Align Technology (ALGN) 10-Q 3 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
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	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		75,281,687

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net revenues	$ 997,431	$ 943,147
Cost of net revenues	299,615	282,493
Gross profit	697,816	660,654
Operating expenses:
Selling, general and administrative	451,822	439,691
Research and development	91,859	87,447
Total operating expenses	543,681	527,138
Income from operations	154,135	133,516
Interest income	4,392	2,337
Other income (expense), net	(141)	(1,229)
Total interest income and other income (expense), net	4,251	1,108
Net income before provision for income taxes	158,386	134,624
Provision for income taxes	53,358	46,826
Net income	$ 105,028	$ 87,798
Net income per share:
Basic (in usd per share)	$ 1.40	$ 1.14
Diluted (in usd per share)	$ 1.39	$ 1.14
Shares used in computing net income per share:
Basic (in shares)	75,175	76,921
Diluted (in shares)	75,322	77,111

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 105,028	$ 87,798
Other comprehensive income (loss):
Change in foreign currency translation adjustment, net of tax	(2,932)	10,474
Change in unrealized gains (losses) on investments, net of tax	203	1,645
Other comprehensive income (loss)	(2,729)	12,119
Comprehensive income	$ 102,299	$ 99,917

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 865,805	$ 937,438
Marketable securities, short-term	33,101	35,304
Accounts receivable, net of allowance for doubtful accounts of $16,026 and $14,893, respectively	950,738	903,424
Inventories	280,076	296,902
Prepaid expenses and other current assets	349,594	273,550
Total current assets	2,479,314	2,446,618
Marketable securities, long-term	3,619	8,022
Property, plant and equipment, net	1,281,709	1,290,863
Operating lease right-of-use assets, net	118,996	117,999
Goodwill	458,235	419,530
Intangible assets, net	121,424	82,118
Deferred tax assets	1,570,626	1,590,045
Other assets	121,831	128,682
Total assets	6,155,754	6,083,877
Current liabilities:
Accounts payable	117,238	113,125
Accrued liabilities	496,601	525,780
Deferred revenues	1,409,202	1,427,706
Total current liabilities	2,023,041	2,066,611
Income tax payable	121,314	116,744
Operating lease liabilities	95,092	96,968
Other long-term liabilities	156,447	173,065
Total liabilities	2,395,894	2,453,388
Commitments and contingencies (Note 7 and Note 8)
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; 75,281 and 75,075 issued and outstanding, respectively)	7	7
Additional paid-in capital	1,238,739	1,162,140
Accumulated other comprehensive income (loss), net	18,439	21,168
Retained earnings	2,502,675	2,447,174
Total stockholders’ equity	3,759,860	3,630,489
Total liabilities and stockholders’ equity	$ 6,155,754	$ 6,083,877

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 16,026	$ 14,893
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	75,281,000	75,075,000
Common stock, shares outstanding	75,281,000	75,075,000

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, 2022			77,267
Beginning Balance at Dec. 31, 2022		$ 3,601,358	$ 8	$ 1,044,946	$ (10,284)	$ 2,566,688
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		87,798				87,798
Net change in unrealized gains (losses) from investments		1,645			1,645
Net change in foreign currency translation adjustment		10,474			10,474
Issuance of common stock relating to employee equity compensation plans (in shares)	[1]		191
Issuance of common stock relating to employee equity compensation plans	[1]	14,256		14,256
Tax withholdings related to net share settlements of equity awards		(20,857)		(20,857)
Common stock repurchased and retired (in shares)			(942)
Common stock repurchased and retired		(292,360)		(11,387)		(280,973)
Equity forward contract related to accelerated stock repurchase		40,000		40,000
Stock-based compensation		37,735		37,735
Ending Balance (in shares) at Mar. 31, 2023			76,516
Ending Balance at Mar. 31, 2023		3,480,049	$ 8	1,104,693	1,835	2,373,513
Beginning Balance (in shares) at Dec. 31, 2023			75,075
Beginning Balance at Dec. 31, 2023		3,630,489	$ 7	1,162,140	21,168	2,447,174
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		105,028				105,028
Net change in unrealized gains (losses) from investments		203			203
Net change in foreign currency translation adjustment		(2,932)			(2,932)
Issuance of common stock relating to employee equity compensation plans (in shares)			328
Issuance of common stock relating to employee equity compensation plans		14,339		14,339
Tax withholdings related to net share settlements of equity awards (in shares)			(86)
Tax withholdings related to net share settlements of equity awards		(26,055)		(26,055)
Common stock repurchased and retired (in shares)			(36)
Equity forward contract related to accelerated stock repurchase		0		49,527		(49,527)
Stock-based compensation		38,788		38,788
Ending Balance (in shares) at Mar. 31, 2024			75,281
Ending Balance at Mar. 31, 2024		$ 3,759,860	$ 7	$ 1,238,739	$ 18,439	$ 2,502,675
[1] 1 Includes tax withholding shares related to net share settlements of equity awards.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 105,028	$ 87,798
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	18,047	(18,417)
Depreciation and amortization	32,946	35,820
Stock-based compensation	38,788	37,735
Non-cash operating lease cost	9,612	7,755
Other non-cash operating activities	(2,359)	11,586
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(69,589)	(32,734)
Inventories	15,573	24,008
Prepaid expenses and other assets	(79,160)	(26,850)
Accounts payable	4,100	5,993
Accrued and other long-term liabilities	(34,473)	37,420
Long-term income tax payable	4,570	2,119
Deferred revenues	(14,419)	27,662
Net cash provided by operating activities	28,664	199,895
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired	(77,075)	0
Purchase of property, plant and equipment	(9,369)	(64,119)
Purchase of marketable securities	0	(2,371)
Proceeds from maturities of marketable securities	6,035	10,870
Proceeds from sales of marketable securities	831	2,785
Other investing activities	(6)	6
Net cash used in investing activities	(79,584)	(52,829)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	14,339	14,256
Common stock repurchases	0	(292,360)
Activity for equity forward contracts related to accelerated stock repurchase agreements, net	0	40,000
Payroll taxes paid upon the vesting of equity awards	(26,055)	(20,857)
Net cash used in financing activities	(11,716)	(258,961)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(9,004)	2,221
Net decrease in cash, cash equivalents, and restricted cash	(71,640)	(109,674)
Cash, cash equivalents, and restricted cash at beginning of the period	938,519	942,355
Cash, cash equivalents, and restricted cash at end of the period	$ 866,879	$ 832,681

