Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-35751 |
Entity Registrant Name | STRATASYS LTD. |
Entity Incorporation, State or Country Code | IL |
Entity Address, Address Line One | 1 Holtzman Street |
Entity Address, Address Line Two | Science Park |
Entity Address, Address Line Three | P.O. Box 2496 |
Entity Address, City or Town | Rehovot |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 76124 |
Title of 12(b) Security | Ordinary Shares, nominal value NIS 0.01 per share |
Trading Symbol | SSYS |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 54,440,534 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001517396 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Business Contact [Member] | |
Contact Personnel Name | S. Scott Crump, Chairman of Executive Committee |
Entity Address, Address Line One | 7665 Commerce Way |
Entity Address, City or Town | Eden Prairie |
Entity Address State Or Province | MN |
Entity Address, Postal Zip Code | 55344 |
City Area Code | 952 |
Local Phone Number | 937-3000 |
Contact Personnel Email Address | scott.crump@stratasys.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 293,484 | $ 393,167 |
Short-term deposits | 28,300 | |
Accounts receivable, net | 132,558 | 138,146 |
Inventories | 168,504 | 123,524 |
Prepaid expenses | 6,567 | 6,398 |
Other current assets | 29,659 | 22,936 |
Total current assets | 659,072 | 684,171 |
Non-current assets | ||
Property, plant and equipment, net | 189,706 | 188,150 |
Goodwill | 385,658 | 385,849 |
Other intangible assets, net | 87,328 | 107,274 |
Operating lease right-of-use assets | 20,936 | |
Other non-current assets | 38,819 | 22,810 |
Total non-current assets | 722,447 | 704,083 |
Total assets | 1,381,519 | 1,388,254 |
Current liabilities | ||
Accounts payable | 35,818 | 45,855 |
Current portion of long-term debt | 5,143 | |
Accrued expenses and other current liabilities | 28,528 | 39,115 |
Accrued compensation and related benefits | 34,013 | 31,703 |
Deferred revenues | 52,268 | 53,965 |
Operating lease liabilities - short term | 9,292 | |
Total current liabilities | 159,919 | 175,781 |
Non-current liabilities | ||
Long-term debt | 22,000 | |
Deferred revenues - long-term | 16,039 | 18,422 |
Operating lease liabilities - long term | 12,445 | |
Other non-current liabilities | 35,343 | 29,084 |
Total non-current liabilities | 63,827 | 69,506 |
Total liabilities | 223,746 | 245,287 |
Redeemable non-controlling interests | 622 | 852 |
Equity | ||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 54,441 thousands shares and 53,881 thousands shares issued and outstanding at December 31, 2019 and 2018, respectively | 148 | 146 |
Additional paid-in capital | 2,706,894 | 2,681,048 |
Accumulated other comprehensive loss | (7,716) | (7,753) |
Accumulated deficit | (1,542,175) | (1,531,326) |
Total equity | 1,157,151 | 1,142,115 |
Total liabilities and equity | $ 1,381,519 | $ 1,388,254 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in NIS per share) | ₪ 0.01 | ₪ 0.01 |
Common stock, shares authorized | 180,000 | 180,000 |
Common stock, shares issued | 54,441 | 53,881 |
Common stock, shares outstanding | 54,441 | 53,881 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | |||
Total net sales | $ 636,080 | $ 663,237 | $ 668,362 |
Cost of sales | |||
Total cost of sales | 322,388 | 338,013 | 345,585 |
Gross profit | 313,692 | 325,224 | 322,777 |
Operating expenses | |||
Research and development, net | 94,253 | 98,964 | 96,237 |
Selling, general and administrative | 231,138 | 235,107 | 257,063 |
Total operating expenses | 325,391 | 334,071 | 353,300 |
Operating loss | (11,699) | (8,847) | (30,523) |
Financial income, net | 4,555 | 633 | 1,047 |
Loss before income taxes | (7,144) | (8,214) | (29,476) |
Income taxes expense | 3,523 | 4,736 | 9,273 |
Share in profits (losses) of associated companies | (412) | 1,725 | (1,710) |
Net loss | (11,079) | (11,225) | (40,459) |
Net loss attributable to non-controlling interests | (230) | (261) | (478) |
Net loss attributable to Stratasys Ltd. | $ (10,849) | $ (10,964) | $ (39,981) |
Net loss per ordinary share attributable to Stratasys Ltd. - basic and diluted | $ (0.20) | $ (0.22) | $ (0.75) |
Weighted average ordinary shares outstanding. - basic and diluted | 54,260 | 53,751 | 52,959 |
Comprehensive Loss | |||
Net loss | $ (11,079) | $ (11,225) | $ (40,459) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (580) | 227 | 6,102 |
Unrealized gains (losses) on derivatives designated as cash flow hedge | 617 | (957) | 354 |
Other comprehensive income (loss), net of tax | 37 | (730) | 6,456 |
Comprehensive loss | (11,042) | (11,955) | (34,003) |
Less: Comprehensive loss attributable to non-controlling interests | (230) | (261) | (478) |
Comprehensive loss attributable to Stratasys Ltd. | (10,812) | (11,694) | (33,525) |
Products [Member] | |||
Net sales | |||
Total net sales | 430,746 | 456,504 | 474,286 |
Cost of sales | |||
Total cost of sales | 182,430 | 203,622 | 219,020 |
Services [Member] | |||
Net sales | |||
Total net sales | 205,334 | 206,733 | 194,076 |
Cost of sales | |||
Total cost of sales | $ 139,958 | $ 134,391 | $ 126,565 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Ordinary Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings (accumulated deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Equity Attributable to Stratasys Ltd. [Member] | Non-controlling Interest [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 142 | $ 2,633,129 | $ (1,483,925) | $ (13,479) | $ 1,135,867 | $ 131 | $ 1,135,998 |
Beginning Balance (in shares) at Dec. 31, 2016 | 52,639 | ||||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 6,557 | 6,559 | 6,559 | |||
Issuance of shares in connection with stock-based compensation plans (in shares) | 743 | ||||||
Stock-based compensation | 17,722 | 17,722 | 17,722 | ||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items | $ 1 | 5,866 | 5,867 | 5,867 | |||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items (in shares) | 249 | ||||||
Divestment of non-controlling interests | (30) | (30) | |||||
Comprehensive loss | (39,981) | 6,456 | (33,525) | (84) | (33,609) | ||
Ending Balance at Dec. 31, 2017 | $ 145 | 2,663,274 | (1,523,906) | (7,023) | 1,132,490 | 17 | 1,132,507 |
Ending Balance (in shares) at Dec. 31, 2017 | 53,631 | ||||||
Cumulative effect of changes in accounting principles | 3,544 | 3,544 | 3,544 | ||||
Issuance of shares in connection with stock-based compensation plans | $ 1 | 3,023 | 3,024 | 3,024 | |||
Issuance of shares in connection with stock-based compensation plans (in shares) | 250 | ||||||
Stock-based compensation | 15,686 | 15,686 | 15,686 | ||||
Purchase of redeemable non-controlling interests | (935) | (935) | (935) | ||||
Divestment of non-controlling interests | 26 | 26 | |||||
Comprehensive loss | (10,964) | (730) | (11,694) | (43) | (11,737) | ||
Ending Balance at Dec. 31, 2018 | $ 146 | 2,681,048 | (1,531,326) | (7,753) | 1,142,115 | 1,142,115 | |
Ending Balance (in shares) at Dec. 31, 2018 | 53,881 | ||||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 5,282 | 5,284 | 5,284 | |||
Issuance of shares in connection with stock-based compensation plans (in shares) | 560 | ||||||
Stock-based compensation | 20,564 | 20,564 | 20,564 | ||||
Comprehensive loss | (10,849) | 37 | (10,812) | (10,812) | |||
Ending Balance at Dec. 31, 2019 | $ 148 | $ 2,706,894 | $ (1,542,175) | $ (7,716) | $ 1,157,151 | $ 1,157,151 | |
Ending Balance (in shares) at Dec. 31, 2019 | 54,441 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (11,079) | $ (11,225) | $ (40,459) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Impairment of other long-lived assets | 776 | 7,260 | 6,759 |
Depreciation and amortization | 50,942 | 61,250 | 66,635 |
Stock-based compensation | 20,564 | 15,686 | 17,722 |
Foreign currency transaction loss (gain) | (1,900) | 5,140 | (10,429) |
Deferred income taxes | (2,393) | (3,956) | (2,549) |
Gain from sale of unconsolidated entity | (3,578) | (7,908) | 788 |
Share in (profits) losses of associated companies | 412 | (1,724) | 1,710 |
Other non-cash items | (103) | 582 | 2,400 |
Change in cash attributable to changes in operating assets and liabilities, net of the impact of acquisitions or divestitures: | |||
Accounts receivable, net | 4,967 | (8,884) | (7,581) |
Inventories | (48,647) | (16,124) | 2,174 |
Net investment in sales-type leases | 2,911 | 7,437 | 12,196 |
Other current assets and prepaid expenses | (5,847) | 446 | 1,100 |
Other non-current assets | 5,807 | (1,280) | (802) |
Accounts payable | (13,114) | 6,882 | (1,206) |
Other current liabilities | (7,273) | 9,183 | (1,114) |
Deferred revenues | (3,779) | 6,203 | 3,421 |
Other non-current liabilities | 141 | (5,256) | 10,954 |
Net cash provided by (used in) operating activities | (11,193) | 63,712 | 61,719 |
Cash flows from investing activities | |||
Purchase of property and equipment | (22,549) | (23,361) | (22,308) |
Proceeds from sale of subsidiaries and unconsolidated entity | 4,909 | 41,168 | |
Investment in unconsolidated entities | (20,222) | (13,015) | (3,568) |
Proceeds from sale of plant and property | 129 | 4,105 | |
Purchase of intangible assets | (2,752) | (1,449) | (1,540) |
Investments in short-term bank deposits | (28,300) | ||
Other investing activities | (741) | (304) | (361) |
Net cash provided by (used in) investing activities | (69,526) | 7,144 | (27,777) |
Cash flows from financing activities | |||
Proceeds from debt | 10,000 | ||
Repayment of debt | (27,293) | (5,143) | (3,714) |
Payment of obligations in connection with acquisitions | (1,476) | ||
Acquisition of redeemable non-controlling interests | (1,500) | ||
Proceeds from exercise of stock options | 5,284 | 3,692 | 5,888 |
Net cash provided by (used in) financing activities | (22,009) | (2,951) | 10,698 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,591 | (3,530) | 4,096 |
Net change in cash, cash equivalents and restricted cash | (100,137) | 64,375 | 48,736 |
Cash, cash equivalents and restricted cash, beginning of year | 393,734 | 329,359 | 280,623 |
Cash, cash equivalents and restricted cash, end of year | 293,597 | 393,734 | 329,359 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes, net of tax refunds | 10,730 | 5,682 | 1,247 |
Cash paid for interest | 449 | 1,675 | 1,140 |
Transfer of inventory to fixed assets | 3,307 | 3,702 | 4,844 |
Transfer of fixed assets to inventory | $ 322 | $ 451 | $ 1,188 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1. Nature of Operations and Summary of Significant Accounting Policies a. Nature of Operations Stratasys Ltd. (collectively with its subsidiaries, the “Company”) is global provider of applied additive technology solutions for a broad range of industries. The Company focuses on customers’ business requirements and seeks to create new value for its customers across their product lifecycle processes, from design prototypes to manufacturing tools and final production parts. The Company operates a 3D printing ecosystem of solutions and expertise, comprised of: 3D printers ranging from entry-level desktop 3D printers to systems for rapid prototyping (“RP”) and large production systems for direct digital manufacturing (“DDM”) based on precise fused deposition modeling (“FDM”) and PolyJet technologies; advanced materials for the use with its 3D printers; software with voxel level control; application-based services; on-demand parts; and key partnerships. The Company has one operating segment, which generates revenues via the sale of its 3D printing systems, related services and consumables and by providing additive manufacturing ("AM") solutions. The Company operates mainly through offices in Israel, the United States, Germany, Hong Kong and Japan. b. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of Stratasys Ltd., and its subsidiaries. All intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. Functional Currency and Foreign Currency Transactions A major part of the Company’s operations is carried out by Stratasys Ltd. in Israel and its subsidiaries in the United States. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of other subsidiaries is generally their local currency. The financial statements of those subsidiaries are included in the consolidated financial statements, based on translation into U.S. dollars. Assets and liabilities accounts are translated at year-end exchange rates, while revenues and expenses accounts are translated at average exchange rates during the year. The remeasurement adjustments of foreign currencies translation are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated financial statements. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income, net in the consolidated statements of operations and comprehensive loss. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may have a material impact on the Company’s financial statements. As applicable to these consolidated financial statements, the most significant estimates relate to revenue recognition, inventories measurement, recoverability of intangibles and goodwill, valuation allowance and uncertain tax positions. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. F-10 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Observable inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy categorizes into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Cash and Cash Equivalents All highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, with maturities of ninety days or less when acquired, are considered to be cash equivalents. Accounts Receivable and Net Investment in Sales-Type Leases Accounts receivable and net investment in sales-type leases are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company carries its investment in sales-type leases based on discounting the minimum lease payments by the interest rate implicit in the lease and less an allowance for doubtful accounts. On a periodic basis, the Company evaluates the collectability of its accounts receivable and its investment in sales-type leases and establishes an allowance for doubtful accounts based on past write-offs and collections, current credit conditions, the age of the balances and economic factors that may affect a customer’s ability to pay. The Company evaluates a number of factors to assess collectability, including an evaluation of the creditworthiness of the specific customer, past due amounts, payment history, and current economic conditions. Allowance for doubtful accounts due to the Company’s accounts receivable amounted to $939 thousand and $1,110 thousand as of December 31, 2019 and 2018, respectively. Allowance for doubtful accounts due to the Company’s investment in sales-type leases amounted to $414 thousand and $1,689 thousand as of December 31, 2019 and 2018, respectively. Changes in the allowance for doubtful accounts are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for doubtful accounts when management deems the accounts are no longer collectible. Derivative Instruments and Hedge Accounting The Company conducts its operations globally and may be exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. As part of the Company’s risk management strategy, the Company enters into transactions involving foreign currency exchange derivative financial instruments. For its non-hedging transactions, the Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. The Company does not enter into derivative transactions for trading purposes. The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at their fair value. Derivatives in a gain position are reported in other current assets in the consolidated balance sheets and derivatives in a loss position are recorded in accrued expenses and other current liabilities in the consolidated balance sheets, on a gross basis. On the date that the Company enters into a derivative contract, it designates the derivative for accounting purposes, as either a hedging instrument which qualifies for hedge accounting or as a non-hedging instrument which does not qualify for hedge accounting. In order to qualify for hedge accounting, the Company formally documents at the inception of each hedging relationship the hedging instrument, the hedged item, the risk management objective and strategy for undertaking each hedging relationship, and the method used to assess hedge effectiveness. F-11 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For each hedging instrument that hedges the exposure to variability in expected future cash flows and that is designated and effective as a cash flow hedge, both the effective and ineffective portion of the unrealized gain or loss on the derivative instrument are reported as a component of accumulated other comprehensive loss in the Company’s shareholders’ equity and are reclassified into earnings in the same period and in the same line item in which the hedged transaction affects earnings. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income, net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. The Company provided inventory write-downs for obsolescence and excess inventories in amounts of $11.7 million and $11.2 million as of December 31, 2019 and 2018, respectively. Non-Marketable Equity Investments The Company’s investments in non-marketable equity securities in which it has the ability to exercise significant influence, but does not control through variable interests or voting interests, are accounted for under the equity method of accounting and presented as other non-current assets in the Company’s consolidated balance sheets. Under the equity method, the Company recognizes its proportionate share of the comprehensive income or loss of the investee. The Company’s share of income and losses from equity method investments is included in share in losses of associated company. Other non-marketable equity securities without readily determinable fair value in which the Company does not have a controlling interest or significant influence are recorded at their original cost and adjusted for observable price changes for identical or similar instruments less any impairment. These equity securities are presented as other non-current assets in the Company’s consolidated balance sheets. The Company reviews its unconsolidated non-marketable equity investments for potential impairment or other adjustments, which generally involves an analysis of the facts and changes in circumstances influencing the investments. There was no impairment of unconsolidated non-marketable equity investments during the years ended December 31, 2019, 2018 and 2017. Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the lease term (including any renewal periods, if appropriate) or the estimated useful life of the asset. Repairs and maintenance are charged to expense as incurred, while betterments and improvements that extend the useful life or add functionality of property, plant and equipment are capitalized. F-12 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Depreciation is computed primarily over the following periods: Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 The Company reviews the carrying amounts of property, plant and equipment for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the assets or asset groups with the related estimated undiscounted future cash flows. In the event impairment exists, an impairment charge is recorded at the amount by which the carrying amount of the asset or asset group exceeds the fair value. In addition, the remaining depreciation period for the impaired asset would be reassessed and, if necessary, revised. Other Intangible Assets, net Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 8 Trade names 9 Customer relationships 7 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of sales. Amortization of trade names, customer relationships and patents are recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. During the years ended December 31, 2018 and 2017, the Company recorded impairment charges of $2.2 million in each of the two years, related to its definite life intangible assets. No impairment charges were recorded during 2019. Refer to Note 8 for further information. Goodwill Goodwill reflects the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter at the reporting unit level, or whenever events or circumstances present an indication of potential impairment which requires an interim goodwill impairment analysis. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. F-13 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company performs a qualitative assessment and concludes that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the impairment test is not required. However, if the Company concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. The evaluation of goodwill impairment requires the Company to make assumptions about future cash flows of the reporting unit being evaluated that include, among others, growth in revenues, level of operating expenses and cost of capital. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. Refer to Note 7 for further information. Retirement Plans and Employee Rights Upon Termination Under Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 ("Section 14"), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control and management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid. Severance pay liabilities with respect to for the Company’s employees in Israel who are not subject to Section 14, as well as employees who have special contractual arrangements, are provided for in the Company’s consolidated financial statements based on the length of time that they work for the Israeli entity and their latest monthly salary. The Company’s liabilities for those Israeli employees, in the amounts of $4.2 million and $4.0 million as of December 31, 2019 and 2018, respectively, are presented as other non-current liabilities in the Company’s consolidated balance sheets. These liabilities are recorded as if it was payable at each balance sheet date. These liabilities are partially funded by the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. As of December 31, 2019 and 2018, the Company had $3.3 million and $3.1 million, respectively, deposited in these insurance policies and pension funds. These policies are the Company’s assets. However, under employment agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In addition, the Company has liabilities for severance payments to its employees in other jurisdictions in accordance with local laws and practices of the countries in which they are employed. Severance expenses for the years ended December 31, 2019, 2018 and 2017 were $4.0 million, $4.1 million and $3.1 million, respectively. For its employees in the United States, the Company has a defined contribution retirement plan (the “Plan”) under the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) that covers eligible U.S. employees as defined in the Plan. Participants may elect to contribute both pre-tax or after-tax (“Roth”) up to 50% of annual taxable compensation, as defined by the Plan, up to a maximum amount prescribed by the Code. The Company, at its discretion, makes matching contributions equal 4% of the participant’s annual compensation. For the years ended December 31, 2019, 2018 and 2017 the Company made 401(k) Plan contributions of approximately $4.2 million, $3.2 million and $3.7 million respectively. F-14 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Contingent Liabilities The Company is subject to various legal proceedings that arise from time to time in the ordinary course of business. The outcomes of the legal proceedings that are pending as of the date the financial statements are issued are subject to significant uncertainty. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that loss would be incurred and the amount of the liability can be reasonably estimated, then the Company would record an accrued expense in the Company’s financial statements based on its best estimate. Loss contingencies considered to be remote by management are generally not disclosed unless material. The respective legal fees are expensed as incurred. Redeemable Non-controlling Interests Non-controlling interests with embedded redemption features, such as put options, whose settlement is not at the Company’s discretion, are considered redeemable non-controlling interests. Redeemable non-controlling interests are considered to be temporary equity and are therefore presented as a mezzanine section between liabilities and equity on the Company’s consolidated balance sheets. Redeemable non-controlling interests are measured at the greater of the initial carrying amount adjusted for the non-controlling interest’s share of comprehensive income or loss or its redemption value. Adjustments of redeemable non-controlling interest to its redemption value are recorded through additional paid-in capital. Revenue Recognition Effective January 1, 2018, the Company adopted the new accounting standard related to the recognition of revenue in contracts with customers using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Accordingly, results for reporting periods beginning after January 1, 2018 are presented under the new accounting standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous revenue recognition guidance. The impacts to adjust the results for 2018 to the previous revenue recognition standard were not material. The adoption of the new revenue recognition standard, resulting in an increase of $1.4 million in retained earnings with a corresponding effect on other non-current assets for the cumulative-effect adjustments recorded due to the deferral and amortization of incremental costs incurred to obtain a contract as of the date of adoption. The Company derives revenues from sales of additive manufacturing systems, consumables and services. The Company sells its products directly through its sales force, independent sales agents and indirectly through authorized resellers. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services to the end customer or to the reseller. The amount of consideration is usually at fixed price at the contract inception. Consideration from Shipping and handling are recorded on a gross basis within product revenue. Revenues are recorded net of any taxes assessed by various government entities, such as sales, use and value-added taxes. F-15 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Revenue from products, which consist of systems and consumables, is recognized when the customer has obtained control of the goods, generally at a point in time upon shipment or once delivery and risk of loss has transferred to the customer. The Company recognizes revenue on sales to resellers when the reseller has economic substance apart from the Company and the reseller is considered the principal for the transaction with the end-user customer. Service revenue derives from service type warranty and from the Company’s direct manufacturing parts services. Revenue from service is recognized ratably on a straight-line basis over the time of the service, as control is transferred over time or as services are performed if not under contract. The company enters into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources, and (ii) the Company’s promise to transfer the products or services to the customer is separately identifiable from other promises in the contract. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. In assessing collectability as part of the revenue recognition process, the Company considers a number of factors in the evaluation of the creditworthiness of the customer, including past due amounts, payment history and financial condition. In some cases where collectability is not assured, payment terms are set partially or entirely as prepayment or customers may be required to furnish letters of credit. See Note 3 for additional information related to disaggregation of revenue and other. Shipping and handling costs Shipping and handling costs are classified as cost of revenues. Advertising Advertising costs are expensed as incurred and were approximately $16.2 million, $15.9 million and $14.2 million, for the years ended December 31, 2019, 2018 and 2017, respectively. Research and Development Costs Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. F-16 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Deferred taxes have not been provided on the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. 2) Dividends distributable from the income of foreign companies as the Company does not expect these companies to distribute dividends in the foreseeable future. If these dividends were to be paid, the Company would have to pay additional taxes at a rate of up to 25% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. 3) Amounts of tax-exempt income generated from the Company’s current Approved Enterprises (see note 9c), as the Company intends to permanently reinvest these profits and does not intend to distribute dividends from such income. If these dividends were to be paid, the Company would have to pay additional taxes at a rate up to 10% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. Valuation Allowances Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In the determination of the appropriate valuation allowances, the Company considers future reversals of existing taxable temporary differences, the most recent projections of future business results, prior earnings history, carryback and carry forward and prudent tax strategies that may enhance the likelihood of realization of a deferred tax asset. Assessments for the realization of deferred tax assets made at a given balance sheet date are subject to change in the future, particularly if earnings of a subsidiary are significantly higher or lower than expected, or if the Company takes operational or tax positions that could impact the future taxable earnings of a subsidiary. Uncertain Tax Positions The Company takes a two-step approach to recognizing and measuring uncertain tax pos |
Certain Transactions
