December 31, 2008. As of December 31, 2010, we believed, except for the items noted above that it was more likely than not, that the amount of deferred tax assets recorded on the balance sheet will be realized. However, should there be a change in our ability to recover our deferred tax assets, the tax provision would increase in the period in which it is more likely than not that we cannot recover our deferred tax assets.

At December 31, 2010, we had net operating loss carryforwards of approximately $134.5 million for federal purposes and $67.6 million for California state tax purposes. If not utilized, these carryforwards will begin to expire beginning in 2020 for federal purposes and 2013 for California purposes.

We have research credit carryforwards of approximately $4.5 million for federal purposes and $3.8 million for California state tax purposes. If not utilized, the federal credit carryforwards will begin to expire in 2017. The California state credit can be carried forward indefinitely.

During fiscal year 2010, the amount of unrecognized tax benefits was increased by $5.0 million. The total amount of unrecognized tax benefits was $11.0 million as of December 31, 2010, which would impact our effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. Interest and penalties are immaterial and are included in our unrecognized tax benefits.

The following is a rollforward of our total gross unrecognized tax benefit for 2010 (in thousands):


Unrecognized tax benefit as of January 1, 2008	$	2,816

Tax positions related to current year:
Additions for uncertain tax positions		314
Tax positions related to prior year:
Reductions for uncertain tax positions		(252	)

Unrecognized tax benefit as of December 31, 2008	$	2,878

Tax positions related to current year:
Additions for uncertain tax positions		1,691
Tax positions related to prior year:
Additions for uncertain tax positions		1,738
Reductions for uncertain tax positions		(378	)

Unrecognized tax benefit as of December 31, 2009	$	5,929

Tax positions related to current year:
Additions for uncertain tax positions		2,742
Tax positions related to prior year:
Additions for uncertain tax positions		2,290

Unrecognized tax benefit as of December 31, 2010	$	10,961

We are subject to taxation in the U.S. and various states and foreign jurisdictions. All of our tax years will be open to examination by the U.S. federal and most state tax authorities due to our net operating loss and overall credit carryforward position. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2006.

The differences between income taxes using the federal statutory income tax rate of 35% and our effective tax rate were as follows:


	Years Ended December 31,
	2010			2009			2008
U.S. federal statutory income tax rate		35.00	%		35.00	%		35.00	%
State income taxes, net of federal tax benefit		2.97			1.89			7.74
Deferred tax benefits utilized		—			—			(67.04	)
Foreign losses not benefited		—			—			4.16
Impact of differences in foreign tax rates		(11.18	)		(14.99	)		(8.13	)
Amortization of stock-based compensation		1.55			(6.53	)		32.30
Non-deductible foreign exchange losses		—			—			(0.91	)
Non-deductible meals & entertainment charges		0.50			(1.31	)		3.21
Valuation allowance release		—			—			(378.34	)
Other items not individually material		(1.64	)		(6.40	)		3.57

		27.20	%		7.66	%		(368.44	%)

The domestic and foreign components of income (loss) before provision for income taxes were as follows (in thousands):


	Years ended December 31,
	2010		2009			2008
Domestic	$	57,145	$	(23,075	)	$	13,333
Foreign		44,858		(10,818	)		3,743

Total	$	102,003	$	(33,893	)	$	17,076

In June 2009, the Costa Rica Ministry of Foreign Trade, an agency of the Government of Costa Rica, granted a twelve year extension of the tax incentives, which were previously granted in 2002. Under these incentives, all of the income in Costa Rica during these twelve year incentive periods is subject to reduced rates of Costa Rica income tax. The incentive tax rates will expire in various years beginning in 2017. The Costa Rica corporate income tax rate that would apply, absent the incentives, is 30% for 2010. As a result of these incentives, income taxes were reduced by $12.7 million in 2010. Because Costa Rica incurred a net loss in 2009, no tax benefit was realized from these incentives in 2009. In order to receive the benefit of the incentives, we must hire specified numbers of employees and maintain minimum levels of fixed asset investment in Costa Rica. If we do not fulfill these conditions for any reason, our incentive could lapse and our income in Costa Rica would be subject to taxation at higher rates, which could have a negative impact on our operating results.

