XML 47 R10.htm IDEA: XBRL DOCUMENT
v3.22.4

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2022
Investments, All Other Investments [Abstract] |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheet as of December 31, 2022 and 2021 (in thousands):
|  |  |  |  |  |  |  |  |  | Reported as:
December 31, 2022 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Marketable securities, short-term |  | Marketable securities, long-term
Cash |  | $ | 712,921 |  |  | $ | — |  |  | $ | — |  |  | $ | 712,921 |  |  | $ | 712,921 |  |  | $ | — |  |  | $ | — |
Money market funds |  | 229,129 |  |  | — |  |  | — |  |  | 229,129 |  |  | 229,129 |  |  | — |  |  | — |
Corporate bonds |  | 69,390 |  |  | — |  |  | (2,915) |  |  | 66,475 |  |  | — |  |  | 36,510 |  |  | 29,965 |
U.S. government treasury bonds |  | 20,559 |  |  | — |  |  | (549) |  |  | 20,010 |  |  | — |  |  | 15,404 |  |  | 4,606 |
Asset-backed securities |  | 4,514 |  |  | 1 |  |  | (37) |  |  | 4,478 |  |  | — |  |  | 2,909 |  |  | 1,569 |
Municipal bonds |  | 3,447 |  |  | — |  |  | (61) |  |  | 3,386 |  |  | — |  |  | 2,711 |  |  | 675 |
U.S. government agency bonds |  | 5,231 |  |  | 1 |  |  | (69) |  |  | 5,163 |  |  | — |  |  | — |  |  | 5,163 |
Total |  | $ | 1,045,191 |  |  | $ | 2 |  |  | $ | (3,631) |  |  | $ | 1,041,562 |  |  | $ | 942,050 |  |  | $ | 57,534 |  |  | $ | 41,978 |
|  |  |  |  |  |  |  |  |  | Reported as:
December 31, 2021 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Marketable securities, short-term |  | Marketable securities, long-term
Cash |  | $ | 754,802 |  |  | $ | — |  |  | $ | — |  |  | $ | 754,802 |  |  | $ | 754,802 |  |  | $ | — |  |  | $ | — |
Money market funds |  | 343,012 |  |  | — |  |  | (2) |  |  | 343,010 |  |  | 343,010 |  |  | — |  |  | — |
Corporate bonds |  | 115,507 |  |  | 9 |  |  | (398) |  |  | 115,118 |  |  | 1,042 |  |  | 35,065 |  |  | 79,011 |
U.S. government treasury bonds |  | 42,976 |  |  | — |  |  | (48) |  |  | 42,928 |  |  | — |  |  | 22,251 |  |  | 20,677 |
Asset-backed securities |  | 32,031 |  |  | — |  |  | (40) |  |  | 31,991 |  |  | — |  |  | 10,999 |  |  | 20,992 |
Municipal bonds |  | 7,628 |  |  | — |  |  | (15) |  |  | 7,613 |  |  | 516 |  |  | 3,657 |  |  | 3,440 |
U.S. government agency bonds |  | 1,201 |  |  | — |  |  | (1) |  |  | 1,200 |  |  | — |  |  | — |  |  | 1,200 |
Total |  | $ | 1,297,157 |  |  | $ | 9 |  |  | $ | (504) |  |  | $ | 1,296,662 |  |  | $ | 1,099,370 |  |  | $ | 71,972 |  |  | $ | 125,320 |
The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of December 31, 2022 and 2021 (in thousands):
|  | December 31,
|  | 2022 |  | 2021
Due in 1 year or less |  | $ | 51,037 |  |  | $ | 59,737 |
Due in 1 year through 5 years |  | 48,475 |  |  | 139,113 |
Total |  | $ | 99,512 |  |  | $ | 198,850 |
The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Our unrealized losses as of December 31, 2022 and 2021 are primarily due to changes in interest rates and credit spreads. The following table summarizes the gross unrealized losses as of December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands):
|  | As of December 31, 2022
|  | Less than 12 months |  | 12 Months of Greater |  | Total
December 31, 2022 |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  |  | Fair Value |  | Unrealized Loss
Corporate bonds |  | $ | 10,639 |  |  | $ | (440) |  |  | $ | 54,634 |  |  | $ | (2,475) |  |  |  | $ | 65,273 |  |  | $ | (2,915) |
U.S. government treasury bonds |  | 5,262 |  |  | (177) |  |  | 14,748 |  |  | (372) |  |  |  | 20,010 |  |  | (549) |
Asset-backed securities |  | 2,636 |  |  | (17) |  |  | 1,275 |  |  | (20) |  |  |  | 3,911 |  |  | (37) |
Municipal bonds |  | — |  |  | — |  |  | 2,412 |  |  | (61) |  |  |  | 2,412 |  |  | (61) |
U.S. government agency bonds |  | 3,017 |  |  | (5) |  |  | 1,136 |  |  | (64) |  |  |  | 4,153 |  |  | (69) |
Total |  | $ | 21,554 |  |  | $ | (639) |  |  | $ | 74,205 |  |  | $ | (2,992) |  |  |  | $ | 95,759 |  |  | $ | (3,631) |
As of December 31, 2021, all gross unrealized losses had been in an unrealized loss position for less than 12 months. Investment in SmileDirectClub, LLC (“SDC”) After tendering of our SDC equity interest in 2019, on July 3, 2019, we filed a demand for arbitration regarding SDC’s calculation of the “capital account” balance. On March 12, 2021, the arbitrator ruled in our favor and against SDC and issued an award of $43.4 million along with interest. The gain of $43.4 million was recognized as a part of our other income (expense), net in our Consolidated Statement of Operation during the year ended December 31, 2021. Fair Value Measurements The following tables summarize our financial assets measured at fair value as of December 31, 2022 and 2021 (in thousands):
