Company: ALGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001097149-25-000034
Chunk: 138

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 138
---
3,993 $171.03 1     In May 2025, we completed the open market repurchase program initiated in Q1 2025. In total we repurchased approximately 1.3 million shares of our common stock at an average price of $168 per share for an aggregate purchase price of approximately $225.0 million. As of March 31, 2025 we had $96.0 million available for repurchase under the January 2023 Repurchase Program, which was used to repurchase shares through May 2, 2025. These subsequent repurchases completed the January 2023 Repurchase Program.In April 2025, our Board of Directors authorized a plan to repurchase up to $1.0 billion of our common stock (“April 2025 Repurchase Program”), none of which has been utilized.

Note 11. Accounting for Income Taxes 

Our provision for income taxes was $47.2 million and $53.4 million for the three months ended March 31, 2025 and 2024, respectively, representing effective tax rates of 33.6% and 33.7%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended March 31, 2025 and 2024 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.

19 

We exercise significant judgment in regard 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. We may be required to adjust the valuation allowance for deferred tax assets if we determine, based on available evidence at the time of the determination, that it is more likely than not that some portion or all of the deferred tax assets will not be realized. Changes to the valuation allowance could have a material adverse effect on our results of operations.Our total gross unrecognized tax benefits, excluding interest and penalties, were $147.4 million and $145.5 million as of March 31, 2025 and December 31, 2024, 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