^[1]

$ 269,362

$ 209,488

$ 508,082

$ 407,574

Cost of net revenues

64,146

50,854

122,239

97,850

Selling, general and administrative

205,216

158,634

385,843

309,724

Operating expenses:

121,467

100,625

233,677

188,906

Research and development

18,613

15,684

33,696

29,569

Total operating expenses

140,080

116,309

267,373

218,475

Income from operations

65,136

42,325

118,470

91,249

Interest and other income (expenses), net

125

174

(302)

(1,278)

Net income before provision for income taxes

65,261

42,499

118,168

89,971

Provision for income taxes

15,113

11,149

27,474

22,444

Net income

$ 50,148

$ 31,350

$ 90,694

$ 67,527

Net income per share:

Basic (in usd per share)

$ 0.63

$ 0.39

$ 1.14

$ 0.84

Diluted (in usd per share)

$ 0.62

$ 0.39

$ 1.11

$ 0.83

Shares used in computing net income per share:

Basic (in shares)

79,951

80,257

79,891

80,358

Diluted (in shares)

81,281

81,394

81,440

81,729

[1]	Net revenues are attributed to countries based on location of where revenue is recognized.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 50,148	$ 31,350	$ 90,694	$ 67,527
Net change in cumulative translation adjustment	83	52	(67)	(209)
Change in unrealized gains (losses) on available-for-sale securities, net of tax	323	(133)	1,475	162
Other comprehensive income (loss)	406	(81)	1,408	(47)
Comprehensive income	$ 50,554	$ 31,269	$ 92,102	$ 67,480

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 167,706	$ 167,714
Marketable securities, short-term	404,107	359,581
Accounts receivable, net of allowances for doubtful accounts and returns of $3,128 and $2,472, respectively	192,660	158,550
Inventories	22,992	19,465
Prepaid expenses and other current assets	37,942	26,700
Total current assets	825,407	732,010
Marketable securities, long-term	113,158	151,370
Property, plant and equipment, net	161,685	136,473
Goodwill and intangible assets, net	83,749	79,162
Deferred tax assets	60,051	51,416
Other assets	7,223	8,202
Total assets	1,251,273	1,158,633
Current liabilities:
Accounts payable	30,927	34,354
Accrued liabilities	107,505	107,765
Deferred revenues	160,557	129,553
Total current liabilities	298,989	271,672
Taxes Payable	41,244	37,512
Other long-term liabilities	1,182	1,523
Total liabilities	341,415	310,707
Commitments and contingencies (Note 6 and 7)
Stockholders' equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)	0	0
Common stock, $0.0001 par value (200,000 shares authorized; 79,868 and 79,500 issued and outstanding, respectively)	8	8
Additional paid-in capital	821,815	821,507
Accumulated other comprehensive income (loss), net	428	(980)
Retained earnings	87,607	27,391
Total stockholders’ equity	909,858	847,926
Total liabilities and stockholders’ equity	$ 1,251,273	$ 1,158,633

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts and returns	$ 0	$ 2,472
Preferred stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	0	79,500
Common stock, shares outstanding	0	79,500

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 90,694	$ 67,527
Adjustments to reconcile net profit to net cash provided by operating activities:
Deferred taxes	(8,608)	(5,910)
Depreciation and amortization	9,885	8,638
Stock-based compensation	26,223	24,474
Tax (shortfalls) benefits from stock-based awards	9,811	6,207
Excess tax benefit from share-based payment arrangements	(10,697)	(6,207)
Other non-cash operating activities	7,041	6,162
Changes in assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(38,433)	(22,904)
Inventories	(3,524)	(510)
Prepaid expenses and other assets	(5,025)	(4,786)
Accounts payable	(4,753)	4,902
Accrued and other long-term liabilities	4,446	8,259
Deferred revenues	29,787	12,733
Net cash provided by operating activities	106,847	98,585
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(39,025)	(26,172)
Purchase of marketable securities	(241,364)	(195,399)
Proceeds from maturities of marketable securities	210,693	148,685
Proceeds from sales of marketable securities	24,224	12,518
Other investing activities	(6,031)	46
Net cash used in investing activities	(51,503)	(60,322)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	7,002	6,036
Common stock repurchases	(35,000)	(50,781)
Equity forward contract related to accelerated share repurchase	(15,000)	(21,000)
Excess tax benefit from share-based payment arrangements	10,697	6,207
Employees’ taxes paid upon the vesting of restricted stock units	(23,207)	(15,389)
Net cash used in financing activities	(55,508)	(74,927)
Effect of foreign exchange rate changes on cash and cash equivalents	156	(1,454)
Net decrease in cash and cash equivalents	(8)	(38,118)
Cash and cash equivalents, beginning of the period	167,714	$ 199,871
Cash and cash equivalents, end of the period	$ 167,706

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2016
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") and contain all adjustments, including normal recurring adjustments, necessary to state fairly our results of operations for the three and six months ended June 30, 2016 and 2015, our comprehensive income for the three and six months ended June 30, 2016 and 2015, our financial position as of June 30, 2016 and our cash flows for the six months ended June 30, 2016 and 2015. The Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from the December 31, 2015 audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other future period, and we make no representations related thereto. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2015. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") 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, long-lived assets and goodwill, useful lives of intangible assets and property and equipment, revenue recognition, 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. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (" FASB") released Accounting Standards Update ("ASU") 2014-9 "Revenue from Contracts with Customers" (Topic 606) to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for the goods or services. The new standard defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We are required to adopt this standard starting in the first quarter of fiscal year 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. We have not yet selected a transition method, and are in the process of determining the impact that the new standard will have on our consolidated financial statements. In April 2016, the Financial Accounting Standards Board (" FASB") released ASU No. 2016-10 "Revenue from Contracts with Customers" to clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the principles for those areas of the ASU 2014-9 issued in May 2014. The effective date and the transition requirement of the amendments in this update are the same as the effective date and transition requirements of Topic 606. In May 2016, the Financial Accounting Standards Board (" FASB") released ASU No. 2016-12 "Revenue from Contracts with Customers" to address certain issues in the Topic 606 guidance on assessing the collectibility, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications at transition. The ASU provides narrow-scope improvements and practical expedients to the ASU 2014-9 issued in May 2014. The effective date and the transition requirement of the amendments in this update are the same as the effective date and transition requirements of Topic 606. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842). The FASB issued this update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The updated guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is evaluating the impact of the adoption of this update on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. This ASU will become effective for Align on January 1, 2017. Early adoption is permitted in any interim or annual period. We are currently evaluating the impact of this guidance on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses” (Topic 326). The FASB issued this update to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this update replace the existing guidance of incurred loss impairment methodology with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the update is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Align is evaluating the impact of the adoption of this update on our consolidated financial statements and related disclosures.

Marketable Securities and Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Marketable Securities and Fair Value Measurements

Note 2. Marketable Securities and Fair Value Measurements

As of June 30, 2016 and December 31, 2015, the estimated fair value of our short-term and long-term marketable securities, classified as available for sale, are as follows (in thousands):

Short-term



June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Commercial paper	$	61,412	$	19	$	—		$	61,431
Corporate bonds	178,415		109		(20		)	178,504
Municipal securities	10,365		9		—			10,374
U.S. dollar denominated foreign corporate bonds	503		—		—			503
U.S. government agency bonds	76,743		39		(4		)	76,778
U.S. government treasury bonds	73,936		81		—			74,017
Certificates of deposits	2,500		—		—			2,500
Total Marketable Securities, Short-Term	$	403,874	$	257	$	(24	)	$	404,107

Long-term



June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agency bonds	$	13,254	$	26	$	—		$	13,280
Corporate bonds	78,919		294		(7		)	79,206
U.S. government treasury bonds	14,062		58		—			14,120
Municipal securities	3,342		4		—			3,346
Asset-backed securities	494		—		—			494
Certificates of deposits	2,712		—		—			2,712
Total Marketable Securities, Long-Term	$	112,783	$	382	$	(7	)	$	113,158

Short-term



December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Commercial paper	$	38,537	$	—	$	—		$	38,537
Corporate bonds	179,765		6		(251		)	179,520
U.S. dollar denominated foreign corporate bonds	510		—		(2		)	508
Municipal securities	14,209		7		(2		)	14,214
U.S. government agency bonds	75,172		—		(53		)	75,119
U.S. government treasury bonds	51,763		1		(81		)	51,683
Total Marketable Securities, Short-Term	$	359,956	$	14	$	(389	)	$	359,581

Long-term



December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agency bonds	$	43,853	$	—	$	(178	)	$	43,675
Corporate bonds	64,012		9		(218		)	63,803
U.S. government treasury bonds	37,673		—		(107		)	37,566
Municipal securities	3,993		—		(2		)	3,991
Asset-backed securities	2,338		—		(3		)	2,335
Total Marketable Securities, Long-Term	$	151,869	$	9	$	(508	)	$	151,370

Cash and cash equivalents are not included in the table above as the gross unrealized gains and losses are not material. We have no material short-term or long-term investments that have been in a continuous unrealized loss position for greater than twelve months as of June 30, 2016 and December 31, 2015. Amounts reclassified to earnings from accumulated other comprehensive income related to unrealized gains or losses were immaterial for the three and six months ended June 30, 2016 and 2015. For the three and six months ended June 30, 2016 and 2015, realized gains or losses were immaterial.

