Align Technology (ALGN) 10-Q4 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Jul. 28, 2023
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	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		76,533,704

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net revenues	$ 1,002,173	$ 969,553	$ 1,945,320	$ 1,942,772
Cost of net revenues	288,564	281,994	571,057	545,867
Gross profit	713,609	687,559	1,374,263	1,396,905
Operating expenses:
Selling, general and administrative	453,193	426,398	892,884	865,855
Research and development	88,485	72,965	175,932	144,772
Total operating expenses	541,678	499,363	1,068,816	1,010,627
Income from operations	171,931	188,196	305,447	386,278
Interest income	4,421	245	6,758	922
Other income (expense), net	(4,763)	(14,832)	(5,992)	(26,105)
Total interest income and other income (expense), net	(342)	(14,587)	766	(25,183)
Net income before provision for income taxes	171,589	173,609	306,213	361,095
Provision for income taxes	59,775	60,809	106,601	113,997
Net income	$ 111,814	$ 112,800	$ 199,612	$ 247,098
Net income per share:
Basic (in usd per share)	$ 1.46	$ 1.44	$ 2.60	$ 3.15
Diluted (in usd per share)	$ 1.46	$ 1.44	$ 2.60	$ 3.13
Shares used in computing net income per share:
Basic (in shares)	76,524	78,395	76,722	78,568
Diluted (in shares)	76,689	78,545	76,897	78,840

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 111,814	$ 112,800	$ 199,612	$ 247,098
Other comprehensive income (loss):
Change in foreign currency translation adjustment, net of tax	9,158	(13,756)	19,632	(21,067)
Change in unrealized gains (losses) on investments, net of tax	350	(301)	1,995	(3,029)
Other comprehensive income (loss)	9,508	(14,057)	21,627	(24,096)
Comprehensive income	$ 121,322	$ 98,743	$ 221,239	$ 223,002

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 951,956	$ 942,050
Marketable securities, short-term	55,805	57,534
Accounts receivable, net of allowance for doubtful accounts of $13,244 and $10,343, respectively	908,395	859,685
Inventories	312,736	338,752
Prepaid expenses and other current assets	236,564	226,370
Total current assets	2,465,456	2,424,391
Marketable securities, long-term	26,023	41,978
Property, plant and equipment, net	1,279,042	1,231,855
Operating lease right-of-use assets, net	125,881	118,880
Goodwill	414,765	407,551
Intangible assets, net	89,296	95,720
Deferred tax assets	1,605,926	1,571,746
Other assets	138,161	55,826
Total assets	6,144,550	5,947,947
Current liabilities:
Accounts payable	110,155	127,870
Accrued liabilities	600,163	454,374
Deferred revenues	1,396,747	1,343,643
Total current liabilities	2,107,065	1,925,887
Income tax payable	113,309	124,393
Operating lease liabilities	104,650	100,334
Other long-term liabilities	181,225	195,975
Total liabilities	2,506,249	2,346,589
Commitments and contingencies (Notes 6 and 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value (5,000 shares authorized; none issued)	0	0
Common stock, $0.0001 par value (200,000 shares authorized; 76,532 and 77,267 issued and outstanding, respectively)	8	8
Additional paid-in capital	1,141,623	1,044,946
Accumulated other comprehensive income (loss), net	11,343	(10,284)
Retained earnings	2,485,327	2,566,688
Total stockholders’ equity	3,638,301	3,601,358
Total liabilities and stockholders’ equity	$ 6,144,550	$ 5,947,947

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 13,244	$ 10,343
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	76,532,000	77,267,000
Common stock, shares outstanding	76,532,000	77,267,000

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, 2021		78,710
Beginning Balance at Dec. 31, 2021	$ 3,622,714	$ 8	$ 999,006	$ 4,326	$ 2,619,374
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	247,098				247,098
Change in tax effect unrealized gains on investments				(3,029)
Net change in unrealized gains (losses) from investments	(3,029)
Net change in foreign currency translation adjustment	(21,067)			(21,067)
Issuance of common stock relating to employee equity compensation plans (in shares)		250
Issuance of common stock relating to employee equity compensation plans	14,827		14,827
Tax withholdings related to net share settlements of equity awards	(52,187)		(52,187)
Common stock repurchased and retired (in shares)		(901)
Common stock repurchased and retired	(275,036)		(10,525)		(264,511)
Stock-based compensation	65,761		65,761
Ending Balance (in shares) at Jun. 30, 2022		78,059
Ending Balance at Jun. 30, 2022	3,599,081	$ 8	1,016,882	(19,770)	2,601,961
Beginning Balance (in shares) at Mar. 31, 2022		78,805
Beginning Balance at Mar. 31, 2022	3,666,852	$ 8	992,287	(5,713)	2,680,270
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	112,800				112,800
Change in tax effect unrealized gains on investments				(301)
Net change in unrealized gains (losses) from investments	(301)
Net change in foreign currency translation adjustment	(13,756)			(13,756)
Issuance of common stock relating to employee equity compensation plans (in shares)		11
Issuance of common stock relating to employee equity compensation plans	0		0
Tax withholdings related to net share settlements of equity awards	(654)		(654)
Common stock repurchased and retired (in shares)		(757)
Common stock repurchased and retired	(200,000)		(8,891)		(191,109)
Stock-based compensation	34,140		34,140
Ending Balance (in shares) at Jun. 30, 2022		78,059
Ending Balance at Jun. 30, 2022	3,599,081	$ 8	1,016,882	(19,770)	2,601,961
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
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, 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	199,612				199,612
Change in tax effect unrealized gains on investments				1,995
Net change in unrealized gains (losses) from investments	1,995
Net change in foreign currency translation adjustment	19,632			19,632
Issuance of common stock relating to employee equity compensation plans (in shares)		207
Issuance of common stock relating to employee equity compensation plans	14,256		14,256
Tax withholdings related to net share settlements of equity awards	(21,787)		(21,787)
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	75,595		75,595
Ending Balance (in shares) at Jun. 30, 2023		76,532
Ending Balance at Jun. 30, 2023	3,638,301	$ 8	1,141,623	11,343	2,485,327
Beginning Balance (in shares) at Mar. 31, 2023		76,516
Beginning Balance at Mar. 31, 2023	3,480,049	$ 8	1,104,693	1,835	2,373,513
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	111,814				111,814
Change in tax effect unrealized gains on investments	350			350
Net change in unrealized gains (losses) from investments	350
Net change in foreign currency translation adjustment	9,158			9,158
Issuance of common stock relating to employee equity compensation plans (in shares)		16
Tax withholdings related to net share settlements of equity awards	(930)		(930)
Stock-based compensation	37,860		37,860
Ending Balance (in shares) at Jun. 30, 2023		76,532
Ending Balance at Jun. 30, 2023	$ 3,638,301	$ 8	$ 1,141,623	$ 11,343	$ 2,485,327

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 199,612	$ 247,098
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(36,688)	14,747
Depreciation and amortization	71,639	59,907
Stock-based compensation	75,595	65,761
Non-cash operating lease cost	15,531	15,075
Other non-cash operating activities	21,860	16,172
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(73,680)	(53,462)
Inventories	19,064	(91,060)
Prepaid expenses and other assets	(16,799)	(14,219)
Accounts payable	(10,351)	(23,944)
Accrued and other long-term liabilities	140,284	(212,896)
Long-term income tax payable	(11,113)	(1,657)
Deferred revenues	56,718	136,021
Net cash provided by operating activities	451,672	157,543
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(122,664)	(163,348)
Purchase of marketable securities	(2,373)	(20,466)
Proceeds from maturities of marketable securities	17,601	21,690
Proceeds from sales of marketable securities	4,048	92,235
Purchase of equity investments	(75,000)	0
Other investing activities	74	(2,189)
Net cash used in investing activities	(178,314)	(72,078)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	14,256	14,827
Common stock repurchases	(292,360)	(275,036)
Payments for equity forward contracts related to accelerated share repurchase agreements	40,000	0
Payroll taxes paid upon the vesting of equity awards	(21,788)	(52,187)
Net cash used in financing activities	(259,892)	(312,396)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(3,523)	4,978
Net increase (decrease) in cash, cash equivalents, and restricted cash	9,943	(221,953)
Cash, cash equivalents, and restricted cash at beginning of the period	942,355	1,100,139
Cash, cash equivalents, and restricted cash at end of the period	$ 952,298	$ 878,186

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2022, and contain all adjustments, including normal recurring adjustments, necessary to fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any other future period, and we make no representations related thereto. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes, contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Certain Risks and Uncertainties Our business has been materially impacted by fluctuations in macroeconomic conditions, which have been exacerbated by ongoing geopolitical issues. While the situation is highly uncertain and evolving, we have been and continue to be impacted by factors such as inflation, supply chain challenges, rising interest rates, volatilities in the financial markets, foreign currency exchange rate fluctuations, impacts on consumer confidence and purchasing power, and global recession concerns which could further subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. Additionally, we could also be materially adversely affected by uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers. While the overall impact of the COVID-19 pandemic is gradually declining, we continue to be exposed to risks and uncertainties posed by it which varies by geographic region at different levels. The extent to which our business could be impacted in the future by the pandemic is highly uncertain and difficult to predict. Recent Accounting Pronouncements (i) Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board ( “ FASB ” ) and do not believe any of the recently issued accounting pronouncements will have a material impact on our consolidated financial statements or related disclosures.