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Preparation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, the "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2023, and contain all adjustments, including normal recurring adjustments, necessary to fairly state the information set forth herein. These 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, 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 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 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 We are subject to risks including, but not limited to, global and regional economic market conditions, inflation, fluctuations in foreign currency exchange rates, changes in consumer confidence and demand, increased competition, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration (“FDA”) and similar international agencies. Our cash and investments are held primarily by five financial institutions. Financial instruments which potentially expose us to concentrations of credit risk consist primarily of cash equivalents and marketable securities. We invest excess cash primarily in money market funds, corporate bonds, asset-backed securities, municipal and U.S. government agency bonds and treasury bonds and periodically evaluate them for credit losses. Such credit losses have not been material to our financial statements. We purchase certain inventory from sole suppliers. Additionally, we rely on a limited number of hardware manufacturers. The inability of any supplier or manufacturer to fulfill our supply requirements could materially and adversely impact our future operating results. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Effective On November 27, 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures. ” The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. For public business entities, the provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Companies must apply the guidance retrospectively to all prior periods presented in the financial statements. The Company expects this pronouncement to result in changes to the nature of our reportable segment disclosures; however, we do not expect this new guidance to impact our financial results. On December 14, 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures. ” The amendments in this ASU require a public entity to disclose in tabular format, using both percentages and reporting currency amounts, specific categories in the rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. The amendments in this ASU also require taxes paid (net of refunds received) to be disaggregated by federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public business entities, the provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the effect of this pronouncement on its annual consolidated financial statements.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2024
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 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in thousands): Reported as: March 31, 2024 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 816,224 $ — $ — $ 816,224 $ 816,224 $ — $ — Money market funds 49,581 — — 49,581 49,581 — — Corporate bonds 26,535 3 (417) 26,121 — 24,551 1,570 U.S. government treasury bonds 4,871 — (101) 4,770 — 2,721 2,049 Asset-backed securities 586 — (1) 585 — 585 — U.S. government agency bonds 5,264 — (20) 5,244 — 5,244 — Total $ 903,061 $ 3 $ (539) $ 902,525 $ 865,805 $ 33,101 $ 3,619 Reported as: December 31, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 887,682 $ — $ — $ 887,682 $ 887,682 $ — $ — Money market funds 49,756 — — 49,756 49,756 — — Corporate bonds 31,943 5 (676) 31,272 — 28,704 2,568 U.S. government treasury bonds 4,855 — (99) 4,756 — — 4,756 Asset-backed securities 1,416 2 (1) 1,417 — 719 698 Municipal bonds 702 — (2) 700 — 700 — U.S. government agency bonds 5,215 — (34) 5,181 — 5,181 — Total $ 981,569 $ 7 $ (812) $ 980,764 $ 937,438 $ 35,304 $ 8,022 The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Due in 1 year or less $ 32,515 $ 34,617 Due in 1 year through 5 years 4,205 8,709 Total $ 36,720 $ 43,326 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 March 31, 2024 and December 31, 2023 are primarily due to changes in interest rates and credit spreads. The following tables summarize the fair value and gross unrealized losses as of March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): As of March 31, 2024 Less than 12 months 12 Months of Greater Total March 31, 2024 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 1,006 $ (3) $ 22,805 $ (414) $ 23,811 $ (417) U.S. government treasury bonds 2,049 (26) 2,721 (75) 4,770 (101) Asset-backed securities 535 (1) — — 535 (1) Municipal bonds — — — — — — U.S. government agency bonds 4,051 (9) 1,193 (11) 5,244 (20) Total $ 7,641 $ (39) $ 26,719 $ (500) $ 34,360 $ (539) As of December 31, 2023 Less than 12 months 12 Months of Greater Total December 31, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ — $ — $ 27,939 $ (676) $ 27,939 $ (676) U.S. government treasury bonds 2,044 (11) 2,712 (88) 4,756 (99) Asset-backed securities 1,018 (1) 83 — 1,101 (1) Municipal bonds — — 700 (2) 700 (2) U.S. government agency bonds 4,003 (11) 1,178 (23) 5,181 (34) Total $ 7,065 $ (23) $ 32,612 $ (789) $ 39,677 $ (812) Accounts Receivable Factoring We enter 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 $14.6 million during the three months ended March 31, 2024 and $8.0 million during the three months ended March 31, 2023. 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 March 31, 2024 and December 31, 2023 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 49,581 $ 49,581 $ — Short-term investments: U.S. government agency bonds 5,244 — 5,244 U.S. government treasury bonds 2,721 — 2,721 Corporate bonds 24,551 — 24,551 Asset-backed securities 585 — 585 Long-term investments: U.S. government treasury bonds 2,049 — 2,049 Corporate bonds 1,570 — 1,570 $ 86,301 $ 49,581 $ 36,720 Description Balance as of December 31, 2023 Level 1 Level 2 Cash equivalents: Money market funds $ 49,756 $ 49,756 $ — Short-term investments: Corporate bonds 28,704 — 28,704 Municipal bonds 700 — 700 U.S. government agency bonds 5,181 — 5,181 Asset-backed securities 719 — 719 Long-term investments: U.S. government treasury bonds 4,756 — 4,756 Corporate bonds 2,568 — 2,568 Asset-backed securities 698 — 698 $ 93,082 $ 49,756 $ 43,326 Investments in Privately Held Companies Our investments in privately held companies in which we cannot exercise significant influence and do not own a majority equity interest or otherwise control are accounted for as an investment in equity securities. We have elected to account for all investments in equity securities in accordance with the measurement alternative. Under the measurement alternative, we record the value of our investments in equity securities at cost, minus impairment, if any. Additionally, we adjust the carrying value of our investments in equity securities to fair value for observable transactions for identical or similar investments of the same issuer. On April 24, 2023, we entered into a Subscription Agreement (the "April 2023 Subscription Agreement") with Heartland Dental Holding Corporation (“Heartland”). Pursuant to the Subscription Agreement we acquired less than a 5% equity interest through the purchase of Class A Common Stock for $75 million. We are not the primary beneficiary of nor are we able to exercise significant influence over Heartland. As such, we are accounting for our investment in Heartland as an investment in equity securities. Similar to our other investments in equity securities, Heartland is accounted for under the measurement alternative. Based on review of our investment in Heartland, we determined that no adjustments to the carrying value were necessary; therefore, it is properly reflected on our Condensed Consolidated Balance Sheet in Other assets at $75 million. Investments in equity securities are reported on our Condensed Consolidated Balance Sheet as Other assets. We record upward and downward adjustments in carrying value or impairment, if any, in our investments in equity securities, in other income (expense), net in our Condensed Consolidated Statement of Operations. The carrying value of our investments in equity securities, exclusive of Heartland, were not material as of March 31, 2024 and the associated adjustments to the carrying values, if any, of the investments were not material during the three month periods ended March 31, 2024 and 2023. Our investments in privately held companies in which we can exercise significant influence are accounted for as equity method investments. We have elected to account for our equity method investments under the fair value option. The carrying value of our equity method investments are reported on our Condensed Consolidated Balance Sheet as other assets and are not material as of March 31, 2024 and December 31, 2023. 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 assets and liabilities. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, we recognized a net gain of $19.7 million during the three months ended March 31, 2024 and a net loss of $6.4 million during the three months ended March 31, 2023. Recognized gains and losses from the settlement of foreign currency forward contracts are recorded to Other income (expense), net in our Condensed Consolidated Statements of Operations. As of March 31, 2024 and December 31, 2023, the fair value of foreign exchange forward contracts outstanding were not material. The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Local Currency Amount Notional Contract Amount (USD) Euro €262,300 $ 283,818 British Pound £121,800 153,937 Canadian Dollar C$96,500 71,174 Polish Zloty PLN276,400 $ 69,117 Chinese Yuan ¥322,800 44,536 Japanese Yen ¥4,300,000 28,547 Brazilian Real R$88,600 17,650 Mexican Peso M$270,000 16,265 Israeli Shekel ILS48,200 13,137 Swiss Franc CHF7,000 7,776 New Zealand Dollar NZ$9,900 5,912 New Taiwan Dollar NT$98,000 3,064 Australian Dollar A$4,700 3,061 Czech Koruna Kč44,600 1,905 Korean Won ₩2,300,000 1,708 $ 721,607 December 31, 2023 Local Currency Amount Notional Contract Amount (USD) Euro €337,780 $ 373,705 Canadian Dollar C$108,900 82,166 Polish Zloty PLN276,900 70,393 British Pound £45,590 58,005 Chinese Yuan ¥244,500.00 34,361 Swiss Franc CHF28,600 34,132 Japanese Yen ¥3,577,000 25,347 Israeli Shekel ILS78,700 21,800 Brazilian Real R$80,500 16,563 Mexican Peso M$230,000 13,593 New Zealand Dollar NZ$6,600 4,161 Australian Dollar A$4,300 2,921 New Taiwan Dollar NT$89,000 2,919 Czech Koruna Kč60,200 2,687 Korean Won ₩2,200,000 1,709 $ 744,462

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2024
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): March 31, December 31, Raw materials $ 134,305 $ 145,492 Work in process 92,518 91,259 Finished goods 53,253 60,151 Total inventories $ 280,076 $ 296,902 Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, Value added tax receivables $ 206,915 $ 143,728 Prepaid expenses 72,187 52,487 Other current assets 70,492 77,335 Total prepaid expenses and other current assets $ 349,594 $ 273,550 Accrued liabilities consist of the following (in thousands): March 31, December 31, Accrued payroll and benefits $ 191,904 $ 220,862 Accrued expenses 76,540 71,109 Accrued sales and marketing expenses 42,933 34,035 Accrued income taxes 38,942 38,103 Current operating lease liabilities 31,324 29,651 Accrued property, plant and equipment 16,093 23,618 Other accrued liabilities 98,865 108,402 Total accrued liabilities $ 496,601 $ 525,780 Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Three Months Ended 2024 2023 Balance at beginning of period $ 22,426 $ 17,873 Charged to cost of net revenues 5,449 4,532 Actual warranty expenditures (3,312) (3,476) Balance at end of period $ 24,563 $ 18,929 Deferred revenues consist of the following (in thousands): March 31, December 31, Deferred revenues - current $ 1,409,202 $ 1,427,706 Deferred revenues - long-term 1 $ 115,400 $ 138,000 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet. During the three months ended March 31, 2024 and 2023, we recognized $997.4 million and $943.1 million of net revenues, respectively, of which $236.8 million and $205.7 million was included in the deferred revenues balance at December 31, 2023 and 2022, respectively. Our unfulfilled performance obligations, including deferred revenues and backlog, as of March 31, 2024 were $1,533.1 million. These performance obligations are expected to be fulfilled over the next six months to five years.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business Combination On January 2, 2024 (the “Acquisition Date”), we completed the acquisition of privately-held Cubicure GmbH (“Cubicure”) (the "Acquisition") . Cubicure is an Austrian company and specializes in direct 3D printing solutions for polymer additive manufacturing that develops, produces, and distributes innovative materials, equipment, and processes for 3D printing solutions. The acquisition of Cubicure is intended to support and scale our strategic innovation roadmap and strengthen the Align Digital Platform. In fiscal year 2021, we acquired an 9.04% equity interest in Cubicure. Subsequently, on the Acquisition Date, we acquired the remaining equity of Cubicure. Prior to the acquisition, we also had technology license and joint development agreements with Cubicure. The fair value of consideration transferred in the acquisition is shown in the table below (in thousands): Cash paid to Cubicure stockholders $ 80,142 Fair value of pre-existing equity interest ownership 7,968 Settlement of pre-existing relationship - accounts payable $ (2,316) Total purchase consideration paid $ 85,794 The Acquisition was accounted for as a business combination under ASC Topic 805, Business Combinations ( “ASC 805”) that was achieved in stages. As a result of the acquisition, we remeasured our pre-existing equity interest in Cubicure at fair value prior to the acquisition. Based on the fair value of this equity interest, derived from the purchase price, we estimated the fair value of our 9.04% pre-existing investment in Cubicure to be approximately $8.0 million. The remeasurement resulted in the recognition of a pre-tax gain of $4.1 million, which was reflected as a component of Other income (expense), net within our Condensed Consolidated Statement of Operations. In 2021, we initiated Joint development (“JDA”) and Technology license agreements (“TLA”) to provide us with access to Cubicure's technology. The settlement of the JDA and TLA were concluded to be at market terms on the Acquisition Date; therefore, no gain or loss was recorded related to the settlement of these contracts. We also had accounts payable from the pre-existing arrangements with Cubicure of $2.3 million, which were effectively settled and reduced from the purchase consideration of the Acquisition. The preliminary allocation of purchase price to assets acquired and liabilities assumed which is subject to change within the measurement period is as follows (in thousands): Working capital $ 1,039 Property & equipment 975 Developed technology 47,000 Other non-current asset 1,386 Other liabilities (12,279) Goodwill $ 47,673 Total $ 85,794 Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets, and represents the value associated future technology, future customer relationships, and the knowledge and experience of the workforce in place. None of this goodwill is deductible for tax purposes. We allocated all goodwill to our Clear Aligner reporting unit. The following table presents details of the identified intangible assets acquired (in thousands, except years): Weighted Average Amortization Developed technology 13 $47,000 The fair value of developed technology was estimated under the Multi-Period Excess Earnings Method and the fair value estimates for developed technology include significant assumptions in the prospective financial information which include, but are not limited, to the projected future cash flows associated with the technology, asset's life cycle and the present value factor. Acquisition related costs are recognized separately from the business combination and are expensed as incurred. Acquisition related costs were not material.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The change in the carrying value of goodwill for the three months ended March 31, 2024, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2023 $ 111,086 $ 308,444 $ 419,530 Additions from acquisition 47,673 — 47,673 Foreign currency translation adjustments (2,180) (6,788) (8,968) Balance as of March 31, 2024 $ 156,579 $ 301,656 $ 458,235 Finite-Lived Intangible Assets Acquired finite-lived intangible assets were as follows, excluding intangibles that were fully amortized, is as follows (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of March 31, 2024 Accumulated Accumulated Net Carrying Value as of March 31, 2024 Existing technology 11 $ 159,051 $ (49,183) $ (4,328) $ 105,540 Customer relationships 10 21,500 (8,600) — 12,900 Trademarks and tradenames 10 16,600 (7,990) (4,122) 4,488 Patents 12 480 (250) — 230 $ 197,631 $ (66,023) $ (8,450) 123,158 Foreign currency translation adjustments (1,734) Total intangible assets, net 1 $ 121,424 1 Includes $34.3 million of fully amortized intangible assets related to customer relationships and trademarks. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2023 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2023 Existing technology 10 $ 112,051 $ (45,331) $ (4,328) $ 62,392 Customer relationships 10 21,500 (8,063) — 13,437 Trademarks and tradenames 10 16,600 (7,605) (4,122) 4,873 Patents 8 6,511 (6,082) — 429 $ 156,662 $ (67,081) $ (8,450) 81,131 Foreign currency translation adjustments 987 Total intangible assets, net 1 $ 82,118 1 Includes $34.3 million of fully amortized intangible assets related to customer relationships and trademarks. Of the $159.1 million recorded as existing technology intangible assets as of March 31, 2024, $47.0 million was acquired during the first quarter of 2024 as part of our acquisition of Cubicure. The existing technology acquired in the Cubicure acquisition had an estimated useful life of 13 years, which had the effect of increasing the weighted average amortization period from approximately 10 years as of December 31, 2023 to approximately 11 years as of March 31, 2024. Refer to Note 4. Business Combination . The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2024, is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2024 $ 13,977 2025 18,574 2026 17,969 2027 15,607 2028 14,505 Thereafter 42,526 Total $ 123,158 Amortization expense for the three months ended March 31, 2024 and 2023 was $5.0 million and $4.1 million, respectively.

