Align Technology (ALGN) 10-Q 4 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-32259
Entity Registrant Name	ALIGN TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3267295
Entity Address, Address Line One	410 North Scottsdale Road, Suite 1300
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85281
City Area Code	602
Local Phone Number	742-2000
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ALGN
Security Exchange Name	NASDAQ
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Central Index Key	0001097149
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		78,108,185

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net revenues	$ 969,553	$ 1,010,808	$ 1,942,772	$ 1,905,579
Cost of net revenues	281,994	252,270	545,867	469,943
Gross profit	687,559	758,538	1,396,905	1,435,636
Operating expenses:
Selling, general and administrative	426,398	431,921	865,855	829,036
Research and development	72,965	57,715	144,772	112,252
Total operating expenses	499,363	489,636	1,010,627	941,288
Income from operations	188,196	268,902	386,278	494,348
Interest income	245	383	922	2,026
Other income (expense), net	(14,832)	(483)	(26,105)	34,049
Total interest income and other income (expense), net	(14,587)	(100)	(25,183)	36,075
Net income before provision for income taxes	173,609	268,802	361,095	530,423
Provision for income taxes	60,809	69,088	113,997	130,333
Net income	$ 112,800	$ 199,714	$ 247,098	$ 400,090
Net income per share:
Basic (in usd per share)	$ 1.44	$ 2.53	$ 3.15	$ 5.06
Diluted (in usd per share)	$ 1.44	$ 2.51	$ 3.13	$ 5.02
Shares used in computing net income per share:
Basic (in shares)	78,395	79,008	78,568	79,004
Diluted (in shares)	78,545	79,638	78,840	79,737

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 112,800	$ 199,714	$ 247,098	$ 400,090
Other comprehensive income (loss):
Change in foreign currency translation adjustment, net of tax	(13,756)	586	(21,067)	(13,865)
Change in unrealized gains (losses) on investments, net of tax	(301)	0	(3,029)	(20)
Other comprehensive income (loss)	(14,057)	586	(24,096)	(13,885)
Comprehensive income	$ 98,743	$ 200,300	$ 223,002	$ 386,205

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 877,501	$ 1,099,370
Marketable securities, short-term	22,138	71,972
Accounts receivable, net of allowance for doubtful accounts of $9,520 and $9,245, respectively	931,854	897,198
Inventories	310,046	230,230
Prepaid expenses and other current assets	235,265	195,305
Total current assets	2,376,804	2,494,075
Marketable securities, long-term	77,551	125,320
Property, plant and equipment, net	1,182,444	1,081,926
Operating lease right-of-use assets, net	117,912	121,257
Goodwill	390,100	418,547
Intangible assets, net	93,817	109,709
Deferred tax assets	1,518,648	1,533,767
Other assets	52,843	57,509
Total assets	5,810,119	5,942,110
Current liabilities:
Accounts payable	145,607	163,886
Accrued liabilities	416,459	607,315
Deferred revenues	1,242,348	1,152,870
Total current liabilities	1,804,414	1,924,071
Income tax payable	116,414	118,072
Operating lease liabilities	98,332	102,656
Other long-term liabilities	191,878	174,597
Total liabilities	2,211,038	2,319,396
Commitments and contingencies (Notes 6 and 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)	0	0
Common stock, $0.0001 par value (200,000 shares authorized; 78,059 and 78,710 issued and outstanding, respectively)	8	8
Additional paid-in capital	1,016,882	999,006
Accumulated other comprehensive income (loss), net	(19,770)	4,326
Retained earnings	2,601,961	2,619,374
Total stockholders’ equity	3,599,081	3,622,714
Total liabilities and stockholders’ equity	$ 5,810,119	$ 5,942,110

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9,520	$ 9,245
Preferred stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	78,059,000	78,710,000
Common stock, shares outstanding	78,059,000	78,710,000

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, 2020		78,860
Beginning Balance at Dec. 31, 2020	$ 3,233,865	$ 8	$ 974,556	$ 43,501	$ 2,215,800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	400,090				400,090
Change in unrealized gains (losses) on investments, net of tax	(20)			(20)
Change in foreign currency translation adjustment, net of tax	(13,865)			(13,865)
Issuance of common stock relating to employee equity compensation plans (in shares)		365
Issuance of common stock relating to employee equity compensation plans	13,133		13,133
Tax withholdings related to net share settlements of equity awards	(104,889)		(104,889)
Common stock repurchased and retired (in shares)		(277)
Common stock repurchased and retired	(160,000)		(3,065)		(156,935)
Equity forward contract related to accelerated stock repurchase	(40,000)		(40,000)
Stock-based compensation	56,096		56,096
Ending Balance (in shares) at Jun. 30, 2021		78,948
Ending Balance at Jun. 30, 2021	3,384,410	$ 8	895,831	29,616	2,458,955
Beginning Balance (in shares) at Mar. 31, 2021		79,136
Beginning Balance at Mar. 31, 2021	3,393,576	$ 8	948,362	29,030	2,416,176
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	199,714				199,714
Change in unrealized gains (losses) on investments, net of tax	0
Change in foreign currency translation adjustment, net of tax	586			586
Issuance of common stock relating to employee equity compensation plans (in shares)		89
Issuance of common stock relating to employee equity compensation plans	0
Tax withholdings related to net share settlements of equity awards	(38,321)		(38,321)
Common stock repurchased and retired (in shares)		(277)
Common stock repurchased and retired	(160,000)		(3,065)		(156,935)
Equity forward contract related to accelerated stock repurchase	(40,000)		(40,000)
Stock-based compensation	28,855		28,855
Ending Balance (in shares) at Jun. 30, 2021		78,948
Ending Balance at Jun. 30, 2021	3,384,410	$ 8	895,831	29,616	2,458,955
Beginning Balance (in shares) at Dec. 31, 2021		78,710
Beginning Balance at Dec. 31, 2021	3,622,714	$ 8	999,006	4,326	2,619,374
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	247,098				247,098
Change in unrealized gains (losses) on investments, net of tax	(3,029)			(3,029)
Change in foreign currency translation adjustment, net of tax	(21,067)			(21,067)
Issuance of common stock relating to employee equity compensation plans (in shares)		250
Issuance of common stock relating to employee equity compensation plans	14,827		14,827
Tax withholdings related to net share settlements of equity awards	(52,187)		(52,187)
Common stock repurchased and retired (in shares)		(901)
Common stock repurchased and retired	(275,036)		(10,525)		(264,511)
Stock-based compensation	65,761		65,761
Ending Balance (in shares) at Jun. 30, 2022		78,059
Ending Balance at Jun. 30, 2022	3,599,081	$ 8	1,016,882	(19,770)	2,601,961
Beginning Balance (in shares) at Mar. 31, 2022		78,805
Beginning Balance at Mar. 31, 2022	3,666,852	$ 8	992,287	(5,713)	2,680,270
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	112,800				112,800
Change in unrealized gains (losses) on investments, net of tax	(301)			(301)
Change in foreign currency translation adjustment, net of tax	(13,756)			(13,756)
Issuance of common stock relating to employee equity compensation plans (in shares)		11
Issuance of common stock relating to employee equity compensation plans	0
Tax withholdings related to net share settlements of equity awards	(654)		(654)
Common stock repurchased and retired (in shares)		(757)
Common stock repurchased and retired	(200,000)		(8,891)		(191,109)
Stock-based compensation	34,140		34,140
Ending Balance (in shares) at Jun. 30, 2022		78,059
Ending Balance at Jun. 30, 2022	$ 3,599,081	$ 8	$ 1,016,882	$ (19,770)	$ 2,601,961

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 247,098	$ 400,090
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	14,747	39,961
Depreciation and amortization	59,907	51,527
Stock-based compensation	65,761	56,096
Non-cash operating lease cost	15,075	12,413
Arbitration award gain	0	(43,403)
Other non-cash operating activities	16,172	13,174
Changes in assets and liabilities:
Accounts receivable	(53,462)	(164,822)
Inventories	(91,060)	(49,070)
Prepaid expenses and other assets	(14,219)	(70,132)
Accounts payable	(23,944)	(5,736)
Accrued and other long-term liabilities	(212,896)	65,650
Long-term income tax payable	(1,657)	7,535
Deferred revenues	136,021	231,408
Net cash provided by operating activities	157,543	544,691
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(163,348)	(167,668)
Purchase of marketable securities	(20,466)	0
Proceeds from maturities of marketable securities	21,690	0
Proceeds from sales of marketable securities	92,235	0
Repayment on unsecured promissory note	0	4,594
Proceeds from arbitration award	0	43,403
Other investing activities	(2,189)	(4,249)
Net cash used in investing activities	(72,078)	(123,920)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	14,827	13,133
Common stock repurchases	(275,036)	(160,000)
Payments for equity forward contracts related to accelerated share repurchase agreements	0	(40,000)
Payroll taxes paid upon the vesting of equity awards	(52,187)	(104,889)
Net cash used in financing activities	(312,396)	(291,756)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	4,978	(3,511)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(221,953)	125,504
Cash, cash equivalents, and restricted cash at beginning of the period	1,100,139	961,474
Cash, cash equivalents, and restricted cash at end of the period	$ 878,186	$ 1,086,978

