Align Technology (ALGN) 10-Q 5 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-32259
Entity Registrant Name	ALIGN TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3267295
Entity Address, Address Line One	410 North Scottsdale Road, Suite 1300
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85281
City Area Code	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	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		79,136,575

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Off-Balance Sheet Arrangements As of March 31, 2021, we had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in Note 11 “Com mitments 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 March 31, 2021, 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
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net revenues	$ 894,771	$ 550,963
Cost of net revenues	217,673	156,607
Gross profit	677,098	394,356
Operating expenses:
Selling, general and administrative	397,115	282,906
Research and development	54,537	41,532
Total operating expenses	451,652	324,438
Income from operations	225,446	69,918
Interest income	1,643	1,986
Other income (expense), net	34,532	(18,549)
Total interest income and other income (expense), net	36,175	(16,563)
Net income before provision for (benefit from) income taxes	261,621	53,355
Provision for (benefit from) income taxes	61,245	(1,464,776)
Net income	$ 200,376	$ 1,518,131
Net income per share:
Basic (in usd per share)	$ 2.54	$ 19.32
Diluted (in usd per share)	$ 2.51	$ 19.21
Shares used in computing net income per share:
Basic (in shares)	79,000	78,592
Diluted (in shares)	79,798	79,028

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 200,376	$ 1,518,131
Change in foreign currency translation adjustment, net of tax	(14,451)	689
Change in unrealized gains (losses) on investments, net of tax	(20)	(194)
Other comprehensive income (loss)	(14,471)	495
Comprehensive income	$ 185,905	$ 1,518,626

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,131,698	$ 960,843
Accounts receivable, net of allowance for doubtful accounts of $9,882 and $10,239, respectively	718,957	657,704
Inventories	150,643	139,237
Prepaid expenses and other current assets	114,257	91,754
Total current assets	2,115,555	1,849,538
Property, plant and equipment, net	763,870	734,721
Operating lease right-of-use assets, net	82,435	82,553
Goodwill	427,561	444,817
Intangible assets, net	120,479	130,072
Deferred tax assets	1,521,922	1,552,831
Other assets	37,960	35,151
Total assets	5,069,782	4,829,683
Current liabilities:
Accounts payable	124,298	142,132
Accrued liabilities	406,672	405,582
Deferred revenues	862,872	777,887
Total current liabilities	1,393,842	1,325,601
Income tax payable	109,668	105,748
Operating lease liabilities	63,845	64,445
Other long-term liabilities	108,851	100,024
Total liabilities	1,676,206	1,595,818
Commitments and contingencies (Notes 6 and 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)	0	0
Common stock, $0.0001 par value (200,000 shares authorized; 79,136 and 78,860 issued and outstanding, respectively)	8	8
Additional paid-in capital	948,362	974,556
Accumulated other comprehensive income (loss), net	29,030	43,501
Retained earnings	2,416,176	2,215,800
Total stockholders’ equity	3,393,576	3,233,865
Total liabilities and stockholders’ equity	$ 5,069,782	$ 4,829,683

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9,882	$ 10,239
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	79,136,000	78,860,000
Common stock, shares outstanding	79,136,000	78,860,000

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 at Dec. 31, 2019	$ 1,346,169	$ 8	$ 906,937	$ (688)	$ 439,912
Beginning Balance (in shares) at Dec. 31, 2019		78,433
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,518,131				1,518,131
Change in unrealized gains (losses) on investments, net of tax	(194)			(194)
Change in foreign currency translation adjustment, net of tax	689			689
Issuance of common stock relating to employee equity compensation plans	10,662		10,662
Issuance of common stock relating to employee equity compensation plans (in shares)		326
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	45,395		45,395
Stock-based compensation	22,927		22,927
Ending Balance at Mar. 31, 2020	2,852,989	$ 8	895,131	(193)	1,958,043
Ending Balance (in shares) at Mar. 31, 2020		78,759
Beginning Balance at Dec. 31, 2020	3,233,865	$ 8	974,556	43,501	2,215,800
Beginning Balance (in shares) at Dec. 31, 2020		78,860
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	200,376				200,376
Change in unrealized gains (losses) on investments, net of tax	(20)			(20)
Change in foreign currency translation adjustment, net of tax	(14,451)			(14,451)
Issuance of common stock relating to employee equity compensation plans	13,133		13,133
Issuance of common stock relating to employee equity compensation plans (in shares)		276
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	66,568		66,568
Stock-based compensation	27,241		27,241
Ending Balance at Mar. 31, 2021	$ 3,393,576	$ 8	$ 948,362	$ 29,030	$ 2,416,176
Ending Balance (in shares) at Mar. 31, 2021		79,136

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 200,376	$ 1,518,131
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	28,979	(1,487,154)
Depreciation and amortization	25,635	20,738
Stock-based compensation	27,241	22,927
Non-cash operating lease cost	5,911	5,546
Allowance for doubtful accounts provisions	455	4,838
Arbitration award gain	(43,403)	0
Impairment on equity investment	0	2,900
Other non-cash operating activities	5,340	7,728
Changes in assets and liabilities:
Accounts receivable	(67,423)	13,761
Inventories	(15,582)	(10,496)
Prepaid expenses and other assets	(34,858)	(37,244)
Accounts payable	(14,936)	(12,034)
Accrued and other long-term liabilities	(475)	(69,103)
Long-term income tax payable	3,920	6,354
Deferred revenues	106,007	22,892
Net cash provided by operating activities	227,187	9,784
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(43,431)	(46,085)
Purchase of marketable securities	0	(5,341)
Proceeds from maturities of marketable securities	0	42,641
Proceeds from sales of marketable securities	0	278,817
Repayment on unsecured promissory note	4,594	4,419
Proceeds from arbitration award	43,403	0
Other investing activities	0	1,760
Net cash provided by investing activities	4,566	276,211
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	13,133	10,662
Payroll taxes paid upon the vesting of equity awards	(66,568)	(45,395)
Net cash used in financing activities	(53,435)	(34,733)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(7,487)	(11,007)
Net increase in cash, cash equivalents, and restricted cash	170,831	240,255
Cash, cash equivalents, and restricted cash at beginning of the period	961,474	551,134
Cash, cash equivalents, and restricted cash at end of the period	$ 1,132,305	$ 791,389

