Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document Information [Line Items] | ' | ' |
Trading Symbol | 'ALGN | ' |
Entity Registrant Name | 'ALIGN TECHNOLOGY INC | ' |
Entity Central Index Key | '0001097149 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 80,793,072 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Net revenues | $192,531 | [1] | $163,828 | [1] | $373,177 | [1] | $317,408 | [1] |
Cost of net revenues | 47,055 | 40,137 | 90,450 | 80,868 | ||||
Gross profit | 145,476 | 123,691 | 282,727 | 236,540 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Sales and marketing | 56,386 | 47,847 | 109,274 | 90,128 | ||||
General and administrative | 27,069 | 27,027 | 56,248 | 57,375 | ||||
Research and development | 13,289 | 10,916 | 26,669 | 22,198 | ||||
Impairment of goodwill | 0 | 0 | 0 | 40,693 | ||||
Asset Impairment Charges | 0 | 0 | 0 | 26,320 | ||||
Total operating expenses | 96,744 | 85,790 | 192,191 | 236,714 | ||||
Profit from operations | 48,732 | 37,901 | 90,536 | -174 | ||||
Interest and other income (expense), net | -93 | -335 | 508 | -1,323 | ||||
Net profit before provision for income taxes | 48,639 | 37,566 | 91,044 | -1,497 | ||||
Provision for income taxes | 13,039 | 8,246 | 23,000 | 11,166 | ||||
Net profit (loss) | $35,600 | $29,320 | $68,044 | ($12,663) | ||||
Net profit (loss) per share: | ' | ' | ' | ' | ||||
Basic (in usd per share) | $0.44 | $0.36 | $0.84 | ($0.16) | ||||
Diluted (in usd per share) | $0.43 | $0.36 | $0.82 | ($0.16) | ||||
Shares used in computing net profit (loss) per share: | ' | ' | ' | ' | ||||
Basic (in shares) | 81,027 | 80,576 | 81,073 | 80,909 | ||||
Diluted (in shares) | 82,341 | 82,149 | 82,651 | 80,909 | ||||
[1] | Net revenues are attributed to countries based on location of where revenue is recognized. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net profit (loss) | $35,600 | $29,320 | $68,044 | ($12,663) |
Foreign currency translation adjustments | -4 | -8 | 102 | -64 |
Change in unrealized gains (losses) on available-for-sale securities, net of tax | 70 | -186 | 112 | -183 |
Net change in accumulated other comprehensive income (losses) | 66 | -194 | 214 | -247 |
Other comprehensive income (loss) | $35,666 | $29,126 | $68,258 | ($12,910) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $167,471 | $242,953 |
Marketable securities, short-term | 198,059 | 127,040 |
Accounts receivable, net of allowances for doubtful accounts and returns of $1,969 and $1,733, respectively | 131,028 | 113,250 |
Inventories | 13,115 | 13,968 |
Prepaid expenses and other current assets | 44,839 | 47,465 |
Total current assets | 554,512 | 544,676 |
Marketable securities, long-term | 137,148 | 101,978 |
Property, plant and equipment, net | 81,312 | 75,743 |
Goodwill | 83,795 | 85,362 |
Deferred tax assets | 20,456 | 15,766 |
Other assets | 8,210 | 8,622 |
Total assets | 885,433 | 832,147 |
Current liabilities: | ' | ' |
Accounts payable | 20,939 | 17,718 |
Accrued liabilities | 81,049 | 80,345 |
Deferred revenues | 85,125 | 77,275 |
Total current liabilities | 187,113 | 175,338 |
Other long-term liabilities | 22,524 | 22,839 |
Total liabilities | 209,637 | 198,177 |
Commitments and contingencies (Note 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; 80,783 and 80,583 issued and outstanding at 2014 and 2013, respectively) | 8 | 8 |
Additional paid-in capital | 742,886 | 729,578 |
Accumulated other comprehensive income (loss), net | 508 | 294 |
Accumulated deficit | -67,606 | -95,910 |
Total stockholders' equity | 675,796 | 633,970 |
Total liabilities and stockholders' equity | $885,433 | $832,147 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts and returns | $1,969 | $1,733 |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 80,783 | 80,583 |
Common stock, shares outstanding | 80,783 | 80,583 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net profit (loss) | $68,044 | ($12,663) |
Adjustments to reconcile net profit to net cash provided by operating activities: | ' | ' |
Deferred taxes | 17,496 | 6,272 |
Depreciation, Depletion and Amortization | 9,130 | 8,789 |
Stock-based compensation | 19,438 | 13,675 |
Excess tax benefit from share-based payment arrangements | -16,161 | -15,331 |
Impairment of goodwill | 0 | 40,693 |
Asset Impairment Charges | 0 | 26,320 |
Other Noncash Income (Expense) | 5,095 | 389 |
Changes in assets and liabilities, net of acquired assets and liabilities: | ' | ' |
Accounts receivable | -21,407 | -9,050 |
Inventories | 855 | -581 |
Prepaid expenses and other assets | -2,806 | -234 |
Accounts payable | -9 | 50 |
Accrued and other long-term liabilities | 1,343 | 3,298 |
Deferred revenues | 6,705 | 2,099 |
Net cash provided by operating activities | 87,723 | 63,726 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | -7,652 |
Purchase of property, plant and equipment | -9,960 | -9,389 |
Purchase of marketable securities | -232,178 | -150,806 |
Maturities of marketable securities | 92,005 | 18,117 |
Proceeds from Sale of Available-for-sale Securities | 32,683 | 5,043 |
Other assets | -133 | 915 |
Net cash used in investing activities | -117,583 | -143,772 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of common stock | 12,622 | 21,128 |
Common stock repurchase | -49,000 | -95,108 |
Equity forward contract related to accelerated share repurchase | -21,000 | 0 |
Excess tax benefit from share-based payment arrangements | 16,161 | 15,331 |
Employees' taxes paid upon the vesting of restricted stock units | -4,650 | -3,234 |
Other financing activities | 0 | -13 |
Net cash provided by financing activities | -45,867 | -61,896 |
Effect of foreign exchange rate changes on cash and cash equivalents | 245 | 53 |
Net increase (decrease) in cash and cash equivalents | -75,482 | -141,889 |
Cash and cash equivalents, beginning of the period | 242,953 | 306,386 |
Cash and cash equivalents, end of the period | $167,471 | $164,497 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") and contain all adjustments, including normal recurring adjustments, necessary to present fairly our results of operations for the three and six months ended June 30, 2014 and 2013, our comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013, our financial position as of June 30, 2014 and our cash flows for the six months ended June 30, 2014 and 2013. The Condensed Consolidated Balance Sheet as of December 31, 2013 was derived from the December 31, 2013 audited financial statements. Net revenues by geographic area for prior period amounts in Note 13 have been reclassified to conform with the current period presentation. These reclassifications had no impact on our financial position for the three or six months ended June 30, 2014 and 2013. | |
The results of operations for the three months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other future period, and we make no representations related thereto. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America (“U.S.”) requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to the fair values of financial instruments, long-lived assets and goodwill, useful lives of intangible assets and property and equipment, stock-based compensation, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us in the first quarter of fiscal 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. |
Marketable_Securities_and_Fair
Marketable Securities and Fair Value Measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Notes To Financial Statements [Abstract] | ' | |||||||||||||||
Marketable Securities and Fair Value Measurements | ' | |||||||||||||||
Note 2. Marketable Securities and Fair Value Measurements | ||||||||||||||||
As of June 30, 2014 and December 31, 2013, the estimated fair value of our short-term and long-term marketable securities, classified as available for sale, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
June 30, 2014 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Commercial paper | $ | 51,103 | $ | — | $ | — | $ | 51,103 | ||||||||
Corporate bonds | 88,333 | 55 | (16 | ) | 88,372 | |||||||||||
U.S. government agency bonds | 22,729 | 7 | (1 | ) | 22,735 | |||||||||||
Asset-backed securities | 14,341 | 10 | — | 14,351 | ||||||||||||
Municipal securities | 11,663 | 24 | — | 11,687 | ||||||||||||
U.S. dollar dominated foreign corporate bonds | 921 | 4 | — | 925 | ||||||||||||
U.S. government treasury bonds | 8,876 | 10 | — | 8,886 | ||||||||||||
Total Marketable Securities, Short-Term | $ | 197,966 | $ | 110 | $ | (17 | ) | $ | 198,059 | |||||||
Long-term | ||||||||||||||||
June 30, 2014 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Corporate bonds | $ | 62,996 | $ | 34 | $ | (36 | ) | $ | 62,994 | |||||||
U.S. government agency bonds | 31,025 | 26 | — | 31,051 | ||||||||||||
Asset-backed securities | 20,330 | 11 | (8 | ) | 20,333 | |||||||||||
U.S. government treasury bonds | 16,269 | 16 | — | 16,285 | ||||||||||||
Municipal securities | 6,470 | 15 | — | 6,485 | ||||||||||||
Total Marketable Securities, Long-Term | $ | 137,090 | $ | 102 | $ | (44 | ) | $ | 137,148 | |||||||
Short-term | ||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Commercial paper | $ | 54,318 | $ | 10 | $ | — | $ | 54,328 | ||||||||
Corporate bonds | 29,079 | 10 | (4 | ) | 29,085 | |||||||||||
U.S. government agency bonds | 16,693 | 10 | — | 16,703 | ||||||||||||
U.S. dollar dominated foreign corporate bonds | 13,959 | 12 | — | 13,971 | ||||||||||||
Municipal securities | 7,006 | 11 | (3 | ) | 7,014 | |||||||||||
Asset-backed securities | 5,937 | 2 | — | 5,939 | ||||||||||||
Total Marketable Securities, Short-Term | $ | 126,992 | $ | 55 | $ | (7 | ) | $ | 127,040 | |||||||
Long-term | ||||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
U.S. government agency bonds | $ | 38,138 | $ | 1 | $ | (21 | ) | $ | 38,118 | |||||||
Corporate bonds | 23,308 | 14 | (9 | ) | 23,313 | |||||||||||
U.S. dollar dominated foreign corporate bonds | 19,485 | 27 | (17 | ) | 19,495 | |||||||||||
Municipal securities | 8,326 | 13 | (8 | ) | 8,331 | |||||||||||
U.S. government treasury bonds | 6,916 | 3 | — | 6,919 | ||||||||||||
Asset-backed securities | 5,800 | 4 | (2 | ) | 5,802 | |||||||||||
Total Marketable Securities, Long-Term | $ | 101,973 | $ | 62 | $ | (57 | ) | $ | 101,978 | |||||||
For the three and six months ended June 30, 2014 and 2013, realized gains were immaterial. Unrealized gains and losses for our available for sale securities as of June 30, 2014 and December 31, 2013 were also immaterial. Cash and cash equivalents are not included in the table above as the gross unrealized gains and losses are not material. We have no material short-term or long-term investments that have been in a continuous unrealized loss position for greater than twelve months as of June 30, 2014 and December 31, 2013. Amounts reclassified to earnings from accumulated other comprehensive income related to unrealized gain or losses were immaterial for the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||
Our fixed-income securities investment portfolio consists of corporate bonds, U.S. dollar dominated foreign corporate bonds, commercial paper, municipal securities, U.S. government agency bonds, U.S. government treasury bonds, and asset-backed securities that have a maximum maturity of 27 months. The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to changes in credit spreads and interest rates. We expect to realize the full value of all these investments upon maturity or sale. The weighted average remaining duration of these securities was approximately 10 months as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
As the carrying value approximates the fair value for our short-term and long-term marketable securities shown in the tables above, the following table summarizes the fair value of our short-term and long-term marketable securities classified by maturity as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Due in one year or less | $ | 198,059 | $ | 127,040 | ||||||||||||
Due in one year to 27 months | 137,148 | 101,978 | ||||||||||||||
Total available for sale short-term and long-term marketable securities | $ | 335,207 | $ | 229,018 | ||||||||||||
Fair Value Measurements | ||||||||||||||||
We measure the fair value of our cash equivalents and marketable securities as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. | ||||||||||||||||
