0001097149-22-000036 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-32259
Entity Registrant Name	ALIGN TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3267295
Entity Address, Address Line One	410 North Scottsdale Road, Suite 1300
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85281
City Area Code	602
Local Phone Number	742-2000
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ALGN
Security Exchange Name	NASDAQ
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Central Index Key	0001097149
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		78,805,547

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net revenues	$ 973,219	$ 894,771
Cost of net revenues	263,873	217,673
Gross profit	709,346	677,098
Operating expenses:
Selling, general and administrative	439,457	397,115
Research and development	71,807	54,537
Total operating expenses	511,264	451,652
Income from operations	198,082	225,446
Interest income	677	1,643
Other income (expense), net	(11,273)	34,532
Total interest income and other income (expense), net	(10,596)	36,175
Net income before provision for income taxes	187,486	261,621
Provision for income taxes	53,188	61,245
Net income	$ 134,298	$ 200,376
Net income per share:
Basic (in usd per share)	$ 1.71	$ 2.54
Diluted (in usd per share)	$ 1.70	$ 2.51
Shares used in computing net income per share:
Basic (in shares)	78,742	79,000
Diluted (in shares)	79,193	79,798

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 134,298	$ 200,376
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax	(7,311)	(14,451)
Change in unrealized gains (losses) on investments, net of tax	(2,728)	(20)
Other comprehensive loss	(10,039)	(14,471)
Comprehensive income	$ 124,259	$ 185,905

- Definition

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

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+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 926,119	$ 1,099,370
Marketable securities, short-term	86,749	71,972
Accounts receivable, net of allowance for doubtful accounts of $9,764 and $9,245, respectively	950,892	897,198
Inventories	275,669	230,230
Prepaid expenses and other current assets	241,339	195,305
Total current assets	2,480,768	2,494,075
Marketable securities, long-term	107,695	125,320
Property, plant and equipment, net	1,140,922	1,081,926
Operating lease right-of-use assets, net	125,252	121,257
Goodwill	411,965	418,547
Intangible assets, net	103,499	109,709
Deferred tax assets	1,515,620	1,533,767
Other assets	57,693	57,509
Total assets	5,943,414	5,942,110
Current liabilities:
Accounts payable	186,509	163,886
Accrued liabilities	465,071	607,315
Deferred revenues	1,212,067	1,152,870
Total current liabilities	1,863,647	1,924,071
Income tax payable	123,476	118,072
Operating lease liabilities	104,983	102,656
Other long-term liabilities	184,456	174,597
Total liabilities	2,276,562	2,319,396
Commitments and contingencies (Notes 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; 78,805 and 78,710 issued and outstanding, respectively)	8	8
Additional paid-in capital	992,287	999,006
Accumulated other comprehensive income (loss), net	(5,713)	4,326
Retained earnings	2,680,270	2,619,374
Total stockholders’ equity	3,666,852	3,622,714
Total liabilities and stockholders’ equity	$ 5,943,414	$ 5,942,110

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9,764	$ 9,245
Preferred stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	78,805,000	78,710,000
Common stock, shares outstanding	78,805,000	78,710,000

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss), Net	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2020		78,860
Beginning Balance at Dec. 31, 2020	$ 3,233,865	$ 8	$ 974,556	$ 43,501	$ 2,215,800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	200,376				200,376
Change in unrealized gains (losses) on investments, net of tax	(20)			(20)
Change in foreign currency translation adjustment, net of tax	(14,451)			(14,451)
Issuance of common stock relating to employee equity compensation plans (in shares)		276
Issuance of common stock relating to employee equity compensation plans	13,133		13,133
Tax withholdings related to net share settlements of equity awards	(66,568)		(66,568)
Stock-based compensation	27,241		27,241
Ending Balance at Mar. 31, 2021	3,393,576	$ 8	948,362	29,030	2,416,176
Ending Balance (in shares) at Mar. 31, 2021		79,136
Beginning Balance (in shares) at Dec. 31, 2021		78,710
Beginning Balance at Dec. 31, 2021	3,622,714	$ 8	999,006	4,326	2,619,374
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	134,298				134,298
Change in unrealized gains (losses) on investments, net of tax	(2,728)			(2,728)
Change in foreign currency translation adjustment, net of tax	(7,311)			(7,311)
Issuance of common stock relating to employee equity compensation plans (in shares)		239
Issuance of common stock relating to employee equity compensation plans	14,827		14,827
Tax withholdings related to net share settlements of equity awards	(51,533)		(51,533)
Common stock repurchased and retired	(75,036)		(1,634)		(73,402)
Common stock repurchased and retired (in shares)		(144)
Stock-based compensation	31,621		31,621
Ending Balance at Mar. 31, 2022	$ 3,666,852	$ 8	$ 992,287	$ (5,713)	$ 2,680,270
Ending Balance (in shares) at Mar. 31, 2022		78,805

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 134,298	$ 200,376
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	17,464	28,979
Depreciation and amortization	29,626	25,635
Stock-based compensation	31,621	27,241
Non-cash operating lease cost	7,526	5,911
Arbitration award gain	0	(43,403)
Other non-cash operating activities	8,612	5,795
Changes in assets and liabilities:
Accounts receivable	(55,543)	(67,423)
Inventories	(49,455)	(15,582)
Prepaid expenses and other assets	(48,665)	(34,858)
Accounts payable	7,025	(14,936)
Accrued and other long-term liabilities	(126,400)	(475)
Long-term income tax payable	5,405	3,920
Deferred revenues	68,984	106,007
Net cash provided by operating activities	30,498	227,187
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(87,328)	(43,431)
Purchase of marketable securities	(15,041)	0
Proceeds from maturities of marketable securities	6,095	0
Proceeds from sales of marketable securities	8,528	0
Repayment on unsecured promissory note	0	4,594
Proceeds from arbitration award	0	43,403
Other investing activities	(2,452)	0
Net cash (used in) provided by investing activities	(90,198)	4,566
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	14,827	13,133
Common stock repurchases	(75,036)	0
Payroll taxes paid upon the vesting of equity awards	(51,533)	(66,568)
Net cash used in financing activities	(111,742)	(53,435)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(1,826)	(7,487)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(173,268)	170,831
Cash, cash equivalents, and restricted cash at beginning of the period	1,100,139	961,474
Cash, cash equivalents, and restricted cash at end of the period	$ 926,871	$ 1,132,305

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2022
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”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2021, and contains all adjustments, including normal recurring adjustments, necessary to state fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other future period, and we make no representations related thereto. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the 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 revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes and contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies 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. Certain Risks and Uncertainties As the pandemic continues and new variants of the virus emerge, we are seeing a resurgence of severe preventative measures to prevent its spread in China and, consequently, continuing fluctuations in the numbers of patients seeking treatment for dental services and the number of doctors providing services and treatments in other markets. The full extent to which the pandemic, including as a result of any new variants, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined. Further, we could also be materially adversely affected by supply chain disruptions, including shortages and inflationary pressures, uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers. The military conflict between Russia and Ukraine and its related impacts on the economy has caused significant worldwide challenges. While the situation is highly uncertain and evolving, its impact on the economy such as inflation, supply chain challenges, impacts on consumer confidence, purchasing power, sanctions and retaliatory sanctions among others, have impacted and could potentially subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. Revenue Recognition Our revenues are derived primarily from the sale of aligners, scanners, and services from our Clear Aligner and Systems and Services segments. We enter into sales contracts that may consist of multiple distinct performance obligations where certain performance obligations of the sales contract are not delivered in one reporting period. We measure and allocate revenues according to ASC 606-10, “Revenues from Contracts with Customers.” We identify a performance obligation as distinct if both of the following criteria are met: the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Determining the standalone selling price (“SSP”) in order to allocate consideration from the contract to the individual performance obligations is the result of various factors, such as changing trends and market conditions, historical prices, costs, and gross margins. While changes in the allocation of the SSP between performance obligations will not affect the amount of total revenues recognized for a particular contract, any material changes could impact the timing of revenue recognition, which would have a material effect on our financial position and result of operations. This is because the contract consideration is allocated to each performance obligation, delivered or undelivered, at the inception of the contract based on the SSP of each distinct performance obligation. Clear Aligner We enter into contracts (“treatment plan(s)”) that involve multiple future performance obligations. Invisalign Comprehensive, Invisalign First, Invisalign Moderate, and Lite and Express Packages include optional additional aligners at no charge for a certain period of time ranging from six months to five years after initial shipment, and Invisalign Go and Invisalign Go Plus includes optional additional aligners at no charge for a period of up to two years after initial shipment. Our treatment plans comprise the following performance obligations that also represent distinct deliverables: initial aligners, the option of additional aligners, case refinement, and replacement aligners. We take the practical expedient to consider shipping and handling costs as activities to fulfill the performance obligation. We allocate revenues for each treatment plan based on each unit’s SSP. Management considers a variety of factors such as same or similar product historical sales, costs, and gross margin, which may vary over time depending upon the unique facts and circumstances related to each performance obligation in making these estimates. In addition to historical data, we take into consideration changing trends and market conditions. For treatment plans with multiple future performance obligations, we also consider usage rates, which is the number of times a customer is expected to order additional aligners. Our process for estimating usage rates requires significant judgment and evaluation of inputs, including historical usage data by region, country and channel. We recognize the revenues upon shipment, as the customers obtain physical possession, and we have enforceable rights to payment. As we collect most consideration upfront, we consider whether a significant financing component exists; however, as the delivery of the performance obligations are at the customer’s discretion, we conclude that no significant financing component exists. Systems and Services We sell intraoral scanners and CAD/CAM services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/or extended warranty, we allocate revenues based on the respective SSP of the scanner and the subscription service. We estimate the SSP of each element, taking into account factors such as same or similar historical prices and discounting strategies. Revenues are then recognized over time as the monthly services are rendered and upon shipment of the scanner, as that is when we deem the customer to have obtained control. CAD/CAM services, where sold separately, include the initial software license and maintenance and support. We allocate revenues based upon the respective SSPs of the software license and the maintenance and support. We estimate the SSP of each element using data such as historical prices. Revenues related to the software license are recognized upfront and revenues related to the maintenance and support are recognized over time. For both scanner and service sales, most consideration is collected upfront and in cases where there are payment plans, consideration is collected within one year and, therefore, there are no significant financing components. Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board and do not believe any of the recently issued accounting pronouncements will have an impact on our consolidated financial statements or related disclosures.

