XML 19 R9.htm IDEA: XBRL DOCUMENT
v3.25.3

Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2025
Investments, All Other Investments [Abstract] |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash, cash equivalents and marketable securities balances in our Condensed Consolidated Balance Sheets as of September 30, 2025 and Consolidated Balance Sheets as of December 31, 2024 (in thousands):
|  |  |  |  |  |  |  |  |  | Reported as: |  |  |  |  |  |
September 30, 2025 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  |  |  |  |  |
Cash |  | $ | 797,412 |  |  | $ | — |  |  | $ | — |  |  | $ | 797,412 |  |  | $ | 797,412 |  |  |  |  |  |  |
Money market funds |  | 190,785 |  |  | — |  |  | — |  |  | 190,785 |  |  | 190,785 |  |  |  |  |  |  |
Certificate of deposits |  | 16,392 |  |  | — |  |  | — |  |  | 16,392 |  |  | 16,392 |  |  |  |  |  |  |
Total |  | $ | 1,004,589 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,004,589 |  |  | $ | 1,004,589 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Reported as: |  |  |  |
December 31, 2024 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  |  |  |
Cash |  | $ | 752,423 |  |  | $ | — |  |  | $ | — |  |  | $ | 752,423 |  |  | $ | 752,423 |  |  |  |  |
Money market funds |  | 291,464 |  |  | — |  |  | — |  |  | 291,464 |  |  | 291,464 |  |  |  |  |
Total |  | $ | 1,043,887 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,043,887 |  |  | $ | 1,043,887 |  |  |  |  |
We had no short-term or long-term marketable securities as of September 30, 2025 or December 31, 2024. Fair Value Measurements Fair value is an exit price, representing the amount that would be received from selling an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. We use the U.S. GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value: Level 1 — Inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly. Level 3 — Inputs to the valuation techniques that are unobservable for the assets or liabilities. The following tables summarize our financial assets measured at fair value as of September 30, 2025 and December 31, 2024 (in thousands):
Description |  | Balance as of September 30, 2025 |  | Level 1 |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |
Money market funds |  | $ | 190,785 |  |  | $ | 190,785 |  |  |  |  |
Certificate of deposits |  | 16,392 |  |  | 16,392 |  |  |  |  |
Total |  | $ | 207,177 |  |  | $ | 207,177 |  |  |  |  |
Description |  | Balance as of December 31, 2024 |  | Level 1 |  |
Cash equivalents: |  |  |  |  |  |
Money market funds |  | $ | 291,464 |  |  | $ | 291,464 |  |  |
Total |  | $ | 291,464 |  |  | $ | 291,464 |  |  |
Accounts Receivable Factoring We enter into factoring transactions on a non-recourse basis with financial institutions to sell certain of our non-U.S. accounts receivable. We account for these transactions as sales of financial assets and include the cash proceeds as a part of our cash flows from operations in the Condensed Consolidated Statements of Cash Flows. Total accounts receivable sold under factoring arrangements were $10.0 million and $8.2 million during the three months ended September 30, 2025 and 2024, respectively, and $34.6 million and $34.2 million during the nine months ended September 30, 2025 and 2024, respectively. Factoring fees on the sales of receivables were recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations and were not material. Investments in Privately Held Companies Our investments in privately held companies in which we cannot exercise significant influence and do not own a majority equity interest or otherwise control are accounted for as investments in equity securities. We have elected to account for all investments in equity securities in accordance with the measurement alternative. Under the measurement alternative, we record the value of our investments in equity securities at cost, minus impairment, if any. Additionally, we adjust the carrying value of our investments in equity securities for observable transactions for identical or similar investments of the same issuer. On April 24, 2023 and April 22, 2024, we entered into Subscription Agreements (the “Subscription Agreements”) with Heartland Dental Holding Corporation (“Heartland”). Pursuant to the Subscription Agreements we acquired less than a 5% equity interest in Heartland through the purchase of Class A Common Stock for $150 million in total. In the fourth quarter of 2024, we recorded a $6 million increase to the carrying value of our investment, which increased the total carrying value of our investment in Heartland to $156 million. On December 19, 2024 and June 5, 2025, we entered into Subscription Agreements (the “Smile Doctors Subscription Agreements”) with New SD Holding Company, L.P. (“SD Holding Company”). Pursuant to the Smile Doctors Subscription Agreements we acquired less than a 3% equity interest in SD Holding Company through the purchase of Class A Common Units for $40 million in total. SD Holding Company owns a controlling interest, through intermediary entities, in Smile Doctors, LLC. Based on a review of the relevant facts 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 Instruments We 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. 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, 2025
| Local Currency Amount |  | Notional Contract Amount (USD)
Euro | €159,000 |  | $ | 186,840 |
Canadian Dollar | C$82,500 |  | 59,356 |
British Pound | £39,700 |  | 53,324 |
Polish Zloty | PLN175,000 |  | 48,036 |
Israeli Shekel | ILS94,100 |  | 28,452 |
Japanese Yen | ¥3,300,000 |  | 22,374 |
Brazilian Real | R$92,300 |  | 17,189 |
Swiss Franc | CHF5,600 |  | 7,048 |
New Taiwan Dollar | NT$106,300 |  | 3,482 |
Australian Dollar | A$4,800 |  | 3,177 |
New Zealand Dollar | NZ$4,300 |  | 2,495 |
Korean Won | ₩3,200,000 |  | 2,283 |
Chinese Yuan | ¥15,000 |  | 2,108 |
Total notional contract amount |  |  | $ | 436,164 |
| December 31, 2024
| Local Currency Amount |  | Notional Contract Amount (USD)
Euro | €176,080 |  | $ | 183,172 |
Polish Zloty | PLN283,000 |  | 68,633 |
Canadian Dollar | C$97,000 |  | 67,446 |
British Pound | £37,600 |  | 47,090 |
Israeli Shekel | ILS90,055 |  | 24,740 |
Chinese Yuan | ¥164,500 |  | 22,417 |
Brazilian Real | R$83,100 |  | 13,327 |
Japanese Yen | ¥2,000,000 |  | 12,778 |
Swiss Franc | CHF5,700 |  | 6,314 |
New Zealand Dollar | NZ$7,000 |  | 3,924 |
Czech Koruna | Kč72,800 |  | 3,004 |
Australian Dollar | A$3,800 |  | 2,355 |
New Taiwan Dollar | NT$58,700 |  | 1,786 |
Korean Won | ₩2,000,000 |  | 1,361 |
Total notional contract amount |  |  | $ | 458,347 |

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 Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + 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