Our Level 1 assets consist of money market funds and U.S. government treasury bonds. We did not hold any Level 1 liabilities as of June 30, 2014 or December 31, 2013. | ||||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||||||
Our Level 2 assets consist of commercial paper, corporate bonds, U.S. government agency bonds, asset-backed securities, municipal securities, U.S. dollar dominated foreign corporate bonds, U.S. government treasury bonds and our Israeli funds that are mainly invested in insurance policies. We obtain fair values for Level 2 investments from our asset manager for each of our portfolios. Our custody bank and asset managers independently use professional pricing services to gather pricing data which may include quoted market prices for identical or comparable financial instruments, or inputs other than quoted prices that are observable either directly or indirectly, and we are ultimately responsible for these underlying estimates. | ||||||||||||||||
We did not hold any Level 2 liabilities as of June 30, 2014 or December 31, 2013. | ||||||||||||||||
Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. | ||||||||||||||||
We did not hold any Level 3 assets or liabilities as of June 30, 2014 or December 31, 2013. | ||||||||||||||||
Non-Recurring Fair Value Measurements | ||||||||||||||||
During the six months ended June 30, 2013, we recorded an impairment charge to our long-lived assets and goodwill of $26.3 million and $40.7 million, respectively, related to our Scanner and Services ("Scanner") reporting unit, formerly referred to as Scanner and CAD/CAM Services ("SCCS"), as an event occurred and circumstances changed that led us to perform an impairment analysis prior to our annual test which required us to determine the fair value of the Scanner reporting unit (Refer to Note 5). These fair value measurements were calculated using unobservable inputs, using the income approach which is classified as Level 3 within the fair value hierarchy. Inputs for the income approach includes the amount and timing of future cash flows based on our most recent operational budgets, strategic plans, terminal growth rates assumptions and other estimates. | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
The following table summarizes our financial assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | |||||||||||||
30-Jun-14 | Active Markets for | Observable Inputs | ||||||||||||||
Identical Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 59,929 | $ | 59,929 | $ | — | ||||||||||
Commercial paper | 32,244 | — | 32,244 | |||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | 51,103 | — | 51,103 | |||||||||||||
Corporate bonds | 88,372 | — | 88,372 | |||||||||||||
U.S. government agency bonds | 22,735 | — | 22,735 | |||||||||||||
Asset-backed securities | 14,351 | — | 14,351 | |||||||||||||
Municipal securities | 11,687 | — | 11,687 | |||||||||||||
U.S. dollar dominated foreign corporate bonds | 925 | — | 925 | |||||||||||||
U.S. government treasury bonds | 8,886 | 8,886 | — | |||||||||||||
Long-term investments: | ||||||||||||||||
Corporate bonds | 62,994 | — | 62,994 | |||||||||||||
U.S. government agency bonds | 31,051 | — | 31,051 | |||||||||||||
Asset-backed securities | 20,333 | — | 20,333 | |||||||||||||
U.S. government treasury bonds | 16,285 | 16,285 | — | |||||||||||||
Municipal securities | 6,485 | — | 6,485 | |||||||||||||
Other assets: | ||||||||||||||||
Israeli funds | 2,434 | — | 2,434 | |||||||||||||
$ | 429,814 | $ | 85,100 | $ | 344,714 | |||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | |||||||||||||
December 31, 2013 | Active Markets for | Observable Inputs | ||||||||||||||
Identical Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 143,540 | $ | 143,540 | $ | — | ||||||||||
Commercial paper | 15,398 | — | 15,398 | |||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | 54,328 | — | 54,328 | |||||||||||||
Corporate bonds | 29,085 | — | 29,085 | |||||||||||||
U.S. dollar denominated foreign corporate bonds | 13,971 | — | 13,971 | |||||||||||||
U.S. government agency bonds | 16,703 | — | 16,704 | |||||||||||||
Municipal securities | 7,014 | — | 7,014 | |||||||||||||
Asset-backed securities | 5,939 | — | 5,938 | |||||||||||||
Long-term investments: | ||||||||||||||||
U.S. government agency bonds | 38,118 | — | 38,118 | |||||||||||||
Corporate bonds | 23,313 | — | 23,313 | |||||||||||||
U.S. dollar denominated foreign corporate bonds | 19,495 | — | 19,495 | |||||||||||||
Municipal securities | 8,331 | — | 8,331 | |||||||||||||
U.S. government treasury bonds | 6,919 | 6,919 | — | |||||||||||||
Asset-backed securities | 5,802 | — | 5,802 | |||||||||||||
Other assets: | ||||||||||||||||
Israeli funds | 2,193 | — | 2,193 | |||||||||||||
$ | 390,149 | $ | 150,459 | $ | 239,690 | |||||||||||
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Balance Sheet Components | ' | |||||||
Balance Sheet Components | ||||||||
Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 3,493 | $ | 5,172 | ||||
Work in process | 3,430 | 4,241 | ||||||
Finished goods | 6,192 | 4,555 | ||||||
Total Inventories | $ | 13,115 | $ | 13,968 | ||||
Work in process includes costs to produce our clear aligner and intra-oral products. Finished goods primarily represent our intra-oral scanners and ancillary products that support our clear aligner products. | ||||||||
Accrued liabilities | ||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued payroll and benefits | $ | 43,332 | $ | 43,029 | ||||
Accrued sales rebates | 10,137 | 10,100 | ||||||
Accrued sales tax and value added tax | 6,447 | 6,215 | ||||||
Accrued sales and marketing expenses | 4,488 | 3,893 | ||||||
Accrued accounts payable | 2,504 | 4,053 | ||||||
Accrued warranty | 3,252 | 3,104 | ||||||
Accrued professional fees | 1,872 | 1,892 | ||||||
Accrued income taxes | 2,248 | 1,205 | ||||||
Other accrued liabilities | 6,769 | 6,854 | ||||||
Total Accrued Liabilities | $ | 81,049 | $ | 80,345 | ||||
Warranty | ||||||||
We regularly review the accrued warranty balances and update these balances based on historical warranty trends. Actual warranty costs incurred have not materially differed from those accrued; however, future actual warranty costs could differ from the estimated amounts. | ||||||||
Clear Aligner | ||||||||
We warrant our Invisalign products against material defects until the Invisalign case is complete. We accrue for warranty costs in cost of net revenues upon shipment of products. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on replacement costs. | ||||||||
Scanners | ||||||||
We warrant our scanners for a period of one year from the date of training and installation. We accrue for these warranty costs which includes materials and labor based on estimated historical repair costs. Extended service packages may be purchased for additional fees. | ||||||||
Warranty accrual as of June 30, 2014 and 2013 consists of the following activity (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 3,104 | $ | 4,050 | ||||
Charged to cost of net revenues | 1,195 | 2,784 | ||||||
Actual warranty expenditures | (1,047 | ) | (2,381 | ) | ||||
Balance at end of period | $ | 3,252 | $ | 4,453 | ||||
Business_Combinations_Notes
Business Combinations (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
Business Combination Disclosure | ' |
Business Combinations | |
On April 30, 2013, we completed the acquisition of ICA Holdings Pty Limited ("ICA") upon the expiration of the distribution agreement between certain subsidiaries of ICA and Align Technology B.V., for a total cash consideration of approximately $8.6 million, of which $7.4 million was attributed to assets acquired, $2.4 million in liabilities assumed and $3.6 million to goodwill. Goodwill as a result of this acquisition represents the excess of the purchase price over the fair value of the underlying net assets acquired and represents the knowledge and experience of the workforce in place. None of this goodwill will be deductible for tax purposes. Under the applicable accounting guidance, goodwill will not be amortized but will be tested for impairment on an annual basis or more frequently if certain indicators are present. | |
Pro forma results of operations for this acquisition have not been presented as it is not material to our results of operations, either individually or in aggregate, for the three or six months ended June 30, 2013. |
Goodwill_and_Longlived_Assets
Goodwill and Long-lived Assets | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Goodwill and Long-lived Assets | ' | |||||||||||||||||
Goodwill and Long-lived Assets | ||||||||||||||||||
Goodwill | ||||||||||||||||||
The change in the carrying value of goodwill for the six months ended June 30, 2014 by our reportable segments, which are also our reporting units, is as follows (in thousands): | ||||||||||||||||||
Clear Aligner | ||||||||||||||||||
Balance as of December 31, 2013 | $ | 61,623 | ||||||||||||||||
Adjustments 1 | 184 | |||||||||||||||||
Balance as of June 30, 2014 | $ | 61,807 | ||||||||||||||||
1 The adjustments to goodwill during the six months ended June 30, 2014 were due to foreign currency translation. | ||||||||||||||||||
The goodwill balance is entirely attributable to our Clear Aligner reporting unit. During the fourth quarter of fiscal 2013, we performed the annual goodwill impairment testing and found no impairment events as the fair value of our Clear Aligner reporting unit was significantly in excess of the carrying value. | ||||||||||||||||||
Impairment of Goodwill in 2013 | ||||||||||||||||||
We evaluate our goodwill for impairment at least annually on November 30th or more frequently if indicators are present, an event occurs or circumstances change that suggest an impairment may exist and that it would more likely than not reduce the fair value of the reporting unit below its carrying amount. During March 2013, changes in the competitive environment for intra-oral scanners, including announcements from our competitors of new low-priced scanners targeted at orthodontists and general practitioner dentists in North America, that caused us to lower our expectations for growth and profitability for our Scanner reporting unit. As a result, we determined that goodwill related only to our Scanner reporting unit should be tested for impairment as of March 2013 due to these facts and circumstances which would more likely than not reduce the fair value of our Scanner reporting unit below its carrying amount. There was no triggering event related to our Clear Aligner goodwill. | ||||||||||||||||||
We performed a step one analysis for our Scanner reporting unit which consists of a comparison of the fair value of the Scanner reporting unit against its carrying amount, including the goodwill allocated to it. In deriving the fair value of the Scanner reporting unit, we utilized the income approach which is classified as Level 3 within the fair value hierarchy. This approach provides an estimated fair value based on discounted expected future cash flows, which are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on a weighted average cost of capital adjusted for the relevant risk associated with the characteristics of the business and the projected cash flows. | ||||||||||||||||||
As a result of our step one analysis, we concluded that the fair value of the Scanner reporting unit was less than its carrying value; therefore, we proceeded to step two of the goodwill impairment analysis. Step two of the goodwill impairment analysis measures the impairment charge by allocating the reporting unit's fair value to all of the assets and liabilities of the reporting unit in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. This allocation process was performed only for the purposes of measuring the goodwill impairment and not to adjust the carrying values of the recognized tangible assets and liabilities. Any excess of the carrying value of the reporting unit's goodwill over the implied fair value of the reporting unit's goodwill is recorded as an impairment loss. We use a discounted cash flow ("DCF") approach, utilizing the harvest model, to estimate the fair value of a reporting unit which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach a market place participant would use. Based on our analysis, there was no implied goodwill for the Scanner reporting unit; therefore, we recorded a goodwill impairment charge of $40.7 million in the three months ended March 31, 2013, which represents the remaining goodwill balance in the Scanner reporting unit. None of the goodwill impairment charge was deductible for tax purposes. | ||||||||||||||||||
