$ 479,741

^[1],[2]

$ 387,126

^[1],[2]

$ 312,333

^[1],[2]

Cost of revenues

118,458

83,709

78,841

General and administrative

361,283

303,417

233,492

Operating expenses:

Sales and marketing

142,174

114,013

112,542

89,152

64,790

61,718

Research and development

37,154

25,997

22,252

Litigation settlement costs

4,549

69,673

Insurance settlement

(8,666)

Restructurings

1,319

Total operating expenses

270,923

200,683

267,504

Amortization of acquired intangible assets

3,178

Profit (loss) from operations

90,360

102,734

(34,012)

Interest income

552

555

579

Interest expense

(51)

(19)

(85)

Other expense

(920)

(1,267)

(375)

Net profit (loss) before provision for income taxes

89,941

102,003

(33,893)

Provision for (benefit from) income taxes

23,225

27,750

(2,624)

Net profit (loss)

66,716

74,253

(31,269)

Net profit (loss) per share:

Basic

$ 0.86

$ 0.98

$ (0.45)

Diluted

$ 0.83

$ 0.95

$ (0.45)

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

Basic

77,988

75,825

69,094

Diluted

80,294

78,080

69,094

Operating expense

Operating expenses:

Amortization of acquired intangible assets

$ 2,443

[1]	Net revenues for the year ended December 31, 2011 include eight months of revenues from our Scanners and CAD/CAM Services segment of approximately $28.0 million as a result of our acquisition of Cadent on April 29, 2011. Net revenues for the year ended December 31, 2010 includes a $14.3 million release of previously deferred revenue for Invisalign Teen replacement aligners.
[2]	Revenues are attributed to countries based on location of where revenue is recognized.

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 240,675	$ 294,664
Restricted cash	4,026
Marketable securities, short-term	7,395	8,615
Accounts receivable, net of allowance for doubtful accounts and returns of $780 and $735, respectively	91,537	65,430
Inventories	9,402	2,544
Prepaid expenses and other current assets	31,781	17,358
Total current assets	384,816	388,611
Marketable securities, long-term		9,089
Property, plant and equipment, net	53,965	30,684
Goodwill	135,383	478
Intangible assets, net	50,022	2,188
Deferred tax assets	22,337	42,439
Other assets	2,741	3,454
Total assets	649,264	476,943
Current liabilities:
Accounts payable	19,265	7,768
Accrued liabilities	76,600	51,358
Deferred revenues	52,252	33,848
Total current liabilities	148,117	92,974
Other long-term liabilities	10,366	6,222
Total liabilities	158,483	99,196
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; 78,776 and 76,390 issued and outstanding, respectively)	8	8
Additional paid-in capital	607,240	555,851
Accumulated other comprehensive income, net	46	134
Accumulated deficit	(116,513)	(178,246)
Total stockholders' equity	490,781	377,747
Total liabilities and stockholders' equity	$ 649,264	$ 476,943

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Accounts receivable, allowance for doubtful accounts and returns	$ 780	$ 735
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, issued
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000	200,000
Common stock, issued	78,776	76,390
Common stock, outstanding	78,776	76,390

Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any.

+ References+ Details

Summary of Significant Accounting Policies

Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share.

+ References+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance at Dec. 31, 2008	$ 218,540	$ 7	$ 439,494	$ 269	$ (221,230)
Beginning Balance (in shares) at Dec. 31, 2008		65,633
Net income (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 income (loss)	(31,083)
Issuance of common stock relating to employee equity compensation plans (in shares)		1,349
Issuance of common stock relating to employee equity compensation plans	8,097		8,097
Tax withholdings related to net share settlements of restricted stock units	(487)		(487)
Shares issued for litigation settlement (in shares)		7,586
Shares issued for litigation settlement	63,518		63,518
Excess tax benefit from share based payment arrangements	(637)		(637)
Stock based compensation	15,088		15,088
Ending Balance at Dec. 31, 2009	273,036	7	525,073	455	(252,499)
Ending Balance (in shares) at Dec. 31, 2009		74,568
Net income (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 income (loss)	73,932
Issuance of common stock relating to employee equity compensation plans (in shares)		1,822
Issuance of common stock relating to employee equity compensation plans	11,822	1	11,821
Tax withholdings related to net share settlements of restricted stock units	(1,080)		(1,080)
Excess tax benefit from share based payment arrangements	3,965		3,965
Stock based compensation	16,072		16,072
Ending Balance at Dec. 31, 2010	377,747	8	555,851	134	(178,246)
Ending Balance (in shares) at Dec. 31, 2010		76,390
Net income (loss)	66,716				66,716
Net change in unrealized gain (loss) from available-for sale securities	10			10
Net change in cumulative translation adjustment	(98)			(98)
Comprehensive income (loss)	66,628
Issuance of common stock relating to employee equity compensation plans (in shares)		2,708
Issuance of common stock relating to employee equity compensation plans	25,501		25,501
Tax withholdings related to net share settlements of restricted stock units	(1,897)		(1,897)
Common stock repurchased (in shares)		(322)
Common stock repurchased	(7,754)		(2,771)		(4,983)
Excess tax benefit from share based payment arrangements	11,391		11,391
Stock based compensation	19,165		19,165
Ending Balance at Dec. 31, 2011	490,781	8	607,240	46	(116,513)
Ending Balance (in shares) at Dec. 31, 2011		78,776
Beginning Balance at Sep. 30, 2011
Common stock repurchased (in shares)	(300)
Common stock repurchased	(7,800)		(2,800)		(5,000)
Ending Balance at Dec. 31, 2011	$ 490,781		$ 607,240		$ (116,513)

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net profit (loss)	$ 66,716	$ 74,253	$ (31,269)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
Deferred taxes	5,842	17,307	(2,612)
Depreciation and amortization	12,112	11,386	10,204
Stock-based compensation	19,165	16,072	15,088
Amortization of intangibles	5,365	2,800	2,800
Litigation settlement costs paid in stock			56,523
Amortization of prepaid royalties		827	6,165
Provision for doubtful accounts and returns	117	195	708
Loss on retirement and disposal of fixed assets	1	61	37
Excess tax provision for (benefit from) share-based payment arrangements	(11,391)	(3,965)	637
Changes in assets and liabilities, excluding the effects of business combinations:
Accounts receivable	(21,693)	(12,184)	(2,586)
Inventories	(4,058)	(508)	(85)
Prepaid expenses and other assets	(2,681)	(1,212)	306
Accounts payable	7,535	2,612	(614)
Accrued and other long-term liabilities	37,105	19,705	3,336
Deferred revenues	16,334	2,180	15,527
Net cash provided by operating activities	130,469	129,529	74,165
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash acquired	(187,588)
Restricted cash	(4,026)
Purchase of property, plant and equipment	(30,404)	(18,031)	(7,192)
Purchase of marketable securities		(18,334)	(42,923)
Maturities of marketable securities	10,317	20,590	48,893
Proceeds from sale of equipment	95
Other assets		(145)	(334)
Net cash used in investing activities	(211,606)	(15,920)	(1,556)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	25,501	11,822	8,097
Common stock repurchase	(7,754)
Payments on short-term obligations			(136)
Excess tax provision for (benefit from) share-based payment arrangements	11,391	3,965	(637)
Employees' taxes paid upon the vesting of restricted stock units	(1,897)	(1,080)	(487)
Net cash provided by financing activities	27,241	14,707	6,837
Effect of foreign exchange rate changes on cash and cash equivalents	(93)	(139)	(59)
Net increase (decrease) in cash and cash equivalents	(53,989)	128,177	79,387
Cash and cash equivalents, beginning of year	294,664	166,487	87,100
Cash and cash equivalents, end of year	$ 240,675	$ 294,664	$ 166,487

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Note 1. Summary of Significant Accounting Policies

Business Description

Align Technology, Inc. (“We”, “Our”, or “Align”) was incorporated in April 1997 and focuses on designing, manufacturing and marketing innovative, technology-rich products to help dental professionals achieve the clinical results they expect and deliver effective, convenient cutting-edge dental treatment options to their patients. We are headquartered in San Jose, California with offices worldwide. Our international headquarters are located in Amsterdam, the Netherlands. We have two operating segments, (1) Clear Aligner, known as the Invisalign system, and (2) Scanners and CAD/CAM Services, known as iTero and iOC intra-oral scanners and OrthoCAD services.

Basis of presentation and preparation

The consolidated financial statements include the accounts of 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 (“U.S.”) 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. On an ongoing basis, we evaluate our estimates, including those related to the fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of stock-based compensation, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Fair value of financial instruments

The carrying amounts of our cash, accounts receivable, accounts payable and other current liabilities approximate their fair value.

We measure our cash equivalents, marketable securities, and our Israeli severance fund 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. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

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

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.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Cash and cash equivalents

We consider currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the U.S. and internationally.

Restricted cash

Our restricted cash balance as of December 31, 2011 was approximately $4.0 million which primarily represents funds we hold as unclaimed merger consideration related to the acquisition of Cadent on April 29, 2011.

Marketable securities

We invest primarily in money market funds, agency, foreign and domestic corporate bonds.

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.

Foreign currency

For our international subsidiaries where the foreign currency is the functional currency, we analyze on an annual basis or more often if necessary, 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, 2011 and 2010, we had $0.1 million and $0.1 million, respectively, in accumulated other comprehensive income, net related to the translation of our foreign subsidiaries’ financial statements.

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 year ended December 31, 2011 foreign currency gains were not significant, and for the years ended December 31, 2010 and 2009, we incurred a gain of $0.6 million, and a loss of $0.3 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, agency, foreign and domestic corporate bonds. 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. services 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, 2011 and 2010, or net revenues in 2011, 2010, and 2009.

In the U.S., 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 U.S. 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 and parts of our intra-oral scanners at our facility in Juarez, Mexico and also in Or Yehuda, Israel where we produce our handheld scanner wand. 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 cost computed using standard cost (which approximates actual cost) and actual cost on a first-in-first-out or average basis. Excess and obsolete inventories are determined primarily based on future demand forecasts, and write-downs of excess and obsolete inventories are recorded as a component of cost of revenues.

Property, plant and equipment

Property, plant 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, generally three to five years. We depreciate buildings over periods up to 20 years. Land is not depreciated. Construction in progress is related to the construction or development of property (including land) and equipment that have not yet been placed in service for their intended use. 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.

Goodwill and finite-lived purchased intangible assets

Goodwill represents the excess of the purchase price paid over the fair value of tangible and identifiable intangible net assets acquired in business combinations and is allocated to the respective reporting unit based on relative synergies generated.

Our intangible assets primarily consist of intangible assets acquired as part of the Cadent acquisition. These assets are amortized using the straight-line method over their estimated useful lives of one to fifteen years, reflecting the period in which the economic benefits of the assets are expected to be realized.

Impairment of goodwill, finite-lived purchased intangible assets and long-lived assets

We evaluate goodwill for impairment at least annually or whenever an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The allocation of goodwill to the respective reporting units are based on the relative synergies generated as a result of an acquisition.

The impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit against its carrying amount, including the goodwill allocated to each reporting unit. We determine the fair value of our reporting units based on the present value of estimated future cash flows of the reporting units. If the carrying amount of the reporting unit is in excess of its fair value, step two requires the comparison of the implied fair value of the reporting unit’s goodwill against the carrying amount of the reporting unit’s goodwill. Any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of the reporting unit’s goodwill is recorded as an impairment loss.

In fiscal years 2011, 2010 and 2009, we performed the annual goodwill impairment testing during the fourth quarter for our reporting unit(s) and found no impairment as the fair value of our reporting unit(s) was significantly in excess of the carrying value.

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. There were no asset impairments during 2011, 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. Capitalized software costs are amortized over the estimated useful lives of three years. Development costs for internal use software for 2011, 2010, and 2009 were not material.

Product Warranty

Clear Aligner

We warrant our Invisalign products against material defects until the Invisalign case is complete. We accrue for warranty costs in cost of revenues upon shipment of products. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on replacement 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.

Scanners and CAD/CAM Services

We warrant our intra-oral scanners for a period of one year, which include materials and labor. We accrue for these warranty costs based on average historical repair costs. Extended warranty may be purchased for additional fees.

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts for customers’ inability 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

In the fiscal year ended December 31, 2011, we adopted the new accounting guidance for multiple-deliverable revenue arrangements (Accounting Standards Update “ASU” 2009-13, Multiple-Deliverable Revenue Arrangements—a consensus of the Financial Accounting Standard Board “FASB” Emerging Issues Task Force). This new guidance establishes a selling price hierarchy for determining the selling price of a deliverable, replaces the term “fair value” in the revenue allocation with “selling price” to clarify that the allocation of revenue is based on entity-specific assumptions rather than assumptions of a marketplace participant, replaces the “residual method” of allocation with the “relative selling-price method,” and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables applying this method, including proportional allocation of any discounts to each deliverable.

Multiple-Element Arrangements (“MEAs”): Arrangements with customers may include multiple deliverables, including any combination of equipment, services and extended warranties. The deliverables included in the MEAs are separated into more than one unit of accounting when (i) the delivered equipment has value to the customer on a stand-alone basis, and (ii) delivery of the undelivered service element(s) is probable and substantially in our control. Based on the new accounting guidance adopted January 1, 2011, arrangement consideration is then allocated to each unit, delivered or undelivered, based on the relative selling price (“RSP”) of each unit of accounting based first on vendor-specific objective evidence (“VSOE”) if it exists second on third-party evidence (“TPE”) if it exits and on estimated selling price (“ESP”) if neither VSOE or TPE exist.

