Align Technology (ALGN) 10-Q 4 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 28, 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	85288
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	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		78,112,351

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net revenues	$ 890,348	$ 1,015,906	$ 2,833,120	$ 2,921,485
Cost of net revenues	271,179	260,750	817,046	730,693
Gross profit	619,169	755,156	2,016,074	2,190,792
Operating expenses:
Selling, general and administrative	398,547	428,409	1,264,402	1,257,445
Research and development	76,966	65,587	221,738	177,839
Total operating expenses	475,513	493,996	1,486,140	1,435,284
Income from operations	143,656	261,160	529,934	755,508
Interest income	1,685	401	2,607	2,427
Other income (expense), net	(22,700)	427	(48,805)	34,476
Total interest income and other income (expense), net	(21,015)	828	(46,198)	36,903
Net income before provision for income taxes	122,641	261,988	483,736	792,411
Provision for income taxes	49,941	81,019	163,938	211,352
Net income	$ 72,700	$ 180,969	$ 319,798	$ 581,059
Net income per share:
Basic (in usd per share)	$ 0.93	$ 2.29	$ 4.08	$ 7.36
Diluted (in usd per share)	$ 0.93	$ 2.28	$ 4.07	$ 7.29
Shares used in computing net income per share:
Basic (in shares)	78,093	78,904	78,408	78,971
Diluted (in shares)	78,237	79,516	78,652	79,677

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 72,700	$ 180,969	$ 319,798	$ 581,059
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax	(20,246)	(12,037)	(41,313)	(25,902)
Change in unrealized gains (losses) on investments, net of tax	(729)	20	(3,758)	0
Other comprehensive loss	(20,975)	(12,017)	(45,071)	(25,902)
Comprehensive income	$ 51,725	$ 168,952	$ 274,727	$ 555,157

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,044,523	$ 1,099,370
Marketable securities, short-term	46,242	71,972
Accounts receivable, net of allowance for doubtful accounts of $9,617 and $9,245, respectively	859,629	897,198
Inventories	320,903	230,230
Prepaid expenses and other current assets	229,283	195,305
Total current assets	2,500,580	2,494,075
Marketable securities, long-term	50,256	125,320
Property, plant and equipment, net	1,199,880	1,081,926
Operating lease right-of-use assets, net	116,031	121,257
Goodwill	377,616	418,547
Intangible assets, net	91,711	109,709
Deferred tax assets	1,524,584	1,533,767
Other assets	52,144	57,509
Total assets	5,912,802	5,942,110
Current liabilities:
Accounts payable	138,918	163,886
Accrued liabilities	383,618	607,315
Deferred revenues	1,286,867	1,152,870
Total current liabilities	1,809,403	1,924,071
Income tax payable	127,059	118,072
Operating lease liabilities	96,694	102,656
Other long-term liabilities	185,024	174,597
Total liabilities	2,218,180	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; 78,111 and 78,710 issued and outstanding, respectively)	8	8
Additional paid-in capital	1,060,698	999,006
Accumulated other comprehensive income (loss), net	(40,745)	4,326
Retained earnings	2,674,661	2,619,374
Total stockholders’ equity	3,694,622	3,622,714
Total liabilities and stockholders’ equity	$ 5,912,802	$ 5,942,110

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9,617	$ 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	78,111,000	78,710,000
Common stock, shares outstanding	78,111,000	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	581,059				581,059
Net change in unrealized gains (losses) from investments	0
Net change in foreign currency translation adjustment	(25,902)			(25,902)
Issuance of common stock relating to employee equity compensation plans (in shares)		434
Issuance of common stock relating to employee equity compensation plans	25,623		25,623
Tax withholdings related to net share settlements of equity awards	(107,343)		(107,343)
Common stock repurchased and retired (in shares)		(442)
Common stock repurchased and retired	(275,038)		(4,884)		(270,154)
Stock-based compensation	84,498		84,498
Ending Balance (in shares) at Sep. 30, 2021		78,852
Ending Balance at Sep. 30, 2021	3,516,762	$ 8	972,450	17,599	2,526,705
Beginning Balance (in shares) at Jun. 30, 2021		78,948
Beginning Balance at Jun. 30, 2021	3,384,410	$ 8	895,831	29,616	2,458,955
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	180,969				180,969
Net change in unrealized gains (losses) from investments	20			20
Net change in foreign currency translation adjustment	(12,037)			(12,037)
Issuance of common stock relating to employee equity compensation plans (in shares)		69
Issuance of common stock relating to employee equity compensation plans	12,490		12,490
Tax withholdings related to net share settlements of equity awards	(2,454)		(2,454)
Common stock repurchased and retired (in shares)		(165)
Common stock repurchased and retired	(115,038)		(1,819)		(113,219)
Equity forward contract related to accelerated stock repurchase	40,000		40,000
Stock-based compensation	28,402		28,402
Ending Balance (in shares) at Sep. 30, 2021		78,852
Ending Balance at Sep. 30, 2021	3,516,762	$ 8	972,450	17,599	2,526,705
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	319,798				319,798
Net change in unrealized gains (losses) from investments	(3,758)			(3,758)
Net change in foreign currency translation adjustment	(41,313)			(41,313)
Issuance of common stock relating to employee equity compensation plans (in shares)		302
Issuance of common stock relating to employee equity compensation plans	26,149		26,149
Tax withholdings related to net share settlements of equity awards	(52,611)		(52,611)
Common stock repurchased and retired (in shares)		(901)
Common stock repurchased and retired	(275,036)		(10,525)		(264,511)
Stock-based compensation	98,679		98,679
Ending Balance (in shares) at Sep. 30, 2022		78,111
Ending Balance at Sep. 30, 2022	3,694,622	$ 8	1,060,698	(40,745)	2,674,661
Beginning Balance (in shares) at Jun. 30, 2022		78,059
Beginning Balance at Jun. 30, 2022	3,599,081	$ 8	1,016,882	(19,770)	2,601,961
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	72,700				72,700
Net change in unrealized gains (losses) from investments	(729)			(729)
Net change in foreign currency translation adjustment	(20,246)			(20,246)
Issuance of common stock relating to employee equity compensation plans (in shares)		52
Issuance of common stock relating to employee equity compensation plans	11,322		11,322
Tax withholdings related to net share settlements of equity awards	(424)		(424)
Stock-based compensation	32,918		32,918
Ending Balance (in shares) at Sep. 30, 2022		78,111
Ending Balance at Sep. 30, 2022	$ 3,694,622	$ 8	$ 1,060,698	$ (40,745)	$ 2,674,661

