Align Technology (ALGN) 10-Q 30 Oct 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Oct. 23, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-32259
Entity Registrant Name	ALIGN TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3267295
Entity Address, Address Line One	2820 Orchard Parkway
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	470-1000
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ALGN
Security Exchange Name	NASDAQ
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Central Index Key	0001097149
Current Fiscal Year End Date	--12-31
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		78,850,392

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Other Commitments On October 3, 2019, we entered into a Promotional Rights Agreement (the “Agreement”) with NFL Properties LLC for $36.0 million which includes certain advertising and m edia coverage. As of September 30, 2020, we had a remaining commitment of $32.5 million which is expected to be paid through 2023. Off-Balance Sheet Arrangements As of September 30, 2020, we had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in Note 10 “ Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K. 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 September 30, 2020, we did not have any material indemnification claims that were probable or reasonably possible.

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net revenues	$ 734,144	$ 607,341	$ 1,637,421	$ 1,757,009
Cost of net revenues	200,056	169,787	484,649	485,070
Gross profit	534,088	437,554	1,152,772	1,271,939
Operating expenses:
Selling, general and administrative	312,492	277,514	852,365	792,572
Research and development	44,527	39,680	126,420	116,034
Impairments and other (gains) charges	0	(6,792)	0	22,990
Litigation settlement gain	0	0	0	(51,000)
Total operating expenses	357,019	310,402	978,785	880,596
Income from operations	177,069	127,152	173,987	391,343
Interest income	329	3,478	2,788	9,576
Other income (expense), net	7,147	(2,211)	(12,368)	5,935
Total interest income and other income (expense), net	7,476	1,267	(9,580)	15,511
Net income before provision for (benefit from) income taxes and equity in losses of investee	184,545	128,419	164,407	406,854
Provision for (benefit from) income taxes	45,174	25,895	(1,452,493)	77,812
Equity in losses of investee, net of tax	0	0	0	7,528
Net income	$ 139,371	$ 102,524	$ 1,616,900	$ 321,514
Net income per share:
Basic (in usd per share)	$ 1.77	$ 1.29	$ 20.54	$ 4.03
Diluted (in usd per share)	$ 1.76	$ 1.28	$ 20.45	$ 4
Shares used in computing net income per share:
Basic (in shares)	78,824	79,332	78,729	79,709
Diluted (in shares)	79,163	79,825	79,078	80,397

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 139,371	$ 102,524	$ 1,616,900	$ 321,514
Change in foreign currency translation adjustment, net of tax	15,810	(92)	25,793	530
Change in unrealized gains (losses) on investments, net of tax	0	41	(194)	317
Other comprehensive income (loss)	15,810	(51)	25,599	847
Comprehensive income	$ 155,181	$ 102,473	$ 1,642,499	$ 322,361

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 615,532	$ 550,425
Short-term investments:	0	318,202
Accounts receivable, net of allowance for doubtful accounts of $13,716 and $6,756, respectively	626,046	550,291
Inventories	123,093	112,051
Prepaid expenses and other current assets	108,576	102,450
Total current assets	1,473,247	1,633,419
Property, plant and equipment, net	703,657	631,730
Operating lease right-of-use assets, net	83,386	56,244
Goodwill and intangible assets, net	555,946	75,692
Deferred tax assets	1,566,227	64,007
Other assets	32,628	39,610
Total assets	4,415,091	2,500,702
Current liabilities:
Accounts payable	119,184	87,250
Accrued liabilities	318,471	319,958
Deferred revenues	684,139	563,762
Total current liabilities	1,121,794	970,970
Income tax payable	108,669	102,794
Operating lease liabilities	65,518	43,463
Other long-term liabilities	85,639	37,306
Total liabilities	1,381,620	1,154,533
Commitments and contingencies (Notes 9 and 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)	0	0
Common stock, $0.0001 par value (200,000 shares authorized; 78,849 and 78,433 issued and outstanding, respectively)	8	8
Additional paid-in capital	951,740	906,937
Accumulated other comprehensive income (loss), net	24,911	(688)
Retained earnings	2,056,812	439,912
Total stockholders’ equity	3,033,471	1,346,169
Total liabilities and stockholders’ equity	$ 4,415,091	$ 2,500,702

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Allowance for doubtful accounts	$ 13,716	$ 6,756
Preferred stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	78,849,000	78,433,000
Common stock, shares outstanding	78,849,000	78,433,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss), Net	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2018		79,778
Beginning Balance at Dec. 31, 2018	$ 1,252,891	$ 8	$ 877,514	$ (2,774)	$ 378,143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	321,514				321,514
Net change in unrealized gains (losses) from investments	317			317
Change in foreign currency translation adjustment, net of tax	530			530
Issuance of common stock relating to employee equity compensation plans (in shares)		529
Issuance of common stock relating to employee equity compensation plans	17,907		17,907
Tax withholdings related to net share settlements of equity awards	(55,793)		(55,793)
Common stock repurchased and retired (shares)		(1,498)
Stock Repurchased and Retired During Period, Value	(299,504)		(15,006)		(284,498)
Stock-based compensation	67,687		67,687
Ending Balance (in shares) at Sep. 30, 2019		78,809
Ending Balance at Sep. 30, 2019	1,305,549	$ 8	892,309	(1,927)	415,159
Beginning Balance (in shares) at Dec. 31, 2018		79,778
Beginning Balance at Dec. 31, 2018	1,252,891	$ 8	877,514	(2,774)	378,143
Ending Balance (in shares) at Dec. 31, 2019		78,433
Ending Balance at Dec. 31, 2019	1,346,169	$ 8	906,937	(688)	439,912
Beginning Balance (in shares) at Jun. 30, 2019		79,865
Beginning Balance at Jun. 30, 2019	1,373,682	$ 8	874,275	(1,876)	501,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	102,524				102,524
Net change in unrealized gains (losses) from investments	41			41
Change in foreign currency translation adjustment, net of tax	(92)			(92)
Issuance of common stock relating to employee equity compensation plans (in shares)		76
Issuance of common stock relating to employee equity compensation plans	8,293		8,293
Tax withholdings related to net share settlements of equity awards	(3,075)		(3,075)
Common stock repurchased and retired (shares)		(1,132)
Stock Repurchased and Retired During Period, Value	(200,000)		(11,360)		(188,640)
Stock-based compensation	24,176		24,176
Ending Balance (in shares) at Sep. 30, 2019		78,809
Ending Balance at Sep. 30, 2019	1,305,549	$ 8	892,309	(1,927)	415,159
Beginning Balance (in shares) at Dec. 31, 2019		78,433
Beginning Balance at Dec. 31, 2019	1,346,169	$ 8	906,937	(688)	439,912
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,616,900				1,616,900
Net change in unrealized gains (losses) from investments	(194)			(194)
Change in foreign currency translation adjustment, net of tax	25,793			25,793
Issuance of common stock relating to employee equity compensation plans (in shares)		416
Issuance of common stock relating to employee equity compensation plans	20,314		20,314
Tax withholdings related to net share settlements of equity awards	(48,674)		(48,674)
Stock-based compensation	73,163		73,163
Ending Balance (in shares) at Sep. 30, 2020		78,849
Ending Balance at Sep. 30, 2020	3,033,471	$ 8	951,740	24,911	2,056,812
Beginning Balance (in shares) at Jun. 30, 2020		78,781
Beginning Balance at Jun. 30, 2020	2,845,045	$ 8	918,495	9,101	1,917,441
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	139,371				139,371
Change in foreign currency translation adjustment, net of tax	15,810			15,810
Issuance of common stock relating to employee equity compensation plans (in shares)		68
Issuance of common stock relating to employee equity compensation plans	9,652		9,652
Tax withholdings related to net share settlements of equity awards	(1,636)		(1,636)
Stock-based compensation	25,229		25,229
Ending Balance (in shares) at Sep. 30, 2020		78,849
Ending Balance at Sep. 30, 2020	$ 3,033,471	$ 8	$ 951,740	$ 24,911	$ 2,056,812

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,616,900	$ 321,514
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(1,502,459)	1,470
Depreciation and amortization	68,769	57,194
Stock-based compensation	73,163	67,687
Non-cash operating lease cost	16,819	13,600
Allowance for doubtful accounts provisions	13,090	4,084
Impairments on equity investments	3,787	3,975
Impairments on long-lived assets	0	28,498
Gain on lease terminations	0	(6,792)
Gain from sale of equity method investment	0	(15,769)
Equity in losses of investee	0	7,528
Other non-cash operating activities	10,402	13,342
Changes in assets and liabilities, net of effects of acquisition:
Accounts receivable	(101,888)	(95,566)
Inventories	(11,774)	(40,775)
Prepaid expenses and other assets	(28,251)	(14,826)
Accounts payable	21,837	1,343
Accrued and other long-term liabilities	(28,343)	31,089
Long-term income tax payable	119	13,425
Deferred revenues	128,585	138,072
Net cash provided by operating activities	280,756	529,093
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash acquired	(420,788)	0
Purchase of property, plant and equipment	(101,757)	(107,157)
Purchase of marketable securities	(5,341)	(588,805)
Proceeds from maturities of marketable securities	42,641	211,829
Proceeds from sales of marketable securities	278,817	194,677
Repayment on unsecured promissory note	17,828	13,185
Other investing activities	1,760	(14,062)
Net cash used in investing activities	(186,840)	(290,333)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	20,314	17,907
Common stock repurchases	0	(299,504)
Payroll taxes paid upon the vesting of equity awards	(48,674)	(55,793)
Purchase of finance lease	0	(45,773)
Net cash used in financing activities	(28,360)	(383,163)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(568)	(2,098)
Net increase (decrease) in cash, cash equivalents, and restricted cash	64,988	(146,501)
Cash, cash equivalents, and restricted cash at beginning of the period	551,134	637,566
Cash, cash equivalents, and restricted cash at end of the period	$ 616,122	$ 491,065

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and contains all adjustments, including normal recurring adjustments, necessary to state fairly our results of operations for the three and nine months ended September 30, 2020 and 2019, our comprehensive income for the three and nine months ended September 30, 2020 and 2019, our financial position as of September 30, 2020, our stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and our cash flows for the nine months ended September 30, 2020 and 2019. The Condensed Consolidated Balance Sheet as of December 31, 2019 was derived from the December 31, 2019 audited financial statements. It does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”). The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 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 the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes and contingent liabilities, the fair values of financial instruments, stock-based compensation, unsecured promissory note receivable, and valuation of investments in privately held companies among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant Accounting Policies Our significant accounting policies are described in Note 1 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K. As a result of our exocad Global Holdings GmbH (“exocad”) acquisition, we have added or amended relevant significant accounting policies as described below . Refer to Note 4 “ Business Combination ” of the Notes to Condensed Consolidated Financial Statements for additional details on the exocad acquisition which is included in our Imaging Systems and CAD/CAM Services ( “ Systems and Services ” ) reportable segment. Business Combinations We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. When determining the fair value of assets acquired and liabilities assumed, management is required to make certain estimates and assumptions, especially with respect to intangible assets. The estimates and assumptions used in valuing intangible assets include, but are not limited to, the amount and timing of projected future cash flows, the discount rate used to determine the present value of these cash flows, and the determination of the assets’ life cycle. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Revenue Recognition - Systems and Services We sell intraoral scanners and computer-aided design/computer-aided manufacturing (“CAD/CAM”) services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/ or extended warranty, we allocate revenues based on the respective standalone selling price (“SSP”) of the scanner and the subscription service. We estimate the SSP of each element, taking into consideration historical prices as well as our discounting strategies. Revenues are then recognized over time as the monthly services are rendered and upon shipment of the scanner, as that is when we deem the customer to have obtained control. CAD/CAM services, where sold separately, include the initial software license and maintenance and support. We allocate revenues based upon the respective SSPs of the software license and the maintenance and support. We estimate the SSP of each element using historical prices. Revenues related to the software license are recognized upfront and revenues related to the maintenance and support are recognized over time. For both scanner and service sales, most consideration is collected upfront and in cases where there are payment plans, consideration is collected within one year and, therefore, there are no significant financing components. Certain Risks and Uncertainties Due to the COVID-19 pandemic, we are subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply our significant accounting policies. As the COVID-19 pandemic continues to be a global issue, we may make changes to these estimates and judgments, which could result in meaningful impacts to our financial statements in future periods. The extent and duration of the impact of the COVID-19 pandemic on our business is highly uncertain and difficult to predict and the response to the pandemic is rapidly evolving. The severity of the impact of the COVID-19 pandemic on our business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on our customers, all of which are uncertain and cannot be predicted. Our future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions or limitations, changes in manufacturing efficiency and capacity constraints caused by uneven or rapid changes in demand, and the impact of any initiatives or programs that we may undertake to address financial and operations challenges faced by us or our customers. Additionally, the uncertainty of future results and cash flows may impact our significant assumptions and estimates including the collectability of accounts and other receivables and realization of our deferred tax assets. The extent to which the COVID-19 pandemic may continue to materially impact our financial condition, liquidity, or results of operations is uncertain for all of the foregoing reasons stated above and many others directly and indirectly related to the virus and efforts to contain its spread. Recent Accounting Pronouncements (i) New Accounting Updates Recently Adopted In June 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued ASU 2016-13, “Financial Instruments - Credit Losses” (Topic 326) to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this update replace the existing guidance of incurred loss impairment methodology with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses ” which clarifies the scope of guidance in the ASU 2016-13 . The updated guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this standard in the first quarter of fiscal year 2020 which did not have a material impact on our condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, ” to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the amendments in this update, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis. We adopted this standard in the first quarter of fiscal year 2020 which did not have any impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” to modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis. We adopted this standard in the first quarter of fiscal year 2020 which did not have any impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” to clarify the guidance on the costs of implementing a cloud computing hosting arrangement that is a service contract. Under the amendments in this update, the entity is required to follow the guidance in Subtopic 350-40, Internal-Use Software , to determine which implementation costs under the service contract to be capitalized as an asset and which costs to expense. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 either on a retrospective or prospective basis. We adopted this standard in the first quarter of fiscal year 2020 on a prospective basis which did not have any impact on our condensed consolidated financial statements and related disclosures. (ii) Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes, ” to enhance and simplify various aspects of the income tax accounting guidance. The amendment removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. We are currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures; however, we anticipate the adoption of the guidance will not have a material impact to our consolidated financial statements and related disclosures.

Investments and Fair Value Meas

Investments and Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Investments and Fair Value Measurements	Investments and Fair Value Measurements Marketable Securities We have no short-term or long-term marketable securities as of September 30, 2020. As of December 31, 2019, the estimated fair value of our short-term marketable securities, classified as available for sale, are as follows (in thousands): December 31, 2019 Amortized Gross Gross Fair Value Corporate bonds $ 210,891 $ 142 $ (27) $ 211,006 U.S. government treasury bonds 70,587 65 (2) 70,650 U.S. government agency bonds 22,085 17 (1) 22,101 Commercial paper 14,426 — — 14,426 Certificates of deposit 19 — — 19 Total marketable securities, short-term $ 318,008 $ 224 $ (30) $ 318,202 We had no long-term marketable securities as of December 31, 2019. Cash equivalents are not included in the table above as the gross unrealized gains and losses are not material. We had no short-term marketable securities that have been in a continuous material unrealized loss position for greater than twelve months as of December 31, 2019. Amounts reclassified to earnings from accumulated other comprehensive income (loss), net related to unrealized gains or losses were not material for the three and nine months ended September 30, 2020 and 2019. For the three and nine months ended September 30, 2020 and 2019, realized gains or losses were not material. Our fixed-income securities investment portfolio allows for investments with a maximum effective maturity of up to 40 months on any individual security. 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 which are primarily due to changes in interest rates and credit spreads. 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 seven months as of December 31, 2019. As the carrying value approximates the fair value for our short-term marketable securities shown in the table above, the fair value of our short-term marketable securities as of December 31, 2019 had a contractual maturity one year or less. Fair Value Measurements The following tables summarize our financial assets measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 285,228 $ 285,228 $ — $ — Prepaid expenses and other current assets: Israeli funds 3,399 — 3,399 — Current unsecured promissory note 14,505 — — 14,505 $ 303,132 $ 285,228 $ 3,399 $ 14,505 Description Balance as of December 31, 2019 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 236,923 $ 236,923 $ — $ — Short-term investments: Corporate bonds 211,006 — 211,006 — Commercial paper 14,426 — 14,426 — U.S. government treasury bonds 70,650 70,650 — — U.S. government agency bonds 22,101 — 22,101 — Certificates of deposit 19 — 19 — Prepaid expenses and other current assets: Israeli funds 3,226 — 3,226 — Current unsecured promissory note 25,005 — — 25,005 Other assets: Long-term unsecured promissory note 7,328 — — 7,328 $ 590,684 $ 307,573 $ 250,778 $ 32,333 The unsecured promissory note that was entered into in 2019 with SmileDirectClub, LLC (“SDC”) is classified as Level 3 in our fair value hierarchy as financial information of third parties may not be timely available and consequently we estimate the fair value based on the best available information at the measurement date. The original amount of the note was $54.2 million which has decreased due to payments received. Refer to Note 6 “Equity Method Investments” of the Notes to Condensed Consolidated Financial Statements for more information. Investments in Privately Held Companies Our investments in equity securities of privately held companies without readily determinable fair values were $2.1 million and $5.9 million as of September 30, 2020 and December 31, 2019, respectively, and are reported as nonrecurring investments within other assets in our Condensed Consolidated Balance Sheet. Our investments in equity securities are considered Level 3 in the fair value hierarchy since the investments are in private companies without quoted market prices and we adjust the carrying value based on observable price change s. During the nine months ended September 30, 2020 and September 30, 2019, we recorded impairment losses of $3.8 million and $4.0 million, respectively, resulting from observable price changes. Derivatives Not Designated as Hedging Instruments Recurring foreign currency forward contracts We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, during the three months ended September 30, 2020 and 2019, we recognized net losses of $12.1 million and net gains of $10.1 million, respectively, and during the nine months ended September 30, 2020 and 2019, we recognized net gains of $0.6 million and $10.5 million, respectively. As of September 30, 2020 and December 31, 2019, the fair value of foreign exchange forward contracts outstanding was not material. The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Local Currency Amount Notional Contract Amount (USD) Chinese Yuan ¥1,075,000 $ 158,198 Euro €127,000 148,852 Canadian Dollar C$77,000 57,570 British Pound £29,200 37,524 Japanese Yen ¥3,385,000 32,042 Brazilian Real R$112,500 19,899 Israeli Shekel ILS53,000 15,441 Mexican Peso M$140,000 6,266 Australian Dollar A$6,900 4,925 Swiss Franc CHF4,000 4,343 $ 485,060 December 31, 2019 Local Currency Amount Notional Contract Amount (USD) Euro €97,000 $ 108,870 Chinese Yuan ¥431,000 60,702 Canadian Dollar C$52,000 39,802 British Pound £28,000 36,770 Brazilian Real R$130,000 32,185 Japanese Yen ¥3,000,000 27,604 Israeli Shekel ILS63,700 18,439 Mexican Peso M$140,000 7,398 Australian Dollar A$3,000 2,101 $ 333,871 Other foreign currency forward contract Prior to the closing of the exocad acquisition on April 1, 2020, we entered into a Euro foreign currency forward contract with a notional contract amount of €376.0 million. During the nine months ended September 30, 2020, we recognized a $10.2 million loss within other income (expense), net in our Condensed Consolidated Statement of Operations.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 70,659 $ 54,947 Work in process 26,167 30,974 Finished goods 26,267 26,130 Total inventories $ 123,093 $ 112,051 Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, Tax related receivables $ 55,162 $ 41,252 Current promissory note and related interest receivable 1 14,552 25,005 Prepaid software and maintenance 13,598 7,128 Others 25,264 29,065 Total prepaid expenses and other current assets $ 108,576 $ 102,450 1 Refer to Note 6“Equity Method Investments” of the Notes to Condensed Consolidated Financial Statements for more information. Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and benefits $ 126,112 $ 162,486 Accrued expenses 63,117 55,529 Accrued property, plant and equipment 25,597 9,167 Current operating lease liabilities 20,674 15,737 Accrued professional fees 19,112 10,410 Accrued income taxes 15,539 14,130 Others 48,320 52,499 Total accrued liabilities $ 318,471 $ 319,958 We regularly review the balance for accrued warranty and update 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. We also warrant our CAD/CAM software for a one year period to perform in accordance with agreed product specifications. As we have not historically incurred any material warranty costs, we do not accrue for these software warranties. Warranty accrual consists of the following activity (in thousands): Nine Months Ended 2020 2019 Balance at beginning of period $ 11,205 $ 8,551 Charged to cost of net revenues 8,047 9,429 Actual warranty expenditures (8,229) (7,178) Balance at end of period $ 11,023 $ 10,802 Deferred revenues consist of the following (in thousands): September 30, December 31, Deferred revenues - current $ 684,139 $ 563,762 Deferred revenues - long-term 1 $ 46,986 $ 35,503 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet During the three months ended September 30, 2020 and 2019, we recognized $734.1 million and $607.3 million of revenue, respectively, of which $99.6 million and $70.1 million was included in the deferred revenues balance at December 31, 2019 and 2018, respectively. During the nine months ended September 30, 2020 and 2019, we recognized $1.6 billion and $1.8 billion of revenue, respectively, of which $263.3 million and $207.0 million was included in the deferred revenues balance at December 31, 2019 and 2018, respectively. Our unfulfilled performance obligations, including deferred revenues and backlog, as of September 30, 2020 were $744.7 million. one

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Business Combinations	On April 1, 2020 (the “acquisition date”), we completed the acquisition of privately-held exocad for a total purchase consideration of $430.0 million and exocad became a wholly-owned subsidiary. exocad is a German dental CAD/CAM software company that offers fully integrated workflows to dental labs and dental practices. We believe the synergies from the acquisition will strengthen our digital platform by adding exocad’s expertise in restorative dentistry, implantology, guided surgery, and smile design to extend our digital solutions and pave the way for new, seamless cross-discipline dentistry in the lab and at chairside. The total purchase consideration consisted of the following (in thousands): Cash paid to exocad stockholders $ 412,287 Cash paid to settle exocad’s bank debt 17,691 Total purchase consideration paid $ 429,978 The preliminary allocation of purchase price to assets acquired and liabilities assumed which is subject to change within the measurement period is as follows (in thousands): Goodwill $ 340,181 Identified intangible assets 118,700 Cash and cash equivalents 9,190 Deferred tax liabilities (35,419) Other assets (liabilities), net (2,674) Total $ 429,978 Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets, and represents the expected synergies of the transaction and the knowledge and experience of the workforce in place. None of this goodwill is 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. We allocated approximately $296.7 million of goodwill to our Systems and Services reporting unit (formerly the "Scanner and Services" reporting unit prior to its renaming during the second quarter of 2020) and approximately $43.5 million of the goodwill to our Clear Aligner reporting unit (Refer to Note 5 "Goodwill and Intangible Assets" of the Notes to Condensed Consolidated Financial Statements for additional details) . Our reporting units are the same as our operating segments. Acquisition related costs are recognized separately from the business combination and expensed as incurred. The following table presents details of the identified intangible assets acquired (in thousands, except years): Weighted Average Amortization Period (in years) Fair Value Intangible assets subject to amortization: Existing technology 10 $ 87,000 Customer relationships 10 21,500 Tradenames 7 9,800 Intangible assets not subject to amortization: In-process Research and Development (“IPR&D”) N/A 400 Total intangible assets $ 118,700 We believe the amount of purchased intangible assets recorded above represent the fair values and approximate the amount a market participant would pay for these intangible assets as of the acquisition date. Existing technology represents the estimated fair value of exocad’s core technology that has reached technological feasibility. We valued the existing technology using the multi-period excess earnings method under the income approach. The economic useful life of existing technology was determined by considering the life cycle of the technology and related cash flows. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers. Customer relationships were valued using the with-and-without method under the income approach. The economic useful life for customer relationships was based on historical customer attrition rates. Tradenames relates to the exocad tradenames that are recognized within the industry. The fair value was determined using the relief-from-royalty method under the income approach. The economic useful life of tradenames was determined by benchmarking against similar transactions entered into by peer companies. IPR&D refers to the fair value of projects that are not yet completed but have potential value to the company. Deferred tax liabilities were recorded for significant basis differences primarily to reflect the tax effect of fair value adjustments made to the beginning balance of the intangible assets and deferred revenue as of the acquisition date (Refer to Note 13 "Accounting for Income Taxes" of the Notes to Condensed Consolidated Financial Statements for additional details). Our condensed consolidated financial statements include the operating results of exocad from the acquisition date. Separate post-acquisition operating results and pro forma results of operations for this acquisition have not been presented as the effect is not material to our financial results.