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2021, and contains all adjustments, including normal recurring adjustments, necessary to state fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other future period, and we make no representations related thereto. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes, contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Certain Risks and Uncertainties The military conflict between Russia and Ukraine and its impact on the economy has caused significant worldwide challenges. While the situation is highly uncertain and evolving, its impact on the economy, including inflation, volatilities in the financial market, supply chain challenges, impacts on consumer confidence, purchasing power, sanctions and retaliatory sanctions among others, have impacted and could potentially subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. Further, as the COVID-19 pandemic continues and new variants of the virus emerge, we are continuing to see fluctuations in the numbers of patients seeking treatment for dental services and the number of doctors providing services and treatments globally. The full extent to which the pandemic, including as a result of any new variants, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined. Additionally, we could also be materially adversely affected by uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers. Revenue Recognition Our revenues are derived primarily from the sale of aligners, scanners, and services from our Clear Aligner and Systems and Services segments. We enter into sales contracts that may consist of multiple distinct performance obligations where certain performance obligations of the sales contract are not delivered in one reporting period. We measure and allocate revenues according to ASC 606-10, “Revenues from Contracts with Customers.” We identify a performance obligation as distinct if both of the following criteria are met: the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Determining the standalone selling price (“SSP”) in order to allocate consideration from the contract to the individual performance obligations is the result of various factors, such as changing trends and market conditions, historical prices, costs, and gross margins. While changes in the allocation of the SSP between performance obligations will not affect the amount of total revenues recognized for a particular contract, any material changes could impact the timing of revenue recognition, which would have a material effect on our financial position and result of operations. This is because the contract consideration is allocated to each performance obligation, delivered or undelivered, at the inception of the contract based on the SSP of each distinct performance obligation. Clear Aligner We enter into contracts (“treatment plan(s)”) that involve multiple future performance obligations. Invisalign Comprehensive, Invisalign First, Invisalign Moderate, and Lite and Express Packages include optional additional aligners at no charge for a certain period of time ranging from six months to five years after initial shipment, and Invisalign Go and Invisalign Go Plus includes optional additional aligners at no charge for a period of up to two years after initial shipment. Our treatment plans comprise the following performance obligations that also represent distinct deliverables: initial aligners, the option of additional aligners, case refinement, and replacement aligners. We take the practical expedient to consider shipping and handling costs as activities to fulfill the performance obligation. We allocate revenues for each treatment plan based on each unit’s SSP. Management considers a variety of factors such as same or similar product historical sales, costs, and gross margin, which may vary over time depending upon the unique facts and circumstances related to each performance obligation in making these estimates. In addition to historical data, we take into consideration changing trends and market conditions. For treatment plans with multiple future performance obligations, we also consider usage rates, which is the number of times a customer is expected to order additional aligners. Our process for estimating usage rates requires significant judgment and evaluation of inputs, including historical usage data by region, country and channel. We recognize the revenues upon shipment, as the customers obtain physical possession, and we have enforceable rights to payment. As we collect most consideration upfront, we consider whether a significant financing component exists; however, as the delivery of the performance obligations are at the customer’s discretion, we conclude that no significant financing component exists. Systems and Services We sell intraoral scanners and CAD/CAM services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/or extended warranty, we allocate revenues based on the respective SSP of the scanner and the subscription service. We estimate the SSP of each element, taking into account factors such as same or similar historical prices and discounting strategies. Revenues are then recognized over time as the monthly services are rendered and upon shipment of the scanner, as that is when we deem the customer to have obtained control. CAD/CAM services, where sold separately, include the initial software license and maintenance and support. We allocate revenues based upon the respective SSPs of the software license and the maintenance and support. We estimate the SSP of each element using data such as historical prices. Revenues related to the software license are recognized upfront and revenues related to the maintenance and support are recognized over time. For both scanner and service sales, most consideration is collected upfront and in cases where there are payment plans, consideration is collected within one year and, therefore, there are no significant financing components. Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board and do not believe any of the recently issued accounting pronouncements will have a material impact on our consolidated financial statements or related disclosures.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2022
Investments, All Other Investments [Abstract]
Financial Instruments	Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (in thousands): Reported as: June 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 758,365 $ — $ — $ 758,365 $ 758,365 $ — $ — Money market funds 119,148 — (12) 119,136 119,136 — — Corporate bonds 70,808 — (2,812) 67,996 — 8,488 59,508 U.S. government treasury bonds 18,609 — (495) 18,114 — 6,490 11,624 Asset-backed securities 7,042 — (59) 6,983 — 3,113 3,870 Municipal bonds 5,541 — (100) 5,441 — 4,047 1,394 U.S. government agency bonds 1,201 — (46) 1,155 — — 1,155 Total $ 980,714 $ — $ (3,524) $ 977,190 $ 877,501 $ 22,138 $ 77,551 Reported as: December 31, 2021 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 754,802 $ — $ — $ 754,802 $ 754,802 $ — $ — Money market funds 343,012 — (2) 343,010 343,010 — — Corporate bonds 115,507 9 (398) 115,118 1,042 35,065 79,011 U.S. government treasury bonds 42,976 — (48) 42,928 — 22,251 20,677 Asset-backed securities 32,031 — (40) 31,991 — 10,999 20,992 Municipal bonds 7,628 — (15) 7,613 516 3,657 3,440 U.S. government agency bonds 1,201 — (1) 1,200 — — 1,200 Total $ 1,297,157 $ 9 $ (504) $ 1,296,662 $ 1,099,370 $ 71,972 $ 125,320 The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Due in 1 year or less $ 17,185 $ 59,737 Due in 1 year through 5 years 82,504 139,113 Total $ 99,689 $ 198,850 The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Our unrealized losses as of June 30, 2022 and December 31, 2021 are primarily due to changes in interest rates and credit spreads. Fair Value Measurements Fair value is an exit price, representing the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value: Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. We obtain fair values for our Level 2 investments. Our custody bank and asset managers independently use professional pricing services to gather pricing data which may include quoted market prices for identical or comparable financial instruments, or inputs other than quoted prices that are observable either directly or indirectly, and we are ultimately responsible for these underlying estimates. Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. The following tables summarize our financial assets measured at fair value as of June 30, 2022 and December 31, 2021 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 119,136 $ 119,136 $ — $ — Short-term investments: U.S. government treasury bonds 6,490 6,490 — — Corporate bonds 8,488 — 8,488 — Municipal bonds 4,047 — 4,047 — Asset-backed securities 3,113 — 3,113 — Long-term investments: U.S. government treasury bonds 11,624 11,624 — — Corporate bonds 59,508 — 59,508 — Municipal bonds 1,394 — 1,394 — U.S. government agency bonds 1,155 — 1,155 — Asset-backed securities 3,870 — 3,870 — Other assets: Investments in privately held companies 11,793 — — 11,793 $ 230,618 $ 137,250 $ 81,575 $ 11,793 Description Balance as of December 31, 2021 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 343,010 $ 343,010 $ — $ — Corporate bonds 1,042 — 1,042 — Municipal bonds 516 — 516 — Short-term investments: U.S. government treasury bonds 22,251 22,251 — — Corporate bonds 35,065 — 35,065 — Municipal bonds 3,657 — 3,657 — Asset-backed securities 10,999 — 10,999 — Long-term investments: U.S. government treasury bonds 20,677 20,677 — — Corporate bonds 79,011 — 79,011 — Municipal bonds 3,440 — 3,440 — U.S. government agency bonds 1,200 — 1,200 — Asset-backed securities 20,992 — 20,992 — Prepaid expenses and other current assets: Israeli funds 3,841 — 3,841 — Other assets: Investments in privately held companies 8,621 — — 8,621 $ 554,322 $ 385,938 $ 159,763 $ 8,621 Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, during the three months ended June 30, 2022 and 2021, we recognized a net gain of $10.8 million and a net loss of $13.0 million, respectively, and during the six months ended June 30, 2022 we recognized a net gain of $9.2 million. The net loss recognized during the six months ended June 30, 2021 was not material. As of June 30, 2022 and December 31, 2021, the fair value of foreign exchange forward contracts outstanding was not material. The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €147,830 $ 154,164 Chinese Yuan ¥719,300 107,297 Polish Zloty PLN351,500 77,556 Canadian Dollar C$95,200 73,748 Brazilian Real R$317,000 59,913 Japanese Yen ¥6,081,000 44,744 British Pound £34,097 41,333 Swiss Franc CHF22,500 23,536 Mexican Peso M$282,700 13,988 Israeli Shekel ILS43,160 12,380 Australian Dollar A$4,600 3,170 $ 611,829 December 31, 2021 Local Currency Amount Notional Contract Amount (USD) Euro €165,110 $ 186,358 Canadian Dollar C$99,800 78,018 Chinese Yuan ¥494,500 77,358 Polish Zloty PLN219,800 54,014 Brazilian Real R$286,500 50,894 Japanese Yen ¥5,548,700 48,206 British Pound £34,740 46,881 Israeli Shekel ILS54,110 17,416 Mexican Peso M$311,500 15,133 Swiss Franc CHF9,950 10,883 Australian Dollar A$6,900 5,009 $ 590,170

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): June 30, December 31, Raw materials $ 159,037 $ 123,234 Work in process 82,292 51,706 Finished goods 68,717 55,290 Total inventories $ 310,046 $ 230,230 Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, Value added tax receivables $ 110,988 $ 93,610 Prepaid expenses 61,628 70,218 Other current assets 62,649 31,477 Total prepaid expenses and other current assets $ 235,265 $ 195,305 Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and benefits $ 152,849 $ 288,355 Accrued expenses 74,281 67,169 Accrued sales and marketing expenses 37,250 41,387 Accrued property, plant and equipment 35,563 46,561 Current operating lease liabilities 24,613 22,719 Accrued professional fees 18,433 31,457 Other accrued liabilities 73,470 109,667 Total accrued liabilities $ 416,459 $ 607,315 Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Six Months Ended 2022 2021 Balance at beginning of period $ 16,169 $ 12,615 Charged to cost of net revenues 7,660 8,936 Actual warranty expenditures (7,334) (7,105) Balance at end of period $ 16,495 $ 14,446 Deferred revenues consist of the following (in thousands): June 30, December 31, Deferred revenues - current $ 1,242,348 $ 1,152,870 Deferred revenues - long-term 1 $ 155,510 $ 136,684 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet During the three months ended June 30, 2022 and 2021, we recognized $969.6 million and $1,010.8 million of net revenues, respectively, of which $178.4 million and $134.4 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively. During the six months ended June 30, 2022 and 2021, we recognized $1,942.8 million and $1,905.6 million of net revenues, respectively, of which $363.3 million and $260.2 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively.