Our fixed-income securities investment portfolio consists of commercial paper, corporate bonds, municipal securities, U.S. government agency bonds, U.S. government treasury bonds, U.S. dollar denominated foreign corporate bonds, certificates of deposits, and asset-backed securities that have a maximum effective maturity of 27 months. The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to changes in credit spreads and interest rates. We expect to realize the full value of these investments upon maturity or sale. The weighted average remaining duration of these securities was approximately 7 months and 9 months as of June 30, 2016 and December 31, 2015, respectively.

As the carrying value approximates the fair value for our short-term and long-term marketable securities shown in the tables above, the following table summarizes the fair value of our short-term and long-term marketable securities classified by maturity as of June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
Due in one year or less	$	404,107	$	359,581
Due in greater than one year	113,158		151,370
Total available for sale short-term and long-term marketable securities	$	517,265	$	510,951

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 and U.S. government treasury bonds. We did not hold any Level 1 liabilities as of June 30, 2016 and December 31, 2015.

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

Our Level 2 assets consist of commercial paper, corporate bonds, certificates of deposits, U.S. government agency bonds, asset-backed securities, municipal securities, U.S. dollar denominated foreign corporate bonds and our Israeli funds that are mainly invested in insurance policies and foreign currency forward contracts. We obtain fair values for Level 2 investments from our asset manager for each of our portfolios. Our custody bank and asset managers independently use professional pricing services to gather pricing data which may include quoted market prices for identical or comparable financial instruments, or inputs other than quoted prices that are observable either directly or indirectly, and we are ultimately responsible for these underlying estimates. The foreign currency forward contracts are valued using observable inputs such as quotations on forward foreign exchange rates. We did not hold any Level 2 liabilities as of June 30, 2016 or December 31, 2015.

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 June 30, 2016 or December 31, 2015.

The following tables summarize our financial assets measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 (in thousands):



Description	Balance as of June 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	92,328	$	92,328	$	—
Commercial paper	14,592		—		14,592
Short-term investments:
Commercial paper	61,431		—		61,431
Corporate bonds	178,504		—		178,504
U.S. dollar denominated foreign corporate bonds	503		—		503
Municipal securities	10,374		—		10,374
U.S. government agency bonds	76,778		—		76,778
U.S. government treasury bonds	74,017		74,017		—
Certificates of deposits	2,500		—		2,500
Long-term investments:
U.S. government agency bonds	13,280		—		13,280
Corporate bonds	79,206		—		79,206
U.S. government treasury bonds	14,120		14,120		—
Municipal securities	3,346		—		3,346
Asset-backed securities	494		—		494
Certificates of deposits	2,712				2,712
Prepaid expenses and other current assets:
Israeli funds	2,486		—		2,486
	$	626,671	$	180,465	$	446,206



Description	Balance as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	70,148	$	70,148	$	—
Commercial paper	36,887		—		36,887
U.S. government agency bonds	3,599		—		3,599
Corporate bonds	625		—		625
Short-term investments:
Commercial paper	38,537		—		38,537
Corporate bonds	179,520		—		179,520
U.S. dollar denominated foreign corporate bonds	508		—		508
Municipal securities	14,214		—		14,214
U.S. government agency bonds	75,119		—		75,119
U.S. government treasury bonds	51,683		51,683		—
Long-term investments:
U.S. government agency bonds	43,675		—		43,675
Corporate bonds	63,803		—		63,803
U.S. government treasury bonds	37,566		37,566		—
Municipal securities	3,991		—		3,991
Asset-backed securities	2,335		—		2,335
Prepaid expenses and other current assets:
Israeli funds	2,436		—		2,436
	$	624,646	$	159,397	$	465,249

Derivative Financial Instruments

We have in the past and may in the future enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables, which are classified within level 2 of the fair value hierarchy. The net loss on these forward contracts was immaterial for the three and six months ended June 30, 2016. The net gain or loss from the settlement of these foreign currency forward contracts is recorded in Interest and other income (expenses), net in the Consolidated Statements of Operations. We had no foreign exchange forward contracts outstanding as of June 30, 2016.

Balance Sheet Components

6 Months Ended

Jun. 30, 2016

Balance Sheet Components

Inventories

Inventories consist of the following (in thousands):



	June 30, 2016		December 31, 2015
Raw materials	$	8,217	$	9,950
Work in process	10,889		7,067
Finished goods	3,886		2,448
Total Inventories	$	22,992	$	19,465

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

Accrued liabilities

Accrued liabilities consist of the following (in thousands):



	June 30, 2016		December 31, 2015
Accrued payroll and benefits	$	55,720	$	55,430
Accrued sales and marketing expenses	9,148		7,071
Accrued sales rebates	8,752		8,486
Accrued accounts payable	8,332		13,834
Accrued sales tax and value added tax	5,339		4,801
Accrued professional fees	3,404		2,775
Accrued warranty	2,830		2,638
Accrued income taxes	3,385		2,646
Other accrued liabilities	10,595		10,084
Total Accrued Liabilities	$	107,505	$	107,765

Warranty

We regularly review the accrued warranty balances and update these balances based on historical warranty trends. Actual warranty costs incurred have not materially differed from those accrued; however, future actual warranty costs could differ from the estimated amounts.

Clear Aligner

We warrant our Invisalign products against material defects until the Invisalign case is complete. We accrue for warranty costs in cost of net 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.

Scanners

We warrant our scanners for a period of one year and accrue for these warranty costs which includes materials and labor based on estimated historical repair costs. Extended service packages may be purchased for additional fees.

Warranty accrual as of June 30, 2016 and 2015 consists of the following activity (in thousands):



	Six Months Ended June 30,
	2016			2015
Balance at beginning of period	$	2,638		$	3,148
Charged to cost of net revenues	1,993			976
Actual warranty expenditures	(1,801		)	(1,138		)
Balance at end of period	$	2,830		$	2,986

Goodwill and Long-lived Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Long-lived Assets

Goodwill and Intangible Long-lived Assets

Goodwill

The change in the carrying value of goodwill for the six months ended June 30, 2016, all attributable to our Clear Aligner reporting unit, is as follows (in thousands):



	Clear Aligner
Balance as of December 31, 2015	$	61,074
Adjustments ¹	45
Balance as of June 30, 2016	$	61,119

¹The adjustments to goodwill during the six months ended June 30, 2016 were due to foreign currency translation.

During the fourth quarter of fiscal 2015, we performed the annual goodwill impairment testing and found no impairment events as the fair value of our Clear Aligner reporting unit was significantly in excess of the carrying value.

Intangible Long-Lived Assets

Acquired intangible assets are being amortized as follows (in thousands):



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of June 30, 2016		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of June 30, 2016
Trademarks	14	$	7,100	$	(1,561	)	$	(4,179	)	$	1,360
Existing technology	13	12,600		(3,859		)	(4,328		)	4,413
Customer relationships	11	33,500		(11,888		)	(10,751		)	10,861
Patents	8	6,316		(320		)	—			5,996
Total Intangible Assets		$	59,516	$	(17,628	)	$	(19,258	)	$	22,630



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2015		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of December 31, 2015
Trademarks	15	$	7,100	$	(1,492	)	$	(4,179	)	$	1,429
Existing technology	13	12,600		(3,577		)	(4,328		)	4,695
Customer relationships	11	33,500		(10,957		)	(10,751		)	11,792
Patents	8	285		(113		)	—			172
Total Intangible Assets		$	53,485	$	(16,139	)	$	(19,258	)	$	18,088

During the second quarter of 2016, we acquired a patent for $6.0 million, which will be amortized over its remaining useful life of approximately eight years.

