Company: ALGN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001097149-25-000079
Chunk: 13

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 13
---
 and circumstances, primarily observable transactions for identical investments, we determined that no adjustments to the carrying values of our investments were necessary for the three or nine months ended September 30, 2025. Our investments in privately held companies in which we can exercise significant influence are accounted for as equity method investments. We have elected to account for our equity method investments under the fair value option. The carrying value of our investments in equity securities and equity method investments are reported in our Condensed Consolidated Balance Sheets as Other assets and any price adjustments or impairment, if any, are recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations. Derivatives Not Designated as Hedging InstrumentsWe enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain assets and liabilities. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, we recognized a net gain of $3.3 million and a net loss of $24.5 million during the three months ended September 30, 2025 and 2024, respectively, and a net loss of $35.3 million and a net gain $2.7 million, respectively, during the nine months ended September 30, 2025 and 2024. Recognized gains and losses from the settlement of foreign currency forward contracts are recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations. As of September 30, 2025 and December 31, 2024, the fair value of outstanding foreign exchange forward contracts was not material.

12 

The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of September 30, 2025 and December 31, 2024 (in thousands):September 30, 2025Local Currency AmountNotional Contract Amount (USD)Euro€159,000$186,840 Canadian DollarC$82,50059,356 British Pound£39,70053,324 Polish ZlotyPLN175,00048,036 Israeli ShekelILS94,10028,452 Japanese Yen¥3,300,00022,374 Brazilian RealR$92,30017,189 Swiss FrancCHF5,6007,048 New Taiwan DollarNT$106,3003,482 Australian DollarA$4,8003,177 New Zealand Dollar