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 319,798	$ 581,059
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	6,765	48,104
Depreciation and amortization	92,096	79,141
Stock-based compensation	98,679	84,498
Non-cash operating lease cost	22,756	19,364
Arbitration award gain	0	(43,403)
Other non-cash operating activities	26,216	15,651
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	32,284	(216,081)
Inventories	(108,524)	(83,249)
Prepaid expenses and other assets	(32,440)	(74,736)
Accounts payable	(27,100)	13,495
Accrued and other long-term liabilities	(213,378)	107,159
Long-term income tax payable	9,019	20,263
Deferred revenues	197,854	348,430
Net cash provided by operating activities	424,025	899,695
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired	(12,304)	(8,002)
Purchase of property, plant and equipment	(238,696)	(292,002)
Purchase of marketable securities	(20,466)	0
Proceeds from maturities of marketable securities	22,456	0
Proceeds from sales of marketable securities	93,647	0
Repayment on unsecured promissory note	0	4,594
Proceeds from arbitration award	0	43,403
Other investing activities	(2,143)	(3,712)
Net cash used in investing activities	(157,506)	(255,719)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	26,149	25,623
Common stock repurchases	(275,036)	(275,038)
Payroll taxes paid upon the vesting of equity awards	(52,611)	(107,344)
Net cash used in financing activities	(301,498)	(356,759)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(20,422)	(10,241)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(55,401)	276,976
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	$ 1,044,738	$ 1,238,450

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 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 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 nine months ended September 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 Our business has been materially impacted by fluctuations in macroeconomic conditions, exacerbated by the ongoing geopolitical issues between Russia and Ukraine. While the situation is highly uncertain and evolving, we have been and continue to be impacted by factors such as inflation, supply chain challenges, rising interest rates, volatilities in the financial market, foreign currency exchange rate fluctuations, impacts on consumer confidence and purchasing power, and global recession concerns which could further subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. 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. While the overall impact of the COVID-19 pandemic is gradually declining, we continue to be exposed to risks and uncertainties posed by it which varies by geographic regions at different levels. The extent to which our business could be impacted in the future by the pandemic is highly uncertain and difficult to predict. 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 (i) New Accounting Updates Recently Adopted In October 2021, the Financial Accounting Standards Board ( “ FASB ” ) issued Accounting Standards Update 2021-08, “ Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, ” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers as if the acquirer had originated the contracts. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2022 on a prospective basis and early adoption is permitted. We early adopted this standard in the third quarter of 2022 which did not have a material impact on our consolidated financial statements and related disclosures. (ii) Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the FASB 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	9 Months Ended
	Sep. 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 September 30, 2022 and December 31, 2021 (in thousands): Reported as: September 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 709,497 $ — $ — $ 709,497 $ 709,497 $ — $ — Money market funds 335,026 — — 335,026 335,026 — — Corporate bonds 70,560 — (3,405) 67,155 — 29,454 37,701 U.S. government treasury bonds 18,587 — (641) 17,946 — 9,078 8,868 Asset-backed securities 5,624 — (53) 5,571 — 3,695 1,876 Municipal bonds 4,780 — (93) 4,687 — 4,015 672 U.S. government agency bonds 1,204 — (65) 1,139 — — 1,139 Total $ 1,145,278 $ — $ (4,257) $ 1,141,021 $ 1,044,523 $ 46,242 $ 50,256 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Due in 1 year or less $ 35,157 $ 59,737 Due in 1 year through 5 years 61,341 139,113 Total $ 96,498 $ 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 September 30, 2022 and December 31, 2021 are primarily due to changes in interest rates and credit spreads. Accounts Receivable Factoring During the third quarter of 2022, we entered into factoring transactions on a non-recourse basis with financial institutions to sell certain of our non-U.S. accounts receivable. We account for these transactions as sales of accounts receivables and include the cash proceeds as a part of our cash flows from operations in the Condensed Consolidated Statements of Cash Flows. Total accounts receivable sold under the factoring arrangements was $22.9 million during the three months ended September 30, 2022. Factoring fees on the sales of receivables were recorded in other income (expense), net in our Condensed Consolidated Statement of Operations and were not material. 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 September 30, 2022 and December 31, 2021 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 335,026 $ 335,026 $ — $ — Short-term investments: U.S. government treasury bonds 9,078 9,078 — — Corporate bonds 29,454 — 29,454 — Municipal bonds 4,015 — 4,015 — Asset-backed securities 3,695 — 3,695 — Long-term investments: U.S. government treasury bonds 8,868 8,868 — — Corporate bonds 37,701 — 37,701 — Municipal bonds 672 — 672 — U.S. government agency bonds 1,139 — 1,139 — Asset-backed securities 1,876 — 1,876 — Other assets: Investments in privately held companies 12,180 — — 12,180 $ 443,704 $ 352,972 $ 78,552 $ 12,180 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 September 30, 2022 and 2021, we recognized net gains of $34.6 million and $14.7 million, respectively, and during the nine months ended September 30, 2022 and 2021, we recognized net gains of $43.8 million and $14.1 million, respectively. As of September 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €181,300 $ 177,102 Chinese Yuan ¥569,000 79,875 Canadian Dollar C$92,800 67,607 Polish Zloty PLN315,800 63,306 British Pound £44,200 48,974 Japanese Yen ¥6,224,000 43,194 Brazilian Real R$200,000 36,666 Swiss Franc CHF24,800 25,391 Israeli Shekel ILS78,390 22,021 Mexican Peso M$283,900 14,088 Korean Won ₩8,200,000 5,710 Australian Dollar A$4,090 2,653 New Taiwan Dollar NT$70,000 2,200 Czech Koruna Kč40,000 1,585 New Zealand Dollar NZ$2,500 1,419 $ 591,791 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	9 Months Ended
	Sep. 30, 2022
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 147,629 $ 123,234 Work in process 101,179 51,706 Finished goods 72,095 55,290 Total inventories $ 320,903 $ 230,230 Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, Value added tax receivables $ 132,070 $ 93,610 Prepaid expenses 50,567 70,218 Other current assets 46,646 31,477 Total prepaid expenses and other current assets $ 229,283 $ 195,305 Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and benefits $ 137,754 $ 288,355 Accrued expenses 66,859 67,169 Accrued sales and marketing expenses 35,661 41,387 Current operating lease liabilities 24,173 22,719 Accrued property, plant and equipment 22,648 46,561 Accrued professional fees 21,260 31,457 Other accrued liabilities 75,263 109,667 Total accrued liabilities $ 383,618 $ 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): Nine Months Ended 2022 2021 Balance at beginning of period $ 16,169 $ 12,615 Charged to cost of net revenues 11,359 13,400 Actual warranty expenditures (11,109) (11,040) Balance at end of period $ 16,419 $ 14,975 Deferred revenues consist of the following (in thousands): September 30, December 31, Deferred revenues - current $ 1,286,867 $ 1,152,870 Deferred revenues - long-term 1 $ 152,070 $ 136,684 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet During the three months ended September 30, 2022 and 2021, we recognized $890.3 million and $1,015.9 million of net revenues, respectively, of which $156.5 million and $122.2 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively. During the nine months ended September 30, 2022 and 2021, we recognized $2,833.1 million and $2,921.5 million of net revenues, respectively, of which $519.8 million and $382.4 million was included in the deferred revenues balance at December 31, 2021 and 2020, respectively. Our unfulfilled performance obligations, including deferred revenues and backlog, as of September 30, 2022 were $1,442.5 million. These performance obligations are expected to be fulfilled over six months to five years.