Long-lived Assets | ||||||||||||||||||
Impairment of Long-lived Assets in 2013 | ||||||||||||||||||
We amortize our intangible assets over their estimated useful lives. We evaluate long-lived assets, which includes property, plant and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted cash flows resulting from the use of the asset and its eventual disposition. Our estimates of future cash flows attributable to our long-lived assets require significant judgment based on our historical and anticipated results and are subject to many factors. Factors we consider important which could trigger an impairment review include significant negative industry or economic trends, significant loss of customers and changes in the competitive environment of our intra-oral scanning business. | ||||||||||||||||||
During March 2013, changes in the competitive environment for intra-oral scanners, including announcements from our competitors of new low-priced scanners targeted at orthodontists and general practitioner dentists in North America, that caused us to lower our expectations for growth and profitability for our Scanner reporting unit. As a result, we determined that the carrying value of the Scanner long-lived assets was not recoverable as compared to the value of the undiscounted cash flows of our revised projections for the asset group. In order to determine the impairment amount of our long-lived assets, we fair valued each key component of our long-lived assets within the asset group, which involved the use of significant estimates and assumptions including replacement costs, revenue growth rates, operating margins, and plant and equipment cost trends. We use a DCF approach, utilizing the harvest model, to estimate the fair value of a reporting unit which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach a market place participant would use. The estimation of fair value utilizing a DCF approach includes numerous uncertainties which require our significant judgment when making assumptions of expected growth rates and the selection of discount rates, as well as assumptions regarding general economic and business conditions, and the structure that would yield the highest economic value, among other factors. Key assumptions used in measuring the fair values of the Scanner reporting unit included the discount rate (based on the weighted-average cost of capital) and revenue growth. The fair value of Scanner’s trademark was determined using a risk-adjusted DCF approach under the relief-from-royalty method. The royalty rate used was based on a consideration of market rates. The fair value of Scanner’s finite-lived customer relationships was determined using a DCF approach under the multi-period excess earnings method. We determined our long-lived asset group within the Scanner reporting unit to be primarily finite-lived intangible assets, plant and equipment. Upon completion of this analysis, we recorded a total impairment charge of $26.3 million of which $19.3 million represented the impairment related to our Scanner intangible assets and $7.0 million related to plant and equipment. There was no triggering event related to the Clear Aligner asset group. | ||||||||||||||||||
Intangible assets arising either as a direct result from the Cadent Holdings, Inc. acquisition ("Cadent") or individually acquired are being amortized as follows (in thousands): | ||||||||||||||||||
Weighted Average Amortization Period (in years) | Gross Carrying Amount as of | Accumulated | Accumulated | Net Carrying | ||||||||||||||
June 30, 2014 | Amortization | Impairment Loss | Value as of | |||||||||||||||
30-Jun-14 | ||||||||||||||||||
Trademarks | 15 | $ | 7,100 | $ | (1,285 | ) | $ | (4,179 | ) | $ | 1,636 | |||||||
Existing technology | 13 | 12,600 | (2,732 | ) | (4,328 | ) | 5,540 | |||||||||||
Customer relationships | 11 | 33,500 | (8,164 | ) | (10,751 | ) | 14,585 | |||||||||||
Other | 8 | 285 | (58 | ) | — | 227 | ||||||||||||
Total Intangible Assets | $ | 53,485 | $ | (12,239 | ) | $ | (19,258 | ) | $ | 21,988 | ||||||||
Weighted Average Amortization Period (in years) | Gross Carrying | Accumulated | Accumulated Impairment Loss | Net Carrying | ||||||||||||||
Amount as of | Amortization | Value as of | ||||||||||||||||
31-Dec-13 | December 31, 2013 | |||||||||||||||||
Trademarks | 15 | $ | 7,100 | $ | (1,100 | ) | $ | (4,179 | ) | $ | 1,821 | |||||||
Existing technology | 13 | 12,600 | (2,236 | ) | (4,328 | ) | 6,036 | |||||||||||
Customer relationships | 11 | 33,500 | (7,112 | ) | (10,751 | ) | 15,637 | |||||||||||
Other | 8 | 285 | (40 | ) | — | 245 | ||||||||||||
Total Intangible Assets | $ | 53,485 | $ | (10,488 | ) | $ | (19,258 | ) | $ | 23,739 | ||||||||
The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2014 is as follows (in thousands): | ||||||||||||||||||
Fiscal Year Ending December 31, | ||||||||||||||||||
Remainder of 2014 | $ | 1,300 | ||||||||||||||||
2015 | 2,600 | |||||||||||||||||
2016 | 2,600 | |||||||||||||||||
2017 | 2,600 | |||||||||||||||||
2018 | 2,600 | |||||||||||||||||
Thereafter | 10,288 | |||||||||||||||||
Total | $ | 21,988 | ||||||||||||||||
Credit_Facilities
Credit Facilities | 6 Months Ended |
Jun. 30, 2014 | |
Notes To Financial Statements [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
On March 22, 2013, we entered into a credit facility with Wells Fargo Bank. The credit facility provides for a $50.0 million revolving line of credit, with a $10.0 million letter of credit sublimit, and has a maturity date on March 22, 2016. The credit facility also requires us to maintain a minimum unrestricted cash balance of $50.0 million and comply with specific financial conditions and performance requirements. The loan bears interest, at our option, at a fluctuating rate per annum equal to the daily one-month adjusted LIBOR rate plus a spread of 1.75% or an adjusted LIBOR rate (based on one, three, six or twelve-month interest periods) plus a spread of 1.75%. As of June 30, 2014, we had no outstanding borrowings under this credit facility and were in compliance with the conditions and performance requirements. |
Legal_Proceedings_Notes
Legal Proceedings (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
Legal Proceedings | |
Securities Class Action Lawsuit | |
On November 28, 2012, plaintiff City of Dearborn Heights Act 345 Police & Fire Retirement System filed a lawsuit against Align, Thomas M. Prescott (“Mr. Prescott”), Align's President and Chief Executive Officer, and Kenneth B. Arola (“Mr. Arola”), Align's former Vice President, Finance and Chief Financial Officer, in the United States District Court for the Northern District of California on behalf of a purported class of purchasers of our common stock (the "Securities Action"). On July 11, 2013, an amended complaint was filed, which named the same defendants, on behalf of a purported class of purchasers of our common stock between January 31, 2012 and October 17, 2012. The amended complaint alleged that Align, Mr. Prescott and Mr. Arola violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and that Mr. Prescott and Mr. Arola violated Section 20(a) of the Securities Exchange Act of 1934. Specifically, the amended complaint alleged that during the purported class period defendants failed to take an appropriate goodwill impairment charge related to the April 29, 2011 acquisition of Cadent Holdings, Inc. in the fourth quarter of 2011, the first quarter of 2012 or the second quarter of 2012, which rendered our financial statements and projections of future earnings materially false and misleading and in violation of U.S. GAAP. The amended complaint sought monetary damages in an unspecified amount, costs and attorney's fees. On December 9, 2013, the court granted defendant's motion to dismiss with leave for plaintiff to file a second amended complaint. Plaintiff filed a second amended complaint on January 8, 2014 on behalf of the same purported class. The second amended complaint states the same claims as the first amended complaint. We filed a motion to dismiss the second amended complaint on February 7, 2014. On June 12, 2014, the Court held a hearing on our motion and took the matter under submission. Align intends to vigorously defend itself against these allegations. Align is currently unable to predict the outcome of this amended complaint and therefore cannot determine the likelihood of loss nor estimate a range of possible loss, if any. | |
Shareholder Derivative Lawsuit | |
On February 1, 2013, plaintiff Gary Udis filed a shareholder derivative lawsuit against several of Align's current and former officers and directors in the Superior Court of California, County of Santa Clara. The complaint alleges that our reported income and earnings were materially overstated because of a failure to timely write down goodwill related to the April 29, 2011 acquisition of Cadent Holdings, Inc., and that defendants made allegedly false statements concerning our forecasts. The complaint asserts various state law causes of action, including claims of breach of fiduciary duty, unjust enrichment, and insider trading, among others. The complaint seeks unspecified damages on behalf of Align, which is named solely as nominal defendant against whom no recovery is sought. The complaint also seeks an order directing Align to reform and improve its corporate governance and internal procedures, and seeks restitution in an unspecified amount, costs, and attorney's fees. On July 8, 2013, an Order was entered staying this derivative lawsuit until an initial ruling on our first motion to dismiss the Securities Action. On January 15, 2014, an Order was entered staying this derivative lawsuit until an initial ruling on our second motion to dismiss the Securities Action discussed above. Align intends to vigorously defend itself against these allegations. Align is currently unable to predict the outcome of this complaint and therefore cannot determine the likelihood of loss nor estimate a range of possible losses. | |
In addition, in the course of Align's operations, Align is involved in a variety of claims, suits, investigations, and proceedings, including actions with respect to intellectual property claims, patent infringement claims, government investigations, labor and employment claims, breach of contract claims, tax, and other matters. Regardless of the outcome, these proceedings can have an adverse impact on us because of defense costs, diversion of management resources, and other factors. Although the results of complex legal proceedings are difficult to predict and Align's view of these matters may change in the future as litigation and events related thereto unfold; Align currently does not believe that these matters, individually or in the aggregate, will materially affect Align's financial position, results of operations or cash flows. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes To Financial Statements [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | |||||
Operating Leases | |||||
As of June 30, 2014, minimum future lease payments for non-cancelable operating leases are as follows (in thousands): | |||||
Fiscal Year Ending December 31, | Operating leases | ||||
Remainder of 2014 | $ | 4,598 | |||
2015 | 8,494 | ||||
2016 | 7,770 | ||||
2017 | 4,471 | ||||
2018 | 1,525 | ||||
Thereafter | 494 | ||||
Total minimum future lease payments | $ | 27,352 | |||
Off-balance Sheet Arrangements | |||||
As of June 30, 2014, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources. | |||||
Indemnification Provisions | |||||
In the normal course of business to facilitate transactions in our services and products, we indemnify certain parties: customers, vendors, lessors and other parties with respect to certain matters, including, but not limited to, services to be provided by us and intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and our executive officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. | |||||