•

VSOE – In most instances, products are sold separately in stand-alone arrangements. Services are also sold separately through renewals of contracts with varying periods. We determine VSOE based on its pricing and discounting practices for the specific product or service when sold separately, considering geographical, customer, and other economic or marketing variables, as well as renewal rates or stand-alone prices for the service element(s).

•

TPE – If we cannot establish VSOE of selling price for a specific product or service included in a multiple-element arrangement, we use third-party evidence of selling price. We determine TPE based on sales of comparable amount of similar product or service offered by multiple third parties considering the degree of customization and similarity of product or service sold.

•

ESP – The estimated selling price represents the price at which we would sell a product or service if it were sold on a stand-alone basis. When VSOE does not exist for all elements, we determine ESP for the arrangement element based on sales, cost and margin analysis, as well as other inputs based on its pricing practices. Adjustments for other market and Company-specific factors are made as deemed necessary in determining ESP.

We adopted these standards for applicable arrangements that were entered into or materially modified on or after January 1, 2011. Implementation of these standards did not have a material impact on our consolidated financial statements in the period under report and is not expected to significantly affect the timing and pattern of revenue recognition in future periods.

We estimate and record a provision for amounts of estimated losses on sales, if any, in the period such sales occur. We have not recorded any estimated losses for the periods presented. 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.

Clear Aligner

We enter into arrangements (“treatment plans”) that involve multiple future product deliverables. For example, included in the price of Invisalign Full, Invisalign Teen and Invisalign Assist, we offer optional 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. Invisalign Teen also includes six optional replacement aligners in the price of the product and may be ordered at any time throughout treatment.

We use VSOE adjusted by estimated usage rates for case refinements and replacement aligners to determine the respective ESP. In the absence of VSOE, we determine our best estimate of selling price, as if it is sold on a stand-alone basis, and take into consideration our pricing and discounting strategies, market conditions, as well as historical price. We regularly review our VSOE and ESP and maintain internal controls over the establishment and update of these estimates.

We determined that our treatment plans are comprised of four possible deliverables that represent separate units of accounting: single-batched aligners, multiple-batched aligners, case refinement and replacement aligners. We allocate revenue for each treatment plan based on each unit’s relative selling price and recognize the revenue upon the delivery of each unit in the treatment plan.

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 with the progress tracking feature, in which aligners are shipped to the dental professional every nine stages (“a batch”). We determined that each batch has stand-alone value and therefore represents a separate unit of accounting. The estimated selling price for Invisalign Assist with progress tracking is allocated according to the estimated number of batches.

Prior to January 1, 2011, we used VSOE as fair value to allocate revenue to the case refinement and replacement aligner deliverables. We deferred the fair value of case refinement and replacement aligner deliverables based on a breakage factor and recognized the residual revenue upon initial batch shipment. The deferred revenue was subsequently recognized as the refinement and replacement aligners were shipped. For Invisalign Assist with the progress tracking feature, we did not have independent evidence of fair value for the separate batches of aligners, so all batches of aligners were considered a single unit of accounting prior to January 1, 2011. For these treatment plans, revenue was deferred upon the first batched shipment and recognized upon the final batched shipment.

Scanners and CAD/CAM Services

We recognize revenues from the sales of iTero and iOC intra-oral scanners and CAD/CAM services. CAD/CAM services include scanning services, extended warranty for the intra-oral scanners, a range of iTero restorative services and OrthoCAD services such as OrthoCAD iCast, OrthoCAD iQ, and OrthoCAD iRecord. We sell intra-oral scanners and services through both our direct sales force and distribution partners. The intra-oral scanner sales price includes one year of warranty, and for additional fees, the customer may select an unlimited scanning service agreement over a fixed period of time or extended warranty periods. Revenue, net of related discounts and allowances, is recognized when products or equipment have been shipped, when persuasive evidence of the arrangement exists, the price is fixed or determinable, collectability is reasonably assured, title and risk of loss has passed to customers based on the shipping terms, no significant obligations remain, and allowances for discounts, returns, and customer incentives can be reliably estimated. Discounts are deducted from revenue at the time of sale or when the discount is offered, whichever is later and free cases or training is included as a deliverable in the multiple-element arrangement assessment. Returns of products, excluding warranty related returns, are infrequent and insignificant

Services: Service revenue, including iTero restorative and all OrthoCAD services are recognized upon delivery or ratably over the contract term as the specified services are performed.

Extended Warranties: We offer customers an option to purchase extended warranties on certain products. We recognize revenue on these extended warranty contracts ratably over the life of the contract. The costs associated with these extended warranty contracts are recognized when incurred.

When intra-oral scanners are sold with either an unlimited scanning service agreement and/or extended warranty, we allocate revenue based on each element’s relative selling price. We estimate the selling price of each element, as if it is sold on a stand-alone basis, taking into consideration historical prices as well as our pricing and discounting strategies. We will continue to review our estimates as we continue to integrate Cadent into our business.

Revenues for unlimited scanning service agreements and extended warranty are recognized ratably over the service periods. If a customer selects a pay per use basis for scanning service fees, the revenue is recognized as the service is provided.

For direct sales and sales to certain distributors, intra-oral scanner revenue is recognized once the intra-oral scanner has been installed and on-site training is completed. For other distributors who provide installation and training to the customer, we recognize scanner revenue when the intra-oral scanner is shipped to the distributor assuming all of the other revenue recognition criteria have been met.

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, 2011, 2010 and 2009 advertising costs totaled $21.2 million, $20.2 million, and $18.1 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. An 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. We estimate the fair value of stock options using a Black-Scholes valuation and Monte Carlo simulation 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.

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 May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Accounting Standards Codification “ASC” 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” This new accounting standard update provides certain amendments to the fair value measurement guidance and includes some enhanced disclosure requirements. The most significant change in disclosures is an expansion of the information required for Level 3 measurements based on unobservable inputs. The standard is effective for the year beginning after December 15, 2011. We will adopt this standard in the first quarter of 2012.

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (ASC 220): Presentation of Comprehensive Income.” This new accounting standard update eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. Instead, an entity will be required to present items of net income and other comprehensive income in one continuous statement or in two separate statements. The standard is effective for the year beginning after December 15, 2011. We will adopt this standard in the first quarter of 2012.

In September 2011, FASB issued ASU 2011-08, “Intangibles—Goodwill and Other (ASC 350): Testing Goodwill for Impairment.” This new revised accounting standard is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. Specifically, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. This standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We will adopt this standard in the first quarter of 2012.

In December 2011, FASB issued ASU 2011-12, “Comprehensive Income (ASC 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. The amendments are being made to allow the FASB time to redeliberate whether to present on the face of the financial statements, the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU 2011-05. All other requirements in ASU 2011-05 are not affected by this guidance, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011.

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 Securities and Exchange Commission have a material impact on our present or future consolidated financial statements.

Marketable Securities and Fair Value Measurements

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Note 2. Marketable Securities and Fair Value Measurements

We had the following investments (in thousands):

Short-term


December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate bonds	$	4,135	$	—	$	(1	)	$	4,134
Foreign bonds		1,248		—		(5	)		1,243
Agency bonds		2,015		3		—			2,018

Total	$	7,398	$	3	$	(6	)	$	7,395

We did not have any long-term marketable securities as of December 31, 2011.

Short-term


December 31, 2010	Amortized Cost		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 Cost		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

As of December 31, 2011 and 2010, all short-term investments have maturity dates of less than one year. For the years ended December 31, 2011 and 2010, 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, 2011.

Our Level 2 assets consist of corporate bonds, foreign bonds, agency bonds, and our Israeli severance funds that are mainly invested in insurance policies. We did not hold any Level 2 liabilities as of December 31, 2011.

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, 2011.

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2011 and 2010 (in thousands):


Description	Balance as of December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	86,897	$	86,897		—

Short-term investments:
Corporate bonds		4,134		—		4,134
Foreign bonds		1,243		—		1,243
Agency bonds		2,018		—		2,018

Other assets:
Israeli severance funds		1,859		—		1,859

	$	96,151	$	86,897	$	9,254


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

Balance Sheet Components

12 Months Ended

Dec. 31, 2011

Balance Sheet Components

Note 3. Balance Sheet Components

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2011		2010
Raw materials	$	4,542	$	1,272
Work in process		2,486		1,030
Finished goods		2,374		242

	$	9,402	$	2,544

Work in process includes costs to produce our clear aligner and intra-oral scanner products. Finished goods primarily represent our intra-oral scanners and ancillary products that support our clear aligner products.

Property and equipment

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


	Useful Life (in years )	December 31,
	Useful Life (in years )	2011			2010
Clinical and manufacturing equipment	5	$	59,991		$	48,373
Computer hardware	3		19,096			16,246
Computer software	3-5		18,972			12,776
Furniture and fixtures	5		5,797			4,873
Leasehold improvements	Shorter of lease term or economic life of the asset		4,588			3,406
Building	20		1,913			—
Land	N/A		1,162			—
Construction in progress	N/A		17,913			12,784

Total			129,432			98,458
Less: Accumulated depreciation and amortization			(75,467	)		(67,774	)

		$	53,965		$	30,684

As of December 31, 2011, construction in progress consisted primarily of costs for capital equipment to be placed in service in the next year. Depreciation and amortization was $12.1 million, $11.4 million, and $10.2 million, for the years ended December 31, 2011, 2010 and 2009, respectively.

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2011		2010
Accrued payroll and benefits	$	41,827	$	26,551
Accrued litigation settlement		—		4,549
Accrued income taxes		426		1,936
Accrued sales rebate		8,358		3,826
Accrued sales tax and value added tax		7,052		2,940
Accrued warranty		3,177		2,607
Accrued sales and marketing expenses		3,508		2,955
Accrued accounts payable		3,048		3,235
Unclaimed merger consideration		4,026		—
Other		5,178		2,759

Total	$	76,600	$	51,358

Warranty

Warranty accrual as of December 31, 2011 and 2010 consists of the following activity (in thousands):


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

Charged to cost of revenues		3,319
Assumed warranty from Cadent		340
Actual warranty expenditures		(3,089	)

Warranty accrual, December 31, 2011	$	3,177

Business Combinations

12 Months Ended

Dec. 31, 2011

Business Combinations

Note 4. Business Combinations

On April 29, 2011, we completed the acquisition of Cadent for an aggregate cash purchase price of approximately $187.6 million. Cadent is a 3D digital scanning solutions for orthodontics and dentistry. We believe that the combination of Align’s and Cadent’s technologies and capabilities creates greater growth opportunities for Align by bringing innovative new Invisalign treatment tools to customers and by extending the value of intra-oral scanning in dental practices.

The following table summarizes the allocation of the preliminary purchase price as of April 29, 2011 (in thousands):


Assets	$	15,745
Property, plant and equipment		3,624
Acquired identifiable intangible assets:
Trademarks (one to fifteen-year useful lives)		7,100
Existing technology (thirteen year useful life)		12,600
Customer relationships (eleven year useful life)		33,500
Goodwill		134,905
Liabilities assumed		(19,886	)

Total	$	187,588

The preliminary allocation is based on estimates, assumptions, valuations and other studies which have not progressed to a stage where there is sufficient information to make a definitive allocation. Accordingly, the allocation will remain preliminary until we have all information to finalize the allocation of the purchase price. We have incurred direct transaction costs of approximately $6.4 million that include investment banking, legal and accounting fees, and other external costs directly related to the acquisition. These costs were expensed as incurred as part of our operating expenses.

Goodwill of $134.9 million represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets, and represents the expected synergies of the transaction and the knowledge and experience of the workforce in place. None of this goodwill will be deductible for tax purposes. Under the applicable accounting guidance, goodwill will not be amortized but will be tested for impairment on an annual basis or more frequently if certain indicators are present. As of December 31, 2011, we allocated approximately $76.9 million of the goodwill from the Cadent acquisition to our Scanners and CAD/CAM Services reporting unit and approximately $58.0 million to our Clear Aligner reporting unit. We allocated this goodwill to our reporting units based on the expected relative synergies generated by the acquisition.

For the post-acquisition period of April 30, 2011 through December 31, 2011, Cadent contributed revenues of approximately $28.0 million and gross profit of approximately $6.5 million. Sales, marketing, development and administrative activities for our Clear Aligner and Scanners and CAD/CAM Services reporting units were integrated during the post-acquisition period, therefore information below gross profit is not available.

The following table presents the results of Align and Cadent for year ended December 31, 2011 and 2010, on a pro forma basis, as though the companies had been combined as of the beginning of January 1, 2011 and 2010. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of January 1, 2011 and 2010 or of results that may occur in the future (in thousands):


	Pro forma Net Revenues and Net Profit
	Year Ended December 31,
	2011		2010
Net revenues	$	492,468	$	425,025

Net profit	$	62,416	$	69,952

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

Goodwill and Intangible Assets

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+ Details

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

Note 5. Goodwill and Intangible Assets

Goodwill

The change in the carrying value of goodwill for the year ended December 31, 2011 is as follows (in thousands):


Balance as of December 31, 2010	$	478
Goodwill from the Cadent acquisition		134,905

Balance as of December 31, 2011	$	135,383

Goodwill of $134.9 million as a result of the Cadent acquisition represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets, and represents the expected relative synergies of the transaction and the knowledge and experience of the workforce in place. Under the applicable accounting guidance, goodwill will not be amortized but will be tested for impairment on an annual basis or more frequently if certain indicators are present.