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets	9 Months Ended
	Sep. 30, 2022
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets During the three months ended September 30, 2022, we completed an immaterial business combination which increased goodwill and existing technology intangible assets. Goodwill The change in the carrying value of goodwill for the nine months ended September 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 Additions from acquisition — 8,729 8,729 Foreign currency translation adjustments (6,694) (42,966) (49,660) Balance as of September 30, 2022 $ 105,514 $ 272,102 $ 377,616 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 September 30, 2022 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of September 30, 2022 Existing technology 10 $ 112,051 $ (30,589) $ (4,328) $ 77,134 Customer relationships 10 21,500 (5,375) — 16,125 Trademarks and tradenames 10 17,200 (5,925) (4,179) 7,096 Patents 8 6,511 (5,090) — 1,421 $ 157,262 $ (46,979) $ (8,507) 101,776 Foreign currency translation adjustments (10,065) Total intangible assets, net 1 $ 91,711 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2021 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2021 Existing technology 10 $ 104,531 $ (22,495) $ (4,328) $ 77,708 Customer relationships 11 55,000 (25,891) (10,751) 18,358 Trademarks and tradenames 10 17,200 (4,547) (4,179) 8,474 Patents 8 6,511 (4,495) — 2,016 $ 183,242 $ (57,428) $ (19,258) 106,556 Foreign currency translation adjustments 3,153 Total intangible assets, net $ 109,709 The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2022 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2022 $ 4,144 2023 16,501 2024 15,335 2025 14,959 2026 14,353 Thereafter 36,484 Total $ 101,776 Amortization expense for the three months ended September 30, 2022 and 2021 was $3.9 million and $4.4 million, respectively, and amortization expense for the nine months ended September 30, 2022 and 2021 was $12.1 million and $12.2 million, respectively.

Credit Facility

Credit Facility	9 Months Ended
	Sep. 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 September 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	9 Months Ended
	Sep. 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 is currently stayed. 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 is currently stayed. 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 the court denied on August 15, 2022. 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 were similar to those presented in the 2020 Securities Class Action Lawsuit, but this complaint asserted state law claims for breach of fiduciary duty and insider trading. The complaint sought unspecified monetary damages on behalf of Align, which was 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. Following the denial of the petition for rehearing or hearing en banc in the 2020 Securities Class Action appeal, Plaintiff in the derivative lawsuit agreed to voluntarily dismiss the case. The parties filed a stipulation of dismissal on August 26, 2022, which the court granted. 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. On October 3, 2022, Plaintiffs filed a fourth 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 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 intends to 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. On October 27, 2022, the arbitrator issued an interim award on Align’s claims and SDC’s first counterclaim finding that SDC breached the Supply Agreement, Align did not breach the Supply Agreement, and SDC caused harm to Align. Based on these findings, the arbitrator awarded Align an interim award that, when confirmed, may be material to our results in the quarter reported. Unless otherwise accelerated by the arbitrator, the final amount payable to Align will be determined after the disposition of SDC’s second counterclaim. Align anticipates recognizing the amount ultimately realizable following confirmation of the final award. Align is currently unable to predict the outcome of SDC’s second counterclaim and therefore cannot determine the likelihood of loss or success nor estimate a range of possible loss or success, if any. In addition to the above, in the ordinary course of Align’s operations, Align is involved in a variety of claims, suits, investigations, and proceedings, including actions with respect to intellectual property claims, patent infringement claims, government investigations, labor and employment claims, breach of contract claims, tax, and other matters. Regardless of the outcome, these proceedings can have an adverse impact on us because of defense costs, diversion of management resources, and other factors. Although the results of complex legal proceedings are difficult to predict and Align’s view of these matters may change in the future as litigation and events related thereto unfold; Align currently does not believe that these matters, individually or in the aggregate, will materially affect Align’s financial position, results of operations or cash flows.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Off-Balance Sheet Arrangements As of September 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 September 30, 2022, we did not have any material indemnification claims that were probable or reasonably possible.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity As of September 30, 2022, the 2005 Incentive Plan, as amended, has a total reserve of 27,783,379 shares of which 3,757,122 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 nine months ended September 30, 2022 and 2021 is as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of net revenues $ 1,651 $ 1,451 $ 4,779 $ 4,175 Selling, general and administrative 25,293 22,229 76,509 67,131 Research and development 5,974 4,722 17,391 13,192 Total stock-based compensation $ 32,918 $ 28,402 $ 98,679 $ 84,498 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 nine months ended September 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 239 478.94 Vested and released (196) 334.10 Forfeited (35) 433.42 Unvested as of September 30, 2022 500 $ 430.73 1.4 $ 103,619 As of September 30, 2022, we expect to recognize $154.1 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 2.4 years. Market-Performance Based Restricted Stock Units (“MSUs”) We grant MSUs to 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 nine months ended September 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 September 30, 2022 144 $ 725.73 1.2 $ 29,838 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 September 30, 2022, we expect to recognize $47.7 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 1.2 years. Employee Stock Purchase Plan As of September 30, 2022, we have 2,108,898 shares available for future issuance under our Amended and Restated 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”). The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Expected term (in years) 1.5 1.2 1.5 1.1 Expected volatility 52.3 % 51.1 % 50.2 % 52.7 % Risk-free interest rate 2.9 % 0.1 % 1.8 % 0.1 % Expected dividends — — — — Weighted average fair value at grant date $ 112.84 $ 257.89 $ 159.44 $ 246.84 As of September 30, 2022, we expect to recognize $22.0 million of total unamortized compensation costs related to future employee stock purchases over a weighted average period of 1.1 years.