Financial Instruments

Financial Instruments	6 Months Ended
Financial Instruments	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Financial Instruments	Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in thousands): Reported as: June 30, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 759,407 $ — $ — $ 759,407 $ 759,407 $ — $ — Money market funds 192,549 — — 192,549 192,549 — — Corporate bonds 59,703 — (1,740) 57,963 — 39,145 18,818 U.S. government treasury bonds 14,054 — (325) 13,729 — 9,096 4,633 Asset-backed securities 3,600 — (13) 3,587 — 2,012 1,575 Municipal bonds 1,437 — (18) 1,419 — 1,419 — U.S. government agency bonds 5,214 — (84) 5,130 — 4,133 997 Total $ 1,035,964 $ — $ (2,180) $ 1,033,784 $ 951,956 $ 55,805 $ 26,023 Reported as: December 31, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 712,921 $ — $ — $ 712,921 $ 712,921 $ — $ — Money market funds 229,129 — — 229,129 229,129 — — Corporate bonds 69,390 — (2,915) 66,475 — 36,510 29,965 U.S. government treasury bonds 20,559 — (549) 20,010 — 15,404 4,606 Asset-backed securities 4,514 1 (37) 4,478 — 2,909 1,569 Municipal bonds 3,447 — (61) 3,386 — 2,711 675 U.S. government agency bonds 5,231 1 (69) 5,163 — — 5,163 Total $ 1,045,191 $ 2 $ (3,631) $ 1,041,562 $ 942,050 $ 57,534 $ 41,978 The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Due in 1 year or less $ 50,644 $ 51,037 Due in 1 year through 5 years 31,184 48,475 Total $ 81,828 $ 99,512 The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Our unrealized losses as of June 30, 2023 and December 31, 2022 are primarily due to changes in interest rates and credit spreads. The following tables summarize the gross unrealized losses as of June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands): As of June 30, 2023 Less than 12 months 12 Months of Greater Total June 30, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 1,514 $ (15) $ 56,155 $ (1,725) $ 57,669 $ (1,740) U.S. government treasury bonds 1,986 (32) 11,743 (293) 13,729 (325) Asset-backed securities 2,565 (5) 1,022 (8) 3,587 (13) Municipal bonds — — 685 (18) 685 (18) U.S. government agency bonds 3,980 (33) 1,150 (51) 5,130 (84) Total $ 10,045 $ (85) $ 70,755 $ (2,095) $ 80,800 $ (2,180) As of December 31, 2022 Less than 12 months 12 Months of Greater Total December 31, 2022 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 10,639 $ (440) $ 54,634 $ (2,475) $ 65,273 $ (2,915) U.S. government treasury bonds 5,262 (177) 14,748 (372) 20,010 (549) Asset-backed securities 2,636 (17) 1,275 (20) 3,911 (37) Municipal bonds — — 2,412 (61) 2,412 (61) U.S. government agency bonds 3,017 (5) 1,136 (64) 4,153 (69) Total $ 21,554 $ (639) $ 74,205 $ (2,992) $ 95,759 $ (3,631) 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 $8.2 million during the three months and $16.2 million for the six months ended June 30, 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 June 30, 2023 and December 31, 2022 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 192,549 $ 192,549 $ — Short-term investments: U.S. government agency bonds 4,133 — 4,133 U.S. government treasury bonds 9,096 9,096 — Corporate bonds 39,145 — 39,145 Municipal bonds 1,419 — 1,419 Asset-backed securities 2,012 — 2,012 Long-term investments: U.S. government treasury bonds 4,633 4,633 — Corporate bonds 18,818 — 18,818 U.S. government agency bonds 997 — 997 Asset-backed securities 1,575 — 1,575 $ 274,377 $ 206,278 $ 68,099 Description Balance as of December 31, 2022 Level 1 Level 2 Cash equivalents: Money market funds $ 229,129 $ 229,129 $ — Short-term investments: U.S. government treasury bonds 15,404 15,404 — Corporate bonds 36,510 — 36,510 Municipal bonds 2,711 — 2,711 Asset-backed securities 2,909 — 2,909 Long-term investments: U.S. government treasury bonds 4,606 4,606 — Corporate bonds 29,965 — 29,965 Municipal bonds 675 — 675 U.S. government agency bonds 5,163 — 5,163 Asset-backed securities 1,569 — 1,569 $ 328,641 $ 249,139 $ 79,502 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 under the measurement alternative. Under the measurement alternative, the carrying value of our equity investment is adjusted to fair value for observable transactions for identical or similar investments of the same issuer. Investments in equity securities are reported on our Consolidated Balance Sheet as other assets, and we periodically evaluate them for impairment. We record any change in carrying value of our equity securities, in other income (expense), net in our Consolidated Statement of Operations. The carrying value of our equity investments in privately held companies without readily determinable fair values were not material, excluding Heartland, as of June 30, 2023 or 2022 and the associated adjustments to the carrying values of the investments were not material during the quarters ended June 30, 2023 and 2022. On April 24, 2023, we entered into a Subscription Agreement (the "Subscription Agreement") with Heartland Dental Holding Corporation (“Heartland”) who is an affiliate of KKR Core Holding Company LLC, which is an investment vehicle managed or advised by, or otherwise affiliated with, Kohlberg Kravis Roberts & Co. L.P. (“KKR”). Heartland is a dental support organization (“DSO”) that provides nonclinical administrative and support services to supported dental professional corporations (“PCs”). Pursuant to the Subscription Agreement we acquired less than a 5% equity interest and have no significant influence in Heartland through the purchase of Class A Common Stock for $75 million. In connection with the Subscription Agreement, we entered into a Stockholders’ Agreement, by and among us, Heartland Dental Topco, LLC (“Topco”) and funds and accounts managed by affiliates of KKR & Co. Inc. (“KKR”), and a Side Letter, by and among us, Heartland, Topco and KKR (the "Side Letter"). Subject to certain restrictions set forth in the Side Letter, we agreed to provisions applicable to Heartland’s stockholders, including certain drag-along and voting obligations. Similar to our other private equity investments Heartland is accounted for under the measurement alternative. Based on review of our equity investment, we determined there were no adjustments to the carrying value and it is properly reflected on our Consolidated Balance Sheet in other assets at $75 million as of June 30, 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 trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, during the three months ended June 30, 2023 and 2022, we recognized net gains of $1.1 million and of $10.8 million, respectively, and during the six months ended June 30, 2023 and 2022, we recognized a net loss of $5.3 million and a net gain of $9.2 million, respectively. As of June 30, 2023 and December 31, 2022, the fair value of foreign exchange forward contracts outstanding was not material. The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Local Currency Amount Notional Contract Amount (USD) Euro €218,700 $ 238,786 Canadian Dollar C$106,000 79,959 Polish Zloty PLN279,700 68,452 Chinese Yuan ¥408,000 56,266 British Pound £43,900 55,704 Japanese Yen ¥5,340,000 37,136 Swiss Franc CHF30,000 33,526 Brazilian Real R$143,300 29,532 Mexican Peso M$230,000 13,491 Israeli Shekel ILS49,380 13,300 New Zealand Dollar NZ$9,900 6,046 Czech Koruna Kč60,000 2,750 New Taiwan Dollar NT$82,000 2,629 Australian Dollar A$3,460 $ 2,302 Korean Won ₩1,800,000 1,365 $ 641,244 December 31, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €186,900 $ 200,010 Polish Zloty PLN365,988 83,307 Canadian Dollar C$109,000 80,514 Chinese Yuan ¥471,000 68,223 British Pound £41,200 49,677 Japanese Yen ¥6,200,000 47,196 Israeli Shekel ILS110,030 31,383 Swiss Franc CHF25,000 27,165 Brazilian Real R$141,200 26,839 Mexican Peso M$230,000 11,746 New Zealand Dollar NZ$6,000 3,806 Australian Dollar A$4,000 2,721 Czech Koruna Kč56,000 2,469 New Taiwan Dollar NT$60,000 1,959 $ 637,015

Balance Sheet Components

Balance Sheet Components	6 Months Ended
Balance Sheet Components	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories consist of the following (in thousands): June 30, December 31, Raw materials $ 148,793 $ 172,758 Work in process 100,468 96,558 Finished goods 63,475 69,436 Total inventories $ 312,736 $ 338,752 Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, Value added tax receivables $ 137,248 $ 140,484 Prepaid expenses 76,608 69,124 Other current assets 22,708 16,762 Total prepaid expenses and other current assets $ 236,564 $ 226,370 Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and benefits $ 211,889 $ 149,508 Accrued income taxes 147,618 74,323 Accrued expenses 63,004 64,341 Accrued sales and marketing expenses 43,628 36,407 Current operating lease liabilities 28,770 26,574 Accrued property, plant and equipment 11,992 19,922 Other accrued liabilities 93,262 83,299 Total accrued liabilities $ 600,163 $ 454,374 Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Six Months Ended 2023 2022 Balance at beginning of period $ 17,873 $ 16,169 Charged to cost of net revenues 9,421 7,660 Actual warranty expenditures (6,797) (7,334) Balance at end of period $ 20,497 $ 16,495 Deferred revenues consist of the following (in thousands): June 30, December 31, Deferred revenues - current $ 1,396,747 $ 1,343,643 Deferred revenues - long-term 1 $ 148,277 $ 160,662 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet During the three months ended June 30, 2023 and 2022, we recognized $1,002.2 million and $969.6 million of net revenues, respectively, of which $199.0 million and $178.4 million was included in the deferred revenues balance at December 31, 2022 and 2021, respectively. During the six months ended June 30, 2023 and 2022, we recognized $1,945.3 million and $1,942.8 million of net revenues, respectively, of which $404.7 million and $363.3 million was included in the deferred revenues balance at December 31, 2022 and 2021, respectively. Our unfulfilled performance obligations, including deferred revenues and backlog, as of June 30, 2023 were $1,552.6 million. These performance obligations are expected to be fulfilled over the next six months to five years.