Description |  | Balance as of December 31, 2022 |  | Level 1 |  | Level 2 |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 229,129 |  |  | $ | 229,129 |  |  | $ | — |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |  |  |  |
U.S. government treasury bonds |  | 15,404 |  |  | 15,404 |  |  | — |  |  |  |  |
Corporate bonds |  | 36,510 |  |  | — |  |  | 36,510 |  |  |  |  |
Municipal bonds |  | 2,711 |  |  | — |  |  | 2,711 |  |  |  |  |
Asset-backed securities |  | 2,909 |  |  | — |  |  | 2,909 |  |  |  |  |
Long-term investments: |  |  |  |  |  |  |  |  |  |
U.S. government treasury bonds |  | 4,606 |  |  | 4,606 |  |  | — |  |  |  |  |
Corporate bonds |  | 29,965 |  |  | — |  |  | 29,965 |  |  |  |  |
Municipal bonds |  | 675 |  |  | — |  |  | 675 |  |  |  |  |
U.S. government agency bonds |  | 5,163 |  |  | — |  |  | 5,163 |  |  |  |  |
Asset-backed securities |  | 1,569 |  |  | — |  |  | 1,569 |  |  |  |  |
|  | $ | 328,641 |  |  | $ | 249,139 |  |  | $ | 79,502 |  |  |  |  |
Description |  | Balance as of December 31, 2021 |  | Level 1 |  | Level 2 |  |
Cash equivalents: |  |  |  |  |  |  |  |
Money market funds |  | $ | 343,010 |  |  | $ | 343,010 |  |  | $ | — |  |  |
Corporate bonds |  | 1,042 |  |  | — |  |  | 1,042 |  |  |
Municipal bonds |  | 516 |  |  | — |  |  | 516 |  |  |
Short-term investments: |  |  |  |  |  |  |  |
U.S. government treasury bonds |  | 22,251 |  |  | 22,251 |  |  | — |  |  |
Corporate bonds |  | 35,065 |  |  | — |  |  | 35,065 |  |  |
Municipal bonds |  | 3,657 |  |  | — |  |  | 3,657 |  |  |
Asset-backed securities |  | 10,999 |  |  | — |  |  | 10,999 |  |  |
Long-term investments: |  |  |  |  |  |  |  |
U.S. government treasury bonds |  | 20,677 |  |  | 20,677 |  |  | — |  |  |
Corporate bonds |  | 79,011 |  |  | — |  |  | 79,011 |  |  |
Municipal bonds |  | 3,440 |  |  | — |  |  | 3,440 |  |  |
U.S. government agency bonds |  | 1,200 |  |  | — |  |  | 1,200 |  |  |
Asset-backed securities |  | 20,992 |  |  | — |  |  | 20,992 |  |  |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |
Israeli funds |  | 3,841 |  |  | — |  |  | 3,841 |  |  |
|  | $ | 545,701 |  |  | $ | 385,938 |  |  | $ | 159,763 |  |  |
Derivatives Not Designated as Hedging Instruments Recurring foreign currency forward contracts We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, the net gain recognized during the year ended December 31, 2022 was not material and we recognized a net gain of $18.8 million and a net loss of $22.1 million, during the year ended December 31, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the fair value of foreign exchange forward contracts outstanding was not material. The following tables presents the gross notional value of all our foreign exchange forward contracts outstanding as of December 31, 2022 and 2021 (in thousands):
|  | December 31, 2022
|  | Local Currency Amount |  | Notional Contract Amount (USD)
Euro |  | €186,900 |  | $ | 200,010 |
Polish Zloty |  | PLN365,988 |  | 83,307 |
Canadian Dollar |  | C$109,000 |  | 80,514 |
Chinese Yuan |  | ¥471,000 |  | 68,223 |
British Pound |  | £41,200 |  | 49,677 |
Japanese Yen |  | ¥6,200,000 |  | 47,196 |
Israeli Shekel |  | ILS110,030 |  | 31,383 |
Swiss Franc |  | CHF25,000 |  | 27,165 |
Brazilian Real |  | R$141,200 |  | 26,839 |
Mexican Peso |  | M$230,000 |  | 11,746 |
New Zealand Dollar |  | NZ$6,000 |  | 3,806 |
Australian Dollar |  | A$4,000 |  | 2,721 |
Czech Koruna |  | Kč56,000 |  | 2,469 |
New Taiwan Dollar |  | NT$60,000 |  | 1,959 |
|  |  |  | $ | 637,015 |
|  | December 31, 2021
|  | Local Currency Amount |  | Notional Contract Amount (USD)
Euro |  | €165,110 |  | $ | 186,358 |
Canadian Dollar |  | C$99,800 |  | 78,018 |
Chinese Yuan |  | ¥494,500 |  | 77,358 |
Polish Zloty |  | PLN219,800 |  | 54,014 |
Brazilian Real |  | R$286,500 |  | 50,894 |
Japanese Yen |  | ¥5,548,700 |  | 48,206 |
British Pound |  | £34,740 |  | 46,881 |
Israeli Shekel |  | ILS54,110 |  | 17,416 |
Mexican Peso |  | M$311,500 |  | 15,133 |
Swiss Franc |  | CHF9,950 |  | 10,883 |
Australian Dollar |  | A$6,900 |  | 5,009 |
|  |  |  | $ | 590,170 |
Other foreign currency forward contract Prior to the closing of the exocad acquisition on April 1, 2020, we entered into a Euro foreign currency forward contract with a notional contract amount of €376.0 million. Relating to this forward contract, in 2020, we recognized a loss of $10.2 million within other income (expense), net in our Consolidated Statement of Operations.

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration