Company: ALGN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001097149-25-000012
Chunk: 107

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 107
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.6 $0.7 Operating margin %15.2 %16.7 %16.7 %17.2 %

Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.

1    Refer to Note 16 “Segments and Geographical Information” of the Notes to Consolidated Financial Statements for details on unallocated corporate expenses and the reconciliation to consolidated Income from operations.

Total operating margin percentage decreased in 2024 compared to 2023 primarily due to increased legal settlement losses, restructuring and other charges and employee costs. Refer to Note 8 “Legal Proceedings” of the Notes to Consolidated Financial Statements. 

Clear Aligner

Operating margin percentage decreased in 2024 compared to 2023 primarily due to a decrease in gross margin and an increase in employee costs. 

Systems and Services

Operating margin percentage increased in 2024 compared to 2023 primarily due to higher gross margin, partially offset by an increase in employee costs. 

Interest income (in millions):

 Year Ended December 31,Year Ended December 31, 20242023Change20232022ChangeInterest income$20.2 $17.3 $3.0 $17.3 $5.4 $11.9 % of net revenues0.5 %0.4 %0.4 %0.1 %

Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.

Interest income generally includes interest earned on cash, cash equivalents and investment balances.

Interest income increased in 2024 compared to 2023 primarily due to primarily due to higher cash and cash equivalents.

47

Other income (expense), net (in millions):

 Year Ended December 31,Year Ended December 31, 20242023Change20232022ChangeOther income (expense), net$(18.9)$(19.4)$0.5 $(19.4)$(48.9)$29.5 % of net revenues(0.5)%(0.5)%(0.5)%(1.3)%

Changes and percentages are based on actual values. Certain tables may not sum or recalculate due to rounding.

Other income (expense), net, generally includes foreign exchange gains and losses, gains and losses on foreign currency forward contracts, interest expense, gains and losses on equity investments and other miscellaneous charges.

Other income (expense), net increased in