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets	6 Months Ended
Goodwill and Long-lived Assets	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The change in the carrying value of goodwill for the six months ended June 30, 2023, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2022 $ 109,480 $ 298,071 $ 407,551 Foreign currency translation adjustments 959 6,255 7,214 Balance as of June 30, 2023 $ 110,439 $ 304,326 $ 414,765 Intangible Long-Lived Assets Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of June 30, 2023 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of June 30, 2023 Existing technology 10 $ 112,051 $ (39,434) $ (4,328) $ 68,289 Customer relationships 10 21,500 (6,988) — 14,512 Trademarks and tradenames 10 17,200 (7,361) (4,122) 5,717 Patents 8 6,511 (5,685) — 826 $ 157,262 $ (59,468) $ (8,450) 89,344 Foreign currency translation adjustments (48) Total intangible assets, net 1 $ 89,296 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2022 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2022 Existing technology 10 $ 112,051 $ (33,537) $ (4,328) $ 74,186 Customer relationships 10 21,500 (5,913) — 15,587 Trademarks and tradenames 10 17,200 (6,442) (4,122) 6,636 Patents 8 6,511 (5,288) — 1,223 $ 157,262 $ (51,180) $ (8,450) 97,632 Foreign currency translation adjustments (1,912) Total intangible assets, net 1 $ 95,720 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2023 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2023 $ 8,213 2024 15,335 2025 14,959 2026 14,353 2027 11,992 Thereafter 24,492 Total $ 89,344 Amortization expense for the three months ended June 30, 2023 and 2022 was $4.1 million and $3.9 million, respectively, and amortization expense for both the six months ended June 30, 2023 and 2022 was $8.2 million.

Credit Facility

Credit Facility	6 Months Ended
Credit Facility	Jun. 30, 2023
Debt Disclosure [Abstract]
Credit Facility	Credit FacilityWe 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 June 30, 2023, 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	6 Months Ended
Legal Proceedings	Jun. 30, 2023
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. We believe these claims are without merit. We are currently unable to predict the outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss . Antitrust Class Actions On June 5, 2020, a dental practice named Simon and Simon, PC doing business as City Smiles brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of itself and a putative class of similarly situated practices seeking monetary damages and injunctive relief relating to 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. A jury trial is scheduled to begin in this matter on June 29, 2024. We believe the plaintiffs’ claims are without merit and we intend to vigorously defend ourselves. On May 3, 2021, an individual named Misty Snow brought an antitrust action in the U.S. District Court for the Northern District of California on behalf of herself and a putative class of similarly situated individuals seeking monetary damages and injunctive relief relating to our alleged market activities in alleged clear aligner and intraoral scanner markets based on Section 2 of the Sherman Act. Plaintiff filed an amended complaint on July 30, 2021 adding new plaintiffs and various state law claims. Plaintiffs filed a second amended complaint on October 21, 2021. On March 2, 2022, Plaintiffs filed a third amended complaint. On October 3, 2022, Plaintiffs filed a fourth amended complaint. On May 18, 2023, the court granted plaintiffs leave to file a fifth amended complaint. The amended complaints added allegations based on Section 1 of the Sherman Act. A jury trial is scheduled to begin in this matter on June 29, 2024 for issues related to Section 2 allegations. 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 deny SDC's allegations in the counterclaims and we intend to vigorously defend ourselves against them. The arbitration hearing on our claims and SDC’s first counterclaim was held on July 18-27, 2022 in Chicago, Illinois. 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. On December 2, 2022, SDC filed a motion to re-open the arbitrator’s interim award in Align’s favor. On March 3, 2023, the arbitrator denied SDC ’ s motion to re-open. On March 6, 2023, Align filed a petition to confirm the arbitrator ’ s interim award in the Superior Court for Santa Clara County. The arbitration hearing on SDC’s second counterclaim was held on February 21-23, 2023 in Chicago, Illinois. 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 May 30, 2023, Align filed a petition to confirm the final award in the Superior Court of Santa Clara County. Confirmation of the final award may be material to our results in the quarter reported. On June 16, 2023, SDC filed a petition to vacate the final award before the same court. On August 3, 2023, the Superior Court held arguments on Align's petition to confirm and SDC’s petition to vacate the final award in Align’s favor. Depending on how the Superior Court rules on those petitions, we anticipate recognizing the amount ultimately realizable following confirmation of the final award. 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	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Off-Balance Sheet Arrangements As of June 30, 2023, we had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in Note 8 “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. Indemnification Provisions In the normal course of business to facilitate transactions in our services and products, we indemnify certain parties: customers, vendors, lessors, and other parties with respect to certain matters, including, but not limited to, services to be provided by us and intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and our executive officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of June 30, 2023, we did not have any material indemnification claims that were probable or reasonably possible.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity As of June 30, 2023, the 2005 Incentive Plan, as amended, has a total reserve of 27,783,379 shares of which 2,734,533 shares are available for issuance. Summary of Stock-Based Compensation Expense The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of net revenues $ 1,901 $ 1,614 $ 3,708 $ 3,128 Selling, general and administrative 29,002 26,491 57,693 51,216 Research and development 6,957 6,035 14,194 11,417 Total stock-based compensation $ 37,860 $ 34,140 $ 75,595 $ 65,761 Restricted Stock Units (“RSUs”) The fair value of RSUs is based on our closing stock price on the date of grant. RSUs granted generally vest over a period of four years. A summary for the six months ended June 30, 2023 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, 2022 489 $ 427.23 Granted 502 316.03 Vested and released (191) 380.55 Forfeited (27) 394.18 Unvested as of June 30, 2023 773 $ 367.66 1.8 $ 273,404 As of June 30, 2023, we expect to recognize $224.7 million of total unamortized compensation costs, net of estimated forfeitures, related to RSUs over a weighted average period of 3.0 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 six months ended June 30, 2023: 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, 2022 144 $ 725.73 Granted 1 82 629.53 Vested and released (25) 392.67 Forfeited (41) 392.67 Unvested as of June 30, 2023 160 $ 812.75 1.9 $ 56,670 1 Includes MSUs vested during the period above 100% of the grant as actual shares released is based on Align ’ s stock performance over the vesting period. As of June 30, 2023, we expect to recognize $67.2 million of total unamortized compensation costs, net of estimated forfeitures, related to MSUs over a weighted average period of 1.9 years. Restricted Stock Units with Performance Conditions (“PSUs”) During the six months ended June 30, 2023, we did not grant any PSUs to any employees. As of June 30, 2023, we expect to recognize $0.6 million of total unamortized compensation costs, net of estimated forfeitures, related to PSUs over a weighted average term of 1.5 years. Total PSUs granted were 4,728 and the weighted average grant date fair value for the PSUs was $201.63. Employee Stock Purchase Plan As of June 30, 2023, we have 2,046,725 shares available for future issuance under our Amended and Restated 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”). The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended 2023 2022 Expected term (in years) 1.0 1.5 Expected volatility 56.7 % 48.6 % Risk-free interest rate 4.6 % 1.0 % Expected dividends — — Weighted average fair value at grant date $ 105.75 $ 196.97 As of June 30, 2023, we expect to recognize $14.5 million of total unamortized compensation costs related to future employee stock purchases over a weighted average period of 0.6 years.

Common Stock Repurchase Program

Common Stock Repurchase Programs	6 Months Ended
Common Stock Repurchase Programs	Jun. 30, 2023
Disclosure Common Stock Repurchase Program Additional Information [Abstract]
Common Stock Repurchase Programs	Common Stock Repurchase ProgramsIn 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”), none of which had been utilized as of June 30, 2023. 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 ASRs during the three months ended June 30, 2023. The following table summarizes the information regarding repurchases of our common stock under the ASRs: Agreement Repurchase Amount Paid Completion Total Shares Average Price per Share Q4 2022 May 2021 N/A 1 Q1 2023 136,448 $ 293.15 Q1 2023 May 2021 $ 250.0 Q1 2023 805,905 $ 310.21 1 During the fourth quarter of 2022, we entered into a $200.0 million ASR which was not completed as of December 31, 2022 . During the first quarter of 2023, we paid a final $40.0 million related to the $200.0 million ASR, closing this ASR with the final delivery of shares. As of June 30, 2023, $1.0 billion remains available for repurchases under the January 2023 Stock Repurchase Program.

Accounting for Income Taxes

Accounting for Income Taxes	6 Months Ended
Accounting for Income Taxes	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Accounting for Income Taxes	Accounting for Income Taxes Our provision for income taxes was $59.8 million and $60.8 million for the three months ended June 30, 2023 and 2022, respectively, representing effective tax rates of 34.8% and 35.0%, respectively. Our provision for income taxes was $106.6 million and $114.0 million for the six months June 30, 2023 and 2022, respectively, representing effective tax rates of 34.8% and 31.6%. Our effective tax rate differs from the statutory federal income tax rate of 21% for both the three and six months ended June 30, 2023 and 2022 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 $148.2 million and $141.6 million as of June 30, 2023 and December 31, 2022, 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 and six months ended June 30, 2023 .