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021 and 2020, our comprehensive income for the three months ended March 31, 2021 and 2020, our financial position as of March 31, 2021, our stockholders’ equity for the three months ended March 31, 2021 and 2020, and our cash flows for the three months ended March 31, 2021 and 2020. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from the December 31, 2020 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 months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 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, 2020. 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, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Certain Risks and Uncertainties 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. The full extent to which the pandemic, including as a result of any new strains, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined. Recent Accounting Pronouncements New Accounting Updates Recently Adopted In December 2019, the Financial Accounting Standards Board 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. Adoption of this standard in the first quarter of fiscal year 2021 did not have a material impact on our consolidated financial statements or related disclosures.

Investments and Fair Value Meas

Investments and Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Investments and Fair Value Measurements	Fair Value Measurements The following tables summarize our financial assets measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 654,211 $ 654,211 $ — Prepaid expenses and other current assets: Israeli funds 3,752 — 3,752 $ 657,963 $ 654,211 $ 3,752 Description Balance as of December 31, 2020 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 519,228 $ 519,228 $ — $ — Prepaid expenses and other current assets: Israeli funds 3,500 — 3,500 — Current unsecured promissory note 1 5,408 — — 5,408 $ 528,136 $ 519,228 $ 3,500 $ 5,408 1 The unsecured promissory note was paid in full by SmileDirectClub, LLC (“SDC”) during the three months ended March 31, 2021. Besides the repayment on the note, on March 12, 2021, the Arbitrator ruled in favor of us on the SDC dispute and issued an award of $43.4 million along with interest. The gain of $43.4 million is recognized as a part of our other income (expense), net in our Condensed Consolidated Statement of Operation. Refer to Note 6 “Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements for more information on the arbitration award received. 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 March 31, 2021 and 2020, we recognized net gains of $12.4 million and $15.6 million, respectively. As of March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Local Currency Amount Notional Contract Amount (USD) Euro €160,500 $ 188,276 Chinese Yuan ¥1,107,000 168,394 Canadian Dollar C$92,200 73,208 British Pound £42,990 59,182 Brazilian Real R$222,000 38,836 Japanese Yen ¥4,071,800 36,757 Polish Zloty PLN138,395 34,906 Israeli Shekel ILS65,220 19,533 Mexican Peso M$295,500 14,422 Swiss Franc CHF6,100 6,474 Australian Dollar A$5,800 4,412 $ 644,400 December 31, 2020 Local Currency Amount Notional Contract Amount (USD) Euro €126,300 $ 155,125 Chinese Yuan ¥936,000 143,393 Canadian Dollar C$65,000 50,791 British Pound £32,300 43,879 Japanese Yen ¥4,249,000 41,222 Brazilian Real R$142,000 27,264 Israeli Shekel ILS74,000 23,094 Mexican Peso M$140,000 7,002 Australian Dollar A$5,800 4,447 Swiss Franc CHF3,700 4,191 $ 500,408 Other foreign currency forward contract Prior to the closing of the exocad Global Holdings GmbH (“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 three months ended March 31, 2020, we recognized an unrealized loss of $9.2 million within other income (expense), net in our Condensed Consolidated Statement of Operation as a result of the forward contract's fair value as of March 31, 2020.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): March 31, December 31, Raw materials $ 75,836 $ 76,404 Work in process 40,387 31,393 Finished goods 34,420 31,440 Total inventories $ 150,643 $ 139,237 Accrued liabilities consist of the following (in thousands): March 31, December 31, Accrued payroll and benefits $ 153,898 $ 170,106 Accrued expenses 85,854 77,024 Accrued income taxes 41,539 30,130 Accrued property, plant and equipment 36,857 27,692 Current operating lease liabilities 21,513 21,735 Other accrued liabilities 67,011 78,895 Total accrued liabilities $ 406,672 $ 405,582 Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Three Months Ended 2021 2020 Balance at beginning of period $ 12,615 $ 11,205 Charged to cost of net revenues 4,280 3,724 Actual warranty expenditures (3,160) (3,140) Balance at end of period $ 13,735 $ 11,789 Deferred revenues consist of the following (in thousands): March 31, December 31, Deferred revenues - current $ 862,872 $ 777,887 Deferred revenues - long-term 1 $ 74,226 $ 62,551 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet During the three months ended March 31, 2021 and 2020, we recognized $894.8 million and $551.0 million of net revenues, respectively, of which $125.8 million and $95.5 million was included in the deferred revenues balance at December 31, 2020 and 2019, respectively. one

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The change in the carrying value of goodwill for the three months ended March 31, 2021, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2020 $ 112,691 $ 332,126 $ 444,817 Foreign currency translation adjustments (2,374) (14,882) (17,256) Balance as of March 31, 2021 $ 110,317 $ 317,244 $ 427,561 Intangible Long-Lived Assets Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of March 31, 2021 Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 99,400 $ (15,035) $ (4,328) $ 80,037 Customer relationships 11 55,000 (22,882) (10,751) 21,367 Trademarks and tradenames 10 16,600 (3,318) (4,179) 9,103 Patents and other 8 6,610 (3,989) — 2,621 $ 177,610 $ (45,224) $ (19,258) 113,128 Foreign currency translation 7,351 Total intangible assets $ 120,479 Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 99,400 $ (12,719) $ (4,328) $ 82,353 Customer relationships 11 55,000 (21,879) (10,751) 22,370 Trademarks and tradenames 10 16,600 (2,934) (4,179) 9,487 Patents and other 8 6,610 (3,785) — 2,825 177,610 (41,317) (19,258) 117,035 Foreign currency translation 13,037 Total intangible assets $ 130,072 The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2021 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2021 $ 11,715 2022 14,366 2023 13,745 2024 12,805 2025 12,428 Thereafter 48,069 Total $ 113,128 Amortization expense for the three months ended March 31, 2021 and 2020 was $3.9 million and $1.3 million, respectively.