Certain Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Certain Transactions | Note 2. Certain Transactions Investment in Xaar 3D Ltd. ("Xaar 3D") During the fourth quarter of 2019, the Company entered into an agreement with Xaar plc ("Xaar") to purchase additional shares of Xaar 3D that will increase its stake from 15 to 45 percent, with Xaar retaining the remaining 55 percent. Xaar and Stratasys had announced the formation of Xaar 3D Ltd in July 2018; for the purpose of developing a Powder Bed Fusion ("PBF") additive manufacturing solutions that Stratasys can bring to the market. The additional investment by Stratasys is intended to enable Xaar 3D to accelerate the development of its technology. In addition, the agreement includes an option for Stratasys to acquire the remaining shares of Xaar 3D. Following the additional investment, the Company considered the FASB guidance in accordance with ASC Topic 810 “Consolidation” regarding the propriety of implementing consolidation, for both the variable interest entity and voting model, or equity method accounting. The Company concluded that it should continue accounting for the investment according to the equity method as it has retained the ability to exercise significant influence but does not control Xaar 3D. For its additional interest in Xaar 3D the Company paid approximately $15.7 million. The investment is presented under other non-current assets in the Company’s consolidated balance sheets. LPW Technology Divestment During the fourth quarter of 2018, the Company sold its equity minority interests in LPW Technology for a total consideration of $33.6 million and recognized a net gain of $13.5 million. The gain was recorded in the consolidated Statements of Operations and Comprehensive Loss under share in profits (losses) of associated companies. The net loss of LPW for the respective periods in which the Company accounted for its investment in LPW under the equity method of accounting during 2018 and 2017 was $4.6 million and $1.8 million, respectively. Solidscape Divestment During the third quarter of 2018, the Company sold Solidscape, a wholly-owned subsidiary focused on SCP, ink-jetting technology to produce wax-like patterns for lost-wax casting. As a result of this divestiture, the Company recognized a gain of $7.0 million, net of transaction costs in the consolidated Statements of Operations and Comprehensive Loss under selling, general and administrative expenses. Investment in Evolve During 2018, the Company, jointly with certain employees and one of the Company's board members formed an entity for one of its research and development projects (“Evolve”), which received subsequent investments from certain additional strategic investors. The Company does not consolidate the results of operations of Evolve. As a result of this transaction, the Company recorded $1.6 million loss included in its operating expenses. In addition, the Company recorded a $5.0 million loss related to the write-off of Evolve's in-process research and development project, which is included in share in profits (losses) of associated companies, in its consolidated financial statements for the year ended December 31, 2018. Repayment of loan In December 2016, the Company entered into a secured loan agreement with Bank Hapoalim Ltd., pursuant to which the Company borrowed $26.0 million (the “Bank Loan”), at interest rate of LIBOR plus 3.35%, and secured a credit line with similar terms for an additional $24.0 million (the “Credit Line”). The repayment of the Bank Loan was secured by a first priority lien in the name of the lender on all of the Company’s rights to its new headquarters property in Rehovot, Israel and it contains certain subjective acceleration clauses. During December 2017, the Company borrowed additional $10.0 million under the Credit Line. During the first quarter of 2019 the Company repaid the full outstanding amount. Other transactions During the second quarter of 2019, the Company sold an investment in an unconsolidated entity. As a result of this sale, the Company recognized a gain of approximately $3.6 million, net of transaction costs in the consolidated Statements of Operations and Comprehensive Loss under selling, general and administrative expenses. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenues | Note 3. Revenues Disaggregation of Revenues The following table present the Company’s revenues disaggregated by geographical region (based on the Company's customers’ location) and revenue type for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (U.S. $ in thousands) Americas Products $ 257,119 251,589 $ 263,212 Service 158,743 158,152 150,114 Total Americas 415,862 409,741 413,326 EMEA Products 98,693 119,151 123,616 Service 26,274 28,011 24,663 Total EMEA 124,967 147,162 148,279 Asia Pacific Products 74,934 85,764 87,458 Service 20,317 20,570 19,299 Total Asia Pacific 95,251 106,334 106,757 Total Revenues $ 636,080 $ 663,237 $ 668,362 F-21 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table present the Company’s revenues disaggregated based on the timing of revenue recognize for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 Revenues recognized in point in time from: Products $ 430,746 $ 456,504 $ 474,286 Services 43,885 130,973 120,531 Total revenues recognized in point in time 474,631 587,477 594,817 Revenues recognized over time from: Services 161,449 75,760 73,545 Total revenues recognized over time 161,449 75,760 73,545 Total Revenues $ 636,080 $ 663,237 $ 668,362 Contract Assets and Contract Liabilities Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of December 31, 2019. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of December 31, 2019 and 2018 were as follows: December 31, December 31, 2019 2018 U. S. $ in thousands Deferred revenue* 68,307 72,387 *Includes $16.0 million and $18.4 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2019 and December 31, 2018, respectively. Revenue recognized in 2019 and 2018 that was included in deferred revenue balance as of January 1, 2019 and 2018, was $50.2 million and $49.9 million, respectively. Remaining Performance Obligations Remaining Performance Obligations ("RPO") represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2019 and 2018 the total RPO amounted to $88.4 million and $93.9 million, respectively. The Company expects to recognize $70.5 million of this RPO during the next 12 months, $12.9 million over the subsequent 12 months and the remainder thereafter. F-22 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Incremental Costs of Obtaining a Contract Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. The Company determined the period of benefit by taking into consideration customer contracts including renewals, the technology and other factors. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2019 and 2018, the deferred commission amounted to $3.9 million and $3.1 million, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 4. Fair Value Measurement The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, on its consolidated balance sheets: December 31, 2019 December 31, 2018 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 63 $ 374 Foreign exchange forward contracts designated as hedging instruments 315 — Liabilities: Foreign exchange forward contracts not designated as hedging instruments (388 ) (196 ) Foreign exchange forward contracts designated as hedging instruments (326 ) (628 ) $ (336 ) $ (450 ) The Company’s foreign exchange forward contracts are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward and spot prices for currencies (Level 2 inputs). Other financial instruments consist mainly of cash and cash equivalents, short term deposits, current and non-current receivables, net investment in sales-type leases, bank loan, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consisted of the following: December 31, December 31, 2019 2018 U.S. $ in thousands Finished goods $ 87,967 $ 61,391 Work-in-process 3,106 2,616 Raw materials 77,431 59,517 168,504 123,524 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, December 31, 2019 2018 (U.S. $ in thousands) Machinery and equipment $ 140,413 $ 134,708 Buildings and improvements 149,022 139,666 Computer equipment and software 46,900 49,991 Office equipment, furniture and fixtures 13,780 17,616 Land 19,058 19,111 369,173 361,092 Accumulated depreciation (180,769 ) (173,437 ) 188,404 187,655 Construction work in progress 1,302 495 $ 189,706 $ 188,150 Depreciation expenses were $25.8 million, $28.9 million and $31.6 million in the years ended December 31, 2019, 2018 and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract]. | |
Goodwill | Note 7. Goodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 (U.S. $ in thousands ) Balance at January 1, $ 385,849 $ 387,108 Currency translation adjustments and disposition (191 ) $ (1,259 ) Balance at December 31, $ 385,658 $ 385,849 Goodwill impairment assessment for the year ended December 31, 2019 The Company performed a quantitative assessment for goodwill impairment for its Stratasys-Objet reporting unit and concluded that the fair value of Stratasys-Objet reporting unit exceeded its carrying amount by approximately 8.7%, with a carrying amount of goodwill assigned to this reporting unit in the amount of $386 million. When evaluating the fair value of Stratasys-Objet reporting unit under the income approach, the Company used a discounted cash flow model which utilized Level 3 measures that represent unobservable inputs. Key assumptions used to determine the estimated fair value include: (a) internal cash flows forecasts for 5 years following the assessment date, including expected revenue growth, costs to produce, operating profit margins and estimated capital needs; (b) an estimated terminal value using a terminal year long-term future growth rate of 3.1% determined based on the growth prospects of the reporting unit; and (c) a discount rate of 13.5% which reflects the weighted-average cost of capital adjusted for the relevant risk associated with the Stratasys-Objet reporting unit's operations and the uncertainty inherent in the Company's internally developed forecasts. In order to assess the reasonableness of its cash flow projections used for its goodwill impairment analysis, the Company compared the aggregate fair value of its reporting units to its market capitalization and calculated the implied control premium. The Company believes that its fair value assessment is reasonably supported by its calculated market capitalization. Actual results may differ from those assumed in the Company's valuation method. It is reasonably possible that the Company's assumptions described above could change in future periods. If any of these were to vary materially from the Company's plans, it may record impairment of goodwill allocated to this reporting unit in the future. A hypothetical decrease in the growth rate of 1% or an increase of 1% to the discount rate would have reduced the fair value, without resulting in an impairment, of Stratasys-Objet reporting unit by approximately $45 million and $81 million, respectively. F-24 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Based on the Company’s assessment as of December 31, 2019, no goodwill was determined to be impaired. Determining the fair value of the Stratasys-Objet reporting unit requires significant judgment, including judgments about the appropriate terminal growth rates, weighted average costs of capital and the amount and timing of projected future cash flows. The Company will continue to monitor the fair value of its Stratasys-Objet reporting unit to determine whether events and changes in circumstances such as further deterioration in the business climate or operating results, significant decline in the Company's share price, changes in management’s business strategy or downward changes of the Company's cash flows projections, warrant further interim impairment testing. |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Intangible Assets [Abstract] | |
Other Intangible Assets, Net | Note 8. Other Intangible Assets, Net Other intangible assets consisted of the following: December 31, 2019 December 31, 2018 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,100 $ (252,136 ) $ 46,964 $ 299,100 $ (236,375 ) $ 62,725 Patents 15,142 (7,067 ) 8,075 10,127 (5,752 ) 4,375 Trademarks and trade names 25,991 (19,966 ) 6,025 26,212 (19,067 ) 7,145 Customer relationships 102,936 (76,813 ) 26,123 102,984 (70,353 ) 32,631 Capitalized software development costs 18,630 (18,489 ) 141 19,540 (19,142 ) 398 $ 461,799 $ ( 374,471 ) $ 87,328 $ 457,963 $ ( 350,689 ) $ 107,274 Amortization expense Amortization expense relating to intangible assets for the years ended December 31, 2019, 2018 and 2017, was approximately $25.2 million, $32.4 million and $35.0 million, respectively. The decrease in amortization expense in 2019 was primarily due to change in the estimated useful lives of certain intangibles assets as of December 31, 2018. As of December 31, 2019, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expense Year ending December 31, (U.S. $ in thousands) 2020 $ 24,792 2021 24,667 2022 24,598 2023 7,662 2024 3,605 Thereafter 2,004 Total $ 87,328 During the years ended December 31, 2018 and 2017, the Company recorded impairment charges of $2.2 million in each of the two years, related to its definite life intangible assets. No impairment charges were recorded during 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes a. Deferred Tax Assets and Liabilities The components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: December 31, December 31, 2019 2018 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 113,419 $ 111,196 Inventory related 2,538 2,603 Intangibles assets 16,628 23,434 Provision for employee related obligations 984 1,169 Stock-based compensation expense 6,936 5,565 Deferred revenue 1,592 2,547 Property, plant and equipment 1,063 1,171 Allowance for doubtful accounts 217 609 Foreign currency losses 12 364 Research and development credit carry forwards 16,239 13,520 Other items 3,148 2,033 Gross deferred tax assets 162,776 164,211 Valuation allowance (151,771 ) (152,659 ) Total deferred tax assets $ 11,005 $ 11,552 Deferred tax liabilities Intangibles assets $ (7,245 ) $ (9,140 ) Property, plant and equipment (1,683 ) (2,736 ) Total deferred tax liabilities $ (8,928 ) $ (11,876 ) Net deferred tax liabilities $ 2,077 $ (324 ) The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, December 31, 2019 2018 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 2,118 $ 1,338 Deferred tax liabilities 41 1,662 Net deferred tax asset (liabilities) $ 2,077 $ (324 ) As of December 31, 2019 and 2018 the Company had tax net operating losses carry-forward of approximately $490.0 million and $479.0 million, respectively, related to its U.S. subsidiaries. The tax net operating losses carry-forward resulted in deferred tax assets of approximately $113.4 million and $111.2 million, as of December 31, 2019 and 2018, respectively. As a result of losses incurred by its U.S. subsidiaries in the last few years, and since the near-term realization of these assets is uncertain, the Company provided a full valuation allowance for its deferred tax assets related to its U.S. subsidiaries that are not expected to be realized. Upon the adoption of Accounting Standards Update (“ASU”) 2016-09, the Company recorded a cumulative-effect adjustment to its deferred tax asset related to its net operating losses of approximately $5.0 million as of January 1, 2017 offset with an increase to its valuation allowance with respect to previously unrecognized excess tax benefits. Under the new ASU, excess tax benefits or deficiencies related to stock option exercises and restricted stock unit vesting are recognized in the statement of operations. F-26 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. Included in the net deferred tax are net operating loss and credit carryovers of $127.9 million which expire in years ending from December 31, 2022 through December 31, 2038, with some losses expiring indefinitely, as discussed below. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In 2017, the Company revalued its valuation allowance and deferred tax assets at the statutory 21% rate that is in effect in 2018 and forward. The provisional impact of this rate change was recorded in the fourth quarter of 2017 and there was a reduction of $65.6 million in the valuation allowance, offset by a reduction of $65.6 million in the deferred tax assets. The accounting was completed in the fourth quarter of 2018. The Act introduced new intangible income rules, Global Intangible Low-Taxed Income (GILTI) and Foreign Derived Intangible Income (FDII). The Company has analyzed the impact of GILTI/FDII and determined that no impact can be recorded due to the U.S. subsidiaries’ net operating losses. Thus, the Company cannot elect to include these amounts in the measurement of its deferred taxes under U.S. GAAP. The Company believes that all future profits of its subsidiaries will be indefinitely reinvested or that there is no expectation to distribute any taxable dividends from these subsidiaries. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is estimated as an immaterial amount. b. Provision for Income Taxes Loss before income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows: 2019 2018 2017 (U.S. $ in thousands) Domestic $ (11,895 ) $ (17,848 ) $ (98 ) Foreign 4,751 9,634 (29,378 ) $ (7,144 ) $ (8,214 ) $ (29,476 ) F-27 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The components of income taxes for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 (U.S. $ in thousands) Current Domestic $ 3,392 $ (722 ) $ 10,574 Foreign 2,524 9,414 1,248 5,916 8,692 11,822 Deferred Domestic (2,007 ) (3,169 ) (4,497 ) Foreign (386 ) (787 ) 1,948 (2,393 ) (3,956 ) (2,549 ) Total income taxes $ 3,523 $ 4,736 $ 9,273 A reconciliation of the statutory income tax rate and the effective tax rate for the years ended December 31, 2019, 2018 and 2017 is set forth below: 2019 2018 2017 Statutory tax rate 23.0 % 23.0 % 24.0 % Approved and Privileged enterprise benefits 18.0 16.0 15.7 US Tax Act enactment — — (222.5 ) Stock compensation expense (21.0 ) (24.0 ) (5.3 ) Tax contingencies (57.1 ) (38.4 ) (30.8 ) Non-deductible acquisition expenses (1.4 ) (2.3 ) (0.6 ) Earning taxed under foreign law (14.9 ) (21.6 ) 43.3 Valuation Allowance — 6.4 144.4 Changes to the prior year’s tax assessment (2.7 ) (15.3 ) (1.2 ) Deferred Tax due to different tax rate 11.2 — — Non recurring Capital gain 11.5 — — Withholding tax (1.7 ) — — Other (2.6 ) (1.4 ) 1.5 Effective income tax rate (48.9 )% (57.6 )% (31.5 )% For the year ended December 31, 2019, the above rate reconciliation table reflects the impact of uncertain tax positions and prior year true-ups, offset by the geographic mix of foreign taxable income and loss. Uncertain tax positions Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. F-28 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: 2019 2018 2017 (U.S. $ in thousands) Balance at beginning of year 22,044 27,317 $ 18,000 Additions for tax positions related to the current year 2,336 12,321 8,777 Foreign currency impact 1,353 (2,000 ) 1,242 Adjustments for tax positions related tax settlements — (15,576 ) (687 ) Reduction of reserve for statute expirations (216 ) (18 ) (15 ) Balance at end of year $ 25,517 $ 22,044 $ 27,317 The Company’s accrual for estimated interest and penalties was $3.0 million as of December 31, 2019. The Company does not expect uncertain tax positions to change significantly over the next twelve months. The Company is subject to income taxes in the U.S., various states, Israel and certain other foreign jurisdictions. The Company files income tax returns in various jurisdictions with varying statutes of limitations. Tax returns of Stratasys Inc. submitted in the United States through 2012 tax year are considered to be final following the completion of the Internal Revenue Service examination. Tax returns of Stratasys Ltd. submitted in Israel through the 2015 tax year are considered to be final following the completion of the Israeli Tax Authorities examination upon audit. The expiration of the statute of limitations related to the various other foreign and state income tax returns that the Company and its subsidiaries file vary by state and foreign jurisdiction. c. Basis of taxation: The enacted statutory tax rates applicable to the Company’s major subsidiaries outside of Israel are as follows: Company incorporated in the U.S.—tax rate of approximately 21%. Company incorporated in Germany—tax rate of approximately 29%. Company incorporated in Hong Kong—tax rate of approximately 16.5%. A significant portion of the Company’s income is taxed in Israel. The following is a summary of how the Company’s income is taxed in Israel: Corporate tax rates in Israel are as follows: 2014 and 2015- 26.5%, 2016-25%, 2017-24% and 2018 and thereafter- 23%. The Company elected to compute its taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the Company’s taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of foreign exchange rate fluctuations (of the NIS in relation to the U.S. dollar) on the Company’s Israeli taxable income. Tax benefits under the Law for Encouragement of Capital Investments, 1959 (the “Investment Law”) Various industrial projects of the Company have been granted “Approved Enterprise” and “Beneficiary Enterprise” status, which provides certain benefits, including tax exemptions for undistributed income and reduced tax rates. Income not eligible for Approved Enterprise and Beneficiary Enterprise benefits is taxed at the regular corporate rate, which was 23% in 2019. The Company is a Foreign Investors Company, or FIC, as defined by the Investment Law. FICs are entitled to further reductions in the tax rate normally applicable to Approved Enterprises and Beneficiary Enterprises, depending on the level of foreign ownership. When foreign (non-Israeli) ownership equal or exceeds 90%, the Approved Enterprise and Beneficiary Enterprise income is either tax-exempt for a limit period between two to ten years depending on the location of the enterprise or taxable at a tax rate of 10% for a 10-year period. The Company cannot assure that it will continue to qualify as a FIC in the future or that the benefits described herein will be granted in the future. F-29 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS In the event of distribution of dividends from the said tax-exempt income during the tax exemption period as described above, the amount distributed will be subject to tax in respect of the amount of dividend distributed (grossed up to reflect such pre-tax income that it would have had to earn in order to distribute the dividend) at the corporate tax rate that would have been otherwise applicable if such income had not been tax-exempted under the alternative benefits program. This rate generally ranges from 10% to 25%, depending on the level of foreign investment in the company in each year, as explained above, Dividends paid out of income attributed to Approved Enterprise or Beneficiary Enterprise (or out of dividends received from a company whose income is attributed to an Approved or Beneficiary Enterprise) are generally subject to withholding tax at the source at the rate of 15%, unless a lower rate is provided in a treaty between Israel and the shareholder’s country of residence (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). The 15% tax rate is limited to dividends and distributions out of income derived during the benefits period and actually paid at any time up to 12 years thereafter. After this period, the withholding tax is applied at a rate of up to 30%, or at the lower rate under an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). In the case of an FIC, the 12-year limitation on reduced withholding tax on dividends does not apply. The entitlement to the above benefits is conditional upon the Company’s fulfilling the conditions stipulated by the Investment Law and regulations published thereunder. Should the Company fail to meet such requirements in the future, income attributable to its Approved Enterprise and Beneficiary Enterprise programs would be subject to the statutory Israeli corporate tax rate and the Company would be required to refund a portion of the tax benefits already received with respect to such programs. The refund will be subject to interest and index changes as applicable the law or other monetary penalty. The Company does not intend to distribute any amounts of its undistributed tax-exempt income as dividends, as it intends to reinvest its tax-exempt income within the Company. Accordingly, no deferred income taxes have been provided on income attributable to the Company’s Approved or Beneficiary Enterprise programs, as the undistributed tax exempt income is essentially permanent in duration. As of December 31, 2019, tax-exempt income of approximately $255 million is attributable to the Company’s various Approved and Beneficiary Enterprise programs. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income, and taxes of approximately $25.5 million would be incurred as of December 31, 2019. A January 2011 amendment to the Investment Law (the “2011 Amendment”) created alternative benefit tracks to those previously in place, as follows: an investment grants track designed for enterprises located in certain development zones and two new tax benefits tracks (“Preferred Enterprise” and “Special Preferred Enterprise”), which provide for application of a unified tax rate to all preferred income of the company, as defined in the Investment Law. The 2011 Amendment canceled the availability of the benefits granted in accordance with the provisions of the Investment Law prior to 2011 and, instead, introduced new benefits for income generated by a “Preferred Company” through its "Preferred Enterprise" (as such terms are defined in the Investment Law) effective as of January 1, 2011 and thereafter. A Preferred Company is defined as either (i) a company incorporated in Israel which is not wholly owned by a governmental entity, or (ii) a limited partnership that: (a) was registered under the Israeli Partnerships Ordinance, and (b) all of its limited partners are companies incorporated in Israel, but not all of them are governmental entities; which has, among other things, Preferred Enterprise status and is controlled and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company was entitled to a reduced corporate tax rate of 16% with respect to its preferred income attributed to its Preferred Enterprise, unless the Preferred Enterprise was located in a certain development zone, in which case the rate was 9%. In 2017 and thereafter, the corporate tax rate for Preferred Enterprise which is located in a certain development zone was decreased to 7.5%, while the reduced corporate tax rate for other development zones remains 16%. Dividends paid out of preferred income attributed to a Preferred Enterprise is generally subject to withholding tax at source at the rate of 20%, or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty will apply. F-30 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969 The Company is an “Industrial Company” as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. New Tax benefits under the 2017 Amendment that became effective on January 1, 2017. The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and was effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing tax beneficial programs under the Investment Law. The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a “Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income,” as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone A. In addition, a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain “Benefitted Intangible Assets” (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the National Authority for Technological Innovation, to which we refer as NATI. The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a “Special Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 6% on “Preferred Technology Income” regardless of the company’s geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefitted Intangible Assets” to a related foreign company if the Benefitted Intangible Assets were either developed by an Israeli company or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval from NATI. A Special Preferred Technology Enterprise that acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment Law. Dividends distributed by a Preferred Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company and other conditions are met, the withholding tax rate will be 4%. We are examining the impact of the 2017 Amendment and the degree to which we will qualify as a Preferred Technology Enterprise or Special Preferred Technology Enterprise, and the amount of Preferred Technology Income or other benefits that we may receive from the 2017 Amendment. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 10. Contingencies Patent Law-Based Claim On November 23, 2017, a former employee, whose employment had been terminated by the Company in 2008 and who had previously unsuccessfully filed a suit against the Company, brought an additional proceeding against the Company under Section 134 of the Israeli Patent Law seeking compensation and royalties for service inventions he invented while he served as an employee of the Company. In this new proceeding, the former employee claimed to be entitled to receive royalties in an amount equal to: (a) 20% of the benefits, revenues and /or savings generated by the Company in the past and in the future, including the rise in the value of the Company, as determined in the merger with Stratasys Inc., which took place in December 2012; (b) 20% of the gross profit generated by the Company in the past and 9% of the gross profit produced and that will be produced by the Company; (c) 20% of the gross profit generated by the Company in the past and the relative share of the former Objet entity of the Company in the total gross profit produced and that will be produced by the Company; or (d) 20% of the value of the service inventions at issue. The Company has successfully defended against the described proceeding, leading to its dismissal in February 2020, with no required payments to the former employee. The Company is a party to various other legal proceedings, the outcome of which, in the opinion of management, will not have a significant adverse effect on the financial position, profitability or cash flows of the Company. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 11. Equity a. Share capital The Company’s issued share capital is composed of ordinary shares NIS 0.01 par value per share. Ordinary shares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. The Company’s ordinary shares are traded in the United States on the Nasdaq Global Select Market under the ticker symbol “SSYS”. As of December 31, 2019 and 2018, there were 54,441 thousand ordinary shares and 53,881 thousand ordinary shares issued and outstanding, respectively. The increase in the outstanding and issued ordinary shares during 2019 was attributable to exercises of stock options and RSUs under the Company’s stock-based compensation plans. On January 1, 2020, the reserve pool under the 2012 plan was increased by 0.5 million shares. b. Stock-based compensation plans The Stratasys Ltd. 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), which became effective upon closing of the Stratasys-Objet merger, provides for the grant of options, restricted shares, RSUs, PSUs and other share-based awards to the Company’s and its subsidiaries’ respective directors, employees, officers, consultants, and to any other person whose services are considered valuable to the Company or any of its affiliates. Under the 2012 plan, options, RSUs and PSUs generally have a contractual term of ten years from the grant date. Options granted become exercisable and RSUs are vested over the requisite service period, which is normally a four-year period beginning on the grant date, subject to continued service to the Company. PSUs are vested only upon the achievement of certain pre-determined performance metrics. Once the performance metrics are met, vesting of PSUs is subject to continued service to the Company over the requisite service period, which is normally a two-year to four-year period. As of December 31, 2019, 0.9 million shares were available for future equity awards under the 2012 plan. Stock options A summary of the stock option activity for the year ended December 31, 2019 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of December 31, 2018 2,551,743 $ 30.82 Exercised (249,956 ) 20.54 Forfeited (340,255 ) 36.43 Options outstanding as of December 31, 2019 1,961,532 $ 31.16 Options exercisable as of December 31, 2019 1,585,035 $ 33.73 F-32 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table summarizes information about stock options outstanding at December 31, 2019: Range of Exercise Prices Outstanding options at December 31, 2019 Weighted- Average Remaining Contractual Life in Years Weighted- Average Exercise Price Exercisable options at December 31, 2019 Weighted- Average Exercise Price $ 2.74 - $ 19.59 33,828 8.12 $ 18.20 33,828 $ 18.20 $ 19.66 - $ 19.66 828,891 6.98 19.66 566,036 19.66 $ 19.96 - $ 23.41 523,812 7.23 22.05 415,233 22.25 $ 24.66 - $ 120.51 575,001 4.39 56.75 569,938 57.00 1,961,532 6.31 $ 31.16 1,585,035 $ 33.73 Aggregate intrinsic value (U.S. $ in thousands) $ 563 $ 405 As of December 31, 2019, the weighted-average remaining contractual life of exercisable options was 6.1 years. The total intrinsic value of options exercised during 2019, 2018 and 2017 was approximately $1.0 million, $0.6 million and $7.2 million, respectively. The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2018 and 2017. No options were granted during 2019. The following assumptions were applied in determining the options’ fair value on their grant date: 2018 2017 Risk-free interest rate 2.9%-3.1% 1.8%-2.2% Expected option term (years) 5.3-5.5 5.1-6.0 Expected share price volatility 52.0%-52.2% 52.6%-54.0% Dividend yield — — Weighted average grant date fair value $ 11.49 $ 11.10 As of December 31, 2019, the Company had 0.4 million unvested options. As of December 31, 2019, the unrecognized compensation cost related to all unvested, equity-classified stock options of $3.9 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 1.2 years. Restricted Stock Units and Performance Stock Units A summary of the Company’s RSUs and PSUs activity for the year ended December 31, 2019 is as follows: Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs and PSUs outstanding as of December 31, 2018 1,422,887 $ 20.17 Granted 1,613,282 26.50 Vested (309,642 ) 20.50 Forfeited (363,536 ) 22.32 Unvested RSUs and PSUs outstanding as of December 31, 2019 2,362,991 $ 24.10 F-33 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The total vesting-date value of equity classified RSUs vested during 2019 was $7.4 million. As of December 31, 2019, the unrecognized compensation cost related to all unvested equity classified RSUs and PSUs of $41.6 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 2.6 years. Stock-based compensation expense for stock options and equity classified RSUs included in the Company’s Statements of Operations and Comprehensive Loss were allocated as follows: 2019 2018 2017 (U.S. $ in thousands) Cost of sales $ 1,848 $ 1,474 $ 2,580 Research and development, net 5,167 3,215 3,503 Selling, general and administrative 13,549 10,997 11,639 Total stock-based compensation expenses $ 20,564 $ 15,686 $ 17,722 c. Accumulated other comprehensive loss The following tables present the changes in the components of accumulated other comprehensive loss, net of taxes for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive loss before reclassifications 1,548 (580 ) 968 Amounts reclassified from accumulated other comprehensive loss (931 ) — (931 ) Other comprehensive income (loss) 617 (580 ) 37 Balance as of December 31, 2019 $ (10 ) $ (7,706 ) $ (7,716 ) Year ended December 31, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive loss before reclassifications (1,814 ) (2,691 ) (4,505 ) Amounts reclassified from accumulated other comprehensive loss 857 2,918 3,775 Other comprehensive income (loss) (957 ) 227 (730 ) Balance as of December 31, 2018 $ (627 ) $ (7,126 ) $ (7,753 ) F-34 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year ended December 31, 2017 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2017 $ (24 ) $ (13,455 ) $ (13,479 ) Other comprehensive loss before reclassifications 1,315 5,834 7,149 Amounts reclassified from accumulated other comprehensive loss (961 ) 268 (693 ) Other comprehensive income (loss) 354 6,102 6,456 Balance as of December 31, 2017 $ 330 $ (7,353 ) $ (7,023 ) |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 12. Derivatives and Hedging Activities The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), the Euro and the Japanese Yen. Gains and losses on the hedging instruments offset losses and gains on the hedged items. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount December 31, December 31, December 31, December 31, Balance sheet location 2019 2018 2019 2018 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 63 $ 374 $ 11,001 $ 34,695 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 315 — 25,045 — Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (388 ) (196 ) 92,929 54,425 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (326 ) (628 ) 45,262 41,303 $ (336 ) $ (450 ) $ 174,237 $ 130,423 Foreign exchange contracts not designated as hedging instruments As of December 31, 2019, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $103.9 million and were used to reduce foreign currency exposures of the Euro, New Israeli Shekel (the “NIS”), Japanese Yen, Korean Won and Chinese Yuan. With respect to such derivatives, gain of $2.9 million and gain of $2.0 million were recognized under financial income, net for the years ended December 31, 2019 and 2018, respectively. Such gains partially offset the revaluation losses of the balance sheet items, which are also recognized under financial income, net. F-35 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Cash Flow Hedging—Hedges of Forecasted Foreign Currency Payroll As of December 31, 2019 and 2018, the Company had in effect foreign exchange forward contracts for the conversion of $25.0 million and $41.3 million, respectively, into NIS. These foreign exchange forward contracts were designated as cash flow hedge for accounting purposes. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in New Israeli Shekels. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. These contracts mature through December 2020. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue We transact business in U.S. Dollars and in various other currencies. We may use foreign exchange or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months. We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. As of December 31, 2019, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of Euro 40.0 million in USD. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in fair value of these cash flow hedges in accumulated other comprehensive income (loss) in our consolidated balance sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to the same income statement line item as the hedged item. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded under financial income. Cost of sales Research and development, net Selling, general and administrative Financial income, net Other comprehensive income December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ 322,388 $ 338,013 $ 94,253 $ 98,964 $ 231,138 $ 235,107 $ (4,555 ) $ (633 ) $ 37 $ (730 ) Foreign exchange contracts designated as hedging instrument (24 ) 12 (382 ) 303 (525 ) 542 — — 617 (957 ) Foreign exchange contracts not designated as hedging instrument — — — — — — (2,868 ) (1,956 ) — — $ 322,364 $ 338,025 $ 93,871 $ 99,267 $ 230,613 $ 235,649 $ (7,423 ) $ (2,589 ) $ 654 $ (1,687 ) |
Entity-Wide Disclosure
Entity-Wide Disclosure | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Entity-Wide Disclosure | Note 13. Entity-Wide Disclosure Revenues by geographic area for the years ended December 31, 2019, 2018 and 2017 were as follows*: Year ended December 31, 2019 2018 2017 (U.S. $ in thousands) Americas (primarily the United States) $ 415,862 $ 409,741 $ 413,326 EMEA 124,967 147,162 148,279 Asia Pacific 95,251 106,334 106,757 $ 636,080 $ 663,237 $ 668,362 * Net sales are attributed to geographic areas based on the location of customer. No single customer accounted for 10% or more of Company’s total net sales, or Company’s net accounts receivable, in any fiscal year presented. Property, plant and equipment by geographical area were as follows: December 31, 2019 2018 (U.S. $ in thousands) Americas (primarily the United States) $ 58,169 $ 63,714 EMEA $ 127,234 122,678 Asia Pacific $ 4,303 1,758 $ 189,706 $ 188,150 Property, plant and equipment that were located in Israel amounted to $110.9 million and $105.3 million for the years ended December 31, 2019 and 2018, respectively and are included under the EMEA region in the above table. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 14. Earnings per Share The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2019 2018 2017 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (10,849 ) $ (10,964 ) $ (39,981 ) Adjustment of redeemable non-controlling interest to redemption amount — (935 ) — Net loss attributable to Stratasys Ltd. for basic loss per share (10,849 ) (11,899 ) (39,981 ) Denominator: Weighted average shares – denominator for basic net loss per share 54,260 53,751 52,959 Net loss per share Basic $ (0.20 ) $ (0.22 ) $ (0.75 ) Diluted $ (0.20 ) $ (0.22 ) $ (0.75 ) The computation of diluted net loss per share for the years ended December 31, 2019, 2018 and 2017 excluded share awards of 4.3 million, 4.0 million and 3.8 million, respectively, because their inclusion would have had an anti-dilutive effect on the diluted net loss per share. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 15. Leases: Leases prior to the adoption of the new Lease Standard Stratasys leases real estate, cars and equipment for use in its operations, which are classified as operating leases. In addition to rent, the leases may require the Company to pay directly for fees, insurance, maintenance and other operating expenses. Rental expense for the year ended December 31, 2018 and 2017 were $8.2 million and $10.0 million, respectively. Leases following the adoption of the new Lease Standard The Company adopted the new lease accounting guidance on January 1, 2019, using a modified retrospective transition approach, with certain practical expedients, and as a result did not adjust prior periods. Following the adoption, the Company recognized right-of-use assets of $27.4 million and lease liabilities of $27.9 million for its operating leases. The Company does not have finance leases. The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, The Company classifies the lease as a finance lease; otherwise, the Company classifies the lease as an operating lease. When determining lease classification, the Company’s approach in assessing two of the mentioned criteria is: (i) generally 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in the consolidated balance sheet. ROU assets represent Stratasys's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition, but recognizes lease expenses over the lease term on a straight-line basis. The Company also elected the practical expedient to not separate lease and non-lease components for all of the Company leases, other than leases of real estate. F-38 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Lease terms will include options to extend or terminate the lease when it is reasonably certain that Stratasys will exercise or not exercise the option to renew or terminate the lease. The Company is a party to several lease agreements for its facilities, the latest of which has been extended until midst 2026. The Company has the option to extend certain agreements for additional periods, the earliest of which is until the end of January 2024 and the latest is until the end of October 2028. During the extended lease period, the aggregate annually rental payments will increase by 2%-3% each year. The company also leases vehicle for its employees with different commencement and ending periods in Israel and Germany solely. Operating lease expenses are recognized on a straight-line basis. The company’s operating lease cost for the twelve months ended December 31, 2019 were as follows: December 31, 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate 8,564 Total operating lease cost 8,564 Cash flow and other information related to operating leases as follows: December 31, 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities 7,246 December 31, 2019 (U.S. $ in thousands) Weighted-average remaining lease term — operating leases 3.18 Weighted-average discount rate — operating leases 4.72 % F-39 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities of operating lease liabilities were as follows: December 31, 2019 (U.S. $ in thousands) 2020 9,456 2021 6,853 2022 3,657 2023 2,042 2024 1,018 2025 and thereafter 116 Total operating lease payments 23,142 Less: imputed interest ( 1,406 ) Present value of lease liabilities 21,737 December 31, 2018 (U.S. $ in thousands) 2019 8,445 2020 6,440 2021 4,362 2022 3,265 2023 1,894 Thereafter 593 24,999 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended December 31, 2019, 2018, and 2017 (U.S. $ in thousands): COLUMN A Column B Column C - Additions Column D - Deductions Column E Balances at Charged to Balances beginning costs and Charged to Charged to Charged to at end Description of period expenses other accounts income other accounts of period Reserve for bad debts and allowances Year ended December 31, 2019 $ 2,799 $ 574 $ — $ 2,020 $ — $ 1,353 Year ended December 31, 2018 $ 2,735 $ 1,657 $ — $ 1,593 $ — $ 2,799 Year ended December 31, 2017 $ 1,687 $ 1,665 $ — $ 617 $ — $ 2,735 Valuation allowances on deferred tax assets Year ended December 31, 2019 $ 152,659 $ — $ — $ — $ 888 $ 151,771 Year ended December 31, 2018 $ 152,062 $ 597 $ — $ — $ — $ 152,659 Year ended December 31, 2017 $ 201,376 $ 22,998 $ — $ 65,572 $ 6,740 $ 152,062 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Stratasys Ltd., and its subsidiaries. All intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. |