Net Income Per Share

Net Income Per Share	6 Months Ended
Net Income Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Numerator: Net income $ 111,814 $ 112,800 $ 199,612 $ 247,098 Denominator: Weighted average common shares outstanding, basic 76,524 78,395 76,722 78,568 Dilutive effect of potential common stock 165 150 175 272 Total shares, diluted 76,689 78,545 76,897 78,840 Net income per share, basic $ 1.46 $ 1.44 $ 2.60 $ 3.15 Net income per share, diluted $ 1.46 $ 1.44 $ 2.60 $ 3.13 Anti-dilutive potential common shares 1 329 361 367 314 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
Supplemental Cash Flow Information	Jun. 30, 2023
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The supplemental cash flow information consists of the following (in thousands): Six Months Ended 2023 2022 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 20,648 $ 60,115 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,152 $ 15,048 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 21,346 $ 16,351

Segments and Geographical Infor

Segments and Geographical Information	6 Months Ended
Segments and Geographical Information	Jun. 30, 2023
Segment Reporting [Abstract]
Segments and Geographical Information	Segments and Geographical Information Segment Information We report segment information based on the management approach. The management approach designates the internal reporting used by our Chief Operating Decision Maker for decision making and performance assessment as the basis for determining our reportable segments. The performance measures of our reportable segments include net revenues, gross profit and income from operations. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. Certain operating expenses are attributable to operating segments and each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Costs not specifically allocated to segment income from operations include various corporate expenses such as stock-based compensation and costs related to IT, facilities, human resources, accounting and finance, legal and regulatory, and other separately managed general and administrative costs outside the operating segments and restructuring costs. We group our operations into two reportable segments (i) Clear Aligner segment and (ii) Imaging Systems and CAD/CAM services (“Systems and Services”) segment. Summarized financial information by segment is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net revenues Clear Aligner $ 832,674 $ 798,398 $ 1,622,478 $ 1,608,094 Systems and Services 169,499 171,155 322,842 334,678 Total net revenues $ 1,002,173 $ 969,553 $ 1,945,320 $ 1,942,772 Gross profit Clear Aligner $ 603,251 $ 585,245 $ 1,169,390 $ 1,190,941 Systems and Services 110,358 102,314 204,873 205,964 Total gross profit $ 713,609 $ 687,559 $ 1,374,263 $ 1,396,905 Income from operations Clear Aligner $ 306,093 $ 307,209 $ 583,614 $ 619,928 Systems and Services 52,049 45,599 87,625 96,398 Unallocated corporate expenses (186,211) (164,612) (365,792) (330,048) Total income from operations $ 171,931 $ 188,196 $ 305,447 $ 386,278 Stock-based compensation Clear Aligner $ 4,491 $ 3,001 $ 9,145 $ 5,855 Systems and Services 263 236 584 450 Unallocated corporate expenses 33,106 30,903 65,866 59,456 Total stock-based compensation $ 37,860 $ 34,140 $ 75,595 $ 65,761 Depreciation and amortization Clear Aligner $ 16,590 $ 14,029 $ 32,988 $ 27,796 Systems and Services 7,743 6,776 15,889 13,698 Unallocated corporate expenses 11,486 9,476 22,762 18,413 Total depreciation and amortization $ 35,819 $ 30,281 $ 71,639 $ 59,907 The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Total segment income from operations $ 358,142 $ 352,808 $ 671,239 $ 716,326 Unallocated corporate expenses (186,211) (164,612) (365,792) (330,048) Total income from operations 171,931 188,196 305,447 386,278 Interest income 4,421 245 6,758 922 Other income (expense), net (4,763) (14,832) (5,992) (26,105) Net income before provision for income taxes $ 171,589 $ 173,609 $ 306,213 $ 361,095 Geographical Information Net revenues are presented below by geographic area (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net revenues 1 : U.S. $ 429,598 $ 430,053 $ 840,736 $ 850,973 Switzerland 341,006 330,351 654,137 662,090 Other International 231,569 209,149 450,447 429,709 Total net revenues $ 1,002,173 $ 969,553 $ 1,945,320 $ 1,942,772 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): June 30, December 31, 2022 Long-lived assets 1 : Switzerland $ 566,755 $ 532,921 U.S. 208,822 214,804 Other International 2 629,346 603,010 Total long-lived assets $ 1,404,923 $ 1,350,735 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets. 2 Certain prior period immaterial amounts have been reclassified to conform to current presentation.

Restructuring and Other Charges

Restructuring and Other Charges	6 Months Ended
Restructuring and Other Charges	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	Restructuring and Other Charges During the fourth quarter of 2022, we initiated a restructuring plan to increase efficiencies across the organization which was completed during the first half of 2023. During fiscal 2022, we incurred approximately $10.2 million in restructuring expenses, of which $3.9 million remained unpaid and was included in Accrued liabilities as of December 31, 2022. During the first quarter of 2023, we paid $3.7 million, and recorded incremental restructuring expenses of approximately $0.1 million. The remaining $0.3 million balance as of March 31, 2023 was paid during the three months ended June 30, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 111,814	$ 112,800	$ 199,612	$ 247,098