The following table summarizes goodwill by reportable segment for the years ended December 31, 2011 and 2010 (in thousands):


	Clear Aligner		Scanners and CAD/CAM Services		Total
Balance as of December 31, 2011
Goodwill	$	58,445	$	76,938	$	135,383
Balance as of December 31, 2010
Goodwill	$	478	$	—	$	478

We conduct our goodwill impairment test annually, during the fourth quarter, or whenever events or changes in facts and circumstances indicate that the fair value of the reporting unit may be less than its carrying amount. For the annual goodwill impairment test, we use the income approach, the market approach, or a combination thereof, to determine each reporting unit’s fair value. The income approach provides an estimate of fair value based on discounted expected future cash flows. The market approach provides an estimate of fair value using various prices or market multiples applied to the reporting unit’s operating results and then applying an appropriate control premium. During the fiscal year 2011 annual goodwill impairment test under the first step, during the fourth quarter, we used a combination of approaches to estimate each reporting unit’s fair value. We believed that at the time of impairment testing performed, the income approach and the market approach were equally representative of a reporting unit’s fair value.

Determining the fair value of a reporting unit or an intangible asset requires judgment and involves the use of significant estimates and assumptions. We based the fair value estimates on assumptions we believe to be reasonable, but are inherently uncertain. Estimates and assumptions with respect to the determination of the fair value of our reporting units using the income approach include, among other inputs, our operating forecast and revenue growth rates.

Our estimates of revenues and costs are based on historical data, various internal estimates and a variety of external sources, and are developed as part of our regular long-range planning process. Based on the goodwill impairment analysis results during the fourth quarter of 2011, we determined that no impairment needed to be recorded as the fair value of our reporting units were significantly in excess of the carrying value. During the fiscal year ended December 31, 2011, there were no facts and circumstances that indicated that the fair value of the reporting units may be less than their current carrying amount.

Intangible Assets

Acquired Intangible Assets

Information regarding our acquired intangible assets as a direct result from the Cadent acquisition is being amortized as follows (in thousands):


	Gross Carrying Amount as of April 29, 2011		Accumulated Amortization			Net Carrying Value as of December 31, 2011
Trademarks	$	7,100	$	(404	)	$	6,696
Existing technology		12,600		(735	)		11,865
Customer relationships		33,500		(2,039	)		31,461

	$	53,200	$	(3,178	)	$	50,022

Amortization of the acquired existing technology is recorded in cost of revenue, while the amortization of acquired trademarks and customer relationships are included in operating expenses. The following table summarizes the amortization expense of acquired intangible assets for the periods indicated (in thousands):


	Year Ended December 31, 2011
Amortization of acquired intangible assets
In cost of revenue	$	735
In operating expense		2,443

Total	$	3,178

The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2011 is as follows (in thousands):


Fiscal Year
2012	$	4,619
2013		4,519
2014		4,475
2015		4,453
2016		4,453
Thereafter		27,503

Total	$	50,022

Non-compete Agreements

The non-compete intangible assets represent agreements received in conjunction with the October 2006 OrthoClear Agreement at gross value of $14.0 million. These assets were amortized on a straight-line basis over the expected useful life of five years. As of December 31, 2010, the net carrying value was approximately $2.2 million (net of $11.8 million of accumulated amortization). We amortized the remaining $2.2 million during 2011, and as of December 31, 2011, the non-compete agreements were fully amortized.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

Litigation Settlements

12 Months Ended

Dec. 31, 2011

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. There was no litigation settlement during 2011.

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. There was no insurance settlement during 2011.

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 alleged that we implemented unfair and fraudulent requirements for the prescription of Invisalign through the Invisalign Proficiency Requirements for minimum case submission and continuing education credits 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 sought 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. On December 23, 2010, the Court granted preliminary approval of the proposed settlement and on April 8, 2011, granted final approval of the settlement. The settlement took effect on May 18, 2011. Under the terms of the settlement, class members who did not elect to receive the cash remedy prior to the Court-ordered deadline will be reinstated to prescribe Invisalign treatment after the effective date under certain circumstances. In January 2011, we deposited approximately $8.0 million into an escrow account to pay eligible class members who elected the cash remedy, as well as legal fees and other costs. We recorded a total litigation settlement charge of $4.5 million during the third and fourth quarter of 2010 for this settlement. In early June 2011, payments were made from the escrow account to class members who elected the cash remedy and the remaining balance of the escrow has been refunded to Align, except for a nominal amount which has been retained for administrative purposes. As of December 31, 2011, we have no further liability related to this matter.

Legal Proceedings

12 Months Ended

Dec. 31, 2011

Legal Proceedings

Note 7. Legal Proceedings

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 on June 8, 2011, the Court granted our motion to dismiss with leave to amend. On July 22, 2011, the lead plaintiff filed a second amended complaint adding allegations that Align and Mr. Prescott issued a number of purportedly false statements throughout the class period concerning our ClinAdvisor product. Align and Mr. Prescott moved to dismiss the amended complaint and on February 3, 2012, the Court granted our motion to dismiss with leave to amend. We believe the lawsuit to be without merit and intend to vigorously defend ourselves. We believe there is no sufficient evidence to indicate that a loss had been incurred as of December 31, 2011.

Credit Facilities

12 Months Ended

Dec. 31, 2011

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, 2011, we had no outstanding borrowings under this credit facility and are in compliance with the financial covenants.

Commitments and Contingencies

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

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 2017 and thereafter and provide for pre-negotiated fixed rental rates during the terms of the lease.

We have a facility in San Jose, Costa Rica used for the digital planning of our clear aligners and interpretation for our iTero scanners. The facility comprises approximately 63,000 square feet of manufacturing and office space. The monthly rent in 2011 for the Costa Rica facility is approximately $87,000. 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 and components of our intra-oral scanners. This facility comprises of approximately 68,000 square feet of manufacturing and office space with a monthly rent in 2011 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. In 2011, the original lease agreement was amended to expand our Amsterdam facility to approximately 26,000 square feet of office space. This lease will expire in May 2017 and, the monthly rent in 2011 for the Amsterdam facility is approximately $45,000.

Our U.S. headquarters are located in San Jose, California. The facility comprises of approximately 129,000 square feet used for research and development and administration. The lease agreement commenced in June 2010 and expires in August 2017. The monthly rent in 2011 for our corporate headquarters is approximately $150,000.

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 $6.1 million, $4.7 million, and $3.8 million, for the years ended December 31, 2011, 2010 and 2009, respectively.

Minimum future lease payments for non-cancelable leases as of December 31, 2011, are as follows (in thousands):


Fiscal Year	Operating leases
2012		7,177
2013		5,394
2014		4,190
2015		4,087
2016		4,133
Thereafter		2,919

Total minimum lease payments	$	27,900

The entire disclosure for commitments and contingencies.

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+ Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2011

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 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^theach 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 of options cancelled or shares repurchased, can be added to the shares available under the 2005 Incentive Plan. This plan was set to expire 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.

On May 19, 2011 the Shareholders approved an increase of 3,000,000 shares to the 2005 Incentive Plan (as amended) for a total reserve of 16,283,379 shares for issuance. As of December 31, 2011, we have a total of 5,470,921 shares reserved and available for issuance which includes 2,377,616 shares that have been transferred from the 2001 Stock Incentive Plan.

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 on a straight line basis. 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, 2011, 2010 and 2009 are as follows (in thousands):


	For the Years Ended December 31,
	2011		2010		2009
Cost of revenues	$	1,818	$	1,629	$	1,502
Sales and marketing		5,495		4,430		4,308
General and administrative		9,096		7,931		7,641
Research and development		2,756		2,082		1,637

Total stock-based compensation	$	19,165	$	16,072	$	15,088

Stock Options

Activity for the years ended December 31, 2011, 2010 and 2009 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 as of December 31, 2008		7,309		$	11.63
Granted		1,134			8.62
Exercised		(586	)		7.05
Cancelled or expired		(369	)		12.45

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

Outstanding as of December 31, 2010		7,815			12.99
Granted		421			22.07
Exercised		(1,894	)		10.76
Cancelled or expired		(152	)		15.54

Outstanding as of December 31, 2011		6,190		$	14.23		4.93	$	58,922

Vested and expected to vest at December 31, 2011		6,079		$	14.16		4.92	$	58,271

Exercisable at December 31, 2011		4,795		$	13.39		4.64	$	49,627

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 2011 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 December 31, 2011. 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, 2011, 2010 and 2009 was $23.7 million, $9.2 million, and $3.2 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:


	2011			2010			2009
Stock options:
Expected term (in years)		4.4			4.4			4.4
Expected volatility		60.6	%		63.3	%		62.0	%
Risk-free interest rate		1.7	%		1.9	%		1.6	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	10.87		$	9.08		$	4.32

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, 2011, there was $9.5 million of total unamortized compensation costs related to stock options and these costs are expected to be recognized over a weighted average period of 2.1 years. For the year ended December 31, 2011, the total recognized tax effect from exercised options was $1.5 million.

Restricted Stock Units

The fair value of nonvested restricted stock units (“RSUs”) is based on our closing stock price on the date of grant. A summary for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands, except years and per share amounts):


	Shares Underlying RSUs			Average Grant Date Fair Value Price per Share		Weighted Remaining Vesting Period (in years)		Aggregate Intrinsic Value
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
Granted		799			21.24
Vested and released		(416	)		13.94
Forfeited		(80	)		17.53

Nonvested as of December 31, 2011		1,208		$	18.71		1.35	$	28,543

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 2011 by the number of nonvested RSUs) that would have been received by the unit holders had all RSUs been vested and released on December 31, 2011. This amount will fluctuate based on the fair market value of our stock. During 2011, of the 416,735 shares vested and released, approximately 86,840 vested shares were withheld for executive RSU tax payments, resulting in a net issuance of 329,895 shares.

The total intrinsic value of RSUs vested and released during 2011, 2010 and 2009 was $8.9 million, $5.8 million and $2.9 million, respectively. As of December 31, 2011, there was $14.2 million of total unamortized compensation costs related to RSUs, and these costs are expected to be recognized over a weighted average period of 2.5 years.

On February 18, 2011, we granted market-performance based restricted stock units (“MSU”) to our named executive officers. Each MSU represents the right to one share of Align’s common stock and will be issued through our amended 2005 Incentive Plan. The actual number of MSUs which will be eligible to vest will be based on the performance of Align’s stock price relative to the performance of the NASDAQ Composite Index over the vesting period, generally two to three years, up to 150% of the MSUs initially granted.

The following table summarizes the MSU performance as of December 31, 2011:


	Number of Shares Underlying MSUs (in thousands)			Weighted Average Remaining Vesting Period (in years )		Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2010*		—
Granted		138
Vested and released		(3	)
Forfeited		(7	)

Nonvested as of December 31, 2011		128			1.63	$	3,042

*	There were no MSU grants outstanding as of December 31, 2010.

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 2011 by the number of non-vested MSUs) that would have been received by the unit holders had all MSUs been vested and released on December 31, 2011. This amount will fluctuate based on the fair market value of our stock. During 2011, of the 2,556 shares vested and released, approximately 1,194 vested shares were withheld for executive MSU tax payments, resulting in a net issuance of 1,362 shares.

The total intrinsic value of MSUs vested and released during 2011 was immaterial. As of December 31, 2011, we expect to recognize $1.6 million of total unamortized compensation cost, net of estimated forfeitures, related to MSU over a weighted average period of 1.6 years.

The fair value of the MSUs is estimated at the grant date using a Monte Carlo simulation that includes factors for market conditions. The following weighted-average assumptions used in the Monte Carlo simulation were as follows:


	Year Ended December 31,
	2011			2010
Expected term (in years)		3.0			N/A
Expected volatility		58.4	%		N/A
Risk-free interest rate		1.3	%		N/A
Expected dividend		—			N/A
Weighted average fair value per share at grant date	$	22.12			N/A

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, 2011, we issued 318,769 shares under the 2001 Purchase Plan, which expired on January 31, 2011.

In May 2010, our shareholders approved the 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”) to replace the 2001 Purchase Plan. 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. During the year ended December 31, 2011, we issued 163,773 shares under the 2010 Purchase Plan. As of December 31, 2011, 2,236,227 shares remain available for future issuance.

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,
	2011			2010			2009
Employee Stock Purchase Plan:
Expected term (in years)		1.2			1.3			1.3
Expected volatility		43.2	%		55.8	%		74.6	%
Risk-free interest rate		0.4	%		0.4	%		0.6	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	7.29		$	7.22		$	3.78

As of December 31, 2011, there was $1.5 million of total unamortized compensation costs related to employee stock purchases. These costs are expected to be recognized over a weighted average period of 0.3 years.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (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.

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-Name Regulation S-X (SX)

-Number 210

-Section 08

-Article 4

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 15

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-Number 210

-Section 02

-Paragraph 29, 30, 31

-Article 5

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-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section E

+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans

Note 12. Employee Benefit Plans

401(k) Plan

In January 1999, we adopted a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code for our U.S. employees. This plan covers substantially all U.S. 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 $1.8 million and $1.6 million to the 401(k) plan during 2011 and 2010, respectively.