Functional Currency and Foreign Currency Transactions | Functional Currency and Foreign Currency Transactions A major part of the Company’s operations is carried out by Stratasys Ltd. in Israel and its subsidiaries in the United States. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of other subsidiaries is generally their local currency. The financial statements of those subsidiaries are included in the consolidated financial statements, based on translation into U.S. dollars. Assets and liabilities accounts are translated at year-end exchange rates, while revenues and expenses accounts are translated at average exchange rates during the year. The remeasurement adjustments of foreign currencies translation are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated financial statements. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income, net in the consolidated statements of operations and comprehensive loss. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may have a material impact on the Company’s financial statements. As applicable to these consolidated financial statements, the most significant estimates relate to revenue recognition, inventories measurement, recoverability of intangibles and goodwill, valuation allowance and uncertain tax positions. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. F-10 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Observable inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy categorizes into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, with maturities of ninety days or less when acquired, are considered to be cash equivalents. |
Accounts Receivable and Net Investment in Sales-Type Leases | Accounts Receivable and Net Investment in Sales-Type Leases Accounts receivable and net investment in sales-type leases are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company carries its investment in sales-type leases based on discounting the minimum lease payments by the interest rate implicit in the lease and less an allowance for doubtful accounts. On a periodic basis, the Company evaluates the collectability of its accounts receivable and its investment in sales-type leases and establishes an allowance for doubtful accounts based on past write-offs and collections, current credit conditions, the age of the balances and economic factors that may affect a customer’s ability to pay. The Company evaluates a number of factors to assess collectability, including an evaluation of the creditworthiness of the specific customer, past due amounts, payment history, and current economic conditions. Allowance for doubtful accounts due to the Company’s accounts receivable amounted to $939 thousand and $1,110 thousand as of December 31, 2019 and 2018, respectively. Allowance for doubtful accounts due to the Company’s investment in sales-type leases amounted to $414 thousand and $1,689 thousand as of December 31, 2019 and 2018, respectively. Changes in the allowance for doubtful accounts are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for doubtful accounts when management deems the accounts are no longer collectible. |
Derivative Instruments and Hedge Accounting | Derivative Instruments and Hedge Accounting The Company conducts its operations globally and may be exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. As part of the Company’s risk management strategy, the Company enters into transactions involving foreign currency exchange derivative financial instruments. For its non-hedging transactions, the Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. The Company does not enter into derivative transactions for trading purposes. The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at their fair value. Derivatives in a gain position are reported in other current assets in the consolidated balance sheets and derivatives in a loss position are recorded in accrued expenses and other current liabilities in the consolidated balance sheets, on a gross basis. On the date that the Company enters into a derivative contract, it designates the derivative for accounting purposes, as either a hedging instrument which qualifies for hedge accounting or as a non-hedging instrument which does not qualify for hedge accounting. In order to qualify for hedge accounting, the Company formally documents at the inception of each hedging relationship the hedging instrument, the hedged item, the risk management objective and strategy for undertaking each hedging relationship, and the method used to assess hedge effectiveness. F-11 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For each hedging instrument that hedges the exposure to variability in expected future cash flows and that is designated and effective as a cash flow hedge, both the effective and ineffective portion of the unrealized gain or loss on the derivative instrument are reported as a component of accumulated other comprehensive loss in the Company’s shareholders’ equity and are reclassified into earnings in the same period and in the same line item in which the hedged transaction affects earnings. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income, net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. The Company provided inventory write-downs for obsolescence and excess inventories in amounts of $11.7 million and $11.2 million as of December 31, 2019 and 2018, respectively. |
Non-Marketable Equity Investments | Non-Marketable Equity Investments The Company’s investments in non-marketable equity securities in which it has the ability to exercise significant influence, but does not control through variable interests or voting interests, are accounted for under the equity method of accounting and presented as other non-current assets in the Company’s consolidated balance sheets. Under the equity method, the Company recognizes its proportionate share of the comprehensive income or loss of the investee. The Company’s share of income and losses from equity method investments is included in share in losses of associated company. Other non-marketable equity securities without readily determinable fair value in which the Company does not have a controlling interest or significant influence are recorded at their original cost and adjusted for observable price changes for identical or similar instruments less any impairment. These equity securities are presented as other non-current assets in the Company’s consolidated balance sheets. The Company reviews its unconsolidated non-marketable equity investments for potential impairment or other adjustments, which generally involves an analysis of the facts and changes in circumstances influencing the investments. There was no impairment of unconsolidated non-marketable equity investments during the years ended December 31, 2019, 2018 and 2017. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the lease term (including any renewal periods, if appropriate) or the estimated useful life of the asset. Repairs and maintenance are charged to expense as incurred, while betterments and improvements that extend the useful life or add functionality of property, plant and equipment are capitalized. F-12 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Depreciation is computed primarily over the following periods: Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 The Company reviews the carrying amounts of property, plant and equipment for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the assets or asset groups with the related estimated undiscounted future cash flows. In the event impairment exists, an impairment charge is recorded at the amount by which the carrying amount of the asset or asset group exceeds the fair value. In addition, the remaining depreciation period for the impaired asset would be reassessed and, if necessary, revised. |
Other Intangible Assets, net | Other Intangible Assets, net Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 8 Trade names 9 Customer relationships 7 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of sales. Amortization of trade names, customer relationships and patents are recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. During the years ended December 31, 2018 and 2017, the Company recorded impairment charges of $2.2 million in each of the two years, related to its definite life intangible assets. No impairment charges were recorded during 2019. Refer to Note 8 for further information. |
Goodwill | Goodwill Goodwill reflects the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter at the reporting unit level, or whenever events or circumstances present an indication of potential impairment which requires an interim goodwill impairment analysis. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. F-13 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company performs a qualitative assessment and concludes that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the impairment test is not required. However, if the Company concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. The evaluation of goodwill impairment requires the Company to make assumptions about future cash flows of the reporting unit being evaluated that include, among others, growth in revenues, level of operating expenses and cost of capital. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. Refer to Note 7 for further information. |
Retirement Plans and Employee Rights Upon Termination | Retirement Plans and Employee Rights Upon Termination Under Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 ("Section 14"), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control and management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid. Severance pay liabilities with respect to for the Company’s employees in Israel who are not subject to Section 14, as well as employees who have special contractual arrangements, are provided for in the Company’s consolidated financial statements based on the length of time that they work for the Israeli entity and their latest monthly salary. The Company’s liabilities for those Israeli employees, in the amounts of $4.2 million and $4.0 million as of December 31, 2019 and 2018, respectively, are presented as other non-current liabilities in the Company’s consolidated balance sheets. These liabilities are recorded as if it was payable at each balance sheet date. These liabilities are partially funded by the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. As of December 31, 2019 and 2018, the Company had $3.3 million and $3.1 million, respectively, deposited in these insurance policies and pension funds. These policies are the Company’s assets. However, under employment agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In addition, the Company has liabilities for severance payments to its employees in other jurisdictions in accordance with local laws and practices of the countries in which they are employed. Severance expenses for the years ended December 31, 2019, 2018 and 2017 were $4.0 million, $4.1 million and $3.1 million, respectively. For its employees in the United States, the Company has a defined contribution retirement plan (the “Plan”) under the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) that covers eligible U.S. employees as defined in the Plan. Participants may elect to contribute both pre-tax or after-tax (“Roth”) up to 50% of annual taxable compensation, as defined by the Plan, up to a maximum amount prescribed by the Code. The Company, at its discretion, makes matching contributions equal 4% of the participant’s annual compensation. For the years ended December 31, 2019, 2018 and 2017 the Company made 401(k) Plan contributions of approximately $4.2 million, $3.2 million and $3.7 million respectively. |
Contingent Liabilities | Contingent Liabilities The Company is subject to various legal proceedings that arise from time to time in the ordinary course of business. The outcomes of the legal proceedings that are pending as of the date the financial statements are issued are subject to significant uncertainty. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that loss would be incurred and the amount of the liability can be reasonably estimated, then the Company would record an accrued expense in the Company’s financial statements based on its best estimate. Loss contingencies considered to be remote by management are generally not disclosed unless material. The respective legal fees are expensed as incurred. |
Redeemable Non-controlling Interests | Redeemable Non-controlling Interests Non-controlling interests with embedded redemption features, such as put options, whose settlement is not at the Company’s discretion, are considered redeemable non-controlling interests. Redeemable non-controlling interests are considered to be temporary equity and are therefore presented as a mezzanine section between liabilities and equity on the Company’s consolidated balance sheets. Redeemable non-controlling interests are measured at the greater of the initial carrying amount adjusted for the non-controlling interest’s share of comprehensive income or loss or its redemption value. Adjustments of redeemable non-controlling interest to its redemption value are recorded through additional paid-in capital. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted the new accounting standard related to the recognition of revenue in contracts with customers using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Accordingly, results for reporting periods beginning after January 1, 2018 are presented under the new accounting standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous revenue recognition guidance. The impacts to adjust the results for 2018 to the previous revenue recognition standard were not material. The adoption of the new revenue recognition standard, resulting in an increase of $1.4 million in retained earnings with a corresponding effect on other non-current assets for the cumulative-effect adjustments recorded due to the deferral and amortization of incremental costs incurred to obtain a contract as of the date of adoption. The Company derives revenues from sales of additive manufacturing systems, consumables and services. The Company sells its products directly through its sales force, independent sales agents and indirectly through authorized resellers. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services to the end customer or to the reseller. The amount of consideration is usually at fixed price at the contract inception. Consideration from Shipping and handling are recorded on a gross basis within product revenue. Revenues are recorded net of any taxes assessed by various government entities, such as sales, use and value-added taxes. F-15 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Revenue from products, which consist of systems and consumables, is recognized when the customer has obtained control of the goods, generally at a point in time upon shipment or once delivery and risk of loss has transferred to the customer. The Company recognizes revenue on sales to resellers when the reseller has economic substance apart from the Company and the reseller is considered the principal for the transaction with the end-user customer. Service revenue derives from service type warranty and from the Company’s direct manufacturing parts services. Revenue from service is recognized ratably on a straight-line basis over the time of the service, as control is transferred over time or as services are performed if not under contract. The company enters into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources, and (ii) the Company’s promise to transfer the products or services to the customer is separately identifiable from other promises in the contract. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. In assessing collectability as part of the revenue recognition process, the Company considers a number of factors in the evaluation of the creditworthiness of the customer, including past due amounts, payment history and financial condition. In some cases where collectability is not assured, payment terms are set partially or entirely as prepayment or customers may be required to furnish letters of credit. See Note 3 for additional information related to disaggregation of revenue and other. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are classified as cost of revenues. |