Credit Facility

Credit Facility	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Credit Facility	Credit Facility We have a credit facility that provides for a $300.0 million unsecured revolving line of credit, along with a $50.0 million letter of credit. On December 23, 2022, we amended certain provisions in our credit facility which included extending the maturity date on the facility to December 23, 2027 and replacing the interest rate from the existing LIBOR with SOFR (“2022 Credit Facility”). The 2022 Credit Facility requires us to comply with specific financial conditions and performance requirements. Loans under the 2022 Credit Facility bear interest, at our option, at either a rate based on the SOFR for the applicable interest period or a base rate, in each case plus a margin. As of March 31, 2024, we had no outstanding borrowings under the 2022 Credit Facility and were in compliance with the conditions and performance requirements in all material respects.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Mar. 31, 2024
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 our behalf, 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 our behalf, 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 our behalf, 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. In the first quarter of 2024, the parties to these actions entered into a settlement agreement whereby, subject to court approval, plaintiffs will dismiss the lawsuits and release their claims. In the settlement agreement, Align and the defendants deny any wrongdoing and are not making any monetary payments, other than a potential award of $575,000 in attorney ’ s fees to plaintiffs ’ counsel, covered by insurance. On March 1, 2024, the plaintiffs filed a motion for preliminary approval of the settlement with the U.S. District Court for the Northern District of California. The hearing on the motion for preliminary approval is currently set for May 21, 2024. 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 treble monetary damages, interest, costs, attorneys’ fees, and injunctive relief relating to our alleged market activities in alleged clear aligner and intraoral scanner markets. Plaintiff filed an amended complaint and added VIP Dental Spas as a plaintiff on August 14, 2020. On December 18, 2023, the court certified a class of persons or entities that purchased Invisalign directly from Align between January 1, 2019 and March 31, 2022. The court denied Plaintiffs’ motion to certify a class of purchasers of scanners. On February 21, 2024, the court granted Align’s motion for summary judgment on all claims brought by the plaintiffs. The court entered judgment on March 22, 2024. Plaintiffs have noticed appeal of the district court’s summary judgment ruling. 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 treble monetary damages, interest, costs, attorneys’ fees, and injunctive relief relating to our alleged market activities in alleged clear aligner and intraoral scanner markets based on Section 2 of the Sherman Act. Plaintiffs have filed several amended complaints adding new plaintiffs, various state law claims, and allegations based on Section 1 of the Sherman Act. On November 29, 2023, the court certified a class of indirect purchasers of Invisalign between July 1, 2018 and December 31, 2023 and a class of indirect purchasers of Invisalign seeking injunctive relief. On February 21, 2024, the court granted Align’s motion for summary judgment on the claims related to Section 2 allegations. The court entered judgment for the Section 2 and related state law claims on March 22, 2024. Plaintiffs have noticed appeal of the district court’s summary judgment ruling. A jury trial is scheduled to begin in this matter on January 21, 2025 for issues related to Section 1 allegations. We believe the plaintiffs’ claims are without merit and we intend to vigorously defend ourselves. We are currently unable to predict the outcome of these lawsuits and therefore we cannot determine the likelihood of loss, if any, nor estimate a range of possible loss. SDC Dispute On August 27, 2020, we 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 us in an amount to be determined. On January 19, 2021, SDC filed a counterclaim alleging that we breached the Supply Agreement. On May 3, 2022, SDC filed an additional counterclaim alleging that we breached the Supply Agreement. We denied SDC's allegations in the counterclaims. On October 27, 2022, the arbitrator issued an interim award on our claims and SDC’s first counterclaim finding that SDC breached the Supply Agreement, we did not breach the Supply Agreement, and SDC caused harm to us. Based on these findings, the arbitrator awarded us an interim award of $63 million in damages. On May 18, 2023, the arbitrator issued a final award on SDC ’ s second counterclaim, finding that Align did not breach the Supply Agreement. The final award subsumed the interim award on our claims and SDC ’ s first counterclaim and concluded the Supply Agreement arbitration proceedings. On March 6, 2023, Align filed a petition to confirm the arbitrator ’ s interim award in the Superior Court for Santa Clara County. On May 30, 2023, Align filed a petition to confirm the final award in the Superior Court of Santa Clara County. On August 21, 2023, the Superior Court issued an order confirming the Interim and Final Awards. On September 8, 2023, the Superior Court entered judgment in Align ’s favor for $63 million in damages . On September 29, 2023, SDC and certain affiliates filed bankruptcy petitions under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. On January 26, 2024, SDC’s bankruptcy cases were converted from cases under chapter 11 of the Bankruptcy Code to cases under chapter 7 of the Bankruptcy Code. In conjunction therewith, Allison D. Byman was appointed as the chapter 7 trustee in SDC’s bankruptcy cases. The extent to which Align will be able to collect any or all of its $63 million judgment through SDC ’s bankruptcy proceedings is unknown. Straumann Litigation On April 11, 2024, we filed a lawsuit in the U.S. District Court for the Western District of Texas against ClearCorrect Operating, LLC, ClearCorrect Holdings, Inc., and Institut Straumann AG. The complaint asserts claims of false advertising, unfair competition, civil conspiracy, and infringement of Align patents related to aligner material, treatment planning, and intraoral scanner technologies. Among other things, the complaint seeks relief enjoining the defendants’ infringement of multiple Align multilayer material patents through defendants’ manufacture, sale and offer for sale of aligners made with Zendura FLX/ClearQuartz materials. Defendants have not yet filed a response to the complaint. In addition to the above, in the ordinary course of our operations, we are 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 our view of these matters may change in the future as litigation and events related thereto unfold; we currently do not believe that these matters, individually or in the aggregate, will materially affect our financial position, results of operations or cash flows.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Tax Matter B eginning in the third quarter of 2023 and continuing through the first quarter of 2024, the Company has received cumulative assessments of approximately $95 million from His Majesty’s Revenue and Customs (“HMRC”) for unpaid value added tax (“VAT”) related to certain clear aligner sales made during the period of October 2019 through May 2023. We are required to pay these assessments prior to contesting or litigating in statutory appeal. The Company has historically asserted and continues to assert that doctor prescribed clear aligners sold by dentists for the orthodontic treatment of patient malocclusions are exempt from VAT, that the Company has reasonably relied upon statements and guidance by HMRC and that the Company’s interpretation of United Kingdom legislation is appropriate. However, it is not possible at this stage to accurately evaluate the likelihood of an unfavorable outcome of any legal challenges brought by the Company against HMRC disputing this initial assessment and any assessments for other past periods. Accordingly, the Company has determined that a potential loss related to unpaid VAT is not probable. As such, we have not recorded a contingent loss for these assessments in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024. The Company acknowledges that this matter poses risks of litigation and the ultimate resolution of this matter could result in an unfavorable ruling, which consequently could lead to a significant loss to the Company. As of March 31, 2024, if an unfavorable ruling is issued, we estimate a potential exposure of approximately $115 million, depending on fluctuations of foreign currency exchange rates, excluding interest and penalties. 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 of future payments, if any, under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of March 31, 2024, we did not have any material indemnification claims that were probable or reasonably possible.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity As of March 31, 2024, the 2005 Incentive Plan, as amended, has a total reserve of 32,168,895 shares of which 3,393,482 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 months ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended 2024 2023 Cost of net revenues $ 2,064 $ 1,807 Selling, general and administrative 28,494 28,691 Research and development 8,230 7,237 Total stock-based compensation $ 38,788 $ 37,735 Restricted Stock Units (“RSUs”) The fair value of RSUs is based on our closing stock price on the date of grant. RSUs granted generally vest over a period of four years. A summary for the three months ended March 31, 2024 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, 2023 736 $ 367.63 Granted 610 311.35 Vested and released (231) 377.91 Forfeited (20) 377.56 Unvested as of March 31, 2024 1,095 $ 333.90 2.0 $ 359,130 As of March 31, 2024, we expect to recognize $311.9 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 3.2 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 our 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 activity for the three months ended March 31, 2024: 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, 2023 158 $ 811.06 Granted 83 617.79 Vested and released 1 (32) 1,102.09 Forfeited (5) 1,102.09 Unvested as of March 31, 2024 204 $ 679.52 2.1 $ 66,889 1 Includes MSUs vested during the period below 100% of the original grant as actual shares released is based on Align ’ s stock performance over the vesting period. As of March 31, 2024, we expect to recognize $82.2 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 2.1 years. Restricted Stock Units with Performance Conditions (“PSUs”) During the three months ended March 31, 2024, we did not grant any PSUs to any employees. In the fourth quarter of 2022, we granted PSUs to certain employees which are eligible to vest based on the achievement of project-based milestones over a term of 2.2 years. Total PSUs granted were 4,728 and the weighted average grant date fair value for the PSUs was $201.63. Compensation costs related to PSUs is not material to our operating results. Employee Stock Purchase Plan As of March 31, 2024, we have 1,931,910 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 2024 2023 Expected term (in years) 0.9 1.8 Expected volatility 56.0 % 58.6 % Risk-free interest rate 4.8 % 4.8 % Expected dividends — — Weighted average fair value at grant date $ 100.10 $ 138.13 As of March 31, 2024, we expect to recognize $14.1 million of total unamortized compensation costs related to future employee stock purchases over a weighted average period of 0.8 years.