The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2016 is as follows (in thousands):



Fiscal Year Ending December 31,
Remainder of 2016	$	1,678
2017	3,353
2018	3,353
2019	3,346
2020	3,336
Thereafter	7,564
Total	$	22,630

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.

Credit Facilities	6 Months Ended
Credit Facilities	Jun. 30, 2016
Notes To Financial Statements [Abstract]
Credit Facilities	Credit Facilities On March 17, 2016, we amended the credit facility, and extended the maturity date to March 22, 2017. The credit facility provides for a $50.0 million revolving line of credit, with a $10.0 million letter of credit sublimit. The credit facility also requires us to maintain a minimum unrestricted cash balance of $50.0 million and comply with specific financial conditions and performance requirements. The loan bears interest, at our option, at a fluctuating rate per annum equal to the daily one-month adjusted LIBOR rate plus a spread of 1.75% or an adjusted LIBOR rate (based on one, three, six or twelve-month interest periods) plus a spread of 1.75%. As of June 30, 2016, we had no outstanding borrowings under this credit facility and were in compliance with the conditions and performance requirements.

Legal Proceedings (Notes)	6 Months Ended
Legal Proceedings (Notes)	Jun. 30, 2016
Legal Proceedings [Abstract]
Legal Proceedings	Legal Proceedings Securities Class Action Lawsuit On November 28, 2012, plaintiff City of Dearborn Heights Act 345 Police & Fire Retirement System filed a lawsuit against Align, Thomas M. Prescott (“Mr. Prescott”), Align’s former President and Chief Executive Officer, and Kenneth B. Arola (“Mr. Arola”), Align’s former Vice President, Finance and Chief Financial Officer, in the United States District Court for the Northern District of California on behalf of a purported class of purchasers of our common stock (the “Securities Action”). On July 11, 2013, an amended complaint was filed, which named the same defendants, on behalf of a purported class of purchasers of our common stock between January 31, 2012 and October 17, 2012. The amended complaint alleged that Align, Mr. Prescott and Mr. Arola violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and that Mr. Prescott and Mr. Arola violated Section 20(a) of the Securities Exchange Act of 1934. Specifically, the amended complaint alleged that during the purported class period defendants failed to take an appropriate goodwill impairment charge related to the April 29, 2011 acquisition of Cadent Holdings, Inc. in the fourth quarter of 2011, the first quarter of 2012 or the second quarter of 2012, which rendered our financial statements and projections of future earnings materially false and misleading and in violation of U.S. GAAP. The amended complaint sought monetary damages in an unspecified amount, costs and attorneys’ fees. On December 9, 2013, the court granted defendants’ motion to dismiss with leave for plaintiff to file a second amended complaint. Plaintiff filed a second amended complaint on January 8, 2014 on behalf of the same purported class. The second amended complaint states the same claims as the amended complaint. On August 22, 2014, the court granted our motion to dismiss without leave to amend. On September 22, 2014, Plaintiff filed a notice of appeal to the Ninth Circuit Court of Appeals. Briefing for the appeal was completed in May 2015 and the Ninth Circuit notified the parties that it is considering the case for possible oral arguments in October 2016. Align intends to vigorously defend itself against these allegations. Align is currently unable to predict the outcome of this amended complaint and therefore cannot determine the likelihood of loss nor estimate a range of possible loss, if any. Shareholder Derivative Lawsuit On February 1, 2013, plaintiff Gary Udis filed a shareholder derivative lawsuit against several of Align’s current and former officers and directors in the Superior Court of California, County of Santa Clara. The complaint alleges that our reported income and earnings were materially overstated because of a failure to timely write down goodwill related to the April 29, 2011 acquisition of Cadent Holdings, Inc., and that defendants made allegedly false statements concerning our forecasts. The complaint asserts various state law causes of action, including claims of breach of fiduciary duty, unjust enrichment, and insider trading, among others. The complaint seeks unspecified damages on behalf of Align, which is named solely as nominal defendant against whom no recovery is sought. The complaint also seeks an order directing Align to reform and improve its corporate governance and internal procedures, and seeks restitution in an unspecified amount, costs, and attorneys’ fees. On July 8, 2013, an Order was entered staying this derivative lawsuit until an initial ruling on our first motion to dismiss the Securities Action. On January 15, 2014, an Order was entered staying this derivative lawsuit until an initial ruling on our second motion to dismiss the Securities Action. On October 14, 2014, an Order was entered staying this derivative lawsuit until a ruling by the Ninth Circuit in the Securities Action discussed above. Align is currently unable to predict the outcome of this complaint and therefore cannot determine the likelihood of loss nor estimate a range of possible losses, if any. In addition, in the course of Align's operations, Align is involved in a variety of claims, suits, investigations, and proceedings, including actions with respect to intellectual property claims, patent infringement claims, government investigations, labor and employment claims, breach of contract claims, tax, and other matters. Regardless of the outcome, these proceedings can have an adverse impact on us because of defense costs, diversion of management resources, and other factors. Although the results of complex legal proceedings are difficult to predict and Align's view of these matters may change in the future as litigation and events related thereto unfold; Align currently does not believe that these matters, individually or in the aggregate, will materially affect Align's financial position, results of operations or cash flows.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies

Operating Leases

As of June 30, 2016, minimum future lease payments for non-cancelable operating leases are as follows (in thousands):



Fiscal Year Ending December 31,	Operating leases
Remainder of 2016	$	5,787
2017	7,308
2018	3,020
2019	784
2020	334
Thereafter	109
Total minimum future lease payments	$	17,342

Off-balance Sheet Arrangements

As of June 30, 2016, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

Indemnification Provisions

In the normal course of business to facilitate transactions in our services and products, we indemnify certain parties: customers, vendors, lessors and other parties with respect to certain matters, including, but not limited to, services to be provided by us and intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and our executive officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim.

It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of June 30, 2016, we did not have any material indemnification claims that were probable or reasonably possible.

Stock-based Compensation

6 Months Ended

Jun. 30, 2016

Stock-based Compensation

Summary of stock-based compensation expense

As of June 30, 2016, the 2005 Incentive Plan (as amended) has a total reserve of 30,169,000 shares of which 8,054,000 shares are available for issuance.

Stock-based compensation is based on the estimated fair value of awards, net of estimated forfeitures, and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and may be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation related to all of our stock-based awards and employee stock purchases for the six months ended June 30, 2016 and 2015 is as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of net revenues	$	932	$	967	$	1,893	$	1,945
Selling, general and administrative	10,843		9,771		20,677		18,542
Research and development	1,924		2,088		3,653		3,987
Total stock-based compensation	$	13,699	$	12,826	$	26,223	$	24,474

Options

Activity for the six months ended June 30, 2016 under the stock option plans is 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, 2015	496		$	15.14
Granted	—		—
Exercised	(130	)	15.17
Cancelled or expired	—		—
Outstanding as of June 30, 2016	366		$	15.13	1.26	$	23,942
Vested and expected to vest at June 30, 2016	366		$	15.13	1.26	$	23,942
Exercisable at June 30, 2016	366		$	15.13	1.26	$	23,942

There were no stock options granted during the six months ended June 30, 2016 and 2015. All compensation costs relating to stock options have been recognized as of June 30, 2016.

Restricted Stock Units (“RSU”)

A summary of the RSU activity for the six months ended June 30, 2016 is as follows (in thousands, except years):



	Number of Shares Underlying RSU		Weighted Average Grant Date Fair Value		Weighted Remaining Contractual Period	Aggregate Intrinsic Value
					(in years)
Nonvested as of December 31, 2015	2,079		$	49.45
Granted	650		65.58
Vested and released	(715	)	45.02
Forfeited	(96	)	52.12
Nonvested as of June 30, 2016	1,918		$	56.44	1.50	$	154,520

As of June 30, 2016, the total unamortized compensation cost related to RSU, net of estimated forfeitures, was $79.0 million, which we expect to recognize over a weighted average period of 2.4 years.