Advertising | Advertising Advertising costs are expensed as incurred and were approximately $16.2 million, $15.9 million and $14.2 million, for the years ended December 31, 2019, 2018 and 2017, respectively. |
Research and Development Costs | Research and Development Costs Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. F-16 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Deferred taxes have not been provided on the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. 2) Dividends distributable from the income of foreign companies as the Company does not expect these companies to distribute dividends in the foreseeable future. If these dividends were to be paid, the Company would have to pay additional taxes at a rate of up to 25% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. 3) Amounts of tax-exempt income generated from the Company’s current Approved Enterprises (see note 9c), as the Company intends to permanently reinvest these profits and does not intend to distribute dividends from such income. If these dividends were to be paid, the Company would have to pay additional taxes at a rate up to 10% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. |
Valuation Allowances | Valuation Allowances Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In the determination of the appropriate valuation allowances, the Company considers future reversals of existing taxable temporary differences, the most recent projections of future business results, prior earnings history, carryback and carry forward and prudent tax strategies that may enhance the likelihood of realization of a deferred tax asset. Assessments for the realization of deferred tax assets made at a given balance sheet date are subject to change in the future, particularly if earnings of a subsidiary are significantly higher or lower than expected, or if the Company takes operational or tax positions that could impact the future taxable earnings of a subsidiary. |
Uncertain Tax Positions | Uncertain Tax Positions The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is performed only if the tax position meets the more-likely-than-not recognition threshold and is to measure the tax benefit as the amount which is more than 50% likely of being realized upon ultimate settlement. The Company reevaluates these tax positions quarterly and makes adjustments as required. The liabilities relating to uncertain tax positions are classified as current in the consolidated balance sheets to the extent the Company anticipates making payments within one year. The Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions under the provision for income taxes. The Company presents unrecognized tax benefits as a reduction to deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward that are available, under the tax law of the applicable jurisdiction, to offset any additional income taxes that would result from the settlement of a tax position. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for its equity classified stock-based awards, including stock-based option awards, restricted stock units (“RSUs”) and performance stock units ("PSUs") under the Stratasys Ltd. 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) based on estimated fair values on the grant date. The Company calculates the fair value of stock-based option awards on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The computation of expected volatility is based on historical volatility of the Company’s shares. The expected option term is calculated using the simplified method , F-17 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Each of the above factors requires the Company to use judgment and make estimates in determining the percentages and time periods used for the calculation. If the Company were to use different percentages or time periods, the fair value of stock-based option awards could be different. The fair values of the Company’s RSUs and PSUs are measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes compensation expenses for its stock-based option awards and RSUs on a straight-line basis over the requisite service period (primarily a four-year period). The Company recognizes compensation expenses for its PSUs based on the probability that the performance metrics will be achieved over the vesting period. At each reporting period the Company evaluates the probability that its PSUs will be earned and adjust its previously recognized compensation expense as necessary. If the achievement of the respective performance metrics is not probable or the respective performance are not met the Company reverses its previously recognized compensation expense. Effective January 1, 2017, the Company adopted an ASU which simplifies certain aspects of the accounting for share-based payments, including, among other items, accounting for income taxes and allowing an entity to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures. The total cumulative-effect adjustment to retained earnings as of January 1, 2017 was immaterial. Prior periods have not been restated. |
Restructuring | Restructuring The Company may incur restructuring charges in connection with certain initiatives designed to adjust the Company’s cost and operating structure, improve efficiencies across the Company and to better align with the Company’s long-term strategy and overall market conditions. Restructuring charges include employee severance and associated termination costs related to the reduction of workforce, costs related to facilities closures, impairment charges of the respective long-lived assets and contract termination costs. Restructuring charges for employees’ termination costs are recognized when the required actions to execute the restructuring initiative were performed and the initiatives are probable and costs are estimable. Restructuring charges for facilities and contract terminations are recognized when the Company ceased using the rights conveyed by the contract. Significant judgments and estimates are involved in estimating the impact of restructuring plans on the Company’s consolidated financial statements. Actual results may differ from these estimates. |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income (loss) attributable to ordinary shareholders of Stratasys Ltd., including adjustment of redeemable non-controlling interest to its redemption amount, by the weighted average number of ordinary shares (including fully vested RSUs and PSUs) outstanding for the reporting periods. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested RSUs using the treasury stock method. PSUs are considered contingently issuable shares for diluted earnings per share purposes and the dilutive impact, if any, is not included in the weighted average shares until the performance conditions are met. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short term deposits, trade receivables and foreign currency exchange forward contracts. Most of the Company’s cash and cash equivalents are invested in U.S. dollar instruments with major banks in the U.S., Israel and Europe. Management believes that the credit risk with respect to the financial institutions that hold the Company’s cash and cash equivalents is low. Concentration of credit risk with respect to accounts receivable is limited due to the relatively large number of customers and their wide geographic distribution. In addition, the Company seeks to mitigate its credit exposures to its accounts receivable by credit limits, credit insurance, ongoing credit evaluation and account monitoring procedures. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no net effect on previously reported results of operations. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements Accounting Pronouncements Adopted in 2019 In June 2018, the Financial Accounting Standards Board (“FASB”) issued a new Accounting Standards Update (“ASU”) which substantially aligns the measurement and classification guidance for share-based payments to non-employees with the guidance for share-based payments to employees. That ASU also clarifies that any share-based payment issued to a customer should be evaluated based upon the new revenue recognition standard. The new ASU required a modified retrospective transition approach. The Company adopted this guidance effective January 1, 2019, with no material impact on its consolidated financial statements. In August 2017, the FASB issued an ASU which simplifies the designation and measurement requirements of hedge accounting in certain situations and allows companies to better align their hedge accounting with their risk management activities. The ASU also eases certain hedge effectiveness assessment requirements, expands the eligibility of hedging strategies that may qualify for hedge accounting and modifies certain presentation and disclosure requirements. The Company adopted this guidance effective January 1, 2019, with no material impact on its consolidated financial statements. In February 2016, the FASB issued a new ASU which amended its lease accounting guidance. Under the new lease accounting guidance, lessees are required to recognize a right-of-use asset and a lease liability for all leases, including leases classified as operating leases. The lease liability and the right-of-use asset are measured based on the present value of the lease payments. In addition, disclosures of qualitative and quantitative information about leasing arrangements are required. The new lease accounting guidance also contains amended guidance regarding the identification of embedded leases in service contracts and the identification of lease and non-lease components of an arrangement. The Company adopted this guidance and all the related amendments on January 1, 2019 (See Note 15). Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In August 2018, the FASB issued an ASU that clarifies the accounting for implementation costs in cloud computing arrangements. This ASU requires the implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company expects to adopt this guidance effective January 1, 2020 and do not expect it to have a material impact on its consolidated financial statements. In June 2016, the FASB issued an ASU that supersedes the existing impairment model for most financial assets to a current expected credit loss model. The new guidance requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. The ASU also requires that credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company expects to adopt this guidance effective January 1, 2020 and do not expect it to have a material impact on its consolidated financial statements. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Depreciation is computed primarily over the following periods: Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 |
Schedule of useful lives of intangible assets | Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 8 Trade names 9 Customer relationships 7 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregation of Revenues | The following table present the Company’s revenues disaggregated by geographical region (based on the Company's customers’ location) and revenue type for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (U.S. $ in thousands) Americas Products $ 257,119 251,589 $ 263,212 Service 158,743 158,152 150,114 Total Americas 415,862 409,741 413,326 EMEA Products 98,693 119,151 123,616 Service 26,274 28,011 24,663 Total EMEA 124,967 147,162 148,279 Asia Pacific Products 74,934 85,764 87,458 Service 20,317 20,570 19,299 Total Asia Pacific 95,251 106,334 106,757 Total Revenues $ 636,080 $ 663,237 $ 668,362 F-21 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table present the Company’s revenues disaggregated based on the timing of revenue recognize for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 Revenues recognized in point in time from: Products $ 430,746 $ 456,504 $ 474,286 Services 43,885 130,973 120,531 Total revenues recognized in point in time 474,631 587,477 594,817 Revenues recognized over time from: Services 161,449 75,760 73,545 Total revenues recognized over time 161,449 75,760 73,545 Total Revenues $ 636,080 $ 663,237 $ 668,362 |
Schedule of Changes in Deferred Revenue | Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of December 31, 2019 and 2018 were as follows: December 31, December 31, 2019 2018 U. S. $ in thousands Deferred revenue* 68,307 72,387 *Includes $16.0 million and $18.4 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2019 and December 31, 2018, respectively. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Carried at Fair Value on a Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, on its consolidated balance sheets: December 31, 2019 December 31, 2018 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 63 $ 374 Foreign exchange forward contracts designated as hedging instruments 315 — Liabilities: Foreign exchange forward contracts not designated as hedging instruments (388 ) (196 ) Foreign exchange forward contracts designated as hedging instruments (326 ) (628 ) $ (336 ) $ (450 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, December 31, 2019 2018 U.S. $ in thousands Finished goods $ 87,967 $ 61,391 Work-in-process 3,106 2,616 Raw materials 77,431 59,517 168,504 123,524 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following: December 31, December 31, 2019 2018 (U.S. $ in thousands) Machinery and equipment $ 140,413 $ 134,708 Buildings and improvements 149,022 139,666 Computer equipment and software 46,900 49,991 Office equipment, furniture and fixtures 13,780 17,616 Land 19,058 19,111 369,173 361,092 Accumulated depreciation (180,769 ) (173,437 ) 188,404 187,655 Construction work in progress 1,302 495 $ 189,706 $ 188,150 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract]. | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 (U.S. $ in thousands ) Balance at January 1, $ 385,849 $ 387,108 Currency translation adjustments and disposition (191 ) $ (1,259 ) Balance at December 31, $ 385,658 $ 385,849 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Intangible Assets [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following: December 31, 2019 December 31, 2018 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,100 $ (252,136 ) $ 46,964 $ 299,100 $ (236,375 ) $ 62,725 Patents 15,142 (7,067 ) 8,075 10,127 (5,752 ) 4,375 Trademarks and trade names 25,991 (19,966 ) 6,025 26,212 (19,067 ) 7,145 Customer relationships 102,936 (76,813 ) 26,123 102,984 (70,353 ) 32,631 Capitalized software development costs 18,630 (18,489 ) 141 19,540 (19,142 ) 398 $ 461,799 $ ( 374,471 ) $ 87,328 $ 457,963 $ ( 350,689 ) $ 107,274 |