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
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)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Align Technology, Inc. (“we”, “our”, "Company", or “Align”) on a consistent basis with the audited Consolidated Financial Statements for the year ended December 31, 2022, and contain all adjustments, including normal recurring adjustments, necessary to fairly state the information set forth herein. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosures necessary to present the unaudited Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S.”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, useful lives of intangible assets and property and equipment, long-lived assets and goodwill, income taxes, contingent liabilities, the fair values of financial instruments, stock-based compensation and the valuation of investments in privately held companies, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Certain Risk and Uncertainties	Certain Risks and Uncertainties Our business has been materially impacted by fluctuations in macroeconomic conditions, which have been exacerbated by ongoing geopolitical issues. While the situation is highly uncertain and evolving, we have been and continue to be impacted by factors such as inflation, supply chain challenges, rising interest rates, volatilities in the financial markets, foreign currency exchange rate fluctuations, impacts on consumer confidence and purchasing power, and global recession concerns which could further subject our business to materially adverse consequences should any portion of its impacts become prolonged or escalate beyond its current scope. Additionally, we could also be materially adversely affected by uncertain or reduced demand, labor shortages, delays in collection of outstanding receivables and the impact of any initiatives or programs that we may undertake to address financial and operational challenges faced by our customers.
Recent Accounting Pronouncements	Recent Accounting Pronouncements (i) Recent Accounting Pronouncements Not Yet Effective We continue to monitor new accounting pronouncements issued by the Financial Accounting Standards Board ( “ FASB ” ) and do not believe any of the recently issued accounting pronouncements will have a material impact on our consolidated financial statements or related disclosures.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
Financial Instruments (Tables)	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Cash and Cash Equivalents	The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in thousands): Reported as: June 30, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 759,407 $ — $ — $ 759,407 $ 759,407 $ — $ — Money market funds 192,549 — — 192,549 192,549 — — Corporate bonds 59,703 — (1,740) 57,963 — 39,145 18,818 U.S. government treasury bonds 14,054 — (325) 13,729 — 9,096 4,633 Asset-backed securities 3,600 — (13) 3,587 — 2,012 1,575 Municipal bonds 1,437 — (18) 1,419 — 1,419 — U.S. government agency bonds 5,214 — (84) 5,130 — 4,133 997 Total $ 1,035,964 $ — $ (2,180) $ 1,033,784 $ 951,956 $ 55,805 $ 26,023 Reported as: December 31, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 712,921 $ — $ — $ 712,921 $ 712,921 $ — $ — Money market funds 229,129 — — 229,129 229,129 — — Corporate bonds 69,390 — (2,915) 66,475 — 36,510 29,965 U.S. government treasury bonds 20,559 — (549) 20,010 — 15,404 4,606 Asset-backed securities 4,514 1 (37) 4,478 — 2,909 1,569 Municipal bonds 3,447 — (61) 3,386 — 2,711 675 U.S. government agency bonds 5,231 1 (69) 5,163 — — 5,163 Total $ 1,045,191 $ 2 $ (3,631) $ 1,041,562 $ 942,050 $ 57,534 $ 41,978
Marketable Securities	The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in thousands): Reported as: June 30, 2023 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 759,407 $ — $ — $ 759,407 $ 759,407 $ — $ — Money market funds 192,549 — — 192,549 192,549 — — Corporate bonds 59,703 — (1,740) 57,963 — 39,145 18,818 U.S. government treasury bonds 14,054 — (325) 13,729 — 9,096 4,633 Asset-backed securities 3,600 — (13) 3,587 — 2,012 1,575 Municipal bonds 1,437 — (18) 1,419 — 1,419 — U.S. government agency bonds 5,214 — (84) 5,130 — 4,133 997 Total $ 1,035,964 $ — $ (2,180) $ 1,033,784 $ 951,956 $ 55,805 $ 26,023 Reported as: December 31, 2022 Amortized Gross Gross Fair Value Cash and Cash Equivalents Marketable securities, short-term Marketable securities, long-term Cash $ 712,921 $ — $ — $ 712,921 $ 712,921 $ — $ — Money market funds 229,129 — — 229,129 229,129 — — Corporate bonds 69,390 — (2,915) 66,475 — 36,510 29,965 U.S. government treasury bonds 20,559 — (549) 20,010 — 15,404 4,606 Asset-backed securities 4,514 1 (37) 4,478 — 2,909 1,569 Municipal bonds 3,447 — (61) 3,386 — 2,711 675 U.S. government agency bonds 5,231 1 (69) 5,163 — — 5,163 Total $ 1,045,191 $ 2 $ (3,631) $ 1,041,562 $ 942,050 $ 57,534 $ 41,978
Contractual Maturity of Marketable Securities	The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Due in 1 year or less $ 50,644 $ 51,037 Due in 1 year through 5 years 31,184 48,475 Total $ 81,828 $ 99,512
Unrealized Losses for Investments in a Continuous Unrealized Loss Position	The following tables summarize the gross unrealized losses as of June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands): As of June 30, 2023 Less than 12 months 12 Months of Greater Total June 30, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 1,514 $ (15) $ 56,155 $ (1,725) $ 57,669 $ (1,740) U.S. government treasury bonds 1,986 (32) 11,743 (293) 13,729 (325) Asset-backed securities 2,565 (5) 1,022 (8) 3,587 (13) Municipal bonds — — 685 (18) 685 (18) U.S. government agency bonds 3,980 (33) 1,150 (51) 5,130 (84) Total $ 10,045 $ (85) $ 70,755 $ (2,095) $ 80,800 $ (2,180) As of December 31, 2022 Less than 12 months 12 Months of Greater Total December 31, 2022 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $ 10,639 $ (440) $ 54,634 $ (2,475) $ 65,273 $ (2,915) U.S. government treasury bonds 5,262 (177) 14,748 (372) 20,010 (549) Asset-backed securities 2,636 (17) 1,275 (20) 3,911 (37) Municipal bonds — — 2,412 (61) 2,412 (61) U.S. government agency bonds 3,017 (5) 1,136 (64) 4,153 (69) Total $ 21,554 $ (639) $ 74,205 $ (2,992) $ 95,759 $ (3,631)
Financial Assets Measured At Fair Value On A Recurring Basis	The following tables summarize our financial assets measured at fair value as of June 30, 2023 and December 31, 2022 (in thousands): Description Balance as of Level 1 Level 2 Cash equivalents: Money market funds $ 192,549 $ 192,549 $ — Short-term investments: U.S. government agency bonds 4,133 — 4,133 U.S. government treasury bonds 9,096 9,096 — Corporate bonds 39,145 — 39,145 Municipal bonds 1,419 — 1,419 Asset-backed securities 2,012 — 2,012 Long-term investments: U.S. government treasury bonds 4,633 4,633 — Corporate bonds 18,818 — 18,818 U.S. government agency bonds 997 — 997 Asset-backed securities 1,575 — 1,575 $ 274,377 $ 206,278 $ 68,099 Description Balance as of December 31, 2022 Level 1 Level 2 Cash equivalents: Money market funds $ 229,129 $ 229,129 $ — Short-term investments: U.S. government treasury bonds 15,404 15,404 — Corporate bonds 36,510 — 36,510 Municipal bonds 2,711 — 2,711 Asset-backed securities 2,909 — 2,909 Long-term investments: U.S. government treasury bonds 4,606 4,606 — Corporate bonds 29,965 — 29,965 Municipal bonds 675 — 675 U.S. government agency bonds 5,163 — 5,163 Asset-backed securities 1,569 — 1,569 $ 328,641 $ 249,139 $ 79,502
Schedule of Notional Amounts of Outstanding Derivative Positions	The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Local Currency Amount Notional Contract Amount (USD) Euro €218,700 $ 238,786 Canadian Dollar C$106,000 79,959 Polish Zloty PLN279,700 68,452 Chinese Yuan ¥408,000 56,266 British Pound £43,900 55,704 Japanese Yen ¥5,340,000 37,136 Swiss Franc CHF30,000 33,526 Brazilian Real R$143,300 29,532 Mexican Peso M$230,000 13,491 Israeli Shekel ILS49,380 13,300 New Zealand Dollar NZ$9,900 6,046 Czech Koruna Kč60,000 2,750 New Taiwan Dollar NT$82,000 2,629 Australian Dollar A$3,460 $ 2,302 Korean Won ₩1,800,000 1,365 $ 641,244 December 31, 2022 Local Currency Amount Notional Contract Amount (USD) Euro €186,900 $ 200,010 Polish Zloty PLN365,988 83,307 Canadian Dollar C$109,000 80,514 Chinese Yuan ¥471,000 68,223 British Pound £41,200 49,677 Japanese Yen ¥6,200,000 47,196 Israeli Shekel ILS110,030 31,383 Swiss Franc CHF25,000 27,165 Brazilian Real R$141,200 26,839 Mexican Peso M$230,000 11,746 New Zealand Dollar NZ$6,000 3,806 Australian Dollar A$4,000 2,721 Czech Koruna Kč56,000 2,469 New Taiwan Dollar NT$60,000 1,959 $ 637,015

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
Balance Sheet Components (Tables)	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): June 30, December 31, Raw materials $ 148,793 $ 172,758 Work in process 100,468 96,558 Finished goods 63,475 69,436 Total inventories $ 312,736 $ 338,752
Schedule of Prepaid Expense and Other Assets	Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, Value added tax receivables $ 137,248 $ 140,484 Prepaid expenses 76,608 69,124 Other current assets 22,708 16,762 Total prepaid expenses and other current assets $ 236,564 $ 226,370
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and benefits $ 211,889 $ 149,508 Accrued income taxes 147,618 74,323 Accrued expenses 63,004 64,341 Accrued sales and marketing expenses 43,628 36,407 Current operating lease liabilities 28,770 26,574 Accrued property, plant and equipment 11,992 19,922 Other accrued liabilities 93,262 83,299 Total accrued liabilities $ 600,163 $ 454,374
Schedule of Warranty Accrual	Accrued warranty, which is included in the "Other accrued liabilities" category of the accrued liabilities table above, consists of the following activity (in thousands): Six Months Ended 2023 2022 Balance at beginning of period $ 17,873 $ 16,169 Charged to cost of net revenues 9,421 7,660 Actual warranty expenditures (6,797) (7,334) Balance at end of period $ 20,497 $ 16,495
Schedule of Deferred Revenues	Deferred revenues consist of the following (in thousands): June 30, December 31, Deferred revenues - current $ 1,396,747 $ 1,343,643 Deferred revenues - long-term 1 $ 148,277 $ 160,662 1 Included in Other long-term liabilities within our Condensed Consolidated Balance Sheet

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
Goodwill and Intangible Assets (Tables)	Jun. 30, 2023
Notes To Financial Statements [Abstract]
Summary of Goodwill by Reportable Segment	The change in the carrying value of goodwill for the six months ended June 30, 2023, categorized by reportable segments, is as follows (in thousands): Clear Aligner Systems and Services Total Balance as of December 31, 2022 $ 109,480 $ 298,071 $ 407,551 Foreign currency translation adjustments 959 6,255 7,214 Balance as of June 30, 2023 $ 110,439 $ 304,326 $ 414,765
Schedule of Amortized Intangible Assets	Acquired intangible long-lived assets were as follows, excluding intangibles that were fully amortized (in thousands): Weighted Average Amortization Period Gross Carrying Amount as of June 30, 2023 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of June 30, 2023 Existing technology 10 $ 112,051 $ (39,434) $ (4,328) $ 68,289 Customer relationships 10 21,500 (6,988) — 14,512 Trademarks and tradenames 10 17,200 (7,361) (4,122) 5,717 Patents 8 6,511 (5,685) — 826 $ 157,262 $ (59,468) $ (8,450) 89,344 Foreign currency translation adjustments (48) Total intangible assets, net 1 $ 89,296 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships. Weighted Average Amortization Period Gross Carrying Amount as of December 31, 2022 Accumulated Amortization Accumulated Impairment Loss Net Carrying Value as of December 31, 2022 Existing technology 10 $ 112,051 $ (33,537) $ (4,328) $ 74,186 Customer relationships 10 21,500 (5,913) — 15,587 Trademarks and tradenames 10 17,200 (6,442) (4,122) 6,636 Patents 8 6,511 (5,288) — 1,223 $ 157,262 $ (51,180) $ (8,450) 97,632 Foreign currency translation adjustments (1,912) Total intangible assets, net 1 $ 95,720 1 Also includes $33.5 million of fully amortized intangible assets related to customer relationships.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The total estimated annual future amortization expense for these acquired intangible assets as of June 30, 2023 is as follows (in thousands): Fiscal Year Ending December 31, Amortization Remainder of 2023 $ 8,213 2024 15,335 2025 14,959 2026 14,353 2027 11,992 Thereafter 24,492 Total $ 89,344