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The change in the carrying value of goodwill for the six months ended June 30, 2022, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2021 $ 112,208 $ 306,339 $ 418,547 Foreign currency translation adjustments (3,804) (24,643) (28,447) Balance as of June 30, 2022 $ 108,404 $ 281,696 $ 390,100 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 Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 104,531 $ (27,640) $ (4,328) $ 72,563 Customer relationships 10 21,500 (4,838) — 16,662 Trademarks and tradenames 10 17,200 (5,466) (4,179) 7,555 Patents 8 6,511 (4,891) — 1,620 $ 149,742 $ (42,835) $ (8,507) 98,400 Foreign currency translation adjustments (4,583) Total intangible assets, net 1 $ 93,817 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 104,531 $ (22,495) $ (4,328) $ 77,708 Customer relationships 11 55,000 (25,891) (10,751) 18,358 Trademarks and tradenames 10 17,200 (4,547) (4,179) 8,474 Patents 8 6,511 (4,495) — 2,016 $ 183,242 $ (57,428) $ (19,258) 106,556 Foreign currency translation adjustments 3,153 Total intangible assets, net $ 109,709 The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2022 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2022 $ 7,536 2023 14,997 2024 13,831 2025 13,455 2026 12,849 Thereafter 35,732 Total $ 98,400

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Credit Facility	Credit FacilityOn July 21, 2020, we entered into a credit facility for a $300.0 million unsecured revolving line of credit with a $50.0 million letter of credit sublimit and a maturity date of July 21, 2023 (“2020 Credit Facility”). The 2020 Credit Facility requires us to comply with specific financial conditions and performance requirements. Loans under the 2020 Credit Facility bear interest, at our option, at either a rate based on the reserve adjusted LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate is the highest of the credit facility's publicly announced prime rate, the federal funds rate plus 0.50% and one-month LIBOR plus 1.0%. The margin ranges from 1.50% to 2.25% for LIBOR loans and 0.50% to 1.25% for base rate loans. The 2020 Credit Facility allows for an alternative rate to be identified if LIBOR is no longer available. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (and at three month intervals if the interest period exceeds three months) in the case of LIBOR loans. The outstanding principal, together with accrued and unpaid interest, is due on the maturity date. As of June 30, 2022, we had no outstanding borrowings under the 2020 Credit Facility and were in compliance with the conditions and performance requirements in all material respects.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2022
Legal Proceedings [Abstract]
Legal Proceedings	Legal Proceedings 2019 Shareholder Derivative Lawsuit In January 2019, three derivative lawsuits were filed in the U.S. District Court for the Northern District of California which were later consolidated, purportedly on behalf of Align, naming as defendants the then current members of our Board of Directors along with certain of our executive officers. The complaints assert various state law causes of action, including for breaches of fiduciary duty, insider trading, and unjust enrichment. The complaints seek unspecified monetary damages on behalf of Align, which is named solely as a nominal defendant against whom no recovery is sought, as well as disgorgement and the costs and expenses associated with the litigation, including attorneys’ fees. The consolidated action was stayed until April 28, 2022. Defendants have not yet responded to the complaints. On April 12, 2019, a derivative lawsuit was also filed in California Superior Court for Santa Clara County, purportedly on behalf of Align, naming as defendants the members of our Board of Directors along with certain of our executive officers. The allegations in the complaint are similar to those in the derivative suits described above. The matter was similarly stayed until April 28, 2022. Defendants have not yet responded to the complaint. Align believes these claims are without merit. Align is currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss . 2020 Securities Class Action Lawsuit On March 2, 2020, a class action lawsuit against Align and two of our executive officers was filed in the U.S. District Court for the Southern District of New York (later transferred to the U.S. District Court for the Northern District of California) on behalf of a purported class of purchasers of our common stock. The complaint alleged claims under the federal securities laws and sought monetary damages in an unspecified amount and costs and expenses incurred in the litigation. The lead plaintiff filed an amended complaint on August 4, 2020 against Align and three of our executive officers alleging similar claims as in the initial complaint on behalf of a purported class of purchasers of our common stock from April 25, 2019 to July 24, 2019. On March 29, 2021, defendants’ motion to dismiss the amended complaint was granted with leave for the lead plaintiff to file a further amended complaint. On April 22, 2021, lead plaintiff filed a notice stating it would not file a further amended complaint. On April 23, 2021, the Court dismissed the action with prejudice and judgment was entered. Lead plaintiff filed a notice of appeal on April 28, 2021 and filed its opening appeal brief with the United States Court of Appeals for the Ninth Circuit on September 1, 2021. The defendants-appellees filed their answering brief on November 22, 2021. The lead plaintiff-appellant’s reply brief was filed on January 12, 2022. Oral argument was held on March 10, 2022. On July 8, 2022, a panel of the Ninth Circuit affirmed the district court order dismissing the compla int. On July 21, 2022, plaintiff-appellant filed a petition for rehearing or hearing en banc, which is pending. Align believes th ese 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 is stayed pending resolution of the appeal in the 2020 Securities Class Action Lawsuit. Align believes these claims are without merit. Align is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. Antitrust Class Actions On June 5, 2020, a dental practice named Simon and Simon, PC doing business as City Smiles brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of itself and a putative class of similarly situated practices seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanner markets. Plaintiff filed an amended complaint and added VIP Dental Spas as a plaintiff on August 14, 2020. A jury trial is scheduled to begin in this matter on June 29, 2024. Align believes the plaintiffs’ claims are without merit and intends to vigorously defend itself. On May 3, 2021, an individual named Misty Snow brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of herself and a putative class of similarly situated individuals seeking monetary damages and injunctive relief relating to Align’s alleged market activities in alleged clear aligner and intraoral scanner markets. Plaintiff filed an amended complaint on July 30, 2021 adding new plaintiffs and various state law claims. Plaintiffs filed a second amended complaint on October 21, 2021. On March 2, 2022, Plaintiffs filed a third amended complaint. A jury trial is scheduled to begin in this matter on June 29, 2024. 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 U.S., and enjoined from using the SDC Entities’ confidential information. The arbitrator extended the expiration date of specified aspects of the restrictive covenant to August 18, 2022. The arbitrator also ordered Align to tender its SDC Financial LLC membership interests to the SDC Entities for a purchase price equal to the “capital account” balance as of October 31, 2017, to be determined in accordance with the applicable provisions of the SDC Operating Agreements. No financial damages were awarded to the SDC Entities. The Circuit Court for Cook County, Illinois confirmed the Award on April 29, 2019. On August 27, 2020, Align initiated a confidential arbitration proceeding against SmileDirectClub LLC (“SDC”) before the American Arbitration Association in San Jose, California. This arbitration relates to the Strategic Supply Agreement (“Supply Agreement”) entered into between the parties in 2016. The complaint alleges that SDC 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. On May 3, 2022, SDC filed an additional counterclaim alleging that Align breached the Supply Agreement. Align denies SDC's allegations in the counterclaims and will vigorously defend itself against them. The arbitration hearing on Align’s claims and SDC’s first counterclaim was held on July 18-27, 2022 in Chicago, Illinois. The arbitration hearing on SDC’s second counterclaim is set for February 20-24, 2023. Align is currently unable to predict the outcome of these disputes and therefore cannot determine the likelihood of loss or success nor estimate a range of possible loss or success, if any. In addition to the above, in the ordinary course of Align’s operations, Align is involved in a variety of claims, suits, investigations, and proceedings, including actions with respect to intellectual property claims, patent infringement claims, government investigations, labor and employment claims, breach of contract claims, tax, and other matters. Regardless of the