Credit Facilities

Credit Facilities	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Credit Facilities	Credit FacilityOn July 21, 2020 we entered into a credit facility for a $300.0 million unsecured revolving line of credit, with a $50.0 million letter of credit sublimit, and a maturity date of July 21, 2023 (“2020 Credit Facility”), 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 March 31, 2021, we had no outstanding borrowings under the 2020 Credit Facility and were in compliance with the conditions and performance requirements.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Mar. 31, 2021
Legal Proceedings [Abstract]
Legal Proceedings	Legal Proceedings 2018 Securities Class Action Lawsuit On November 5, 2018, a class action lawsuit against Align and three of our executive officers was filed in the U.S. District Court for the Northern District of California on behalf of a purported class of purchasers of our common stock. The complaint generally alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. On December 12, 2018, a similar lawsuit was filed in the same court on behalf of a purported class of purchasers of our common stock. On November 29, 2019, the lead plaintiff filed an amended consolidated complaint against Align and two of our executive officers alleging similar claims as the initial complaints on behalf of a purported class of purchasers of our common stock from May 23, 2018 and October 24, 2018. On September 9, 2020, Defendants’ motion to dismiss the amended consolidated complaint was granted in part and denied in part. Trial is scheduled for October 3, 2022. Align believes the claims that remain in the case are without merit and intends to vigorously defend itself. Align is currently unable to predict the outcome of the lawsuit 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. The complaint alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. The lead plaintiff filed an amended complaint on August 4, 2020 against Align and three of our executive officers alleging similar claims as in the initial complaint on behalf of a purported class of purchasers of our common stock from April 25, 2019 to July 24, 2019. On March 29, 2021, defendants’ motion to dismiss the amended complaint was granted with leave for the lead plaintiff to file a further amended complaint. On April 22, 2021, lead plaintiff filed a notice stating it would not file a further amended complaint. On April 23, 2021, the Court dismissed the action with prejudice and judgment was entered. Lead plaintiff filed a notice of appeal on April 28, 2021. Currently there is no schedule for the appeal. 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 a decision on the motion to dismiss in the 2020 Securities Class Action Lawsuit. The parties are required to file a status report with the Court within 14 days of the order dismissing 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 were filed 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 3Shape has filed counterclaims for breach of contract and business torts. Align’s motions to dismiss the 3Shape counterclaims was recommended to be granted by the Magistrate Judge. In 2018, 3Shape filed two separate complaints in the U.S. District Court for the District of Delaware alleging patent infringement by Align’s iTero Element scanner of 3Shape patents. On August 19, 2019, the Court consolidated the two actions, and on August 30, 2019, 3Shape filed an amended complaint. On December 11, 2018, Align filed an additional complaint 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. 3Shape filed business tort counterclaims. The Magistrate Judge recommended granting Align’s motion to dismiss 3Shape's counterclaims. 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. In response, 3Shape filed a motion to dismiss as well as b usiness tort and patent infringement counterclaims. Align has moved to dismiss the business tort counterclaims . Each of 3Shape and Align’s District Court patent infringement complaints and all of 3Shape’s business tort counterclaims seek monetary damages and/or injunctive relief. One of Align’s Delaware District Court cases against 3Shape is scheduled for a jury trial beginning on July 26, 2021. The case pending in the Western District of Texas has been given an estimated trial date of October 3, 2022. No trial dates have been set in the remaining cases. 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 scanner markets. After the Court dismissed 3Shape’s complaint, 3Shape filed an amended complaint on October 28, 2019. The Court denied Align’s motion to dismiss the amended complaint on November 25, 2020. No trial date has been set. 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. Antitrust Class Actions On June 5, 2020, a dental practice named Simon and Simon, PC doing business as City Smiles brought an antitrust action in the 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 scanner markets. 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. On April 8, 2021, the Judge denied Align’s motion to dismiss. The court has not entered a schedule or set a trial date. A lign believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. On May 3, 2021, an individual named Misty Snow brought an antitrust action in the United States District Court for the Northern District of California on behalf of herself and a putative class of similarly situated individuals seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanner markets. Align has not yet responded to the complaint. Align believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. Align is currently unable to predi ct the outcome of these lawsuits and therefore cannot determine the likelihood of loss, if any, nor estimate a range of possible loss. SDC Dispute In April 2018, SDC Financial LLC, SmileDirectClub LLC, and the Members of SDC Financial LLC other than the Company (collectively, the “SDC Entities”) initiated confidential arbitration proceedings against Align. In an award dated March 4, 2019, (“Award”) an arbitrator found that Align breached a restrictive covenant and that Align misused the SDC Entities’ confidential information and violated fiduciary duties to SDC Financial LLC. As part of the Award, Align was enjoined from opening new Invisalign stores or providing certain services in physical retail establishments in connection with the marketing and sale of clear aligners in the United States, 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 disputed that the SDC Entities properly determined the value of Align’s “capital account” balance as of October 31, 2017. Consequently, on July 3, 2019, Align filed a confidential demand for arbitration challenging the propriety of the SDC Entities’ determination. The arbitration hearing occurred in December 2020 and on March 12, 2021 the Arbitrator issued a final award in favor of Align and against SDC finding that the SDC entities owed Align an additional $43.4 million plus interest which SDC paid to Align on March 17, 2021. In a related legal proceeding, the SDC Entities had filed a contempt petition with an Illinois court asserting that Align had no right to contest the SDC Entities; “capital account” determination in the July 3, 2019 arbitration. On September 4, 2019, the Illinois court denied in its entirety the contempt petition filed by the SDC Entities. The SDC Entities appealed and, on February 9, 2021, the Illinois Appellate Court affirmed the denial of the contempt petition. The time for SDC to seek rehearing or further appeal has passed. On August 19, 2019, the SDC Entities filed a separate confidential arbitration proceeding alleging that Align had 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 asserted that Align’s alleged dealings with a third-party constituted contempt of the Award. On February 5, 2021, pursuant to an agreement reached by the parties, the arbitrator dismissed the arbitration with prejudice. 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. On January 19, 2021, SDC filed a counterclaim alleging that Align breached the Supply Agreement. Align denies the SDC Entities’ allegations in the counterclaim and will vigorously defend itself against them. This arbitration hearing is scheduled for September 27, 2021. 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