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The change in the carrying value of goodwill for the nine months ended September 30, 2020, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2019 $ 63,924 $ — $ 63,924 Additions from exocad acquisition 1 43,500 296,681 340,181 Adjustments 2 2,695 20,542 23,237 Balance as of September 30, 2020 $ 110,119 $ 317,223 $ 427,342 1 Includes goodwill adjustments within the measurement period (up to one year from acquisition date). Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details. 2 Adjustments related to foreign currency translation within the measurement period During the fourth quarter of fiscal 2019, we performed our annual goodwill impairment testing and found no impairment as the fair value of our Clear Aligner reporting unit was significantly in excess of the carrying value. Intangible Long-Lived Assets Acquired intangible long-lived assets are being amortized as follows (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of September 30, 2020 Accumulated Amortization Accumulated Impairment Loss Net Carrying Trademarks and tradenames 10 $ 16,900 $ (2,849) $ (4,179) $ 9,872 Existing technology 10 99,600 (10,603) (4,328) 84,669 Customer relationships 11 55,000 (20,876) (10,751) 23,373 Other 1 5 14,913 (11,885) — 3,028 $ 186,413 $ (46,213) $ (19,258) 120,942 Foreign currency translation 7,662 Total intangible assets 2 $ 128,604 1 Includes reacquired rights, patents and other intangible assets 2 Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details on intangible assets from our exocad acquisition. Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Trademarks 15 $ 7,100 $ (2,045) $ (4,179) $ 876 Existing technology 13 12,600 (5,831) (4,328) 2,441 Customer relationships 11 33,500 (18,405) (10,751) 4,344 Reacquired rights 3 7,500 (7,059) — 441 Patents 8 6,796 (3,165) — 3,631 Other 2 618 (583) — 35 Total intangible assets $ 68,114 $ (37,088) $ (19,258) $ 11,768 The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2020 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2020 $ 3,907 2021 15,622 2022 14,366 2023 13,745 2024 12,805 Thereafter 60,497 Total $ 120,942 Amortization expense for the three months ended September 30, 2020 and 2019 was $4.1 million and $1.5 million, respectively, and amortization expense for the nine months ended September 30, 2020 and 2019 was $9.5 million and $4.5 million, respectively.

Equity Method Investments

Equity Method Investments	9 Months Ended
	Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity Method Investments On July 25, 2016, we acquired a 17% equity interest, on a fully diluted basis, in SDC for $46.7 million. Concurrently with the investment, we also entered into a supply agreement to manufacture clear aligners for SDC, which expired on December 31, 2019. The sale of aligners to SDC and the income from the supply agreement are reported in our Clear Aligner business segment. On July 24, 2017, we purchased an additional 2% equity interest in SDC for $12.8 million. The investment was accounted for as an equity method investment and recorded in our Condensed Consolidated Balance Sheet. We recorded our proportional share of SDC’s losses within equity in losses of investee, net of tax, in our Condensed Consolidated Statement of Operations. As a result of the arbitrator’s decision regarding SDC announced on March 5, 2019, we were ordered to tender our SDC equity interest by April 3, 2019 for a purchase price equal to the “capital account” balance as of October 31, 2017 under the terms of the investment. In April 2019, based on the “capital account” value provided by SDC, we entered into an unsecured promissory note with SDC to receive $54.2 million through February 1, 2021 in exchange for the tender of our membership interests. As a result, we derecognized the equity method investment balance of $38.4 million in exchange for an unsecured promissory note of $54.2 million and we recorded the difference of $15.8 million as a gain in the second quarter of 2019 in other income in our Condensed Consolidated Statement of Operations. Although we tendered our membership interests pursuant to the arbitrator’s decision, the parties did not agree on the amount of the “capital account” balance as of October 31, 2017 or the appropriate repurchase price for the membership units. On July 3, 2019, we filed a demand for arbitration regarding SDC’s calculation of the “capital account” balance. The arbitration proceeding remains pending (Refer to Note 9 “Legal Proceedings” of the Notes to Condensed Consolida ted Financial Statements

Credit Facilities

Credit Facilities	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Credit Facilities	Credit FacilityOn July 21, 2020 we entered into a new credit facility for a $300.0 million unsecured revolving line of credit, with a $50.0 million letter of credit sublimit, and a maturity date of July 21, 2023 (“2020 Credit Facility”), replacing our previous credit facility which provided for a $200.0 million revolving line of credit with a $50.0 million letter of credit. The 2020 Credit Facility requires us to comply with specific financial conditions and performance requirements. Loans under the 2020 Credit Facility bear interest, at our option, at either a rate based on the reserve adjusted LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate is the highest of the credit facility's publicly announced prime rate, the federal funds rate plus 0.50% and one-month LIBOR plus 1.0%. The margin ranges from 1.50% to 2.25% for LIBOR loans and 0.50% to 1.25% for base rate loans. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (and at three month intervals if the interest period exceeds three months) in the case of LIBOR loans. The outstanding principal, together with accrued and unpaid interest, is due on the maturity date. As of September 30, 2020, we had no outstanding borrowings under the 2020 Credit Facility and were in compliance with the conditions and performance requirements.

Impairments and Other (Gains) C

Impairments and Other (Gains) Charges	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Impairments and Other (Gains) Charges	Impairments and Other (Gains) Charges On March 5, 2019, we announced the outcome of the arbitration regarding SDC (Refer to Note 9 “Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements for SDC legal proceedings discussion) which required Align to close its Invisalign stores and tender Align’s equity interest in SDC by April 3, 2019. Accordingly, Align evaluated the ongoing value of the Invisalign stores’ operating lease right-of-use assets and related leasehold improvements and other fixed assets in accordance with ASC 360, Property, Plant and Equipment . Based on the evaluation, Align determined that the carrying value of these assets were not recoverable. Align evaluated the fair value of these assets in accordance with ASC 820, Fair Value Measurement, and we considered the market participant’s ability to generate economic benefits by using these assets in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. As a result, in the first quarter of 2019, we recorded impairment losses of $14.2 million for operating lease right-of-use assets and $14.3 million of leasehold improvements and other fixed assets. In addition, we also recorded $1.3 million of employee severance costs and other charges. During the third quarter of 2019, we negotiated early termination of our Invisalign store leases and recorded lease termination gains of $6.8 million.