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Off-Balance Sheet Arrangements As of June 30, 2022, we had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in Note 11 “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Indemnification Provisions In the normal course of business to facilitate transactions in our services and products, we indemnify certain parties: customers, vendors, lessors, and other parties with respect to certain matters, including, but not limited to, services to be provided by us and intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and our executive officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of June 30, 2022, we did not have any material indemnification claims that were probable or reasonably possible.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity As of June 30, 2022, the 2005 Incentive Plan, as amended, has a total reserve of 27,783,379 shares of which 3,744,033 shares are available for issuance. Summary of Stock-Based Compensation Expense The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Cost of net revenues $ 1,614 $ 1,418 $ 3,128 $ 2,724 Selling, general and administrative 26,491 23,058 51,216 44,902 Research and development 6,035 4,379 11,417 8,470 Total stock-based compensation $ 34,140 $ 28,855 $ 65,761 $ 56,096 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 six months ended June 30, 2022 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, 2021 492 $ 369.17 Granted 232 485.01 Vested and released (189) 333.28 Forfeited (22) 429.13 Unvested as of June 30, 2022 513 $ 432.28 1.6 $ 121,475 As of June 30, 2022, we expect to recognize $174.7 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 2.6 years. Market-Performance Based Restricted Stock Units (“MSUs”) We grant MSUs to members of senior management. Each MSU represents the right to one share of Align’s common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of Align’s stock price relative to the performance of a stock market index over the vesting period. MSUs vest over a period of three years and the maximum number eligible to vest in the future is 250% of the MSUs initially granted. The following table summarizes the MSU performance for the six months ended June 30, 2022: Number of Shares Underlying MSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Unvested as of December 31, 2021 174 $ 551.57 Granted 1 101 607.96 Vested and released (128) 396.10 Forfeited (3) 744.39 Unvested as of June 30, 2022 144 $ 725.73 1.5 $ 34,097 1 Includes MSUs vested during the period above 100% of the grant as actual shares released is based on Align ’ s stock performance over the vesting period. As of June 30, 2022, we expect to recognize $55.2 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 1.5 years. Employee Stock Purchase Plan As of June 30, 2022, we have 2,156,295 shares available for future issuance under our Amended and Restated 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”). The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended 2022 2021 Expected term (in years) 1.5 1.0 Expected volatility 48.6 % 58.8 % Risk-free interest rate 1.0 % 0.1 % Expected dividends — — Weighted average fair value at grant date $ 196.97 $ 202.74

Common Stock Repurchase Program

Common Stock Repurchase Program	6 Months Ended
	Jun. 30, 2022
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Program	Common Stock Repurchase Program In May 2018, our Board of Directors authorized a plan to repurchase up to $600.0 million of our common stock (“May 2018 Repurchase Program”). As of December 31, 2021, the authorization under the May 2018 Repurchase Program was completed. In May 2021, our Board of Directors authorized a plan to repurchase up to $1.0 billion of our common stock (“May 2021 Repurchase Program”). As of June 30, 2022, we have $449.9 million available for repurchases under the May 2021 Repurchase Program. Accelerated Share Repurchase Agreements (“ASRs”) During the six months ended June 30, 2022 and 2021, we entered into ASRs providing for the repurchase of our common stock based on the volume-weighted average price during the term of the agreement, less an agreed upon discount. The following table summarizes the information regarding repurchases of our common stock under ASRs: Agreement Repurchase Amount Paid Completion Total Shares Average Price per Share Q2 2021 May 2018 $ 100.0 Q3 2021 171,322 $ 583.70 Q2 2021 May 2021 $ 100.0 Q3 2021 161,707 $ 618.40 Q2 2022 May 2021 $ 200.0 Q2 2022 756,502 $ 264.37 Open Market Common Stock Repurchases During the six months ended June 30, 2022, we repurchased on the open market approximately 0.1 million shares of our common stock at an average price of $522.61 per share, including commissions and fees, for an aggregate purchase price of $75.0 million.

Accounting for Income Taxes

Accounting for Income Taxes	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $60.8 million and $69.1 million for the three months ended June 30, 2022 and 2021, respectively, representing effective tax rates of 35.0% and 25.7%, respectively. Our provision for income taxes was $114.0 million and $130.3 million for the six months ended June 30, 2022 and 2021, respectively, representing effective tax rates of 31.6% and 24.6%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three and six months ended June 30, 2022 and 2021 primarily due to the recognition of additional tax expense resulting from foreign income taxed at different rates, state income taxes, and non-deductible expenses in the U.S., partially offset by the recognition of excess tax benefits related to stock-based compensation. Additionally, a change in U.S. tax laws effective January 1, 2022 which requires capitalization and amortization of research and development expenses incurred after December 31, 2021 has increased our effective tax rate for the three and six months ended June 30, 2022. We exercise significant judgment in regards to estimates of future market growth, forecasted earnings and projected taxable income in determining the provision for income taxes and for purposes of assessing our ability to utilize any future benefit from deferred tax assets. We continue to assess the realizability of the deferred tax assets as we take into account new information. We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions include U.S. federal, the State of California and Switzerland. For U.S. federal and state tax returns, we are no longer subject to tax examinations for years before 2018 and 2017, respectively. Our Israeli subsidiary is under tax audit for years 2016 through 2019. During the fourth quarter of 2021, the Israel Tax Authority issued a tax assessment in connection with a 2016 transaction to which our Israeli subsidiary was a party. We filed an administrative appeal challenging the assessment during the first quarter of 2022 and, by doing so, proceeded to the next administrative stage of the audit. We will continue to vigorously defend our Israeli subsidiary’s tax return position. Based on our assessment of the information currently available, we have not derecognized or remeasured our tax positions with respect to this matter during the six months ended June 30, 2022. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2015. Our total gross unrecognized tax benefits, excluding interest and penalties, were $73.2 million and $63.3 million as of June 30, 2022 and December 31, 2021, respectively, a material amount of which would impact our effective tax rate if recognized. We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share	Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income $ 112,800 $ 199,714 $ 247,098 $ 400,090 Denominator: Weighted average common shares outstanding, basic 78,395 79,008 78,568 79,004 Dilutive effect of potential common stock 150 630 272 733 Total shares, diluted 78,545 79,638 78,840 79,737 Net income per share, basic $ 1.44 $ 2.53 $ 3.15 $ 5.06 Net income per share, diluted $ 1.44 $ 2.51 $ 3.13 $ 5.02 Anti-dilutive potential common shares 1 361 49 314 38 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	6 Months Ended
	Jun. 30, 2022
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The supplemental cash flow information consists of the following (in thousands): Six Months Ended 2022 2021 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 60,115 $ 133,530 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15,048 $ 14,030 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 16,351 $ 24,338