Common Stock Repurchase Program

Common Stock Repurchase Programs	3 Months Ended
	Mar. 31, 2024
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Programs	Common Stock Repurchase Programs 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”), which was completed in March 2023. In January 2023, our Board of Directors authorized a new plan to repurchase up to $1.0 billion of our common stock (“January 2023 Repurchase Program”). The January 2023 Repurchase Program does not have an expiration date. Accelerated Share Repurchase Agreements (“ASRs”) During the three months ended March 31, 2023, we entered into or completed 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. We did not enter into any new ASRs during the three months ended March 31, 2024; however, we did settle and obtain final delivery of shares for the ASR contract entered in the fourth quarter of 2023. The following table summarizes the information regarding repurchases of our common stock under the ASRs for the three months ended March 31, 2024 and 2023: Agreement Repurchase Amount Paid Completion Total Shares Average Price per Share Q4 2022 May 2021 $ 200.0 Q1 2023 984,714 $ 203.10 Q1 2023 May 2021 $ 250.0 Q1 2023 805,908 $ 310.21 Q4 2023 January 2023 $ 250.0 Q1 2024 1,086,334 $ 230.13 Open Market Common Stock Repurchases During the three months ended March 31, 2024 and 2023 we did not repurchase any shares in the open market. During the three months ended December 31, 2023, we repurchased $100.0 million of our common stock through open market repurchases under the January 2023 Repurchase Program. As of March 31, 2024, $650.0 million remains available for repurchases under the January 2023 Repurchase Program.

Accounting for Income Taxes

Accounting for Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $53.4 million and $46.8 million for the three months ended March 31, 2024 and 2023, respectively, representing effective tax rates of 33.7% and 34.8%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended March 31, 2024 and 2023 primarily due to the recognition of additional tax expense resulting from U.S. taxes on foreign earnings, foreign income taxed at different rates, state income taxes, and non-deductible expenses in the U.S. 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. Our total gross unrecognized tax benefits, excluding interest and penalties, were $150.8 million and $149.2 million as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 .

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Numerator: Net income $ 105,028 $ 87,798 Denominator: Weighted average common shares outstanding, basic 75,175 76,921 Dilutive effect of potential common stock 147 190 Total shares, diluted 75,322 77,111 Net income per share, basic $ 1.40 $ 1.14 Net income per share, diluted $ 1.39 $ 1.14 Anti-dilutive potential common shares 1 571 578 1 Represents approximately 569 thousand RSU and 2 thousand ESPP weighted-average outstanding common stock equivalent shares that are excluded from the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The supplemental cash flow information consists of the following (in thousands): Three Months Ended 2024 2023 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 21,284 $ 30,907 Final settlement of prior year stock repurchase forward contract 50,000 — Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,998 $ 7,871 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 10,568 $ 5,559

Segments and Geographical Infor

Segments and Geographical Information	3 Months Ended
	Mar. 31, 2024
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 reportable segment. Certain operating expenses are not directly attributable to a reportable segment and must be allocated. Each allocation is measured differently based on the nature of the cost being allocated. Certain other operating expense are not specifically allocated to segment income from operations and generally include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, other separately managed general and administrative costs outside the reportable segments and restructuring costs. 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 2024 2023 Net revenues Clear Aligner $ 817,251 $ 789,804 Systems and Services 180,180 153,343 Total net revenues $ 997,431 $ 943,147 Gross profit Clear Aligner $ 579,146 $ 566,139 Systems and Services 118,670 94,515 Total gross profit $ 697,816 $ 660,654 Income from operations Clear Aligner $ 286,238 $ 277,521 Systems and Services 49,693 35,576 Unallocated corporate expenses (181,796) (179,581) Total income from operations $ 154,135 $ 133,516 Stock-based compensation Clear Aligner $ 3,764 $ 4,654 Systems and Services 359 321 Unallocated corporate expenses 34,665 32,760 Total stock-based compensation $ 38,788 $ 37,735 Depreciation and amortization Clear Aligner $ 14,433 $ 16,398 Systems and Services 6,838 8,146 Unallocated corporate expenses 11,675 11,276 Total depreciation and amortization $ 32,946 $ 35,820 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 2024 2023 Total segment income from operations $ 335,931 $ 313,097 Unallocated corporate expenses (181,796) (179,581) Total income from operations 154,135 133,516 Interest income 4,392 2,337 Other income (expense), net (141) (1,229) Net income before provision for income taxes $ 158,386 $ 134,624 Our Chief Operating Decision Maker does not regularly review total assets at the reportable segment level; however, we have provided geographical information related to our long-lived assets below. Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended 2024 2023 Net revenues 1 : U.S. $ 432,101 $ 411,138 Switzerland 251,758 313,131 Other International 313,572 218,878 Total net revenues $ 997,431 $ 943,147 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): March 31, December 31, 2023 Long-lived assets 1 : Switzerland $ 573,000 $ 575,432 U.S. 210,283 210,275 Other International 617,422 623,155 Total long-lived assets $ 1,400,705 $ 1,408,862 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets.

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	Restructuring and Other Charges During the fourth quarter of 2023, we initiated a restructuring plan to increase efficiencies across the organization and incurred approximately $14.0 million in restructuring expenses, of which $5.3 million remained unpaid and were included in Accrued liabilities as of December 31, 2023. During the first quarter of 2024 , we reduced our December 31, 2023 restructuring liability by approximately

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventSubsequent to our quarter end, on April 22, 2024, we entered into a new Subscription Agreement (the "April 2024 Subscription Agreement") with Heartland. The April 2024 Subscription Agreement provided for us, among other items, to acquire an additional equity interest in Heartland through the purchase of Class A Common Stock for $75 million. In total, we have invested $150.0 million and acquired less than a 5% equity interest in Heartland.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 105,028	$ 87,798

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Notes To Financial Statements [Abstract]
Basis of Presentation and Preparation	Basis of Presentation and Preparation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, the "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2023, and contain all adjustments, including normal recurring adjustments, necessary to fairly state the information set forth herein. These 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 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 We are subject to risks including, but not limited to, global and regional economic market conditions, inflation, fluctuations in foreign currency exchange rates, changes in consumer confidence and demand, increased competition, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration (“FDA”) and similar international agencies. Our cash and investments are held primarily by five financial institutions. Financial instruments which potentially expose us to concentrations of credit risk consist primarily of cash equivalents and marketable securities. We invest excess cash primarily in money market funds, corporate bonds, asset-backed securities, municipal and U.S. government agency bonds and treasury bonds and periodically evaluate them for credit losses. Such credit losses have not been material to our financial statements. We purchase certain inventory from sole suppliers. Additionally, we rely on a limited number of hardware manufacturers. The inability of any supplier or manufacturer to fulfill our supply requirements could materially and adversely impact our future operating results.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Effective On November 27, 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures. ” The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. For public business entities, the provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Companies must apply the guidance retrospectively to all prior periods presented in the financial statements. The Company expects this pronouncement to result in changes to the nature of our reportable segment disclosures; however, we do not expect this new guidance to impact our financial results. On December 14, 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures. ” The amendments in this ASU require a public entity to disclose in tabular format, using both percentages and reporting currency amounts, specific categories in the rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. The amendments in this ASU also require taxes paid (net of refunds received) to be disaggregated by federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public business entities, the provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the effect of this pronouncement on its annual consolidated financial statements.