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Stock-based Compensation Expense	The stock-based compensation related to our stock-based awards and employee stock purchase plan for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Cost of net revenues $ 1,901 $ 1,614 $ 3,708 $ 3,128 Selling, general and administrative 29,002 26,491 57,693 51,216 Research and development 6,957 6,035 14,194 11,417 Total stock-based compensation $ 37,860 $ 34,140 $ 75,595 $ 65,761
Summary Of Restricted Stock Units	A summary for the six months ended June 30, 2023 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, 2022 489 $ 427.23 Granted 502 316.03 Vested and released (191) 380.55 Forfeited (27) 394.18 Unvested as of June 30, 2023 773 $ 367.66 1.8 $ 273,404
Summary Of Market-performance Based Restricted Stock Units	The following table summarizes the MSU performance activity for the six months ended June 30, 2023: 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, 2022 144 $ 725.73 Granted 1 82 629.53 Vested and released (25) 392.67 Forfeited (41) 392.67 Unvested as of June 30, 2023 160 $ 812.75 1.9 $ 56,670
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended 2023 2022 Expected term (in years) 1.0 1.5 Expected volatility 56.7 % 48.6 % Risk-free interest rate 4.6 % 1.0 % Expected dividends — — Weighted average fair value at grant date $ 105.75 $ 196.97

Common Stock Repurchase Progr_2

Common Stock Repurchase Programs (Tables)	6 Months Ended
Common Stock Repurchase Programs (Tables)	Jun. 30, 2023
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 N/A 1 Q1 2023 136,448 $ 293.15 Q1 2023 May 2021 $ 250.0 Q1 2023 805,905 $ 310.21

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share Basic And Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Numerator: Net income $ 111,814 $ 112,800 $ 199,612 $ 247,098 Denominator: Weighted average common shares outstanding, basic 76,524 78,395 76,722 78,568 Dilutive effect of potential common stock 165 150 175 272 Total shares, diluted 76,689 78,545 76,897 78,840 Net income per share, basic $ 1.46 $ 1.44 $ 2.60 $ 3.15 Net income per share, diluted $ 1.46 $ 1.44 $ 2.60 $ 3.13 Anti-dilutive potential common shares 1 329 361 367 314 1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
Supplemental Cash Flow Information (Tables)	Jun. 30, 2023
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The supplemental cash flow information consists of the following (in thousands): Six Months Ended 2023 2022 Non-cash investing and financing activities: Acquisition of property, plant and equipment in accounts payable and accrued liabilities $ 20,648 $ 60,115 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,152 $ 15,048 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 21,346 $ 16,351

Segments and Geographical Inf_2

Segments and Geographical Information (Tables)	6 Months Ended
Segments and Geographical Information (Tables)	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information by segment is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net revenues Clear Aligner $ 832,674 $ 798,398 $ 1,622,478 $ 1,608,094 Systems and Services 169,499 171,155 322,842 334,678 Total net revenues $ 1,002,173 $ 969,553 $ 1,945,320 $ 1,942,772 Gross profit Clear Aligner $ 603,251 $ 585,245 $ 1,169,390 $ 1,190,941 Systems and Services 110,358 102,314 204,873 205,964 Total gross profit $ 713,609 $ 687,559 $ 1,374,263 $ 1,396,905 Income from operations Clear Aligner $ 306,093 $ 307,209 $ 583,614 $ 619,928 Systems and Services 52,049 45,599 87,625 96,398 Unallocated corporate expenses (186,211) (164,612) (365,792) (330,048) Total income from operations $ 171,931 $ 188,196 $ 305,447 $ 386,278 Stock-based compensation Clear Aligner $ 4,491 $ 3,001 $ 9,145 $ 5,855 Systems and Services 263 236 584 450 Unallocated corporate expenses 33,106 30,903 65,866 59,456 Total stock-based compensation $ 37,860 $ 34,140 $ 75,595 $ 65,761 Depreciation and amortization Clear Aligner $ 16,590 $ 14,029 $ 32,988 $ 27,796 Systems and Services 7,743 6,776 15,889 13,698 Unallocated corporate expenses 11,486 9,476 22,762 18,413 Total depreciation and amortization $ 35,819 $ 30,281 $ 71,639 $ 59,907 The following table reconciles total segment income from operations in the table above to net income before provision for income taxes (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Total segment income from operations $ 358,142 $ 352,808 $ 671,239 $ 716,326 Unallocated corporate expenses (186,211) (164,612) (365,792) (330,048) Total income from operations 171,931 188,196 305,447 386,278 Interest income 4,421 245 6,758 922 Other income (expense), net (4,763) (14,832) (5,992) (26,105) Net income before provision for income taxes $ 171,589 $ 173,609 $ 306,213 $ 361,095
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	Net revenues are presented below by geographic area (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net revenues 1 : U.S. $ 429,598 $ 430,053 $ 840,736 $ 850,973 Switzerland 341,006 330,351 654,137 662,090 Other International 231,569 209,149 450,447 429,709 Total net revenues $ 1,002,173 $ 969,553 $ 1,945,320 $ 1,942,772 1 Net revenues are attributed to countries based on the location of where revenues are recognized by our legal entities. Tangible long-lived assets, which includes Property, plant and equipment, net, and Operating lease right-of-use assets, net, are presented below by geographic area (in thousands): June 30, December 31, 2022 Long-lived assets 1 : Switzerland $ 566,755 $ 532,921 U.S. 208,822 214,804 Other International 2 629,346 603,010 Total long-lived assets $ 1,404,923 $ 1,350,735 1 Long-lived assets are attributed to countries based on the location of our entity that owns or leases the assets. 2 Certain prior period immaterial amounts have been reclassified to conform to current presentation.

Financial Instruments - Cash, C

Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost
Cash, cash equivalents and marketable securities	$ 1,035,964	$ 1,045,191
Gross Unrealized Gains
Cash, cash equivalents and marketable securities	0	2
Gross Unrealized Losses
Cash, cash equivalents and marketable securities	(2,180)	(3,631)
Fair Value
Cash and cash equivalents	951,956	942,050
Marketable securities	81,828	99,512
Cash, cash equivalents and marketable securities	1,033,784	1,041,562
Cash
Amortized Cost
Cash and cash equivalents	759,407	712,921
Fair Value
Cash and cash equivalents	759,407	712,921
Cash and Cash Equivalents
Fair Value
Cash, cash equivalents and marketable securities	951,956	942,050
Cash and Cash Equivalents \| Cash
Fair Value
Cash and cash equivalents	759,407	712,921
Marketable securities, short-term
Fair Value
Cash, cash equivalents and marketable securities	55,805	57,534
Marketable securities, long-term
Fair Value
Cash, cash equivalents and marketable securities	26,023	41,978
Money market funds
Amortized Cost
Cash and cash equivalents	192,549	229,129
Gross Unrealized Losses
Cash and cash equivalents		0
Fair Value
Cash and cash equivalents	192,549	229,129
Money market funds \| Cash and Cash Equivalents
Fair Value
Cash and cash equivalents	192,549	229,129
Corporate bonds
Amortized Cost
Marketable securities	59,703	69,390
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(1,740)	(2,915)
Fair Value
Marketable securities	57,963	66,475
Corporate bonds \| Cash and Cash Equivalents
Fair Value
Marketable securities		0
Corporate bonds \| Marketable securities, short-term
Fair Value
Marketable securities	39,145	36,510
Corporate bonds \| Marketable securities, long-term
Fair Value
Marketable securities	18,818	29,965
U.S. government treasury bonds
Amortized Cost
Marketable securities	14,054	20,559
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(325)	(549)
Fair Value
Marketable securities	13,729	20,010
U.S. government treasury bonds \| Marketable securities, short-term
Fair Value
Marketable securities	9,096	15,404
U.S. government treasury bonds \| Marketable securities, long-term
Fair Value
Marketable securities	4,633	4,606
Asset-backed securities
Amortized Cost
Marketable securities	3,600	4,514
Gross Unrealized Gains
Marketable securities	0	1
Gross Unrealized Losses
Marketable securities	(13)	(37)
Fair Value
Marketable securities	3,587	4,478
Asset-backed securities \| Marketable securities, short-term
Fair Value
Marketable securities	2,012	2,909
Asset-backed securities \| Marketable securities, long-term
Fair Value
Marketable securities	1,575	1,569
Municipal bonds
Amortized Cost
Marketable securities	1,437	3,447
Gross Unrealized Gains
Marketable securities	0	0
Gross Unrealized Losses
Marketable securities	(18)	(61)
Fair Value
Marketable securities	1,419	3,386
Municipal bonds \| Cash and Cash Equivalents
Fair Value
Marketable securities		0
Municipal bonds \| Marketable securities, short-term
Fair Value
Marketable securities	1,419	2,711
Municipal bonds \| Marketable securities, long-term
Fair Value
Marketable securities	0	675
U.S. government agency bonds
Amortized Cost
Marketable securities	5,214	5,231
Gross Unrealized Gains
Marketable securities	0	1
Gross Unrealized Losses
Marketable securities	(84)	(69)
Fair Value
Marketable securities	5,130	5,163
U.S. government agency bonds \| Marketable securities, long-term
Fair Value
Marketable securities	$ 997	$ 5,163

Financial Instruments - Contrac

Financial Instruments - Contractual Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 50,644	$ 51,037
Due in 1 year through 5 years	31,184	48,475
Total	$ 81,828	$ 99,512