The provision for (benefit from) income taxes consisted of the following (in thousands):


	Years Ended December 31,
	2010		2009			2008
Federal
Current	$	—	$	(1,196	)	$	268
Deferred		23,193		(1,437	)		(56,934	)

		23,193		(2,633	)		(56,666	)

State
Current		386		(96	)		784
Deferred		2,914		(1,115	)		(7,674	)

		3,300		(1,211	)		(6,890	)

Foreign
Current		1,197		1,280			645
Deferred		60		(60	)		—

		1,257		1,220			645

Provision for (benefit from) income taxes	$	27,750	$	(2,624	)	$	(62,911	)

We have not provided additional U.S. income taxes on undistributed earnings from non- U.S. operations as of December 31, 2010 because such earnings are intended to be reinvested indefinitely outside of the United States.

Net Profit (Loss) per Share

12 Months Ended

Dec. 31, 2010

Net Profit (Loss) per Share

Net Profit (Loss) per Share

Note 14. Net Profit (Loss) per Share

Basic net profit (loss) per share is computed using the weighted average number of shares of common stock during the year less unvested common shares subject to repurchase. Diluted net profit (loss) per share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes options, restricted stock units, and the dilutive component of Purchase Plan shares.

The following table sets forth the computation of basic and diluted net profit (loss) per share attributable to common stock (in thousands, except per share amounts):


	Years Ended December 31,
	2010		2009			2008
Numerator:
Net profit (loss)	$	74,253	$	(31,269	)	$	79,987

Denominator:
Weighted-average common shares outstanding, basic		75,825		69,094			66,812
Dilutive effect of potential common stock		2,255		—			1,252

Total shares, diluted		78,080		69,094			68,064

Net profit (loss) per share, basic	$	0.98	$	(0.45	)	$	1.20

Net profit (loss) per share, diluted	$	0.95	$	(0.45	)	$	1.18

For the years ended December 31, 2010, 2009 and 2008, stock options, restricted stock units, and employee stock purchases totaling 3.0 million, 9.3 million, and 5.1 million, respectively, were excluded from diluted net profit (loss) per share because of their anti-dilutive effect.

Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2010

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Note 15. Comprehensive Income (Loss)

Comprehensive income (loss) includes net profit (loss), foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. The components of comprehensive income (loss) are as follows (in thousands):


	Years Ended December 31,
	2010			2009			2008
Net profit (loss)	$	74,253		$	(31,269	)	$	79,987
Foreign currency translation adjustments		(302	)		168			(421	)
Change in unrealized gain/(loss) on available-for-sale securities		(19	)		18			33

Comprehensive income (loss)	$	73,932		$	(31,083	)	$	79,599

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2010

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Note 16. Supplemental Cash Flow Information

The supplemental cash flow information consists of the following (in thousands):


	Years Ended December 31,
	2010		2009		2008
Taxes paid	$	1,894	$	2,004	$	1,510

Interest paid	$	19	$	84	$	—

Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	$	906	$	1,790	$	1,322

Stock component of litigation settlement costs	$	—	$	63,518	$	—

Segments and Geographical Information

12 Months Ended

Dec. 31, 2010

Segments and Geographical Information

Segments and Geographical Information

Note 17. Segments and Geographical Information

Segments

We report segment data based on the management approach which designates the internal reporting that is used by management for making operating decisions and assessing performance as the source of our reportable operating segments. During all periods presented, we operated as a single business segment.