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Investments, All Other Investments [Abstract]
Cash and Cash Equivalents	The following tables summarize our cash and cash equivalents, and marketable securities on our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in thousands): Reported as: March 31, 2024 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 816,224 $ — $ — $ 816,224 $ 816,224 $ — $ — Money market funds 49,581 — — 49,581 49,581 — — Corporate bonds 26,535 3 (417) 26,121 — 24,551 1,570 U.S. government treasury bonds 4,871 — (101) 4,770 — 2,721 2,049 Asset-backed securities 586 — (1) 585 — 585 — U.S. government agency bonds 5,264 — (20) 5,244 — 5,244 — Total $ 903,061 $ 3 $ (539) $ 902,525 $ 865,805 $ 33,101 $ 3,619 Reported as: December 31, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 887,682 $ — $ — $ 887,682 $ 887,682 $ — $ — Money market funds 49,756 — — 49,756 49,756 — — Corporate bonds 31,943 5 (676) 31,272 — 28,704 2,568 U.S. government treasury bonds 4,855 — (99) 4,756 — — 4,756 Asset-backed securities 1,416 2 (1) 1,417 — 719 698 Municipal bonds 702 — (2) 700 — 700 — U.S. government agency bonds 5,215 — (34) 5,181 — 5,181 — Total $ 981,569 $ 7 $ (812) $ 980,764 $ 937,438 $ 35,304 $ 8,022
Marketable Securities	The following tables summarize our cash and cash equivalents, and marketable securities on our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in thousands): Reported as: March 31, 2024 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 816,224 $ — $ — $ 816,224 $ 816,224 $ — $ — Money market funds 49,581 — — 49,581 49,581 — — Corporate bonds 26,535 3 (417) 26,121 — 24,551 1,570 U.S. government treasury bonds 4,871 — (101) 4,770 — 2,721 2,049 Asset-backed securities 586 — (1) 585 — 585 — U.S. government agency bonds 5,264 — (20) 5,244 — 5,244 — Total $ 903,061 $ 3 $ (539) $ 902,525 $ 865,805 $ 33,101 $ 3,619 Reported as: December 31, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 887,682 $ — $ — $ 887,682 $ 887,682 $ — $ — Money market funds 49,756 — — 49,756 49,756 — — Corporate bonds 31,943 5 (676) 31,272 — 28,704 2,568 U.S. government treasury bonds 4,855 — (99) 4,756 — — 4,756 Asset-backed securities 1,416 2 (1) 1,417 — 719 698 Municipal bonds 702 — (2) 700 — 700 — U.S. government agency bonds 5,215 — (34) 5,181 — 5,181 — Total $ 981,569 $ 7 $ (812) $ 980,764 $ 937,438 $ 35,304 $ 8,022
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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Due in 1 year or less $ 32,515 $ 34,617 Due in 1 year through 5 years 4,205 8,709 Total $ 36,720 $ 43,326
Unrealized Losses for Investments in a Continuous Unrealized Loss Position	The following tables summarize the fair value and gross unrealized losses as of March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): As of March 31, 2024 Less than 12 months 12 Months of Greater Total March 31, 2024 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 1,006 $ (3) $ 22,805 $ (414) $ 23,811 $ (417) U.S. government treasury bonds 2,049 (26) 2,721 (75) 4,770 (101) Asset-backed securities 535 (1) — — 535 (1) Municipal bonds — — — — — — U.S. government agency bonds 4,051 (9) 1,193 (11) 5,244 (20) Total $ 7,641 $ (39) $ 26,719 $ (500) $ 34,360 $ (539) As of December 31, 2023 Less than 12 months 12 Months of Greater Total December 31, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ — $ — $ 27,939 $ (676) $ 27,939 $ (676) U.S. government treasury bonds 2,044 (11) 2,712 (88) 4,756 (99) Asset-backed securities 1,018 (1) 83 — 1,101 (1) Municipal bonds — — 700 (2) 700 (2) U.S. government agency bonds 4,003 (11) 1,178 (23) 5,181 (34) Total $ 7,065 $ (23) $ 32,612 $ (789) $ 39,677 $ (812)
Financial Assets Measured At Fair Value On A Recurring Basis	The following tables summarize our financial assets measured at fair value as of March 31, 2024 and December 31, 2023 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 49,581 $ 49,581 $ — Short-term investments: U.S. government agency bonds 5,244 — 5,244 U.S. government treasury bonds 2,721 — 2,721 Corporate bonds 24,551 — 24,551 Asset-backed securities 585 — 585 Long-term investments: U.S. government treasury bonds 2,049 — 2,049 Corporate bonds 1,570 — 1,570 $ 86,301 $ 49,581 $ 36,720 Description Balance as of December 31, 2023 Level 1 Level 2 Cash equivalents: Money market funds $ 49,756 $ 49,756 $ — Short-term investments: Corporate bonds 28,704 — 28,704 Municipal bonds 700 — 700 U.S. government agency bonds 5,181 — 5,181 Asset-backed securities 719 — 719 Long-term investments: U.S. government treasury bonds 4,756 — 4,756 Corporate bonds 2,568 — 2,568 Asset-backed securities 698 — 698 $ 93,082 $ 49,756 $ 43,326
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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Local Currency Amount Notional Contract Amount (USD) Euro €262,300 $ 283,818 British Pound £121,800 153,937 Canadian Dollar C$96,500 71,174 Polish Zloty PLN276,400 $ 69,117 Chinese Yuan ¥322,800 44,536 Japanese Yen ¥4,300,000 28,547 Brazilian Real R$88,600 17,650 Mexican Peso M$270,000 16,265 Israeli Shekel ILS48,200 13,137 Swiss Franc CHF7,000 7,776 New Zealand Dollar NZ$9,900 5,912 New Taiwan Dollar NT$98,000 3,064 Australian Dollar A$4,700 3,061 Czech Koruna Kč44,600 1,905 Korean Won ₩2,300,000 1,708 $ 721,607 December 31, 2023 Local Currency Amount Notional Contract Amount (USD) Euro €337,780 $ 373,705 Canadian Dollar C$108,900 82,166 Polish Zloty PLN276,900 70,393 British Pound £45,590 58,005 Chinese Yuan ¥244,500.00 34,361 Swiss Franc CHF28,600 34,132 Japanese Yen ¥3,577,000 25,347 Israeli Shekel ILS78,700 21,800 Brazilian Real R$80,500 16,563 Mexican Peso M$230,000 13,593 New Zealand Dollar NZ$6,600 4,161 Australian Dollar A$4,300 2,921 New Taiwan Dollar NT$89,000 2,919 Czech Koruna Kč60,200 2,687 Korean Won ₩2,200,000 1,709 $ 744,462

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2024
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, December 31, Raw materials $ 134,305 $ 145,492 Work in process 92,518 91,259 Finished goods 53,253 60,151 Total inventories $ 280,076 $ 296,902
Schedule of Prepaid Expense and Other Assets	Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, Value added tax receivables $ 206,915 $ 143,728 Prepaid expenses 72,187 52,487 Other current assets 70,492 77,335 Total prepaid expenses and other current assets $ 349,594 $ 273,550
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, December 31, Accrued payroll and benefits $ 191,904 $ 220,862 Accrued expenses 76,540 71,109 Accrued sales and marketing expenses 42,933 34,035 Accrued income taxes 38,942 38,103 Current operating lease liabilities 31,324 29,651 Accrued property, plant and equipment 16,093 23,618 Other accrued liabilities 98,865 108,402 Total accrued liabilities $ 496,601 $ 525,780
Schedule of Warranty Accrual	Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Three Months Ended 2024 2023 Balance at beginning of period $ 22,426 $ 17,873 Charged to cost of net revenues 5,449 4,532 Actual warranty expenditures (3,312) (3,476) Balance at end of period $ 24,563 $ 18,929
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): March 31, December 31, Deferred revenues - current $ 1,409,202 $ 1,427,706 Deferred revenues - long-term 1 $ 115,400 $ 138,000 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Fair Value of Consideration Transferred	The fair value of consideration transferred in the acquisition is shown in the table below (in thousands): Cash paid to Cubicure stockholders $ 80,142 Fair value of pre-existing equity interest ownership 7,968 Settlement of pre-existing relationship - accounts payable $ (2,316) Total purchase consideration paid $ 85,794
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed	The preliminary allocation of purchase price to assets acquired and liabilities assumed which is subject to change within the measurement period is as follows (in thousands): Working capital $ 1,039 Property & equipment 975 Developed technology 47,000 Other non-current asset 1,386 Other liabilities (12,279) Goodwill $ 47,673 Total $ 85,794
Identified Intangible Assets Acquired	The following table presents details of the identified intangible assets acquired (in thousands, except years): Weighted Average Amortization Developed technology 13 $47,000