Israeli Severance Funds

As a result of our acquisition of Cadent, we have a wholly owned subsidiary in Israel. Under the Israeli severance fund law, we are required to make severance payments to dismissed employees and employees leaving employment in certain circumstances. The funding is calculated based on the salary of the employee multiplied by the number of years of employment of the applicable balance sheet date. Our Israeli employees are entitled to one month’s salary for each year of employment, or a pro-rata portion thereof. We fund the liability by monthly deposits into severance funds, and the values of these contributions are recorded in other current assets.

As of December 31, 2011 the accrued severance funds liability was approximately $2.2 million.

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Note 13. Income Taxes

As of December 31, 2011 and December 31, 2010, the components of deferred tax assets and liabilities were as follows (in thousands):


	Years Ended December 31,
	2011			2010
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	36,661		$	27,486
Credit carryforwards		8,075			7,080
Reserves and accruals		18,236			9,247
Translation gains		33			5
Stock-based compensation		9,490			7,919
Other		—			929

		72,495			52,666

Deferred tax liabilities:
Prepaid expenses		560			913
Depreciation and amortization		12,776			(5,103	)
Other		—			864

		13,336			(3,326	)

Net deferred tax assets before valuation allowance		59,159			55,992
Valuation allowance		(20,224	)		(6,079	)

Net deferred tax assets	$	38,935		$	49,913

Of the $20.2 million total valuation allowance provided against our deferred tax assets at December 31, 2011, approximately $14.8 million was attributable to acquisition-related assets, $3.7 million was attributable to foreign net operating loss carryforwards, and $1.7 million was attributable to capital losses. As of December 31,2011, 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, 2011, we had net operating loss carryforwards of approximately $96.0 million for federal purposes and $67.8 million for California state tax purposes. If not utilized, these carryforwards will begin to expire in 2026 for federal purposes and 2013 for California purposes. In addition, we had foreign net operating loss carryforwards of approximately $1.8 million net of valuation allowances, which, if not utilized will expire beginning in 2012.

We have research credit carryforwards of approximately $5.0 million for federal purposes and $3.6 million for California state tax purposes. If not utilized, the federal credit carryforwards will begin to expire in 2021. The California state credit can be carried forward indefinitely.

During fiscal year 2011, the amount of gross unrecognized tax benefits increased by $4.5 million. The total amount of unrecognized tax benefits was $15.5 million as of December 31, 2011, all of which would impact our effective tax rate if recognized. We have elected to 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. We do not expect any significant changes to the amount of unrecognized tax benefits within the next twelve months.

The following is a rollforward of our total gross unrecognized tax benefit for 2011 (in thousands):


Unrecognized tax benefit as of January 1, 2009	$	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

Tax positions related to current year:
Additions for uncertain tax positions		4,133
Tax positions related to prior year:
Additions for uncertain tax positions		378

Unrecognized tax benefit as of December 31, 2011	$	15,472

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 2007.

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,
	2011			2010			2009
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		1.58			2.97			1.89
Impact of differences in foreign tax rates		(14.99	)		(11.18	)		(14.99	)
Amortization of stock-based compensation		1.67			1.55			(6.53	)
Non-deductible transaction fees		1.29			—			—
Non-deductible meals & entertainment charges		0.62			0.50			(1.31	)
Valuation allowance release		(0.14	)		—			—
Other items not individually material		0.79			(1.64	)		(6.40	)

		25.82	%		27.20	%		7.66	%

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


	Years ended December 31,
	2011		2010		2009
Domestic	$	52,184	$	57,145	$	(23,075	)
Foreign		37,757		44,858		(10,818	)

Total	$	89,941	$	102,003	$	(33,893	)

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. The incentive tax rates will expire in various years beginning in 2017. 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. 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 Costa Rica corporate income tax rate that would apply, absent the incentives, is 30% for 2011. As a result of these incentives, income taxes were reduced by $15.4 million and $12.7 million in 2011 and 2010, respectively. The benefit of the tax holiday on net income per share (diluted) was $0.19 and $0.16 for 2011 and 2010, respectively. Because Costa Rica incurred a net loss in 2009, no tax benefit was realized from these incentives in 2009.

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


	Years Ended December 31,
	2011			2010		2009
Federal
Current	$	65		$	—	$	(1,196	)
Deferred		21,026			23,193		(1,437	)

		21,091			23,193		(2,633	)

State
Current		224			386		(96	)
Deferred		1,394			2,914		(1,115	)

		1,618			3,300		(1,211	)

Foreign
Current		1,263			1,197		1,280
Deferred		(747	)		60		(60	)

		516			1,257		1,220

Provision for (benefit from) income taxes	$	23,225		$	27,750	$	(2,624	)

We have not provided additional U.S. income taxes on undistributed earnings from non- U.S. operations as of December 31, 2011 because such earnings are intended to be reinvested indefinitely outside of the U.S.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Net Profit (Loss) per Share

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-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

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-Name Statement of Financial Accounting Standard (FAS)

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Net Profit (Loss) per Share

12 Months Ended

Dec. 31, 2011

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. 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, RSUs, MSUs 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,
	2011		2010		2009
Numerator:
Net profit (loss)	$	66,716	$	74,253	$	(31,269	)

Denominator:
Weighted-average common shares outstanding, basic		77,988		75,825		69,094
Dilutive effect of potential common stock		2,306		2,255		—

Total shares, diluted		80,294		78,080		69,094

Net profit (loss) per share, basic	$	0.86	$	0.98	$	(0.45	)

Net profit (loss) per share, diluted	$	0.83	$	0.95	$	(0.45	)

For the years ended December 31, 2011, 2010 and 2009 stock options, RSUs, MSUs and employee stock purchases totaling 1.6 million, 3.0 million, and 9.3 million, respectively, were excluded from diluted net profit (loss) per share because of their anti-dilutive effect.

Comprehensive Income (Loss)

The entire disclosure for earnings per share.

+ References+ Details

Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2011

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,
	2011			2010			2009
Net profit (loss)	$	66,716		$	74,253		$	(31,269	)
Change in unrealized gain/(loss) on available-for-sale securities		10			(19	)		18
Foreign currency translation adjustments		(98	)		(302	)		168

Comprehensive income (loss)	$	66,628		$	73,932		$	(31,083	)

The entire disclosure for comprehensive income. Includes, but is not limited to, 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 (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 (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 (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 (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

Supplemental Cash Flow Information

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-URI http://asc.fasb.org/extlink&oid=6522872

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2011

Note 16. Supplemental Cash Flow Information

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


	Years Ended December 31,
	2011		2010		2009
Taxes paid	$	1,953	$	1,894	$	2,004

Interest paid	$	51	$	19	$	84

Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	$	1,611	$	906	$	1,790

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

Unclaimed merger consideration	$	4,026	$	—	$	—

Segments and Geographical Information

The entire disclosure for supplemental cash flow activities, including cash, noncash, and part noncash transactions, for the period. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period.

+ References+ Details

Segments and Geographical Information

12 Months Ended

Dec. 31, 2011

Note 17. Segments and Geographical Information

Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Currently, the CODM is the Chief Executive Officer. We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. The performance measures of our reportable segments include net revenues and gross profit. Additionally, the accounting policies for our reportable segments follow the policies described in Note 1 “Summary of Accounting Policies” in the Notes to our Consolidated Financial Statements.

Effective in the fourth quarter of 2011, we have grouped our operations into two reportable segments: Clear Aligner segment and Scanners and CAD/CAM Services segment. These changes in our reportable segments did not change our reporting units.

•

Our Clear Aligner segment consists of our Invisalign system which includes Invisalign Full, Express/Lite, Teen, Assist, Vivera retainers, along with our training and ancillary products for treating malocclusion.

•

Our Scanners and CAD/CAM Services consist of intra-oral scanning systems and additional services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. This segment includes our iTero scanners, iOC scanners, and OrthoCAD services.

These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocating resources (in thousands):


	Clear Aligner		Scanners and CAD/CAM Services (1)		Total
For the Year Ended December 31, 2011
Segment revenue	$	451,713	$	28,028	$	479,741

Gross profit	$	354,700	$	6,583	$	361,283

For the Year Ended December 31, 2010
Segment revenue	$	387,126	$	—	$	387,126

Gross profit	$	303,417	$	—	$	303,417

For the Year Ended December 31, 2009
Segment revenue	$	312,333	$	—	$	312,333

Gross profit	$	233,492	$	—	$	233,492

As of December 31 , 2011
Total assets including goodwill	$	469,084	$	180,180	$	649,264

Goodwill	$	58,445	$	76,938	$	135,383

As of December 31, 2010
Total assets including goodwill	$	476,943	$	—	$	476,943

Goodwill	$	478	$	—	$	478

As of December 31, 2009
Total assets including goodwill	$	355,240	$	—	$	355,240

Goodwill	$	478	$	—	$	478

(1)	Our Scanners and CAD/CAM Services reportable operating segment was the result of our acquisition of Cadent on April 29, 2011.

Geographical Information

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


	For the Years Ended December 31,
	2011		2010		2009
Net revenues (1):
United States	$	359,936	$	290,847	$	237,033
the Netherlands		109,831		92,032		72,245
Other international		9,974		4,247		3,055

Total net revenues	$	479,741	$	387,126	$	312,333


	As of December 31,
	2011		2010		2009
Long-lived assets:
United States	$	45,720	$	31,381	$	24,547
the Netherlands		1,726		837		1,018
Other international		9,261		1,919		1,375

Total long-lived assets	$	56,707	$	34,137	$	26,940

(1)	Revenues are attributed to countries based on location of where revenue is recognized.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Restructurings and Exit Activities

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-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 30

-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

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+ Details

Restructurings and Exit Activities

12 Months Ended

Dec. 31, 2011

Note 18. Restructurings and Exit Activities

Restructurings

In 2009, we incurred approximately $1.3 million of costs related to severance and termination benefits resulting from the restructuring plans in July and October of 2008 to increase efficiencies across the organization and lower the overall cost structure. There were no costs incurred relating to the restructuring plans during 2010 or 2011.

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


	Severance and Benefits
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 and there were no restructuring plans in 2010 or 2011.

Exit Activities

In the third quarter of 2011, we announced our plan to consolidate our Scanners and CAD/CAM services activities based in Carlstadt, New Jersey with our existing manufacturing and shared services organizations in order to optimize efficiency, consolidate customer-facing functions, and reduce operating cost. The exit of our New Jersey operations includes a total reduction of 119 full time headcount in Carlstadt, New Jersey. These actions include a phased transition of our CAD/CAM services, intra-oral scanner customer care, intra-oral scanner distribution and repair into our existing shared services organization in San Jose, Costa Rica and our manufacturing facilities in Juarez, Mexico. Additionally, all accounting and finance functions will be consolidated into our corporate headquarters in San Jose, California. The transition began in the fourth quarter of 2011 and is expected to be completed by the third quarter of 2012. Once the consolidation is complete, we expect to realize annualized net savings of approximately $4.0 million per year.

Activity and liability balances related to this exit activity for 2011 are as follows (in thousands):


	Severance and Benefits
Beginning balance at December 31, 2010	$	—
Exist cost incurred during the period		1,083
Cash payments		(73	)

Balance at December 31, 2011	$	1,010

During 2011, we incurred approximately $1.1 million in exit costs of which approximately $0.8 million were recorded in our cost of revenue and $0.3 million operating expenses.

SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details

SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 31, 2011

SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES


	Balance at Beginning of Period		Additions (reductions) to Costs and Expenses			Write offs			Charged to Other Accounts (1)		Reclass from Other Accounts			Balance at End of Period
	(in thousands)
Allowance for doubtful accounts and returns:
Year ended December 31, 2009	$	612	$	708		$	(305	)	$	—	$	18		$	1,033
Year ended December 31, 2010	$	1,033	$	195		$	(482	)	$	—	$	(11	)	$	735
Year ended December 31, 2011	$	735	$	117		$	(70	)	$	—	$	(2	)	$	780
Allowance for deferred tax assets:
Year ended December 31, 2009	$	6,200	$	(18	)	$	—		$	—	$	—		$	6,182
Year ended December 31, 2010	$	6,182	$	(103	)	$	—		$	—	$	—		$	6,079
Year ended December 31, 2011	$	6,079	$	(680	)	$	—		$	14,825	$	—		$	20,224

(1)	For the year ended December 31, 2011, we increased the valuation allowance in connection with acquired deferred tax assets and non-U.S. net operating losses, which resulted in a corresponding increase to goodwill, related to the Cadent acquisition.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Business Description

Business Description

Basis of presentation and preparation

Basis of presentation and preparation

Use of estimates

Use of estimates

Fair value of financial instruments

Fair value of financial instruments

The carrying amounts of our cash, accounts receivable, accounts payable and other current liabilities approximate their fair value.

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

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Cash and cash equivalents

Cash and cash equivalents

Restricted cash

Restricted cash

Marketable Securities

Marketable securities

We invest primarily in money market funds, agency, foreign and domestic corporate bonds.