Segments and Geographical Infor

Segments and Geographical Information	6 Months Ended
	Jun. 30, 2022
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 Six Months Ended 2022 2021 2022 2021 Net revenues Clear Aligner $ 798,398 $ 840,959 $ 1,608,094 $ 1,594,228 Systems and Services 171,155 169,849 334,678 311,351 Total net revenues $ 969,553 $ 1,010,808 $ 1,942,772 $ 1,905,579 Gross profit Clear Aligner $ 585,245 $ 646,665 $ 1,190,941 $ 1,231,199 Systems and Services 102,314 111,873 205,964 204,437 Total gross profit $ 687,559 $ 758,538 $ 1,396,905 $ 1,435,636 Income from operations Clear Aligner $ 307,209 $ 347,626 $ 619,928 $ 675,091 Systems and Services 45,599 64,675 96,398 111,903 Unallocated corporate expenses (164,612) (143,399) (330,048) (292,646) Total income from operations $ 188,196 $ 268,902 $ 386,278 $ 494,348 Stock-based compensation Clear Aligner $ 3,001 $ 2,632 $ 5,855 $ 4,926 Systems and Services 236 174 450 345 Unallocated corporate expenses 30,903 26,049 59,456 50,825 Total stock-based compensation $ 34,140 $ 28,855 $ 65,761 $ 56,096 Depreciation and amortization Clear Aligner $ 14,029 $ 12,170 $ 27,796 $ 23,290 Systems and Services 6,776 4,622 13,698 9,167 Unallocated corporate expenses 9,476 9,100 18,413 19,070 Total depreciation and amortization $ 30,281 $ 25,892 $ 59,907 $ 51,527 The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Total segment income from operations $ 352,808 $ 412,301 $ 716,326 $ 786,994 Unallocated corporate expenses (164,612) (143,399) (330,048) (292,646) Total income from operations 188,196 268,902 386,278 494,348 Interest income 245 383 922 2,026 Other income (expense), net (14,832) (483) (26,105) 34,049 Net income before provision for income taxes $ 173,609 $ 268,802 $ 361,095 $ 530,423 Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Net revenues 1 : U.S. $ 430,053 $ 434,398 $ 850,973 $ 817,400 Switzerland 330,351 366,334 662,090 681,784 Other International 209,149 210,076 429,709 406,395 Total net revenues $ 969,553 $ 1,010,808 $ 1,942,772 $ 1,905,579 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): June 30, December 31, 2021 Long-lived assets 1 : Switzerland $ 499,626 $ 444,205 U.S. 212,071 210,582 China 123,180 125,346 Other International 465,479 423,050 Total long-lived assets $ 1,300,356 $ 1,203,183 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)	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2021, and contains all adjustments, including normal recurring adjustments, necessary to state fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”).
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, contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Certain Risk and Uncertainties	Certain Risks and Uncertainties The military conflict between Russia and Ukraine and its impact on the economy has caused significant worldwide challenges. While the situation is highly uncertain and evolving, its impact on the economy, including inflation, volatilities in the financial market, supply chain challenges, impacts on consumer confidence, purchasing power, sanctions and retaliatory sanctions among others, have impacted and could potentially subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. Further, as the COVID-19 pandemic continues and new variants of the virus emerge, we are continuing to see fluctuations in the numbers of patients seeking treatment for dental services and the number of doctors providing services and treatments globally. The full extent to which the pandemic, including as a result of any new variants, business restrictions or lockdowns, and the impact of vaccinations, will directly or indirectly impact our business, results of operations, cash flows, and financial condition will depend on future developments that are highly uncertain and cannot be accurately determined. Additionally, we could also be materially adversely affected by uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers.
Revenue Recognition	Revenue Recognition Our revenues are derived primarily from the sale of aligners, scanners, and services from our Clear Aligner and Systems and Services segments. We enter into sales contracts that may consist of multiple distinct performance obligations where certain performance obligations of the sales contract are not delivered in one reporting period. We measure and allocate revenues according to ASC 606-10, “Revenues from Contracts with Customers.” We identify a performance obligation as distinct if both of the following criteria are met: the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Determining the standalone selling price (“SSP”) in order to allocate consideration from the contract to the individual performance obligations is the result of various factors, such as changing trends and market conditions, historical prices, costs, and gross margins. While changes in the allocation of the SSP between performance obligations will not affect the amount of total revenues recognized for a particular contract, any material changes could impact the timing of revenue recognition, which would have a material effect on our financial position and result of operations. This is because the contract consideration is allocated to each performance obligation, delivered or undelivered, at the inception of the contract based on the SSP of each distinct performance obligation. Clear Aligner We enter into contracts (“treatment plan(s)”) that involve multiple future performance obligations. Invisalign Comprehensive, Invisalign First, Invisalign Moderate, and Lite and Express Packages include optional additional aligners at no charge for a certain period of time ranging from six months to five years after initial shipment, and Invisalign Go and Invisalign Go Plus includes optional additional aligners at no charge for a period of up to two years after initial shipment. Our treatment plans comprise the following performance obligations that also represent distinct deliverables: initial aligners, the option of additional aligners, case refinement, and replacement aligners. We take the practical expedient to consider shipping and handling costs as activities to fulfill the performance obligation. We allocate revenues for each treatment plan based on each unit’s SSP. Management considers a variety of factors such as same or similar product historical sales, costs, and gross margin, which may vary over time depending upon the unique facts and circumstances related to each performance obligation in making these estimates. In addition to historical data, we take into consideration changing trends and market conditions. For treatment plans with multiple future performance obligations, we also consider usage rates, which is the number of times a customer is expected to order additional aligners. Our process for estimating usage rates requires significant judgment and evaluation of inputs, including historical usage data by region, country and channel. We recognize the revenues upon shipment, as the customers obtain physical possession, and we have enforceable rights to payment. As we collect most consideration upfront, we consider whether a significant financing component exists; however, as the delivery of the performance obligations are at the customer’s discretion, we conclude that no significant financing component exists. Systems and Services We sell intraoral scanners and CAD/CAM services through both our direct sales force and distribution partners. The intraoral scanner sales price includes one year of warranty and unlimited scanning services. The customer may also select, for additional fees, extended warranty and unlimited scanning services for periods beyond the initial year. When intraoral scanners are sold with an unlimited scanning service agreement and/or extended warranty, we allocate revenues based on the respective SSP of the scanner and the subscription service. We estimate the SSP of each element, taking into account factors such as same or similar historical prices and discounting strategies. Revenues are then recognized over time as the monthly services are rendered and upon shipment of the scanner, as that is when we deem the customer to have obtained control. CAD/CAM services, where sold separately, include the initial software license and maintenance and support. We allocate revenues based upon the respective SSPs of the software license and the maintenance and support. We estimate the SSP of each element using data such as historical prices. Revenues related to the software license are recognized upfront and revenues related to the maintenance and support are recognized over time. For both scanner and service sales, most consideration is collected upfront and in cases where there are payment plans, consideration is collected within one year and, therefore, there are no significant financing components.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board and do not believe any of the recently issued accounting pronouncements will have a material impact on our consolidated financial statements or related disclosures.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2022
Investments, All Other Investments [Abstract]
Cash and Cash Equivalents	The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (in thousands): Reported as: June 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 758,365 $ — $ — $ 758,365 $ 758,365 $ — $ — Money market funds 119,148 — (12) 119,136 119,136 — — Corporate bonds 70,808 — (2,812) 67,996 — 8,488 59,508 U.S. government treasury bonds 18,609 — (495) 18,114 — 6,490 11,624 Asset-backed securities 7,042 — (59) 6,983 — 3,113 3,870 Municipal bonds 5,541 — (100) 5,441 — 4,047 1,394 U.S. government agency bonds 1,201 — (46) 1,155 — — 1,155 Total $ 980,714 $ — $ (3,524) $ 977,190 $ 877,501 $ 22,138 $ 77,551 Reported as: December 31, 2021 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 754,802 $ — $ — $ 754,802 $ 754,802 $ — $ — Money market funds 343,012 — (2) 343,010 343,010 — — Corporate bonds 115,507 9 (398) 115,118 1,042 35,065 79,011 U.S. government treasury bonds 42,976 — (48) 42,928 — 22,251 20,677 Asset-backed securities 32,031 — (40) 31,991 — 10,999 20,992 Municipal bonds 7,628 — (15) 7,613 516 3,657 3,440 U.S. government agency bonds 1,201 — (1) 1,200 — — 1,200 Total $ 1,297,157 $ 9 $ (504) $ 1,296,662 $ 1,099,370 $ 71,972 $ 125,320
Marketable Securities	The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (in thousands): Reported as: June 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 758,365 $ — $ — $ 758,365 $ 758,365 $ — $ — Money market funds 119,148 — (12) 119,136 119,136 — — Corporate bonds 70,808 — (2,812) 67,996 — 8,488 59,508 U.S. government treasury bonds 18,609 — (495) 18,114 — 6,490 11,624 Asset-backed securities 7,042 — (59) 6,983 — 3,113 3,870 Municipal bonds 5,541 — (100) 5,441 — 4,047 1,394 U.S. government agency bonds 1,201 — (46) 1,155 — — 1,155 Total $ 980,714 $ — $ (3,524) $ 977,190 $ 877,501 $ 22,138 $ 77,551 Reported as: December 31, 2021 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 754,802 $ — $ — $ 754,802 $ 754,802 $ — $ — Money market funds 343,012 — (2) 343,010 343,010 — — Corporate bonds 115,507 9 (398) 115,118 1,042 35,065 79,011 U.S. government treasury bonds 42,976 — (48) 42,928 — 22,251 20,677 Asset-backed securities 32,031 — (40) 31,991 — 10,999 20,992 Municipal bonds 7,628 — (15) 7,613 516 3,657 3,440 U.S. government agency bonds 1,201 — (1) 1,200 — — 1,200 Total $ 1,297,157 $ 9 $ (504) $ 1,296,662 $ 1,099,370 $ 71,972 $ 125,320
Contractual Maturity of Marketable Securities	The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Due in 1 year or less $ 17,185 $ 59,737 Due in 1 year through 5 years 82,504 139,113 Total $ 99,689 $ 198,850
Financial Assets Measured At Fair Value On A Recurring Basis	The following tables summarize our financial assets measured at fair value as of June 30, 2022 and December 31, 2021 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 119,136 $ 119,136 $ — $ — Short-term investments: U.S. government treasury bonds 6,490 6,490 — — Corporate bonds 8,488 — 8,488 — Municipal bonds 4,047 — 4,047 — Asset-backed securities 3,113 — 3,113 — Long-term investments: U.S. government treasury bonds 11,624 11,624 — — Corporate bonds 59,508 — 59,508 — Municipal bonds 1,394 — 1,394 — U.S. government agency bonds 1,155 — 1,155 — Asset-backed securities 3,870 — 3,870 — Other assets: Investments in privately held companies 11,793 — — 11,793 $ 230,618 $ 137,250 $ 81,575 $ 11,793 Description Balance as of December 31, 2021 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 343,010 $ 343,010 $ — $ — Corporate bonds 1,042 — 1,042 — Municipal bonds 516 — 516 — Short-term investments: U.S. government treasury bonds 22,251 22,251 — — Corporate bonds 35,065 — 35,065 — Municipal bonds 3,657 — 3,657 — Asset-backed securities 10,999 — 10,999 — Long-term investments: U.S. government treasury bonds 20,677 20,677 — — Corporate bonds 79,011 — 79,011 — Municipal bonds 3,440 — 3,440 — U.S. government agency bonds 1,200 — 1,200 — Asset-backed securities 20,992 — 20,992 — Prepaid expenses and other current assets: Israeli funds 3,841 — 3,841 — Other assets: Investments in privately held companies 8,621 — — 8,621 $ 554,322 $ 385,938 $ 159,763 $ 8,621
Schedule of Notional Amounts of Outstanding Derivative Positions	The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €147,830 $ 154,164 Chinese Yuan ¥719,300 107,297 Polish Zloty PLN351,500 77,556 Canadian Dollar C$95,200 73,748 Brazilian Real R$317,000 59,913 Japanese Yen ¥6,081,000 44,744 British Pound £34,097 41,333 Swiss Franc CHF22,500 23,536 Mexican Peso M$282,700 13,988 Israeli Shekel ILS43,160 12,380 Australian Dollar A$4,600 3,170 $ 611,829 December 31, 2021 Local Currency Amount Notional Contract Amount (USD) Euro €165,110 $ 186,358 Canadian Dollar C$99,800 78,018 Chinese Yuan ¥494,500 77,358 Polish Zloty PLN219,800 54,014 Brazilian Real R$286,500 50,894 Japanese Yen ¥5,548,700 48,206 British Pound £34,740 46,881 Israeli Shekel ILS54,110 17,416 Mexican Peso M$311,500 15,133 Swiss Franc CHF9,950 10,883 Australian Dollar A$6,900 5,009 $ 590,170