Financial Instruments - Unreali

Financial Instruments - Unrealized Losses for Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 10,045	$ 21,554
12 months or greater, fair value	70,755	74,205
Fair value	80,800	95,759
Less than 12 months, unrealized loss	(85)	(639)
12 months or greater, unrealized loss	(2,095)	(2,992)
Unrealized loss	(2,180)	(3,631)
Corporate bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1,514	10,639
12 months or greater, fair value	56,155	54,634
Fair value	57,669	65,273
Less than 12 months, unrealized loss	(15)	(440)
12 months or greater, unrealized loss	(1,725)	(2,475)
Unrealized loss	(1,740)	(2,915)
U.S. government treasury bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1,986	5,262
12 months or greater, fair value	11,743	14,748
Fair value	13,729	20,010
Less than 12 months, unrealized loss	(32)	(177)
12 months or greater, unrealized loss	(293)	(372)
Unrealized loss	(325)	(549)
Asset-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	2,565	2,636
12 months or greater, fair value	1,022	1,275
Fair value	3,587	3,911
Less than 12 months, unrealized loss	(5)	(17)
12 months or greater, unrealized loss	(8)	(20)
Unrealized loss	(13)	(37)
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	685	2,412
Fair value	685	2,412
Less than 12 months, unrealized loss	0	0
12 months or greater, unrealized loss	(18)	(61)
Unrealized loss	(18)	(61)
U.S. government agency bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, fair value	3,980	3,017
12 months or greater, fair value	1,150	1,136
Fair value	5,130	4,153
Less than 12 months, unrealized loss	(33)	(5)
12 months or greater, unrealized loss	(51)	(64)
Unrealized loss	$ (84)	$ (69)

Financial Instruments - Fair Va

Financial Instruments - Fair Value Measured On A Recurring Basis (Detail) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	$ 55,805,000	$ 57,534,000
Long-term investments	26,023,000	41,978,000
Assets measured at fair value	274,377,000	328,641,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	206,278,000	249,139,000
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	68,099,000	79,502,000
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	4,133,000
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 1 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 2 \| Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	4,133,000
U.S. government treasury bonds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	9,096,000	15,404,000
Long-term investments	4,633,000	4,606,000
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	9,096,000	15,404,000
Long-term investments	4,633,000	4,606,000
U.S. government treasury bonds \| Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Corporate bonds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	39,145,000	36,510,000
Long-term investments	18,818,000	29,965,000
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	39,145,000	36,510,000
Long-term investments	18,818,000	29,965,000
Municipal bonds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	1,419,000	2,711,000
Long-term investments		675,000
Municipal 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
Municipal bonds \| Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	1,419,000	2,711,000
Long-term investments		675,000
U.S. government agency bonds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	997,000	5,163,000
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	0	0
U.S. government agency bonds \| Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term investments	997,000	5,163,000
Asset-backed securities \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	2,012,000	2,909,000
Long-term investments	1,575,000	1,569,000
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0	0
Asset-backed securities \| Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Short-term investments	2,012,000	2,909,000
Long-term investments	1,575,000	1,569,000
Money market funds \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	192,549,000	229,129,000
Money market funds \| Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents	192,549,000	229,129,000
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		6 Months Ended
	Apr. 24, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Marketable Securities and Fair Value Measurements [Abstract]
Accounts receivable sold		$ 8,200		$ 16,200
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payments to acquire equity method investments				75,000	$ 0
Heartland
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest	5%
Payments to acquire equity method investments	$ 75,000
Equity method investments		75,000		75,000
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) on derivatives		1,100	$ 10,800	(5,300)	$ 9,200
Fair value of derivative asset		$ 0		$ 0		$ 0

Financial Instruments - Derivat

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

Jun. 30, 2023 EUR (€)

Jun. 30, 2023 USD ($)

Jun. 30, 2023 CAD ($)

Jun. 30, 2023 PLN (zł)

Jun. 30, 2023 CNY (¥)

Jun. 30, 2023 GBP (£)

Jun. 30, 2023 JPY (¥)

Jun. 30, 2023 CHF (SFr)

Jun. 30, 2023 BRL (R$)

Jun. 30, 2023 MXN ($)

Jun. 30, 2023 ILS (₪)

Jun. 30, 2023 NZD ($)

Jun. 30, 2023 CZK (Kč)

Jun. 30, 2023 TWD ($)

Jun. 30, 2023 AUD ($)

Jun. 30, 2023 KRW (₩)

Dec. 31, 2022 EUR (€)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 CAD ($)

Dec. 31, 2022 PLN (zł)

Dec. 31, 2022 CNY (¥)

Dec. 31, 2022 GBP (£)

Dec. 31, 2022 JPY (¥)

Dec. 31, 2022 CHF (SFr)

Dec. 31, 2022 BRL (R$)

Dec. 31, 2022 MXN ($)

Dec. 31, 2022 ILS (₪)

Dec. 31, 2022 NZD ($)

Dec. 31, 2022 CZK (Kč)

Dec. 31, 2022 TWD ($)

Dec. 31, 2022 AUD ($)

Derivative [Line Items]

Notional amount

$ 641,244

$ 637,015

Euro

Derivative [Line Items]

Notional amount

€ 218,700

238,786

€ 186,900

200,010

Canadian Dollar

Derivative [Line Items]

Notional amount

79,959

$ 106,000

80,514

$ 109,000

Polish Zloty

Derivative [Line Items]

Notional amount

68,452

zł 279,700

83,307

zł 365,988

Chinese Yuan

Derivative [Line Items]

Notional amount

56,266

¥ 408,000

68,223

¥ 471,000

British Pound

Derivative [Line Items]

Notional amount

55,704

£ 43,900

49,677

£ 41,200

Japanese Yen

Derivative [Line Items]

Notional amount

37,136

¥ 5,340,000

47,196

¥ 6,200,000

Swiss Franc

Derivative [Line Items]

Notional amount

33,526

SFr 30,000

27,165

SFr 25,000

Brazilian Real

Derivative [Line Items]

Notional amount

29,532

R$ 143300

26,839

R$ 141200

Mexican Peso

Derivative [Line Items]

Notional amount

13,491

$ 230,000

11,746

$ 230,000

Israeli Shekel

Derivative [Line Items]

Notional amount

13,300

₪ 49,380

31,383

₪ 110,030

New Zealand Dollar

Derivative [Line Items]

Notional amount

6,046

$ 9,900

3,806

$ 6,000

Czech Koruna

Derivative [Line Items]

Notional amount

2,750

Kč 60,000

2,469

Kč 56,000

New Taiwan Dollar

Derivative [Line Items]

Notional amount

2,629

$ 82,000

1,959

$ 60,000

Australian Dollar

Derivative [Line Items]

Notional amount

2,302

$ 3,460

$ 2,721

$ 4,000

Korean Won

Derivative [Line Items]

Notional amount

$ 1,365

₩ 1,800,000

Balance Sheet Components Invent

Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notes To Financial Statements [Abstract]
Raw materials	$ 148,793	$ 172,758
Work in process	100,468	96,558
Finished goods	63,475	69,436
Total inventories	$ 312,736	$ 338,752

Balance Sheet Components Prepai

Balance Sheet Components Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notes To Financial Statements [Abstract]
Value added tax receivables	$ 137,248	$ 140,484
Prepaid expenses	76,608	69,124
Other current assets	22,708	16,762
Total prepaid expenses and other current assets	$ 236,564	$ 226,370

Balance Sheet Components Accrue

Balance Sheet Components Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notes To Financial Statements [Abstract]
Accrued payroll and benefits	$ 211,889	$ 149,508
Accrued income taxes	147,618	74,323
Accrued expenses	63,004	64,341
Accrued sales and marketing expenses	43,628	36,407
Current operating lease liabilities	28,770	26,574
Accrued property, plant and equipment	11,992	19,922
Other accrued liabilities	93,262	83,299
Accrued liabilities	$ 600,163	$ 454,374

Balance Sheet Components Warran

Balance Sheet Components Warranty Accrual Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 17,873	$ 16,169
Charged to cost of net revenues	9,421	7,660
Actual warranty expenditures	(6,797)	(7,334)
Balance at end of period	$ 20,497	$ 16,495

Balance Sheet Components Deferr

Balance Sheet Components Deferred Revenues (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notes To Financial Statements [Abstract]
Deferred revenues - current	$ 1,396,747	$ 1,343,643
Deferred revenues - long-term	$ 148,277	$ 160,662

Balance Sheet Components Narrat

Balance Sheet Components Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Balance Sheet Statements, Captions [Line Items]
Net revenues	$ 1,002,173	$ 969,553	$ 1,945,320	$ 1,942,772
Revenue recognized included in deferred revenue	199,000	$ 178,400	404,700	$ 363,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation	$ 1,552,600		$ 1,552,600
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation, period of recognition	6 months		6 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Condensed Balance Sheet Statements, Captions [Line Items]
Revenue, remaining performance obligation, period of recognition	5 years		5 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Change in Carrying Value of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Balance as of December 31, 2022	$ 407,551
Foreign currency translation adjustments	7,214
Balance as of June 30, 2023	414,765
Clear Aligner
Goodwill [Roll Forward]
Balance as of December 31, 2022	109,480
Foreign currency translation adjustments	959
Balance as of June 30, 2023	110,439
Systems and Services
Goodwill [Roll Forward]
Balance as of December 31, 2022	298,071
Foreign currency translation adjustments	6,255
Balance as of June 30, 2023	$ 304,326