Foreign currency

Foreign currency

Certain risks and uncertainties

Certain risks and uncertainties

Inventories

Inventories

Property, Plant and Equipment

Property, plant and equipment

Goodwill and finite-lived purchased intangible assets

Goodwill and finite-lived purchased intangible assets

Impairment of goodwill, finite-lived purchased intangible assets and long-lived assets

Impairment of goodwill, finite-lived purchased intangible assets and long-lived assets

Development costs for internal use software

Development costs for internal use software

Product Warranty

Product Warranty

Clear Aligner

Scanners and CAD/CAM Services

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Revenue recognition

Revenue Recognition

•

Clear Aligner

Scanners and CAD/CAM Services

Services: Service revenue, including iTero restorative and all OrthoCAD services are recognized upon delivery or ratably over the contract term as the specified services are performed.

Shipping and Handling Costs

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

Research and development costs are expensed as incurred.

Advertising costs

Advertising costs

Income taxes

Income taxes

Stock-based compensation

Stock-based compensation

Comprehensive income (loss)

Comprehensive income (loss)

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Marketable Securities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Short-Term And Long-Term Marketable Securities

We had the following investments (in thousands):

Short-term


December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate bonds	$	4,135	$	—	$	(1	)	$	4,134
Foreign bonds		1,248		—		(5	)		1,243
Agency bonds		2,015		3		—			2,018

Total	$	7,398	$	3	$	(6	)	$	7,395

We did not have any long-term marketable securities as of December 31, 2011.

Short-term


December 31, 2010	Amortized Cost		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 Cost		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

Financial Assets Measured At Fair Value On A Recurring Basis

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2011 and 2010 (in thousands):


Description	Balance as of December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	86,897	$	86,897		—

Short-term investments:
Corporate bonds		4,134		—		4,134
Foreign bonds		1,243		—		1,243
Agency bonds		2,018		—		2,018

Other assets:
Israeli severance funds		1,859		—		1,859

	$	96,151	$	86,897	$	9,254


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

Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt.

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

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

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

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+ Details

Property, Plant and Equipment

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by 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 (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References+ Details

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Inventories

Inventories consist of the following (in thousands):


	December 31,
	2011		2010
Raw materials	$	4,542	$	1,272
Work in process		2,486		1,030
Finished goods		2,374		242

	$	9,402	$	2,544

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


	Useful Life (in years )	December 31,
	Useful Life (in years )	2011			2010
Clinical and manufacturing equipment	5	$	59,991		$	48,373
Computer hardware	3		19,096			16,246
Computer software	3-5		18,972			12,776
Furniture and fixtures	5		5,797			4,873
Leasehold improvements	Shorter of lease term or economic life of the asset		4,588			3,406
Building	20		1,913			—
Land	N/A		1,162			—
Construction in progress	N/A		17,913			12,784

Total			129,432			98,458
Less: Accumulated depreciation and amortization			(75,467	)		(67,774	)

		$	53,965		$	30,684

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2011		2010
Accrued payroll and benefits	$	41,827	$	26,551
Accrued litigation settlement		—		4,549
Accrued income taxes		426		1,936
Accrued sales rebate		8,358		3,826
Accrued sales tax and value added tax		7,052		2,940
Accrued warranty		3,177		2,607
Accrued sales and marketing expenses		3,508		2,955
Accrued accounts payable		3,048		3,235
Unclaimed merger consideration		4,026		—
Other		5,178		2,759

Total	$	76,600	$	51,358

Warranty accrual

Warranty accrual as of December 31, 2011 and 2010 consists of the following activity (in thousands):


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

Charged to cost of revenues		3,319
Assumed warranty from Cadent		340
Actual warranty expenditures		(3,089	)

Warranty accrual, December 31, 2011	$	3,177

Schedule of Purchase Price

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2011

The following table summarizes the allocation of the preliminary purchase price as of April 29, 2011 (in thousands):


Assets	$	15,745
Property, plant and equipment		3,624
Acquired identifiable intangible assets:
Trademarks (one to fifteen-year useful lives)		7,100
Existing technology (thirteen year useful life)		12,600
Customer relationships (eleven year useful life)		33,500
Goodwill		134,905
Liabilities assumed		(19,886	)

Total	$	187,588

Pro Forma Financial Information


	Pro forma Net Revenues and Net Profit
	Year Ended December 31,
	2011		2010
Net revenues	$	492,468	$	425,025

Net profit	$	62,416	$	69,952

Summary of Goodwill by Reportable Segment

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References+ Details

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Goodwill

The change in the carrying value of goodwill for the year ended December 31, 2011 is as follows (in thousands):


Balance as of December 31, 2010	$	478
Goodwill from the Cadent acquisition		134,905

Balance as of December 31, 2011	$	135,383

The following table summarizes goodwill by reportable segment for the years ended December 31, 2011 and 2010 (in thousands):


	Clear Aligner		Scanners and CAD/CAM Services		Total
Balance as of December 31, 2011
Goodwill	$	58,445	$	76,938	$	135,383
Balance as of December 31, 2010
Goodwill	$	478	$	—	$	478

Schedule Of Amortized Intangible Assets

Information regarding our acquired intangible assets as a direct result from the Cadent acquisition is being amortized as follows (in thousands):


	Gross Carrying Amount as of April 29, 2011		Accumulated Amortization			Net Carrying Value as of December 31, 2011
Trademarks	$	7,100	$	(404	)	$	6,696
Existing technology		12,600		(735	)		11,865
Customer relationships		33,500		(2,039	)		31,461

	$	53,200	$	(3,178	)	$	50,022

Amortization Expense Of Acquired Intangible Assets

The following table summarizes the amortization expense of acquired intangible assets for the periods indicated (in thousands):


	Year Ended December 31, 2011
Amortization of acquired intangible assets
In cost of revenue	$	735
In operating expense		2,443

Total	$	3,178

ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock

The total estimated annual future amortization expense for these acquired intangible assets as of December 31, 2011 is as follows (in thousands):


Fiscal Year
2012	$	4,619
2013		4,519
2014		4,475
2015		4,453
2016		4,453
Thereafter		27,503

Total	$	50,022

Tabular disclosure of amortizable intangibles assets, in total and by major class, including the gross carrying amount and accumulated amortization. A major class is composed of intangible assets that can be grouped together because they are similar, either by their nature or by their use in the operations of a company.

+ References+ Details

Schedule of Future Lease Payments

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Minimum future lease payments for non-cancelable leases as of December 31, 2011, are as follows (in thousands):


Fiscal Year	Operating leases
2012		7,177
2013		5,394
2014		4,190
2015		4,087
2016		4,133
Thereafter		2,919

Total minimum lease payments	$	27,900

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2011

Stock-based Compensation Expense

The stock-based compensation expense related to all of our stock-based awards and employee stock purchases for the years ended December 31, 2011, 2010 and 2009 are as follows (in thousands):


	For the Years Ended December 31,
	2011		2010		2009
Cost of revenues	$	1,818	$	1,629	$	1,502
Sales and marketing		5,495		4,430		4,308
General and administrative		9,096		7,931		7,641
Research and development		2,756		2,082		1,637

Total stock-based compensation	$	19,165	$	16,072	$	15,088

Stock Option Activity

Activity for the years ended December 31, 2011, 2010 and 2009 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 as of December 31, 2008		7,309		$	11.63
Granted		1,134			8.62
Exercised		(586	)		7.05
Cancelled or expired		(369	)		12.45

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

Outstanding as of December 31, 2010		7,815			12.99
Granted		421			22.07
Exercised		(1,894	)		10.76
Cancelled or expired		(152	)		15.54

Outstanding as of December 31, 2011		6,190		$	14.23		4.93	$	58,922

Vested and expected to vest at December 31, 2011		6,079		$	14.16		4.92	$	58,271

Exercisable at December 31, 2011		4,795		$	13.39		4.64	$	49,627

Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used

The following weighted-average assumptions used in the Monte Carlo simulation were as follows:


	Year Ended December 31,
	2011			2010
Expected term (in years)		3.0			N/A
Expected volatility		58.4	%		N/A
Risk-free interest rate		1.3	%		N/A
Expected dividend		—			N/A
Weighted average fair value per share at grant date	$	22.12			N/A

Stock Option

Weighted Average Assumptions Used for the Fair Value of Stock Options Granted Estimated at Grant Date

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:


	2011			2010			2009
Stock options:
Expected term (in years)		4.4			4.4			4.4
Expected volatility		60.6	%		63.3	%		62.0	%
Risk-free interest rate		1.7	%		1.9	%		1.6	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	10.87		$	9.08		$	4.32

Restricted Stock Units (RSUs)

Summary Of Nonvested Shares

A summary for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands, except years and per share amounts):


	Shares Underlying RSUs			Average Grant Date Fair Value Price per Share		Weighted Remaining Vesting Period (in years)		Aggregate Intrinsic Value
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
Granted		799			21.24
Vested and released		(416	)		13.94
Forfeited		(80	)		17.53

Nonvested as of December 31, 2011		1,208		$	18.71		1.35	$	28,543

Market Performance Based Restricted Stock Units

Summary Of Nonvested Shares

The following table summarizes the MSU performance as of December 31, 2011:


	Number of Shares Underlying MSUs (in thousands)			Weighted Average Remaining Vesting Period (in years )		Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2010*		—
Granted		138
Vested and released		(3	)
Forfeited		(7	)

Nonvested as of December 31, 2011		128			1.63	$	3,042

*	There were no MSU grants outstanding as of December 31, 2010.

2001 Purchase Plan

Weighted Average Assumptions Used for the Fair Value of Options Component of Purchase Plan Granted Estimated at Grant Date

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,
	2011			2010			2009
Employee Stock Purchase Plan:
Expected term (in years)		1.2			1.3			1.3
Expected volatility		43.2	%		55.8	%		74.6	%
Risk-free interest rate		0.4	%		0.4	%		0.6	%
Expected dividend		—			—			—
Weighted average fair value at grant date	$	7.29		$	7.22		$	3.78

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2011 and December 31, 2010, the components of deferred tax assets and liabilities were as follows (in thousands):


	Years Ended December 31,
	2011			2010
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	36,661		$	27,486
Credit carryforwards		8,075			7,080
Reserves and accruals		18,236			9,247
Translation gains		33			5
Stock-based compensation		9,490			7,919
Other		—			929

		72,495			52,666

Deferred tax liabilities:
Prepaid expenses		560			913
Depreciation and amortization		12,776			(5,103	)
Other		—			864

		13,336			(3,326	)

Net deferred tax assets before valuation allowance		59,159			55,992
Valuation allowance		(20,224	)		(6,079	)

Net deferred tax assets	$	38,935		$	49,913

Schedule of Unrecognized Tax Benefits Rollforward

The following is a rollforward of our total gross unrecognized tax benefit for 2011 (in thousands):


Unrecognized tax benefit as of January 1, 2009	$	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

Tax positions related to current year:
Additions for uncertain tax positions		4,133
Tax positions related to prior year:
Additions for uncertain tax positions		378

Unrecognized tax benefit as of December 31, 2011	$	15,472

Schedule of Effective Income Tax Rate Reconciliation

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,
	2011			2010			2009
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		1.58			2.97			1.89
Impact of differences in foreign tax rates		(14.99	)		(11.18	)		(14.99	)
Amortization of stock-based compensation		1.67			1.55			(6.53	)
Non-deductible transaction fees		1.29			—			—
Non-deductible meals & entertainment charges		0.62			0.50			(1.31	)
Valuation allowance release		(0.14	)		—			—
Other items not individually material		0.79			(1.64	)		(6.40	)

		25.82	%		27.20	%		7.66	%

Schedule of Income before Income Tax, Domestic and Foreign

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


	Years ended December 31,
	2011		2010		2009
Domestic	$	52,184	$	57,145	$	(23,075	)
Foreign		37,757		44,858		(10,818	)

Total	$	89,941	$	102,003	$	(33,893	)

Schedule of Components of Income Tax Expense (Benefit)

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


	Years Ended December 31,
	2011			2010		2009
Federal
Current	$	65		$	—	$	(1,196	)
Deferred		21,026			23,193		(1,437	)

		21,091			23,193		(2,633	)

State
Current		224			386		(96	)
Deferred		1,394			2,914		(1,115	)

		1,618			3,300		(1,211	)

Foreign
Current		1,263			1,197		1,280
Deferred		(747	)		60		(60	)

		516			1,257		1,220

Provision for (benefit from) income taxes	$	23,225		$	27,750	$	(2,624	)

Net Profit (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2011

Schedule Of Earnings Per Share Basic And Diluted

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,
	2011		2010		2009
Numerator:
Net profit (loss)	$	66,716	$	74,253	$	(31,269	)

Denominator:
Weighted-average common shares outstanding, basic		77,988		75,825		69,094
Dilutive effect of potential common stock		2,306		2,255		—

Total shares, diluted		80,294		78,080		69,094

Net profit (loss) per share, basic	$	0.86	$	0.98	$	(0.45	)

Net profit (loss) per share, diluted	$	0.83	$	0.95	$	(0.45	)

Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2011

Components Of Comprehensive Income

The components of comprehensive income (loss) are as follows (in thousands):


	Years Ended December 31,
	2011			2010			2009
Net profit (loss)	$	66,716		$	74,253		$	(31,269	)
Change in unrealized gain/(loss) on available-for-sale securities		10			(19	)		18
Foreign currency translation adjustments		(98	)		(302	)		168

Comprehensive income (loss)	$	66,628		$	73,932		$	(31,083	)