It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of June 30, 2014, we did not have any material indemnification claims that were probable or reasonably possible. |
Stockbased_Compensation
Stock-based Compensation | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Stock-based Compensation | ' | |||||||||||||||
Stock-based Compensation | ||||||||||||||||
Summary of stock-based compensation expense | ||||||||||||||||
As of June 30, 2014, we had a total reserve of 23,283,379 shares for issuance, plus up to an aggregate of 5,000,000 shares that would have been returned to our 2001 Stock Incentive Plan as a result of termination of options on or after March 28, 2005. | ||||||||||||||||
Stock-based compensation is based on the estimated fair value of awards, net of estimated forfeitures, and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and may be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation related to all of our stock-based awards and employee stock purchases for the three and six months ended June 30, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of net revenues | $ | 937 | $ | 637 | $ | 1,781 | $ | 1,217 | ||||||||
Sales and marketing | 3,111 | 2,012 | 5,778 | 3,023 | ||||||||||||
General and administrative | 4,539 | 3,556 | 8,589 | 7,483 | ||||||||||||
Research and development | 1,719 | 1,060 | 3,290 | 1,952 | ||||||||||||
Total stock-based compensation | $ | 10,306 | $ | 7,265 | $ | 19,438 | $ | 13,675 | ||||||||
Options | ||||||||||||||||
Activity for the six months ended June 30, 2014 under the stock option plans is set forth below (in thousands, except years and per share amounts): | ||||||||||||||||
Stock Options | Weighted | Weighted Average | Aggregate | |||||||||||||
Number of Shares | Average | Remaining | Intrinsic | |||||||||||||
Underlying | Exercise | Contractual Term | Value | |||||||||||||
Stock Options | Price per Share | |||||||||||||||
(in years ) | ||||||||||||||||
Outstanding as of December 31, 2013 | 1,321 | $ | 16.08 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (514 | ) | 17.08 | |||||||||||||
Cancelled or expired | (2 | ) | 24.47 | |||||||||||||
Outstanding as of June 30, 2014 | 805 | $ | 15.41 | 3.34 | $ | 32,704 | ||||||||||
Vested and expected to vest at June 30, 2014 | 804 | $ | 15.41 | 3.34 | $ | 32,662 | ||||||||||
Exercisable at June 30, 2014 | 760 | $ | 15.04 | 3.31 | $ | 31,167 | ||||||||||
There were no stock options granted during the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||
As of June 30, 2014, the total unamortized compensation cost related to stock options, net of estimated forfeitures, is $0.5 million, which we expect to recognize over a weighted average period of 0.8 years. | ||||||||||||||||
Restricted Stock Units (“RSU”) | ||||||||||||||||
A summary of the RSU activity for the six months ended June 30, 2014 is as follows (in thousands, except years): | ||||||||||||||||
Number of Shares | Weighted Remaining | Aggregate | ||||||||||||||
Underlying RSU | Contractual Period | Intrinsic Value | ||||||||||||||
(in years) | ||||||||||||||||
Nonvested as of December 31, 2013 | 2,044 | |||||||||||||||
Granted | 943 | |||||||||||||||
Vested and released | (580 | ) | ||||||||||||||
Forfeited | (111 | ) | ||||||||||||||
Nonvested as of June 30, 2014 | 2,296 | 1.71 | $ | 128,685 | ||||||||||||
As of June 30, 2014, the total unamortized compensation cost related to RSU, net of estimated forfeitures, was $78.1 million, which we expect to recognize over a weighted average period of 2.7 years. | ||||||||||||||||
We have granted market-performance based restricted stock units (“MSU”) to our executive officers. Each MSU represents the right to one share of Align’s common stock and will be issued through our amended 2005 Incentive Plan. The actual number of MSU which will be eligible to vest will be based on the performance of Align’s stock price relative to the performance of the NASDAQ Composite Index over the vesting period, generally two to three years, up to 150% of the MSU initially granted. | ||||||||||||||||
The following table summarizes the MSU activity for the six months ended June 30, 2014 (in thousands, except years): | ||||||||||||||||
Number of Shares | Weighted Average | Aggregate | ||||||||||||||
Underlying MSU | Remaining | Intrinsic Value | ||||||||||||||
Contractual Period | ||||||||||||||||
(in years ) | ||||||||||||||||
Nonvested as of December 31, 2013 | 307 | |||||||||||||||
Granted | 243 | |||||||||||||||
Vested and released | (52 | ) | ||||||||||||||
Forfeited | — | |||||||||||||||
Nonvested as of June 30, 2014 | 498 | 1.88 | $ | 27,880 | ||||||||||||
As of June 30, 2014, the total unamortized compensation costs related to the MSU, net of estimated forfeitures, was $13.2 million, which we expect to recognize over a weighted average period of 1.9 years. | ||||||||||||||||
Employee Stock Purchase Plan ("ESPP") | ||||||||||||||||
In May 2010, our stockholders approved the 2010 Employee Stock Purchase Plan ("2010 Purchase Plan") which will continue until terminated by either the Board of Directors or its administrator. The maximum number of shares available for purchase under the 2010 Purchase Plan is 2,400,000 shares. As of June 30, 2014, there remains 1,475,372 shares available for purchase under the 2010 Purchase Plan. | ||||||||||||||||
The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
ESPP: | ||||||||||||||||
Expected term (in years) | 1.2 | 1.2 | ||||||||||||||
Expected volatility | 42.3 | % | 46.7 | % | ||||||||||||
Risk-free interest rate | 0.17 | % | 0.18 | % | ||||||||||||
Expected dividends | — | — | ||||||||||||||
Weighted average fair value at grant date | $ | 17.97 | $ | 11.17 | ||||||||||||
There were no new ESPP cycles that started during the three months ended June 30, 2014 or June 30, 2013. | ||||||||||||||||
As of June 30, 2014, the total unamortized compensation cost related to employee purchases was $1.3 million, which we expect to recognize over a weighted average period of 0.4 year. |
Common_Stock_Repurchase_Progra
Common Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2014 | |
Share Repurchase Program Disclosure [Text Block] | ' |
Common Stock Repurchase | |
On April 23, 2014, we announced that our Board of Directors had authorized a stock repurchase program pursuant to which we may purchase up to $300.0 million of our common stock over the next three years, with $100.0 million of that amount authorized to be purchased over the first twelve months. Any purchases under this stock repurchase program may be made, from time-to-time, pursuant to open market purchases (including pursuant to Rule 10b5-1 plans), privately-negotiated transactions, accelerated stock repurchases, block trades or derivative contracts or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. | |
As part of our $300.0 million stock repurchase program, we entered into an accelerated share repurchase agreement ("ASR") with Goldman, Sachs & Co. on April 28, 2014 to repurchase $70.0 million of our common stock. We paid $70.0 million on April 29, 2014 and received an initial delivery of approximately 1.0 million shares based on the then current market price of $49.17, which were retired. The remaining $21.0 million was recorded as an equity forward contract and was included in Additional paid-in capital in stockholder's equity in the Condensed balance sheet as of June 30, 2014. The final number of shares to be repurchased is based on our volume-weighted average stock price during the term of the transaction, less an agreed upon discount. | |
The ASR was completed on July 29, 2014 with a final delivery of approximately 0.4 million shares. We will have received a total of approximately 1.4 million million shares under the ASR for an average purchase share price of $51.46. |
Accounting_for_Income_Taxes
Accounting for Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Accounting for Income Taxes | ' |
Accounting for Income Taxes | |
Our provision for income taxes was $13.0 million and $8.2 million for the three months ended June 30, 2014 and 2013, respectively. This represents effective tax rates of 26.8% and 22.0%, respectively. The increase in our provision for income taxes was primarily due to higher pre-tax income and a negative impact from a $2.1 million adjustment related to prior periods. These were offset partially by a jurisdictional shift in forecasted earnings from the U.S. to lower-tax non-U.S. jurisdictions. | |
Our provision for income taxes was $23.0 million and $11.2 million for the six months ended June 30, 2014 and 2013, respectively. This represents effective tax rates of 25.3% and (745.9)%, respectively. The increase in our provision for income taxes was primarily due to higher pre-tax income and a negative impact from a $1.8 million adjustment related to prior years. These were offset partially by a jurisdictional shift in forecasted earnings from the U.S. to lower-tax non-U.S. jurisdictions. The effective tax rate for the six months ended June 30, 2013 reflects a non-deductible goodwill impairment charge of $40.7 million recorded during the three months ended March 31, 2013. | |
We exercise significant judgment in regards to estimates of future market growth, forecasted earnings and projected taxable income in determining the provision for income taxes, and for purposes of assessing our ability to utilize any future benefit from deferred tax assets. | |
As of June 30, 2014, we maintained a valuation allowance of $35.4 million against deferred tax assets primarily related to foreign net operating loss carryforwards and capital loss carryforwards. These net operating and capital loss carryforwards would result in an income tax benefit if we were to conclude it is more likely than not that the related deferred tax assets will be realized. | |
During the three months ended June 30, 2014, the change in our gross unrecognized tax benefits was not material. The total amount of gross unrecognized tax benefits was $29.5 million as of June 30, 2014, all of which would impact our effective tax rate if recognized. We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income taxes. The change in accrued interest and penalties during the three months ended June 30, 2014 was not material. We do not expect any significant changes to the amount of unrecognized tax benefit within the next twelve months. | |
During the first quarter of 2014, we adopted ASU 2013-11, "Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)." The adoption of this standard had the effect of reducing our accruals for uncertain tax positions by $8.4 million, with an offsetting reduction in our long term deferred tax assets, but had no effect on net income. | |
We are subject to taxation in the U.S. and various states and foreign jurisdictions. All of our tax years will be open to examination by the U.S. federal and most state tax authorities due to our net operating loss and overall credit carryforward position. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2006. | |
In June 2009, the Costa Rica Ministry of Foreign Trade, an agency of the Government of Costa Rica, granted a twelve year extension of certain income tax incentives, which were previously granted in 2002. The incentive tax rates will expire in various years beginning in 2017. Under these incentives, all of the income in Costa Rica during these twelve year incentive periods is subject to reduced rate of Costa Rica income tax. In order to receive the benefit of these incentives, we must hire specified numbers of employees and maintain certain minimum levels of fixed asset investment in Costa Rica. If we do not fulfill these conditions for any reason, our incentive could lapse, and our income in Costa Rica would be subject to taxation at higher rates, which could have a negative impact on our operating results. The Costa Rica corporate income tax rate that would apply, absent the incentives, is 30% for 2014. As a result of these incentives, our income taxes were reduced by $15.1 million and $12.0 million for the six months ended June 30, 2014 and 2013, respectively, representing a benefit to diluted net income per share of $0.18 and $0.15 in 2014 and 2013, respectively. For the three months ended June 30, 2014 and 2013, the income taxes was reduced by$7.5 million and $5.9 million, respectively, representing a benefit to diluted net income per share of $0.09 and $0.07, respectively. |