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount		$ 157,262	$ 157,262
Accumulated Amortization		(59,468)	(51,180)
Accumulated Impairment Loss		(8,450)	(8,450)
Net carrying value		89,344	97,632
Foreign currency translation adjustments		(48)	(1,912)
Total intangible assets		$ 89,296	95,720
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount		$ 112,051	112,051
Accumulated Amortization		(39,434)	(33,537)
Accumulated Impairment Loss		(4,328)	(4,328)
Net carrying value		$ 68,289	74,186
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount		$ 21,500	21,500
Accumulated Amortization		(6,988)	(5,913)
Accumulated Impairment Loss		0	0
Net carrying value		14,512	15,587
Fully amortized intangible assets		$ 33,500	33,500
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	10 years	10 years
Gross carrying amount		$ 17,200	17,200
Accumulated Amortization		(7,361)	(6,442)
Accumulated Impairment Loss		(4,122)	(4,122)
Net carrying value		$ 5,717	6,636
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	8 years	8 years
Gross carrying amount		$ 6,511	6,511
Accumulated Amortization		(5,685)	(5,288)
Accumulated Impairment Loss		0	0
Net carrying value		$ 826	$ 1,223

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Total Estimated Annual Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Disclosure Total Estimated Annual Future Amortization Expense For Acquired Intangible Assets [Abstract]
Remainder of 2023	$ 8,213
2024	15,335
2025	14,959
2026	14,353
2027	11,992
Thereafter	24,492
Net carrying value	$ 89,344	$ 97,632

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 4.1	$ 3.9	$ 8.2	$ 8.2

Credit Facility - Additional In

Credit Facility - Additional Information (Details) - 2022 Credit Facility	Jun. 30, 2023 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 - Narrative (

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

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Incentive Plan 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance	27,783,379
Shares available for issuance	2,734,533
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	2,046,725
Total unamortized compensation cost	$ 14.5
Weighted average period of total unamortized cost (in years)	7 months 6 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Total unamortized compensation cost	$ 224.7
Weighted average period of total unamortized cost (in years)	3 years
Total granted (in shares)	773,000	489,000
Weighted average grant date fair value (in usd per share)	$ 367.66	$ 427.23
Market Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Total unamortized compensation cost	$ 67.2
Weighted average period of total unamortized cost (in years)	1 year 10 months 24 days
Maximum percentage of market-performance based restricted stock units eligible to vest over the vesting period	250%
Total granted (in shares)	160,000	144,000
Weighted average grant date fair value (in usd per share)	$ 812.75	$ 725.73
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unamortized compensation cost	$ 0.6
Weighted average period of total unamortized cost (in years)	1 year 6 months
Total granted (in shares)	4,728
Weighted average grant date fair value (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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 37,860	$ 34,140	$ 75,595	$ 65,761
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,901	1,614	3,708	3,128
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	29,002	26,491	57,693	51,216
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 6,957	$ 6,035	$ 14,194	$ 11,417

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Nonvested Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) \| shares	489
Granted (in shares) \| shares	502
Vested and released (in shares) \| shares	(191)
Forfeited (in shares) \| shares	(27)
Unvested, end of period (in shares) \| shares	773
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) \| $ / shares	$ 427.23
Granted (in usd per share) \| $ / shares	316.03
Vested and released (in usd per share) \| $ / shares	380.55
Forfeited (in usd per share) \| $ / shares	394.18
Unvested, end of period (in usd per share) \| $ / shares	$ 367.66
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 9 months 18 days
Aggregate Intrinsic Value
Aggregate intrinsic value \| $	$ 273,404
Market Performance Based Restricted Stock Units
Number of Shares Underlying RSUs
Unvested, beginning of period (in shares) \| shares	144
Granted (in shares) \| shares	82
Vested and released (in shares) \| shares	(25)
Forfeited (in shares) \| shares	(41)
Unvested, end of period (in shares) \| shares	160
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in usd per share) \| $ / shares	$ 725.73
Granted (in usd per share) \| $ / shares	629.53
Vested and released (in usd per share) \| $ / shares	392.67
Forfeited (in usd per share) \| $ / shares	392.67
Unvested, end of period (in usd per share) \| $ / shares	$ 812.75
Weighted Average Remaining Contractual Term (in years)
Weighted average remaining contractual term	1 year 10 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value \| $	$ 56,670

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
	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Expected term (in years)	1 year	1 year 6 months
Expected volatility	56.70%	48.60%
Risk-free interest rate	4.60%	1%
Expected dividends	0%	0%
Weighted average fair value at grant date (in usd per share)	$ 105.75	$ 196.97

Common Stock Repurchase Progr_3

Common Stock Repurchase Programs - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 31, 2023	May 31, 2021
Share Repurchases [Line Items]
Common stock repurchased and retired	$ 200,000,000	$ 292,360,000	$ 275,036,000
May 2021 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount					$ 1,000,000,000
January 2023 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount				$ 1,000,000,000
Amount available for repurchase		$ 1,000,000,000

Common Stock Repurchase Progr_4

Common Stock Repurchase Programs - Accelerated Share Repurchase Agreements (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	May 31, 2021
Share Repurchases [Line Items]
Amount paid		$ 292,360,000	$ 275,036,000
May 2021 Repurchase Program
Share Repurchases [Line Items]
Authorized repurchase amount					$ 1,000,000,000
May 2021 Repurchase Program \| Fourth Quarter 2022
Share Repurchases [Line Items]
Amount paid	$ 40,000,000
Total shares received (in shares)	136,448
Average price per share (in dollars per share)	$ 293.15
Authorized repurchase amount				$ 200,000,000
May 2021 Repurchase Program \| First Quarter 2023
Share Repurchases [Line Items]
Amount paid	$ 250,000,000
Total shares received (in shares)	805,905
Average price per share (in dollars per share)	$ 310.21

Accounting for Income Taxes - A

Accounting for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disclosure Accounting For Income Taxes Additional Information [Abstract]
Provision for income taxes	$ 59,775	$ 60,809	$ 106,601	$ 113,997
Effective income tax rate, continuing operations	34.80%	35%	34.80%	31.60%
Unrecognized tax benefits	$ 148,200		$ 148,200		$ 141,600

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 111,814	$ 112,800	$ 199,612	$ 247,098
Weighted average common shares outstanding, basic (in shares)	76,524	78,395	76,722	78,568
Dilutive effect of potential common stock (in shares)	165	150	175	272
Total shares, diluted (in shares)	76,689	78,545	76,897	78,840
Net income per share, basic (in usd per share)	$ 1.46	$ 1.44	$ 2.60	$ 3.15
Net income per share, diluted (in usd per share)	$ 1.46	$ 1.44	$ 2.60	$ 3.13
Anti-dilutive potential common shares (in shares)	329	361	367	314

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Non-cash investing and financing activities:
Acquisition of property, plant and equipment in accounts payable and accrued liabilities	$ 20,648	$ 60,115
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	16,152	15,048
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 21,346	$ 16,351

Segments and Geographical Inf_3

Segments and Geographical Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segments and Geographical Inf_4

Segments and Geographical Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net revenues	$ 1,002,173	$ 969,553	$ 1,945,320	$ 1,942,772
Gross profit	713,609	687,559	1,374,263	1,396,905
Income from operations	171,931	188,196	305,447	386,278
Stock-based compensation	37,860	34,140	75,595	65,761
Depreciation and amortization	35,819	30,281	71,639	59,907
Interest income	4,421	245	6,758	922
Other income (expense), net	(4,763)	(14,832)	(5,992)	(26,105)
Net income before provision for income taxes	171,589	173,609	306,213	361,095
Operating Segments
Segment Reporting Information [Line Items]
Income from operations	358,142	352,808	671,239	716,326
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income from operations	(186,211)	(164,612)	(365,792)	(330,048)
Stock-based compensation	33,106	30,903	65,866	59,456
Depreciation and amortization	11,486	9,476	22,762	18,413
Clear Aligner
Segment Reporting Information [Line Items]
Net revenues	832,674	798,398	1,622,478	1,608,094
Gross profit	603,251	585,245	1,169,390	1,190,941
Clear Aligner \| Operating Segments
Segment Reporting Information [Line Items]
Income from operations	306,093	307,209	583,614	619,928
Stock-based compensation	4,491	3,001	9,145	5,855
Depreciation and amortization	16,590	14,029	32,988	27,796
Systems and Services
Segment Reporting Information [Line Items]
Net revenues	169,499	171,155	322,842	334,678
Gross profit	110,358	102,314	204,873	205,964
Systems and Services \| Operating Segments
Segment Reporting Information [Line Items]
Income from operations	52,049	45,599	87,625	96,398
Stock-based compensation	263	236	584	450
Depreciation and amortization	$ 7,743	$ 6,776	$ 15,889	$ 13,698

Segments and Geographical Inf_5

Segments and Geographical Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net revenues	$ 1,002,173	$ 969,553	$ 1,945,320	$ 1,942,772
U.S.
Segment Reporting Information [Line Items]
Net revenues	429,598	430,053	840,736	850,973
Switzerland
Segment Reporting Information [Line Items]
Net revenues	341,006	330,351	654,137	662,090
Other International
Segment Reporting Information [Line Items]
Net revenues	$ 231,569	$ 209,149	$ 450,447	$ 429,709

Segments and Geographical Inf_6

Segments and Geographical Information - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total long-lived assets	$ 1,404,923	$ 1,350,735
Switzerland
Segment Reporting Information [Line Items]
Total long-lived assets	566,755	532,921
U.S.
Segment Reporting Information [Line Items]
Total long-lived assets	208,822	214,804
Other International
Segment Reporting Information [Line Items]
Total long-lived assets	$ 629,346	$ 603,010

Restructuring and Other Charg_2

Restructuring and Other Charges (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring expenses		$ 0.1	$ 10.2
Unpaid restructuring charges		0.3	$ 3.9
Payments for restructuring	$ 0.3	$ 3.7