Schedule of Cash Flow, Supplemental Disclosures

Tabular disclosure of components of comprehensive income (loss) including, but not limited to: (a) foreign currency translation adjustments; (b) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (c) gains (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; (d) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (e) unrealized holding gains (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; (f) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (g) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2011

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


	Years Ended December 31,
	2011		2010		2009
Taxes paid	$	1,953	$	1,894	$	2,004

Interest paid	$	51	$	19	$	84

Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	$	1,611	$	906	$	1,790

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

Unclaimed merger consideration	$	4,026	$	—	$	—

Segments and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Segment Reporting Information, by Segment

These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocating resources (in thousands):


	Clear Aligner		Scanners and CAD/CAM Services (1)		Total
For the Year Ended December 31, 2011
Segment revenue	$	451,713	$	28,028	$	479,741

Gross profit	$	354,700	$	6,583	$	361,283

For the Year Ended December 31, 2010
Segment revenue	$	387,126	$	—	$	387,126

Gross profit	$	303,417	$	—	$	303,417

For the Year Ended December 31, 2009
Segment revenue	$	312,333	$	—	$	312,333

Gross profit	$	233,492	$	—	$	233,492

As of December 31 , 2011
Total assets including goodwill	$	469,084	$	180,180	$	649,264

Goodwill	$	58,445	$	76,938	$	135,383

As of December 31, 2010
Total assets including goodwill	$	476,943	$	—	$	476,943

Goodwill	$	478	$	—	$	478

As of December 31, 2009
Total assets including goodwill	$	355,240	$	—	$	355,240

Goodwill	$	478	$	—	$	478

(1)	Our Scanners and CAD/CAM Services reportable operating segment was the result of our acquisition of Cadent on April 29, 2011.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

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


	For the Years Ended December 31,
	2011		2010		2009
Net revenues (1):
United States	$	359,936	$	290,847	$	237,033
the Netherlands		109,831		92,032		72,245
Other international		9,974		4,247		3,055

Total net revenues	$	479,741	$	387,126	$	312,333


	As of December 31,
	2011		2010		2009
Long-lived assets:
United States	$	45,720	$	31,381	$	24,547
the Netherlands		1,726		837		1,018
Other international		9,261		1,919		1,375

Total long-lived assets	$	56,707	$	34,137	$	26,940

(1)	Revenues are attributed to countries based on location of where revenue is recognized.

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

+ References+ Details

Schedule of Restructuring and Related Costs

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

Restructurings and Exit Activities (Tables)

12 Months Ended

Dec. 31, 2011

Restructuring plan

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


	Severance and Benefits
Balance at December 31, 2008	$	2,501

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

Balance at December 31, 2009	$	—

Facility Closing

Schedule of Restructuring and Related Costs

Activity and liability balances related to this exit activity for 2011 are as follows (in thousands):


	Severance and Benefits
Beginning balance at December 31, 2010	$	—
Exist cost incurred during the period		1,083
Cash payments		(73	)

Balance at December 31, 2011	$	1,010

Tabular disclosure of restructuring and related costs by type of restructuring including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost.

+ References+ Details

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010	Dec. 31, 2009
Significant Accounting Policies [Line Items]
Restricted cash	$ 4,026,000
Foreign currency translation, net		100,000	100,000
Gains (losses) from foreign currency remeasurement	0	600,000	(300,000)
Scanners, Warranty period	1 year
Advertising cost	$ 21,200,000	$ 20,200,000	$ 18,100,000
Property, plant and equipment, minimum estimated useful lives (in years)	3
Property, plant and equipment, maximum estimated useful lives (in years)	5
Other intangible assets, estimated useful lives	1
Other intangible assets, estimated useful lives	15
Building
Significant Accounting Policies [Line Items]
Property, plant and equipment, maximum estimated useful lives (in years)	20
Software Development
Significant Accounting Policies [Line Items]
Capitalized software costs, estimated useful lives	3
Maximum
Significant Accounting Policies [Line Items]
Original maturity of highly liquid investments included in Cash and cash equivalents	3 months

Short-Term and Long-Term Marketable Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 7,398	$ 8,615
Gross Unrealized Gains	3	1
Gross Unrealized Losses	(6)	(1)
Fair Value	7,395	8,615
Short-term Investments \| Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,135
Gross Unrealized Losses	(1)
Fair Value	4,134
Short-term Investments \| Foreign bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,248	705
Gross Unrealized Losses	(5)
Fair Value	1,243	705
Short-term Investments \| Agency bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,015
Gross Unrealized Gains	3
Fair Value	2,018
Short-term Investments \| Corporate Bonds and Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,012
Gross Unrealized Losses		(1)
Fair Value		3,011
Short-term Investments \| Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,900
Fair Value		1,900
Short-term Investments \| Discount notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,998
Gross Unrealized Gains		1
Fair Value		2,999
Long-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		9,102
Gross Unrealized Losses		(13)
Fair Value		9,089
Long-term Investments \| Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		5,748
Gross Unrealized Losses		(11)
Fair Value		5,737
Long-term Investments \| Foreign bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,307
Gross Unrealized Losses		(1)
Fair Value		1,306
Long-term Investments \| Agency bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,047
Gross Unrealized Losses		(1)
Fair Value		$ 2,046

This item represents the cost of debt and equity securities, which are categorized neither as held-to-maturity nor trading, net of adjustments including accretion, amortization, collection of cash, previous other-than-temporary impairments recognized in earnings (less any cumulative-effect adjustments recognized, as defined), and fair value hedge accounting adjustments, if any.

+ References+ Details

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References+ Details

This item represents the gross unrealized gains for securities, at a point in time, which are categorized neither as held-to-maturity nor trading securities.

+ References+ Details

Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Short-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	$ 7,395	$ 8,615
Short-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	1,243	705
Short-term Investments \| Corporate Bonds and Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		3,011
Short-term Investments \| Discount notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		2,999
Short-term Investments \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,900
Long-term Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		9,089
Long-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,306
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	96,151	182,426
Fair Value, Measurements, Recurring \| Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	1,859
Fair Value, Measurements, Recurring \| Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money market funds	86,897	164,722
Fair Value, Measurements, Recurring \| Short-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	1,243	705
Fair Value, Measurements, Recurring \| Short-term Investments \| Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	2,018
Fair Value, Measurements, Recurring \| Short-term Investments \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	4,134
Fair Value, Measurements, Recurring \| Short-term Investments \| Corporate Bonds and Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		3,011
Fair Value, Measurements, Recurring \| Short-term Investments \| Discount notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		2,999
Fair Value, Measurements, Recurring \| Short-term Investments \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,900
Fair Value, Measurements, Recurring \| Long-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,306
Fair Value, Measurements, Recurring \| Long-term Investments \| Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		2,046
Fair Value, Measurements, Recurring \| Long-term Investments \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		5,737
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	86,897	164,722
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Money market funds	86,897	164,722
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	9,254	17,704
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets	1,859
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	1,243	705
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	2,018
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments	4,134
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Corporate Bonds and Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		3,011
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Discount notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		2,999
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Short-term Investments \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,900
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Long-term Investments \| Foreign bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		1,306
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Long-term Investments \| Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		2,046
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Long-term Investments \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments		$ 5,737

+ References+ Details

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Company may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months.

+ References+ Details

Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Inventory [Line Items]
Raw materials	$ 4,542	$ 1,272
Work in process	2,486	1,030
Finished goods	2,374	242
Inventories	$ 9,402	$ 2,544

Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Useful life (Years), minimum	3
Useful life (Years), maximum	5
Property and equipment	$ 129,432	$ 98,458
Less: Accumulated depreciation and amortization	(75,467)	(67,774)
Property, plant and equipment, net	53,965	30,684
Clinical and manufacturing equipment
Property, Plant and Equipment [Line Items]
Useful life (Years)	5
Property and equipment	59,991	48,373
Computer hardware
Property, Plant and Equipment [Line Items]
Useful life (Years)	3
Property and equipment	19,096	16,246
Computer software
Property, Plant and Equipment [Line Items]
Useful life (Years), minimum	3
Useful life (Years), maximum	5
Property and equipment	18,972	12,776
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful life (Years)	5
Property and equipment	5,797	4,873
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful life	Shorter of lease term or economic life of the asset
Property and equipment	4,588	3,406
Building
Property, Plant and Equipment [Line Items]
Useful life (Years), maximum	20
Property and equipment	1,913
Land
Property, Plant and Equipment [Line Items]
Property and equipment	1,162
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment	$ 17,913	$ 12,784

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References+ Details

Gross amount, at the balance sheet date, of long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

Balance Sheet Components - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Property, Plant, and Equipment Disclosure [Line Items]
Depreciation and amortization	$ 12,112	$ 11,386	$ 10,204

The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production.

+ References+ Details

Accrued Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Accrued Liabilities [Line Items]
Accrued payroll and benefits	$ 41,827	$ 26,551
Accrued litigation settlement		4,549
Accrued income taxes	426	1,936
Accrued sales rebate	8,358	3,826
Accrued sales tax and value added tax	7,052	2,940
Accrued warranty	3,177	2,607
Accrued sales and marketing expenses	3,508	2,955
Accrued accounts payable	3,048	3,235
Unclaimed merger consideration	4,026
Other	5,178	2,759
Total	$ 76,600	$ 51,358

Warranty Accrual Activity (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Accounts Payable and Accrued Liabilities [Line Items]
Balance at beginning of period	$ 2,607	$ 2,376
Charged to cost of revenues	3,319	2,793
Assumed warranty from Cadent	340
Actual warranty expenditures	(3,089)	(2,562)
Balance at end of period	$ 3,177	$ 2,607

Business Combination - Additional Information (Detail) (USD $)	8 Months Ended
	Dec. 31, 2011	Apr. 29, 2011
Business Acquisition [Line Items]
Aggregate cash purchase price	$ 187,600,000
Direct transaction costs incurred	6,400,000
Business acquisition, goodwill		134,905,000
Contributed revenues	28,000,000
Contributed net loss	6,500,000
Scanners and CAD/CAM Services
Business Acquisition [Line Items]
Business acquisition, goodwill	76,900,000
Clear Aligner
Business Acquisition [Line Items]
Business acquisition, goodwill	$ 58,000,000

Summary of Allocation of the Preliminary Purchase Price (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 29, 2011
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Assets	$ 15,745
Property, plant and equipment	3,624
Goodwill	134,905
Liabilities assumed	(19,886)
Total	187,588
Trademarks
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Acquired identifiable intangible assets	7,100
Existing technology
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Acquired identifiable intangible assets	12,600
Customer relationships
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Acquired identifiable intangible assets	$ 33,500

The total purchase price of the acquired entity. This includes cash paid to equity interest holders of the acquired entity, fair value of debt and equity securities issued to equity holders of the acquired entity, and transaction costs paid to third parties to consummate the acquisition.

+ References+ Details

Summary of Allocation of the Preliminary Purchase Price (Parenthetical) (Detail)	12 Months Ended	1 Months Ended
	Dec. 31, 2011 Year	Apr. 29, 2011 Trademarks Year	Apr. 29, 2011 Existing technology Year	Apr. 29, 2011 Customer relationships Year
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Estimated useful lives of intangibles (years)	1	1
Estimated useful lives of intangibles (years)	15	15
Estimated useful lives of intangibles (years)			13	11

Results of Align and Cadent, on a Pro Forma Basis, as though the Companies Had Been Combined (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Business Acquisition, Pro Forma Information [Line Items]
Net revenues	$ 492,468	$ 425,025
Net profit	$ 62,416	$ 69,952

Change in the Carrying Value of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009
Goodwill [Line Items]
Balance as of December 31, 2010	$ 478	$ 478
Goodwill from the Cadent acquisition	134,905
Balance as of December 31, 2011	$ 135,383	$ 478

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 43

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 68

-Subparagraph l

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 72

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-Clause 1

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 34

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

The aggregate amount of goodwill acquired in the period and allocated to the reportable segment. The value is stated at fair value based on the purchase price allocation.

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $)					1 Months Ended	12 Months Ended
	Dec. 31, 2011	Apr. 29, 2011	Dec. 31, 2010	Oct. 31, 2006	Oct. 31, 2006 Noncompete Agreements Year	Dec. 31, 2011 Noncompete Agreements	Dec. 31, 2010 Noncompete Agreements
Goodwill and Intangible Assets Disclosure [Line Items]
Business acquisition, goodwill		$ 134,905,000
Non-compete intangible assets gross value			2,200,000	14,000,000
Intangible assets, expected useful life					5
Intangible assets, accumulated amortization	3,178,000						11,800,000
Intangible assets, amortization expense						$ 2,200,000

Summary of Goodwill by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Goodwill [Line Items]

$ 135,383

$ 478

Clear Aligner

Goodwill [Line Items]

58,445

478

Scanners and CAD/CAM Services

Goodwill [Line Items]

$ 76,938

^[1]

[1]	Our Scanners and CAD/CAM Services reportable operating segment was the result of our acquisition of Cadent on April 29, 2011.