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity As of March 31, 2021, the 2005 Incentive Plan (as amended) has a total reserve of 27,783,379 shares of which 4,210,089 shares are available for issuance. Common Stock Repurchase Program As of March 31, 2021, we have $100.0 million available for repurchase under the May 2018 Repurchase Program. Subsequent to the first quarter, on April 30, 2021, we entered into an accelerated stock repurchase agreement (“2021 ASR”) to repurchase $100.0 million of our common stock. We paid $100.0 million on May 3, 2021 and received an initial delivery of approximately 0.1 million shares based on current market prices. The final number of shares to be repurchased will be based on our volume-weighted average stock price under the terms of the 2021 ASR, less an agreed upon discount. Summary of Stock-Based Compensation Expense 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 months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended 2021 2020 Cost of net revenues $ 1,306 $ 1,347 Selling, general and administrative 21,844 18,130 Research and development 4,091 3,450 Total stock-based compensation $ 27,241 $ 22,927 Restricted Stock Units (“RSUs”) The fair value of RSUs is based on our closing stock price on the date of grant. RSUs granted generally vest over a period of four years. A summary for the three months ended March 31, 2021 is as follows: Number of Shares Underlying RSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Aggregate Unvested as of December 31, 2020 632 $ 243.55 Granted 149 598.37 Vested and released (214) 214.65 Forfeited (7) 298.24 Unvested as of March 31, 2021 560 $ 348.77 1.7 $ 303,402 As of March 31, 2021, we expect to recognize $163.6 million of total unamortized compensation cost, net of estimated forfeitures, related to RSUs over a weighted average period of 2.7 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 from 250% to 300% of the MSUs initially granted and the vesting period is three years. A summary for the three months ended March 31, 2021 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, 2020 227 $ 430.50 Granted 91 675.44 Vested and released (101) 351.75 Unvested as of March 31, 2021 217 $ 569.07 1.4 $ 117,620 As of March 31, 2021, we expect to recognize $60.8 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 March 31, 2021, we have 253,444 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 2021 2020 Expected term (in years) 1.0 1.0 Expected volatility 58.8 % 41.7 % Risk-free interest rate 0.1 % 1.5 % Expected dividends — — Weighted average fair value at grant date $ 202.74 $ 80.54

Accounting for Income Taxes

Accounting for Income Taxes	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $61.2 million for the three months ended March 31, 2021 and our benefit from income taxes was $1,464.8 million for the three months ended March 31, 2020 representing effective tax rates of 23.4% and (2,745.3)%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended March 31, 2021 primarily due to the recognition of additional tax expense resulting from state income taxes, non-deductible expenses in the U.S. and foreign income taxed at different rates, partially offset by the recognition of excess tax benefits related to stock-based compensation. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended March 31, 2020 mainly as a result of the recognition of a deferred tax asset and related one-time tax benefit in accordance with the completion of the intra-entity transfer of certain intellectual property rights and fixed assets to our Swiss entity and excess tax benefits related to stock-based compensation, partially offset by state income taxes and foreign income taxed at different rates. During the three months ended March 31, 2020 , we completed an intra-entity transfer of certain intellectual property rights and fixed assets to our Swiss entity. 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 three months ended March 31, 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. 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 2016. Our subsidiary in Israel is under audit by the local tax authorities for years 2015 through 2018. 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 $50.0 million and $46.3 million as of March 31, 2021 and December 31, 2020, respectively, a material amount of which would impact our effective tax rate if recognized. Total interest and penalties accrued as of March 31, 2021 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. Although it is possible that our balance of gross unrecognized tax benefits could materially change in the next 12 months, given uncertainty in the development of ongoing income tax examinations, we are unable to estimate the full range of possible adjustments to this balance. Our total deferred tax liabilities were $32.9 million and $35.7 million as of March 31, 2021 and December 31, 2020, respectively, which primarily related to the intangible assets from our exocad acquisition.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended 2021 2020 Numerator: Net income $ 200,376 $ 1,518,131 Denominator: Weighted average common shares outstanding, basic 79,000 78,592 Dilutive effect of potential common stock 798 436 Total shares, diluted 79,798 79,028 Net income per share, basic $ 2.54 $ 19.32 Net income per share, diluted $ 2.51 $ 19.21 Anti-dilutive potential common shares 1 76 148 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	3 Months Ended
	Mar. 31, 2021
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The supplemental cash flow information consists of the following (in thousands): Three Months Ended 2021 2020 Non-cash investing and financing activities: Fixed assets acquired with accounts payable or accrued liabilities $ 45,354 $ 24,121 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,923 $ 6,236 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,369 $ 21,602