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2020
Legal Proceedings [Abstract]
Legal Proceedings	Legal Proceedings 2018 Securities Class Action Lawsuit On November 5, 2018, a class action lawsuit against Align and three of our executive officers was filed in the U.S. District Court for the Northern District of California on behalf of a purported class of purchasers of our common stock between July 25, 2018 and October 24, 2018. The complaint generally alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. On December 12, 2018, a similar lawsuit was filed in the same court on behalf of a purported class of purchasers of our common stock between April 25, 2018 and October 24, 2018. On November 29, 2019, the lead plaintiff filed an amended consolidated complaint against Align and two of our executive officers alleging similar claims as the initial complaints on behalf of a purported class of purchasers of our common stock from May 23, 2018 and October 24, 2018. On September 9, 2020, Defendants’ motion to dismiss the amended consolidated complaint was granted in part and denied in part. On September 24, 2020, the Court stayed the case until otherwise ordered to allow the parties time to pursue private mediation. Align believes these remaining claims are without merit and intends to vigorously defend itself. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 2019 Shareholder Derivative Lawsuit In January 2019, three derivative lawsuits were filed in the U.S. District Court for the Northern District of California which were later consolidated, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaints are similar to those asserted in the 2018 Securities Class Action Lawsuit, but the complaints assert various state law causes of action, including for breaches of fiduciary duty, insider trading, and unjust enrichment. The complaints seek unspecified monetary damages on behalf of Align, which is named solely as a nominal defendant against whom no recovery is sought, as well as disgorgement and the costs and expenses associated with the litigation, including attorneys’ fees. The consolidated action has been stayed pending final disposition of the 2018 Securities Class Action Lawsuit. On April 12, 2019, a derivative lawsuit was also filed in California Superior Court for Santa Clara County, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaint are similar to those in the derivative suits described above. The matter has been similarly stayed pending final disposition of the 2018 Securities Class Action Lawsuit. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss . 2020 Securities Class Action Lawsuit On March 2, 2020, a class action lawsuit against Align and two of our executive officers was filed in the U.S. District Court for the Southern District of New York (later transferred to the U.S. District Court for the Northern District of California) on behalf of a purported class of purchasers of our common stock between April 24, 2019 and July 24, 2019. The complaint alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. The lead plaintiff filed an amended complaint on August 4, 2020 against Align and three of our executive officers alleging similar claims as in the initial complaint on behalf of a purported class of purchasers of our common stock from April 25, 2019 to July 24, 2019. A motion to dismiss the amended complaint was filed on September 18, 2020. Align believes these claims are without merit and intends to vigorously defend itself. Align is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 2020 Shareholder Derivative Lawsuit On May 4, 2020, a derivative lawsuit was filed in the U.S. District Court for the Northern District of California, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaint are similar to those presented in the 2020 Securities Class Action Lawsuit, but this complaint asserts state law claims for breach of fiduciary duty and insider trading. The complaint seeks unspecified monetary damages on behalf of Align, which is named solely as a no minal defendant against whom no recovery is sought, as well as disgorgement and the costs and expenses associated with the litigation, including attorneys’ fees. This action has been stayed pending final disposition of the 2020 Securities Class Action Lawsuit. Align is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 3Shape Litigation On November 14, 2017, Align filed several patent infringement lawsuits asserting patents against 3Shape, a Danish corporation, and a related U.S. corporate entity, asserting that 3Shape’s Trios intraoral scanning system and Dental System software infringe Align patents. These lawsuits included four separate complaints in the U.S. District Court for the District of Delaware alleging patent infringement by 3Shape’s Trios intraoral scanning system and Dental System software. Three of the cases are active, and one was voluntarily dismissed by Align. Certain of Align’s asserted patents in the Delaware actions were found invalid by the District Court judge. On May 9, 2018, and June 14, 2018, 3Shape filed separate complaints in the U.S. District Court for the District of Delaware alleging patent infringement by Align’s iTero Element scanner of two 3Shape patents. On August 19, 2019, the Court consolidated the two actions, and on August 30, 2019, 3Shape filed an amended complaint alleging infringement of a third patent. In December 2018, Align filed three additional patent infringement lawsuits asserting 10 additional patents against 3Shape. On December 10, 2018, Align filed one Section 337 complaint with the ITC alleging that 3Shape violates U.S. trade laws by selling for importation and importing the infringing TRIOS intraoral scanning system, Trios Lab Scanners and TRIOS software, TRIOS Module software, Dental System software, and Ortho System Software. On April 30, 2020, an Administrative Law Judge (“ALJ”) issued an initial determination that 3Shape infringed on 7 of the 9 patent claims asserted by Align, found valid 6 of the 9 claims asserted by Align, and found a violation of Section 337 stemming from 3Shape’s infringement of 4 claims in 2 of Align’s asserted patents. The ALJ recommended an exclusion order and cease and desist order be entered against 3Shape’s unlawful importation. The Initial Determination is now subject to review by the Commissioners at the ITC. The current deadline for completing the investigation is November 2, 2020. In addition to the December 10, 2018 ITC Complaint, on December 11, 2018, Align filed two separate complaints in the U.S. District Court for the District of Delaware alleging patent infringement by 3Shape’s Trios intraoral scanning system, Lab Scanners and Dental and Ortho System Software. One of the District Court cases was stayed pending the parallel ITC investigation. The remaining District Court case is in the early stages of discovery and pretrial proceedings. On October 19, 2020, Align filed a complaint in the U.S. District Court for the Western District of Texas alleging patent infringement by 3Shape ’s intraoral scanners and associated software products. 3Shape has not yet responded to the complaint. 3Shape has sought to invalidate certain of Align’s patents through petitions for inter partes review proceedings. Align disputes 3Shape’s positions and intends to vigorously defend the validity of its patent rights. Each of the District Court patent infringement complaints seek monetary damages and/or injunctive relief against further infringement. Trial dates in the District Court cases are uncertain given the ongoing pandemic. On August 28, 2018, 3Shape filed a complaint against Align in the U.S. District Court for the District of Delaware alleging antitrust violations and seeking monetary damages and injunctive relief relating to Align’s alleged market activities, including Align’s assertion of its patent portfolio, in alleged clear aligner and intraoral scanning markets. After the Court dismissed 3Shape’s complaint with leave, 3Shape filed an amended complaint on October 28, 2019. On May 20, 2020, the Magistrate Judge recommended that Align’s motion to dismiss the amended complaint be denied. Align’s objection to the Magistrate Judge’s Report and Recommendation has been fully briefed to the District Court, and the parties are waiting for a ruling. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss, if any, nor estimate a range of possible loss. Simon & Simon On June 5, 2020, a dental practice named Simon and Simon, PC d/b/a City Smiles brought an antitrust action in the United States District Court for the Northern District of California on behalf of itself and a putative class of similarly situated practices seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanning markets. Prior to filing in the Northern District of California, on May 4, 2020, Plaintiff voluntarily dismissed a similar action in the U.S. District Court for the District of Delaware after the Magistrate Judge recommended that its complaint be dismissed. Plaintiff filed an amended complaint and added VIP Dental Spas as a plaintiff on August 14, 2020. On September 9, 2020, Align moved to dismiss Plaintiffs’ amended complaint. A lign believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. Align is currently unable to predi ct the outcome of this lawsuit and therefore cannot determine the likelihood of loss, if any, nor estimate a range of possible loss. SDC Dispute In April 2018, the SDC Financial LLC, SmileDirectClub LLC, and the Members of SDC Financial LLC other than the Company (collectively, the “SDC Entities”) initiated confidential arbitration proceedings against Align. During December 2018, the parties participated in binding arbitration proceedings and presented closing arguments on January 23, 2019. In an award dated March 4, 2019, (“Award”) an arbitrator found that Align breached a restrictive covenant and that Align misused the SDC Entities’ confidential information and violated fiduciary duties to SDC Financial LLC. As part of the Award, Align was enjoined from opening new Invisalign stores or providing certain services in physical retail establishments in connection with the marketing and sale of clear aligners, and enjoined from using the SDC Entities’ confidential information. The arbitrator extended the expiration date of specified aspects of the restrictive covenant to August 18, 2022. The arbitrator also ordered Align to tender its SDC Financial LLC membership interests to the SDC Entities for a purchase price equal to the “capital account” balance as of October 31, 2017, to be determined in accordance with the applicable provisions of the SDC Operating Agreements. No financial damages were awarded to the SDC Entities. The Circuit Court for Cook County, Illinois confirmed the Award on April 29, 2019. As required by the Award, Align tendered its membership interests for a purchase price that SDC claims to be Align’s “capital account” balance. Align disputes that the SDC Entities properly determined the value of Align’s “capital account” balance as of October 31, 2017 as required by the SDC Operating Agreements and the Award. Consequently, on July 3, 2019, Align filed a confidential demand for arbitration challenging the propriety of the SDC Entities’ determination. That arbitration proceeding remains pending and a hearing is currently expected to occur in December 2020. Relatedly, the SDC Entities filed a contempt petition with the Illinois court which confirmed the Award, asserting that Align had no right to contest the “capital account” determination as made by the SDC Entities. On September 4, 2019, the Illinois court denied in its entirety the contempt petition filed by the SDC Entities. The SDC Entities have appealed the denial of the contempt petition, and that appeal remains pending. On August 19, 2019, the SDC Entities filed a separate confidential arbitration proceeding alleging that Align has violated a restrictive covenant applicable to the members of the SDC Entities by virtue of Align’s alleged dealings with a third-party claimed to be a competitor of the SDC Entities. On April 27, 2020, the SDC Entities filed an amended arbitration demand, which additionally asserts that Align’s alleged dealings with a third-party constitute contempt of the Award. Align denies and intends to vigorously defend itself against all asserted allegations. On September 30, 2020, SDC announced that it was withdrawing its claim for damages in this arbitration proceeding, and that it would instead seek injunctive and equitable relief. That arbitration proceeding remains pending and a hearing is currently expected to occur in March 2021. On August 27, 2020, Align initiated a confidential arbitration proceeding against the SDC entities before the American Arbitration Association in San Jose, California. This arbitration relates to the Strategic Supply Agreement (“Supply Agreement”) entered into between the parties in 2016. The complaint states that the SDC Entities breached the Supply Agreement ’ s terms, causing damages to Align in an amount to be determined. Align is currently unable to predict the outcome of these disputes and therefore cannot determine the likelihood of loss or success nor estimate a range of possible loss or success, if any. In addition to the above, in the 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.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Summary of Stock-Based Compensation Expense As of September 30, 2020, the 2005 Incentive Plan (as amended) has a total reserve of 27,783,379 shares of which 4,617,148 shares are available for issuance. Stock-based compensation is based on the estimated fair value of awards, net of estimated forfeitures, and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and may be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation related to our stock-based awards and employee stock purchase plans for the three and nine months ended September 30, 2020 and 2019 is as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of net revenues $ 1,247 $ 1,354 $ 3,485 $ 3,744 Selling, general and administrative 19,951 19,394 58,284 54,321 Research and development 4,031 3,428 11,394 9,622 Total stock-based compensation $ 25,229 $ 24,176 $ 73,163 $ 67,687 Restricted Stock Units (“RSUs”) The fair value of RSUs is based on our closing stock price on the date of grant. A summary for the nine months ended September 30, 2020 is as follows: Number of Shares Underlying RSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Aggregate Intrinsic Value (in thousands) Unvested as of December 31, 2019 696 $ 190.60 Granted 298 266.07 Vested and released (308) 150.22 Forfeited (34) 233.59 Unvested as of September 30, 2020 652 $ 241.90 1.4 $ 213,410 As of September 30, 2020, we expect to recognize $113.4 million of total unamortized compensation cost, net of estimated forfeitures, related to RSUs over a weighted average period of 2.4 years. Market-performance Based Restricted Stock Units (“MSUs”) We grant MSUs to our executive officers. Each MSU represents the right to one share of Align’s common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of Align’s stock price relative to the performance of a stock market index over the vesting period, and certain MSU grants are also based on Align’s stock price at the end of the performance period. The maximum number of MSUs which will be eligible to vest range fr om 250% to 300% of the MSUs initially granted and the vesting period is three years. A summary for the nine months ended September 30, 2020 is as follows: Number of Shares Underlying MSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Unvested as of December 31, 2019 244 $ 331.35 Granted 156 242.04 Vested and released (173) 120.39 Unvested as of September 30, 2020 227 $ 430.50 1.4 $ 74,391 As of September 30, 2020, we expect to recognize $39.0 million of total unamortized compensation cost, net of estimated forfeitures, related to MSUs over a weighted average period of 1.4 years. Employee Stock Purchase Plan (“ESPP”) In May 2010, our stockholders approved the 2010 Employee Stock Purchase Plan (the “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 September 30, 2020, we have 325,665 shares available for future issuance. The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Expected term (in years) 1.0 1.5 1.0 1.4 Expected volatility 71.7 % 52.0 % 55.0 % 50.1 % Risk-free interest rate 0.1 % 1.8 % 0.9 % 2.2 % Expected dividends — — — — Weighted average fair value at grant date $ 117.32 $ 80.42 $ 96.94 $ 86.02 As of September 30, 2020, there was $4.9 million of total unamortized compensation costs related to employee stock purchases which we expect to be recognized over a weighted average period of 0.5 year.

Common Stock Repurchase Program

Common Stock Repurchase Programs	9 Months Ended
	Sep. 30, 2020
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Programs	Common Stock Repurchase Program In May 2018, we announced that our Board of Directors had authorized a plan to repurchase up to $600.0 million of our common stock (“May 2018 Repurchase Program”). In 2018, we repurchased on the open marke t approximately 0.1 million shares of our common stock at an average price of $356.54 per share, including commissions, for an aggregate purchase price of approximately $50.0 million. In 2018, we entered into an accelerated stock repurchase agreement (“ASR”) to repurchase $50.0 million of our common stock which was completed in December 2018. We received a total of approximately 0.2 million shares for an average share price of $213.18. In 2019, we repurchased on the open market approximately 0.8 million shares of our common stock at an average price of $264.93 per share, including commissions, for an aggregate purchase price of $200.0 million. We also entered into an ASR to repurchase $200.0 million of our common stock which was completed in September 2019. We received a total of 1.1 million shares for an average share price of $176.61. As of September 30, 2020, we have $100.0 million available for repurchase under the May 2018 Repurchase Program.