Common Stock Repurchase Program

Common Stock Repurchase Program	9 Months Ended
	Sep. 30, 2022
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Program	Common Stock Repurchase ProgramIn 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 September 30, 2022, we have $449.9 million available for repurchases under the May 2021 Repurchase Program. Accelerated Share Repurchase Agreements (“ASRs”) During the nine months ended September 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 Q3 2021 May 2021 $ 75.0 Q3 2021 109,239 $ 686.91 Q2 2022 May 2021 $ 200.0 Q2 2022 756,502 $ 264.37 Subsequent to the third quarter, on October 28, 2022, we entered into an ASR to repurchase $200.0 million of our common stock. We paid $200.0 million and received an initial delivery of approximately 0.8 million shares based on current market prices. The final number of shares to be repurchased will be based on our volume-weighted average stock price under the terms of the ASR, less an agreed upon discount. Open Market Common Stock Repurchases During the nine months ended September 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	9 Months Ended
	Sep. 30, 2022
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $49.9 million and $81.0 million for the three months ended September 30, 2022 and 2021, respectively, representing effective tax rates of 40.7% and 30.9%, respectively. Our provision for income taxes was $163.9 million and $211.4 million for the nine months ended September 30, 2022 and 2021, respectively, representing effective tax rates of 33.9% and 26.7%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three and nine months ended September 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 nine months ended September 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 2017. 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 nine months ended September 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 $134.2 million and $63.3 million as of September 30, 2022 and December 31, 2021, respectively, a material amount of which would impact our effective tax rate if recognized. The increase in our unrecognized tax benefits relates primarily to positions taken on income tax return calculations finalized during the three months ended September 30, 2022 . We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income taxes. Total interest and penalties accrued as of September 30, 2022 was $5.5 million. While we defend income tax audits in various jurisdictions and the results of such audits may differ materially from the amounts accrued for each year, we cannot currently ascertain the bases on which any given audit will be ultimately resolved. Accordingly, we are unable to estimate the range of possible adjustments to our balance of gross unrecognized tax benefits in the next 12 months. The U.S. Inflation Reduction Act of 2022 ( “ IRA ”) was enacted in the United States on August 16, 2022. The IRA imposes a 15% alternative minimum tax on the financial statement income of certain corporations which is effective for tax years beginning after December 31, 2022, as well as a 1% excise tax on the net fair market value of stock repurchases made after December 31, 2022. Based upon our analysis of the IRA, we have determined there is no impact to our tax provision for the three and nine months ended September 30, 2022. We will continue to evaluate the impact of these tax law changes on future periods.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 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 Nine Months Ended 2022 2021 2022 2021 Numerator: Net income $ 72,700 $ 180,969 $ 319,798 $ 581,059 Denominator: Weighted average common shares outstanding, basic 78,093 78,904 78,408 78,971 Dilutive effect of potential common stock 144 612 244 706 Total shares, diluted 78,237 79,516 78,652 79,677 Net income per share, basic $ 0.93 $ 2.29 $ 4.08 $ 7.36 Net income per share, diluted $ 0.93 $ 2.28 $ 4.07 $ 7.29 Anti-dilutive potential common shares 1 345 83 317 67 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 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): Nine Months Ended 2022 2021 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 41,255 $ 72,531 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 23,310 $ 21,626 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 26,532 $ 31,635