Financial Instruments

3 Months Ended

Mar. 31, 2022

Investments, All Other Investments [Abstract]

Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in thousands):


									Reported as:
March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	689,175	$	—	$	—	$	689,175	$	689,175	$	—	$	—
Money market funds	236,960		—		(16)		236,944		236,944		—		—
Corporate bonds	116,307		3		(2,389)		113,921		—		41,164		72,757
U.S. government treasury bonds	46,638		—		(511)		46,127		—		31,055		15,072
Asset-backed securities	27,453		—		(197)		27,256		—		10,984		16,272
Municipal bonds	6,049		—		(77)		5,972		—		3,546		2,426
U.S. government agency bonds	1,204		—		(36)		1,168		—		—		1,168

Total	$	1,123,786	$	3	$	(3,226)	$	1,120,563	$	926,119	$	86,749	$	107,695


									Reported as:
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	754,802	$	—	$	—	$	754,802	$	754,802	$	—	$	—
Money market funds	343,012		—		(2)		343,010		343,010		—		—
Corporate bonds	115,507		9		(398)		115,118		1,042		35,065		79,011
U.S. government treasury bonds	42,976		—		(48)		42,928		—		22,251		20,677
Asset-backed securities	32,031		—		(40)		31,991		—		10,999		20,992
Municipal bonds	7,628		—		(15)		7,613		516		3,657		3,440
U.S. government agency bonds	1,201		—		(1)		1,200		—		—		1,200

Total	$	1,297,157	$	9	$	(504)	$	1,296,662	$	1,099,370	$	71,972	$	125,320

The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Due in 1 year or less	$	67,225	$	59,737
Due in 1 year through 5 years	$	127,219	139,113
Total	$	194,444	$	198,850

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. Our unrealized losses as of March 31, 2022 and December 31, 2021 are primarily due to changes in interest rates and credit spreads.

Fair Value Measurements

Fair value is an exit price, representing the amount 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.

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. We obtain fair values for our Level 2 investments. 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.

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.

The following tables summarize our financial assets measured at fair value as of March 31, 2022 and December 31, 2021 (in thousands):


Description	Balance as of March 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	236,944	$	236,944	$	—	$	—





Short-term investments:


U.S. government treasury bonds	31,055		31,055		—		—
Corporate bonds	41,164		—		41,164		—
Municipal bonds	3,546		—		3,546		—
Asset-backed securities	10,984		—		10,984		—
Long-term investments:
U.S. government treasury bonds	15,072		15,072		—		—
Corporate bonds	72,757		—		72,757		—
Municipal bonds	2,426		—		2,426		—
U.S. government agency bonds	1,168		—		1,168		—
Asset-backed securities	16,272		—		16,272		—

Other assets:
Investments in privately held companies	11,225		—		—		11,225
	$	442,613	$	283,071	$	148,317	$	11,225


Description	Balance as of December 31, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	343,010	$	343,010	$	—	$	—

Corporate bonds	1,042		—		1,042		—
Municipal bonds	516		—		516		—

Short-term investments:
U.S. government treasury bonds	22,251		22,251		—		—
Corporate bonds	35,065		—		35,065		—
Municipal bonds	3,657		—		3,657		—
Asset-backed securities	10,999		—		10,999		—



Long-term investments:
U.S. government treasury bonds	20,677		20,677		—		—
Corporate bonds	79,011		—		79,011		—
Municipal bonds	3,440		—		3,440		—
U.S. government agency bonds	1,200		—		1,200		—
Asset-backed securities	20,992		—		20,992		—
Prepaid expenses and other current assets:
Israeli funds	3,841		—		3,841		—


Other assets:
Investments in privately held companies	8,621		—		—		8,621
	$	554,322	$	385,938	$	159,763	$	8,621

Derivatives Not Designated as Hedging Instruments

We 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. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, the net losses we recognized during the three months ended March 31, 2022 were not material and we recognized net gains of $12.4 million during the three months ended March 31, 2021. The fair value of foreign exchange forward contracts outstanding was $8.4 million as of March 31, 2022 and was not material as of December 31, 2021.

The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022
	Local Currency Amount	Notional Contract Amount (USD)
Euro	€189,795	$	210,031
Chinese Yuan	¥520,500	81,862
Polish Zloty	PLN324,500	77,086
Canadian Dollar	C$96,000	76,733
Brazilian Real	R$323,700	67,665
Japanese Yen	¥5,666,200	46,621
British Pound	£32,275	42,394
Russian Ruble	₽3,700,000	35,885
Swiss Franc	CHF17,270	18,692
Israeli Shekel	ILS54,210	17,085
Mexican Peso	M$281,560	14,127
Australian Dollar	A$5,000	3,748
		$	691,929


	December 31, 2021
	Local Currency Amount	Notional Contract Amount (USD)
Euro	€165,110	$	186,358
Canadian Dollar	C$99,800	78,018
Chinese Yuan	¥494,500	77,358
Polish Zloty	PLN219,800	54,014
Brazilian Real	R$286,500	50,894
Japanese Yen	¥5,548,700	48,206
British Pound	£34,740	46,881
Israeli Shekel	ILS54,110	17,416
Mexican Peso	M$311,500	15,133
Swiss Franc	CHF9,950	10,883
Australian Dollar	A$6,900	5,009
		$	590,170

Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Notes To Financial Statements [Abstract]

Balance Sheet Components

Inventories consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Raw materials	$	133,808	$	123,234
Work in process	79,495		51,706
Finished goods	62,366		55,290
Total inventories	$	275,669	$	230,230

Prepaid expenses and other current assets consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Value added tax receivables	$	134,941	$	93,610
Prepaid expenses	74,069		70,218
Other current assets	32,329		31,477
Total prepaid expenses and other current assets	$	241,339	$	195,305

Accrued liabilities consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Accrued payroll and benefits	$	156,272	$	288,355
Accrued expenses	66,211		67,169
Accrued income taxes	45,646		33,838
Accrued sales and marketing expenses	41,221		41,387
Accrued professional fees	36,340		31,457
Accrued property, plant and equipment	25,296		46,561
Current operating lease liabilities	25,243		22,719
Other accrued liabilities	68,842		75,829
Total accrued liabilities	$	465,071	$	607,315

Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands):


	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	16,169	$	12,615
Charged to cost of net revenues	3,536		4,280
Actual warranty expenditures	(3,612)		(3,160)
Balance at end of period	$	16,093	$	13,735

Deferred revenues consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Deferred revenues - current	$	1,212,067	$	1,152,870
Deferred revenues - long-term 1	$	146,998	$	136,684

1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

During the three months ended March 31, 2022 and 2021, we recognized $973.2 million and $894.8 million of net revenues, respectively, of which $184.9 million and $125.8 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively.

Our unfulfilled performance obligations, including deferred revenues and backlog, as of March 31, 2022 were $1,385.4 million. These performance obligations are expected to be fulfilled over six months to five years.

