Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 140

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 140
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 each reportable segments performance, by reviewing each measure against internal forecasts and historical performance. Our CODM may also benchmark each segments performance against our competitors and external expectations.Summarized financial information by reportable segment is as follows (in thousands):  Three Months EndedMarch 31,20252024Net revenuesClear Aligner$796,843 $817,251 Systems and Services182,419 180,180 Total net revenues$979,262 $997,431 Cost of net revenues1Clear Aligner$234,754 $238,105 Systems and Services64,400 61,510 Total cost of goods sold$299,154 $299,615 Gross profitClear Aligner$562,089 $579,146 Systems and Services118,019 118,670 Total gross profit$680,108 $697,816 Other Segment expensesClear Aligner$301,865 $292,908 Systems and Services59,556 68,977 Unallocated corporate expenses187,587 181,796 Total operating expenses$549,008 $543,681 Segment income from operationsClear Aligner$260,224 $286,238 Systems and Services58,463 49,693 Total segment income from operations$318,687 $335,931 1    Management has identified cost of net revenues as a significant expense for our Clear Aligner and Systems and Services reportable segments.Other segment expenses typically include employee related costs, marketing and advertising costs and depreciation and amortization expense incurred by various functions including selling, marketing, general and administrative and research and development. Our CODM does not regularly receive these operating expenses at the reportable segment level. Income from operations for each segment includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the reportable segment. Certain operating expenses are not directly attributable to a reportable segment and must be allocated. Each allocation is measured differently based on the nature of the cost being allocated. Certain other operating expense are not specifically allocated to segment income from operations and generally include various corporate expenses such as stock-based compensation and costs related to information technology (“IT”), facilities, human resources, accounting and finance, legal and regulatory, other separately managed general and administrative costs outside the reportable segments and restructuring costs.

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The following table reconciles total segment income from operations in the table above to net income before provision for (benefit from) income taxes (in thousands