Accounting for Income Taxes

Accounting for Income Taxes	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes During the nine months ended September 30, 2020, we completed an intra-entity transfer of certain intellectual property rights and fixed assets to our Swiss subsidiary, where our Europe, Middle East and Africa ( “EMEA”) regional headquarters is located beginning January 1, 2020. The transfer of intellectual property rights did not result in a taxable gain; however, it did result in a step-up of the Swiss tax deductible basis in the transferred assets, and accordingly, created a temporary difference between the book basis and the tax basis of such intellectual property rights. Consequently, this transaction resulted in the recognition of a deferred tax asset and related one-time tax benefit of approximately $1,493.5 million during the nine months ended September 30, 2020, which is the net impact of the deferred tax asset recognized as a result of the additional Swiss tax deductible basis in the transferred assets and certain costs related to the transfer of fixed assets and inventory. Our provision for income t axes was $45.2 million and $25.9 million for the three months ended September 30, 2020 and 2019, representing effective tax rates of 24.5% and 20.2%, respectively. O ur benefit from income taxes was $1,452.5 million for the nine months ended September 30, 2020 and our provision for income taxes was $77.8 million for the nine months ended September 30, 2019, representing effective tax rates of (883.5)% and 19.1%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended September 30, 2020 primarily due to the recognition of additional tax expense resulting from state tax and non-deductible expenses in the U.S., partially offset by the recognition of a tax benefit for the release of certain unrecognized tax benefits following the settlement of an Internal Revenue Service ( “ IRS ” ) income tax audit for years 2015 and 2016. Our effective tax rate differs from the statutory federal income tax rate of 21% for the nine months ended September 30, 2020 mainly as a result of the recognition of tax benefits related to the intra-entity transfer of certain intellectual property rights and fixed assets mentioned above. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three and nine months ended September 30, 2019 mainly as a result of certain foreign earnings, primarily from the Netherlands and Costa Rica, being taxed at lower tax rates and the recognition of excess tax benefits related to stock-based compensation, partially offset by non-deductible officers ’ compensation . The increase in our effective tax rate for the three months ended September 30, 2020 compared to the same period in 2019 is primarily attributable to reduced tax benefit of certain foreign earnings being taxed at lower tax rates and tax benefits recorded last year related to certain statute of limitations expirations and adjustments for prior years that did not recur in 2020, offset in part by a tax benefit recorded this quarter for the release of certain unrecognized tax benefits following the settlement of an IRS income tax audit for years 2015 and 2016. The decrease in our effective tax rate for the nine months ended September 30, 2020 compared to the same period in 2019 is primarily attributable to the recognition of a deferred tax asset related to the intra-entity transfer of certain intellectual property rights during the nine months ended September 30, 2020. We exercise significant judgment in regards to estimates of future market growth, forecasted earnings and projected taxable income in determining the provision for income taxes and for purposes of assessing our ability to utilize any future benefit from deferred tax assets. We continue to assess the realizability of the deferred tax assets as we take into account new information. We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions include U.S. federal, the State of California and Switzerland. We are no longer subject to U.S. federal tax examination for years before 2017 and U.S. state tax examination for years before 2015. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2013. Our total gross unrecognized tax benefits, excluding interest and penalties, were $47.0 million and $46.7 million as of September 30, 2020 and December 31, 2019, respectively, a material amount of which would impact our effective tax rate if recognized. Total interest and penalties accrued as of September 30, 2020 was not material. We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income taxes. The timing and resolution of income tax examinations is uncertain, and the amounts ultimately paid, if any, upon resolution of issues raised by the taxing authorities may differ materially from the amounts accrued for each year. During the three months ended September 30, 2020, we recognized $8.7 million of previously unrecognized tax benefits through our effective tax rate due to the settlement of the IRS audit for tax years 2015 and 2016. We do not anticipate the total unrecognized tax benefits will change significantly within the next 12 months due to settlement of audits nor expiration of statutes of limitations. Our total deferred tax liabilities were $36.8 million as of September 30, 2020, which were primarily related to the intangible assets from our exocad acquisition. Our deferred tax liabilities as of December 31, 2019 were not material. As of December 31, 2019, undistributed earnings of our foreign subsidiaries totaled $452.6 million and substantially all of the earnings previously determined to be not indefinitely reinvested have been repatriated. Under the Global Intangible Low-Taxed Income provisions of the Tax Cuts and Jobs Act, U.S. income taxes have already been provided on the undistributed earnings that is indefinitely reinvested in our international operations; therefore, the tax impact upon distribution is limited to mainly state income and withholding taxes and is not significant.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income Per Share	Net Income per Share Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes RSUs, MSUs and our ESPP. The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Numerator: Net income $ 139,371 $ 102,524 $ 1,616,900 $ 321,514 Denominator: Weighted average common shares outstanding, basic 78,824 79,332 78,729 79,709 Dilutive effect of potential common stock 339 493 349 688 Total shares, diluted 79,163 79,825 79,078 80,397 Net income per share, basic $ 1.77 $ 1.29 $ 20.54 $ 4.03 Net income per share, diluted $ 1.76 $ 1.28 $ 20.45 $ 4.00 Anti-dilutive potential common shares 1 65 398 66 25 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2020
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The supplemental cash flow information consists of the following (in thousands): Nine Months Ended 2020 2019 Non-cash investing and financing activities: Fixed assets acquired with accounts payable or accrued liabilities $ 43,147 $ 14,331 Issuance of promissory note in exchange for sale of equity method investment $ — $ 54,154 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,384 $ 21,186 Investing cash flows from finance leases 1 $ — $ 10,896 Financing cash flows from finance leases $ — $ 45,773 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 44,915 $ 26,395 Finance leases $ — $ 51,064

Segments and Geographical Infor

Segments and Geographical Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
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, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, and other separately managed general and administrative costs outside the operating segments. We group our operations into two reportable segments: Clear Aligner segment and Imaging Systems and CAD/CAM services ("Systems and Services") segment. The Systems and Services segment was formerly known as the Scanner and Services segment prior to our acquisition of exocad on April 1, 2020 (Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details on the exocad acquisition). • Our Clear Aligner segment consists of Comprehensive Products, Non-Comprehensive Products and Non-Case revenues as defined below: ▪ Comprehensive Products include, but are not limited to, Invisalign Comprehensive and Invisalign First. ▪ Non-Comprehensive Products include, but are not limited to, Invisalign Moderate, Lite and Express packages and Invisalign Go. ▪ Non-Case includes, but not limited to, Vivera retainers along with our training and ancillary products for treating malocclusion. • Our Systems and Services segment consists of our iTero intraoral scanning systems, which includes a single hardware platform and restorative or orthodontic software options, OrthoCAD services and ancillary products, as well as exocad ’ s CAD/CAM software solution that integrates workflows to dental labs and dental practices. 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): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenues Clear Aligner $ 620,764 $ 516,265 $ 1,400,716 $ 1,482,172 Systems and Services 113,380 91,076 236,705 274,837 Total net revenues $ 734,144 $ 607,341 $ 1,637,421 $ 1,757,009 Gross profit Clear Aligner $ 463,747 $ 379,202 $ 1,007,605 $ 1,096,702 Systems and Services 70,341 58,352 145,167 175,237 Total gross profit $ 534,088 $ 437,554 $ 1,152,772 $ 1,271,939 Income from operations Clear Aligner $ 261,774 $ 211,952 $ 467,078 $ 614,622 Systems and Services 34,912 32,760 52,194 100,286 Unallocated corporate expenses (119,617) (117,560) (345,285) (323,565) Total income from operations $ 177,069 $ 127,152 $ 173,987 $ 391,343 Depreciation and amortization Clear Aligner $ 10,413 $ 9,306 $ 30,231 $ 27,851 Systems and Services 5,092 1,987 11,882 5,349 Unallocated corporate expenses 8,981 8,413 26,656 23,994 Total depreciation and amortization $ 24,486 $ 19,706 $ 68,769 $ 57,194 Impairments and other (gains) charges Clear Aligner $ — $ (6,792) $ — $ 22,990 Total impairments and other (gains) charges $ — $ (6,792) $ — $ 22,990 Litigation settlement gain Clear Aligner $ — $ — $ — $ (51,000) Total litigation settlement gain $ — $ — $ — $ (51,000) The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes and equity losses of investee (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total segment income from operations $ 296,686 $ 244,712 $ 519,272 $ 714,908 Unallocated corporate expenses (119,617) (117,560) (345,285) (323,565) Total income from operations 177,069 127,152 173,987 391,343 Interest income 329 3,478 2,788 9,576 Other income (expense), net 7,147 (2,211) (12,368) 5,935 Net income before provision for (benefit from) income taxes and equity in losses of investee $ 184,545 $ 128,419 $ 164,407 $ 406,854 Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenues 1 : United States $ 332,414 $ 286,050 $ 744,978 $ 861,710 Switzerland 2 219,910 — 512,681 — The Netherlands 2 — 173,926 — 540,858 China 76,825 63,636 142,927 151,075 Other International 104,995 83,729 236,835 203,366 Total net revenues $ 734,144 $ 607,341 $ 1,637,421 $ 1,757,009 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. 2 During the first quarter of 2020, we implemented a new international corporate structure. This changed the structure of our international procurement and sales operations from the Netherlands to Switzerland. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): September 30, December 31, 2019 Long-lived assets 1 : Switzerland 2 $ 241,782 $ 7,755 United States 178,767 164,451 China 107,042 73,174 Costa Rica 99,000 82,083 The Netherlands 2 855 226,286 Other International 159,597 134,225 Total long-lived assets $ 787,043 $ 687,974 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets. 2 As a result of the new international corporate structure changes, most of the long-lived assets were transferred from our Netherlands entity to our Switzerland entity during the first quarter of 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Basis of presentation	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, or “Align”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and contains all adjustments, including normal recurring adjustments, necessary to state fairly our results of operations for the three and nine months ended September 30, 2020 and 2019, our comprehensive income for the three and nine months ended September 30, 2020 and 2019, our financial position as of September 30, 2020, our stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and our cash flows for the nine months ended September 30, 2020 and 2019. The Condensed Consolidated Balance Sheet as of December 31, 2019 was derived from the December 31, 2019 audited financial statements. It does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”). The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 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 the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019.
Use of estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes and contingent liabilities, the fair values of financial instruments, stock-based compensation, unsecured promissory note receivable, and valuation of investments in privately held companies among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Business Combinations	Business Combinations We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. When determining the fair value of assets acquired and liabilities assumed, management is required to make certain estimates and assumptions, especially with respect to intangible assets. The estimates and assumptions used in valuing intangible assets include, but are not limited to, the amount and timing of projected future cash flows, the discount rate used to determine the present value of these cash flows, and the determination of the assets’ life cycle. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available.
Revenue Recognition	Revenue Recognition - Systems and Services We sell intraoral scanners and computer-aided design/computer-aided manufacturing (“CAD/CAM”) services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/
Credit Risks and Uncertainties	Certain Risks and Uncertainties Due to the COVID-19 pandemic, we are subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply our significant accounting policies. As the COVID-19 pandemic continues to be a global issue, we may make changes to these estimates and judgments, which could result in meaningful impacts to our financial statements in future periods. The extent and duration of the impact of the COVID-19 pandemic on our business is highly uncertain and difficult to predict and the response to the pandemic is rapidly evolving. The severity of the impact of the COVID-19 pandemic on our business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on our customers, all of which are uncertain and cannot be predicted. Our future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions or limitations, changes in manufacturing efficiency and capacity constraints caused by uneven or rapid changes in demand, and the impact of any initiatives or programs that we may undertake to address financial and operations challenges faced by us or our customers. Additionally, the uncertainty of future results and cash flows may impact our significant assumptions and estimates including the collectability of accounts and other receivables and realization of our deferred tax assets. The extent to which the COVID-19 pandemic may continue to materially impact our financial condition, liquidity, or results of operations is uncertain for all of the foregoing reasons stated above and many others directly and indirectly related to the virus and efforts to contain its spread.
Recent Accounting Pronouncements	Recent Accounting Pronouncements (i) New Accounting Updates Recently Adopted In June 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued ASU 2016-13, “Financial Instruments - Credit Losses” (Topic 326) to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this update replace the existing guidance of incurred loss impairment methodology with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses ” which clarifies the scope of guidance in the ASU 2016-13 . The updated guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this standard in the first quarter of fiscal year 2020 which did not have a material impact on our condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, ” to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the amendments in this update, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis. We adopted this standard in the first quarter of fiscal year 2020 which did not have any impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” to modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis. We adopted this standard in the first quarter of fiscal year 2020 which did not have any impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” to clarify the guidance on the costs of implementing a cloud computing hosting arrangement that is a service contract. Under the amendments in this update, the entity is required to follow the guidance in Subtopic 350-40, Internal-Use Software , to determine which implementation costs under the service contract to be capitalized as an asset and which costs to expense. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2019 either on a retrospective or prospective basis. We adopted this standard in the first quarter of fiscal year 2020 on a prospective basis which did not have any impact on our condensed consolidated financial statements and related disclosures. (ii) Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes, ” to enhance and simplify various aspects of the income tax accounting guidance. The amendment removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. We are currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures; however, we anticipate the adoption of the guidance will not have a material impact to our consolidated financial statements and related disclosures.