Goodwill and Long-lived Assets

3 Months Ended

Mar. 31, 2022

Notes To Financial Statements [Abstract]

Goodwill and Intangible Assets

Goodwill

The change in the carrying value of goodwill for the three months ended March 31, 2022, categorized by reportable segments, is as follows (in thousands):


	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2021	$	112,208	$	306,339	$	418,547

Foreign currency translation adjustments	(642)		(5,940)		(6,582)
Balance as of March 31, 2022	$	111,566	$	300,399	$	411,965

Intangible Long-Lived Assets

Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands):


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of March 31, 2022		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of March 31, 2022
Existing technology	10	$	104,531	$	(25,068)	$	(4,328)	$	75,135
Customer relationships	11	55,000		(26,894)		(10,751)		17,355
Trademarks and tradenames	10	17,200		(5,006)		(4,179)		8,015
Patents	8	6,511		(4,693)		—		1,818
		$	183,242	$	(61,661)	$	(19,258)	102,323
Foreign currency translation adjustments								1,176
Total intangible assets, net								$	103,499


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2021		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2021
Existing technology	10	$	104,531	$	(22,495)	$	(4,328)	$	77,708
Customer relationships	11	55,000		(25,891)		(10,751)		18,358
Trademarks and tradenames	10	17,200		(4,547)		(4,179)		8,474
Patents	8	6,511		(4,495)		—		2,016
		$	183,242	$	(57,428)	$	(19,258)	106,556
Foreign currency translation adjustments								3,153
Total intangible assets, net								$	109,709

The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2022 is as follows (in thousands):


Fiscal Year Ending December 31,	Amortization
Remainder of 2022	$	11,459
2023	14,997
2024	13,831
2025	13,455
2026	12,849
Thereafter	35,732
Total	$	102,323

Amortization expense for the three months ended March 31, 2022 and 2021 was $4.3 million and $3.9 million, respectively.

Credit Facility	3 Months Ended
Credit Facility	Mar. 31, 2022
Notes To Financial Statements [Abstract]
Credit Facility	Credit FacilityOn July 21, 2020, we entered into a credit facility for a $300.0 million unsecured revolving line of credit, with a $50.0 million letter of credit sublimit, and a maturity date of July 21, 2023 (“2020 Credit Facility”). The 2020 Credit Facility requires us to comply with specific financial conditions and performance requirements. Loans under the 2020 Credit Facility bear interest, at our option, at either a rate based on the reserve adjusted LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate is the highest of the credit facility's publicly announced prime rate, the federal funds rate plus 0.50% and one-month LIBOR plus 1.0%. The margin ranges from 1.50% to 2.25% for LIBOR loans and 0.50% to 1.25% for base rate loans. The 2020 Credit Facility allows for an alternative rate to be identified if LIBOR is no longer available. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (and at three month intervals if the interest period exceeds three months) in the case of LIBOR loans. The outstanding principal, together with accrued and unpaid interest, is due on the maturity date. As of March 31, 2022, we had no outstanding borrowings under the 2020 Credit Facility and were in compliance with the conditions and performance requirements in all material respects.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Legal Proceedings	3 Months Ended
Legal Proceedings	Mar. 31, 2022
Legal Proceedings [Abstract]
Legal Proceedings	Legal Proceedings 2018 Securities Class Action Lawsuit On November 5, 2018, a class action lawsuit against Align and three of our executive officers was filed in the U.S. District Court for the Northern District of California on behalf of a purported class of purchasers of our common stock. The complaint generally alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. On December 12, 2018, a similar lawsuit was filed in the same court on behalf of a purported class of purchasers of our common stock. On November 29, 2019, the lead plaintiff filed an amended consolidated complaint against Align and two of our executive officers alleging similar claims as the initial complaints on behalf of a purported class of purchasers of our common stock from May 23, 2018 and October 24, 2018. On September 9, 2020, Defendants’ motion to dismiss the amended consolidated complaint was granted in part and denied in part. On June 30, 2021, counsel for the parties signed a Stipulation and Agreement of Settlement to resolve all claims for $16 million. The settlement amount will be funded by insurance proceeds and consequently, we recorded a short term liability and a receivable for this amount in our consolidated financial statements. The Court granted final approval of the settlement on April 28, 2022 and dismissed the case with prejudice. 2019 Shareholder Derivative Lawsuit In January 2019, three derivative lawsuits were filed in the U.S. District Court for the Northern District of California which were later consolidated, purportedly on behalf of Align, naming as defendants the then current members of our Board of Directors along with certain of our executive officers. The allegations in the complaints are similar to those asserted in the 2018 Securities Class Action Lawsuit, but the complaints assert various state law causes of action, including for breaches of fiduciary duty, insider trading, and unjust enrichment. The complaints seek unspecified monetary damages on behalf of Align, which is named solely as a nominal defendant against whom no recovery is sought, as well as disgorgement and the costs and expenses associated with the litigation, including attorneys’ fees. The consolidated action was stayed until the final disposition of the 2018 Securities Class Action Lawsuit on April 28, 2022. Defendants have not yet responded to the complaints. On April 12, 2019, a derivative lawsuit was also filed in California Superior Court for Santa Clara County, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaint are similar to those in the derivative suits described above. The matter was similarly stayed until the final disposition of the 2018 Securities Class Action Lawsuit on April 28, 2022. Defendants have not yet responded to the complaint. Align believes these claims are without merit. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 2020 Securities Class Action Lawsuit On March 2, 2020, a class action lawsuit against Align and two of our executive officers was filed in the U.S. District Court for the Southern District of New York (later transferred to the U.S. District Court for the Northern District of California) on behalf of a purported class of purchasers of our common stock. The complaint alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. The lead plaintiff filed an amended complaint on August 4, 2020 against Align and three of our executive officers alleging similar claims as in the initial complaint on behalf of a purported class of purchasers of our common stock from April 25, 2019 to July 24, 2019. On March 29, 2021, defendants’ motion to dismiss the amended complaint was granted with leave for the lead plaintiff to file a further amended complaint. On April 22, 2021, lead plaintiff filed a notice stating it would not file a further amended complaint. On April 23, 2021, the Court dismissed the action with prejudice and judgment was entered. Lead plaintiff filed a notice of appeal on April 28, 2021 and filed its opening appeal brief with the United States Court of Appeals for the Ninth Circuit on September 1, 2021. The defendants-appellees filed their answering brief on November 22, 2021. The lead plaintiff-appellant’s reply brief was filed on January 12, 2022. Oral argument was held on March 10, 2022 and the Panel took the matter under submission. Align believes these claims are without merit and intends to vigorously defend itself. Align is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 2020 Shareholder Derivative Lawsuit On May 4, 2020, a derivative lawsuit was filed in the U.S. District Court for the Northern District of California, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaint are similar to those presented in the 2020 Securities Class Action Lawsuit, but this complaint asserts state law claims for breach of fiduciary duty and insider trading. The complaint seeks unspecified monetary damages on behalf of Align, which is named solely as a nominal defendant against whom no recovery is sought, as well as disgorgement and the costs and expenses associated with the litigation, including attorneys’ fees. This action is stayed pending resolution of the appeal in the 2020 Securities Class Action Lawsuit. Align believes these claims are without merit. Align is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 3Shape Litigation On February 7, 2022, Align and 3Shape, a Danish corporation, settled their outstanding patent infringement and antitrust litigation, which began in November 2017. The terms of the settlement are confidential, and the settlement has not had a material effect on Align’s ongoing operations and financial results. The outstanding cases have all been dismissed with prejudice. Antitrust Class Actions On June 5, 2020, a dental practice named Simon and Simon, PC doing business as City Smiles brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of itself and a putative class of similarly situated practices seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanner markets. Plaintiff filed an amended complaint and added VIP Dental Spas as a plaintiff on August 14, 2020. A jury trial is scheduled to begin in this matter on January 29, 2024. Align believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. On May 3, 2021, an individual named Misty Snow brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of herself and a putative class of similarly situated individuals seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanner markets. Plaintiff filed an amended complaint on July 30, 2021 adding new plaintiffs and various state law claims. Plaintiffs filed a second amended complaint on October 21, 2021. On March 2, 2022, Plaintiffs filed a third amended complaint. Align filed a motion to dismiss the third amended complaint, which the Court denied. Align has not yet responded to the third amended complaint. A jury trial is scheduled to begin in this matter on January 29, 2024. Align believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss, if any, nor estimate a range of possible loss. SDC Dispute In April 2018, SDC Financial LLC, SmileDirectClub LLC, and the Members of SDC Financial LLC other than the Company (collectively, the “SDC Entities”) initiated confidential arbitration proceedings against Align. In an award dated March 4, 2019, (“Award”) an arbitrator found that Align breached a restrictive covenant and that Align misused the SDC Entities’ confidential information and violated fiduciary duties to SDC Financial LLC. As part of the Award, Align was enjoined from opening new Invisalign stores or providing certain services in physical retail establishments in connection with the marketing and sale of clear aligners in the U.S., and enjoined from using the SDC Entities’ confidential information. The arbitrator extended the expiration date of specified aspects of the restrictive covenant to August 18, 2022. The arbitrator also ordered Align to tender its SDC Financial LLC membership interests to the SDC Entities for a purchase price equal to the “capital account” balance as of October 31, 2017, to be determined in accordance with the applicable provisions of the SDC Operating Agreements. No financial damages were awarded to the SDC Entities. The Circuit Court for Cook County, Illinois confirmed the Award on April 29, 2019. As required by the Award, Align tendered its membership interests for a purchase price that SDC claimed to be Align’s “capital account” balance. Align disputed that the SDC Entities properly determined the value of Align’s “capital account” balance as of October 31, 2017. Consequently, on July 3, 2019, Align filed a confidential demand for arbitration challenging the propriety of the SDC Entities’ determination. On March 12, 2021 the Arbitrator issued a final award in favor of Align and against SDC finding that the SDC entities owed Align an additional $43.4 million plus interest. SDC paid the amount due to Align on March 17, 2021. On August 27, 2020, Align initiated a confidential arbitration proceeding against the SDC entities before the American Arbitration Association in San Jose, California. This arbitration relates to the Strategic Supply Agreement (“Supply Agreement”) entered into between the parties in 2016. The complaint alleges that the SDC Entities breached the Supply Agreement’s terms, causing damages to Align in an amount to be determined. On January 19, 2021, SDC filed a counterclaim alleging that Align breached the Supply Agreement. Align denies the SDC Entities’ allegations in the counterclaim and will vigorously defend itself against them. This arbitration hearing is set for July 18-29, 2022. Align is currently unable to predict the outcome of these disputes and therefore cannot determine the likelihood of loss or success nor estimate a range of possible loss or success, if any. In addition to the above, in the ordinary 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	3 Months Ended
Commitments and Contingencies	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Off-Balance Sheet Arrangements As of March 31, 2022, we had no material 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 other than certain items disclosed in Note 11 “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. 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 March 31, 2022, we did not have any material indemnification claims that were probable or reasonably possible.

Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

As of March 31, 2022, the 2005 Incentive Plan, as amended, has a total reserve of 27,783,379 shares of which 3,752,174 shares are available for issuance.

Summary of Stock-Based Compensation Expense

The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three months ended March 31, 2022 and 2021 is as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of net revenues	$	1,514	$	1,306
Selling, general and administrative	24,725		21,844

Research and development	5,382		4,091
Total stock-based compensation	$	31,621	$	27,241

Restricted Stock Units (“RSUs”)

The fair value of RSUs is based on our closing stock price on the date of grant. RSUs granted generally vest over a period of four years. A summary for the three months ended March 31, 2022 is as follows:


	Number of Shares Underlying RSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2021	492	$	369.17
Granted	217	499.14
Vested and released	(176)	330.33
Forfeited	(11)	423.61
Unvested as of March 31, 2022	522	$	435.22	1.8	$	227,614

As of March 31, 2022, we expect to recognize $192.2 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 2.8 years.

Market-Performance Based Restricted Stock Units (“MSUs”)

We grant MSUs to members of senior management. Each MSU represents the right to one share of Align’s common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of Align’s stock price relative to the performance of a stock market index over the vesting period. MSUs vest over a period of three years and the maximum number of eligible to vest in the future is 250% of the MSUs initially granted.

The following table summarizes the MSU performance for the three months ended March 31, 2022:


	Number of Shares Underlying MSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2021	174	$	551.57
Granted 1	101	607.96
Vested and released	(128)	396.10
Forfeited	(3)	744.39
Unvested as of March 31, 2022	144	$	725.73	1.7	$	62,814

1 Includes MSUs vested during the period above 100% of the grant as actual shares released is based on Align's stock performance over the vesting period

As of March 31, 2022, we expect to recognize $62.3 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 1.7 years.

Employee Stock Purchase Plan

As of March 31, 2022, we have 2,156,295 shares available for future issuance under our Amended and Restated 2010 Employee Stock Purchase Plan (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:


	Three Months Ended March 31,
	2022			2021
Expected term (in years)	1.5			1.0
Expected volatility	48.6		%	58.8		%
Risk-free interest rate	1.0		%	0.1		%
Expected dividends	—			—
Weighted average fair value at grant date	$	196.97		$	202.74

As of March 31, 2022, we expect to recognize $20.0 million of total unamortized compensation costs related to future employee stock purchases over a weighted average period of 1.0 year.

Common Stock Repurchase Program	3 Months Ended
Common Stock Repurchase Program	Mar. 31, 2022
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Program	Common Stock Repurchase Program In May 2021, our Board of Directors authorized a plan to repurchase up to $1.0 billion of our common stock (“May 2021 Repurchase Program”). As of March 31, 2022, we have $649.9 million available for repurchase under the May 2021 Repurchase Program. During February 2022, we repurchased on the open market approximately 0.1 million shares of our common stock at an average price of $522.61 per share, including commissions and fees, for an aggregate purchase price of $75.0 million. Subsequent to the first quarter, on April 29, 2022, we entered into an ASR to repurchase $200.0 million of our common stock. We paid $200.0 million and received an initial delivery of approximately 0.6 million shares based on current market prices. The final number of shares to be repurchased will be based on our volume-weighted average stock price under the terms of the ASR, less an agreed upon discount.

Accounting for Income Taxes	3 Months Ended
Accounting for Income Taxes	Mar. 31, 2022
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $53.2 million and $61.2 million for the three months ended March 31, 2022 and 2021, respectively representing effective tax rates of 28.4% and 23.4%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for both the three months ended March 31, 2022 and 2021 primarily due to the recognition of additional tax expense resulting from foreign income taxed at different rates, state income taxes, and non-deductible expenses in the U.S., partially offset by the recognition of excess tax benefits related to stock-based compensation. Additionally, a change in U.S. tax laws effective January 1, 2022 which requires capitalization and amortization of research and development expenses incurred after December 31, 2021 has increased our effective tax rate for the three months ended March 31, 2022. 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. We continue to assess the realizability of the deferred tax assets as we take into account new information. We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions include U.S. federal, the State of California and Switzerland. For U.S. federal and state tax returns, we are no longer subject to tax examinations for years before 2018 and 2016, respectively. Our Israeli subsidiary is under tax audit for years 2016 through 2019. During the fourth quarter of 2021, the Israel Tax Authority issued a tax assessment in connection with a 2016 transaction to which our Israeli subsidiary was a party. We filed an administrative appeal challenging the assessment during the first quarter of 2022 and, by doing so, proceeded to the next administrative stage of the audit. We will continue to vigorously defend our Israeli subsidiary’s tax return position. Based on our assessment of the information currently available, we have not derecognized or remeasured our tax positions with respect to this matter during the three months ended March 31, 2022. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2015. Our total gross unrecognized tax benefits, excluding interest and penalties, were $68.3 million and $63.3 million as of March 31, 2022 and December 31, 2021, respectively, a material amount 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. Total interest and penalties accrued as of March 31, 2022 was not material. While we defend income tax audits in various jurisdictions and the results of such audits may differ materially from the amounts accrued for each year, we cannot currently ascertain the bases on which any given audit will be ultimately resolved. Accordingly, we are unable to estimate the range of possible adjustments to our balance of gross unrecognized tax benefits in the next 12 months.

- Definition

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

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+ Details

Net Income Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Net Income per Share

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 March 31,
	2022		2021
Numerator:
Net income	$	134,298	$	200,376
Denominator:
Weighted average common shares outstanding, basic	78,742		79,000
Dilutive effect of potential common stock	451		798
Total shares, diluted	79,193		79,798

Net income per share, basic	$	1.71	$	2.54
Net income per share, diluted	$	1.70	$	2.51

Anti-dilutive potential common shares 1	151		76

1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow InformationThe supplemental cash flow information consists of the following (in thousands):


	Three Months Ended March 31,
	2022		2021
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$	58,876	$	45,354
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,292	$	6,923
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12,262	$	7,369

Segments and Geographical Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segments and Geographical Information

Segment Information

We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, and other separately managed general and administrative costs outside the operating segments. We group our operations into two reportable segments: Clear Aligner segment and Imaging Systems and CAD/CAM services (“Systems and Services”) segment.

Summarized financial information by segment is as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Net revenues
Clear Aligner	$	809,696	$	753,269
Systems and Services	163,523		141,502
Total net revenues	$	973,219	$	894,771
Gross profit
Clear Aligner	$	605,696	$	584,534
Systems and Services	103,650		92,564
Total gross profit	$	709,346	$	677,098
Income from operations
Clear Aligner	$	312,719	$	327,465
Systems and Services	50,799		47,228
Unallocated corporate expenses	(165,436)		(149,247)
Total income from operations	$	198,082	$	225,446
Stock-based compensation
Clear Aligner	$	2,854	$	2,294
Systems and Services	214		171
Unallocated corporate expenses	28,553		24,776
Total stock-based compensation	$	31,621	$	27,241
Depreciation and amortization
Clear Aligner	$	13,767	$	11,120
Systems and Services	6,922		4,545
Unallocated corporate expenses	8,937		9,970
Total depreciation and amortization	$	29,626	$	25,635

The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands):


	Three Months Ended March 31,
	2022		2021
Total segment income from operations	$	363,518	$	374,693
Unallocated corporate expenses	(165,436)		(149,247)



Total income from operations	198,082		225,446
Interest income	677		1,643
Other income (expense), net	(11,273)		34,532

Net income before provision for income taxes	$	187,486	$	261,621

Geographical Information

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


	Three Months Ended March 31,
	2022		2021
Net revenues 1:
U.S.	$	420,920	$	383,002
Switzerland	331,739		315,450


Other International	220,560		196,319
Total net revenues	$	973,219	$	894,771

1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):


	March 31, 2022		December 31, 2021
Long-lived assets 1:
Switzerland	$	477,312	$	444,205
U.S.	209,220		210,582
China	126,623		125,346

Other International	453,019		423,050
Total long-lived assets	$	1,266,174	$	1,203,183

1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

- Definition

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.