Segments and Geographical Infor

Segments and Geographical Information	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segments and Geographical Information	Segments and Geographical Information Segment Information We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, and other separately managed general and administrative costs outside the operating segments. We group our operations into two reportable segments: Clear Aligner segment and Imaging Systems and CAD/CAM services (“Systems and Services”) segment. Summarized financial information by segment is as follows (in thousands): Three Months Ended 2021 2020 Net revenues Clear Aligner $ 753,269 $ 481,611 Systems and Services 141,502 69,352 Total net revenues $ 894,771 $ 550,963 Gross profit Clear Aligner $ 584,534 $ 351,492 Systems and Services 92,564 42,864 Total gross profit $ 677,098 $ 394,356 Income from operations Clear Aligner $ 327,465 $ 166,388 Systems and Services 47,228 14,389 Unallocated corporate expenses (149,247) (110,859) Total income from operations $ 225,446 $ 69,918 Stock-based compensation Clear Aligner $ 2,294 $ 2,529 Systems and Services 171 78 Unallocated corporate expenses 24,776 20,320 Total stock-based compensation $ 27,241 $ 22,927 Depreciation and amortization Clear Aligner $ 11,120 $ 10,121 Systems and Services 4,545 1,785 Unallocated corporate expenses 9,970 8,832 Total depreciation and amortization $ 25,635 $ 20,738 The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands): Three Months Ended 2021 2020 Total segment income from operations $ 374,693 $ 180,777 Unallocated corporate expenses (149,247) (110,859) Total income from operations 225,446 69,918 Interest income 1,643 1,986 Other income (expense), net 34,532 (18,549) Net income before provision for (benefit from) income taxes $ 261,621 $ 53,355 Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended 2021 2020 Net revenues 1 : United States $ 383,002 $ 271,705 Switzerland 315,450 187,276 China 61,212 19,725 Other International 135,107 72,257 Total net revenues $ 894,771 $ 550,963 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): March 31, December 31, 2020 Long-lived assets 1 : Switzerland $ 267,654 $ 257,337 United States 180,709 180,539 China 121,342 113,918 Costa Rica 98,124 97,804 Other International 178,476 167,676 Total long-lived assets $ 846,305 $ 817,274 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021 and 2020, our comprehensive income for the three months ended March 31, 2021 and 2020, our financial position as of March 31, 2021, our stockholders’ equity for the three months ended March 31, 2021 and 2020, and our cash flows for the three months ended March 31, 2021 and 2020. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from the December 31, 2020 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 months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 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, 2020.
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, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Certain Risk and Uncertainties	Certain Risks and Uncertainties 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. The full extent to which the pandemic, including as a result of any new strains, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Accounting Updates Recently Adopted In December 2019, the Financial Accounting Standards Board 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. Adoption of this standard in the first quarter of fiscal year 2021 did not have a material impact on our consolidated financial statements or related disclosures.

Investments and Fair Value Me_2

Investments and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
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 March 31, 2021 and December 31, 2020 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 654,211 $ 654,211 $ — Prepaid expenses and other current assets: Israeli funds 3,752 — 3,752 $ 657,963 $ 654,211 $ 3,752 Description Balance as of December 31, 2020 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 519,228 $ 519,228 $ — $ — Prepaid expenses and other current assets: Israeli funds 3,500 — 3,500 — Current unsecured promissory note 1 5,408 — — 5,408 $ 528,136 $ 519,228 $ 3,500 $ 5,408
Notional value of derivative instruments	The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Local Currency Amount Notional Contract Amount (USD) Euro €160,500 $ 188,276 Chinese Yuan ¥1,107,000 168,394 Canadian Dollar C$92,200 73,208 British Pound £42,990 59,182 Brazilian Real R$222,000 38,836 Japanese Yen ¥4,071,800 36,757 Polish Zloty PLN138,395 34,906 Israeli Shekel ILS65,220 19,533 Mexican Peso M$295,500 14,422 Swiss Franc CHF6,100 6,474 Australian Dollar A$5,800 4,412 $ 644,400 December 31, 2020 Local Currency Amount Notional Contract Amount (USD) Euro €126,300 $ 155,125 Chinese Yuan ¥936,000 143,393 Canadian Dollar C$65,000 50,791 British Pound £32,300 43,879 Japanese Yen ¥4,249,000 41,222 Brazilian Real R$142,000 27,264 Israeli Shekel ILS74,000 23,094 Mexican Peso M$140,000 7,002 Australian Dollar A$5,800 4,447 Swiss Franc CHF3,700 4,191 $ 500,408

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, December 31, Raw materials $ 75,836 $ 76,404 Work in process 40,387 31,393 Finished goods 34,420 31,440 Total inventories $ 150,643 $ 139,237
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, December 31, Accrued payroll and benefits $ 153,898 $ 170,106 Accrued expenses 85,854 77,024 Accrued income taxes 41,539 30,130 Accrued property, plant and equipment 36,857 27,692 Current operating lease liabilities 21,513 21,735 Other accrued liabilities 67,011 78,895 Total accrued liabilities $ 406,672 $ 405,582
Schedule of Warranty Accrual	Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Three Months Ended 2021 2020 Balance at beginning of period $ 12,615 $ 11,205 Charged to cost of net revenues 4,280 3,724 Actual warranty expenditures (3,160) (3,140) Balance at end of period $ 13,735 $ 11,789
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): March 31, December 31, Deferred revenues - current $ 862,872 $ 777,887 Deferred revenues - long-term 1 $ 74,226 $ 62,551 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Notes To Financial Statements [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the three months ended March 31, 2021, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2020 $ 112,691 $ 332,126 $ 444,817 Foreign currency translation adjustments (2,374) (14,882) (17,256) Balance as of March 31, 2021 $ 110,317 $ 317,244 $ 427,561
Schedule of Amortized Intangible Assets	Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of March 31, 2021 Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 99,400 $ (15,035) $ (4,328) $ 80,037 Customer relationships 11 55,000 (22,882) (10,751) 21,367 Trademarks and tradenames 10 16,600 (3,318) (4,179) 9,103 Patents and other 8 6,610 (3,989) — 2,621 $ 177,610 $ (45,224) $ (19,258) 113,128 Foreign currency translation 7,351 Total intangible assets $ 120,479 Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 99,400 $ (12,719) $ (4,328) $ 82,353 Customer relationships 11 55,000 (21,879) (10,751) 22,370 Trademarks and tradenames 10 16,600 (2,934) (4,179) 9,487 Patents and other 8 6,610 (3,785) — 2,825 177,610 (41,317) (19,258) 117,035 Foreign currency translation 13,037 Total intangible assets $ 130,072
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2021 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2021 $ 11,715 2022 14,366 2023 13,745 2024 12,805 2025 12,428 Thereafter 48,069 Total $ 113,128