Net_Profit_Per_Share
Net Profit Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Net Profit Per Share | ' | |||||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, RSU, MSU and ESPP. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stock (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 35,600 | $ | 29,320 | $ | 68,044 | $ | (12,663 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding, basic | 81,027 | 80,576 | 81,073 | 80,909 | ||||||||||||
Dilutive effect of potential common stock | 1,314 | 1,573 | 1,578 | — | ||||||||||||
Total shares, diluted | 82,341 | 82,149 | 82,651 | 80,909 | ||||||||||||
Net income (loss) per share, basic | $ | 0.44 | $ | 0.36 | $ | 0.84 | $ | (0.16 | ) | |||||||
Net income (loss) per share, diluted | $ | 0.43 | $ | 0.36 | $ | 0.82 | $ | (0.16 | ) | |||||||
For the three and six months ended June 30, 2014, the anti-dilutive affect from stock options, RSU, MSU and ESPP was not material. | ||||||||||||||||
For the three months ended June 30, 2013, the anti-dilutive affect from stock options, RSU, MSU and ESPP was not material. For the six months ended June 30, 2013, stock options, RSU, MSU and ESPP totaling 1.8 million of potentially dilutive shares have been excluded from the total diluted shares because there was a net loss during the period. |
Segments_and_Geographical_Info
Segments and Geographical Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segments and Geographical Information | ' | |||||||||||||||
Segments and Geographical Information | ||||||||||||||||
Segment Information | ||||||||||||||||
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We report segment information based on the management approach. The management approach designates the internal reporting used by CODM for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues and gross profit. | ||||||||||||||||
We have grouped our operations into two reportable segments which are also our reporting units: Clear Aligner segment and Scanner segment. | ||||||||||||||||
• | Our Clear Aligner segment consists of our Invisalign system which includes Invisalign Full, Express/Lite, Teen, Assist, Vivera retainers, along with our training and ancillary products for treating malocclusion. | |||||||||||||||
• | Our Scanner segment consists of intra-oral scanning systems and additional services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. This segment includes our iTero scanner and OrthoCAD services. | |||||||||||||||
These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocation of resources. The following information relates to these segments (in thousands): | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Net Revenues | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Clear Aligner | ||||||||||||||||
Invisalign Full Products | $ | 147,158 | $ | 123,379 | $ | 285,291 | $ | 236,159 | ||||||||
Invisalign Express/Lite Products | 20,478 | 19,158 | 40,103 | 35,241 | ||||||||||||
Invisalign non-case revenues | 12,099 | 10,766 | 22,580 | 23,475 | ||||||||||||
Scanner | ||||||||||||||||
Scanners and Services | 12,796 | 10,525 | 25,203 | 22,533 | ||||||||||||
Total net revenues | $ | 192,531 | $ | 163,828 | $ | 373,177 | $ | 317,408 | ||||||||
Gross profit | ||||||||||||||||
Clear Aligner | $ | 141,703 | $ | 120,124 | $ | 274,786 | $ | 229,451 | ||||||||
Scanners and Services | 3,773 | 3,567 | 7,941 | 7,089 | ||||||||||||
Total gross profit | $ | 145,476 | $ | 123,691 | $ | 282,727 | $ | 236,540 | ||||||||
Geographical Information | ||||||||||||||||
Net revenues are presented below by geographic area (in thousands): | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: (1) | ||||||||||||||||
U.S. | $ | 133,954 | $ | 121,651 | $ | 262,593 | $ | 241,692 | ||||||||
the Netherlands | 43,680 | 32,363 | 82,523 | 63,458 | ||||||||||||
Other international | 14,897 | 9,814 | 28,061 | 12,258 | ||||||||||||
Total net revenues | $ | 192,531 | $ | 163,828 | $ | 373,177 | $ | 317,408 | ||||||||
(1) Net revenues are attributed to countries based on location of where revenue is recognized. | ||||||||||||||||
Tangible long-lived assets are presented below by geographic area (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets:(2) | ||||||||||||||||
United States | $ | 67,386 | $ | 61,439 | ||||||||||||
Mexico | 6,184 | 6,291 | ||||||||||||||
the Netherlands | 1,297 | 1,630 | ||||||||||||||
Other International | 6,445 | 6,383 | ||||||||||||||
Total long-lived assets | $ | 81,312 | $ | 75,743 | ||||||||||||
(2) Long-lived assets are attributed to countries based on entity that owns the asset. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of presentation | ' |
Basis of presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") and contain all adjustments, including normal recurring adjustments, necessary to present fairly our results of operations for the three and six months ended June 30, 2014 and 2013, our comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013, our financial position as of June 30, 2014 and our cash flows for the six months ended June 30, 2014 and 2013. The Condensed Consolidated Balance Sheet as of December 31, 2013 was derived from the December 31, 2013 audited financial statements. Net revenues by geographic area for prior period amounts in Note 13 have been reclassified to conform with the current period presentation. These reclassifications had no impact on our financial position for the three or six months ended June 30, 2014 and 2013. | |
The results of operations for the three months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other future period, and we make no representations related thereto. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of estimates | ' |
Use of estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America (“U.S.”) requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to the fair values of financial instruments, long-lived assets and goodwill, useful lives of intangible assets and property and equipment, stock-based compensation, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us in the first quarter of fiscal 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. |
Marketable_Securities_and_Fair1
Marketable Securities and Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Short-Term And Long-Term Marketable Securities | ' | |||||||||||||||
s of June 30, 2014 and December 31, 2013, the estimated fair value of our short-term and long-term marketable securities, classified as available for sale, are as follows (in thousands): | ||||||||||||||||
Short-term | ||||||||||||||||
June 30, 2014 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Commercial paper | $ | 51,103 | $ | — | $ | — | $ | 51,103 | ||||||||
Corporate bonds | 88,333 | 55 | (16 | ) | 88,372 | |||||||||||
U.S. government agency bonds | 22,729 | 7 | (1 | ) | 22,735 | |||||||||||
Asset-backed securities | 14,341 | 10 | — | 14,351 | ||||||||||||
Municipal securities | 11,663 | 24 | — | 11,687 | ||||||||||||
U.S. dollar dominated foreign corporate bonds | 921 | 4 | — | 925 | ||||||||||||
U.S. government treasury bonds | 8,876 | 10 | — | 8,886 | ||||||||||||
Total Marketable Securities, Short-Term | $ | 197,966 | $ | 110 | $ | (17 | ) | $ | 198,059 | |||||||
Long-term | ||||||||||||||||
June 30, 2014 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Corporate bonds | $ | 62,996 | $ | 34 | $ | (36 | ) | $ | 62,994 | |||||||
U.S. government agency bonds | 31,025 | 26 | — | 31,051 | ||||||||||||
Asset-backed securities | 20,330 | 11 | (8 | ) | 20,333 | |||||||||||
U.S. government treasury bonds | 16,269 | 16 | — | 16,285 | ||||||||||||
Municipal securities | 6,470 | 15 | — | 6,485 | ||||||||||||
Total Marketable Securities, Long-Term | $ | 137,090 | $ | 102 | $ | (44 | ) | $ | 137,148 | |||||||
Short-term | ||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Commercial paper | $ | 54,318 | $ | 10 | $ | — | $ | 54,328 | ||||||||
Corporate bonds | 29,079 | 10 | (4 | ) | 29,085 | |||||||||||
U.S. government agency bonds | 16,693 | 10 | — | 16,703 | ||||||||||||
U.S. dollar dominated foreign corporate bonds | 13,959 | 12 | — | 13,971 | ||||||||||||
Municipal securities | 7,006 | 11 | (3 | ) | 7,014 | |||||||||||
Asset-backed securities | 5,937 | 2 | — | 5,939 | ||||||||||||
Total Marketable Securities, Short-Term | $ | 126,992 | $ | 55 | $ | (7 | ) | $ | 127,040 | |||||||
Long-term | ||||||||||||||||
31-Dec-13 | Amortized | Gross | Gross | Fair Value | ||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
U.S. government agency bonds | $ | 38,138 | $ | 1 | $ | (21 | ) | $ | 38,118 | |||||||
Corporate bonds | 23,308 | 14 | (9 | ) | 23,313 | |||||||||||
U.S. dollar dominated foreign corporate bonds | 19,485 | 27 | (17 | ) | 19,495 | |||||||||||
Municipal securities | 8,326 | 13 | (8 | ) | 8,331 | |||||||||||
U.S. government treasury bonds | 6,916 | 3 | — | 6,919 | ||||||||||||
Asset-backed securities | 5,800 | 4 | (2 | ) | 5,802 | |||||||||||
Total Marketable Securities, Long-Term | $ | 101,973 | $ | 62 | $ | (57 | ) | $ | 101,978 | |||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | |||||||||||||||
As the carrying value approximates the fair value for our short-term and long-term marketable securities shown in the tables above, the following table summarizes the fair value of our short-term and long-term marketable securities classified by maturity as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Due in one year or less | $ | 198,059 | $ | 127,040 | ||||||||||||
Due in one year to 27 months | 137,148 | 101,978 | ||||||||||||||
Total available for sale short-term and long-term marketable securities | $ | 335,207 | $ | 229,018 | ||||||||||||
Financial Assets Measured At Fair Value On Recurring Basis | ' | |||||||||||||||
The following table summarizes our financial assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | |||||||||||||
30-Jun-14 | Active Markets for | Observable Inputs | ||||||||||||||
Identical Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 59,929 | $ | 59,929 | $ | — | ||||||||||
Commercial paper | 32,244 | — | 32,244 | |||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | 51,103 | — | 51,103 | |||||||||||||
Corporate bonds | 88,372 | — | 88,372 | |||||||||||||
U.S. government agency bonds | 22,735 | — | 22,735 | |||||||||||||
Asset-backed securities | 14,351 | — | 14,351 | |||||||||||||
Municipal securities | 11,687 | — | 11,687 | |||||||||||||
U.S. dollar dominated foreign corporate bonds | 925 | — | 925 | |||||||||||||
U.S. government treasury bonds | 8,886 | 8,886 | — | |||||||||||||
Long-term investments: | ||||||||||||||||
Corporate bonds | 62,994 | — | 62,994 | |||||||||||||
U.S. government agency bonds | 31,051 | — | 31,051 | |||||||||||||
Asset-backed securities | 20,333 | — | 20,333 | |||||||||||||
U.S. government treasury bonds | 16,285 | 16,285 | — | |||||||||||||
Municipal securities | 6,485 | — | 6,485 | |||||||||||||
Other assets: | ||||||||||||||||
Israeli funds | 2,434 | — | 2,434 | |||||||||||||
$ | 429,814 | $ | 85,100 | $ | 344,714 | |||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | |||||||||||||
December 31, 2013 | Active Markets for | Observable Inputs | ||||||||||||||
Identical Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 143,540 | $ | 143,540 | $ | — | ||||||||||
Commercial paper | 15,398 | — | 15,398 | |||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | 54,328 | — | 54,328 | |||||||||||||
Corporate bonds | 29,085 | — | 29,085 | |||||||||||||
U.S. dollar denominated foreign corporate bonds | 13,971 | — | 13,971 | |||||||||||||
U.S. government agency bonds | 16,703 | — | 16,704 | |||||||||||||
Municipal securities | 7,014 | — | 7,014 | |||||||||||||
Asset-backed securities | 5,939 | — | 5,938 | |||||||||||||
Long-term investments: | ||||||||||||||||
U.S. government agency bonds | 38,118 | — | 38,118 | |||||||||||||
Corporate bonds | 23,313 | — | 23,313 | |||||||||||||
U.S. dollar denominated foreign corporate bonds | 19,495 | — | 19,495 | |||||||||||||
Municipal securities | 8,331 | — | 8,331 | |||||||||||||
U.S. government treasury bonds | 6,919 | 6,919 | — | |||||||||||||