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the three months ended March 31, 2024, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2023 $ 111,086 $ 308,444 $ 419,530 Additions from acquisition 47,673 — 47,673 Foreign currency translation adjustments (2,180) (6,788) (8,968) Balance as of March 31, 2024 $ 156,579 $ 301,656 $ 458,235
Schedule of Amortized Intangible Assets	Acquired finite-lived intangible assets were as follows, excluding intangibles that were fully amortized, is as follows (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of March 31, 2024 Accumulated Accumulated Net Carrying Value as of March 31, 2024 Existing technology 11 $ 159,051 $ (49,183) $ (4,328) $ 105,540 Customer relationships 10 21,500 (8,600) — 12,900 Trademarks and tradenames 10 16,600 (7,990) (4,122) 4,488 Patents 12 480 (250) — 230 $ 197,631 $ (66,023) $ (8,450) 123,158 Foreign currency translation adjustments (1,734) Total intangible assets, net 1 $ 121,424 1 Includes $34.3 million of fully amortized intangible assets related to customer relationships and trademarks. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2023 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2023 Existing technology 10 $ 112,051 $ (45,331) $ (4,328) $ 62,392 Customer relationships 10 21,500 (8,063) — 13,437 Trademarks and tradenames 10 16,600 (7,605) (4,122) 4,873 Patents 8 6,511 (6,082) — 429 $ 156,662 $ (67,081) $ (8,450) 81,131 Foreign currency translation adjustments 987 Total intangible assets, net 1 $ 82,118 1 Includes $34.3 million of fully amortized intangible assets related to customer relationships and trademarks.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of March 31, 2024, is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2024 $ 13,977 2025 18,574 2026 17,969 2027 15,607 2028 14,505 Thereafter 42,526 Total $ 123,158

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2024
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 months ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended 2024 2023 Cost of net revenues $ 2,064 $ 1,807 Selling, general and administrative 28,494 28,691 Research and development 8,230 7,237 Total stock-based compensation $ 38,788 $ 37,735
Summary Of Restricted Stock Units	A summary for the three months ended March 31, 2024 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, 2023 736 $ 367.63 Granted 610 311.35 Vested and released (231) 377.91 Forfeited (20) 377.56 Unvested as of March 31, 2024 1,095 $ 333.90 2.0 $ 359,130
Summary Of Market-performance Based Restricted Stock Units	The following table summarizes the MSU performance activity for the three months ended March 31, 2024: 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, 2023 158 $ 811.06 Granted 83 617.79 Vested and released 1 (32) 1,102.09 Forfeited (5) 1,102.09 Unvested as of March 31, 2024 204 $ 679.52 2.1 $ 66,889
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 2024 2023 Expected term (in years) 0.9 1.8 Expected volatility 56.0 % 58.6 % Risk-free interest rate 4.8 % 4.8 % Expected dividends — — Weighted average fair value at grant date $ 100.10 $ 138.13

Common Stock Repurchase Progr_2

Common Stock Repurchase Programs (Tables)	3 Months Ended
	Mar. 31, 2024
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Accelerated Share Repurchase Agreements	Agreement Repurchase Amount Paid Completion Total Shares Average Price per Share Q4 2022 May 2021 $ 200.0 Q1 2023 984,714 $ 203.10 Q1 2023 May 2021 $ 250.0 Q1 2023 805,908 $ 310.21 Q4 2023 January 2023 $ 250.0 Q1 2024 1,086,334 $ 230.13

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Numerator: Net income $ 105,028 $ 87,798 Denominator: Weighted average common shares outstanding, basic 75,175 76,921 Dilutive effect of potential common stock 147 190 Total shares, diluted 75,322 77,111 Net income per share, basic $ 1.40 $ 1.14 Net income per share, diluted $ 1.39 $ 1.14 Anti-dilutive potential common shares 1 571 578 1 Represents approximately 569 thousand RSU and 2 thousand ESPP weighted-average outstanding common stock equivalent shares that are excluded from the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Three Months Ended 2024 2023 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 21,284 $ 30,907 Final settlement of prior year stock repurchase forward contract 50,000 — Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,998 $ 7,871 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 10,568 $ 5,559

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information by segment is as follows (in thousands): Three Months Ended 2024 2023 Net revenues Clear Aligner $ 817,251 $ 789,804 Systems and Services 180,180 153,343 Total net revenues $ 997,431 $ 943,147 Gross profit Clear Aligner $ 579,146 $ 566,139 Systems and Services 118,670 94,515 Total gross profit $ 697,816 $ 660,654 Income from operations Clear Aligner $ 286,238 $ 277,521 Systems and Services 49,693 35,576 Unallocated corporate expenses (181,796) (179,581) Total income from operations $ 154,135 $ 133,516 Stock-based compensation Clear Aligner $ 3,764 $ 4,654 Systems and Services 359 321 Unallocated corporate expenses 34,665 32,760 Total stock-based compensation $ 38,788 $ 37,735 Depreciation and amortization Clear Aligner $ 14,433 $ 16,398 Systems and Services 6,838 8,146 Unallocated corporate expenses 11,675 11,276 Total depreciation and amortization $ 32,946 $ 35,820 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 2024 2023 Total segment income from operations $ 335,931 $ 313,097 Unallocated corporate expenses (181,796) (179,581) Total income from operations 154,135 133,516 Interest income 4,392 2,337 Other income (expense), net (141) (1,229) Net income before provision for income taxes $ 158,386 $ 134,624
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 2024 2023 Net revenues 1 : U.S. $ 432,101 $ 411,138 Switzerland 251,758 313,131 Other International 313,572 218,878 Total net revenues $ 997,431 $ 943,147 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): March 31, December 31, 2023 Long-lived assets 1 : Switzerland $ 573,000 $ 575,432 U.S. 210,283 210,275 Other International 617,422 623,155 Total long-lived assets $ 1,400,705 $ 1,408,862 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	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Cash, cash equivalents and marketable securities	$ 903,061	$ 981,569
Gross Unrealized Gains
Cash, cash equivalents and marketable securities	3	7
Gross Unrealized Losses
Cash, cash equivalents and marketable securities	(539)	(812)
Fair Value
Cash and cash equivalents	865,805	937,438
Marketable securities	36,720	43,326
Cash, cash equivalents and marketable securities	902,525	980,764
Cash
Amortized Cost
Cash and cash equivalents	816,224	887,682
Fair Value
Cash and cash equivalents	816,224	887,682
Cash and Cash Equivalents
Fair Value
Cash, cash equivalents and marketable securities	865,805	937,438
Cash and Cash Equivalents | Cash
Fair Value
Cash and cash equivalents	816,224	887,682
Marketable securities, short-term
Fair Value
Cash, cash equivalents and marketable securities	33,101	35,304
Marketable securities, long-term
Fair Value
Cash, cash equivalents and marketable securities	3,619	8,022
Money market funds
Amortized Cost
Cash and cash equivalents	49,581	49,756
Fair Value
Cash and cash equivalents	49,581	49,756
Money market funds | Cash and Cash Equivalents
Fair Value
Cash and cash equivalents	49,581	49,756
Corporate bonds
Amortized Cost
Marketable securities	26,535	31,943
Gross Unrealized Gains
Marketable securities	3	5
Gross Unrealized Losses
Marketable securities	(417)	(676)
Fair Value
Marketable securities	26,121	31,272
Corporate bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		0
Corporate bonds | Marketable securities, short-term
Fair Value
Marketable securities	24,551	28,704
Corporate bonds | Marketable securities, long-term
Fair Value
Marketable securities	1,570	2,568
U.S. government treasury bonds
Amortized Cost
Marketable securities	4,871	4,855
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(101)	(99)
Fair Value
Marketable securities	4,770	4,756
U.S. government treasury bonds | Marketable securities, short-term
Fair Value
Marketable securities	2,721	0
U.S. government treasury bonds | Marketable securities, long-term
Fair Value
Marketable securities	2,049	4,756
Asset-backed securities
Amortized Cost
Marketable securities	586	1,416
Gross Unrealized Gains
Marketable securities	0	2
Gross Unrealized Losses
Marketable securities	(1)	(1)
Fair Value
Marketable securities	585	1,417
Asset-backed securities | Marketable securities, short-term
Fair Value
Marketable securities	585	719
Asset-backed securities | Marketable securities, long-term
Fair Value
Marketable securities	0	698
Municipal bonds
Amortized Cost
Marketable securities		702
Gross Unrealized Gains
Marketable securities		0
Gross Unrealized Losses
Marketable securities		(2)
Fair Value
Marketable securities		700
Municipal bonds | Cash and Cash Equivalents
Fair Value
Marketable securities		0
Municipal bonds | Marketable securities, short-term
Fair Value
Marketable securities		700
Municipal bonds | Marketable securities, long-term
Fair Value
Marketable securities		0
U.S. government agency bonds
Amortized Cost
Marketable securities	5,264	5,215
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(20)	(34)
Fair Value
Marketable securities	5,244	5,181
U.S. government agency bonds | Marketable securities, short-term
Fair Value
Marketable securities	5,244	5,181
U.S. government agency bonds | Marketable securities, long-term
Fair Value
Marketable securities	$ 0	$ 0

Financial Instruments - Contrac

Financial Instruments - Contractual Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments, All Other Investments [Abstract]
Due in 1 year or less	$ 32,515	$ 34,617
Due in 1 year through 5 years	4,205	8,709
Total	$ 36,720	$ 43,326