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021 and 2020 is as follows (in thousands): Three Months Ended 2021 2020 Cost of net revenues $ 1,306 $ 1,347 Selling, general and administrative 21,844 18,130 Research and development 4,091 3,450 Total stock-based compensation $ 27,241 $ 22,927
Summary Of Restricted Stock Units	A summary for the three months ended March 31, 2021 is as follows: Number of Shares Underlying RSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Aggregate Unvested as of December 31, 2020 632 $ 243.55 Granted 149 598.37 Vested and released (214) 214.65 Forfeited (7) 298.24 Unvested as of March 31, 2021 560 $ 348.77 1.7 $ 303,402
Summary Of Market-performance Based Restricted Stock Units	A summary for the three months ended March 31, 2021 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, 2020 227 $ 430.50 Granted 91 675.44 Vested and released (101) 351.75 Unvested as of March 31, 2021 217 $ 569.07 1.4 $ 117,620
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 2021 2020 Expected term (in years) 1.0 1.0 Expected volatility 58.8 % 41.7 % Risk-free interest rate 0.1 % 1.5 % Expected dividends — — Weighted average fair value at grant date $ 202.74 $ 80.54

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
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 2021 2020 Numerator: Net income $ 200,376 $ 1,518,131 Denominator: Weighted average common shares outstanding, basic 79,000 78,592 Dilutive effect of potential common stock 798 436 Total shares, diluted 79,798 79,028 Net income per share, basic $ 2.54 $ 19.32 Net income per share, diluted $ 2.51 $ 19.21 Anti-dilutive potential common shares 1 76 148 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)	3 Months Ended
	Mar. 31, 2021
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Three Months Ended 2021 2020 Non-cash investing and financing activities: Fixed assets acquired with accounts payable or accrued liabilities $ 45,354 $ 24,121 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,923 $ 6,236 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,369 $ 21,602

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information by segment is as follows (in thousands): Three Months Ended 2021 2020 Net revenues Clear Aligner $ 753,269 $ 481,611 Systems and Services 141,502 69,352 Total net revenues $ 894,771 $ 550,963 Gross profit Clear Aligner $ 584,534 $ 351,492 Systems and Services 92,564 42,864 Total gross profit $ 677,098 $ 394,356 Income from operations Clear Aligner $ 327,465 $ 166,388 Systems and Services 47,228 14,389 Unallocated corporate expenses (149,247) (110,859) Total income from operations $ 225,446 $ 69,918 Stock-based compensation Clear Aligner $ 2,294 $ 2,529 Systems and Services 171 78 Unallocated corporate expenses 24,776 20,320 Total stock-based compensation $ 27,241 $ 22,927 Depreciation and amortization Clear Aligner $ 11,120 $ 10,121 Systems and Services 4,545 1,785 Unallocated corporate expenses 9,970 8,832 Total depreciation and amortization $ 25,635 $ 20,738 The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands): Three Months Ended 2021 2020 Total segment income from operations $ 374,693 $ 180,777 Unallocated corporate expenses (149,247) (110,859) Total income from operations 225,446 69,918 Interest income 1,643 1,986 Other income (expense), net 34,532 (18,549) Net income before provision for (benefit from) income taxes $ 261,621 $ 53,355
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 2021 2020 Net revenues 1 : United States $ 383,002 $ 271,705 Switzerland 315,450 187,276 China 61,212 19,725 Other International 135,107 72,257 Total net revenues $ 894,771 $ 550,963 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): March 31, December 31, 2020 Long-lived assets 1 : Switzerland $ 267,654 $ 257,337 United States 180,709 180,539 China 121,342 113,918 Costa Rica 98,124 97,804 Other International 178,476 167,676 Total long-lived assets $ 846,305 $ 817,274 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 - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Assets	$ 657,963	$ 528,136
Level 1
Debt Securities, Available-for-sale [Line Items]
Assets	654,211	519,228
Level 2
Debt Securities, Available-for-sale [Line Items]
Assets	3,752	3,500
Level 3
Debt Securities, Available-for-sale [Line Items]
Assets		5,408
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash equivalents	654,211	519,228
Money market funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Cash equivalents	654,211	519,228
Money market funds | Level 2
Debt Securities, Available-for-sale [Line Items]
Cash equivalents	0	0
Money market funds | Level 3
Debt Securities, Available-for-sale [Line Items]
Cash equivalents		0
Israeli Severance Funds
Debt Securities, Available-for-sale [Line Items]
Israeli funds	3,752	3,500
Israeli Severance Funds | Level 1
Debt Securities, Available-for-sale [Line Items]
Israeli funds	0	0
Israeli Severance Funds | Level 2
Debt Securities, Available-for-sale [Line Items]
Israeli funds	$ 3,752	3,500
Israeli Severance Funds | Level 3
Debt Securities, Available-for-sale [Line Items]
Israeli funds		0
Notes Receivable
Debt Securities, Available-for-sale [Line Items]
Current unsecured promissory note		5,408
Notes Receivable | Level 1
Debt Securities, Available-for-sale [Line Items]
Current unsecured promissory note		0
Notes Receivable | Level 2
Debt Securities, Available-for-sale [Line Items]
Current unsecured promissory note		0
Notes Receivable | Level 3
Debt Securities, Available-for-sale [Line Items]
Current unsecured promissory note		$ 5,408