Investments and Fair Value Me_2

Investments and Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Short-Term And Long-Term Marketable Securities	As of December 31, 2019, the estimated fair value of our short-term marketable securities, classified as available for sale, are as follows (in thousands): December 31, 2019 Amortized Gross Gross Fair Value Corporate bonds $ 210,891 $ 142 $ (27) $ 211,006 U.S. government treasury bonds 70,587 65 (2) 70,650 U.S. government agency bonds 22,085 17 (1) 22,101 Commercial paper 14,426 — — 14,426 Certificates of deposit 19 — — 19 Total marketable securities, short-term $ 318,008 $ 224 $ (30) $ 318,202
Investments Classified by Contractual Maturity Date	As the carrying value approximates the fair value for our short-term marketable securities shown in the table above, the fair value of our short-term marketable securities as of December 31, 2019 had a contractual maturity one year or less.
Financial Assets Measured At Fair Value On Recurring Basis	The following tables summarize our financial assets measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 285,228 $ 285,228 $ — $ — Prepaid expenses and other current assets: Israeli funds 3,399 — 3,399 — Current unsecured promissory note 14,505 — — 14,505 $ 303,132 $ 285,228 $ 3,399 $ 14,505 Description Balance as of December 31, 2019 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 236,923 $ 236,923 $ — $ — Short-term investments: Corporate bonds 211,006 — 211,006 — Commercial paper 14,426 — 14,426 — U.S. government treasury bonds 70,650 70,650 — — U.S. government agency bonds 22,101 — 22,101 — Certificates of deposit 19 — 19 — Prepaid expenses and other current assets: Israeli funds 3,226 — 3,226 — Current unsecured promissory note 25,005 — — 25,005 Other assets: Long-term unsecured promissory note 7,328 — — 7,328 $ 590,684 $ 307,573 $ 250,778 $ 32,333
Notional value of derivative instruments	The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Local Currency Amount Notional Contract Amount (USD) Chinese Yuan ¥1,075,000 $ 158,198 Euro €127,000 148,852 Canadian Dollar C$77,000 57,570 British Pound £29,200 37,524 Japanese Yen ¥3,385,000 32,042 Brazilian Real R$112,500 19,899 Israeli Shekel ILS53,000 15,441 Mexican Peso M$140,000 6,266 Australian Dollar A$6,900 4,925 Swiss Franc CHF4,000 4,343 $ 485,060 December 31, 2019 Local Currency Amount Notional Contract Amount (USD) Euro €97,000 $ 108,870 Chinese Yuan ¥431,000 60,702 Canadian Dollar C$52,000 39,802 British Pound £28,000 36,770 Brazilian Real R$130,000 32,185 Japanese Yen ¥3,000,000 27,604 Israeli Shekel ILS63,700 18,439 Mexican Peso M$140,000 7,398 Australian Dollar A$3,000 2,101 $ 333,871

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 70,659 $ 54,947 Work in process 26,167 30,974 Finished goods 26,267 26,130 Total inventories $ 123,093 $ 112,051
Schedule of Prepaid Expense and Other Assets	Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, Tax related receivables $ 55,162 $ 41,252 Current promissory note and related interest receivable 1 14,552 25,005 Prepaid software and maintenance 13,598 7,128 Others 25,264 29,065 Total prepaid expenses and other current assets $ 108,576 $ 102,450 1 Refer to Note 6“Equity Method Investments” of the Notes to Condensed Consolidated Financial Statements for more information.
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and benefits $ 126,112 $ 162,486 Accrued expenses 63,117 55,529 Accrued property, plant and equipment 25,597 9,167 Current operating lease liabilities 20,674 15,737 Accrued professional fees 19,112 10,410 Accrued income taxes 15,539 14,130 Others 48,320 52,499 Total accrued liabilities $ 318,471 $ 319,958
Schedule of Warranty Accrual	We regularly review the balance for accrued warranty and update 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. We also warrant our CAD/CAM software for a one year period to perform in accordance with agreed product specifications. As we have not historically incurred any material warranty costs, we do not accrue for these software warranties. Warranty accrual consists of the following activity (in thousands): Nine Months Ended 2020 2019 Balance at beginning of period $ 11,205 $ 8,551 Charged to cost of net revenues 8,047 9,429 Actual warranty expenditures (8,229) (7,178) Balance at end of period $ 11,023 $ 10,802
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): September 30, December 31, Deferred revenues - current $ 684,139 $ 563,762 Deferred revenues - long-term 1 $ 46,986 $ 35,503 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Purchase Price Consideration	The total purchase consideration consisted of the following (in thousands): Cash paid to exocad stockholders $ 412,287 Cash paid to settle exocad’s bank debt 17,691 Total purchase consideration paid $ 429,978
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed	The preliminary allocation of purchase price to assets acquired and liabilities assumed which is subject to change within the measurement period is as follows (in thousands): Goodwill $ 340,181 Identified intangible assets 118,700 Cash and cash equivalents 9,190 Deferred tax liabilities (35,419) Other assets (liabilities), net (2,674) Total $ 429,978
Identified Intangible Assets Acquired	The following table presents details of the identified intangible assets acquired (in thousands, except years): Weighted Average Amortization Period (in years) Fair Value Intangible assets subject to amortization: Existing technology 10 $ 87,000 Customer relationships 10 21,500 Tradenames 7 9,800 Intangible assets not subject to amortization: In-process Research and Development (“IPR&D”) N/A 400 Total intangible assets $ 118,700

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Notes To Financial Statements [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the nine months ended September 30, 2020, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2019 $ 63,924 $ — $ 63,924 Additions from exocad acquisition 1 43,500 296,681 340,181 Adjustments 2 2,695 20,542 23,237 Balance as of September 30, 2020 $ 110,119 $ 317,223 $ 427,342 1 Includes goodwill adjustments within the measurement period (up to one year from acquisition date). Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details. 2 Adjustments related to foreign currency translation within the measurement period
Schedule of Amortized Intangible Assets	Acquired intangible long-lived assets are being amortized as follows (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of September 30, 2020 Accumulated Amortization Accumulated Impairment Loss Net Carrying Trademarks and tradenames 10 $ 16,900 $ (2,849) $ (4,179) $ 9,872 Existing technology 10 99,600 (10,603) (4,328) 84,669 Customer relationships 11 55,000 (20,876) (10,751) 23,373 Other 1 5 14,913 (11,885) — 3,028 $ 186,413 $ (46,213) $ (19,258) 120,942 Foreign currency translation 7,662 Total intangible assets 2 $ 128,604 1 Includes reacquired rights, patents and other intangible assets 2 Refer to Note 4 "Business Combination" of the Notes to Condensed Consolidated Financial Statements for additional details on intangible assets from our exocad acquisition. Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Trademarks 15 $ 7,100 $ (2,045) $ (4,179) $ 876 Existing technology 13 12,600 (5,831) (4,328) 2,441 Customer relationships 11 33,500 (18,405) (10,751) 4,344 Reacquired rights 3 7,500 (7,059) — 441 Patents 8 6,796 (3,165) — 3,631 Other 2 618 (583) — 35 Total intangible assets $ 68,114 $ (37,088) $ (19,258) $ 11,768
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2020 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2020 $ 3,907 2021 15,622 2022 14,366 2023 13,745 2024 12,805 Thereafter 60,497 Total $ 120,942

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Stock-based Compensation Expense	The stock-based compensation related to our stock-based awards and employee stock purchase plans for the three and nine months ended September 30, 2020 and 2019 is as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of net revenues $ 1,247 $ 1,354 $ 3,485 $ 3,744 Selling, general and administrative 19,951 19,394 58,284 54,321 Research and development 4,031 3,428 11,394 9,622 Total stock-based compensation $ 25,229 $ 24,176 $ 73,163 $ 67,687
Summary Of Restricted Stock Units	A summary for the nine months ended September 30, 2020 is as follows: Number of Shares Underlying RSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Aggregate Intrinsic Value (in thousands) Unvested as of December 31, 2019 696 $ 190.60 Granted 298 266.07 Vested and released (308) 150.22 Forfeited (34) 233.59 Unvested as of September 30, 2020 652 $ 241.90 1.4 $ 213,410
Summary Of Market-performance Based Restricted Stock Units	A summary for the nine months ended September 30, 2020 is as follows: Number of Shares Underlying MSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Unvested as of December 31, 2019 244 $ 331.35 Granted 156 242.04 Vested and released (173) 120.39 Unvested as of September 30, 2020 227 $ 430.50 1.4 $ 74,391
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Expected term (in years) 1.0 1.5 1.0 1.4 Expected volatility 71.7 % 52.0 % 55.0 % 50.1 % Risk-free interest rate 0.1 % 1.8 % 0.9 % 2.2 % Expected dividends — — — — Weighted average fair value at grant date $ 117.32 $ 80.42 $ 96.94 $ 86.02

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share Basic And Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Numerator: Net income $ 139,371 $ 102,524 $ 1,616,900 $ 321,514 Denominator: Weighted average common shares outstanding, basic 78,824 79,332 78,729 79,709 Dilutive effect of potential common stock 339 493 349 688 Total shares, diluted 79,163 79,825 79,078 80,397 Net income per share, basic $ 1.77 $ 1.29 $ 20.54 $ 4.03 Net income per share, diluted $ 1.76 $ 1.28 $ 20.45 $ 4.00 Anti-dilutive potential common shares 1 65 398 66 25 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2020
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Nine Months Ended 2020 2019 Non-cash investing and financing activities: Fixed assets acquired with accounts payable or accrued liabilities $ 43,147 $ 14,331 Issuance of promissory note in exchange for sale of equity method investment $ — $ 54,154 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,384 $ 21,186 Investing cash flows from finance leases 1 $ — $ 10,896 Financing cash flows from finance leases $ — $ 45,773 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 44,915 $ 26,395 Finance leases $ — $ 51,064 1 A portion of finance lease purchase payment relates to leasing a part of the building to a third party as a lessor. This amount is included in Other Investing Activities in our Condensed Consolidated Statements of Cash Flows.

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	These reportable operating segments are based on how our CODM views and evaluates our operations as well as allocation of resources. The following information relates to these segments (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenues Clear Aligner $ 620,764 $ 516,265 $ 1,400,716 $ 1,482,172 Systems and Services 113,380 91,076 236,705 274,837 Total net revenues $ 734,144 $ 607,341 $ 1,637,421 $ 1,757,009 Gross profit Clear Aligner $ 463,747 $ 379,202 $ 1,007,605 $ 1,096,702 Systems and Services 70,341 58,352 145,167 175,237 Total gross profit $ 534,088 $ 437,554 $ 1,152,772 $ 1,271,939 Income from operations Clear Aligner $ 261,774 $ 211,952 $ 467,078 $ 614,622 Systems and Services 34,912 32,760 52,194 100,286 Unallocated corporate expenses (119,617) (117,560) (345,285) (323,565) Total income from operations $ 177,069 $ 127,152 $ 173,987 $ 391,343 Depreciation and amortization Clear Aligner $ 10,413 $ 9,306 $ 30,231 $ 27,851 Systems and Services 5,092 1,987 11,882 5,349 Unallocated corporate expenses 8,981 8,413 26,656 23,994 Total depreciation and amortization $ 24,486 $ 19,706 $ 68,769 $ 57,194 Impairments and other (gains) charges Clear Aligner $ — $ (6,792) $ — $ 22,990 Total impairments and other (gains) charges $ — $ (6,792) $ — $ 22,990 Litigation settlement gain Clear Aligner $ — $ — $ — $ (51,000) Total litigation settlement gain $ — $ — $ — $ (51,000) The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes and equity losses of investee (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total segment income from operations $ 296,686 $ 244,712 $ 519,272 $ 714,908 Unallocated corporate expenses (119,617) (117,560) (345,285) (323,565) Total income from operations 177,069 127,152 173,987 391,343 Interest income 329 3,478 2,788 9,576 Other income (expense), net 7,147 (2,211) (12,368) 5,935 Net income before provision for (benefit from) income taxes and equity in losses of investee $ 184,545 $ 128,419 $ 164,407 $ 406,854
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	Net revenues are presented below by geographic area (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net revenues 1 : United States $ 332,414 $ 286,050 $ 744,978 $ 861,710 Switzerland 2 219,910 — 512,681 — The Netherlands 2 — 173,926 — 540,858 China 76,825 63,636 142,927 151,075 Other International 104,995 83,729 236,835 203,366 Total net revenues $ 734,144 $ 607,341 $ 1,637,421 $ 1,757,009 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. 2 During the first quarter of 2020, we implemented a new international corporate structure. This changed the structure of our international procurement and sales operations from the Netherlands to Switzerland. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): September 30, December 31, 2019 Long-lived assets 1 : Switzerland 2 $ 241,782 $ 7,755 United States 178,767 164,451 China 107,042 73,174 Costa Rica 99,000 82,083 The Netherlands 2 855 226,286 Other International 159,597 134,225 Total long-lived assets $ 787,043 $ 687,974 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

