Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Align Technology Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	127,870)	163,886)	142,132)	87,250)	64,256)
Accrued payroll and benefits	149,508)	288,355)	170,106)	162,486)	127,109)
Accrued income taxes	74,323)	33,838)	30,130)	14,130)	5,752)
Accrued expenses	64,341)	67,169)	42,536)	55,529)	39,323)
Accrued sales and marketing expenses	36,407)	41,387)	34,488)	—)	—)
Current operating lease liabilities	26,574)	22,719)	21,735)	15,737)	—)
Accrued property, plant and equipment	19,922)	46,561)	27,692)	9,167)	8,193)
Other accrued liabilities	83,299)	107,286)	78,895)	62,909)	54,302)
Accrued liabilities	454,374)	607,315)	405,582)	319,958)	234,679)
Deferred revenues	1,343,643)	1,152,870)	777,887)	563,762)	393,138)
Current liabilities	1,925,887)	1,924,071)	1,325,601)	970,970)	692,073)
Income tax payable	124,393)	118,072)	105,748)	102,794)	78,008)
Long-term operating lease liabilities	100,334)	102,656)	64,445)	43,463)	—)
Other long-term liabilities	195,975)	174,597)	100,024)	37,306)	29,486)
Noncurrent liabilities	420,702)	395,325)	270,217)	183,563)	107,494)
Total liabilities	2,346,589)	2,319,396)	1,595,818)	1,154,533)	799,567)
Preferred stock, $0.0001 par value; none issued	—)	—)	—)	—)	—)
Common stock, $0.0001 par value	8)	8)	8)	8)	8)
Additional paid-in capital	1,044,946)	999,006)	974,556)	906,937)	877,514)
Accumulated other comprehensive income (loss), net	(10,284)	4,326)	43,501)	(688)	(2,774)
Retained earnings	2,566,688)	2,619,374)	2,215,800)	439,912)	378,143)
Stockholders’ equity	3,601,358)	3,622,714)	3,233,865)	1,346,169)	1,252,891)
Total liabilities and stockholders’ equity	5,947,947)	5,942,110)	4,829,683)	2,500,702)	2,052,458)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Current Liabilities Trends: The current liabilities have shown a consistent increase from 2018 to 2021, rising from approximately $692 million to nearly $1.92 billion, indicating growing short-term financial obligations. However, in 2022, current liabilities stabilized with a marginal increase to about $1.93 billion. Key components such as accounts payable and accrued payroll and benefits followed similar increasing trends until 2021, with accounts payable peaking at approximately $164 million and accrued payroll reaching around $288 million. In 2022, both showed declines, suggesting a reduction in immediate payables and benefits liabilities. Accrued income taxes rose substantially, more than doubling between 2021 and 2022, reaching $74 million, indicating higher tax obligations.
Accrued Liabilities and Expenses: Total accrued liabilities demonstrated a strong upward trajectory, increasing from about $235 million in 2018 to over $607 million in 2021, before receding to approximately $454 million in 2022. Specific accounts such as accrued expenses and other accrued liabilities mirrored this pattern with increases peaking in 2021 followed by decreases in 2022. Notably, accrued property, plant, and equipment surged significantly in 2020 and 2021 but fell back in 2022, which may reflect capital expenditure timing differences. Accrued sales and marketing expenses appeared only from 2020 onward and showed fluctuations around the $35 to $41 million range, with a slight decrease in the last reported year.
Operating Lease Liabilities: Both current and long-term operating lease liabilities became evident beginning in 2019, with current lease liabilities rising steadily from approximately $16 million to $27 million by 2022. Long-term lease liabilities also increased sharply, peaking at about $103 million in 2021, with a small decline to around $100 million in 2022. This suggests a growing leasing commitment that plateaued recently.
Deferred Revenues: Deferred revenues showed a robust upward progression, climbing from $393 million in 2018 to $1.34 billion in 2022. This substantial increase implies an expanding amount of revenue received but not yet recognized, indicative of strong prepaid sales or contractual advances.
Noncurrent Liabilities and Total Liabilities: Noncurrent liabilities grew steadily from roughly $107 million in 2018 to over $420 million in 2022, highlighting an increase in long-term obligations. Total liabilities more than doubled from approximately $800 million in 2018 to $2.35 billion in 2022, reflecting overall growth in financial commitments both short and long term.
Equity Components: Common stock remained constant at a nominal value, while additional paid-in capital increased gradually from $878 million to over $1.04 billion, showing ongoing equity financing or capital contributions. Accumulated other comprehensive income showed volatility, starting negative, turning positive in 2020, and reverting to a negative balance by 2022. Retained earnings experienced a significant jump between 2019 and 2020, increasing from about $440 million to $2.22 billion, with smaller increases in subsequent years, though a slight decline appears in 2022, indicating a large accumulation of profits retained during the pandemic period and minor earnings reduction or distributions in the latest year. Stockholders' equity overall expanded substantially from $1.25 billion in 2018 to approximately $3.6 billion in 2022, aligning with the rise in retained earnings and paid-in capital.
Total Liabilities and Stockholders’ Equity: Total liabilities and stockholders’ equity nearly tripled, from about $2.05 billion in 2018 to nearly $6 billion in 2022, illustrating significant company growth and expansion of its financial base over the five-year span.

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Align Technology Inc. (NASDAQ:ALGN)

Balance Sheet: Liabilities and Stockholders’ Equity