Asset-backed securities | 5,802 | — | 5,802 | |||||||||||||
Other assets: | ||||||||||||||||
Israeli funds | 2,193 | — | 2,193 | |||||||||||||
$ | 390,149 | $ | 150,459 | $ | 239,690 | |||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Schedule of Inventories | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 3,493 | $ | 5,172 | ||||
Work in process | 3,430 | 4,241 | ||||||
Finished goods | 6,192 | 4,555 | ||||||
Total Inventories | $ | 13,115 | $ | 13,968 | ||||
Schedule of Accrued Liabilities | ' | |||||||
Accrued liabilities consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued payroll and benefits | $ | 43,332 | $ | 43,029 | ||||
Accrued sales rebates | 10,137 | 10,100 | ||||||
Accrued sales tax and value added tax | 6,447 | 6,215 | ||||||
Accrued sales and marketing expenses | 4,488 | 3,893 | ||||||
Accrued accounts payable | 2,504 | 4,053 | ||||||
Accrued warranty | 3,252 | 3,104 | ||||||
Accrued professional fees | 1,872 | 1,892 | ||||||
Accrued income taxes | 2,248 | 1,205 | ||||||
Other accrued liabilities | 6,769 | 6,854 | ||||||
Total Accrued Liabilities | $ | 81,049 | $ | 80,345 | ||||
Warranty Accrual | ' | |||||||
Warranty accrual as of June 30, 2014 and 2013 consists of the following activity (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 3,104 | $ | 4,050 | ||||
Charged to cost of net revenues | 1,195 | 2,784 | ||||||
Actual warranty expenditures | (1,047 | ) | (2,381 | ) | ||||
Balance at end of period | $ | 3,252 | $ | 4,453 | ||||
Goodwill_and_Longlived_Assets_
Goodwill and Long-lived Assets (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Notes To Financial Statements [Abstract] | ' | |||||||||||||||||
Summary of Goodwill by Reportable Segment | ' | |||||||||||||||||
The change in the carrying value of goodwill for the six months ended June 30, 2014 by our reportable segments, which are also our reporting units, is as follows (in thousands): | ||||||||||||||||||
Clear Aligner | ||||||||||||||||||
Balance as of December 31, 2013 | $ | 61,623 | ||||||||||||||||
Adjustments 1 | 184 | |||||||||||||||||
Balance as of June 30, 2014 | $ | 61,807 | ||||||||||||||||
Schedule Of Amortized Intangible Assets | ' | |||||||||||||||||
Intangible assets arising either as a direct result from the Cadent Holdings, Inc. acquisition ("Cadent") or individually acquired are being amortized as follows (in thousands): | ||||||||||||||||||
Weighted Average Amortization Period (in years) | Gross Carrying Amount as of | Accumulated | Accumulated | Net Carrying | ||||||||||||||
June 30, 2014 | Amortization | Impairment Loss | Value as of | |||||||||||||||
30-Jun-14 | ||||||||||||||||||
Trademarks | 15 | $ | 7,100 | $ | (1,285 | ) | $ | (4,179 | ) | $ | 1,636 | |||||||
Existing technology | 13 | 12,600 | (2,732 | ) | (4,328 | ) | 5,540 | |||||||||||
Customer relationships | 11 | 33,500 | (8,164 | ) | (10,751 | ) | 14,585 | |||||||||||
Other | 8 | 285 | (58 | ) | — | 227 | ||||||||||||
Total Intangible Assets | $ | 53,485 | $ | (12,239 | ) | $ | (19,258 | ) | $ | 21,988 | ||||||||
Weighted Average Amortization Period (in years) | Gross Carrying | Accumulated | Accumulated Impairment Loss | Net Carrying | ||||||||||||||
Amount as of | Amortization | Value as of | ||||||||||||||||
31-Dec-13 | December 31, 2013 | |||||||||||||||||
Trademarks | 15 | $ | 7,100 | $ | (1,100 | ) | $ | (4,179 | ) | $ | 1,821 | |||||||
Existing technology | 13 | 12,600 | (2,236 | ) | (4,328 | ) | 6,036 | |||||||||||
Customer relationships | 11 | 33,500 | (7,112 | ) | (10,751 | ) | 15,637 | |||||||||||
Other | 8 | 285 | (40 | ) | — | 245 | ||||||||||||
Total Intangible Assets | $ | 53,485 | $ | (10,488 | ) | $ | (19,258 | ) | $ | 23,739 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||
The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2014 is as follows (in thousands): | ||||||||||||||||||
Fiscal Year Ending December 31, | ||||||||||||||||||
Remainder of 2014 | $ | 1,300 | ||||||||||||||||
2015 | 2,600 | |||||||||||||||||
2016 | 2,600 | |||||||||||||||||
2017 | 2,600 | |||||||||||||||||
2018 | 2,600 | |||||||||||||||||
Thereafter | 10,288 | |||||||||||||||||
Total | $ | 21,988 | ||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes To Financial Statements [Abstract] | ' | ||||
Schedule of Future Lease Payments | ' | ||||
As of June 30, 2014, minimum future lease payments for non-cancelable operating leases are as follows (in thousands): | |||||
Fiscal Year Ending December 31, | Operating leases | ||||
Remainder of 2014 | $ | 4,598 | |||
2015 | 8,494 | ||||
2016 | 7,770 | ||||
2017 | 4,471 | ||||
2018 | 1,525 | ||||
Thereafter | 494 | ||||
Total minimum future lease payments | $ | 27,352 | |||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-based Compensation Expense | ' | ||||||||||||||||
The stock-based compensation related to all of our stock-based awards and employee stock purchases for the three and six months ended June 30, 2014 and 2013 is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of net revenues | $ | 937 | $ | 637 | $ | 1,781 | $ | 1,217 | |||||||||
Sales and marketing | 3,111 | 2,012 | 5,778 | 3,023 | |||||||||||||
General and administrative | 4,539 | 3,556 | 8,589 | 7,483 | |||||||||||||
Research and development | 1,719 | 1,060 | 3,290 | 1,952 | |||||||||||||
Total stock-based compensation | $ | 10,306 | $ | 7,265 | $ | 19,438 | $ | 13,675 | |||||||||
Stock Option Activity | ' | [1] | |||||||||||||||
Activity for the six months ended June 30, 2014 under the stock option plans is set forth below (in thousands, except years and per share amounts): | |||||||||||||||||
Stock Options | Weighted | Weighted Average | Aggregate | ||||||||||||||
Number of Shares | Average | Remaining | Intrinsic | ||||||||||||||
Underlying | Exercise | Contractual Term | Value | ||||||||||||||
Stock Options | Price per Share | ||||||||||||||||
(in years ) | |||||||||||||||||
Outstanding as of December 31, 2013 | 1,321 | $ | 16.08 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (514 | ) | 17.08 | ||||||||||||||
Cancelled or expired | (2 | ) | 24.47 | ||||||||||||||
Outstanding as of June 30, 2014 | 805 | $ | 15.41 | 3.34 | $ | 32,704 | |||||||||||
Vested and expected to vest at June 30, 2014 | 804 | $ | 15.41 | 3.34 | $ | 32,662 | |||||||||||
Exercisable at June 30, 2014 | 760 | $ | 15.04 | 3.31 | $ | 31,167 | |||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||||||||||||||
The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
ESPP: | |||||||||||||||||
Expected term (in years) | 1.2 | 1.2 | |||||||||||||||
Expected volatility | 42.3 | % | 46.7 | % | |||||||||||||
Risk-free interest rate | 0.17 | % | 0.18 | % | |||||||||||||
Expected dividends | — | — | |||||||||||||||
Weighted average fair value at grant date | $ | 17.97 | $ | 11.17 | |||||||||||||
Restricted Stock Units (RSUs) | ' | ||||||||||||||||
Summary Of Nonvested Shares | ' | ||||||||||||||||
A summary of the RSU activity for the six months ended June 30, 2014 is as follows (in thousands, except years): | |||||||||||||||||
Number of Shares | Weighted Remaining | Aggregate | |||||||||||||||
Underlying RSU | Contractual Period | Intrinsic Value | |||||||||||||||
(in years) | |||||||||||||||||
Nonvested as of December 31, 2013 | 2,044 | ||||||||||||||||
Granted | 943 | ||||||||||||||||
Vested and released | (580 | ) | |||||||||||||||
Forfeited | (111 | ) | |||||||||||||||
Nonvested as of June 30, 2014 | 2,296 | 1.71 | $ | 128,685 | |||||||||||||
Market Performance Based Restricted Stock Units | ' | ||||||||||||||||
Summary Of Nonvested Shares | ' | ||||||||||||||||
The following table summarizes the MSU activity for the six months ended June 30, 2014 (in thousands, except years): | |||||||||||||||||
Number of Shares | Weighted Average | Aggregate | |||||||||||||||
Underlying MSU | Remaining | Intrinsic Value | |||||||||||||||
Contractual Period | |||||||||||||||||
(in years ) | |||||||||||||||||
Nonvested as of December 31, 2013 | 307 | ||||||||||||||||
Granted | 243 | ||||||||||||||||
Vested and released | (52 | ) | |||||||||||||||
Forfeited | — | ||||||||||||||||
Nonvested as of June 30, 2014 | 498 | 1.88 | $ | 27,880 | |||||||||||||
[1] | There were no stock options granted during the three and six months ended JuneB 30, 2014 and 2013. |
Net_Profit_Per_Share_Tables
Net Profit Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule Of Earnings Per Share Basic And Diluted | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stock (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended, | Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 35,600 | $ | 29,320 | $ | 68,044 | $ | (12,663 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding, basic | 81,027 | 80,576 | 81,073 | 80,909 | ||||||||||||
Dilutive effect of potential common stock | 1,314 | 1,573 | 1,578 | — | ||||||||||||
Total shares, diluted | 82,341 | 82,149 | 82,651 | 80,909 | ||||||||||||
Net income (loss) per share, basic | $ | 0.44 | $ | 0.36 | $ | 0.84 | $ | (0.16 | ) | |||||||
Net income (loss) per share, diluted | $ | 0.43 | $ | 0.36 | $ | 0.82 | $ | (0.16 | ) | |||||||
Segments_and_Geographical_Info1
Segments and Geographical Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | |||||||||||||||
These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocation of resources. The following information relates to these segments (in thousands): | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Net Revenues | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Clear Aligner | ||||||||||||||||
Invisalign Full Products | $ | 147,158 | $ | 123,379 | $ | 285,291 | $ | 236,159 | ||||||||
Invisalign Express/Lite Products | 20,478 | 19,158 | 40,103 | 35,241 | ||||||||||||
Invisalign non-case revenues | 12,099 | 10,766 | 22,580 | 23,475 | ||||||||||||
Scanner | ||||||||||||||||
Scanners and Services | 12,796 | 10,525 | 25,203 | 22,533 | ||||||||||||
Total net revenues | $ | 192,531 | $ | 163,828 | $ | 373,177 | $ | 317,408 | ||||||||
Gross profit | ||||||||||||||||
Clear Aligner | $ | 141,703 | $ | 120,124 | $ | 274,786 | $ | 229,451 | ||||||||
Scanners and Services | 3,773 | 3,567 | 7,941 | 7,089 | ||||||||||||
Total gross profit | $ | 145,476 | $ | 123,691 | $ | 282,727 | $ | 236,540 | ||||||||
Geographical Information | ||||||||||||||||
Net revenues are presented below by geographic area (in thousands): | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: (1) | ||||||||||||||||
U.S. | $ | 133,954 | $ | 121,651 | $ | 262,593 | $ | 241,692 | ||||||||
the Netherlands | 43,680 | 32,363 | 82,523 | 63,458 | ||||||||||||
Other international | 14,897 | 9,814 | 28,061 | 12,258 | ||||||||||||
Total net revenues | $ | 192,531 | $ | 163,828 | $ | 373,177 | $ | 317,408 | ||||||||
(1) Net revenues are attributed to countries based on location of where revenue is recognized. | ||||||||||||||||
Tangible long-lived assets are presented below by geographic area (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets:(2) | ||||||||||||||||
United States | $ | 67,386 | $ | 61,439 | ||||||||||||
Mexico | 6,184 | 6,291 | ||||||||||||||
the Netherlands | 1,297 | 1,630 | ||||||||||||||
Other International | 6,445 | 6,383 | ||||||||||||||
Total long-lived assets | $ | 81,312 | $ | 75,743 | ||||||||||||
(2) Long-lived assets are attributed to countries based on entity that owns the asset. |
ShortTerm_and_LongTerm_Marketa
Short-Term and Long-Term Marketable Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available for sale short-term and long-term marketable securities | $335,207 | $229,018 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 197,966 | 126,992 |
Gross Unrealized Gains | 110 | 55 |
Gross Unrealized Losses | -17 | -7 |
Total available for sale short-term and long-term marketable securities | 198,059 | 127,040 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Commercial paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 51,103 | 54,318 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | 0 | 0 |
Total available for sale short-term and long-term marketable securities | 51,103 | 54,328 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 88,333 | 29,079 |
Gross Unrealized Gains | 55 | 10 |
Gross Unrealized Losses | -16 | -4 |
Total available for sale short-term and long-term marketable securities | 88,372 | 29,085 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. government agency bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 22,729 | 16,693 |