Investments and Fair Value Me_3

Investments and Fair Value Measurements Short-Term and Long-Term Marketable Securities (Details) - Fair Value, Measurements, Recurring - Short-term Investments $ in Thousands	Dec. 31, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 318,008
Gross Unrealized Gains	224
Gross Unrealized Losses	(30)
Fair Value	318,202
Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	210,891
Gross Unrealized Gains	142
Gross Unrealized Losses	(27)
Fair Value	211,006
U.S. government treasury bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	70,587
Gross Unrealized Gains	65
Gross Unrealized Losses	(2)
Fair Value	70,650
U.S. government agency bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,085
Gross Unrealized Gains	17
Gross Unrealized Losses	(1)
Fair Value	22,101
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,426
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	14,426
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	19
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	$ 19

Investments and Fair Value Me_4

Investments and Fair Value Measurements Additional Information (Details) $ in Thousands	Dec. 31, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020EUR (€)	Apr. 30, 2019USD ($)
Derivative [Line Items]
Original maturity of highly liquid investments included in cash and cash equivalents				40 months
Weighted average maturity	7 months
Equity Securities without Readily Determinable Fair Value, Amount	$ 5,900	$ 2,100		$ 2,100
Impairments on equity investments				3,787	$ 3,975
Derivative gains (losses)		$ (12,100)	$ 10,100	600	$ 10,500
SDC | Notes Receivable
Derivative [Line Items]
Accounts and Financing Receivable, after Allowance for Credit Loss							$ 54,200
exocad Acquisition
Derivative [Line Items]
Derivative gains (losses)				$ (10,200)
Forward Contracts | exocad Acquisition
Derivative [Line Items]
Notional amount | €						€ 376,000,000

Investments and Fair Value Me_5

Investments and Fair Value Measurements Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:	$ 0	$ 318,202
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	303,132	590,684
Fair Value, Measurements, Recurring | Cash Equivalents | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents:	285,228	236,923
Fair Value, Measurements, Recurring | Short-term Investments | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		211,006
Fair Value, Measurements, Recurring | Short-term Investments | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		14,426
Fair Value, Measurements, Recurring | Short-term Investments | U.S. government treasury bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		70,650
Fair Value, Measurements, Recurring | Short-term Investments | U.S. government agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		22,101
Fair Value, Measurements, Recurring | Short-term Investments | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		19
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets: | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:	14,505	25,005
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets: | Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds	3,399	3,226
Fair Value, Measurements, Recurring | Other Assets | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:		7,328
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	285,228	307,573
Fair Value, Measurements, Recurring | Level 1 | Cash Equivalents | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents:	285,228	236,923
Fair Value, Measurements, Recurring | Level 1 | Short-term Investments | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 1 | Short-term Investments | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 1 | Short-term Investments | U.S. government treasury bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		70,650
Fair Value, Measurements, Recurring | Level 1 | Short-term Investments | U.S. government agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 1 | Short-term Investments | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets: | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:	0	0
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets: | Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds	0	0
Fair Value, Measurements, Recurring | Level 1 | Other Assets | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:		0
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	3,399	250,778
Fair Value, Measurements, Recurring | 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 | Level 2 | Short-term Investments | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		211,006
Fair Value, Measurements, Recurring | Level 2 | Short-term Investments | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		14,426
Fair Value, Measurements, Recurring | Level 2 | Short-term Investments | U.S. government treasury bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 2 | Short-term Investments | U.S. government agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		22,101
Fair Value, Measurements, Recurring | Level 2 | Short-term Investments | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		19
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets: | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:	0	0
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets: | Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds	3,399	3,226
Fair Value, Measurements, Recurring | Level 2 | Other Assets | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:		0
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets, Fair Value Disclosure	14,505	32,333
Fair Value, Measurements, Recurring | Level 3 | Cash Equivalents | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents:	0	0
Fair Value, Measurements, Recurring | Level 3 | Short-term Investments | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 3 | Short-term Investments | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 3 | Short-term Investments | U.S. government treasury bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 3 | Short-term Investments | U.S. government agency bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 3 | Short-term Investments | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments:		0
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets: | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:	14,505	25,005
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets: | Israeli Severance Funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds	$ 0	0
Fair Value, Measurements, Recurring | Level 3 | Other Assets | Current unsecured promissory note
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Other assets:		$ 7,328

Investments and Fair Value Me_6

Investments and Fair Value Measurements Derivative Notional Instruments (Details) - Level 2 - Other current assets - Foreign Exchange Forward € in Thousands, ₪ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Sep. 30, 2020CNY (¥)

Sep. 30, 2020USD ($)

Sep. 30, 2020EUR (€)

Sep. 30, 2020CAD ($)

Sep. 30, 2020GBP (£)

Sep. 30, 2020JPY (¥)

Sep. 30, 2020BRL (R$)

Sep. 30, 2020ILS (₪)

Sep. 30, 2020MXN ($)

Sep. 30, 2020AUD ($)

Sep. 30, 2020CHF (SFr)

Dec. 31, 2019CNY (¥)

Dec. 31, 2019USD ($)

Dec. 31, 2019EUR (€)

Dec. 31, 2019CAD ($)

Dec. 31, 2019GBP (£)

Dec. 31, 2019JPY (¥)

Dec. 31, 2019BRL (R$)

Dec. 31, 2019ILS (₪)

Dec. 31, 2019MXN ($)

Dec. 31, 2019AUD ($)

Derivative [Line Items]

Notional amount

$ 485,060

$ 333,871

Euro Member Countries, Euro

Derivative [Line Items]

Notional amount

148,852

€ 127,000

108,870

€ 97,000

Euro

Derivative [Line Items]

Notional amount

¥ 1,075,000

158,198

¥ 431,000

60,702

British Pound

Derivative [Line Items]

Notional amount

15,441

₪ 53,000

18,439

₪ 63,700

Japanese Yen

Derivative [Line Items]

Notional amount

37,524

£ 29,200

36,770

£ 28,000

Brazilian Real

Derivative [Line Items]

Notional amount

57,570

$ 77,000

39,802

$ 52,000

Israeli Shekel

Derivative [Line Items]

Notional amount

19,899

R$ 112500

32,185

R$ 130000

Brazilian Real

Derivative [Line Items]

Notional amount

32,042

¥ 3,385,000

27,604

¥ 3,000,000

Mexican Peso

Derivative [Line Items]

Notional amount

6,266

$ 140,000

7,398

$ 140,000

Swiss Franc

Derivative [Line Items]

Notional amount

4,925

$ 6,900

$ 2,101

$ 3,000

Switzerland, Francs

Derivative [Line Items]

Notional amount

$ 4,343

SFr 4,000

Balance Sheet Components Invent

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Notes To Financial Statements [Abstract]
Raw materials	$ 70,659	$ 54,947
Work in process	26,167	30,974
Finished goods	26,267	26,130
Total inventories	$ 123,093	$ 112,051

Balance Sheet Components Prepai

Balance Sheet Components Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Notes To Financial Statements [Abstract]
Tax related receivables	$ 55,162	$ 41,252
Current promissory note and related interest receivable	13,598	7,128
Current promissory note	14,552	25,005
Other current receivables	25,264	29,065
Total prepaid expenses and other current assets	$ 108,576	$ 102,450

Balance Sheet Components Accrue

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 126,112	$ 162,486
Accrued expenses	63,117	55,529
Accrued property, plant and equipment	25,597	9,167
Accrued property, plant and equipment	20,674	15,737
Current operating lease liabilities	19,112	10,410
Accrued Income Taxes, Current	15,539	14,130
Accrued income taxes	11,023	11,205	$ 10,802	$ 8,551
Others	48,320	52,499
Accrued liabilities	$ 318,471	$ 319,958

Balance Sheet Components Warran

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 11,205	$ 8,551
Charged to cost of net revenues	8,047	9,429
Actual warranty expenditures	(8,229)	(7,178)
Balance at end of period	$ 11,023	$ 10,802

Balance Sheet Components Deferr

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 684,139		$ 684,139		$ 563,762
Deferred revenues - long-term	46,986		46,986		$ 35,503
Deferred revenues	$ 99,600	$ 70,100	$ 263,300	$ 207,000

Balance Sheet Components Narrat

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 734,144	$ 607,341	$ 1,637,421	$ 1,757,009
Deferred revenues	99,600	$ 70,100	263,300	$ 207,000
Revenue, remaining performance obligation	$ 744,700		$ 744,700
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year		1 year
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	5 years		5 years

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Apr. 01, 2020	Sep. 30, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill		$ 427,342	$ 63,924
Systems and Services
Business Acquisition [Line Items]
Goodwill		317,223	0
Clear Aligner
Business Acquisition [Line Items]
Goodwill		$ 110,119	$ 63,924
exocad Acquisition
Business Acquisition [Line Items]
Cash paid to exocad stockholders	$ 412,287
Cash paid to settle exocad’s bank debt	17,691
Total purchase consideration paid	429,978
Goodwill	340,181
Identified intangible assets	118,700
Cash and cash equivalents	9,190
Deferred tax liabilities	(35,419)
Other assets (liabilities), net	(2,674)
Total	429,978
Intangible assets subject to amortization	118,700
Total intangible assets	118,700
exocad Acquisition | In Process Research and Development
Business Acquisition [Line Items]
Intangible assets not subject to amortization	400
exocad Acquisition | Existing technology
Business Acquisition [Line Items]
Identified intangible assets	$ 87,000
Weighted average amortization period	10 years
Intangible assets subject to amortization	$ 87,000
exocad Acquisition | Customer relationships
Business Acquisition [Line Items]
Identified intangible assets	$ 21,500
Weighted average amortization period	10 years
Intangible assets subject to amortization	$ 21,500
exocad Acquisition | Trade Names
Business Acquisition [Line Items]
Identified intangible assets	$ 9,800
Weighted average amortization period	7 years
Intangible assets subject to amortization	$ 9,800
exocad Acquisition | Systems and Services
Business Acquisition [Line Items]
Goodwill	296,700
exocad Acquisition | Clear Aligner
Business Acquisition [Line Items]
Goodwill	$ 43,500

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2019	$ 63,924
Additions from exocad acquisition	340,181
Adjustments	23,237
Balance as of September 30, 2020	427,342
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2019	63,924
Additions from exocad acquisition	43,500
Adjustments	2,695
Balance as of September 30, 2020	110,119
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2019	0
Additions from exocad acquisition	296,681
Adjustments	20,542
Balance as of September 30, 2020	$ 317,223

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, beginning balance	$ 186,413	$ 68,114
Accumulated Amortization	(46,213)	(37,088)
Accumulated Impairment Loss	(19,258)	(19,258)
Net Carrying Value, excluding foreign currency translation	120,942
Foreign currency translation	7,662
Total intangible assets	$ 128,604	$ 11,768
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)		15 years
Gross Carrying Amount, beginning balance		$ 7,100
Accumulated Amortization		(2,045)
Accumulated Impairment Loss		(4,179)
Total intangible assets		$ 876
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	13 years
Gross Carrying Amount, beginning balance	$ 99,600	$ 12,600
Accumulated Amortization	(10,603)	(5,831)
Accumulated Impairment Loss	(4,328)	(4,328)
Net Carrying Value, excluding foreign currency translation	$ 84,669
Total intangible assets		$ 2,441
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	11 years	11 years
Gross Carrying Amount, beginning balance	$ 55,000	$ 33,500
Accumulated Amortization	(20,876)	(18,405)
Accumulated Impairment Loss	(10,751)	(10,751)
Net Carrying Value, excluding foreign currency translation	$ 23,373
Total intangible assets		$ 4,344
Reacquired rights
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)		3 years
Gross Carrying Amount, beginning balance		$ 7,500
Accumulated Amortization		(7,059)
Accumulated Impairment Loss		0
Total intangible assets		$ 441
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)		8 years
Gross Carrying Amount, beginning balance		$ 6,796
Accumulated Amortization		(3,165)
Accumulated Impairment Loss		0
Total intangible assets		$ 3,631
Other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	2 years
Gross Carrying Amount, beginning balance	$ 14,913	$ 618
Accumulated Amortization	(11,885)	(583)
Accumulated Impairment Loss	0	0
Net Carrying Value, excluding foreign currency translation	$ 3,028
Total intangible assets		$ 35
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years
Gross Carrying Amount, beginning balance	$ 16,900
Accumulated Amortization	(2,849)
Accumulated Impairment Loss	(4,179)
Net Carrying Value, excluding foreign currency translation	$ 9,872