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Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2022
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”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2021, and contains all adjustments, including normal recurring adjustments, necessary to state fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other future period, and we make no representations related thereto.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the 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 revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes and contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies 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.
Certain Risk and Uncertainties	Certain Risks and Uncertainties As the pandemic continues and new variants of the virus emerge, we are seeing a resurgence of severe preventative measures to prevent its spread in China and, consequently, continuing fluctuations in the numbers of patients seeking treatment for dental services and the number of doctors providing services and treatments in other markets. The full extent to which the pandemic, including as a result of any new variants, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined. Further, we could also be materially adversely affected by supply chain disruptions, including shortages and inflationary pressures, uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers. The military conflict between Russia and Ukraine and its related impacts on the economy has caused significant worldwide challenges. While the situation is highly uncertain and evolving, its impact on the economy such as inflation, supply chain challenges, impacts on consumer confidence, purchasing power, sanctions and retaliatory sanctions among others, have impacted and could potentially subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope.
Revenue Recognition	Revenue Recognition Our revenues are derived primarily from the sale of aligners, scanners, and services from our Clear Aligner and Systems and Services segments. We enter into sales contracts that may consist of multiple distinct performance obligations where certain performance obligations of the sales contract are not delivered in one reporting period. We measure and allocate revenues according to ASC 606-10, “Revenues from Contracts with Customers.” We identify a performance obligation as distinct if both of the following criteria are met: the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Determining the standalone selling price (“SSP”) in order to allocate consideration from the contract to the individual performance obligations is the result of various factors, such as changing trends and market conditions, historical prices, costs, and gross margins. While changes in the allocation of the SSP between performance obligations will not affect the amount of total revenues recognized for a particular contract, any material changes could impact the timing of revenue recognition, which would have a material effect on our financial position and result of operations. This is because the contract consideration is allocated to each performance obligation, delivered or undelivered, at the inception of the contract based on the SSP of each distinct performance obligation. Clear Aligner We enter into contracts (“treatment plan(s)”) that involve multiple future performance obligations. Invisalign Comprehensive, Invisalign First, Invisalign Moderate, and Lite and Express Packages include optional additional aligners at no charge for a certain period of time ranging from six months to five years after initial shipment, and Invisalign Go and Invisalign Go Plus includes optional additional aligners at no charge for a period of up to two years after initial shipment. Our treatment plans comprise the following performance obligations that also represent distinct deliverables: initial aligners, the option of additional aligners, case refinement, and replacement aligners. We take the practical expedient to consider shipping and handling costs as activities to fulfill the performance obligation. We allocate revenues for each treatment plan based on each unit’s SSP. Management considers a variety of factors such as same or similar product historical sales, costs, and gross margin, which may vary over time depending upon the unique facts and circumstances related to each performance obligation in making these estimates. In addition to historical data, we take into consideration changing trends and market conditions. For treatment plans with multiple future performance obligations, we also consider usage rates, which is the number of times a customer is expected to order additional aligners. Our process for estimating usage rates requires significant judgment and evaluation of inputs, including historical usage data by region, country and channel. We recognize the revenues upon shipment, as the customers obtain physical possession, and we have enforceable rights to payment. As we collect most consideration upfront, we consider whether a significant financing component exists; however, as the delivery of the performance obligations are at the customer’s discretion, we conclude that no significant financing component exists. Systems and Services We sell intraoral scanners and CAD/CAM services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/or extended warranty, we allocate revenues based on the respective SSP of the scanner and the subscription service. We estimate the SSP of each element, taking into account factors such as same or similar historical prices and discounting strategies. Revenues are then recognized over time as the monthly services are rendered and upon shipment of the scanner, as that is when we deem the customer to have obtained control. CAD/CAM services, where sold separately, include the initial software license and maintenance and support. We allocate revenues based upon the respective SSPs of the software license and the maintenance and support. We estimate the SSP of each element using data such as historical prices. Revenues related to the software license are recognized upfront and revenues related to the maintenance and support are recognized over time. For both scanner and service sales, most consideration is collected upfront and in cases where there are payment plans, consideration is collected within one year and, therefore, there are no significant financing components.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board and do not believe any of the recently issued accounting pronouncements will have an impact on our consolidated financial statements or related disclosures.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

+ Details

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Investments, All Other Investments [Abstract]

Cash and Cash Equivalents

The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in thousands):


									Reported as:
March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	689,175	$	—	$	—	$	689,175	$	689,175	$	—	$	—
Money market funds	236,960		—		(16)		236,944		236,944		—		—
Corporate bonds	116,307		3		(2,389)		113,921		—		41,164		72,757
U.S. government treasury bonds	46,638		—		(511)		46,127		—		31,055		15,072
Asset-backed securities	27,453		—		(197)		27,256		—		10,984		16,272
Municipal bonds	6,049		—		(77)		5,972		—		3,546		2,426
U.S. government agency bonds	1,204		—		(36)		1,168		—		—		1,168

Total	$	1,123,786	$	3	$	(3,226)	$	1,120,563	$	926,119	$	86,749	$	107,695


									Reported as:
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	754,802	$	—	$	—	$	754,802	$	754,802	$	—	$	—
Money market funds	343,012		—		(2)		343,010		343,010		—		—
Corporate bonds	115,507		9		(398)		115,118		1,042		35,065		79,011
U.S. government treasury bonds	42,976		—		(48)		42,928		—		22,251		20,677
Asset-backed securities	32,031		—		(40)		31,991		—		10,999		20,992
Municipal bonds	7,628		—		(15)		7,613		516		3,657		3,440
U.S. government agency bonds	1,201		—		(1)		1,200		—		—		1,200

Total	$	1,297,157	$	9	$	(504)	$	1,296,662	$	1,099,370	$	71,972	$	125,320

Marketable Securities

The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in thousands):


									Reported as:
March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	689,175	$	—	$	—	$	689,175	$	689,175	$	—	$	—
Money market funds	236,960		—		(16)		236,944		236,944		—		—
Corporate bonds	116,307		3		(2,389)		113,921		—		41,164		72,757
U.S. government treasury bonds	46,638		—		(511)		46,127		—		31,055		15,072
Asset-backed securities	27,453		—		(197)		27,256		—		10,984		16,272
Municipal bonds	6,049		—		(77)		5,972		—		3,546		2,426
U.S. government agency bonds	1,204		—		(36)		1,168		—		—		1,168

Total	$	1,123,786	$	3	$	(3,226)	$	1,120,563	$	926,119	$	86,749	$	107,695


									Reported as:
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable securities, short-term		Marketable securities, long-term
Cash	$	754,802	$	—	$	—	$	754,802	$	754,802	$	—	$	—
Money market funds	343,012		—		(2)		343,010		343,010		—		—
Corporate bonds	115,507		9		(398)		115,118		1,042		35,065		79,011
U.S. government treasury bonds	42,976		—		(48)		42,928		—		22,251		20,677
Asset-backed securities	32,031		—		(40)		31,991		—		10,999		20,992
Municipal bonds	7,628		—		(15)		7,613		516		3,657		3,440
U.S. government agency bonds	1,201		—		(1)		1,200		—		—		1,200

Total	$	1,297,157	$	9	$	(504)	$	1,296,662	$	1,099,370	$	71,972	$	125,320

Contractual Maturity of Marketable Securities

The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Due in 1 year or less	$	67,225	$	59,737
Due in 1 year through 5 years	$	127,219	139,113
Total	$	194,444	$	198,850

Financial Assets Measured At Fair Value On A Recurring Basis

The following tables summarize our financial assets measured at fair value as of March 31, 2022 and December 31, 2021 (in thousands):


Description	Balance as of March 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	236,944	$	236,944	$	—	$	—





Short-term investments:


U.S. government treasury bonds	31,055		31,055		—		—
Corporate bonds	41,164		—		41,164		—
Municipal bonds	3,546		—		3,546		—
Asset-backed securities	10,984		—		10,984		—
Long-term investments:
U.S. government treasury bonds	15,072		15,072		—		—
Corporate bonds	72,757		—		72,757		—
Municipal bonds	2,426		—		2,426		—
U.S. government agency bonds	1,168		—		1,168		—
Asset-backed securities	16,272		—		16,272		—

Other assets:
Investments in privately held companies	11,225		—		—		11,225
	$	442,613	$	283,071	$	148,317	$	11,225


Description	Balance as of December 31, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	343,010	$	343,010	$	—	$	—

Corporate bonds	1,042		—		1,042		—
Municipal bonds	516		—		516		—

Short-term investments:
U.S. government treasury bonds	22,251		22,251		—		—
Corporate bonds	35,065		—		35,065		—
Municipal bonds	3,657		—		3,657		—
Asset-backed securities	10,999		—		10,999		—