+ Details

Intangible Assets as a Direct Result from the Cadent Acquisition (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount as of April 29, 2011	$ 53,200
Accumulated Amortization	(3,178)
Net Carrying Value as of December 31, 2011	50,022
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount as of April 29, 2011	7,100
Accumulated Amortization	(404)
Net Carrying Value as of December 31, 2011	6,696
Existing technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount as of April 29, 2011	12,600
Accumulated Amortization	(735)
Net Carrying Value as of December 31, 2011	11,865
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount as of April 29, 2011	33,500
Accumulated Amortization	(2,039)
Net Carrying Value as of December 31, 2011	$ 31,461

Total Estimated Annual Future Amortization Expense for the Acquired Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Expected Amortization Expense [Line Items]
2012	$ 4,619
2013	4,519
2014	4,475
2015	4,453
2016	4,453
Thereafter	27,503
Total	$ 50,022

Litigation Settlements - Additional Information (Detail) (USD $) Share data in Millions, unless otherwise specified	12 Months Ended		3 Months Ended	12 Months Ended		6 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2010 Settlement of Litigation Ormco	Dec. 31, 2009 Settlement of Litigation Ormco	Jan. 19, 2010 Settlement of Litigation Ormco	Dec. 31, 2010 Leiszler	Jan. 31, 2011 Leiszler
Commitments and Contingencies Disclosure [Line Items]
Litigation settlements, cash payment				$ 13,200,000
Stock purchase agreement, shares of common stock issued				7.6
Litigation settlements costs	(4,549,000)	(69,673,000)		(69,673,000)
Payment for prepaid royalties					7,000,000
Amortization of prepaid royalties	827,000	6,165,000	800,000	6,200,000
Insurance settlement	8,666,000
Proposed settlement under escrow account							8,000,000
Litigation settlement charge						$ 4,500,000

The expense charged against earnings for the periodic recognition of the advance royalties. These royalties are paid in one accounting period, but are deducted from earnings over time through amortization. For example, royalties that are required to be paid in advance of production from a mineral, oil, or gas property and amortized over the period of right to produce these items.

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Carrying amount as of the balance sheet date of amounts paid for royalties in advance of when the expense is to be recognized, which will occur within one year or in the normal operating cycle, if longer.

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Credit Facilities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 30,000,000
Line of credit, maturity date	2012-12-31
Line of credit, interest rate description	Libor plus 1.5% to 2.0%
Interest rate on borrowings at LIBOR plus, minimum	1.50%
Interest rate on borrowings at LIBOR plus, maximum	2.00%
Minimum unrestricted cash balance requirement	10,000,000
Unrestricted cash deposit	55,000,000
Line of credit, amount outstanding	$ 0
Minimum
Line of Credit Facility [Line Items]
Line of credit, unused facility fee	0.05%
Maximum
Line of Credit Facility [Line Items]
Line of credit, unused facility fee	0.125%

Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Leases Disclosure [Line Items]
Total rent expense	$ 6,100,000	$ 4,700,000	$ 3,800,000
Commitments
Leases Disclosure [Line Items]
Operating lease, expiration date	Through 2017 and thereafter
Commitments \| Costa Rica
Leases Disclosure [Line Items]
Operating lease, area of the facility	63,000
Operating lease, monthly rent		87,000
Operating lease, additional term	5 years
Operating lease, expiration date	September 2013
Commitments \| MEXICO
Leases Disclosure [Line Items]
Operating lease, area of the facility	68,000
Operating lease, monthly rent		32,000
Operating lease, expiration date	July 2013
Commitments \| Netherlands
Leases Disclosure [Line Items]
Operating lease, area of the facility	26,000
Operating lease, monthly rent		45,000
Operating lease, expiration date		May 2017
Commitments \| United States
Leases Disclosure [Line Items]
Operating lease, area of the facility	129,000
Operating lease, monthly rent	$ 150,000
Operating lease, expiration date	August 2017

This element represents the payments that the lessee is obligated to make or can be required to make in connection with a property under the terms of an agreement classified as an operating lease, excluding contingent rentals and a guarantee by the lessee of the lessor's debt and the lessee's obligation to pay (apart from the rental payments) executory costs such as insurance, maintenance, and taxes.

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Minimum Future Lease Payments for Non-Cancelable Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Operating Leased Assets [Line Items]
2012	$ 7,177
2013	5,394
2014	4,190
2015	4,087
2016	4,133
Thereafter	2,919
Total minimum lease payments	$ 27,900

The total of future contractually required payments on leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due within one year of the balance sheet date relating to leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due within the fifth year of the balance sheet date relating to leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due within the fourth year of the balance sheet date relating to leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due within the third year of the balance sheet date relating to leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due within the second year of the balance sheet date relating to leases defined as operating.

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For leases having an initial or remaining non-cancelable letter-terms in excess of one year, required rental payments due after the fifth year from the balance sheet date on leases defined as operating.

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Stockholders' Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended																1 Months Ended	12 Months Ended		12 Months Ended				1 Months Ended			12 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Stock Options Year	Dec. 31, 2011 Restricted Stock Units (RSUs) Year	Dec. 31, 2010 Restricted Stock Units (RSUs)	Dec. 31, 2009 Restricted Stock Units (RSUs)	Dec. 31, 2011 Market Performance Based Restricted Stock Units Year	Dec. 31, 2011 Market Performance Based Restricted Stock Units Minimum	Dec. 31, 2011 Market Performance Based Restricted Stock Units Maximum	Dec. 31, 2011 Employee Stock Purchase Plan 2010	Dec. 31, 2011 Employee Stock Purchase Plan 2010 Maximum	Dec. 31, 2011 Employee Stock Purchase Plan Year	Dec. 31, 2011 Stockholder Rights Plan	Dec. 31, 2011 Stockholder Rights Plan If the Rights are not exercised	Dec. 31, 2011 Stockholder Rights Plan Minimum	May 31, 2011 Incentive Plan 2005	Dec. 31, 2011 Incentive Plan 2005	May 19, 2011 Incentive Plan 2005	Dec. 31, 2011 Incentive Plan 2005 Stock Options	Dec. 31, 2011 Incentive Plan 2005 Stock Options Maximum	Dec. 31, 2011 Incentive Plan 2005 Restricted Stock and Performance Shares	Dec. 31, 2011 Incentive Plan 2005 Shares Transferred from 2001 Stock Incentive Plan	Dec. 31, 2011 Amended And Restated 2005 Stock Incentive Plan	May 31, 2010 Amended And Restated 2005 Stock Incentive Plan	Dec. 31, 2011 Amended And Restated 2005 Stock Incentive Plan Stock Options	Dec. 31, 2011 Amended And Restated 2005 Stock Incentive Plan Restricted Stock and Performance Shares	Dec. 31, 2011 Amended And Restated 2005 Stock Incentive Plan Shares Transferred from 2001 Stock Incentive Plan	Dec. 31, 2011 2001 Purchase Plan
Stockholders Equity Note [Line Items]
Preferred stock purchase right, rights declared for each outstanding share of our common stock														1
Dividend distribution, date of record														Nov. 22, 2005
Preferred stock purchase right, number of Series A Participating Preferred Stock that each right entitles stockholders to buy														0.001
Preferred stock, par value	$ 0.0001	$ 0.0001												$ 0.0001
Preferred stock purchase right, exercise price														37.00
Preferred stock purchase right, minimum ownership percentage that should be acquired or intended to be acquired to trigger exercise																15.00%
Preferred stock purchase right, expiration Date															2015-11-22
Stock incentive plan, term																					10 years					7 years
Stock incentive plan, vesting period									2 years	3 years										Over 4 years
Stock incentive plan, vesting percentage																				25.00%
Percentage of market-performance based restricted stock units eligible to vest over the vesting period										150.00%
Stock incentive plan, vesting right																				25% vesting one year from the date of grant and 1/48th each month thereafter
Shares granted as an award of restricted stock, restricted stock unit, performance share or performance unit, share reserve ratio																						2					1.5
Employee stock purchase plan, shares issued											163,773																		318,769
Shares available for issuance											2,236,227												5,000,000
Stock incentive plan, expiration date																		2010-12-31						2020-12-31
Approved increase in shares																	3,000,000								3,300,000
Shares reserved for issuance																			16,283,379					5,470,921				2,377,616
Total intrinsic value of stock options exercised	$ 23.7	$ 9.2	$ 3.2
Total intrinsic value of RSUs vested and released					$ 8.9	$ 5.8	$ 2.9
Total unamortized compensation cost				9.5	14.2			1.6					1.5
Weighted average period of total unamortized cost (in years)				2.1	2.5			1.6					0.3
Tax effect from exercised options				$ 1.5
Restricted stock units, shares vested and released					416,735	327,000	257,000	2,556
Restricted stock units, shares withheld for tax payments					86,840			1,194
Restricted stock units, net issuance					329,895			1,362
Employee stock purchase plan, purchase price as percentage of fair market value of common stock																													85.00%
Maximum number of shares available												2,400,000

Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 19,165	$ 16,072	$ 15,088
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,818	1,629	1,502
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	5,495	4,430	4,308
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	9,096	7,931	7,641
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,756	$ 2,082	$ 1,637

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

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Activity Under Stock Option Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010	Dec. 31, 2009
Number of Shares Underlying Stock Options
Outstanding beginning balance	7,815	7,488	7,309
Granted	421	1,501	1,134
Exercised	(1,894)	(913)	(586)
Cancelled or expired	(152)	(261)	(369)
Outstanding ending balance	6,190	7,815	7,488
Vested and expected to vest at December 31, 2011	6,079
Exercisable at December 31, 2011	4,795
Weighted Average Exercise Price per Share
Outstanding beginning balance	$ 12.99	$ 11.49	$ 11.63
Granted	$ 22.07	$ 17.65	$ 8.62
Exercised	$ 10.76	$ 7.87	$ 7.05
Cancelled or expired	$ 15.54	$ 14.63	$ 12.45
Outstanding ending balance	$ 14.23	$ 12.99	$ 11.49
Vested and expected to vest at December 31, 2011	$ 14.16
Exercisable at December 31, 2011	$ 13.39
Aggregate Intrinsic Value
Outstanding as of December 31, 2011	$ 58,922
Vested and expected to vest at December 31, 2011	58,271
Exercisable at December 31, 2011	$ 49,627
Weighted Average Remaining Contractual Term (in years)
Outstanding as of December 31, 2011	4.93
Vested and expected to vest at December 31, 2011	4.92
Exercisable at December 31, 2011	4.64

Weighted Average Assumptions Used for the Fair Value of Stock Options Granted Estimated at Grant Date Using Black-Scholes Option Pricing Model (Detail) (Stock Options, USD $)	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010 Year	Dec. 31, 2009 Year
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4.4	4.4	4.4
Expected volatility	60.60%	63.30%	62.00%
Risk-free interest rate	1.70%	1.90%	1.60%
Expected dividend
Weighted average fair value at grant date	$ 10.87	$ 9.08	$ 4.32

The period of time an equity-based award is expected to be outstanding. An equity-based award's expected term is generally determined based on, among other factors, the instrument's contractual term and the effects of employees' expected exercise and post-vesting employment termination behavior.

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The estimated measure of the percentage by which a share price is expected to fluctuate during a period. Volatility also may be defined as a probability-weighted measure of the dispersion of returns about the mean. The volatility of a share price is the standard deviation of the continuously compounded rates of return on the share over a specified period. That is the same as the standard deviation of the differences in the natural logarithms of the stock prices plus dividends, if any, over the period.

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Summary of Nonvested Shares (Detail) (Restricted Stock Units (RSUs), USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010	Dec. 31, 2009
Restricted Stock Units (RSUs)
Shares Underlying RSUs
Nonvested beginning balance	905,000	876,000	872,000
Granted	799,000	427,000	326,000
Vested and released	(416,735)	(327,000)	(257,000)
Forfeited	(80,000)	(71,000)	(65,000)
Nonvested ending balance	1,208,000	905,000	876,000
Average Grant Date Fair Value Price per Share
Nonvested beginning balance	$ 14.19	$ 11.95	$ 13.68
Granted	$ 21.24	$ 17.59	$ 8.56
Vested and released	$ 13.94	$ 12.72	$ 13.39
Forfeited	$ 17.53	$ 13.80	$ 12.44
Nonvested ending balance	$ 18.71	$ 14.19	$ 11.95
Weighted Remaining Vesting Period (in years)
Nonvested as of December 31, 2011	1.35
Aggregate Intrinsic Value
Nonvested as of December 31, 2011	$ 28,543

Summary of MSU Performance (Detail) (Market Performance Based Restricted Stock Units, USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Year
Market Performance Based Restricted Stock Units
Number of Shares
Granted	138,000
Vested and released	(2,556)
Forfeited	(7,000)
Nonvested ending balance	128,000
Weighted Average Remaining Contractual Term
Nonvested as of December 31, 2011	1.63
Aggregate Intrinsic Value
Nonvested as of December 31, 2011	$ 3,042

The number of non-vested equity-based payment instruments, excluding stock (or unit) options, that validly exist and are outstanding as of the balance sheet date.

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Weighted-Average Assumptions Used in the Monte Carlo Simulation (Detail) (Market Performance Based Restricted Stock Units, USD $)	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3.0
Expected volatility	58.40%
Risk-free interest rate	1.30%
Expected dividend
Weighted average fair value per share at grant date	$ 22.12

The weighted average fair value at grant date for nonvested equity-based awards issued during the period on other than stock (or unit) option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, performance target plan).