Segments and Geographical Infor

Segments and Geographical Information	9 Months Ended
	Sep. 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 Nine Months Ended 2022 2021 2022 2021 Net revenues Clear Aligner $ 732,837 $ 837,593 $ 2,340,931 $ 2,431,821 Systems and Services 157,511 178,313 492,189 489,664 Total net revenues $ 890,348 $ 1,015,906 $ 2,833,120 $ 2,921,485 Gross profit Clear Aligner $ 519,387 $ 638,169 $ 1,710,328 $ 1,869,368 Systems and Services 99,782 116,987 305,746 321,424 Total gross profit $ 619,169 $ 755,156 $ 2,016,074 $ 2,190,792 Income from operations Clear Aligner $ 259,434 $ 346,957 $ 879,362 $ 1,022,048 Systems and Services 44,436 65,791 140,834 177,694 Unallocated corporate expenses (160,214) (151,588) (490,262) (444,234) Total income from operations $ 143,656 $ 261,160 $ 529,934 $ 755,508 Stock-based compensation Clear Aligner $ 4,377 $ 2,824 $ 10,232 $ 7,750 Systems and Services 240 169 690 514 Unallocated corporate expenses 28,301 25,409 87,757 76,234 Total stock-based compensation $ 32,918 $ 28,402 $ 98,679 $ 84,498 Depreciation and amortization Clear Aligner $ 14,678 $ 13,191 $ 42,474 $ 36,481 Systems and Services 7,181 5,827 20,879 14,994 Unallocated corporate expenses 10,330 8,596 28,743 27,666 Total depreciation and amortization $ 32,189 $ 27,614 $ 92,096 $ 79,141 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 Nine Months Ended 2022 2021 2022 2021 Total segment income from operations $ 303,870 $ 412,748 $ 1,020,196 $ 1,199,742 Unallocated corporate expenses (160,214) (151,588) (490,262) (444,234) Total income from operations 143,656 261,160 529,934 755,508 Interest income 1,685 401 2,607 2,427 Other income (expense), net (22,700) 427 (48,805) 34,476 Net income before provision for income taxes $ 122,641 $ 261,988 $ 483,736 $ 792,411 Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net revenues 1 : U.S. $ 400,045 $ 448,858 $ 1,251,018 $ 1,266,258 Switzerland 257,845 323,036 919,935 1,004,820 Other International 232,458 244,012 662,167 650,407 Total net revenues $ 890,348 $ 1,015,906 $ 2,833,120 $ 2,921,485 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): September 30, December 31, 2021 Long-lived assets 1 : Switzerland $ 519,202 $ 444,205 U.S. 214,975 210,582 China 112,715 125,346 Other International 469,019 423,050 Total long-lived assets $ 1,315,911 $ 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)	9 Months Ended
	Sep. 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 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 Our business has been materially impacted by fluctuations in macroeconomic conditions, exacerbated by the ongoing geopolitical issues between Russia and Ukraine. While the situation is highly uncertain and evolving, we have been and continue to be impacted by factors such as inflation, supply chain challenges, rising interest rates, volatilities in the financial market, foreign currency exchange rate fluctuations, impacts on consumer confidence and purchasing power, and global recession concerns which could further subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. 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 (i) New Accounting Updates Recently Adopted In October 2021, the Financial Accounting Standards Board ( “ FASB ” ) issued Accounting Standards Update 2021-08, “ Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, ” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers as if the acquirer had originated the contracts. The updated guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2022 on a prospective basis and early adoption is permitted. We early adopted this standard in the third quarter of 2022 which did not have a material impact on our consolidated financial statements and related disclosures. (ii) Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the FASB 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)	9 Months Ended
	Sep. 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 September 30, 2022 and December 31, 2021 (in thousands): Reported as: September 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 709,497 $ — $ — $ 709,497 $ 709,497 $ — $ — Money market funds 335,026 — — 335,026 335,026 — — Corporate bonds 70,560 — (3,405) 67,155 — 29,454 37,701 U.S. government treasury bonds 18,587 — (641) 17,946 — 9,078 8,868 Asset-backed securities 5,624 — (53) 5,571 — 3,695 1,876 Municipal bonds 4,780 — (93) 4,687 — 4,015 672 U.S. government agency bonds 1,204 — (65) 1,139 — — 1,139 Total $ 1,145,278 $ — $ (4,257) $ 1,141,021 $ 1,044,523 $ 46,242 $ 50,256 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 September 30, 2022 and December 31, 2021 (in thousands): Reported as: September 30, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 709,497 $ — $ — $ 709,497 $ 709,497 $ — $ — Money market funds 335,026 — — 335,026 335,026 — — Corporate bonds 70,560 — (3,405) 67,155 — 29,454 37,701 U.S. government treasury bonds 18,587 — (641) 17,946 — 9,078 8,868 Asset-backed securities 5,624 — (53) 5,571 — 3,695 1,876 Municipal bonds 4,780 — (93) 4,687 — 4,015 672 U.S. government agency bonds 1,204 — (65) 1,139 — — 1,139 Total $ 1,145,278 $ — $ (4,257) $ 1,141,021 $ 1,044,523 $ 46,242 $ 50,256 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Due in 1 year or less $ 35,157 $ 59,737 Due in 1 year through 5 years 61,341 139,113 Total $ 96,498 $ 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 September 30, 2022 and December 31, 2021 (in thousands): Description Balance as of Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 335,026 $ 335,026 $ — $ — Short-term investments: U.S. government treasury bonds 9,078 9,078 — — Corporate bonds 29,454 — 29,454 — Municipal bonds 4,015 — 4,015 — Asset-backed securities 3,695 — 3,695 — Long-term investments: U.S. government treasury bonds 8,868 8,868 — — Corporate bonds 37,701 — 37,701 — Municipal bonds 672 — 672 — U.S. government agency bonds 1,139 — 1,139 — Asset-backed securities 1,876 — 1,876 — Other assets: Investments in privately held companies 12,180 — — 12,180 $ 443,704 $ 352,972 $ 78,552 $ 12,180 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €181,300 $ 177,102 Chinese Yuan ¥569,000 79,875 Canadian Dollar C$92,800 67,607 Polish Zloty PLN315,800 63,306 British Pound £44,200 48,974 Japanese Yen ¥6,224,000 43,194 Brazilian Real R$200,000 36,666 Swiss Franc CHF24,800 25,391 Israeli Shekel ILS78,390 22,021 Mexican Peso M$283,900 14,088 Korean Won ₩8,200,000 5,710 Australian Dollar A$4,090 2,653 New Taiwan Dollar NT$70,000 2,200 Czech Koruna Kč40,000 1,585 New Zealand Dollar NZ$2,500 1,419 $ 591,791 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)	9 Months Ended
	Sep. 30, 2022
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 147,629 $ 123,234 Work in process 101,179 51,706 Finished goods 72,095 55,290 Total inventories $ 320,903 $ 230,230
Schedule of Prepaid Expense and Other Assets	Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, Value added tax receivables $ 132,070 $ 93,610 Prepaid expenses 50,567 70,218 Other current assets 46,646 31,477 Total prepaid expenses and other current assets $ 229,283 $ 195,305
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and benefits $ 137,754 $ 288,355 Accrued expenses 66,859 67,169 Accrued sales and marketing expenses 35,661 41,387 Current operating lease liabilities 24,173 22,719 Accrued property, plant and equipment 22,648 46,561 Accrued professional fees 21,260 31,457 Other accrued liabilities 75,263 109,667 Total accrued liabilities $ 383,618 $ 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): Nine Months Ended 2022 2021 Balance at beginning of period $ 16,169 $ 12,615 Charged to cost of net revenues 11,359 13,400 Actual warranty expenditures (11,109) (11,040) Balance at end of period $ 16,419 $ 14,975
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): September 30, December 31, Deferred revenues - current $ 1,286,867 $ 1,152,870 Deferred revenues - long-term 1 $ 152,070 $ 136,684 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Notes To Financial Statements [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the nine months ended September 30, 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 Additions from acquisition — 8,729 8,729 Foreign currency translation adjustments (6,694) (42,966) (49,660) Balance as of September 30, 2022 $ 105,514 $ 272,102 $ 377,616
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 September 30, 2022 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of September 30, 2022 Existing technology 10 $ 112,051 $ (30,589) $ (4,328) $ 77,134 Customer relationships 10 21,500 (5,375) — 16,125 Trademarks and tradenames 10 17,200 (5,925) (4,179) 7,096 Patents 8 6,511 (5,090) — 1,421 $ 157,262 $ (46,979) $ (8,507) 101,776 Foreign currency translation adjustments (10,065) Total intangible assets, net 1 $ 91,711 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2021 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2021 Existing technology 10 $ 104,531 $ (22,495) $ (4,328) $ 77,708 Customer relationships 11 55,000 (25,891) (10,751) 18,358 Trademarks and tradenames 10 17,200 (4,547) (4,179) 8,474 Patents 8 6,511 (4,495) — 2,016 $ 183,242 $ (57,428) $ (19,258) 106,556 Foreign currency translation adjustments 3,153 Total intangible assets, net $ 109,709
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of September 30, 2022 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2022 $ 4,144 2023 16,501 2024 15,335 2025 14,959 2026 14,353 Thereafter 36,484 Total $ 101,776

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2022 and 2021 is as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of net revenues $ 1,651 $ 1,451 $ 4,779 $ 4,175 Selling, general and administrative 25,293 22,229 76,509 67,131 Research and development 5,974 4,722 17,391 13,192 Total stock-based compensation $ 32,918 $ 28,402 $ 98,679 $ 84,498
Summary Of Restricted Stock Units	A summary for the nine months ended September 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 239 478.94 Vested and released (196) 334.10 Forfeited (35) 433.42 Unvested as of September 30, 2022 500 $ 430.73 1.4 $ 103,619
Summary Of Market-performance Based Restricted Stock Units	The following table summarizes the MSU performance for the nine months ended September 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 September 30, 2022 144 $ 725.73 1.2 $ 29,838
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Expected term (in years) 1.5 1.2 1.5 1.1 Expected volatility 52.3 % 51.1 % 50.2 % 52.7 % Risk-free interest rate 2.9 % 0.1 % 1.8 % 0.1 % Expected dividends — — — — Weighted average fair value at grant date $ 112.84 $ 257.89 $ 159.44 $ 246.84

Common Stock Repurchase Progr_2

Common Stock Repurchase Program (Tables)	9 Months Ended
	Sep. 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 Q3 2021 May 2021 $ 75.0 Q3 2021 109,239 $ 686.91 Q2 2022 May 2021 $ 200.0 Q2 2022 756,502 $ 264.37

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended 2022 2021 2022 2021 Numerator: Net income $ 72,700 $ 180,969 $ 319,798 $ 581,059 Denominator: Weighted average common shares outstanding, basic 78,093 78,904 78,408 78,971 Dilutive effect of potential common stock 144 612 244 706 Total shares, diluted 78,237 79,516 78,652 79,677 Net income per share, basic $ 0.93 $ 2.29 $ 4.08 $ 7.36 Net income per share, diluted $ 0.93 $ 2.28 $ 4.07 $ 7.29 Anti-dilutive potential common shares 1 345 83 317 67 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2022
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Nine Months Ended 2022 2021 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 41,255 $ 72,531 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 23,310 $ 21,626 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 26,532 $ 31,635

