Company: ALGN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001097149-25-000012
Chunk: 110

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 110
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732 Investing activities(254,912)(195,943)(213,316)Financing activities(355,722)(598,340)(501,686)Effects of foreign exchange rate changes on cash, cash equivalents, and restricted cash (21,153)4,671 (11,514)Net (decrease) increase in cash, cash equivalents, and restricted cash$106,444 $(3,836)$(157,784)

Operating Activities

For the year ended December 31, 2024, cash flows from operations of $738 million resulted primarily from our net income of approximately $421 million as well as the following:

Significant adjustments to net income

•Stock-based compensation of $174 million related to equity awards granted to employees and directors; and

•Depreciation and amortization of $145 million related to our investments in property, plant and equipment and intangible assets.

Significant changes in working capital 

•Net inflow of $90 million from accrued and other long-term liabilities primarily due to timing of payments;

•Net inflow of $68 million from prepaid expenses and other assets primarily due to settlement of tax matter. Refer to Note 8 “Legal Proceedings” of the Notes to Consolidated Financial Statements.

•Net outflow of $80 million from deferred revenues; and

•Net outflow of $153 million from accounts receivable due to timing of collections and increased revenues.

49

For the year ended December 31, 2023, cash flows from operations of $786 million resulted primarily from our net income of approximately $445 million as well as the following:

Significant adjustments to net income

•Stock-based compensation of $154 million related to equity awards granted to employees and directors; and

•Depreciation and amortization of $142 million related to our investments in property, plant and equipment and intangible assets.

Significant changes in working capital

•Net inflow of $46 million from accrued and other long-term liabilities primarily due to higher incentive accruals for 2023, as well as timing of payments of other activities;

•Net inflow of $87 million from deferred revenues due to the deferral of revenue on shipments;

•Net inflow of $30 million from inventories primarily due to lower purchases of materials used in manufacturing; and 

•Net outflow of $105 million, net from accounts receivable due to timing of collections and increased revenues.

Investing Activities

Net cash used in investing activities was $255 million for the year