Long-term investments:
U.S. government treasury bonds	20,677		20,677		—		—
Corporate bonds	79,011		—		79,011		—
Municipal bonds	3,440		—		3,440		—
U.S. government agency bonds	1,200		—		1,200		—
Asset-backed securities	20,992		—		20,992		—
Prepaid expenses and other current assets:
Israeli funds	3,841		—		3,841		—


Other assets:
Investments in privately held companies	8,621		—		—		8,621
	$	554,322	$	385,938	$	159,763	$	8,621

Schedule of Notional Amounts of Outstanding Derivative Positions

The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022
	Local Currency Amount	Notional Contract Amount (USD)
Euro	€189,795	$	210,031
Chinese Yuan	¥520,500	81,862
Polish Zloty	PLN324,500	77,086
Canadian Dollar	C$96,000	76,733
Brazilian Real	R$323,700	67,665
Japanese Yen	¥5,666,200	46,621
British Pound	£32,275	42,394
Russian Ruble	₽3,700,000	35,885
Swiss Franc	CHF17,270	18,692
Israeli Shekel	ILS54,210	17,085
Mexican Peso	M$281,560	14,127
Australian Dollar	A$5,000	3,748
		$	691,929


	December 31, 2021
	Local Currency Amount	Notional Contract Amount (USD)
Euro	€165,110	$	186,358
Canadian Dollar	C$99,800	78,018
Chinese Yuan	¥494,500	77,358
Polish Zloty	PLN219,800	54,014
Brazilian Real	R$286,500	50,894
Japanese Yen	¥5,548,700	48,206
British Pound	£34,740	46,881
Israeli Shekel	ILS54,110	17,416
Mexican Peso	M$311,500	15,133
Swiss Franc	CHF9,950	10,883
Australian Dollar	A$6,900	5,009
		$	590,170

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2022

Notes To Financial Statements [Abstract]

Schedule of Inventories

Inventories consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Raw materials	$	133,808	$	123,234
Work in process	79,495		51,706
Finished goods	62,366		55,290
Total inventories	$	275,669	$	230,230

Schedule of Prepaid Expense and Other Assets

Prepaid expenses and other current assets consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Value added tax receivables	$	134,941	$	93,610
Prepaid expenses	74,069		70,218
Other current assets	32,329		31,477
Total prepaid expenses and other current assets	$	241,339	$	195,305

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Accrued payroll and benefits	$	156,272	$	288,355
Accrued expenses	66,211		67,169
Accrued income taxes	45,646		33,838
Accrued sales and marketing expenses	41,221		41,387
Accrued professional fees	36,340		31,457
Accrued property, plant and equipment	25,296		46,561
Current operating lease liabilities	25,243		22,719
Other accrued liabilities	68,842		75,829
Total accrued liabilities	$	465,071	$	607,315

Schedule of Warranty Accrual

Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands):


	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	16,169	$	12,615
Charged to cost of net revenues	3,536		4,280
Actual warranty expenditures	(3,612)		(3,160)
Balance at end of period	$	16,093	$	13,735

Schedule of Deferred Revenues

Deferred revenues consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Deferred revenues - current	$	1,212,067	$	1,152,870
Deferred revenues - long-term 1	$	146,998	$	136,684

1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Notes To Financial Statements [Abstract]

Summary of Goodwill by Reportable Segment

The change in the carrying value of goodwill for the three months ended March 31, 2022, categorized by reportable segments, is as follows (in thousands):


	Clear Aligner		Systems and Services		Total
Balance as of December 31, 2021	$	112,208	$	306,339	$	418,547

Foreign currency translation adjustments	(642)		(5,940)		(6,582)
Balance as of March 31, 2022	$	111,566	$	300,399	$	411,965

Schedule of Amortized Intangible Assets

Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands):


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of March 31, 2022		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of March 31, 2022
Existing technology	10	$	104,531	$	(25,068)	$	(4,328)	$	75,135
Customer relationships	11	55,000		(26,894)		(10,751)		17,355
Trademarks and tradenames	10	17,200		(5,006)		(4,179)		8,015
Patents	8	6,511		(4,693)		—		1,818
		$	183,242	$	(61,661)	$	(19,258)	102,323
Foreign currency translation adjustments								1,176
Total intangible assets, net								$	103,499


	Weighted Average Amortization Period (in years)	Gross Carrying Amount as of December 31, 2021		Accumulated Amortization		Accumulated Impairment Loss		Net Carrying Value as of December 31, 2021
Existing technology	10	$	104,531	$	(22,495)	$	(4,328)	$	77,708
Customer relationships	11	55,000		(25,891)		(10,751)		18,358
Trademarks and tradenames	10	17,200		(4,547)		(4,179)		8,474
Patents	8	6,511		(4,495)		—		2,016
		$	183,242	$	(57,428)	$	(19,258)	106,556
Foreign currency translation adjustments								3,153
Total intangible assets, net								$	109,709

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2022 is as follows (in thousands):


Fiscal Year Ending December 31,	Amortization
Remainder of 2022	$	11,459
2023	14,997
2024	13,831
2025	13,455
2026	12,849
Thereafter	35,732
Total	$	102,323

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stock-based Compensation Expense

The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three months ended March 31, 2022 and 2021 is as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cost of net revenues	$	1,514	$	1,306
Selling, general and administrative	24,725		21,844

Research and development	5,382		4,091
Total stock-based compensation	$	31,621	$	27,241

Summary Of Restricted Stock Units

A summary for the three months ended March 31, 2022 is as follows:


	Number of Shares Underlying RSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2021	492	$	369.17
Granted	217	499.14
Vested and released	(176)	330.33
Forfeited	(11)	423.61
Unvested as of March 31, 2022	522	$	435.22	1.8	$	227,614

Summary Of Market-performance Based Restricted Stock Units

The following table summarizes the MSU performance for the three months ended March 31, 2022:


	Number of Shares Underlying MSUs (in thousands)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2021	174	$	551.57
Granted 1	101	607.96
Vested and released	(128)	396.10
Forfeited	(3)	744.39
Unvested as of March 31, 2022	144	$	725.73	1.7	$	62,814

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:


	Three Months Ended March 31,
	2022			2021
Expected term (in years)	1.5			1.0
Expected volatility	48.6		%	58.8		%
Risk-free interest rate	1.0		%	0.1		%
Expected dividends	—			—
Weighted average fair value at grant date	$	196.97		$	202.74

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

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 March 31,
	2022		2021
Numerator:
Net income	$	134,298	$	200,376
Denominator:
Weighted average common shares outstanding, basic	78,742		79,000
Dilutive effect of potential common stock	451		798
Total shares, diluted	79,193		79,798

Net income per share, basic	$	1.71	$	2.54
Net income per share, diluted	$	1.70	$	2.51

Anti-dilutive potential common shares 1	151		76

1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

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


	Three Months Ended March 31,
	2022		2021
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$	58,876	$	45,354
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,292	$	6,923
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12,262	$	7,369

Segments and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Summarized financial information by segment is as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Net revenues
Clear Aligner	$	809,696	$	753,269
Systems and Services	163,523		141,502
Total net revenues	$	973,219	$	894,771
Gross profit
Clear Aligner	$	605,696	$	584,534
Systems and Services	103,650		92,564
Total gross profit	$	709,346	$	677,098
Income from operations
Clear Aligner	$	312,719	$	327,465
Systems and Services	50,799		47,228
Unallocated corporate expenses	(165,436)		(149,247)
Total income from operations	$	198,082	$	225,446
Stock-based compensation
Clear Aligner	$	2,854	$	2,294
Systems and Services	214		171
Unallocated corporate expenses	28,553		24,776
Total stock-based compensation	$	31,621	$	27,241
Depreciation and amortization
Clear Aligner	$	13,767	$	11,120
Systems and Services	6,922		4,545
Unallocated corporate expenses	8,937		9,970
Total depreciation and amortization	$	29,626	$	25,635

The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands):


	Three Months Ended March 31,
	2022		2021
Total segment income from operations	$	363,518	$	374,693
Unallocated corporate expenses	(165,436)		(149,247)



Total income from operations	198,082		225,446
Interest income	677		1,643
Other income (expense), net	(11,273)		34,532

Net income before provision for income taxes	$	187,486	$	261,621

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

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


	Three Months Ended March 31,
	2022		2021
Net revenues 1:
U.S.	$	420,920	$	383,002
Switzerland	331,739		315,450


Other International	220,560		196,319
Total net revenues	$	973,219	$	894,771

1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities.

Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands):


	March 31, 2022		December 31, 2021
Long-lived assets 1:
Switzerland	$	477,312	$	444,205
U.S.	209,220		210,582
China	126,623		125,346

Other International	453,019		423,050
Total long-lived assets	$	1,266,174	$	1,203,183

1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Cash, cash equivalents and marketable securities	$ 1,123,786	$ 1,297,157
Gross Unrealized Gains
Cash, cash equivalents and marketable securities	3	9
Gross Unrealized Losses
Cash, cash equivalents and marketable securities	(3,226)	(504)
Fair Value
Cash and cash equivalents	926,119	1,099,370
Cash, cash equivalents and marketable securities	1,120,563	1,296,662
Cash
Amortized Cost
Cash and cash equivalents	689,175	754,802
Fair Value
Cash and cash equivalents	689,175	754,802
Cash and Cash Equivalents
Fair Value
Cash, cash equivalents and marketable securities	926,119	1,099,370
Cash and Cash Equivalents \| Cash
Fair Value
Cash and cash equivalents	689,175	754,802
Marketable securities, short-term
Fair Value
Cash, cash equivalents and marketable securities	86,749	71,972
Marketable securities, long-term
Fair Value
Cash, cash equivalents and marketable securities	107,695	125,320
Money market funds
Amortized Cost
Cash and cash equivalents	236,960	343,012
Gross Unrealized Losses
Cash and cash equivalents	(16)	(2)
Fair Value
Cash and cash equivalents	236,944	343,010
Money market funds \| Cash and Cash Equivalents
Fair Value
Cash and cash equivalents	236,944	343,010
Corporate bonds
Amortized Cost
Marketable securities	116,307	115,507
Gross Unrealized Gains
Marketable securities	3	9
Gross Unrealized Losses
Marketable securities	(2,389)	(398)
Fair Value
Marketable securities	113,921	115,118
Corporate bonds \| Cash and Cash Equivalents
Fair Value
Marketable securities		1,042
Corporate bonds \| Marketable securities, short-term
Fair Value
Marketable securities	41,164	35,065
Corporate bonds \| Marketable securities, long-term
Fair Value
Marketable securities	72,757	79,011
U.S. government treasury bonds
Amortized Cost
Marketable securities	46,638	42,976
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(511)	(48)
Fair Value
Marketable securities	46,127	42,928
U.S. government treasury bonds \| Marketable securities, short-term
Fair Value
Marketable securities	31,055	22,251
U.S. government treasury bonds \| Marketable securities, long-term
Fair Value
Marketable securities	15,072	20,677
Asset-backed securities
Amortized Cost
Marketable securities	27,453	32,031
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(197)	(40)
Fair Value
Marketable securities	27,256	31,991
Asset-backed securities \| Marketable securities, short-term
Fair Value
Marketable securities	10,984	10,999
Asset-backed securities \| Marketable securities, long-term
Fair Value
Marketable securities	16,272	20,992
Municipal bonds
Amortized Cost
Marketable securities	6,049	7,628
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(77)	(15)
Fair Value
Marketable securities	5,972	7,613
Municipal bonds \| Cash and Cash Equivalents
Fair Value
Marketable securities		516
Municipal bonds \| Marketable securities, short-term
Fair Value
Marketable securities	3,546	3,657
Municipal bonds \| Marketable securities, long-term
Fair Value
Marketable securities	2,426	3,440
U.S. government agency bonds
Amortized Cost
Marketable securities	1,204	1,201
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(36)	(1)
Fair Value
Marketable securities	1,168	1,200
U.S. government agency bonds \| Marketable securities, long-term
Fair Value
Marketable securities	$ 1,168	$ 1,200

Financial Instruments - Contractual Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 67,225	$ 59,737
Due in 1 year through 5 years	127,219	139,113
Total	$ 194,444	$ 198,850

Financial Instruments - Narrative (Details) - Foreign Exchange Forward - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) on derivative	$ 0.0	$ 12.4
Fair value of derivative asset	$ 8.4		$ 0.0

Financial Instruments - Derivative Financial Instruments (Details) - Level 2 - Prepaid expenses and other current assets: - Foreign Exchange Forward ₽ in Thousands, € in Thousands, ₪ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, SFr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Mar. 31, 2022 CNY (¥)	Mar. 31, 2022 PLN (zł)	Mar. 31, 2022 CAD ($)	Mar. 31, 2022 BRL (R$)	Mar. 31, 2022 JPY (¥)	Mar. 31, 2022 GBP (£)	Mar. 31, 2022 RUB (₽)	Mar. 31, 2022 CHF (SFr)	Mar. 31, 2022 ILS (₪)	Mar. 31, 2022 MXN ($)	Mar. 31, 2022 AUD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 PLN (zł)	Dec. 31, 2021 CAD ($)	Dec. 31, 2021 BRL (R$)	Dec. 31, 2021 JPY (¥)	Dec. 31, 2021 GBP (£)	Dec. 31, 2021 CHF (SFr)	Dec. 31, 2021 ILS (₪)	Dec. 31, 2021 MXN ($)	Dec. 31, 2021 AUD ($)
Derivative [Line Items]
Notional amount	$ 691,929													$ 590,170
Euro
Derivative [Line Items]
Notional amount	210,031	€ 189,795												186,358	€ 165,110
Chinese Yuan
Derivative [Line Items]
Notional amount	81,862		¥ 520,500											77,358		¥ 494,500
Polish Zloty
Derivative [Line Items]
Notional amount	77,086			zł 324,500										54,014			zł 219,800
Canadian Dollar
Derivative [Line Items]
Notional amount	76,733				$ 96,000									78,018				$ 99,800
Brazilian Real
Derivative [Line Items]
Notional amount	67,665					R$ 323,700								50,894					R$ 286,500
Japanese Yen
Derivative [Line Items]
Notional amount	46,621						¥ 5,666,200							48,206						¥ 5,548,700
British Pound
Derivative [Line Items]
Notional amount	42,394							£ 32,275						46,881							£ 34,740
Russian Ruble
Derivative [Line Items]
Notional amount	35,885								₽ 3,700,000
Swiss Franc
Derivative [Line Items]
Notional amount	18,692									SFr 17,270				10,883								SFr 9,950
Israeli Shekel
Derivative [Line Items]
Notional amount	17,085										₪ 54,210			17,416									₪ 54,110
Mexican Peso
Derivative [Line Items]
Notional amount	14,127											$ 281,560		15,133										$ 311,500
Australian Dollar
Derivative [Line Items]
Notional amount	$ 3,748												$ 5,000	$ 5,009											$ 6,900

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Raw materials	$ 133,808	$ 123,234
Work in process	79,495	51,706
Finished goods	62,366	55,290
Total inventories	$ 275,669	$ 230,230

Balance Sheet Components Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Value added tax receivables	$ 134,941	$ 93,610
Prepaid expenses	74,069	70,218
Other current assets	32,329	31,477
Total prepaid expenses and other current assets	$ 241,339	$ 195,305

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 156,272	$ 288,355
Accrued expenses	66,211	67,169
Accrued income taxes	45,646	33,838
Accrued sales and marketing expenses	41,221	41,387
Accrued professional fees	36,340	31,457
Accrued property, plant and equipment	25,296	46,561
Current operating lease liabilities	25,243	22,719
Other accrued liabilities	68,842	75,829
Accrued liabilities	$ 465,071	$ 607,315

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 16,169	$ 12,615
Charged to cost of net revenues	3,536	4,280
Actual warranty expenditures	(3,612)	(3,160)
Balance at end of period	$ 16,093	$ 13,735

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 1,212,067	$ 1,152,870
Deferred revenues - long-term	$ 146,998	$ 136,684

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 973,219	$ 894,771
Deferred revenues	184,900	$ 125,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation	$ 1,385,400
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	5 years

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2021	$ 418,547
Foreign currency translation adjustments	(6,582)
Balance as of March 31, 2022	411,965
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2021	112,208
Foreign currency translation adjustments	(642)
Balance as of March 31, 2022	111,566
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2021	306,339
Foreign currency translation adjustments	(5,940)
Balance as of March 31, 2022	$ 300,399

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 183,242	$ 183,242
Accumulated Amortization	(61,661)	(57,428)
Accumulated Impairment Loss	(19,258)	(19,258)
Net carrying value	102,323	106,556
Foreign currency translation adjustments	1,176	3,153
Total intangible assets	$ 103,499	$ 109,709
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount	$ 104,531	$ 104,531
Accumulated Amortization	(25,068)	(22,495)
Accumulated Impairment Loss	(4,328)	(4,328)
Net carrying value	$ 75,135	$ 77,708
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	11 years	11 years
Gross carrying amount	$ 55,000	$ 55,000
Accumulated Amortization	(26,894)	(25,891)
Accumulated Impairment Loss	(10,751)	(10,751)
Net carrying value	$ 17,355	$ 18,358
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount	$ 17,200	$ 17,200
Accumulated Amortization	(5,006)	(4,547)
Accumulated Impairment Loss	(4,179)	(4,179)
Net carrying value	$ 8,015	$ 8,474
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	8 years	8 years
Gross carrying amount	$ 6,511	$ 6,511
Accumulated Amortization	(4,693)	(4,495)
Accumulated Impairment Loss	0	0
Net carrying value	$ 1,818	$ 2,016