We have granted market-performance based restricted stock units (“MSU”) to our 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 MSU 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 MSU initially granted.

The following table summarizes the MSU activity for the six months ended June 30, 2016 (in thousands, except years):



	Number of Shares Underlying MSU		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Period	Aggregate Intrinsic Value
					(in years )
Nonvested as of December 31, 2015	611		$	51.41
Granted	218		55.77
Vested and released	(252	)	35.49
Forfeited	(39	)	56.41
Nonvested as of June 30, 2016	538		$	60.28	1.60	$	43,356

As of June 30, 2016, the total unamortized compensation costs related to the MSU, net of estimated forfeitures, was $15.6 million, which we expect to recognize over a weighted average period of 1.6 years.

Employee Stock Purchase Plan ("ESPP")

In May 2010, our stockholders approved the 2010 Employee Stock Purchase Plan ("2010 Purchase Plan") which will continue until terminated by either the Board of Directors or its administrator. The maximum number of shares available for purchase under the 2010 Purchase Plan is 2,400,000 shares. As of June 30, 2016, 1,029,526 shares remain available for purchase under the 2010 Purchase Plan.

The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:



	Six Months Ended June 30,
	2016			2015
Expected term (in years)	1.3			1.2
Expected volatility	33.7		%	31.9		%
Risk-free interest rate	0.77		%	0.26		%
Expected dividends	—			—
Weighted average fair value at grant date	$	19.96		$	15.98

As of June 30, 2016, the total unamortized compensation cost related to employee purchases was $1.1 million, which we expect to recognize over a weighted average period of 0.4 year.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Accounting for Income Taxes

Common Stock Repurchase Program	6 Months Ended
Common Stock Repurchase Program	Jun. 30, 2016
Notes To Financial Statements [Abstract]
Common Stock Repurchase	Common Stock Repurchase In April 2014, we announced that our Board of Directors had authorized a stock repurchase program ("April 2014 Repurchase Program") pursuant to which we may purchase up to $300.0 million of our common stock over the next three years. As of June 30, 2016, we have approximately $50.0 million remaining under the April 2014 Repurchase Program. On May 3, 2016, as part of our $300.0 million April 2014 Repurchase Program, we entered into an ASR to repurchase $50.0 million of our common stock (the "2016 ASR"). Under the terms of the 2016 ASR, we paid $50.0 million and received an initial delivery of approximately 0.5 million shares based on the then current market price of $74.90, which we retired. The final delivery of shares is scheduled during October 2016, with the number of shares to be determined by the Company's volume weighted-average stock price during the term of the ASR less an agreed upon discount. After the completion of the 2016 ASR, we will commence repurchasing $50.0 million of our common stock on the open market. These two actions will complete the April 2014 Repurchase Program. On April 28, 2016, we announced that our Board of Directors had authorized a plan to repurchase up to $300.0 million of the Company's stock. This latest authorization is in addition to the existing $300 million authorization announced in April 2014, which brings the total authorization to $600 million. Any purchases under this stock repurchase program may be made, from time-to-time, pursuant to open market purchases (including pursuant to Rule 10b5-1 plans), privately-negotiated transactions, accelerated stock repurchases, block trades or derivative contracts or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934.

Accounting for Income Taxes

6 Months Ended

Jun. 30, 2016

Our provision for income taxes was $15.1 million and $11.1 million for the three months ended June 30, 2016 and 2015, respectively, representing effective tax rates of 23.2% and 26.2%, respectively. Our provision for income taxes was $27.5 million and $22.4 million for the six months ended June 30, 2016 and 2015, respectively, representing effective tax rates of 23.2% and 24.9%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 35% due to certain foreign earnings, primarily from Costa Rica, which are subject to a lower tax rate, state income tax expense, the tax impact of certain stock-based compensation charges and unrecognized tax benefits. The decrease in the effective tax rate for the three and six months ended June 30, 2016 compared to the three and six months ended June 30, 2015 was primarily related to various items that are not deductible for tax purposes that remained constant between the two periods while pre-tax income increased.

We exercise significant judgment in regards to estimates of future market growth, forecasted earnings and projected taxable income in determining the provision for income taxes, and for purposes of assessing our ability to utilize any future benefit from deferred tax assets.

As of June 30, 2016, we maintained a valuation allowance of $31.7 million against our deferred tax assets which primarily relate to Israel operating loss carryforwards and Australia capital loss carryforwards. These net operating and capital loss carryforwards would result in us recording an income tax benefit if we were to conclude it is more likely than not that the related deferred tax assets will be realized. On July 1, 2016, the Company implemented a new international corporate structure which may result in a future reassessment of our need for a valuation allowance against these deferred tax assets. As a result, it is possible that we may realize a tax benefit which may have a material impact on the financial statements within the next twelve months.

Our total gross unrecognized tax benefits, excluding interest, was $42.6 million and $39.4 million as of June 30, 2016 and December 31, 2015, respectively, 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 taxes. The interest accrued as of June 30, 2016 is $1.2 million. We do not expect any significant changes to the amount of unrecognized tax benefit within the next twelve months.

We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions are U.S. federal and the State of California. For U.S. federal and state tax returns, we are no longer subject to tax examinations for years before 2000. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2007. Our subsidiary in Israel is under audit by the local tax authorities for calendar years 2006 through 2013. We are currently under audit by the California Franchise Tax Board for fiscal years 2011, 2012 and 2013.

In June 2009, the Costa Rica Ministry of Foreign Trade, an agency of the Government of Costa Rica, granted a twelve year extension of certain income 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 a reduced tax rate. In order to receive the benefit of these incentives, we must hire specified numbers of employees and maintain certain 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 2016 and 2015. Income taxes were reduced by $8.6 million and $8.2 million for the three months ended June 30, 2016 and 2015, respectively, representing a benefit to diluted net income per share of $0.11 and $0.10 in 2016 and 2015, respectively. As a result of these incentives, our income taxes were reduced by $17.2 million and $16.4 million for the six months ended June 30, 2016 and 2015, respectively, representing a benefit to diluted net income per share of $0.21 and $0.20 in 2016 and 2015, respectively.

Net Profit Per Share

6 Months Ended

Jun. 30, 2016

Net Profit Per Share

Net Income Per Share

Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes RSU, MSU, stock options and ESPP.

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



	Three Months Ended, June 30,				Six Months Ended, June 30,
	2016		2015		2016		2015
Numerator:
Net income	$	50,148	$	31,350	$	90,694	$	67,527
Denominator:
Weighted-average common shares outstanding, basic	79,951		80,257		79,891		80,358
Dilutive effect of potential common stock	1,330		1,137		1,549		1,371
Total shares, diluted	81,281		81,394		81,440		81,729

Net income per share, basic	$	0.63	$	0.39	$	1.14	$	0.84
Net income per share, diluted	$	0.62	$	0.39	$	1.11	$	0.83

For the six months ended June 30, 2016 and 2015, the anti-dilutive effect from RSU, MSU and ESPP was not material.

Segments and Geographical Information

6 Months Ended

Jun. 30, 2016

Segments and Geographical Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We report segment information based on the management approach. The management approach designates the internal reporting used by the CODM for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues and gross profit.

We have grouped our operations into two reportable segments which are also our reporting units: Clear Aligner segment and Scanner segment.


•	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 Scanner segment consists 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 scanner and OrthoCAD services.

These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocation of resources. The following information relates to these segments (in thousands):



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Net Revenues	2016		2015		2016		2015
Clear Aligner	$	243,436	$	200,817	$	463,134	$	387,846
Scanner	25,926		8,671		44,948		19,728
Total net revenues	$	269,362	$	209,488	$	508,082	$	407,574

Gross profit
Clear Aligner	$	191,326	$	157,337	$	363,393	$	305,297
Scanner	13,890		1,297		22,450		4,427
Total gross profit	$	205,216	$	158,634	$	385,843	$	309,724

Geographical Information

Net revenues are presented below by geographic area (in thousands):



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Net revenues: ⁽¹⁾
U.S.	$	182,322	$	145,368	$	348,423	$	285,072
the Netherlands	56,598		42,223		103,998		80,868
Other international	30,442		21,897		55,661		41,634
Total net revenues	$	269,362	$	209,488	$	508,082	$	407,574

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

Tangible long-lived assets are presented below by geographic area (in thousands):



	June 30, 2016		December 31, 2015
Long-lived assets:⁽²⁾
United States	$	133,350	$	112,632
Mexico	16,632		15,422
Other International	11,703		8,419
Total long-lived assets	$	161,685	$	136,473

⁽²⁾Long-lived assets are attributed to countries based on the entity that owns the asset.