Gross Unrealized Gains | 7 | 10 |
Gross Unrealized Losses | -1 | 0 |
Total available for sale short-term and long-term marketable securities | 22,735 | 16,703 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 14,341 | 5,937 |
Gross Unrealized Gains | 10 | 2 |
Gross Unrealized Losses | 0 | 0 |
Total available for sale short-term and long-term marketable securities | 14,351 | 5,939 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Municipal securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 11,663 | 7,006 |
Gross Unrealized Gains | 24 | 11 |
Gross Unrealized Losses | 0 | -3 |
Total available for sale short-term and long-term marketable securities | 11,687 | 7,014 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 921 | 13,959 |
Gross Unrealized Gains | 4 | 12 |
Gross Unrealized Losses | 0 | 0 |
Total available for sale short-term and long-term marketable securities | 925 | 13,971 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. government treasury bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 8,876 | ' |
Gross Unrealized Gains | 10 | ' |
Gross Unrealized Losses | 0 | ' |
Total available for sale short-term and long-term marketable securities | 8,886 | ' |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 137,090 | 101,973 |
Gross Unrealized Gains | 102 | 62 |
Gross Unrealized Losses | -44 | -57 |
Total available for sale short-term and long-term marketable securities | 137,148 | 101,978 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 62,996 | 23,308 |
Gross Unrealized Gains | 34 | 14 |
Gross Unrealized Losses | -36 | -9 |
Total available for sale short-term and long-term marketable securities | 62,994 | 23,313 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. government agency bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 31,025 | 38,138 |
Gross Unrealized Gains | 26 | 1 |
Gross Unrealized Losses | 0 | -21 |
Total available for sale short-term and long-term marketable securities | 31,051 | 38,118 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 20,330 | 5,800 |
Gross Unrealized Gains | 11 | 4 |
Gross Unrealized Losses | -8 | -2 |
Total available for sale short-term and long-term marketable securities | 20,333 | 5,802 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Municipal securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 6,470 | 8,326 |
Gross Unrealized Gains | 15 | 13 |
Gross Unrealized Losses | 0 | -8 |
Total available for sale short-term and long-term marketable securities | 6,485 | 8,331 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | ' | 19,485 |
Gross Unrealized Gains | ' | 27 |
Gross Unrealized Losses | ' | -17 |
Total available for sale short-term and long-term marketable securities | ' | 19,495 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. government treasury bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 16,269 | 6,916 |
Gross Unrealized Gains | 16 | 3 |
Gross Unrealized Losses | 0 | 0 |
Total available for sale short-term and long-term marketable securities | $16,285 | $6,919 |
Summary_of_Financial_Assets_Me
Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | $335,207,000 | $229,018,000 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 429,814,000 | 390,149,000 |
Fair Value, Measurements, Recurring [Member] | Israeli Severance Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Other assets | 2,434,000 | 2,193,000 |
Fair Value, Measurements, Recurring [Member] | Cash Equivalents | Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 59,929,000 | 143,540,000 |
Fair Value, Measurements, Recurring [Member] | Cash Equivalents | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 32,244,000 | 15,398,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 198,059,000 | 127,040,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 51,103,000 | 54,328,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 88,372,000 | 29,085,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 925,000 | 13,971,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. government agency bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 22,735,000 | 16,703,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 925,000 | ' |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 8,886,000 | ' |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 11,687,000 | 7,014,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 22,735,000 | 16,703,000 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 14,351,000 | 5,939,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 137,148,000 | 101,978,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 62,994,000 | 23,313,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 19,495,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. government agency bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 31,051,000 | 38,118,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 19,495,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 16,285,000 | 6,919,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 6,485,000 | 8,331,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 6,919,000 |
Fair Value, Measurements, Recurring [Member] | Long-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 20,333,000 | 5,802,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 85,100,000 | 150,459,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Israeli Severance Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Other assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash Equivalents | Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 59,929,000 | 143,540,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash Equivalents | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 8,886,000 | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | U.S. government agency bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 16,285,000 | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 6,919,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 344,714,000 | 239,690,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Israeli Severance Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Other assets | 2,434,000 | 2,193,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Cash Equivalents | Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Cash Equivalents | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 32,244,000 | 15,398,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | Commercial paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 51,103,000 | 54,328,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 88,372,000 | 29,085,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | U.S. dollar dominated foreign corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 13,971,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 925,000 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 11,687,000 | 7,014,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 22,735,000 | 16,704,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Short-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 14,351,000 | 5,938,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | Corporate bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 62,994,000 | 23,313,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | U.S. government agency bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 31,051,000 | 38,118,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | Foreign bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 19,495,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | U.S. government treasury bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | Municipal securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | 6,485,000 | 8,331,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | US Government Agency Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Long-term Investments | Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Investments | $20,333,000 | $5,802,000 |
Marketable_Securities_and_Fair2
Marketable Securities and Fair Value Measurements Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Maturity Period Used To Classify Investments | ' | ' | ' | '27 months | ' | ' |
Marketable Securities, Weighted Average Remaining Maturity | ' | ' | ' | '10 months | ' | '10 months |
Asset Impairment Charges | $26,300 | $0 | $0 | $0 | $26,320 | ' |
Impairment of goodwill | ' | $0 | $0 | $0 | $40,693 | ' |
Marketable_Securities_and_Fair3
Marketable Securities and Fair Value Measurements Available For Sale Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less | $198,059 | $127,040 |
Due in one year to 27 months | 137,148 | 101,978 |
Total available for sale short-term and long-term marketable securities | $335,207 | $229,018 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Inventory [Line Items] | ' | ' |
Raw materials | $3,493 | $5,172 |
Work in process | 3,430 | 4,241 |
Finished goods | 6,192 | 4,555 |
Total Inventories | $13,115 | $13,968 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued payroll and benefits | $43,332 | $43,029 |
Accrued sales rebate | 10,137 | 10,100 |
Accrued sales tax and value added tax | 6,447 | 6,215 |
Accrued sales and marketing expenses | 4,488 | 3,893 |
Accrued accounts payable | 2,504 | 4,053 |
Accrued warranty | 3,252 | 3,104 |
Accrued professional fees | 1,872 | 1,892 |
Accrued income taxes | 2,248 | 1,205 |
Other accrued liabilities | 6,769 | 6,854 |
Total Accrued Liabilities | $81,049 | $80,345 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Product Information [Line Items] | ' |
Scanners, Warranty period | '1 year |
Warranty_Accrual_Activity_Deta
Warranty Accrual Activity (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' |
Balance at beginning of period | $3,104 | $4,453 |
Charged to cost of revenues | 1,195 | ' |
Actual warranty expenditures | -1,047 | ' |
Balance at end of period | $3,252 | $4,453 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2013 |
ICA Holdings Pty Limited [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' |
Payments to acquire business | ' | ' | $8,600,000 |
Assets acquired | ' | ' | 7,400,000 |
Liabilities assumed | ' | ' | 2,400,000 |
Goodwill | $83,795,000 | $85,362,000 | $3,600,000 |
Change_in_Carrying_Value_of_Go
Change in Carrying Value of Goodwill (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | Clear Aligner [Member] | |||
Goodwill [Roll Forward] | ' | ' | ' | |
Balance as of December 31, 2013 | $83,795 | $85,362 | $61,623 | |
Adjustments 1 | ' | ' | 184 | [1] |
Balance as of June 30, 2014 | $83,795 | $85,362 | $61,807 | |
[1] | The adjustments to goodwill during theB sixB months endedB JuneB 30, 2014 were due to foreign currency translation. |
Intangible_Assets_as_Direct_Re
Intangible Assets as Direct Result from Cadent Acquisition (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, beginning balance | $53,485 | $53,485 |
Accumulated Amortization | -12,239 | -10,488 |
Accumulated Impairment Loss | -19,258 | -19,258 |
Net Carrying Value, ending balance | 21,988 | 23,739 |
Trademarks | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, beginning balance | 7,100 | 7,100 |
Accumulated Amortization | -1,285 | -1,100 |
Accumulated Impairment Loss | -4,179 | -4,179 |
Net Carrying Value, ending balance | 1,636 | 1,821 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '15 years | '15 years |
Existing technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, beginning balance | 12,600 | 12,600 |
Accumulated Amortization | -2,732 | -2,236 |
Accumulated Impairment Loss | -4,328 | -4,328 |
Net Carrying Value, ending balance | 5,540 | 6,036 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '13 years | '13 years |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, beginning balance | 33,500 | 33,500 |
Accumulated Amortization | -8,164 | -7,112 |
Accumulated Impairment Loss | -10,751 | -10,751 |
Net Carrying Value, ending balance | 14,585 | 15,637 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '11 years | '11 years |
Other | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, beginning balance | 285 | 285 |
Accumulated Amortization | -58 | -40 |
Accumulated Impairment Loss | 0 | 0 |
Net Carrying Value, ending balance | $227 | $245 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '8 years | '8 years |