Investments and Fair Value Me_4

Investments and Fair Value Measurements Additional Information (Details) $ in Thousands	Mar. 12, 2021USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2020EUR (€)
Derivative [Line Items]
Amount owed from other party	$ 43,400
Gain on litigation settlement		$ 43,403	$ 0
Derivative gains (losses)		$ 12,400	15,600
exocad Acquisition
Derivative [Line Items]
Unrealized loss			$ 9,200
Forward Contracts | exocad Acquisition
Derivative [Line Items]
Notional amount | €				€ 376,000,000

Investments and Fair Value Me_5

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, zł in Thousands, SFr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Mar. 31, 2021EUR (€)

Mar. 31, 2021USD ($)

Mar. 31, 2021CNY (¥)

Mar. 31, 2021CAD ($)

Mar. 31, 2021GBP (£)

Mar. 31, 2021BRL (R$)

Mar. 31, 2021JPY (¥)

Mar. 31, 2021PLN (zł)

Mar. 31, 2021ILS (₪)

Mar. 31, 2021MXN ($)

Mar. 31, 2021CHF (SFr)

Mar. 31, 2021AUD ($)

Dec. 31, 2020EUR (€)

Dec. 31, 2020USD ($)

Dec. 31, 2020CNY (¥)

Dec. 31, 2020CAD ($)

Dec. 31, 2020GBP (£)

Dec. 31, 2020BRL (R$)

Dec. 31, 2020JPY (¥)

Dec. 31, 2020ILS (₪)

Dec. 31, 2020MXN ($)

Dec. 31, 2020CHF (SFr)

Dec. 31, 2020AUD ($)

Derivative [Line Items]

Notional amount

$ 644,400

$ 500,408

Euro

Derivative [Line Items]

Notional amount

€ 160,500

188,276

€ 126,300

155,125

Chinese Yuan

Derivative [Line Items]

Notional amount

168,394

¥ 1,107,000

143,393

¥ 936,000

Canadian Dollar

Derivative [Line Items]

Notional amount

73,208

$ 92,200

50,791

$ 65,000

British Pound

Derivative [Line Items]

Notional amount

59,182

£ 42,990

43,879

£ 32,300

Brazilian Real

Derivative [Line Items]

Notional amount

38,836

R$ 222000

27,264

R$ 142000

Japanese Yen

Derivative [Line Items]

Notional amount

36,757

¥ 4,071,800

41,222

¥ 4,249,000

Polish Zloty

Derivative [Line Items]

Notional amount

34,906

zł 138,395

Israeli Shekel

Derivative [Line Items]

Notional amount

19,533

₪ 65,220

23,094

₪ 74,000

Mexican Peso

Derivative [Line Items]

Notional amount

14,422

$ 295,500

7,002

$ 140,000

Swiss Franc

Derivative [Line Items]

Notional amount

6,474

SFr 6,100

4,191

SFr 3,700

Australian Dollar

Derivative [Line Items]

Notional amount

$ 4,412

$ 5,800

$ 4,447

$ 5,800

Balance Sheet Components Invent

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Notes To Financial Statements [Abstract]
Raw materials	$ 75,836	$ 76,404
Work in process	40,387	31,393
Finished goods	34,420	31,440
Total inventories	$ 150,643	$ 139,237

Balance Sheet Components Accrue

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 153,898	$ 170,106
Accrued expenses	85,854	77,024
Accrued income taxes	41,539	30,130
Accrued property, plant and equipment	36,857	27,692
Current operating lease liabilities	21,513	21,735
Other accrued liabilities	67,011	78,895
Accrued liabilities	$ 406,672	$ 405,582

Balance Sheet Components Warran

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 12,615	$ 11,205
Charged to cost of net revenues	4,280	3,724
Actual warranty expenditures	(3,160)	(3,140)
Balance at end of period	$ 13,735	$ 11,789

Balance Sheet Components Deferr

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 862,872	$ 777,887
Deferred revenues - long-term	$ 74,226	$ 62,551

Balance Sheet Components Narrat

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 894,771	$ 550,963
Deferred revenues	125,800	$ 95,500
Revenue, remaining performance obligation	$ 963,500
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	5 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2020	$ 444,817
Foreign currency translation adjustments	(17,256)
Balance as of March 31, 2021	427,561
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2020	112,691
Foreign currency translation adjustments	(2,374)
Balance as of March 31, 2021	110,317
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2020	332,126
Foreign currency translation adjustments	(14,882)
Balance as of March 31, 2021	$ 317,244

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount, beginning balance	$ 177,610	$ 177,610
Accumulated Amortization	(45,224)	(41,317)
Accumulated Impairment Loss	(19,258)	(19,258)
Total intangible assets	113,128	117,035
Foreign currency translation	7,351	13,037
Total intangible assets	$ 120,479	$ 130,072
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross Carrying Amount, beginning balance	$ 99,400	$ 99,400
Accumulated Amortization	(15,035)	(12,719)
Accumulated Impairment Loss	(4,328)	(4,328)
Total intangible assets	$ 80,037	$ 82,353
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	$ 55,000
Accumulated Amortization	(22,882)	(21,879)
Accumulated Impairment Loss	(10,751)	(10,751)
Total intangible assets	$ 21,367	$ 22,370
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross Carrying Amount, beginning balance	$ 16,600	$ 16,600
Accumulated Amortization	(3,318)	(2,934)
Accumulated Impairment Loss	(4,179)	(4,179)
Total intangible assets	$ 9,103	$ 9,487
Patents and other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	8 years	8 years
Gross Carrying Amount, beginning balance	$ 6,610	$ 6,610
Accumulated Amortization	(3,989)	(3,785)
Accumulated Impairment Loss	0	0
Total intangible assets	$ 2,621	$ 2,825

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2021	$ 11,715
2022	14,366
2023	13,745
2024	12,805
2025	12,428
Thereafter	48,069
Total intangible assets	$ 113,128	$ 117,035