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): June 30, December 31, Raw materials $ 159,037 $ 123,234 Work in process 82,292 51,706 Finished goods 68,717 55,290 Total inventories $ 310,046 $ 230,230
Schedule of Prepaid Expense and Other Assets	Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, Value added tax receivables $ 110,988 $ 93,610 Prepaid expenses 61,628 70,218 Other current assets 62,649 31,477 Total prepaid expenses and other current assets $ 235,265 $ 195,305
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and benefits $ 152,849 $ 288,355 Accrued expenses 74,281 67,169 Accrued sales and marketing expenses 37,250 41,387 Accrued property, plant and equipment 35,563 46,561 Current operating lease liabilities 24,613 22,719 Accrued professional fees 18,433 31,457 Other accrued liabilities 73,470 109,667 Total accrued liabilities $ 416,459 $ 607,315
Schedule of Warranty Accrual	Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Six Months Ended 2022 2021 Balance at beginning of period $ 16,169 $ 12,615 Charged to cost of net revenues 7,660 8,936 Actual warranty expenditures (7,334) (7,105) Balance at end of period $ 16,495 $ 14,446
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): June 30, December 31, Deferred revenues - current $ 1,242,348 $ 1,152,870 Deferred revenues - long-term 1 $ 155,510 $ 136,684 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Notes To Financial Statements [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the six months ended June 30, 2022, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2021 $ 112,208 $ 306,339 $ 418,547 Foreign currency translation adjustments (3,804) (24,643) (28,447) Balance as of June 30, 2022 $ 108,404 $ 281,696 $ 390,100
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 Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 104,531 $ (27,640) $ (4,328) $ 72,563 Customer relationships 10 21,500 (4,838) — 16,662 Trademarks and tradenames 10 17,200 (5,466) (4,179) 7,555 Patents 8 6,511 (4,891) — 1,620 $ 149,742 $ (42,835) $ (8,507) 98,400 Foreign currency translation adjustments (4,583) Total intangible assets, net 1 $ 93,817 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Accumulated Amortization Accumulated Impairment Loss Net Carrying Existing technology 10 $ 104,531 $ (22,495) $ (4,328) $ 77,708 Customer relationships 11 55,000 (25,891) (10,751) 18,358 Trademarks and tradenames 10 17,200 (4,547) (4,179) 8,474 Patents 8 6,511 (4,495) — 2,016 $ 183,242 $ (57,428) $ (19,258) 106,556 Foreign currency translation adjustments 3,153 Total intangible assets, net $ 109,709
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2022 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2022 $ 7,536 2023 14,997 2024 13,831 2025 13,455 2026 12,849 Thereafter 35,732 Total $ 98,400

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Stock-based Compensation Expense	The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Cost of net revenues $ 1,614 $ 1,418 $ 3,128 $ 2,724 Selling, general and administrative 26,491 23,058 51,216 44,902 Research and development 6,035 4,379 11,417 8,470 Total stock-based compensation $ 34,140 $ 28,855 $ 65,761 $ 56,096
Summary Of Restricted Stock Units	A summary for the six months ended June 30, 2022 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, 2021 492 $ 369.17 Granted 232 485.01 Vested and released (189) 333.28 Forfeited (22) 429.13 Unvested as of June 30, 2022 513 $ 432.28 1.6 $ 121,475
Summary Of Market-performance Based Restricted Stock Units	The following table summarizes the MSU performance for the six months ended June 30, 2022: Number of Shares Underlying MSUs (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Unvested as of December 31, 2021 174 $ 551.57 Granted 1 101 607.96 Vested and released (128) 396.10 Forfeited (3) 744.39 Unvested as of June 30, 2022 144 $ 725.73 1.5 $ 34,097
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended 2022 2021 Expected term (in years) 1.5 1.0 Expected volatility 48.6 % 58.8 % Risk-free interest rate 1.0 % 0.1 % Expected dividends — — Weighted average fair value at grant date $ 196.97 $ 202.74

Common Stock Repurchase Progr_2

Common Stock Repurchase Program (Tables)	6 Months Ended
	Jun. 30, 2022
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Accelerated Share Repurchase Agreements	The following table summarizes the information regarding repurchases of our common stock under ASRs: Agreement Repurchase Amount Paid Completion Total Shares Average Price per Share Q2 2021 May 2018 $ 100.0 Q3 2021 171,322 $ 583.70 Q2 2021 May 2021 $ 100.0 Q3 2021 161,707 $ 618.40 Q2 2022 May 2021 $ 200.0 Q2 2022 756,502 $ 264.37

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share Basic And Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income $ 112,800 $ 199,714 $ 247,098 $ 400,090 Denominator: Weighted average common shares outstanding, basic 78,395 79,008 78,568 79,004 Dilutive effect of potential common stock 150 630 272 733 Total shares, diluted 78,545 79,638 78,840 79,737 Net income per share, basic $ 1.44 $ 2.53 $ 3.15 $ 5.06 Net income per share, diluted $ 1.44 $ 2.51 $ 3.13 $ 5.02 Anti-dilutive potential common shares 1 361 49 314 38 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)	6 Months Ended
	Jun. 30, 2022
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Six Months Ended 2022 2021 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 60,115 $ 133,530 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15,048 $ 14,030 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 16,351 $ 24,338

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information by segment is as follows (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Net revenues Clear Aligner $ 798,398 $ 840,959 $ 1,608,094 $ 1,594,228 Systems and Services 171,155 169,849 334,678 311,351 Total net revenues $ 969,553 $ 1,010,808 $ 1,942,772 $ 1,905,579 Gross profit Clear Aligner $ 585,245 $ 646,665 $ 1,190,941 $ 1,231,199 Systems and Services 102,314 111,873 205,964 204,437 Total gross profit $ 687,559 $ 758,538 $ 1,396,905 $ 1,435,636 Income from operations Clear Aligner $ 307,209 $ 347,626 $ 619,928 $ 675,091 Systems and Services 45,599 64,675 96,398 111,903 Unallocated corporate expenses (164,612) (143,399) (330,048) (292,646) Total income from operations $ 188,196 $ 268,902 $ 386,278 $ 494,348 Stock-based compensation Clear Aligner $ 3,001 $ 2,632 $ 5,855 $ 4,926 Systems and Services 236 174 450 345 Unallocated corporate expenses 30,903 26,049 59,456 50,825 Total stock-based compensation $ 34,140 $ 28,855 $ 65,761 $ 56,096 Depreciation and amortization Clear Aligner $ 14,029 $ 12,170 $ 27,796 $ 23,290 Systems and Services 6,776 4,622 13,698 9,167 Unallocated corporate expenses 9,476 9,100 18,413 19,070 Total depreciation and amortization $ 30,281 $ 25,892 $ 59,907 $ 51,527 The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Total segment income from operations $ 352,808 $ 412,301 $ 716,326 $ 786,994 Unallocated corporate expenses (164,612) (143,399) (330,048) (292,646) Total income from operations 188,196 268,902 386,278 494,348 Interest income 245 383 922 2,026 Other income (expense), net (14,832) (483) (26,105) 34,049 Net income before provision for income taxes $ 173,609 $ 268,802 $ 361,095 $ 530,423
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 Six Months Ended 2022 2021 2022 2021 Net revenues 1 : U.S. $ 430,053 $ 434,398 $ 850,973 $ 817,400 Switzerland 330,351 366,334 662,090 681,784 Other International 209,149 210,076 429,709 406,395 Total net revenues $ 969,553 $ 1,010,808 $ 1,942,772 $ 1,905,579 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): June 30, December 31, 2021 Long-lived assets 1 : Switzerland $ 499,626 $ 444,205 U.S. 212,071 210,582 China 123,180 125,346 Other International 465,479 423,050 Total long-lived assets $ 1,300,356 $ 1,203,183 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