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 1, 2016, Align implemented a new international corporate structure. This changes the structure of our international procurement and sales operations, as well as realigns the ownership and use of intellectual property among our wholly-owned subsidiaries. The structure includes legal entities located in jurisdictions with income tax rates lower than the U.S. federal statutory tax rate. As a result of these changes, we expect that an increasing percentage of our consolidated pre-tax income will be derived from, and reinvested in our foreign operations. We believe that income taxed in certain foreign jurisdictions at a lower rate relative to the U.S. federal statutory rate will have a beneficial impact on our worldwide effective tax rate over time. We maintain sufficient cash reserves in the U.S. and do not intend to repatriate our foreign earnings. As a result, income taxes have not been provided on these foreign earnings. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we would be subject to additional U.S. income taxes subject to an adjustment for foreign tax credits and foreign withholding taxes. We intend to use the undistributed earnings for local operating expansions and to meet local operating working capital needs. In addition, a significant amount of the cash earned by foreign subsidiaries is deployed to effect this international restructure On July 25, 2016, we entered into a Supply Agreement with SmileDirectClub, LLC (“SDC”) to manufacture clear aligners for SDC's doctor-led, at-home program for simple teeth straightening. SDC aligners will use our single-layer EX30 material for cases without attachments or interproximal reduction, and will be manufactured by Align per SDC's specifications for minor tooth movement. Starting October 2016, we will become SDC's exclusive third-party supplier for its minor tooth movement aligner program. SDC will have the exclusive right to distribute the SDC Aligners in the United States and Canada, as well as a right of first negotiation with respect to any other territory in the world in which a party chooses to make aligner products available. The term of the Supply Agreement expires on December 31, 2019. Align and SDC also entered into a Loan and Security Agreement (the "Loan Agreement") where we agreed to provide a loan of up to $15.0 million in one or more advances to SDC (the "Loan Facility"). Available advances under the Loan Facility are subject to a borrowing base of 80% of SDC's eligible accounts receivable, determined in accordance with the terms of the Loan Agreement, and the satisfaction of other customary conditions. The advances bear interest, paid quarterly, at the rate of 7% per annum. Advances that are repaid or prepaid may be reborrowed. All outstanding principal and accrued and unpaid interest on the advances are due and payable on July 25, 2021. SDC's obligations in respect of the Loan Agreement are secured by a security interest in substantially all of SDC's assets. As part of the transaction, we will acquire a 17% equity interest, on a fully diluted basis, in SDC for $46.7 million, and will account for this investment under the equity method of accounting. Thus, we will include our proportional share of SDC's earnings or losses in our consolidated statement of operations in future periods. Our financial results, will therefore reflect two components: 1) commencing in October when we begin to supply aligners, the sale of aligners to SDC and the income from under the supply agreement will be reported in our Clear Aligner business segment, and 2) in the third quarter of 2016, our portion of SDC's reported profits and/or losses will be included in our operating expenses. Align will perform a fair value assessment in the third quarter of 2016 in order to determine if we need to value components of the SDC agreements, such as, our Supply Agreement, and our exclusivity arrangement, among others. We expect the transaction to be incremental to both our revenue growth and earnings in 2017.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2016
Notes To Financial Statements [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") and contain all adjustments, including normal recurring adjustments, necessary to state fairly our results of operations for the three and six months ended June 30, 2016 and 2015, our comprehensive income for the three and six months ended June 30, 2016 and 2015, our financial position as of June 30, 2016 and our cash flows for the six months ended June 30, 2016 and 2015. The Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from the December 31, 2015 audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other future period, and we make no representations related thereto. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2015.
Use of estimates	Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") 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, long-lived assets and goodwill, useful lives of intangible assets and property and equipment, revenue recognition, 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (" FASB") released Accounting Standards Update ("ASU") 2014-9 "Revenue from Contracts with Customers" (Topic 606) to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for the goods or services. The new standard defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We are required to adopt this standard starting in the first quarter of fiscal year 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. We have not yet selected a transition method, and are in the process of determining the impact that the new standard will have on our consolidated financial statements. In April 2016, the Financial Accounting Standards Board (" FASB") released ASU No. 2016-10 "Revenue from Contracts with Customers" to clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the principles for those areas of the ASU 2014-9 issued in May 2014. The effective date and the transition requirement of the amendments in this update are the same as the effective date and transition requirements of Topic 606. In May 2016, the Financial Accounting Standards Board (" FASB") released ASU No. 2016-12 "Revenue from Contracts with Customers" to address certain issues in the Topic 606 guidance on assessing the collectibility, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications at transition. The ASU provides narrow-scope improvements and practical expedients to the ASU 2014-9 issued in May 2014. The effective date and the transition requirement of the amendments in this update are the same as the effective date and transition requirements of Topic 606. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842). The FASB issued this update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The updated guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is evaluating the impact of the adoption of this update on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. This ASU will become effective for Align on January 1, 2017. Early adoption is permitted in any interim or annual period. We are currently evaluating the impact of this guidance on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses” (Topic 326). The FASB issued this update to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this update replace the existing guidance of incurred loss impairment methodology with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the update is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Align is evaluating the impact of the adoption of this update on our consolidated financial statements and related disclosures.

Marketable Securities and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Short-Term And Long-Term Marketable Securities

As of June 30, 2016 and December 31, 2015, the estimated fair value of our short-term and long-term marketable securities, classified as available for sale, are as follows (in thousands):

Short-term



June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Commercial paper	$	61,412	$	19	$	—		$	61,431
Corporate bonds	178,415		109		(20		)	178,504
Municipal securities	10,365		9		—			10,374
U.S. dollar denominated foreign corporate bonds	503		—		—			503
U.S. government agency bonds	76,743		39		(4		)	76,778
U.S. government treasury bonds	73,936		81		—			74,017
Certificates of deposits	2,500		—		—			2,500
Total Marketable Securities, Short-Term	$	403,874	$	257	$	(24	)	$	404,107

Long-term



June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agency bonds	$	13,254	$	26	$	—		$	13,280
Corporate bonds	78,919		294		(7		)	79,206
U.S. government treasury bonds	14,062		58		—			14,120
Municipal securities	3,342		4		—			3,346
Asset-backed securities	494		—		—			494
Certificates of deposits	2,712		—		—			2,712
Total Marketable Securities, Long-Term	$	112,783	$	382	$	(7	)	$	113,158

Short-term



December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Commercial paper	$	38,537	$	—	$	—		$	38,537
Corporate bonds	179,765		6		(251		)	179,520
U.S. dollar denominated foreign corporate bonds	510		—		(2		)	508
Municipal securities	14,209		7		(2		)	14,214
U.S. government agency bonds	75,172		—		(53		)	75,119
U.S. government treasury bonds	51,763		1		(81		)	51,683
Total Marketable Securities, Short-Term	$	359,956	$	14	$	(389	)	$	359,581

Long-term



December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agency bonds	$	43,853	$	—	$	(178	)	$	43,675
Corporate bonds	64,012		9		(218		)	63,803
U.S. government treasury bonds	37,673		—		(107		)	37,566
Municipal securities	3,993		—		(2		)	3,991
Asset-backed securities	2,338		—		(3		)	2,335
Total Marketable Securities, Long-Term	$	151,869	$	9	$	(508	)	$	151,370

Investments Classified by Contractual Maturity Date [Table Text Block]



	June 30, 2016		December 31, 2015
Due in one year or less	$	404,107	$	359,581
Due in greater than one year	113,158		151,370
Total available for sale short-term and long-term marketable securities	$	517,265	$	510,951

Financial Assets Measured At Fair Value On Recurring Basis

The following tables summarize our financial assets measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 (in thousands):