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 3.9	$ 1.3

Credit Facilities - Additional

Credit Facilities - Additional Information (Details) - USD ($)	Jul. 21, 2020	Mar. 31, 2021	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%

Legal Proceedings - Narrative (

Legal Proceedings - Narrative (Details) $ in Millions	Mar. 12, 2021USD ($)	Nov. 14, 2017Lawsuit	Dec. 31, 2019claim	Aug. 19, 2019claim	Jan. 31, 2019claim
Loss Contingencies [Line Items]
Amount owed from other party | $	$ 43.4
Patent Infringement By 3Shape
Loss Contingencies [Line Items]
Number of lawsuits			2	2
Number of patent lawsuits/complaints | Lawsuit		3
Shareholder Derivative Lawsuit
Loss Contingencies [Line Items]
Number of lawsuits					3

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions	May 03, 2021	Apr. 30, 2021	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount available for repurchase			$ 100
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased	$ 100	$ 100
Stock repurchased (shares)	100,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance			253,444
Shares available for purchase			2,400,000
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance			27,783,379
Shares available for issuance			4,210,089
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Total unamortized compensation cost			$ 163.6
Weighted average period of total unamortized cost (in years)			2 years 8 months 12 days
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Total unamortized compensation cost			$ 60.8
Weighted average period of total unamortized cost (in years)			1 year 4 months 24 days
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%
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%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost			$ 3.9
Weighted average period of total unamortized cost (in years)			4 months 24 days

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
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 27,241	$ 22,927
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,306	1,347
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	21,844	18,130
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 4,091	$ 3,450

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Restricted Stock Units (RSUs)
Number of Shares Underlying RSUs
Unvested as of December 31, 2020 | shares	632
Granted | shares	149
Vested and released | shares	(214)
Forfeited | shares	(7)
Unvested as of March 31, 2021 | shares	560
Weighted Average Grant Date Fair Value
Unvested as of December 31, 2020 | $ / shares	$ 243.55
Granted | $ / shares	598.37
Vested and released | $ / shares	214.65
Forfeited | $ / shares	298.24
Unvested as of March 31, 2021 | $ / shares	$ 348.77
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 8 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 303,402
Market Performance Based Restricted Stock Units
Number of Shares Underlying RSUs
Unvested as of December 31, 2020 | shares	227
Granted | shares	91
Vested and released | shares	(101)
Unvested as of March 31, 2021 | shares	217
Weighted Average Grant Date Fair Value
Unvested as of December 31, 2020 | $ / shares	$ 430.50
Granted | $ / shares	675.44
Vested and released | $ / shares	351.75
Unvested as of March 31, 2021 | $ / shares	$ 569.07
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 4 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 117,620

Stockholders' Equity - Stock-_2

Stockholders' Equity - Stock-based Compensation Employee Stock Purchase Plan Fair Value Assumptions (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Class of Stock [Line Items]
Expected term (in years)	1 year	1 year
Expected volatility	58.80%	41.70%
Risk-free interest rate	0.10%	1.50%
Expected dividends	0.00%	0.00%
Weighted average fair value at grant date (USD per Share)	$ 202.74	$ 80.54
Total unamortized compensation cost	$ 3.9

Accounting for Income Taxes - A

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Disclosure Accounting For Income Taxes Additional Information [Abstract]
Provision for (benefit from) income taxes	$ 61,245	$ (1,464,776)
Effective income tax rate, continuing operations	23.40%	(2745.30%)
One-time tax benefit from intra-entity transfer of certain assets		$ 1,493,500
Unrecognized tax benefits	$ 50,000		$ 46,300
Deferred tax liabilities	$ 32,900		$ 35,700

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
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net income	$ 200,376	$ 1,518,131
Weighted average common shares outstanding, basic	79,000	78,592
Dilutive effect of potential common stock	798	436
Total shares, diluted	79,798	79,028
Net income per share, basic	$ 2.54	$ 19.32
Net income per share, diluted	$ 2.51	$ 19.21
Anti-dilutive potential common shares	76	148

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Non-cash investing and financing activities:
Fixed assets acquired with accounts payable or accrued liabilities	$ 45,354	$ 24,121
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	6,923	6,236
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 7,369	$ 21,602

Segments and Geographical Inf_3

Segments and Geographical Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021segment
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
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Net revenues	$ 894,771	$ 550,963
Gross profit	677,098	394,356
Income from operations	225,446	69,918
Stock-based compensation	27,241	22,927
Depreciation and amortization	25,635	20,738
Interest income	1,643	1,986
Other income (expense), net	34,532	(18,549)
Net income before provision for (benefit from) income taxes	261,621	53,355
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	374,693	180,777
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(149,247)	(110,859)
Stock-based compensation	24,776	20,320
Depreciation and amortization	9,970	8,832
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	753,269	481,611
Gross profit	584,534	351,492
Clear Aligner | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	327,465	166,388
Stock-based compensation	2,294	2,529
Depreciation and amortization	11,120	10,121
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	141,502	69,352
Gross profit	92,564	42,864
Systems and Services | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	47,228	14,389
Stock-based compensation	171	78
Depreciation and amortization	$ 4,545	$ 1,785

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Net revenues	$ 894,771	$ 550,963
United States
Segment Reporting Information [Line Items]
Net revenues	383,002	271,705
Switzerland
Segment Reporting Information [Line Items]
Net revenues	315,450	187,276
China
Segment Reporting Information [Line Items]
Net revenues	61,212	19,725
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 135,107	$ 72,257

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total long-lived assets	$ 846,305	$ 817,274
Switzerland
Segment Reporting Information [Line Items]
Total long-lived assets	267,654	257,337
United States
Segment Reporting Information [Line Items]
Total long-lived assets	180,709	180,539
China
Segment Reporting Information [Line Items]
Total long-lived assets	121,342	113,918
Costa Rica
Segment Reporting Information [Line Items]
Total long-lived assets	98,124	97,804
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	$ 178,476	$ 167,676