Financial Instruments - Cash, C

Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Amortized Cost
Cash, cash equivalents and marketable securities	$ 980,714	$ 1,297,157
Gross Unrealized Gains
Cash, cash equivalents and marketable securities	0	9
Gross Unrealized Losses
Cash, cash equivalents and marketable securities	(3,524)	(504)
Fair Value
Cash and cash equivalents	877,501	1,099,370
Marketable securities	99,689	198,850
Cash, cash equivalents and marketable securities	977,190	1,296,662
Cash
Amortized Cost
Cash and cash equivalents	758,365	754,802
Fair Value
Cash and cash equivalents	758,365	754,802
Cash and Cash Equivalents
Fair Value
Cash, cash equivalents and marketable securities	877,501	1,099,370
Cash and Cash Equivalents | Cash
Fair Value
Cash and cash equivalents	758,365	754,802
Marketable securities, short-term
Fair Value
Cash, cash equivalents and marketable securities	22,138	71,972
Marketable securities, long-term
Fair Value
Cash, cash equivalents and marketable securities	77,551	125,320
Money market funds
Amortized Cost
Cash and cash equivalents	119,148	343,012
Gross Unrealized Losses
Cash and cash equivalents	(12)	(2)
Fair Value
Cash and cash equivalents	119,136	343,010
Money market funds | Cash and Cash Equivalents
Fair Value
Cash and cash equivalents	119,136	343,010
Corporate bonds
Amortized Cost
Marketable securities	70,808	115,507
Gross Unrealized Gains
Marketable securities	0	9
Gross Unrealized Losses
Marketable securities	(2,812)	(398)
Fair Value
Marketable securities	67,996	115,118
Corporate bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		1,042
Corporate bonds | Marketable securities, short-term
Fair Value
Marketable securities	8,488	35,065
Corporate bonds | Marketable securities, long-term
Fair Value
Marketable securities	59,508	79,011
U.S. government treasury bonds
Amortized Cost
Marketable securities	18,609	42,976
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(495)	(48)
Fair Value
Marketable securities	18,114	42,928
U.S. government treasury bonds | Marketable securities, short-term
Fair Value
Marketable securities	6,490	22,251
U.S. government treasury bonds | Marketable securities, long-term
Fair Value
Marketable securities	11,624	20,677
Asset-backed securities
Amortized Cost
Marketable securities	7,042	32,031
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(59)	(40)
Fair Value
Marketable securities	6,983	31,991
Asset-backed securities | Marketable securities, short-term
Fair Value
Marketable securities	3,113	10,999
Asset-backed securities | Marketable securities, long-term
Fair Value
Marketable securities	3,870	20,992
Municipal bonds
Amortized Cost
Marketable securities	5,541	7,628
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(100)	(15)
Fair Value
Marketable securities	5,441	7,613
Municipal bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		516
Municipal bonds | Marketable securities, short-term
Fair Value
Marketable securities	4,047	3,657
Municipal bonds | Marketable securities, long-term
Fair Value
Marketable securities	1,394	3,440
U.S. government agency bonds
Amortized Cost
Marketable securities	1,201	1,201
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(46)	(1)
Fair Value
Marketable securities	1,155	1,200
U.S. government agency bonds | Marketable securities, long-term
Fair Value
Marketable securities	$ 1,155	$ 1,200

Financial Instruments - Contrac

Financial Instruments - Contractual Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 17,185	$ 59,737
Due in 1 year through 5 years	82,504	139,113
Total	$ 99,689	$ 198,850

Financial Instruments - Fair Va

Financial Instruments - Fair Value Measured On A Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	$ 22,138	$ 71,972
Long-term investments	77,551	125,320
Assets measured at fair value	230,618	554,322
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	137,250	385,938
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	81,575	159,763
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	11,793	8,621
Money market funds | Fair Value, Measurements, Recurring | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	119,136	343,010
Money market funds | Fair Value, Measurements, Recurring | Level 1 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	119,136	343,010
Money market funds | Fair Value, Measurements, Recurring | Level 2 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	0	0
Money market funds | Fair Value, Measurements, Recurring | Level 3 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	0	0
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	6,490	22,251
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	11,624	20,677
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 1 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	6,490	22,251
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 1 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	11,624	20,677
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 2 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 2 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 3 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 3 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Corporate bonds | Fair Value, Measurements, Recurring | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	8,488	35,065
Corporate bonds | Fair Value, Measurements, Recurring | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	59,508	79,011
Corporate bonds | Fair Value, Measurements, Recurring | Level 1 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Corporate bonds | Fair Value, Measurements, Recurring | Level 1 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring | Level 1 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring | Level 2 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Corporate bonds | Fair Value, Measurements, Recurring | Level 2 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	8,488	35,065
Corporate bonds | Fair Value, Measurements, Recurring | Level 2 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	59,508	79,011
Corporate bonds | Fair Value, Measurements, Recurring | Level 3 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Corporate bonds | Fair Value, Measurements, Recurring | Level 3 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring | Level 3 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Municipal bonds | Fair Value, Measurements, Recurring | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	4,047	3,657
Municipal bonds | Fair Value, Measurements, Recurring | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,394	3,440
Municipal bonds | Fair Value, Measurements, Recurring | Level 1 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Municipal bonds | Fair Value, Measurements, Recurring | Level 1 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Level 1 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Level 2 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Municipal bonds | Fair Value, Measurements, Recurring | Level 2 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	4,047	3,657
Municipal bonds | Fair Value, Measurements, Recurring | Level 2 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,394	3,440
Municipal bonds | Fair Value, Measurements, Recurring | Level 3 | Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Municipal bonds | Fair Value, Measurements, Recurring | Level 3 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Level 3 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government agency bonds | Fair Value, Measurements, Recurring | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,155	1,200
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 1 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 2 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,155	1,200
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 3 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,113	10,999
Asset-backed securities | Fair Value, Measurements, Recurring | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	3,870	20,992
Asset-backed securities | Fair Value, Measurements, Recurring | Level 1 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Level 1 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,113	10,999
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	3,870	20,992
Asset-backed securities | Fair Value, Measurements, Recurring | Level 3 | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Level 3 | Long-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Israeli funds | Fair Value, Measurements, Recurring | Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds | Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Israeli funds | Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds | Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Investments in privately held companies | Fair Value, Nonrecurring | Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	11,793	8,621
Investments in privately held companies | Fair Value, Nonrecurring | Level 1 | Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	0	0
Investments in privately held companies | Fair Value, Nonrecurring | Level 2 | Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	0	0
Investments in privately held companies | Fair Value, Nonrecurring | Level 3 | Other assets:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	$ 11,793	$ 8,621

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - Foreign Exchange Forward - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) on derivative	$ 10.8	$ (13)	$ 9.2	$ 0
Fair value of derivative asset	$ 0		$ 0		$ 0

Financial Instruments - Derivat

Financial Instruments - Derivative Financial Instruments (Details) - Level 2 - Prepaid expenses and other current assets: - Foreign Exchange Forward € in Thousands, ₪ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, SFr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Jun. 30, 2022 EUR (€)

Jun. 30, 2022 USD ($)

Jun. 30, 2022 CNY (¥)

Jun. 30, 2022 PLN (zł)

Jun. 30, 2022 CAD ($)

Jun. 30, 2022 BRL (R$)

Jun. 30, 2022 JPY (¥)

Jun. 30, 2022 GBP (£)

Jun. 30, 2022 CHF (SFr)

Jun. 30, 2022 MXN ($)

Jun. 30, 2022 ILS (₪)

Jun. 30, 2022 AUD ($)

Dec. 31, 2021 EUR (€)

Dec. 31, 2021 USD ($)

Dec. 31, 2021 CNY (¥)

Dec. 31, 2021 PLN (zł)

Dec. 31, 2021 CAD ($)

Dec. 31, 2021 BRL (R$)

Dec. 31, 2021 JPY (¥)

Dec. 31, 2021 GBP (£)

Dec. 31, 2021 CHF (SFr)

Dec. 31, 2021 MXN ($)

Dec. 31, 2021 ILS (₪)

Dec. 31, 2021 AUD ($)

Derivative [Line Items]

Notional amount

$ 611,829

$ 590,170

Euro

Derivative [Line Items]

Notional amount

€ 147,830

154,164

€ 165,110

186,358

Chinese Yuan

Derivative [Line Items]

Notional amount

107,297

¥ 719,300

77,358

¥ 494,500

Polish Zloty

Derivative [Line Items]

Notional amount

77,556

zł 351,500

54,014

zł 219,800

Canadian Dollar

Derivative [Line Items]

Notional amount

73,748

$ 95,200

78,018

$ 99,800

Brazilian Real

Derivative [Line Items]

Notional amount

59,913

R$ 317000

50,894

R$ 286500

Japanese Yen

Derivative [Line Items]

Notional amount

44,744

¥ 6,081,000

48,206

¥ 5,548,700

British Pound

Derivative [Line Items]

Notional amount

41,333

£ 34,097

46,881

£ 34,740

Swiss Franc

Derivative [Line Items]

Notional amount

23,536

SFr 22,500

10,883

SFr 9,950

Mexican Peso

Derivative [Line Items]

Notional amount

13,988

$ 282,700

15,133

$ 311,500

Israeli Shekel

Derivative [Line Items]

Notional amount

12,380

₪ 43,160

17,416

₪ 54,110

Australian Dollar

Derivative [Line Items]

Notional amount

$ 3,170

$ 4,600

$ 5,009

$ 6,900

Balance Sheet Components Invent

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Raw materials	$ 159,037	$ 123,234
Work in process	82,292	51,706
Finished goods	68,717	55,290
Total inventories	$ 310,046	$ 230,230

Balance Sheet Components Prepai

Balance Sheet Components Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Value added tax receivables	$ 110,988	$ 93,610
Prepaid expenses	61,628	70,218
Other current assets	62,649	31,477
Total prepaid expenses and other current assets	$ 235,265	$ 195,305

Balance Sheet Components Accrue

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 152,849	$ 288,355
Accrued expenses	74,281	67,169
Accrued sales and marketing expenses	37,250	41,387
Accrued property, plant and equipment	35,563	46,561
Current operating lease liabilities	24,613	22,719
Accrued professional fees	18,433	31,457
Other accrued liabilities	73,470	109,667
Accrued liabilities	$ 416,459	$ 607,315

Balance Sheet Components Warran

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 16,169	$ 12,615
Charged to cost of net revenues	7,660	8,936
Actual warranty expenditures	(7,334)	(7,105)
Balance at end of period	$ 16,495	$ 14,446

Balance Sheet Components Deferr

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 1,242,348	$ 1,152,870
Deferred revenues - long-term	$ 155,510	$ 136,684

Balance Sheet Components Narrat

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 969,553	$ 1,010,808	$ 1,942,772	$ 1,905,579
Deferred revenues	178,400	$ 134,400	363,300	$ 260,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation	$ 1,409,400		$ 1,409,400
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months		6 months
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	5 years		5 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2021	$ 418,547
Foreign currency translation adjustments	(28,447)
Balance as of June 30, 2022	390,100
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2021	112,208
Foreign currency translation adjustments	(3,804)
Balance as of June 30, 2022	108,404
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2021	306,339
Foreign currency translation adjustments	(24,643)
Balance as of June 30, 2022	$ 281,696

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 149,742	$ 183,242
Accumulated Amortization	(42,835)	(57,428)
Accumulated Impairment Loss	(8,507)	(19,258)
Net carrying value	98,400	106,556
Foreign currency translation adjustments	(4,583)	3,153
Total intangible assets	$ 93,817	$ 109,709
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount	$ 104,531	$ 104,531
Accumulated Amortization	(27,640)	(22,495)
Accumulated Impairment Loss	(4,328)	(4,328)
Net carrying value	$ 72,563	$ 77,708
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	11 years
Gross carrying amount	$ 21,500	$ 55,000
Accumulated Amortization	(4,838)	(25,891)
Accumulated Impairment Loss	0	(10,751)
Net carrying value	16,662	$ 18,358
Fully amortized intangible assets	$ 33,500
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount	$ 17,200	$ 17,200
Accumulated Amortization	(5,466)	(4,547)
Accumulated Impairment Loss	(4,179)	(4,179)
Net carrying value	$ 7,555	$ 8,474
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	8 years	8 years
Gross carrying amount	$ 6,511	$ 6,511
Accumulated Amortization	(4,891)	(4,495)
Accumulated Impairment Loss	0	0
Net carrying value	$ 1,620	$ 2,016

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2022	$ 7,536
2023	14,997
2024	13,831
2025	13,455
2026	12,849
Thereafter	35,732
Net carrying value	$ 98,400	$ 106,556

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 3.9	$ 3.9	$ 8.2	$ 7.8

Credit Facility - Additional In

Credit Facility - Additional Information (Details) - 2020 Credit Facility - USD ($)	Jul. 21, 2020	Jun. 30, 2022
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 300,000,000
Outstanding borrowings		$ 0
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 50,000,000
Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	1%
Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%

Legal Proceedings - Narrative (

Legal Proceedings - Narrative (Details)	Jan. 31, 2019 claim
Shareholder Derivative Lawsuit
Loss Contingencies [Line Items]
Number of lawsuits	3

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) shares
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance | shares	27,783,379
Shares available for issuance | shares	3,744,033
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance | shares	2,156,295
Total unamortized compensation cost | $	$ 14.3
Weighted average period of total unamortized cost (in years)	9 months 18 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Total unamortized compensation cost | $	$ 174.7
Weighted average period of total unamortized cost (in years)	2 years 7 months 6 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 | $	$ 55.2
Weighted average period of total unamortized cost (in years)	1 year 6 months
Maximum percentage of market-performance based restricted stock units eligible to vest over the vesting period	250%

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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 34,140	$ 28,855	$ 65,761	$ 56,096
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,614	1,418	3,128	2,724
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	26,491	23,058	51,216	44,902
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 6,035	$ 4,379	$ 11,417	$ 8,470

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) | shares	492
Granted (in shares) | shares	232
Vested and released (in shares) | shares	(189)
Forfeited (in shares) | shares	(22)
Unvested, end of period (in shares) | shares	513
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) | $ / shares	$ 369.17
Granted (in usd per share) | $ / shares	485.01
Vested and released (in usd per share) | $ / shares	333.28
Forfeited (in usd per share) | $ / shares	429.13
Unvested, end of period (in usd per share) | $ / shares	$ 432.28
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 7 months 6 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 121,475
Market Performance Based Restricted Stock Units
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) | shares	174
Granted (in shares) | shares	101
Vested and released (in shares) | shares	(128)
Forfeited (in shares) | shares	(3)
Unvested, end of period (in shares) | shares	144
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) | $ / shares	$ 551.57
Granted (in usd per share) | $ / shares	607.96
Vested and released (in usd per share) | $ / shares	396.10
Forfeited (in usd per share) | $ / shares	744.39
Unvested, end of period (in usd per share) | $ / shares	$ 725.73
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 6 months
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 34,097

Stockholders' Equity - Stock-_2

Stockholders' Equity - Stock-based Compensation Employee Stock Purchase Plan Fair Value Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Class of Stock [Line Items]
Expected term (in years)	1 year 6 months	1 year
Expected volatility	48.60%	58.80%
Risk-free interest rate	1%	0.10%
Expected dividends	0%	0%
Weighted average fair value at grant date (in usd per share)	$ 196.97	$ 202.74

Common Stock Repurchase Progr_3

Common Stock Repurchase Program - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	May 31, 2021	May 31, 2018
Share Repurchases [Line Items]
Common stock repurchased and retired	$ 200,000,000	$ 160,000,000	$ 275,036,000		$ 160,000,000
May 2018 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount							$ 600,000,000
Shares repurchased (in shares)				171,322
Share repurchase price (in dollars per share)				$ 583.70
May 2021 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount						$ 1,000,000,000
Amount available for repurchase	$ 449,900,000		$ 449,900,000
Shares repurchased (in shares)	756,502		100,000	161,707
Share repurchase price (in dollars per share)	$ 264.37		$ 522.61	$ 618.40
Common stock repurchased and retired			$ 75,000,000

Common Stock Repurchase Progr_4

Common Stock Repurchase Program - Accelerated Share Repurchase Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Share Repurchases [Line Items]
Amount paid			$ 275,036		$ 160,000
May 2018 Repurchase Program
Share Repurchases [Line Items]
Amount paid		$ 100,000
Total shares received (in shares)				171,322
Average price per share (in dollars per share)				$ 583.70
May 2021 Repurchase Program
Share Repurchases [Line Items]
Amount paid	$ 200,000	$ 100,000
Total shares received (in shares)	756,502		100,000	161,707
Average price per share (in dollars per share)	$ 264.37		$ 522.61	$ 618.40

Accounting for Income Taxes - A

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Disclosure Accounting For Income Taxes Additional Information [Abstract]
Provision for income taxes	$ 60,809	$ 69,088	$ 113,997	$ 130,333
Effective income tax rate, continuing operations	35%	25.70%	31.60%	24.60%
Unrecognized tax benefits	$ 73,200		$ 73,200		$ 63,300

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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 112,800	$ 199,714	$ 247,098	$ 400,090
Weighted average common shares outstanding, basic (in shares)	78,395	79,008	78,568	79,004
Dilutive effect of potential common stock (in shares)	150	630	272	733
Total shares, diluted (in shares)	78,545	79,638	78,840	79,737
Net income per share, basic (in usd per share)	$ 1.44	$ 2.53	$ 3.15	$ 5.06
Net income per share, diluted (in usd per share)	$ 1.44	$ 2.51	$ 3.13	$ 5.02
Anti-dilutive potential common shares (in shares)	361	49	314	38

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$ 60,115	$ 133,530
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	15,048	14,030
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 16,351	$ 24,338

Segments and Geographical Inf_3

Segments and Geographical Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 segment
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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 969,553	$ 1,010,808	$ 1,942,772	$ 1,905,579
Gross profit	687,559	758,538	1,396,905	1,435,636
Income from operations	188,196	268,902	386,278	494,348
Stock-based compensation	34,140	28,855	65,761	56,096
Depreciation and amortization	30,281	25,892	59,907	51,527
Interest income	245	383	922	2,026
Other income (expense), net	(14,832)	(483)	(26,105)	34,049
Net income before provision for income taxes	173,609	268,802	361,095	530,423
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	352,808	412,301	716,326	786,994
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(164,612)	(143,399)	(330,048)	(292,646)
Stock-based compensation	30,903	26,049	59,456	50,825
Depreciation and amortization	9,476	9,100	18,413	19,070
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	798,398	840,959	1,608,094	1,594,228
Gross profit	585,245	646,665	1,190,941	1,231,199
Clear Aligner | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	307,209	347,626	619,928	675,091
Stock-based compensation	3,001	2,632	5,855	4,926
Depreciation and amortization	14,029	12,170	27,796	23,290
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	171,155	169,849	334,678	311,351
Gross profit	102,314	111,873	205,964	204,437
Systems and Services | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	45,599	64,675	96,398	111,903
Stock-based compensation	236	174	450	345
Depreciation and amortization	$ 6,776	$ 4,622	$ 13,698	$ 9,167

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 969,553	$ 1,010,808	$ 1,942,772	$ 1,905,579
U.S.
Segment Reporting Information [Line Items]
Net revenues	430,053	434,398	850,973	817,400
Switzerland
Segment Reporting Information [Line Items]
Net revenues	330,351	366,334	662,090	681,784
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 209,149	$ 210,076	$ 429,709	$ 406,395

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total long-lived assets	$ 1,300,356	$ 1,203,183
Switzerland
Segment Reporting Information [Line Items]
Total long-lived assets	499,626	444,205
U.S.
Segment Reporting Information [Line Items]
Total long-lived assets	212,071	210,582
China
Segment Reporting Information [Line Items]
Total long-lived assets	123,180	125,346
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	$ 465,479	$ 423,050