Description	Balance as of June 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	92,328	$	92,328	$	—
Commercial paper	14,592		—		14,592
Short-term investments:
Commercial paper	61,431		—		61,431
Corporate bonds	178,504		—		178,504
U.S. dollar denominated foreign corporate bonds	503		—		503
Municipal securities	10,374		—		10,374
U.S. government agency bonds	76,778		—		76,778
U.S. government treasury bonds	74,017		74,017		—
Certificates of deposits	2,500		—		2,500
Long-term investments:
U.S. government agency bonds	13,280		—		13,280
Corporate bonds	79,206		—		79,206
U.S. government treasury bonds	14,120		14,120		—
Municipal securities	3,346		—		3,346
Asset-backed securities	494		—		494
Certificates of deposits	2,712				2,712
Prepaid expenses and other current assets:
Israeli funds	2,486		—		2,486
	$	626,671	$	180,465	$	446,206



Description	Balance as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	70,148	$	70,148	$	—
Commercial paper	36,887		—		36,887
U.S. government agency bonds	3,599		—		3,599
Corporate bonds	625		—		625
Short-term investments:
Commercial paper	38,537		—		38,537
Corporate bonds	179,520		—		179,520
U.S. dollar denominated foreign corporate bonds	508		—		508
Municipal securities	14,214		—		14,214
U.S. government agency bonds	75,119		—		75,119
U.S. government treasury bonds	51,683		51,683		—
Long-term investments:
U.S. government agency bonds	43,675		—		43,675
Corporate bonds	63,803		—		63,803
U.S. government treasury bonds	37,566		37,566		—
Municipal securities	3,991		—		3,991
Asset-backed securities	2,335		—		2,335
Prepaid expenses and other current assets:
Israeli funds	2,436		—		2,436
	$	624,646	$	159,397	$	465,249

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Accrued Liabilities

Schedule of Inventories

Inventories consist of the following (in thousands):



	June 30, 2016		December 31, 2015
Raw materials	$	8,217	$	9,950
Work in process	10,889		7,067
Finished goods	3,886		2,448
Total Inventories	$	22,992	$	19,465

Accrued liabilities consist of the following (in thousands):



	June 30, 2016		December 31, 2015
Accrued payroll and benefits	$	55,720	$	55,430
Accrued sales and marketing expenses	9,148		7,071
Accrued sales rebates	8,752		8,486
Accrued accounts payable	8,332		13,834
Accrued sales tax and value added tax	5,339		4,801
Accrued professional fees	3,404		2,775
Accrued warranty	2,830		2,638
Accrued income taxes	3,385		2,646
Other accrued liabilities	10,595		10,084
Total Accrued Liabilities	$	107,505	$	107,765

Warranty Accrual

Warranty accrual as of June 30, 2016 and 2015 consists of the following activity (in thousands):



	Six Months Ended June 30,
	2016			2015
Balance at beginning of period	$	2,638		$	3,148
Charged to cost of net revenues	1,993			976
Actual warranty expenditures	(1,801		)	(1,138		)
Balance at end of period	$	2,830		$	2,986

Goodwill and Long-lived Assets (Tables)

6 Months Ended

Jun. 30, 2016

Summary of Goodwill by Reportable Segment

The change in the carrying value of goodwill for the six months ended June 30, 2016, all attributable to our Clear Aligner reporting unit, is as follows (in thousands):



	Clear Aligner
Balance as of December 31, 2015	$	61,074
Adjustments ¹	45
Balance as of June 30, 2016	$	61,119

Schedule Of Amortized Intangible Assets

Acquired intangible assets are being amortized as follows (in thousands):



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of June 30, 2016		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of June 30, 2016
Trademarks	14	$	7,100	$	(1,561	)	$	(4,179	)	$	1,360
Existing technology	13	12,600		(3,859		)	(4,328		)	4,413
Customer relationships	11	33,500		(11,888		)	(10,751		)	10,861
Patents	8	6,316		(320		)	—			5,996
Total Intangible Assets		$	59,516	$	(17,628	)	$	(19,258	)	$	22,630



	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2015		Accumulated Amortization			Accumulated Impairment Loss			Net Carrying Value as of December 31, 2015
Trademarks	15	$	7,100	$	(1,492	)	$	(4,179	)	$	1,429
Existing technology	13	12,600		(3,577		)	(4,328		)	4,695
Customer relationships	11	33,500		(10,957		)	(10,751		)	11,792
Patents	8	285		(113		)	—			172
Total Intangible Assets		$	53,485	$	(16,139	)	$	(19,258	)	$	18,088

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2016 is as follows (in thousands):



Fiscal Year Ending December 31,
Remainder of 2016	$	1,678
2017	3,353
2018	3,353
2019	3,346
2020	3,336
Thereafter	7,564
Total	$	22,630

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Future Lease Payments

As of June 30, 2016, minimum future lease payments for non-cancelable operating leases are as follows (in thousands):



Fiscal Year Ending December 31,	Operating leases
Remainder of 2016	$	5,787
2017	7,308
2018	3,020
2019	784
2020	334
Thereafter	109
Total minimum future lease payments	$	17,342

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Stock-based Compensation Expense

The stock-based compensation related to all of our stock-based awards and employee stock purchases for the six months ended June 30, 2016 and 2015 is as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of net revenues	$	932	$	967	$	1,893	$	1,945
Selling, general and administrative	10,843		9,771		20,677		18,542
Research and development	1,924		2,088		3,653		3,987
Total stock-based compensation	$	13,699	$	12,826	$	26,223	$	24,474

Stock Option Activity

Activity for the six months ended June 30, 2016 under the stock option plans is 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, 2015	496		$	15.14
Granted	—		—
Exercised	(130	)	15.17
Cancelled or expired	—		—
Outstanding as of June 30, 2016	366		$	15.13	1.26	$	23,942
Vested and expected to vest at June 30, 2016	366		$	15.13	1.26	$	23,942
Exercisable at June 30, 2016	366		$	15.13	1.26	$	23,942

^[1]

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:



	Six Months Ended June 30,
	2016			2015
Expected term (in years)	1.3			1.2
Expected volatility	33.7		%	31.9		%
Risk-free interest rate	0.77		%	0.26		%
Expected dividends	—			—
Weighted average fair value at grant date	$	19.96		$	15.98

Restricted Stock Units (RSUs)

Summary Of Nonvested Shares

A summary of the RSU activity for the six months ended June 30, 2016 is as follows (in thousands, except years):



	Number of Shares Underlying RSU		Weighted Average Grant Date Fair Value		Weighted Remaining Contractual Period	Aggregate Intrinsic Value
					(in years)
Nonvested as of December 31, 2015	2,079		$	49.45
Granted	650		65.58
Vested and released	(715	)	45.02
Forfeited	(96	)	52.12
Nonvested as of June 30, 2016	1,918		$	56.44	1.50	$	154,520

Market Performance Based Restricted Stock Units

Summary Of Nonvested Shares

The following table summarizes the MSU activity for the six months ended June 30, 2016 (in thousands, except years):



	Number of Shares Underlying MSU		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Period	Aggregate Intrinsic Value
					(in years )
Nonvested as of December 31, 2015	611		$	51.41
Granted	218		55.77
Vested and released	(252	)	35.49
Forfeited	(39	)	56.41
Nonvested as of June 30, 2016	538		$	60.28	1.60	$	43,356

[1]	There were no stock options granted during the six months ended June 30, 2016 and 2015. All compensation costs relating to stock options have been recognized as of June 30, 2016.