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended 2022 2021 2022 2021 Net revenues Clear Aligner $ 732,837 $ 837,593 $ 2,340,931 $ 2,431,821 Systems and Services 157,511 178,313 492,189 489,664 Total net revenues $ 890,348 $ 1,015,906 $ 2,833,120 $ 2,921,485 Gross profit Clear Aligner $ 519,387 $ 638,169 $ 1,710,328 $ 1,869,368 Systems and Services 99,782 116,987 305,746 321,424 Total gross profit $ 619,169 $ 755,156 $ 2,016,074 $ 2,190,792 Income from operations Clear Aligner $ 259,434 $ 346,957 $ 879,362 $ 1,022,048 Systems and Services 44,436 65,791 140,834 177,694 Unallocated corporate expenses (160,214) (151,588) (490,262) (444,234) Total income from operations $ 143,656 $ 261,160 $ 529,934 $ 755,508 Stock-based compensation Clear Aligner $ 4,377 $ 2,824 $ 10,232 $ 7,750 Systems and Services 240 169 690 514 Unallocated corporate expenses 28,301 25,409 87,757 76,234 Total stock-based compensation $ 32,918 $ 28,402 $ 98,679 $ 84,498 Depreciation and amortization Clear Aligner $ 14,678 $ 13,191 $ 42,474 $ 36,481 Systems and Services 7,181 5,827 20,879 14,994 Unallocated corporate expenses 10,330 8,596 28,743 27,666 Total depreciation and amortization $ 32,189 $ 27,614 $ 92,096 $ 79,141 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 Nine Months Ended 2022 2021 2022 2021 Total segment income from operations $ 303,870 $ 412,748 $ 1,020,196 $ 1,199,742 Unallocated corporate expenses (160,214) (151,588) (490,262) (444,234) Total income from operations 143,656 261,160 529,934 755,508 Interest income 1,685 401 2,607 2,427 Other income (expense), net (22,700) 427 (48,805) 34,476 Net income before provision for income taxes $ 122,641 $ 261,988 $ 483,736 $ 792,411
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	Net revenues are presented below by geographic area (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net revenues 1 : U.S. $ 400,045 $ 448,858 $ 1,251,018 $ 1,266,258 Switzerland 257,845 323,036 919,935 1,004,820 Other International 232,458 244,012 662,167 650,407 Total net revenues $ 890,348 $ 1,015,906 $ 2,833,120 $ 2,921,485 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): September 30, December 31, 2021 Long-lived assets 1 : Switzerland $ 519,202 $ 444,205 U.S. 214,975 210,582 China 112,715 125,346 Other International 469,019 423,050 Total long-lived assets $ 1,315,911 $ 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	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Cash, cash equivalents and marketable securities	$ 1,145,278	$ 1,297,157
Gross Unrealized Gains
Cash, cash equivalents and marketable securities	0	9
Gross Unrealized Losses
Cash, cash equivalents and marketable securities	(4,257)	(504)
Fair Value
Cash and cash equivalents	1,044,523	1,099,370
Marketable securities	96,498	198,850
Cash, cash equivalents and marketable securities	1,141,021	1,296,662
Cash
Amortized Cost
Cash and cash equivalents	709,497	754,802
Fair Value
Cash and cash equivalents	709,497	754,802
Cash and Cash Equivalents
Fair Value
Cash, cash equivalents and marketable securities	1,044,523	1,099,370
Cash and Cash Equivalents | Cash
Fair Value
Cash and cash equivalents	709,497	754,802
Marketable securities, short-term
Fair Value
Cash, cash equivalents and marketable securities	46,242	71,972
Marketable securities, long-term
Fair Value
Cash, cash equivalents and marketable securities	50,256	125,320
Money market funds
Amortized Cost
Cash and cash equivalents	335,026	343,012
Gross Unrealized Losses
Cash and cash equivalents		(2)
Fair Value
Cash and cash equivalents	335,026	343,010
Money market funds | Cash and Cash Equivalents
Fair Value
Cash and cash equivalents	335,026	343,010
Corporate bonds
Amortized Cost
Marketable securities	70,560	115,507
Gross Unrealized Gains
Marketable securities	0	9
Gross Unrealized Losses
Marketable securities	(3,405)	(398)
Fair Value
Marketable securities	67,155	115,118
Corporate bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		1,042
Corporate bonds | Marketable securities, short-term
Fair Value
Marketable securities	29,454	35,065
Corporate bonds | Marketable securities, long-term
Fair Value
Marketable securities	37,701	79,011
U.S. government treasury bonds
Amortized Cost
Marketable securities	18,587	42,976
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(641)	(48)
Fair Value
Marketable securities	17,946	42,928
U.S. government treasury bonds | Marketable securities, short-term
Fair Value
Marketable securities	9,078	22,251
U.S. government treasury bonds | Marketable securities, long-term
Fair Value
Marketable securities	8,868	20,677
Asset-backed securities
Amortized Cost
Marketable securities	5,624	32,031
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(53)	(40)
Fair Value
Marketable securities	5,571	31,991
Asset-backed securities | Marketable securities, short-term
Fair Value
Marketable securities	3,695	10,999
Asset-backed securities | Marketable securities, long-term
Fair Value
Marketable securities	1,876	20,992
Municipal bonds
Amortized Cost
Marketable securities	4,780	7,628
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(93)	(15)
Fair Value
Marketable securities	4,687	7,613
Municipal bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		516
Municipal bonds | Marketable securities, short-term
Fair Value
Marketable securities	4,015	3,657
Municipal bonds | Marketable securities, long-term
Fair Value
Marketable securities	672	3,440
U.S. government agency bonds
Amortized Cost
Marketable securities	1,204	1,201
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(65)	(1)
Fair Value
Marketable securities	1,139	1,200
U.S. government agency bonds | Marketable securities, long-term
Fair Value
Marketable securities	$ 1,139	$ 1,200

Financial Instruments - Contrac

Financial Instruments - Contractual Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 35,157	$ 59,737
Due in 1 year through 5 years	61,341	139,113
Total	$ 96,498	$ 198,850

Financial Instruments - Fair Va

Financial Instruments - Fair Value Measured On A Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	$ 46,242	$ 71,972
Long-term investments	50,256	125,320
Assets measured at fair value	443,704	554,322
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	352,972	385,938
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	78,552	159,763
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	12,180	8,621
U.S. government treasury bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	9,078	22,251
Long-term investments	8,868	20,677
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	9,078	22,251
Long-term investments	8,868	20,677
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
U.S. government treasury bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Short-term investments	29,454	35,065
Long-term investments	37,701	79,011
Corporate bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Long-term investments	0	0
Corporate bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		1,042
Short-term investments	29,454	35,065
Long-term investments	37,701	79,011
Corporate bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Long-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Short-term investments	4,015	3,657
Long-term investments	672	3,440
Municipal bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Long-term investments	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		516
Short-term investments	4,015	3,657
Long-term investments	672	3,440
Municipal bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Long-term investments	0	0
U.S. government agency bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,139	1,200
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 1
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
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	1,139	1,200
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,695	10,999
Long-term investments	1,876	20,992
Asset-backed securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	3,695	10,999
Long-term investments	1,876	20,992
Asset-backed securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Israeli funds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Israeli funds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		3,841
Israeli funds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Israeli funds		0
Investments in privately held companies | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	12,180	8,621
Investments in privately held companies | Fair Value, Nonrecurring | Level 1
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
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
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in privately held companies	12,180	8,621
Money market funds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	335,026	343,010
Money market funds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	335,026	343,010
Money market funds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	0	0
Money market funds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	$ 0	$ 0