Total_Estimated_Annual_Future_
Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Expected Amortization Expense [Line Items] | ' | ' |
Remainder of 2014 | $1,300 | ' |
2015 | 2,600 | ' |
2016 | 2,600 | ' |
2017 | 2,600 | ' |
2018 | 2,600 | ' |
Thereafter | 10,288 | ' |
Net Carrying Value, ending balance | $21,988 | $23,739 |
Goodwill_and_Longlived_Assets_1
Goodwill and Long-lived Assets Impairment of goodwill (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Impairment of goodwill | ' | $0 | $0 | $0 | $40,693,000 |
Asset Impairment Charges | 26,300,000 | 0 | 0 | 0 | 26,320,000 |
Scanners and CAD/CAM Services | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Asset Impairment Charges | 19,300,000 | ' | ' | ' | ' |
Property, Plant, Equipment [Member] | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Impairment of fixed assets | $7,000,000 | ' | ' | ' | ' |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Details) (USD $) | 0 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 22, 2013 | Jun. 30, 2014 | Mar. 22, 2013 | Jun. 30, 2014 | Mar. 22, 2013 |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Letter of Credit [Member] | ||
Wells Fargo [Member] | Wells Fargo [Member] | Wells Fargo [Member] | Wells Fargo [Member] | ||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Line of credit, available borrowings | ' | ' | $50 | ' | $10 |
Unrestricted Cash Deposit | ' | 50 | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | $0 | ' |
Minimum_Future_Lease_Payments_
Minimum Future Lease Payments for Non-Cancelable Leases (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Disclosure Minimum Future Lease Payments For Non Cancelable Leases [Abstract] | ' |
Remainder of 2014 | $4,598 |
2015 | 8,494 |
2016 | 7,770 |
2017 | 4,471 |
2018 | 1,525 |
Thereafter | 494 |
Total minimum lease payments | $27,352 |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Details) (USD $) | 6 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 |
Incentive Plan 2005 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares reserved for issuance | 23,283,379 |
Amended And Restated 2005 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares reserved for issuance | 5,000,000 |
Employee Stock Purchase Plan 2010 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Maximum number of shares available | 2,400,000 |
Number of shares remaining | 1,475,372 |
Restricted Stock Units (RSUs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unamortized compensation cost | 78.1 |
Weighted average period of total unamortized cost (in years) | '2 years 8 months 24 days |
Market Performance Based Restricted Stock Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unamortized compensation cost | 13.2 |
Weighted average period of total unamortized cost (in years) | '1 year 10 months 24 days |
Market Performance Based Restricted Stock Units | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period of granted market-performance based restricted stock units | '2 years |
Market Performance Based Restricted Stock Units | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period of granted market-performance based restricted stock units | '3 years |
Percentage of market-performance based restricted stock units eligible to vest over the vesting period | 150.00% |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unamortized compensation cost | 0.5 |
Weighted average period of total unamortized cost (in years) | '9 months 18 days |
Employee Stock Purchase Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unamortized compensation cost | 1.3 |
Weighted average period of total unamortized cost (in years) | '4 months 24 days |
StockBased_Compensation_Expens
Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $10,306 | $7,265 | $19,438 | $13,675 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 937 | 637 | 1,781 | 1,217 |
Selling and Marketing Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 3,111 | 2,012 | 5,778 | 3,023 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 4,539 | 3,556 | 8,589 | 7,483 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $1,719 | $1,060 | $3,290 | $1,952 |
Activity_Under_Stock_Option_Pl
Activity Under Stock Option Plans (Details) (USD $) | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Number of Shares Underlying Stock Options | ' | ' |
Outstanding as of December 31, 2013 | 1,321 | ' |
Granted | 0 | ' |
Exercised | -514 | ' |
Cancelled or expired | -2 | ' |
Outstanding as of June 30, 2014 | 805 | ' |
Vested and expected to vest at June 30, 2014 | 804 | ' |
Exercisable at June 30, 2014 | 760 | ' |
Weighted Average Exercise Price per Share | ' | ' |
Outstanding as of June 30, 2014 | $15.41 | $16.08 |
Exercised | $17.08 | ' |
Cancelled or expired | $24.47 | ' |
Vested and expected to vest at June 30, 2014 (usd per share) | $15.41 | ' |
Exercisable at June 30, 2014 (usd per share) | $15.04 | ' |
Weighted Average Remaining Contractual Term | ' | ' |
Outstanding as of June 30, 2014 | '3 years 4 months 2 days | ' |
Vested and expected to vest at June 30, 2014 | '3 years 4 months 2 days | ' |
Exercisable at June 30, 2014 | '3 years 3 months 22 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding as of June 30, 2014 | $32,704 | ' |
Vested and expected to vest at June 30, 2014 | 32,662 | ' |
Exercisable at June 30, 2014 | $31,167 | ' |
Summary_of_Nonvested_Shares_De
Summary of Nonvested Shares (Details) (Restricted Stock Units (RSUs), USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restricted Stock Units (RSUs) | ' |
Number of Shares Underlying RSUs | ' |
Nonvested as of December 31, 2013 | 2,044 |
Granted | 943 |
Vested and released | -580 |
Forfeited | -111 |
Nonvested as of June 30, 2014 | 2,296 |
Weighted Remaining Vesting Period | ' |
Nonvested as of June 30, 2014 | '1 year 8 months 16 days |
Aggregate Intrinsic Value | ' |
Nonvested as of June 30, 2014 | $128,685 |
Summary_of_MSU_Performance_Det
Summary of MSU Performance (Details) (Market Performance Based Restricted Stock Units, USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Market Performance Based Restricted Stock Units | ' |
Number of Shares Underlying MSUs | ' |
Nonvested as of December 31, 2013 | 307 |
Granted | 243 |
Vested and released | -52 |
Forfeited | 0 |
Nonvested as of June 30, 2014 | 498 |
Weighted Average Remaining Vesting Period | ' |
Nonvested as of June 30, 2014 | '1 year 10 months 17 days |
Aggregate Intrinsic Value | ' |
Nonvested as of June 30, 2014 | $27,880 |
Stockbased_Compensation_Stockb
Stock-based Compensation Stock-based Compensation Employee Stock Purchase Plan (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Expected term (in years) | '1 year 2 months 12 days | '1 year 2 months 12 days |
Expected volatility | 42.30% | 46.70% |
Risk-free interest rate | 0.17% | 0.18% |
Expected dividends | 0.00% | 0.00% |
Weighted average fair value at grant date (USD per Share) | $17.97 | $11.17 |
Common_Stock_Repurchase_Progra1
Common Stock Repurchase Program - Additional Information (Details) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 28, 2014 | Apr. 23, 2014 | Jun. 30, 2014 | Jul. 29, 2014 | Jul. 29, 2014 |
Subsequent Event [Member] | Accelerated Share Repurchase Program [Member] | ||||
Share Repurchases [Line Items] | ' | ' | ' | ' | ' |
Repurchase of common stock, common stock authorized | ' | $300 | ' | ' | ' |
Stock repurchase program, authorized amount for next twelve months | ' | 100 | ' | ' | ' |
Accelerated share repurchase, contracted amount of repurchase | 70 | ' | ' | ' | ' |
Share Repurchase Program, Amount Paid | 70 | ' | ' | ' | ' |
Accelerated Share Repurchase, Initial Delivery of Shares, Shares | 1 | ' | ' | ' | ' |
Share Repurchases Price Paid Per Share | $49.17 | ' | ' | ' | $51.46 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | $21 | ' | ' |
Accelerated Share Repurchase Program, Final Delivery of Shares, Shares | ' | ' | ' | 0.4 | ' |
Treasury Stock, Shares, Acquired | ' | ' | ' | ' | 1.4 |
Accounting_for_Income_Taxes_Ad
Accounting for Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Provision for income taxes | $13,039,000 | ' | $8,246,000 | ' | $23,000,000 | $11,166,000 |
Effective income tax rate, continuing operations | 26.80% | ' | 22.00% | ' | 25.30% | -745.90% |
Effective income tax rate reconciliation, prior year income taxes, amount | 2,100,000 | ' | ' | ' | 1,800,000 | ' |
Income tax expense (benefit), nondeductible expense, impairment losses, amount | ' | ' | ' | 40,700,000 | ' | ' |
Valuation allowance, deferred tax asset | 35,400,000 | ' | ' | ' | 35,400,000 | ' |
Unrecognized tax benefits | 29,500,000 | ' | ' | ' | 29,500,000 | ' |
Unrecognized tax benefits, decrease resulting from prior period tax positions | ' | 8,400,000 | ' | ' | ' | ' |
Tax holiday effect on diluted earnings per share | $0.09 | ' | $0.07 | ' | $0.18 | $0.15 |
Foreign Tax Authority [Member] | ' | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Foreign income tax rate | ' | ' | ' | ' | 30.00% | ' |
Tax Holiday effect | $7,500,000 | ' | $5,900,000 | ' | $15,100,000 | $12,000,000 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Profit Per Share Attributable to Common Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net profit (loss) | $35,600 | $29,320 | $68,044 | ($12,663) |
Denominator: | ' | ' | ' | ' |
Weighted-average common shares outstanding, basic (in shares) | 81,027 | 80,576 | 81,073 | 80,909 |
Dilutive effect of potential common stock (in shares) | 1,314 | 1,573 | 1,578 | 0 |
Total shares, diluted | 82,341 | 82,149 | 82,651 | 80,909 |
Net profit (loss) per share, basic | $0.44 | $0.36 | $0.84 | ($0.16) |
Net profit (loss) per share, diluted | $0.43 | $0.36 | $0.82 | ($0.16) |
Net_Profit_per_Share_Additiona
Net Profit per Share - Additional Information (Details) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 1.8 |
Segments_and_Geographical_Info2
Segments and Geographical Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2014 | |
segment | |
Disclosure Segments And Geographical Information Additional Information [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | $192,531 | [1] | $163,828 | [1] | $373,177 | [1] | $317,408 | [1] |
Gross profit | 145,476 | 123,691 | 282,727 | 236,540 | ||||
Clear Aligner [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Gross profit | 141,703 | 120,124 | 274,786 | 229,451 | ||||
Invisalign Full [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 147,158 | 123,379 | 285,291 | 236,159 | ||||
Invisalign ExpressLite [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 20,478 | 19,158 | 40,103 | 35,241 | ||||
Invisalign Non-Case Revenues [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 12,099 | 10,766 | 22,580 | 23,475 | ||||
Scanners and CAD/CAM Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 12,796 | 10,525 | 25,203 | 22,533 | ||||
Gross profit | $3,773 | $3,567 | $7,941 | $7,089 | ||||
[1] | Net revenues are attributed to countries based on location of where revenue is recognized. |
Net_Revenues_by_Geographic_Are
Net Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $192,531 | [1] | $163,828 | [1] | $373,177 | [1] | $317,408 | [1] |
United States | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 133,954 | [1] | 121,651 | [1] | 262,593 | [1] | 241,692 | [1] |
the Netherlands | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 43,680 | [1] | 32,363 | [1] | 82,523 | [1] | 63,458 | [1] |
Other international | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $14,897 | [1] | $9,814 | [1] | $28,061 | [1] | $12,258 | [1] |
[1] | Net revenues are attributed to countries based on location of where revenue is recognized. |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographic Area (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | $81,312 | [1] | $75,743 | [1] |
United States | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | 67,386 | [1] | 61,439 | [1] |
MEXICO | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | 6,184 | 6,291 | ||
the Netherlands | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | 1,297 | 1,630 | ||
Other international | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | $6,445 | [1] | $6,383 | [1] |
[1] | Long-lived assets are attributed to countries based on entity that owns the asset. |