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Weighted Average Assumptions Used for the Fair Value of the Option Component of the Purchase Plan Shares Estimated at Grant Date Using Black-Scholes Option Pricing Model (Detail) (Employee Stock Purchase Plan, USD $)	12 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010 Year	Dec. 31, 2009 Year
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	1.2	1.3	1.3
Expected volatility	43.20%	55.80%	74.60%
Risk-free interest rate	0.40%	0.40%	0.60%
Expected dividend
Weighted average fair value at grant date	$ 7.29	$ 7.22	$ 3.78

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Common Stock Repurchase Program - Additional Information (Detail) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011	Oct. 27, 2011 Common Stock Repurchase Program	Dec. 31, 2011 Additional Paid-in Capital	Dec. 31, 2011 Additional Paid-in Capital	Dec. 31, 2011 Retained Earnings	Dec. 31, 2011 Retained Earnings
Share Repurchases [Line Items]
Repurchase of common stock, common stock authorized			$ 150,000,000
Repurchase of common stock, shares repurchased	300
Repurchase of common stock, average price per share	$ 24.00
Repurchase of common stock, aggregate purchase price	$ 7,800,000	$ 7,754,000		$ 2,800,000	$ 2,771,000	$ 5,000,000	$ 4,983,000

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

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Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

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Employee Benefit Plan - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Accrued severance funds liability	$ 2.2
Defined Contribution Pension Plan 401k
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Employer matching contribution as percentage of employee's salary deferral contributions		50.00%
Employer contributions amount	$ 1.8	$ 1.6
Defined Contribution Pension Plan 401k \| Maximum
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Employer matching contribution as percentage of employee's eligible compensation		6.00%

The amount of acquisition cost of a business combination allocated to a known and estimated obligation to restructure a portion of the acquired entity through a plan to exit an activity of the acquired entity, involuntarily terminate employees of the acquired entity, and relocate employees of the acquired entity.

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Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deferred tax assets:
Net operating loss and capital loss carryforwards	$ 36,661	$ 27,486
Credit carryforwards	8,075	7,080
Reserves and accruals	18,236	9,247
Translation gains	33	5
Stock-based compensation	9,490	7,919
Other		929
Deferred Tax Assets, Gross, Total	72,495	52,666
Deferred tax liabilities:
Prepaid expenses	560	913
Depreciation and amortization	12,776	(5,103)
Other		864
Deferred Tax Liabilities, Total	13,336	(3,326)
Net deferred tax assets before valuation allowance	59,159	55,992
Valuation allowance	(20,224)	(6,079)
Net deferred tax assets	$ 38,935	$ 49,913

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended							12 Months Ended			12 Months Ended	1 Months Ended	12 Months Ended
Income Taxes - Additional Information (Detail) (USD $)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2011 Acquisition-Related Assets	Dec. 31, 2011 Net Operating Loss Carryforwards, Foreign	Dec. 31, 2011 Capital Loss	Dec. 31, 2011 Internal Revenue Service (IRS)	Dec. 31, 2011 State and Local Jurisdiction	Dec. 31, 2011 State and Local Jurisdiction Research	Dec. 31, 2011 Foreign Country	Jun. 30, 2009 Foreign Country Costa Rica	Dec. 31, 2011 Foreign Country Costa Rica	Dec. 31, 2010 Foreign Country Costa Rica
Income Taxes [Line Items]
Deferred tax assets, valuation allowance	$ 20,224,000	$ 6,079,000			$ 14,800,000	$ 3,700,000	$ 1,700,000
Net operating loss carryforwards								96,000,000	67,800,000		1,800,000
Operating loss carryforward, expiration date								Beginning in 2026	Beginning in 2013		Beginning in 2012
Research credit carryforward								5,000,000		3,600,000
Research credit carryforward, expiration date								Beginning in 2021	Carried forward indefinitely
Increase in unrecognized tax benefits	4,500,000
Unrecognized tax benefits	15,472,000	10,961,000	5,929,000	2,878,000
U.S Federal statutory income tax rate	35.00%	35.00%	35.00%
Tax incentives, period												12 years
Tax incentives, expiration date												Beginning in 2017
Tax incentives, corporate income tax rate that would apply absent the incentives														30.00%
Tax incentives, reduction in income taxes													$ 15,400,000	$ 12,700,000
Tax benefit of tax holiday on net income per share (diluted)													$ 0.19	$ 0.16

Rollforward of Total Gross Unrecognized Tax Benefit (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Tax Contingency [Line Items]
Unrecognized tax benefit as of beginning of period	$ 10,961	$ 5,929	$ 2,878
Tax positions related to current year, additions for uncertain tax positions	4,133	2,742	1,691
Tax positions related to prior year, additions for uncertain tax positions	378	2,290	1,738
Tax positions related to prior year, reduction for uncertain tax positions			(378)
Unrecognized tax benefit as of end of period	$ 15,472	$ 10,961	$ 5,929

Differences Between Income Taxes Using Federal Statutory Income Tax Rate and Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation of Statutory Federal Tax Rate [Line Items]
U.S. federal statutory income tax rate	35.00%	35.00%	35.00%
State income taxes, net of federal tax benefit	1.58%	2.97%	1.89%
Impact of differences in foreign tax rates	(14.99%)	(11.18%)	(14.99%)
Amortization of stock-based compensation	1.67%	1.55%	(6.53%)
Non-deductible transaction fees	1.29%
Non-deductible meals & entertainment charges	0.62%	0.50%	(1.31%)
Valuation allowance release	(0.14%)
Other items not individually material	0.79%	(1.64%)	(6.40%)
Effective Income Tax Rate, Continuing Operations, Total	25.82%	27.20%	7.66%

Domestic and Foreign Components of Income (loss) Before Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
Domestic	$ 52,184	$ 57,145	$ (23,075)
Foreign	37,757	44,858	(10,818)
Net profit (loss) before provision for income taxes	$ 89,941	$ 102,003	$ (33,893)

Provision for (Benefit from) Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Federal
Current	$ 65		$ (1,196)
Deferred	21,026	23,193	(1,437)
Federal Income Tax Expense (Benefit), Continuing Operations, Total	21,091	23,193	(2,633)
State
Current	224	386	(96)
Deferred	1,394	2,914	(1,115)
State and Local Income Tax Expense (Benefit), Continuing Operations, Total	1,618	3,300	(1,211)
Foreign
Current	1,263	1,197	1,280
Deferred	(747)	60	(60)
Foreign Income Tax Expense (Benefit), Continuing Operations, Total	516	1,257	1,220
Provision for (benefit from) income taxes	$ 23,225	$ 27,750	$ (2,624)

Computation of Basic and Diluted Net Profit Per Share Attributable to Common Stock (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Numerator:
Net profit (loss)	$ 66,716	$ 74,253	$ (31,269)
Denominator:
Weighted-average common shares outstanding, basic	77,988	75,825	69,094
Dilutive effect of potential common stock	2,306	2,255
Total shares, diluted	80,294	78,080	69,094
Net profit (loss) per share, basic	$ 0.86	$ 0.98	$ (0.45)
Net profit (loss) per share, diluted	$ 0.83	$ 0.95	$ (0.45)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 36, 37, 38

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 5

-Section 03

-Paragraph 20

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 7

-Paragraph 18

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 21

-Article 9

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 225

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SX 210.5-03.21)

-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1252-109256

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 55

-Paragraph 52

-URI http://asc.fasb.org/extlink&oid=6945512&loc=d3e4984-109258

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.9-04.23)

-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.19)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e565-108580

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.22)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph A7

-Appendix A

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 225

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SX 210.5-03.18)

-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.19)

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 87-21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 10, 15

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 28, 29, 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 5

-Section 03

-Paragraph 19

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 20

-Article 9

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Net Income

-URI http://asc.fasb.org/extlink&oid=6518256

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Other Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6519514

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

+ Details

The sum of dilutive potential common shares or units used in the calculation of the diluted per-share or per-unit computation.

+ References+ Details

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References+ Details

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 171

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 40

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 45

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1448-109256

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Weighted-Average Number of Common Shares Outstanding

-URI http://asc.fasb.org/extlink&oid=6528421

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

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Net Profit (Loss) per Share - Additional Information (Detail) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1.6	3.0	9.3

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 13, 14

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 171

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 40

-Subparagraph c

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Diluted Earnings Per Share

-URI http://asc.fasb.org/extlink&oid=6510752

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Contingent Stock Agreement

-URI http://asc.fasb.org/extlink&oid=6508534

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Antidilution

-URI http://asc.fasb.org/extlink&oid=6505113

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

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Components of Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Comprehensive Income (Loss) [Line Items]
Net profit (loss)	$ 66,716	$ 74,253	$ (31,269)
Foreign currency translation adjustments	10	(19)	18
Change in unrealized gain/(loss) on available-for-sale securities	(98)	(302)	168
Comprehensive income (loss)	$ 66,628	$ 73,932	$ (31,083)

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 8, 9, 10, 11, 12, 13, 14

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph A5

-Appendix A

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e557-108580

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Net Income

-URI http://asc.fasb.org/extlink&oid=6518256

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Other Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6519514

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e540-108580

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6508144

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ Details

Gross appreciation or the gross loss in value of the total unsold securities, after tax, attributable to the parent entity.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 29

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 20

-URI http://asc.fasb.org/extlink&oid=6921628&loc=SL4569643-111683

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 19

-URI http://asc.fasb.org/extlink&oid=6921628&loc=SL4569616-111683

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 1A

-Subparagraph (c)(3)

-URI http://asc.fasb.org/extlink&oid=6921930&loc=SL4573702-111684

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of tax, attributable to the parent entity.

+ Details

Supplemental Cash Flow Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Cash Flow, Supplemental [Line Items]
Taxes paid	$ 1,953	$ 1,894	$ 2,004
Interest paid	51	19	84
Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	1,611	906	1,790
Stock component of litigation settlement costs			63,518
Unclaimed merger consideration	$ 4,026

The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income.

+ References+ Details

The value of the noncash (or part noncash) consideration given (for example, liability, equity) in a transaction. Noncash is defined as transactions during a period that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of a transaction not resulting in cash receipts or cash payments in the period.

+ References+ Details

Segment Information (Detail) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Segment revenue

$ 479,741

^[1],[2]

$ 387,126

^[1],[2]

$ 312,333

^[1],[2]

Total Assets including goodwill

361,283

303,417

233,492

649,264

476,943

355,240

135,383

478

Clear Aligner

Segment revenue

451,713

387,126

312,333

Total Assets including goodwill

354,700

303,417

233,492

469,084

476,943

355,240

58,445

478

Scanners and CAD/CAM Services

Segment revenue

28,028

^[3]

Total Assets including goodwill

6,583

^[3]

180,180

^[3]

$ 76,938

^[3]

[1]	Net revenues for the year ended December 31, 2011 include eight months of revenues from our Scanners and CAD/CAM Services segment of approximately $28.0 million as a result of our acquisition of Cadent on April 29, 2011. Net revenues for the year ended December 31, 2010 includes a $14.3 million release of previously deferred revenue for Invisalign Teen replacement aligners.
[2]	Revenues are attributed to countries based on location of where revenue is recognized.
[3]	Our Scanners and CAD/CAM Services reportable operating segment was the result of our acquisition of Cadent on April 29, 2011.

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References+ Details

+ Details

Net Revenues by Geographic Area (Detail) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

$ 479,741

^[1],[2]

$ 387,126

^[1],[2]

$ 312,333

^[1],[2]

United States

359,936

290,847

237,033

Netherlands

109,831

92,032

72,245

Other international

$ 9,974

$ 4,247

$ 3,055

[1]	Net revenues for the year ended December 31, 2011 include eight months of revenues from our Scanners and CAD/CAM Services segment of approximately $28.0 million as a result of our acquisition of Cadent on April 29, 2011. Net revenues for the year ended December 31, 2010 includes a $14.3 million release of previously deferred revenue for Invisalign Teen replacement aligners.
[2]	Revenues are attributed to countries based on location of where revenue is recognized.

Restructurings and Exit Activities - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011 Person	Dec. 31, 2009
Restructuring Cost and Reserve [Line Items]
Restructurings		$ 1,319,000
Restructurings and exit activities, expected reduction in headcount	119
Restructurings and exit activities, expected completion date	Sep. 30, 2012
Restructurings and exit activities, expected annualized net savings	4,000,000
Restructurings and exit activities, costs incurred	1,100,000
Cost of revenues
Restructuring Cost and Reserve [Line Items]
Restructurings and exit activities, costs incurred	800,000
Operating expense
Restructuring Cost and Reserve [Line Items]
Restructurings and exit activities, costs incurred	$ 300,000

Date when the exit and disposal activities were completed or are expected to be completed.

+ References+ Details

Discloses the amount charged against the accrued restructuring reserves, or earnings if not previously accrued, during the period for the specified type of restructuring cost.

+ References+ Details

Amount charged against earnings in the period for incurred and estimated costs associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding asset retirement obligations.

+ References+ Details

Activity and Liability Balances Related to Restructuring Plans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2009
Severance and Benefits
Beginning Balance	$ 2,501
Restructuring cost	1,319
Cash payments	(3,820)
Ending Balance

Amount of cash paid in the period to fully or partially settle a specified, previously accrued type of restructuring cost.

+ References+ Details

Activity and Liability Balances Related to Exit Activity (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2011 Facility Closing
Severance and Benefits
Beginning Balance	$ 2,501
Exist cost incurred during the period	1,319	1,083
Cash payments	(3,820)	(73)
Ending Balance		$ 1,010