Net Profit Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Schedule Of Earnings Per Share Basic And Diluted

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



	Three Months Ended, June 30,				Six Months Ended, June 30,
	2016		2015		2016		2015
Numerator:
Net income	$	50,148	$	31,350	$	90,694	$	67,527
Denominator:
Weighted-average common shares outstanding, basic	79,951		80,257		79,891		80,358
Dilutive effect of potential common stock	1,330		1,137		1,549		1,371
Total shares, diluted	81,281		81,394		81,440		81,729

Net income per share, basic	$	0.63	$	0.39	$	1.14	$	0.84
Net income per share, diluted	$	0.62	$	0.39	$	1.11	$	0.83

Segments and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2016

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



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Net Revenues	2016		2015		2016		2015
Clear Aligner	$	243,436	$	200,817	$	463,134	$	387,846
Scanner	25,926		8,671		44,948		19,728
Total net revenues	$	269,362	$	209,488	$	508,082	$	407,574

Gross profit
Clear Aligner	$	191,326	$	157,337	$	363,393	$	305,297
Scanner	13,890		1,297		22,450		4,427
Total gross profit	$	205,216	$	158,634	$	385,843	$	309,724

Geographical Information

Net revenues are presented below by geographic area (in thousands):



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Net revenues: ⁽¹⁾
U.S.	$	182,322	$	145,368	$	348,423	$	285,072
the Netherlands	56,598		42,223		103,998		80,868
Other international	30,442		21,897		55,661		41,634
Total net revenues	$	269,362	$	209,488	$	508,082	$	407,574

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

Tangible long-lived assets are presented below by geographic area (in thousands):



	June 30, 2016		December 31, 2015
Long-lived assets:⁽²⁾
United States	$	133,350	$	112,632
Mexico	16,632		15,422
Other International	11,703		8,419
Total long-lived assets	$	161,685	$	136,473

⁽²⁾Long-lived assets are attributed to countries based on the entity that owns the asset.

Short-Term and Long-Term Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Total available for sale short-term and long-term marketable securities	$ 517,265	$ 510,951
Fair Value, Measurements, Recurring [Member] \| Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	403,874	359,956
Gross Unrealized Gains	257	14
Gross Unrealized Losses	(24)	(389)
Total available for sale short-term and long-term marketable securities	404,107	359,581
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	61,412	38,537
Gross Unrealized Gains	19	0
Gross Unrealized Losses	0	0
Total available for sale short-term and long-term marketable securities	61,431	38,537
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	178,415	179,765
Gross Unrealized Gains	109	6
Gross Unrealized Losses	(20)	(251)
Total available for sale short-term and long-term marketable securities	178,504	179,520
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| U.S. government agency bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,743	75,172
Gross Unrealized Gains	39	0
Gross Unrealized Losses	(4)	(53)
Total available for sale short-term and long-term marketable securities	76,778	75,119
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,365	14,209
Gross Unrealized Gains	9	7
Gross Unrealized Losses	0	(2)
Total available for sale short-term and long-term marketable securities	10,374	14,214
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| U.S. dollar dominated foreign corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	503	510
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(2)
Total available for sale short-term and long-term marketable securities	503	508
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| U.S. government treasury bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	73,936	51,763
Gross Unrealized Gains	81	1
Gross Unrealized Losses	0	(81)
Total available for sale short-term and long-term marketable securities	74,017	51,683
Fair Value, Measurements, Recurring [Member] \| Short-term Investments \| Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Total available for sale short-term and long-term marketable securities	2,500
Fair Value, Measurements, Recurring [Member] \| Long-term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	112,783	151,869
Gross Unrealized Gains	382	9
Gross Unrealized Losses	(7)	(508)
Total available for sale short-term and long-term marketable securities	113,158	151,370
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	78,919	64,012
Gross Unrealized Gains	294	9
Gross Unrealized Losses	(7)	(218)
Total available for sale short-term and long-term marketable securities	79,206	63,803
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| U.S. government agency bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,254	43,853
Gross Unrealized Gains	26	0
Gross Unrealized Losses	0	(178)
Total available for sale short-term and long-term marketable securities	13,280	43,675
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	494	2,338
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(3)
Total available for sale short-term and long-term marketable securities	494	2,335
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,342	3,993
Gross Unrealized Gains	4	0
Gross Unrealized Losses	0	(2)
Total available for sale short-term and long-term marketable securities	3,346	3,991
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| U.S. dollar dominated foreign corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Total available for sale short-term and long-term marketable securities	2,712
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| U.S. government treasury bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,062	37,673
Gross Unrealized Gains	58	0
Gross Unrealized Losses	0	(107)
Total available for sale short-term and long-term marketable securities	14,120	$ 37,566
Fair Value, Measurements, Recurring [Member] \| Long-term Investments \| Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,712
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Total available for sale short-term and long-term marketable securities	$ 2,712

Marketable Securities and Fair Value Measurements Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Maturity Period Used To Classify Investments	7 months	9 months
Maximum
Schedule of Available-for-sale Securities [Line Items]
Maturity Period Used To Classify Investments	27 months

Marketable Securities and Fair Value Measurements Available For Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Due in one year or less	$ 404,107	$ 359,581
Due in greater than one year	113,158	151,370
Total available for sale short-term and long-term marketable securities	$ 517,265	$ 510,951

Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Such securities are reported at fair value; unrealized gains (losses) related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain (loss) of an Available-for-sale security that is designated as being hedged in a fair value hedge is recognized in earnings during the period of the hedge, as are other than temporary declines in fair value below the cost basis for investments in equity securities and debt securities that an entity intends to sell or it is more likely than not that it will be required to sell before the recovery of its amortized cost basis. Other than temporary declines in fair value below the cost basis for debt securities categorized as Available-for-sale that an entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before the recovery of its amortized cost basis are bifurcated into credit losses and losses related to all other factors. Other than temporary declines in fair value below cost basis related to credit losses are recognized in earnings, and losses related to all other factors are recognized in other comprehensive income.

Balance as of December 31, 2015

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Disclosure Inventories [Abstract]
Raw materials	$ 8,217	$ 9,950
Work in process	10,889	7,067
Finished goods	3,886	2,448
Total Inventories	$ 22,992	$ 19,465

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Disclosure Accrued Liabilities [Abstract]
Accrued payroll and benefits	$ 55,720	$ 55,430
Accrued sales rebate	8,752	8,486
Accrued sales tax and value added tax	5,339	4,801
Accrued sales and marketing expenses	9,148	7,071
Accrued accounts payable	8,332	13,834
Accrued warranty	2,830	2,638
Accrued professional fees	3,404	2,775
Accrued income taxes	3,385	2,646
Other accrued liabilities	10,595	10,084
Total Accrued Liabilities	$ 107,505	$ 107,765

Warranty Accrual Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 2,638	$ 3,148
Charged to cost of revenues	1,993	976
Actual warranty expenditures	(1,801)	(1,138)
Balance at end of period	$ 2,830	$ 2,986

Change in Carrying Value of Goodwill (Details)
$ in Thousands

6 Months Ended

Jun. 30, 2016

USD ($)

Goodwill [Roll Forward]

$ 79,162

Balance as of June 30, 2016

83,749

Clear Aligner

Goodwill [Roll Forward]

Balance as of December 31, 2015

61,074

Adjustments

^[1]

Balance as of June 30, 2016

$ 61,119

[1]	The adjustments to goodwill during the six months ended June 30, 2016 were due to foreign currency translation.

Intangible Assets as Direct Result from Cadent Acquisition (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, beginning balance	$ 59,516	$ 53,485
Accumulated Amortization	(17,628)	(16,139)
Accumulated Impairment Loss	(19,258)	(19,258)
Net Carrying Value, ending balance	$ 22,630	$ 18,088
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	14 years	15 years
Gross Carrying Amount, beginning balance	$ 7,100	$ 7,100
Accumulated Amortization	(1,561)	(1,492)
Accumulated Impairment Loss	(4,179)	(4,179)
Net Carrying Value, ending balance	$ 1,360	$ 1,429
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	13 years	13 years
Gross Carrying Amount, beginning balance	$ 12,600	$ 12,600
Accumulated Amortization	(3,859)	(3,577)
Accumulated Impairment Loss	(4,328)	(4,328)
Net Carrying Value, ending balance	$ 4,413	$ 4,695
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	11 years	11 years
Gross Carrying Amount, beginning balance	$ 33,500	$ 33,500
Accumulated Amortization	(11,888)	(10,957)
Accumulated Impairment Loss	(10,751)	(10,751)
Net Carrying Value, ending balance	$ 10,861	$ 11,792
Other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	8 years	8 years
Gross Carrying Amount, beginning balance	$ 6,316	$ 285
Accumulated Amortization	(320)	(113)
Accumulated Impairment Loss	0	0
Net Carrying Value, ending balance	$ 5,996	$ 172

Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2016	$ 1,678
2017	3,353
2018	3,353
2019	3,346
2018	3,336
Thereafter	7,564
Net Carrying Value, ending balance	$ 22,630	$ 18,088