Financial Instruments - Unreali

Financial Instruments - Unrealized Losses for Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 7,641	$ 7,065
12 months or greater, fair value	26,719	32,612
Fair value	34,360	39,677
Less than 12 months, unrealized loss	(39)	(23)
12 months or greater, unrealized loss	(500)	(789)
Unrealized loss	(539)	(812)
Corporate bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1,006	0
12 months or greater, fair value	22,805	27,939
Fair value	23,811	27,939
Less than 12 months, unrealized loss	(3)	0
12 months or greater, unrealized loss	(414)	(676)
Unrealized loss	(417)	(676)
U.S. government treasury bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	2,049	2,044
12 months or greater, fair value	2,721	2,712
Fair value	4,770	4,756
Less than 12 months, unrealized loss	(26)	(11)
12 months or greater, unrealized loss	(75)	(88)
Unrealized loss	(101)	(99)
Asset-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	535	1,018
12 months or greater, fair value	0	83
Fair value	535	1,101
Less than 12 months, unrealized loss	(1)	(1)
12 months or greater, unrealized loss	0	0
Unrealized loss	(1)	(1)
Municipal bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	0	0
12 months or greater, fair value	0	700
Fair value	0	700
Less than 12 months, unrealized loss	0	0
12 months or greater, unrealized loss	0	(2)
Unrealized loss	0	(2)
U.S. government agency bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	4,051	4,003
12 months or greater, fair value	1,193	1,178
Fair value	5,244	5,181
Less than 12 months, unrealized loss	(9)	(11)
12 months or greater, unrealized loss	(11)	(23)
Unrealized loss	$ (20)	$ (34)

Financial Instruments - Fair Va

Financial Instruments - Fair Value Measured On A Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	$ 33,101	$ 35,304
Long-term investments	3,619	8,022
Assets measured at fair value	86,301	93,082
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	49,581	49,756
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	36,720	43,326
U.S. government agency bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	5,244	5,181
U.S. government agency bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-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]
Short-term investments	5,244	5,181
U.S. government treasury bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	2,721
Long-term investments	2,049	4,756
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	0
Long-term investments	0	0
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	2,721
Long-term investments	2,049	4,756
Corporate bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	24,551	28,704
Long-term investments	1,570	2,568
Corporate bonds | 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
Corporate bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	24,551	28,704
Long-term investments	1,570	2,568
Municipal bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments		700
Municipal bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments		0
Municipal bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments		700
Asset-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	585	719
Long-term investments		698
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
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	585	719
Long-term investments		698
Money market funds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	49,581	49,756
Money market funds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	49,581	49,756
Money market funds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	$ 0	$ 0

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 24, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Investments, All Other Investments [Abstract]
Accounts receivable sold		$ 14,600	$ 8,000
Heartland
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity interest percentage (less than)	5%
Acquisition of equity interest	$ 75,000
Investments in equity securities		75,000
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) on derivatives		19,700	$ (6,400)
Derivative, fair value		$ 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

Mar. 31, 2024 EUR (€)

Mar. 31, 2024 USD ($)

Mar. 31, 2024 GBP (£)

Mar. 31, 2024 CAD ($)

Mar. 31, 2024 PLN (zł)

Mar. 31, 2024 CNY (¥)

Mar. 31, 2024 JPY (¥)

Mar. 31, 2024 BRL (R$)

Mar. 31, 2024 MXN ($)

Mar. 31, 2024 ILS (₪)

Mar. 31, 2024 CHF (SFr)

Mar. 31, 2024 NZD ($)

Mar. 31, 2024 TWD ($)

Mar. 31, 2024 AUD ($)

Mar. 31, 2024 CZK (Kč)

Mar. 31, 2024 KRW (₩)

Dec. 31, 2023 EUR (€)

Dec. 31, 2023 USD ($)

Dec. 31, 2023 GBP (£)

Dec. 31, 2023 CAD ($)

Dec. 31, 2023 PLN (zł)

Dec. 31, 2023 CNY (¥)

Dec. 31, 2023 JPY (¥)

Dec. 31, 2023 BRL (R$)

Dec. 31, 2023 MXN ($)

Dec. 31, 2023 ILS (₪)

Dec. 31, 2023 CHF (SFr)

Dec. 31, 2023 NZD ($)

Dec. 31, 2023 TWD ($)

Dec. 31, 2023 AUD ($)

Dec. 31, 2023 CZK (Kč)

Dec. 31, 2023 KRW (₩)

Derivative [Line Items]

Notional amount

$ 721,607

$ 744,462

Euro

Derivative [Line Items]

Notional amount

€ 262,300

283,818

€ 337,780

373,705

British Pound

Derivative [Line Items]

Notional amount

153,937

£ 121,800

58,005

£ 45,590

Canadian Dollar

Derivative [Line Items]

Notional amount

71,174

$ 96,500

82,166

$ 108,900

Polish Zloty

Derivative [Line Items]

Notional amount

69,117

zł 276,400

70,393

zł 276,900

Chinese Yuan

Derivative [Line Items]

Notional amount

44,536

¥ 322,800

34,361

¥ 244,500

Japanese Yen

Derivative [Line Items]

Notional amount

28,547

¥ 4,300,000

25,347

¥ 3,577,000

Brazilian Real

Derivative [Line Items]

Notional amount

17,650

R$ 88600

16,563

R$ 80500

Mexican Peso

Derivative [Line Items]

Notional amount

16,265

$ 270,000

13,593

$ 230,000

Israeli Shekel

Derivative [Line Items]

Notional amount

13,137

₪ 48,200

21,800

₪ 78,700

Swiss Franc

Derivative [Line Items]

Notional amount

7,776

SFr 7,000

34,132

SFr 28,600

New Zealand Dollar

Derivative [Line Items]

Notional amount

5,912

$ 9,900

4,161

$ 6,600

New Taiwan Dollar

Derivative [Line Items]

Notional amount

3,064

$ 98,000

2,919

$ 89,000

Australian Dollar

Derivative [Line Items]

Notional amount

3,061

$ 4,700

2,921

$ 4,300

Czech Koruna

Derivative [Line Items]

Notional amount

1,905

Kč 44,600

2,687

Kč 60,200

Korean Won

Derivative [Line Items]

Notional amount

$ 1,708

₩ 2,300,000

$ 1,709

₩ 2,200,000

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes To Financial Statements [Abstract]
Raw materials	$ 134,305	$ 145,492
Work in process	92,518	91,259
Finished goods	53,253	60,151
Total inventories	$ 280,076	$ 296,902

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes To Financial Statements [Abstract]
Value added tax receivables	$ 206,915	$ 143,728
Prepaid expenses	72,187	52,487
Other current assets	70,492	77,335
Total prepaid expenses and other current assets	$ 349,594	$ 273,550

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 191,904	$ 220,862
Accrued expenses	76,540	71,109
Accrued sales and marketing expenses	42,933	34,035
Accrued income taxes	38,942	38,103
Current operating lease liabilities	31,324	29,651
Accrued property, plant and equipment	16,093	23,618
Other accrued liabilities	98,865	108,402
Accrued liabilities	$ 496,601	$ 525,780

Balance Sheet Components - Warr

Balance Sheet Components - Warranty Accrual Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 22,426	$ 17,873
Charged to cost of net revenues	5,449	4,532
Actual warranty expenditures	(3,312)	(3,476)
Balance at end of period	$ 24,563	$ 18,929

Balance Sheet Components - Defe

Balance Sheet Components - Deferred Revenues (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 1,409,202	$ 1,427,706
Deferred revenues - long-term	$ 115,400	$ 138,000

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 997,431	$ 943,147
Revenue recognized included in deferred revenue	236,800	$ 205,700
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation	$ 1,533,100
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation, period of recognition	6 months
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation, period of recognition	5 years

Business Combination - Narrativ

Business Combination - Narrative (Details) - Cubicure GmbH $ in Thousands	Jan. 02, 2024 USD ($)
Business Acquisition [Line Items]
Equity interest prior to acquisition	9.04%
Fair value of pre-existing equity interest ownership	$ 7,968
Pre-tax gain on remeasurement	4,100
Settlement of pre-existing relationship - accounts payable	2,316
Goodwill deductible for tax purposes	$ 0

Business Combination - Fair Val

Business Combination - Fair Value of Consideration Transferred (Details) - Cubicure GmbH $ in Thousands	Jan. 02, 2024 USD ($)
Business Acquisition [Line Items]
Cash paid to Cubicure stockholders	$ 80,142
Fair value of pre-existing equity interest ownership	7,968
Settlement of pre-existing relationship - accounts payable	(2,316)
Total purchase consideration paid	$ 85,794

Business Combination - Assets A

Business Combination - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jan. 02, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 458,235		$ 419,530
Cubicure GmbH
Business Acquisition [Line Items]
Working capital		$ 1,039
Property & equipment		975
Developed technology		47,000
Other non-current asset		1,386
Other liabilities		(12,279)
Goodwill		47,673
Total		$ 85,794

Business Combination - Intangib

Business Combination - Intangible Assets Acquired (Details) - Existing technology - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Jan. 02, 2024	Mar. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Weighted average amortization period		11 years	10 years
Cubicure GmbH
Business Acquisition [Line Items]
Intangible assets acquired	$ 47,000
Weighted average amortization period	13 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2023	$ 419,530
Additions from acquisition	47,673
Foreign currency translation adjustments	(8,968)
Balance as of March 31, 2024	458,235
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2023	111,086
Additions from acquisition	47,673
Foreign currency translation adjustments	(2,180)
Balance as of March 31, 2024	156,579
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2023	308,444
Additions from acquisition	0
Foreign currency translation adjustments	(6,788)
Balance as of March 31, 2024	$ 301,656