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) $ in Thousands	Sep. 30, 2020USD ($)
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2020	$ 3,907
2021	15,622
2022	14,366
2023	13,745
2024	12,805
Thereafter	60,497
Net Carrying Value, excluding foreign currency translation	$ 120,942

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Impairments and other charges		$ 0
Amortization	$ 4,100,000		$ 1,500,000	$ 9,500,000	$ 4,500,000

Equity Method Investments (Deta

Equity Method Investments (Details) - USD ($) $ in Thousands	Jul. 24, 2017	Jul. 25, 2016	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Apr. 30, 2019
Schedule of Equity Method Investments [Line Items]
Equity method investment, gain			$ 15,800	$ 0	$ 15,769
SDC
Schedule of Equity Method Investments [Line Items]
Ownership	2.00%	17.00%
Payments to acquire	$ 12,800	$ 46,700
SDC
Schedule of Equity Method Investments [Line Items]
Derecognized equity method investment						$ 38,400
Notes Receivable | SDC
Schedule of Equity Method Investments [Line Items]
Promissory note receivable						$ 54,200
Unsecured promissory note, remaining balance				$ 14,500

Credit Facilities - Additional

Credit Facilities - Additional Information (Details) - USD ($)	Jul. 21, 2020	Sep. 30, 2020	Jul. 20, 2020
2020 Credit Facility
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 300,000,000
Outstanding borrowings		$ 0
2018 Credit Facility
Line of Credit Facility [Line Items]
Line of credit, available borrowings			$ 200,000,000
Letter of Credit | 2020 Credit Facility
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 50,000,000
Letter of Credit | 2018 Credit Facility
Line of Credit Facility [Line Items]
Line of credit, available borrowings			$ 50,000,000
Base Rate | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
London Interbank Offered Rate (LIBOR) | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Minimum | Base Rate | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Minimum | London Interbank Offered Rate (LIBOR) | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Maximum | Base Rate | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Maximum | London Interbank Offered Rate (LIBOR) | 2020 Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%

Impairments and Other (Gains)_2

Impairments and Other (Gains) Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Lease impairment		$ 14,200
Leasehold improvement impairment		14,300
Employee severance cost		$ 1,300
Lease termination gains	$ 6,800		$ 0	$ 6,792

Legal Proceedings - Narrative (

Legal Proceedings - Narrative (Details)	Apr. 30, 2020claim	Dec. 11, 2018complaint	Nov. 14, 2017complaint	Dec. 31, 2018patentLawsuit	Jan. 31, 2019claim
Patent Infringement By 3Shape
Loss Contingencies [Line Items]
Patents allegedly infringed upon	9			10
Number of patent lawsuits/complaints		2	4	3
Number of claims found valid	6
Patents found infringed upon	7
Number of Section 337 violations	4
Number of patents with Section 337 violations	2
Shareholder Derivative Lawsuit
Loss Contingencies [Line Items]
Number of lawsuits					3

Commitments and Contingencies -

Commitments and Contingencies - Other Commitments (Details) - USD ($) $ in Millions	Sep. 30, 2020	Oct. 03, 2019
Commitments and Contingencies Disclosure [Abstract]
Amount of total Promotional Rights Agreement		$ 36
Purchase Commitment, Remaining Minimum Amount Committed	$ 32.5

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)shares
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	27,783,379
Number of shares available for issuance	4,617,148
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost | $	$ 113.4
Weighted average period of total unamortized cost (in years)	2 years 4 months 24 days
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost | $	$ 39
Weighted average period of total unamortized cost (in years)	1 year 4 months 24 days
Vesting period of granted market-performance based restricted stock units	3 years
Market Performance Based Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of market-performance based restricted stock units eligible to vest over the vesting period	300.00%
Market Performance Based Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of market-performance based restricted stock units eligible to vest over the vesting period	250.00%
Employee Stock Purchase Plan 2010 | ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	2,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	325,665
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost | $	$ 4.9
Weighted average period of total unamortized cost (in years)	6 months

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 25,229	$ 24,176	$ 73,163	$ 67,687
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,247	1,354	3,485	3,744
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	19,951	19,394	58,284	54,321
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 4,031	$ 3,428	$ 11,394	$ 9,622

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Number of Shares Underlying RSUs
Unvested as of December 31, 2019 | shares	696
Granted | shares	298
Vested and released | shares	(308)
Forfeited | shares	(34)
Unvested as of September 30, 2020 | shares	652
Weighted Average Grant Date Fair Value
Unvested as of December 31, 2019 | $ / shares	$ 190.60
Granted | $ / shares	266.07
Vested and released | $ / shares	150.22
Forfeited | $ / shares	233.59
Unvested as of September 30, 2020 | $ / shares	$ 241.90
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 4 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 213,410

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of MSU Performance (Details) - Market Performance Based Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Number of Shares Underlying MSUs
Unvested as of December 31, 2019 | shares	244
Granted | shares	156
Vested and released | shares	(173)
Unvested as of September 30, 2020 | shares	227
Weighted Average Grant Date Fair Value
Unvested as of December 31, 2019 | $ / shares	$ 331.35
Granted | $ / shares	242.04
Unvested as of September 30, 2020 | $ / shares	$ 430.50
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 74,391
Weighted average remaining contractual term	1 year 4 months 24 days
Vested and released | $ / shares	$ 120.39

Stockholders' Equity - Stock-_2

Stockholders' Equity - Stock-based Compensation Employee Stock Purchase Plan (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Class of Stock [Line Items]
Expected term (in years)	1 year	1 year 6 months	1 year	1 year 4 months 24 days
Expected volatility	71.70%	52.00%	55.00%	50.10%
Risk-free interest rate	0.10%	1.80%	0.90%	2.20%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Weighted average fair value at grant date (USD per Share)	$ 117.32	$ 80.42	$ 96.94	$ 86.02

Common Stock Repurchase Progr_2

Common Stock Repurchase Programs - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	May 31, 2018
Share Repurchases [Line Items]
Repurchased	$ 200,000,000	$ 299,504,000
May 2018 Repurchase Program
Share Repurchases [Line Items]
Value of repurchased common stock						$ 600,000,000
Accelerated share repurchase (shares)			0.8	0.1
Share repurchase price (in dollars per share)			$ 264.93	$ 356.54
Repurchased			$ 200,000,000	$ 50,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount					$ 100,000,000
2018 ASR
Share Repurchases [Line Items]
Accelerated share repurchase (shares)				0.2
Share repurchase price (in dollars per share)				$ 213.18
Repurchased				$ 50,000,000
2019 ASR
Share Repurchases [Line Items]
Accelerated share repurchase (shares)			1.1
Share repurchase price (in dollars per share)			$ 176.61
Repurchased			$ 200,000,000

Accounting for Income Taxes - A

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Disclosure Accounting For Income Taxes Additional Information [Abstract]
One-time tax benefit from intra-entity transfer of certain assets			$ 1,493,500
Provision for (benefit from) income taxes	$ 45,174	$ 25,895	$ (1,452,493)	$ 77,812
Effective income tax rate, continuing operations	24.50%	20.20%	(883.50%)	19.10%
Unrecognized tax benefits	$ 47,000		$ 47,000		$ 46,700
Unrecognized tax benefits, decrease for settlement with IRS	8,700
Deferred tax liabilities	$ 36,800		$ 36,800
Undistributed earnings of foreign subsidiaries					$ 452,600

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income	$ 139,371	$ 102,524	$ 1,616,900	$ 321,514
Weighted average common shares outstanding, basic	78,824	79,332	78,729	79,709
Dilutive effect of potential common stock	339	493	349	688
Total shares, diluted	79,163	79,825	79,078	80,397
Net income per share, basic	$ 1.77	$ 1.29	$ 20.54	$ 4.03
Net income per share, diluted	$ 1.76	$ 1.28	$ 20.45	$ 4
Anti-dilutive potential common shares	65	398	66	25
Retained Earnings
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income	$ 139,371	$ 102,524	$ 1,616,900	$ 321,514

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	$ 43,147	$ 14,331
Issuance of promissory note in exchange for sale of equity method investment	0	54,154
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	19,384	21,186
Investing cash flows from finance leases	0	10,896
Financing cash flows from finance leases	0	45,773
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	44,915	26,395
Finance leases	$ 0	$ 51,064

Segments and Geographical Inf_3

Segments and Geographical Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segments and Geographical Inf_4

Segments and Geographical Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Net revenues	$ 734,144	$ 607,341	$ 1,637,421	$ 1,757,009
Gross profit	534,088	437,554	1,152,772	1,271,939
Income from operations	177,069	127,152	173,987	391,343
Depreciation and amortization	24,486	19,706	68,769	57,194
Impairments and other (gains) charges	0	(6,792)	0	22,990
Litigation settlement gain	0	0	0	(51,000)
Interest income	329	3,478	2,788	9,576
Other income (expense), net	7,147	(2,211)	(12,368)	5,935
Net income before provision for income taxes and equity in losses of investee	184,545	128,419	164,407	406,854
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	296,686	244,712	519,272	714,908
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	620,764	516,265	1,400,716	1,482,172
Gross profit	463,747	379,202	1,007,605	1,096,702
Income from operations	261,774	211,952	467,078	614,622
Depreciation and amortization	10,413	9,306	30,231	27,851
Impairments and other (gains) charges	0	(6,792)	0	22,990
Litigation settlement gain	0	0	0	(51,000)
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	113,380	91,076	236,705	274,837
Gross profit	70,341	58,352	145,167	175,237
Income from operations	34,912	32,760	52,194	100,286
Depreciation and amortization	5,092	1,987	11,882	5,349
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(119,617)	(117,560)	(345,285)	(323,565)
Depreciation and amortization	$ 8,981	$ 8,413	$ 26,656	$ 23,994

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Net revenues	$ 734,144	$ 607,341	$ 1,637,421	$ 1,757,009
United States
Segment Reporting Information [Line Items]
Net revenues	332,414	286,050	744,978	861,710
The Netherlands
Segment Reporting Information [Line Items]
Net revenues	0	173,926	0	540,858
CHINA
Segment Reporting Information [Line Items]
Net revenues	76,825	63,636	142,927	151,075
Other International
Segment Reporting Information [Line Items]
Net revenues	104,995	83,729	236,835	203,366
SWITZERLAND
Segment Reporting Information [Line Items]
Net revenues	$ 219,910	$ 0	$ 512,681	$ 0

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total long-lived assets	$ 787,043	$ 687,974
The Netherlands
Segment Reporting Information [Line Items]
Total long-lived assets	855	226,286
United States
Segment Reporting Information [Line Items]
Total long-lived assets	178,767	164,451
Costa Rica
Segment Reporting Information [Line Items]
Total long-lived assets	99,000	82,083
CHINA
Segment Reporting Information [Line Items]
Total long-lived assets	107,042	73,174
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	159,597	134,225
SWITZERLAND
Segment Reporting Information [Line Items]
Total long-lived assets	$ 241,782	$ 7,755