Credit Facilities - Additional Information (Details) - USD ($) $ in Millions		6 Months Ended
	Mar. 22, 2013	Jun. 30, 2016
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Revolving Credit Facility [Member] \| Wells Fargo [Member]
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 50.0
Unrestricted Cash Deposit		$ 50.0
Letter of Credit [Member] \| Wells Fargo [Member]
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 10.0
Line of Credit Facility, Amount Outstanding		$ 0.0

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

Minimum Future Lease Payments for Non-Cancelable Leases (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Disclosure Minimum Future Lease Payments For Non Cancelable Leases [Abstract]
Remainder of 2016	$ 5,787
2017	7,308
2018	3,020
2019	784
2020	334
Thereafter	109
Total minimum lease payments	$ 17,342

Stock-based Compensation - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($) shares
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	30,169,000
Number of shares available for issuance	8,054,000
Employee Stock Purchase Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available	2,400,000
Number of shares remaining	1,029,526
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost \| $	$ 79.0
Weighted average period of total unamortized cost (in years)	2 years 4 months 24 days
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost \| $	$ 15.6
Weighted average period of total unamortized cost (in years)	1 year 7 months 6 days
Market Performance Based Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of granted market-performance based restricted stock units	2 years
Market Performance Based Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of granted market-performance based restricted stock units	3 years
Percentage of market-performance based restricted stock units eligible to vest over the vesting period	150.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost \| $	$ 1.1
Weighted average period of total unamortized cost (in years)	4 months 24 days

Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 13,699	$ 12,826	$ 26,223	$ 24,474
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	932	967	1,893	1,945
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	10,843	9,771	20,677	18,542
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,924	$ 2,088	$ 3,653	$ 3,987

Activity Under Stock Option Plans (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Number of Shares Underlying Stock Options
Outstanding as of December 31, 2015 \| shares	496
Granted \| shares	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares	$ 0
Exercised \| shares	(130)
Cancelled or expired \| shares	0
Outstanding as of June 30, 2016 \| shares	366
Vested and expected to vest at June 30, 2016 \| shares	366
Exercisable at June 30, 2016 \| shares	366
Weighted Average Exercise Price per Share
Outstanding as of December 31, 2015 \| $ / shares	$ 15.14
Exercised \| $ / shares	15.17
Cancelled or expired \| $ / shares	0.00
Outstanding as of June 30, 2016 \| $ / shares	15.13
Vested and expected to vest at March 31, 2016 (usd per share) \| $ / shares	15.13
Exercisable at March 31, 2016 (usd per share) \| $ / shares	$ 15.13
Weighted Average Remaining Contractual Term
Outstanding as of June 30, 2016	1 year 3 months 4 days
Vested and expected to vest at June 30, 2016	1 year 3 months 4 days
Exercisable at June 30, 2016	1 year 3 months 4 days
Aggregate Intrinsic Value
Outstanding as of June 30, 2016 \| $	$ 23,942
Vested and expected to vest at June 30, 2016 \| $	23,942
Exercisable at June 30, 2016 \| $	$ 23,942

Summary of Nonvested Shares (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Number of Shares Underlying RSUs
Nonvested as of December 31, 2015 \| shares	2,079
Granted \| shares	650
Vested and released \| shares	(715)
Forfeited \| shares	(96)
Nonvested as of June 30, 2016 \| shares	1,918
Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2015 \| $ / shares	$ 49.45
Granted \| $ / shares	65.58
Vested and released \| $ / shares	45.02
Forfeited \| $ / shares	52.12
Nonvested as of June 30, 2016 \| $ / shares	$ 56.44
Weighted Remaining Vesting Period
Nonvested as of June 30, 2016	1 year 6 months
Aggregate Intrinsic Value
Nonvested as of June 30, 2016 \| $	$ 154,520

Summary of MSU Performance (Details) - Market Performance Based Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Number of Shares Underlying MSUs
Nonvested as of December 31, 2015 \| shares	611
Granted \| shares	218
Vested and released \| shares	(252)
Forfeited \| shares	(39)
Nonvested as of June 30, 2016 \| shares	538
Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2015 \| $ / shares	$ 51.41
Granted \| $ / shares	55.77
Vested and released \| $ / shares	35.49
Forfeited \| $ / shares	56.41
Nonvested as of June 30, 2016 \| $ / shares	$ 60.28
Weighted Average Remaining Vesting Period
Nonvested as of June 30, 2016	1 year 7 months 6 days
Aggregate Intrinsic Value
Nonvested as of June 30, 2016 \| $	$ 43,356

Stock-based Compensation Stock-based Compensation Employee Stock Purchase Plan (Details) - $ / shares	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	1 year 3 months 18 days	1 year 2 months 12 days
Expected volatility	33.70%	31.90%
Risk-free interest rate	0.77%	0.26%
Expected dividends	0.00%	0.00%
Weighted average fair value at grant date (USD per Share)	$ 19.96	$ 15.98

Common Stock Repurchase Program - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions		1 Months Ended
	May 04, 2016	Apr. 30, 2014	Jun. 30, 2016	May 03, 2016	Apr. 28, 2016
Share Repurchases [Line Items]
Repurchase of common stock, common stock authorized					$ 600,000,000
Market price ($ per share)				$ 74.90
April 2014 Stock Repurchase Program
Share Repurchases [Line Items]
Repurchase of common stock, common stock authorized		$ 300,000,000
Stock repurchase program, period		3 years
Remaining authorized amount			$ 50,000,000
Repurchase of stock	$ 50,000,000.0
Accelerated Share Repurchase Program
Share Repurchases [Line Items]
Payments - accelerated share repurchase				$ 50,000,000.0
Accelerated share repurchase (shares)	0.5
April 2016 Repurchase
Share Repurchases [Line Items]
Repurchase of common stock, common stock authorized					$ 300,000,000

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes [Line Items]
Provision for income taxes	$ 15,113	$ 11,149	$ 27,474	$ 22,444
Effective income tax rate, continuing operations	23.20%	26.20%	23.20%	24.90%
Valuation allowance, deferred tax asset	$ 31,700		$ 31,700
Unrecognized tax benefits	$ 42,600		$ 42,600		$ 39,400
Tax Holiday effect		$ 8,200
Tax holiday effect on diluted earnings per share	$ 0.11	$ 0.10	$ 0.21	$ 0.20
Foreign Tax Authority [Member]
Income Taxes [Line Items]
Foreign income tax rate			30.00%	30.00%
Tax Holiday effect	$ 8,600		$ 17,200	$ 16,400

Computation of Basic and Diluted Net Profit Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Disclosure Computation Of Basic And Diluted Net Profit Per Share Attributable To Common Stock [Abstract]
Net income	$ 50,148	$ 31,350	$ 90,694	$ 67,527
Weighted-average common shares outstanding, basic	79,951	80,257	79,891	80,358
Dilutive effect of potential common stock	1,330	1,137	1,549	1,371
Total shares, diluted	81,281	81,394	81,440	81,729
Net income per share, basic	$ 0.63	$ 0.39	$ 1.14	$ 0.84
Net income per share, diluted	$ 0.62	$ 0.39	$ 1.11	$ 0.83

Segment Information (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

Revenue

^[1]

$ 269,362

$ 209,488

$ 508,082

$ 407,574

205,216

158,634

385,843

309,724

Clear Aligner

Revenue

243,436

200,817

463,134

387,846

191,326

157,337

363,393

305,297

Scanner

Revenue

25,926

8,671

44,948

19,728

$ 13,890

$ 1,297

$ 22,450

$ 4,427

[1]	Net revenues are attributed to countries based on location of where revenue is recognized.

Net Revenues by Geographic Area (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

^[1]

$ 269,362

$ 209,488

$ 508,082

$ 407,574

United States

^[1]

182,322

145,368

348,423

285,072

the Netherlands

^[1]

56,598

42,223

103,998

80,868

Other international

^[1]

$ 30,442

$ 21,897

$ 55,661

$ 41,634

[1]	Net revenues are attributed to countries based on location of where revenue is recognized.

Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands

Jun. 30, 2016

Dec. 31, 2015

^[1]

$ 161,685

$ 136,473

United States

^[1]

133,350

112,632

MEXICO

16,632

15,422

Other international