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 197,631	$ 156,662
Accumulated Amortization	(66,023)	(67,081)
Accumulated Impairment Loss	(8,450)	(8,450)
Net carrying value	123,158	81,131
Foreign currency translation adjustments	(1,734)	987
Total intangible assets	$ 121,424	$ 82,118
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	11 years	10 years
Gross carrying amount	$ 159,051	$ 112,051
Accumulated Amortization	(49,183)	(45,331)
Accumulated Impairment Loss	(4,328)	(4,328)
Net carrying value	$ 105,540	$ 62,392
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	10 years	10 years
Gross carrying amount	$ 21,500	$ 21,500
Accumulated Amortization	(8,600)	(8,063)
Accumulated Impairment Loss	0	0
Net carrying value	12,900	13,437
Fully amortized intangible assets	$ 34,300	$ 34,300
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	10 years	10 years
Gross carrying amount	$ 16,600	$ 16,600
Accumulated Amortization	(7,990)	(7,605)
Accumulated Impairment Loss	(4,122)	(4,122)
Net carrying value	$ 4,488	$ 4,873
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	12 years	8 years
Gross carrying amount	$ 480	$ 6,511
Accumulated Amortization	(250)	(6,082)
Accumulated Impairment Loss	0	0
Net carrying value	$ 230	$ 429

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Jan. 02, 2024	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, intangible assets		$ 197,631		$ 156,662
Amortization		5,000	$ 4,100
Existing technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, intangible assets		$ 159,051		$ 112,051
Weighted average amortization period		11 years		10 years
Existing technology | Cubicure GmbH
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 47,000
Weighted average amortization period	13 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 13,977
2025	18,574
2026	17,969
2027	15,607
2028	14,505
Thereafter	42,526
Net carrying value	$ 123,158	$ 81,131

Credit Facility (Details)

Credit Facility (Details) - 2022 Credit Facility	Mar. 31, 2024 USD ($)
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit, available borrowings	300,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, available borrowings	$ 50,000,000

Legal Proceedings (Details)

Legal Proceedings (Details) $ in Thousands			1 Months Ended	3 Months Ended
	Sep. 08, 2023 USD ($)	Oct. 27, 2022 USD ($)	Jan. 31, 2019 claim	Mar. 31, 2024 USD ($)
Legal Proceedings [Abstract]
Number of lawsuits filed | claim			3
Litigation settlement, expense				$ 575
Gain contingency, amount awarded	$ 63,000	$ 63,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Damages sought	$ 95
Potential exposure	$ 115

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2022
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	32,168,895
Shares available for issuance	3,393,482
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	1,931,910
Total unamortized compensation cost	$ 14.1
Weighted average period of total unamortized cost (in years)	9 months 18 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Total unamortized compensation cost	$ 311.9
Weighted average period of total unamortized cost (in years)	3 years 2 months 12 days
Granted (in shares)	610,000
Granted (in usd per share)	$ 311.35
MSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Total unamortized compensation cost	$ 82.2
Weighted average period of total unamortized cost (in years)	2 years 1 month 6 days
Maximum percentage of market-performance based restricted stock units eligible to vest over the vesting period	250%
Granted (in shares)	83,000
Granted (in usd per share)	$ 617.79
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		2 years 2 months 12 days
Granted (in shares)		4,728
Granted (in usd per share)		$ 201.63

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense Related to All Stock-Based Awards and Employee Stock Purchases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 38,788	$ 37,735
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,064	1,807
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	28,494	28,691
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 8,230	$ 7,237

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
RSUs
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) | shares	736
Granted (in shares) | shares	610
Vested and released (in shares) | shares	(231)
Forfeited (in shares) | shares	(20)
Unvested, end of period (in shares) | shares	1,095
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) | $ / shares	$ 367.63
Granted (in usd per share) | $ / shares	311.35
Vested and released (in usd per share) | $ / shares	377.91
Forfeited (in usd per share) | $ / shares	377.56
Unvested, end of period (in usd per share) | $ / shares	$ 333.90
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	2 years
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 359,130
MSUs
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) | shares	158
Granted (in shares) | shares	83
Vested and released (in shares) | shares	(32)
Forfeited (in shares) | shares	(5)
Unvested, end of period (in shares) | shares	204
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) | $ / shares	$ 811.06
Granted (in usd per share) | $ / shares	617.79
Vested and released (in usd per share) | $ / shares	1,102.09
Forfeited (in usd per share) | $ / shares	1,102.09
Unvested, end of period (in usd per share) | $ / shares	$ 679.52
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	2 years 1 month 6 days
Aggregate Intrinsic Value
Aggregate intrinsic value | $	$ 66,889

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
	Mar. 31, 2024	Mar. 31, 2023
Class of Stock [Line Items]
Expected term (in years)	10 months 24 days	1 year 9 months 18 days
Expected volatility	56%	58.60%
Risk-free interest rate	4.80%	4.80%
Expected dividends	0%	0%
Weighted average fair value at grant date (in usd per share)	$ 100.10	$ 138.13

Common Stock Repurchase Progr_3

Common Stock Repurchase Programs - Accelerated Share Repurchase Agreements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Jan. 31, 2023	May 31, 2021
Share Repurchases [Line Items]
Amount paid	$ 0		$ 292,360,000
May 2021 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount					$ 1,000,000,000
May 2021 Repurchase Program | Q4 2022
Share Repurchases [Line Items]
Amount paid			$ 200,000,000
Total shares received (in shares)			984,714
Average price per share (in dollars per share)			$ 203.10
May 2021 Repurchase Program | Q1 2023
Share Repurchases [Line Items]
Amount paid			$ 250,000,000
Total shares received (in shares)			805,908
Average price per share (in dollars per share)			$ 310.21
January 2023 Repurchase Program
Share Repurchases [Line Items]
Amount paid		$ 100,000,000
Authorized repurchase amount				$ 1,000,000,000
January 2023 Repurchase Program | Q4 2023
Share Repurchases [Line Items]
Amount paid	$ 250,000,000
Total shares received (in shares)	1,086,334
Average price per share (in dollars per share)	$ 230.13

Common Stock Repurchase Progr_4

Common Stock Repurchase Programs - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Apr. 26, 2024	Jan. 31, 2023
Share Repurchases [Line Items]
Amount paid	$ 0		$ 292,360,000
January 2023 Repurchase Program
Share Repurchases [Line Items]
Amount paid		$ 100,000,000
Amount available for repurchase	$ 650,000,000
Authorized repurchase amount					$ 1,000,000,000
January 2023 Repurchase Program | Subsequent Event
Share Repurchases [Line Items]
Authorized repurchase amount				$ 150,000,000

Accounting for Income Taxes (De

Accounting for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 53,358	$ 46,826
Effective income tax rate, continuing operations	33.70%	34.80%
Unrecognized tax benefits	$ 150,800		$ 149,200

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 105,028	$ 87,798
Weighted average common shares outstanding, basic (in shares)	75,175	76,921
Dilutive effect of potential common stock (in shares)	147	190
Total shares, diluted (in shares)	75,322	77,111
Net income per share, basic (in usd per share)	$ 1.40	$ 1.14
Net income per share, diluted (in usd per share)	$ 1.39	$ 1.14
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive potential common shares (in shares)	571	578
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive potential common shares (in shares)	569
Employee stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive potential common shares (in shares)	2

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$ 21,284	$ 30,907
Final settlement of prior year stock repurchase forward contract	50	0
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	9,998	7,871
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 10,568	$ 5,559

Segments and Geographical Inf_3

Segments and Geographical Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 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
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Net revenues	$ 997,431	$ 943,147
Gross profit	697,816	660,654
Income from operations	154,135	133,516
Stock-based compensation	38,788	37,735
Depreciation and amortization	32,946	35,820
Interest income	4,392	2,337
Other income (expense), net	(141)	(1,229)
Net income before provision for income taxes	158,386	134,624
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	335,931	313,097
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(181,796)	(179,581)
Stock-based compensation	34,665	32,760
Depreciation and amortization	11,675	11,276
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	817,251	789,804
Gross profit	579,146	566,139
Clear Aligner | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	286,238	277,521
Stock-based compensation	3,764	4,654
Depreciation and amortization	14,433	16,398
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	180,180	153,343
Gross profit	118,670	94,515
Systems and Services | Operating Segments
Segment Reporting Information [Line Items]
Income from operations	49,693	35,576
Stock-based compensation	359	321
Depreciation and amortization	$ 6,838	$ 8,146

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Net revenues	$ 997,431	$ 943,147
U.S.
Segment Reporting Information [Line Items]
Net revenues	432,101	411,138
Switzerland
Segment Reporting Information [Line Items]
Net revenues	251,758	313,131
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 313,572	$ 218,878

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 1,400,705	$ 1,408,862
Switzerland
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	573,000	575,432
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	210,283	210,275
Other International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 617,422	$ 623,155

Restructuring and Other Charg_2

Restructuring and Other Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring expenses		$ 14
Unpaid restructuring charges	$ 1.4	$ 5.3
Reduction in restructuring liability	$ 3.9

Subsequent Event (Details)

Subsequent Event (Details) - Heartland - USD ($) $ in Thousands	Apr. 22, 2024	Apr. 24, 2023	Mar. 31, 2024
Subsequent Event [Line Items]
Acquisition of equity interest		$ 75,000
Investments in equity securities			$ 75,000
Equity interest percentage (less than)		5%
Subsequent Event
Subsequent Event [Line Items]
Acquisition of equity interest	$ 75,000
Investments in equity securities	$ 150,000
Equity interest percentage (less than)	5%