Geographical Information

Net revenues and long-lived assets are presented below by geographic area (in thousands):


	For the Years Ended December 31,
	2010		2009		2008
Net revenues:
North America	$	290,847	$	237,033	$	240,210
Europe		92,032		72,245		61,652
Other international		4,247		3,055		2,114

Total net revenues	$	387,126	$	312,333	$	303,976


	As of December 31,
	2010		2009		2008
Long-lived assets:
North America	$	85,576	$	91,548	$	99,086
Europe		837		1,018		960
Other international		1,919		1,375		1,388

Total long-lived assets	$	88,332	$	93,941	$	101,434

Restructurings

12 Months Ended

Dec. 31, 2010

Restructurings

Restructurings

Note 18. Restructurings

During 2008, we announced restructuring plans in July and October to increase efficiencies across the organization and lower the overall cost structure. In July 2008, we implemented a restructuring plan to reduce its full time headcount by 67 employees including a phased-consolidation of order acquisition operations from our former corporate headquarters in Santa Clara, California to Juarez, Mexico, which was completed by the end of 2008. The October restructuring plan included a total reduction of 111 full time headcount in Santa Clara, California by July 2009 as we moved our customer care, accounts receivable, credit and collections, and customer event registration organizations, in Santa Clara, California to existing facilities in Costa Rica.

In 2008, we incurred approximately $6.2 million in restructuring expenses relating to these actions which included $0.7 million related to the acceleration of stock option vesting and $5.5 million related to severance and termination benefits, of which $3.0 million was paid during the year.

In 2009, we incurred approximately $1.3 million of costs related to severance and termination benefits. There were no costs incurred relating to the restructuring plans during 2010.

Activity and liability balances related to restructuring plans for 2008 through 2009 are as follows (in thousands):


	Severance and Benefits
Balance at January 1, 2008	$	—
Restructuring cost		5,568
Cash payments		(3,067	)

Balance at December 31, 2008		2,501

Restructuring cost		1,319
Cash payments		(3,820	)

Balance at December 31, 2009		—

All liability balances related to the restructuring plans were paid by the end of 2009.

Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 31, 2010

Schedule II - Valuation and Qualifying Accounts and Reserves

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES


	Balance at Beginning of Period		Additions (reductions) to Costs and Expenses			Write offs			Reclass from Other Accounts			Balance at End of Period
	(in thousands)
Allowance for doubtful accounts:
Year ended December 31, 2008	$	760	$	71		$	(184	)	$	(35	)	$	612
Year ended December 31, 2009	$	612	$	708		$	(305	)	$	18		$	1,033
Year ended December 31, 2010	$	1,033	$	195		$	(482	)	$	(11	)	$	735
Allowance for deferred tax assets:
Year ended December 31, 2008	$	93,157	$	(86,957	)	$	—		$	—		$	6,200
Year ended December 31, 2009	$	6,200	$	(18	)	$	—		$	—		$	6,182
Year ended December 31, 2010	$	6,182	$	(103	)	$	—		$	—		$	6,079
Allowance for excess and obsolete inventory and abandoned product:
Year ended December 31, 2008	$	216	$	110		$	(188	)	$	—		$	138
Year ended December 31, 2009	$	138	$	73		$	(107	)	$	—		$	104
Year ended December 31, 2010	$	104	$	20		$	—		$	—		$	124

(b)	The following Exhibits are included in this Annual Report on Form 10-K:

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
CONSOLIDATED STATEMENTS OF OPERATIONS
Release of previously deferred revenue for Invisalign Teen replacement aligners	$ 14.3

Intangible Assets	12 Months Ended
Intangible Assets	Dec. 31, 2010
Intangible Assets
Intangible Assets	Note 5. Intangible Assets The intangible assets represent non-compete agreements received in conjunction with the October 2006 OrthoClear Agreement at gross value of $14.0 million. These assets are amortized on a straight-line basis over the expected useful life of five years. As of December 31, 2010 and December 31, 2009, the net carrying value of these non-compete agreements was $2.2 million (net of $11.8 million of accumulated amortization) and $5.0 million (net of $9.0 million of accumulated amortization), respectively. For each of the three years ended December 31, 2010, 2009 and 2008, total amortization expense for intangible assets was $2.8 million. The total estimated annual future amortization expense for 2011 is $2.2 million.