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Marketable Securities and Fair Value Measurements [Abstract]
Accounts receivable sold	$ 22.9
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains on derivatives	34.6	$ 14.7	$ 43.8	$ 14.1
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, £ in Thousands, zł in Thousands, SFr in Thousands, R$ in Thousands, Kč in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Sep. 30, 2022 EUR (€)

Sep. 30, 2022 USD ($)

Sep. 30, 2022 CNY (¥)

Sep. 30, 2022 CAD ($)

Sep. 30, 2022 PLN (zł)

Sep. 30, 2022 GBP (£)

Sep. 30, 2022 JPY (¥)

Sep. 30, 2022 BRL (R$)

Sep. 30, 2022 CHF (SFr)

Sep. 30, 2022 ILS (₪)

Sep. 30, 2022 MXN ($)

Sep. 30, 2022 KRW (₩)

Sep. 30, 2022 AUD ($)

Sep. 30, 2022 TWD ($)

Sep. 30, 2022 CZK (Kč)

Sep. 30, 2022 NZD ($)

Dec. 31, 2021 EUR (€)

Dec. 31, 2021 USD ($)

Dec. 31, 2021 CNY (¥)

Dec. 31, 2021 CAD ($)

Dec. 31, 2021 PLN (zł)

Dec. 31, 2021 GBP (£)

Dec. 31, 2021 JPY (¥)

Dec. 31, 2021 BRL (R$)

Dec. 31, 2021 CHF (SFr)

Dec. 31, 2021 ILS (₪)

Dec. 31, 2021 MXN ($)

Dec. 31, 2021 AUD ($)

Derivative [Line Items]

Notional amount

$ 591,791

$ 590,170

Euro

Derivative [Line Items]

Notional amount

€ 181,300

177,102

€ 165,110

186,358

Chinese Yuan

Derivative [Line Items]

Notional amount

79,875

¥ 569,000

77,358

¥ 494,500

Canadian Dollar

Derivative [Line Items]

Notional amount

67,607

$ 92,800

78,018

$ 99,800

Polish Zloty

Derivative [Line Items]

Notional amount

63,306

zł 315,800

54,014

zł 219,800

British Pound

Derivative [Line Items]

Notional amount

48,974

£ 44,200

46,881

£ 34,740

Japanese Yen

Derivative [Line Items]

Notional amount

43,194

¥ 6,224,000

48,206

¥ 5,548,700

Brazilian Real

Derivative [Line Items]

Notional amount

36,666

R$ 200000

50,894

R$ 286500

Swiss Franc

Derivative [Line Items]

Notional amount

25,391

SFr 24,800

10,883

SFr 9,950

Israeli Shekel

Derivative [Line Items]

Notional amount

22,021

₪ 78,390

17,416

₪ 54,110

Mexican Peso

Derivative [Line Items]

Notional amount

14,088

$ 283,900

15,133

$ 311,500

Korean Won

Derivative [Line Items]

Notional amount

5,710

₩ 8,200,000

Australian Dollar

Derivative [Line Items]

Notional amount

2,653

$ 4,090

$ 5,009

$ 6,900

New Taiwan Dollar

Derivative [Line Items]

Notional amount

2,200

$ 70,000

Czech Koruna

Derivative [Line Items]

Notional amount

1,585

Kč 40,000

New Zealand Dollar

Derivative [Line Items]

Notional amount

$ 1,419

$ 2,500

Balance Sheet Components Invent

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Raw materials	$ 147,629	$ 123,234
Work in process	101,179	51,706
Finished goods	72,095	55,290
Total inventories	$ 320,903	$ 230,230

Balance Sheet Components Prepai

Balance Sheet Components Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Value added tax receivables	$ 132,070	$ 93,610
Prepaid expenses	50,567	70,218
Other current assets	46,646	31,477
Total prepaid expenses and other current assets	$ 229,283	$ 195,305

Balance Sheet Components Accrue

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 137,754	$ 288,355
Accrued expenses	66,859	67,169
Accrued sales and marketing expenses	35,661	41,387
Current operating lease liabilities	24,173	22,719
Accrued property, plant and equipment	22,648	46,561
Accrued professional fees	21,260	31,457
Other accrued liabilities	75,263	109,667
Accrued liabilities	$ 383,618	$ 607,315

Balance Sheet Components Warran

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 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	11,359	13,400
Actual warranty expenditures	(11,109)	(11,040)
Balance at end of period	$ 16,419	$ 14,975

Balance Sheet Components Deferr

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 1,286,867	$ 1,152,870
Deferred revenues - long-term	$ 152,070	$ 136,684

Balance Sheet Components Narrat

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 890,348	$ 1,015,906	$ 2,833,120	$ 2,921,485
Deferred revenues	156,500	$ 122,200	519,800	$ 382,400
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation	$ 1,442,500		$ 1,442,500
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months		6 months
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
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	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2021	$ 418,547
Additions from acquisition	8,729
Foreign currency translation adjustments	(49,660)
Balance as of September 30, 2022	377,616
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2021	112,208
Additions from acquisition	0
Foreign currency translation adjustments	(6,694)
Balance as of September 30, 2022	105,514
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2021	306,339
Additions from acquisition	8,729
Foreign currency translation adjustments	(42,966)
Balance as of September 30, 2022	$ 272,102

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 157,262	$ 183,242
Accumulated Amortization	(46,979)	(57,428)
Accumulated Impairment Loss	(8,507)	(19,258)
Net carrying value	101,776	106,556
Foreign currency translation adjustments	(10,065)	3,153
Total intangible assets	$ 91,711	$ 109,709
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount	$ 112,051	$ 104,531
Accumulated Amortization	(30,589)	(22,495)
Accumulated Impairment Loss	(4,328)	(4,328)
Net carrying value	$ 77,134	$ 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	(5,375)	(25,891)
Accumulated Impairment Loss	0	(10,751)
Net carrying value	16,125	$ 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	(5,925)	(4,547)
Accumulated Impairment Loss	(4,179)	(4,179)
Net carrying value	$ 7,096	$ 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	(5,090)	(4,495)
Accumulated Impairment Loss	0	0
Net carrying value	$ 1,421	$ 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	Sep. 30, 2022	Dec. 31, 2021
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2022	$ 4,144
2023	16,501
2024	15,335
2025	14,959
2026	14,353
Thereafter	36,484
Net carrying value	$ 101,776	$ 106,556

