Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Align Technology Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	361,573)	772,020)	1,775,888)	442,776)	400,235)
Deferred taxes	(39,495)	15,455)	(1,491,577)	307)	(15,680)
Depreciation and amortization	125,793)	108,729)	93,538)	78,990)	54,727)
Stock-based compensation	133,367)	114,336)	98,427)	88,184)	70,763)
Non-cash operating lease cost	30,520)	26,807)	22,467)	18,475)	—)
Arbitration award gain	—)	(43,403)	—)	—)	—)
Impairments on long-lived assets	—)	—)	—)	28,498)	—)
Equity in losses of investee	—)	—)	—)	7,528)	8,693)
Gain on lease terminations	—)	—)	—)	(6,792)	—)
Gain from sale of equity method investment	—)	—)	—)	(15,769)	—)
Other non-cash operating activities	41,288)	24,363)	33,743)	29,860)	17,252)
Accounts receivable	21,549)	(262,066)	(139,777)	(121,014)	(109,224)
Inventories	(130,097)	(112,450)	(29,110)	(58,269)	(24,109)
Prepaid expenses and other assets	(65,514)	(124,626)	(21,130)	(31,529)	(9,122)
Accounts payable	(36,523)	19,747)	52,206)	22,099)	25,045)
Accrued and other long-term liabilities	(121,942)	158,543)	42,168)	60,240)	36,250)
Long-term income tax payable	6,327)	12,449)	(2,802)	14,611)	(36,548)
Deferred revenues	241,886)	462,640)	228,133)	189,075)	136,399)
Changes in assets and liabilities, net of effects of acquisitions	(84,314)	154,237)	129,688)	75,213)	18,691)
Adjustments to reconcile net income to net cash provided by operating activities	207,159)	400,524)	(1,113,714)	304,494)	154,446)
Net cash provided by operating activities	568,732)	1,172,544)	662,174)	747,270)	554,681)
Acquisitions, net of cash acquired	(12,304)	(8,002)	(420,788)	—)	—)
Purchase of property, plant and equipment	(291,900)	(401,098)	(154,916)	(149,707)	(223,312)
Purchase of marketable securities	(28,002)	(200,928)	(5,341)	(693,284)	(180,191)
Proceeds from maturities of marketable securities	23,785)	498)	42,641)	290,754)	375,105)
Proceeds from sales of marketable securities	97,316)	3,114)	278,817)	194,677)	9,560)
Repayment on unsecured promissory note	—)	4,594)	26,925)	21,820)	—)
Proceeds from arbitration award	—)	43,403)	—)	—)	—)
Purchase of investment in privately held company	—)	—)	—)	—)	(5,000)
Loan repayment from equity investee	—)	—)	—)	—)	30,000)
Other investing activities	(2,211)	(5,011)	1,156)	(14,704)	765)
Net cash (used in) provided by investing activities	(213,316)	(563,430)	(231,506)	(350,444)	6,927)
Proceeds from issuance of common stock	26,149)	25,623)	20,314)	17,907)	16,635)
Common stock repurchases	(435,036)	(375,038)	—)	(399,999)	(300,002)
Payment for equity forward contract related to accelerated stock repurchase agreement	(40,000)	—)	—)	—)	—)
Payroll taxes paid upon the vesting of equity awards	(52,799)	(108,917)	(51,122)	(57,675)	(86,067)
Purchase of finance lease	—)	—)	—)	(45,773)	—)
Net cash used in financing activities	(501,686)	(458,332)	(30,808)	(485,540)	(369,434)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(11,514)	(12,117)	10,480)	2,282)	(4,733)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(157,784)	138,665)	410,340)	(86,432)	187,441)
Cash, cash equivalents, and restricted cash at beginning of year	1,100,139)	961,474)	551,134)	637,566)	450,125)
Cash, cash equivalents, and restricted cash at end of year	942,355)	1,100,139)	961,474)	551,134)	637,566)

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).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Align Technology Inc. net cash provided by operating activities increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Net cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Align Technology Inc. net cash (used in) provided by investing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Net cash used in financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Align Technology Inc. net cash used in financing activities decreased from 2020 to 2021 and from 2021 to 2022.

Align Technology Inc. (NASDAQ:ALGN)

Cash Flow Statement