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2022	$ 11,459
2023	14,997
2024	13,831
2025	13,455
2026	12,849
Thereafter	35,732
Net carrying value	$ 102,323	$ 106,556

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 4.3	$ 3.9

Credit Facility - Additional Information (Details) - 2020 Credit Facility - USD ($)	Jul. 21, 2020	Mar. 31, 2022
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 300,000,000
Outstanding borrowings		$ 0
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 50,000,000
Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Minimum \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Minimum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Maximum \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Maximum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%

Legal Proceedings - Narrative (Details) $ in Millions	Jun. 30, 2021 USD ($)	Mar. 12, 2021 USD ($)	Jan. 31, 2019 claim
SDC Dispute
Loss Contingencies [Line Items]
Amount owed from other party		$ 43.4
2018 Securities Class Action Lawsuit
Loss Contingencies [Line Items]
Settlement amount	$ 16.0
Shareholder Derivative Lawsuit
Loss Contingencies [Line Items]
Number of lawsuits \| claim			3

Stockholders' Equity - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) shares
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance \| shares	27,783,379
Shares available for issuance \| shares	3,752,174
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance \| shares	2,156,295
Total unamortized compensation cost \| $	$ 20.0
Weighted average period of total unamortized cost (in years)	1 year
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Total unamortized compensation cost \| $	$ 192.2
Weighted average period of total unamortized cost (in years)	2 years 9 months 18 days
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Total unamortized compensation cost \| $	$ 62.3
Weighted average period of total unamortized cost (in years)	1 year 8 months 12 days
Maximum percentage of market-performance based restricted stock units eligible to vest over the vesting period	250.00%

Stockholders' Equity - Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 31,621	$ 27,241
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,514	1,306
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	24,725	21,844
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 5,382	$ 4,091

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) \| shares	492
Granted (in shares) \| shares	217
Vested and released (in shares) \| shares	(176)
Forfeited (in shares) \| shares	(11)
Unvested, end of period (in shares) \| shares	522
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) \| $ / shares	$ 369.17
Granted (in usd per share) \| $ / shares	499.14
Vested and released (in usd per share) \| $ / shares	330.33
Forfeited (in usd per share) \| $ / shares	423.61
Unvested, end of period (in usd per share) \| $ / shares	$ 435.22
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 9 months 18 days
Aggregate Intrinsic Value
Aggregate intrinsic value \| $	$ 227,614
Market Performance Based Restricted Stock Units
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) \| shares	174
Granted (in shares) \| shares	101
Vested and released (in shares) \| shares	(128)
Forfeited (in shares) \| shares	(3)
Unvested, end of period (in shares) \| shares	144
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) \| $ / shares	$ 551.57
Granted (in usd per share) \| $ / shares	607.96
Vested and released (in usd per share) \| $ / shares	396.10
Forfeited (in usd per share) \| $ / shares	744.39
Unvested, end of period (in usd per share) \| $ / shares	$ 725.73
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 8 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value \| $	$ 62,814

Stockholders' Equity - Stock-based Compensation Employee Stock Purchase Plan Fair Value Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Class of Stock [Line Items]
Expected term (in years)	1 year 6 months	1 year
Expected volatility	48.60%	58.80%
Risk-free interest rate	1.00%	0.10%
Expected dividends	0.00%	0.00%
Weighted average fair value at grant date (in usd per share)	$ 196.97	$ 202.74

Common Stock Repurchase Program - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions		1 Months Ended	3 Months Ended
	Apr. 29, 2022	Feb. 28, 2022	Mar. 31, 2022	Mar. 31, 2021	May 31, 2021
Share Repurchases [Line Items]
Common stock repurchased and retired			$ 75,036,000
Payments for accelerated share repurchase			75,036,000	$ 0
May 2021 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount					$ 1,000,000,000
Amount available for repurchase			$ 649,900,000
Shares repurchased (in shares)		0.1
Share repurchase price (in dollars per share)		$ 522.61
Common stock repurchased and retired		$ 75,000,000
April 2022 Accelerated Share Repurchase \| Subsequent Event
Share Repurchases [Line Items]
Authorized repurchase amount	$ 200,000,000
Shares repurchased (in shares)	0.6
Payments for accelerated share repurchase	$ 200,000,000

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Disclosure Accounting For Income Taxes Additional Information [Abstract]
Provision for income taxes	$ 53,188	$ 61,245
Effective income tax rate, continuing operations	28.40%	23.40%
Unrecognized tax benefits	$ 68,300		$ 63,300

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 134,298	$ 200,376
Weighted average common shares outstanding, basic (in shares)	78,742	79,000
Dilutive effect of potential common stock (in shares)	451	798
Total shares, diluted (in shares)	79,193	79,798
Net income per share, basic (in usd per share)	$ 1.71	$ 2.54
Net income per share, diluted (in usd per share)	$ 1.70	$ 2.51
Anti-dilutive potential common shares (in shares)	151	76

- Definition

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

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- Definition

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

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+ Details

- Definition

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

+ References

+ Details

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$ 58,876	$ 45,354
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	7,292	6,923
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 12,262	$ 7,369

Segments and Geographical Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segments and Geographical Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 973,219	$ 894,771
Gross profit	709,346	677,098
Income from operations	198,082	225,446
Stock-based compensation	31,621	27,241
Depreciation and amortization	29,626	25,635
Interest income	677	1,643
Other income (expense), net	(11,273)	34,532
Net income before provision for income taxes	187,486	261,621
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	363,518	374,693
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(165,436)	(149,247)
Stock-based compensation	28,553	24,776
Depreciation and amortization	8,937	9,970
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	809,696	753,269
Gross profit	605,696	584,534
Clear Aligner \| Operating Segments
Segment Reporting Information [Line Items]
Income from operations	312,719	327,465
Stock-based compensation	2,854	2,294
Depreciation and amortization	13,767	11,120
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	163,523	141,502
Gross profit	103,650	92,564
Systems and Services \| Operating Segments
Segment Reporting Information [Line Items]
Income from operations	50,799	47,228
Stock-based compensation	214	171
Depreciation and amortization	$ 6,922	$ 4,545

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 973,219	$ 894,771
U.S.
Segment Reporting Information [Line Items]
Net revenues	420,920	383,002
Switzerland
Segment Reporting Information [Line Items]
Net revenues	331,739	315,450
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 220,560	$ 196,319

- Definition

+ References

+ Details

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total long-lived assets	$ 1,266,174	$ 1,203,183
Switzerland
Segment Reporting Information [Line Items]
Total long-lived assets	477,312	444,205
U.S.
Segment Reporting Information [Line Items]
Total long-lived assets	209,220	210,582
China
Segment Reporting Information [Line Items]
Total long-lived assets	126,623	125,346
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	$ 453,019	$ 423,050

Financial Instruments - Fair Value Measured On A Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	$ 86,749	$ 71,972
Long-term investments	107,695	125,320
Assets measured at fair value	442,613	554,322
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	283,071	385,938
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	148,317	159,763
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	11,225	8,621
Money market funds \| Fair Value, Measurements, Recurring \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	236,944	343,010
Money market funds \| Fair Value, Measurements, Recurring \| Level 1 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	236,944	343,010
Money market funds \| Fair Value, Measurements, Recurring \| Level 2 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	0	0
Money market funds \| Fair Value, Measurements, Recurring \| Level 3 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	0	0
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	31,055	22,251
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	15,072	20,677
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	31,055	22,251
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	15,072	20,677
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Corporate bonds \| Fair Value, Measurements, Recurring \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Corporate bonds \| Fair Value, Measurements, Recurring \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	41,164	35,065
Corporate bonds \| Fair Value, Measurements, Recurring \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	72,757	79,011
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	41,164	35,065
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	72,757	79,011
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Corporate bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Municipal bonds \| Fair Value, Measurements, Recurring \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Municipal bonds \| Fair Value, Measurements, Recurring \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,546	3,657
Municipal bonds \| Fair Value, Measurements, Recurring \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	2,426	3,440
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,546	3,657
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	2,426	3,440
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,168	1,200
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,168	1,200
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 3 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Asset-backed securities \| Fair Value, Measurements, Recurring \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	10,984	10,999
Asset-backed securities \| Fair Value, Measurements, Recurring \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	16,272	20,992
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 1 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 1 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 2 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	10,984	10,999
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 2 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	16,272	20,992
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 3 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 3 \| Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Israeli funds \| Fair Value, Measurements, Recurring \| Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds \| Fair Value, Measurements, Recurring \| Level 1 \| Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Israeli funds \| Fair Value, Measurements, Recurring \| Level 2 \| Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds \| Fair Value, Measurements, Recurring \| Level 3 \| Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Investments in privately held companies \| Fair Value, Nonrecurring \| Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	11,225	8,621
Investments in privately held companies \| Fair Value, Nonrecurring \| Level 1 \| Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	0	0
Investments in privately held companies \| Fair Value, Nonrecurring \| Level 2 \| Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	0	0
Investments in privately held companies \| Fair Value, Nonrecurring \| Level 3 \| Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	$ 11,225	$ 8,621