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 3.9	$ 4.4	$ 12.1	$ 12.2

Credit Facility - Additional In

Credit Facility - Additional Information (Details) - 2020 Credit Facility - USD ($)	Jul. 21, 2020	Sep. 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	9 Months Ended
	Sep. 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	3,757,122
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance | shares	2,108,898
Total unamortized compensation cost | $	$ 22
Weighted average period of total unamortized cost (in years)	1 year 1 month 6 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Total unamortized compensation cost | $	$ 154.1
Weighted average period of total unamortized cost (in years)	2 years 4 months 24 days
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Total unamortized compensation cost | $	$ 47.7
Weighted average period of total unamortized cost (in years)	1 year 2 months 12 days
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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 32,918	$ 28,402	$ 98,679	$ 84,498
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,651	1,451	4,779	4,175
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	25,293	22,229	76,509	67,131
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 5,974	$ 4,722	$ 17,391	$ 13,192

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 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	239
Vested and released (in shares) | shares	(196)
Forfeited (in shares) | shares	(35)
Unvested, end of period (in shares) | shares	500
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) | $ / shares	$ 369.17
Granted (in usd per share) | $ / shares	478.94
Vested and released (in usd per share) | $ / shares	334.10
Forfeited (in usd per share) | $ / shares	433.42
Unvested, end of period (in usd per share) | $ / shares	$ 430.73
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 4 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 103,619
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 2 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 29,838

Stockholders' Equity - Stock-_2

Stockholders' Equity - Stock-based Compensation Employee Stock Purchase Plan Fair Value Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Class of Stock [Line Items]
Expected term (in years)	1 year 6 months	1 year 2 months 12 days	1 year 6 months	1 year 1 month 6 days
Expected volatility	52.30%	51.10%	50.20%	52.70%
Risk-free interest rate	2.90%	0.10%	1.80%	0.10%
Expected dividends	0%	0%	0%	0%
Weighted average fair value at grant date (in usd per share)	$ 112.84	$ 257.89	$ 159.44	$ 246.84

Common Stock Repurchase Progr_3

Common Stock Repurchase Program - Additional Information (Details) - USD ($)		3 Months Ended			6 Months Ended	9 Months Ended
	Oct. 28, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	May 31, 2021	May 31, 2018
Share Repurchases [Line Items]
Amount paid						$ 275,036,000	$ 275,038,000
Common stock repurchased and retired			$ 115,038,000			275,036,000	$ 275,038,000
Subsequent Event
Share Repurchases [Line Items]
Authorized repurchase amount	$ 200,000,000
Amount paid	$ 200,000,000
Shares repurchased (in shares)	800,000
May 2018 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount									$ 600,000,000
Amount paid				$ 100,000,000
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
Amount paid		$ 200,000,000	$ 75,000,000	$ 100,000,000
Shares repurchased (in shares)		756,502	109,239		161,707	100,000
Share repurchase price (in dollars per share)		$ 264.37	$ 686.91		$ 618.40	$ 522.61
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	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share Repurchases [Line Items]
Amount paid					$ 275,036	$ 275,038
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	$ 75,000	$ 100,000
Total shares received (in shares)	756,502	109,239		161,707	100,000
Average price per share (in dollars per share)	$ 264.37	$ 686.91		$ 618.40	$ 522.61

Accounting for Income Taxes - A

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Disclosure Accounting For Income Taxes Additional Information [Abstract]
Provision for income taxes	$ 49,941	$ 81,019	$ 163,938	$ 211,352
Effective income tax rate, continuing operations	40.70%	30.90%	33.90%	26.70%
Unrecognized tax benefits	$ 134,200		$ 134,200		$ 63,300
Interest and penalties accrued	$ 5,500		$ 5,500

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 72,700	$ 180,969	$ 319,798	$ 581,059
Weighted average common shares outstanding, basic (in shares)	78,093	78,904	78,408	78,971
Dilutive effect of potential common stock (in shares)	144	612	244	706
Total shares, diluted (in shares)	78,237	79,516	78,652	79,677
Net income per share, basic (in usd per share)	$ 0.93	$ 2.29	$ 4.08	$ 7.36
Net income per share, diluted (in usd per share)	$ 0.93	$ 2.28	$ 4.07	$ 7.29
Anti-dilutive potential common shares (in shares)	345	83	317	67

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$ 41,255	$ 72,531
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	23,310	21,626
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 26,532	$ 31,635

Segments and Geographical Inf_3

Segments and Geographical Information - Additional Information (Details)	9 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 890,348	$ 1,015,906	$ 2,833,120	$ 2,921,485
Gross profit	619,169	755,156	2,016,074	2,190,792
Income from operations	143,656	261,160	529,934	755,508
Stock-based compensation	32,918	28,402	98,679	84,498
Depreciation and amortization	32,189	27,614	92,096	79,141
Interest income	1,685	401	2,607	2,427
Other income (expense), net	(22,700)	427	(48,805)	34,476
Net income before provision for income taxes	122,641	261,988	483,736	792,411
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	303,870	412,748	1,020,196	1,199,742
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(160,214)	(151,588)	(490,262)	(444,234)
Stock-based compensation	28,301	25,409	87,757	76,234
Depreciation and amortization	10,330	8,596	28,743	27,666
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	732,837	837,593	2,340,931	2,431,821
Gross profit	519,387	638,169	1,710,328	1,869,368
Clear Aligner | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	259,434	346,957	879,362	1,022,048
Stock-based compensation	4,377	2,824	10,232	7,750
Depreciation and amortization	14,678	13,191	42,474	36,481
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	157,511	178,313	492,189	489,664
Gross profit	99,782	116,987	305,746	321,424
Systems and Services | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	44,436	65,791	140,834	177,694
Stock-based compensation	240	169	690	514
Depreciation and amortization	$ 7,181	$ 5,827	$ 20,879	$ 14,994

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 890,348	$ 1,015,906	$ 2,833,120	$ 2,921,485
U.S.
Segment Reporting Information [Line Items]
Net revenues	400,045	448,858	1,251,018	1,266,258
Switzerland
Segment Reporting Information [Line Items]
Net revenues	257,845	323,036	919,935	1,004,820
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 232,458	$ 244,012	$ 662,167	$ 650,407

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total long-lived assets	$ 1,315,911	$ 1,203,183
Switzerland
Segment Reporting Information [Line Items]
Total long-lived assets	519,202	444,205
U.S.
Segment Reporting Information [Line Items]
Total long-lived assets	214,975	210,582
China
Segment Reporting Information [Line Items]
Total long-lived assets	112,715	125,346
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	$ 469,019	$ 423,050