Schedule of Estimated Future Amortization Expense Relating to Definite Life Intangible Assets | As of December 31, 2019, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expense Year ending December 31, (U.S. $ in thousands) 2020 $ 24,792 2021 24,667 2022 24,598 2023 7,662 2024 3,605 Thereafter 2,004 Total $ 87,328 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Company's Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: December 31, December 31, 2019 2018 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 113,419 $ 111,196 Inventory related 2,538 2,603 Intangibles assets 16,628 23,434 Provision for employee related obligations 984 1,169 Stock-based compensation expense 6,936 5,565 Deferred revenue 1,592 2,547 Property, plant and equipment 1,063 1,171 Allowance for doubtful accounts 217 609 Foreign currency losses 12 364 Research and development credit carry forwards 16,239 13,520 Other items 3,148 2,033 Gross deferred tax assets 162,776 164,211 Valuation allowance (151,771 ) (152,659 ) Total deferred tax assets $ 11,005 $ 11,552 Deferred tax liabilities Intangibles assets $ (7,245 ) $ (9,140 ) Property, plant and equipment (1,683 ) (2,736 ) Total deferred tax liabilities $ (8,928 ) $ (11,876 ) Net deferred tax liabilities $ 2,077 $ (324 ) |
Schedule of Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets | The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, December 31, 2019 2018 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 2,118 $ 1,338 Deferred tax liabilities 41 1,662 Net deferred tax asset (liabilities) $ 2,077 $ (324 ) |
Schedule of loss before Income Taxes | Loss before income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows: 2019 2018 2017 (U.S. $ in thousands) Domestic $ (11,895 ) $ (17,848 ) $ (98 ) Foreign 4,751 9,634 (29,378 ) $ (7,144 ) $ (8,214 ) $ (29,476 ) |
Schedule of Components of Income Taxes | The components of income taxes for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 (U.S. $ in thousands) Current Domestic $ 3,392 $ (722 ) $ 10,574 Foreign 2,524 9,414 1,248 5,916 8,692 11,822 Deferred Domestic (2,007 ) (3,169 ) (4,497 ) Foreign (386 ) (787 ) 1,948 (2,393 ) (3,956 ) (2,549 ) Total income taxes $ 3,523 $ 4,736 $ 9,273 |
Schedule of Reconciliation of Income Tax Rate | A reconciliation of the statutory income tax rate and the effective tax rate for the years ended December 31, 2019, 2018 and 2017 is set forth below: 2019 2018 2017 Statutory tax rate 23.0 % 23.0 % 24.0 % Approved and Privileged enterprise benefits 18.0 16.0 15.7 US Tax Act enactment — — (222.5 ) Stock compensation expense (21.0 ) (24.0 ) (5.3 ) Tax contingencies (57.1 ) (38.4 ) (30.8 ) Non-deductible acquisition expenses (1.4 ) (2.3 ) (0.6 ) Earning taxed under foreign law (14.9 ) (21.6 ) 43.3 Valuation Allowance — 6.4 144.4 Changes to the prior year’s tax assessment (2.7 ) (15.3 ) (1.2 ) Deferred Tax due to different tax rate 11.2 — — Non recurring Capital gain 11.5 — — Withholding tax (1.7 ) — — Other (2.6 ) (1.4 ) 1.5 Effective income tax rate (48.9 )% (57.6 )% (31.5 )% |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: 2019 2018 2017 (U.S. $ in thousands) Balance at beginning of year 22,044 27,317 $ 18,000 Additions for tax positions related to the current year 2,336 12,321 8,777 Foreign currency impact 1,353 (2,000 ) 1,242 Adjustments for tax positions related tax settlements — (15,576 ) (687 ) Reduction of reserve for statute expirations (216 ) (18 ) (15 ) Balance at end of year $ 25,517 $ 22,044 $ 27,317 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity for the year ended December 31, 2019 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of December 31, 2018 2,551,743 $ 30.82 Exercised (249,956 ) 20.54 Forfeited (340,255 ) 36.43 Options outstanding as of December 31, 2019 1,961,532 $ 31.16 Options exercisable as of December 31, 2019 1,585,035 $ 33.73 |
Schedule of Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2019: Range of Exercise Prices Outstanding options at December 31, 2019 Weighted- Average Remaining Contractual Life in Years Weighted- Average Exercise Price Exercisable options at December 31, 2019 Weighted- Average Exercise Price $ 2.74 - $ 19.59 33,828 8.12 $ 18.20 33,828 $ 18.20 $ 19.66 - $ 19.66 828,891 6.98 19.66 566,036 19.66 $ 19.96 - $ 23.41 523,812 7.23 22.05 415,233 22.25 $ 24.66 - $ 120.51 575,001 4.39 56.75 569,938 57.00 1,961,532 6.31 $ 31.16 1,585,035 $ 33.73 Aggregate intrinsic value (U.S. $ in thousands) $ 563 $ 405 |
Schedule of Stock Option Assumptions | The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2018 and 2017. No options were granted during 2019. The following assumptions were applied in determining the options’ fair value on their grant date: 2018 2017 Risk-free interest rate 2.9%-3.1% 1.8%-2.2% Expected option term (years) 5.3-5.5 5.1-6.0 Expected share price volatility 52.0%-52.2% 52.6%-54.0% Dividend yield — — Weighted average grant date fair value $ 11.49 $ 11.10 |
Summary of RSUs and PSUs Activity | A summary of the Company’s RSUs and PSUs activity for the year ended December 31, 2019 is as follows: Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs and PSUs outstanding as of December 31, 2018 1,422,887 $ 20.17 Granted 1,613,282 26.50 Vested (309,642 ) 20.50 Forfeited (363,536 ) 22.32 Unvested RSUs and PSUs outstanding as of December 31, 2019 2,362,991 $ 24.10 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for stock options and equity classified RSUs included in the Company’s Statements of Operations and Comprehensive Loss were allocated as follows: 2019 2018 2017 (U.S. $ in thousands) Cost of sales $ 1,848 $ 1,474 $ 2,580 Research and development, net 5,167 3,215 3,503 Selling, general and administrative 13,549 10,997 11,639 Total stock-based compensation expenses $ 20,564 $ 15,686 $ 17,722 |
Schedule of Accumulated Other Comprehensive Loss | The following tables present the changes in the components of accumulated other comprehensive loss, net of taxes for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive loss before reclassifications 1,548 (580 ) 968 Amounts reclassified from accumulated other comprehensive loss (931 ) — (931 ) Other comprehensive income (loss) 617 (580 ) 37 Balance as of December 31, 2019 $ (10 ) $ (7,706 ) $ (7,716 ) Year ended December 31, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive loss before reclassifications (1,814 ) (2,691 ) (4,505 ) Amounts reclassified from accumulated other comprehensive loss 857 2,918 3,775 Other comprehensive income (loss) (957 ) 227 (730 ) Balance as of December 31, 2018 $ (627 ) $ (7,126 ) $ (7,753 ) F-34 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year ended December 31, 2017 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2017 $ (24 ) $ (13,455 ) $ (13,479 ) Other comprehensive loss before reclassifications 1,315 5,834 7,149 Amounts reclassified from accumulated other comprehensive loss (961 ) 268 (693 ) Other comprehensive income (loss) 354 6,102 6,456 Balance as of December 31, 2017 $ 330 $ (7,353 ) $ (7,023 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet classification and fair values of derivative instruments | The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount December 31, December 31, December 31, December 31, Balance sheet location 2019 2018 2019 2018 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 63 $ 374 $ 11,001 $ 34,695 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 315 — 25,045 — Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (388 ) (196 ) 92,929 54,425 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (326 ) (628 ) 45,262 41,303 $ (336 ) $ (450 ) $ 174,237 $ 130,423 |
Schedule of cash flow hedging instruments location in income statement | Cost of sales Research and development, net Selling, general and administrative Financial income, net Other comprehensive income December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ 322,388 $ 338,013 $ 94,253 $ 98,964 $ 231,138 $ 235,107 $ (4,555 ) $ (633 ) $ 37 $ (730 ) Foreign exchange contracts designated as hedging instrument (24 ) 12 (382 ) 303 (525 ) 542 — — 617 (957 ) Foreign exchange contracts not designated as hedging instrument — — — — — — (2,868 ) (1,956 ) — — $ 322,364 $ 338,025 $ 93,871 $ 99,267 $ 230,613 $ 235,649 $ (7,423 ) $ (2,589 ) $ 654 $ (1,687 ) |
Entity-Wide Disclosure (Tables)
Entity-Wide Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Geographical Area | Revenues by geographic area for the years ended December 31, 2019, 2018 and 2017 were as follows*: Year ended December 31, 2019 2018 2017 (U.S. $ in thousands) Americas (primarily the United States) $ 415,862 $ 409,741 $ 413,326 EMEA 124,967 147,162 148,279 Asia Pacific 95,251 106,334 106,757 $ 636,080 $ 663,237 $ 668,362 * Net sales are attributed to geographic areas based on the location of customer. |
Schedule of Property, Plant and Equipment by Geographical Location | Property, plant and equipment by geographical area were as follows: December 31, 2019 2018 (U.S. $ in thousands) Americas (primarily the United States) $ 58,169 $ 63,714 EMEA $ 127,234 122,678 Asia Pacific $ 4,303 1,758 $ 189,706 $ 188,150 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2019 2018 2017 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (10,849 ) $ (10,964 ) $ (39,981 ) Adjustment of redeemable non-controlling interest to redemption amount — (935 ) — Net loss attributable to Stratasys Ltd. for basic loss per share (10,849 ) (11,899 ) (39,981 ) Denominator: Weighted average shares – denominator for basic net loss per share 54,260 53,751 52,959 Net loss per share Basic $ (0.20 ) $ (0.22 ) $ (0.75 ) Diluted $ (0.20 ) $ (0.22 ) $ (0.75 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Cost | The company’s operating lease cost for the twelve months ended December 31, 2019 were as follows: December 31, 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate 8,564 Total operating lease cost 8,564 |
Schedule of Cash Flow and Other Information Related to Operating Leases | Cash flow and other information related to operating leases as follows: December 31, 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities 7,246 December 31, 2019 (U.S. $ in thousands) Weighted-average remaining lease term — operating leases 3.18 Weighted-average discount rate — operating leases 4.72 % |
Schedule of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows: December 31, 2019 (U.S. $ in thousands) 2020 9,456 2021 6,853 2022 3,657 2023 2,042 2024 1,018 2025 and thereafter 116 Total operating lease payments 23,142 Less: imputed interest ( 1,406 ) Present value of lease liabilities 21,737 December 31, 2018 (U.S. $ in thousands) 2019 8,445 2020 6,440 2021 4,362 2022 3,265 2023 1,894 Thereafter 593 24,999 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||
Number of operating segments | item | 1 | ||
Accounts Receivable and Net investment in sales-type leases | |||
Allowance for doubtful accounts receivable | $ 939 | $ 1,110 | |
Allowance for doubtful accounts due to investment in sales-type leases | 414 | 1,689 | |
Inventories | |||
Inventory write-downs for obsolescence and excess inventories | 11,700 | 11,200 | |
Other Intangible Assets | |||
Impairment of Intangible Assets (Excluding Goodwill) | 2,200 | $ 2,200 | |
Advertising costs | 16,200 | 15,900 | 14,200 |
Retirement Plans and Employee Rights Upon Termination | |||
Severance pay liabilities | 4,200 | 4,000 | |
Deposit in insurance policies and pension funds | 3,300 | 3,100 | |
Severance expenses | 4,000 | 4,100 | 3,100 |
401(k) Plan contributions | $ 4,200 | $ 3,200 | $ 3,700 |
Research and Development Costs | |||
Maximum additional tax rate on distribution of dividends | 10.00% | ||
Settlement percentage | 50.00% | ||
Vesting period | 4 years | ||
Stock-Based Compensation | |||
Expected dividend rate (as a percent) | 0.00% | ||
Business Combinations | |||
Increase in retained earnings | $ 1,400 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 25 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Buildings improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Buildings improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer Equipment and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 14 years |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies (Schedule of Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Developed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 6 years |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 8 years |
Trademarks and trade names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 9 years |
Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 7 years |
Certain Transactions (Details)
Certain Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||
Net gain on divestiture of minority interest | $ 3,578 | $ 7,908 | $ (788) | |||||
Operating expenses | $ 325,391 | 334,071 | 353,300 | |||||
Bank Loan [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from secured debt | $ 260,000 | |||||||
Interest rate | 3.35% | |||||||
Credit Line [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from secured debt | $ 240,000 | |||||||
Proceeds from lines of credit | 100,000 | |||||||
Xaar 3D Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage held by company | 15.00% | 45.00% | ||||||
Ownership percentage retained by Xaar | 55.00% | |||||||
Consideration paid | $ 157,000 | |||||||
LPW Technology [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration from divestiture of minority interest | $ 33,600 | |||||||
Net gain on divestiture of minority interest | $ 13,500 | |||||||
Net loss for the year ended | $ 4,600 | $ 1,800 | ||||||
Solidscape, Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net gain on divestiture of minority interest | $ 7,000 | |||||||
Evolve Research and Development Project [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Operating expenses | $ 1,600 | |||||||
Write-off of in-process research and development project | $ 5,000 | |||||||
Unconsolidated Entity [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net gain on divestiture of minority interest | $ 3,600 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | ||
Revenue recognized | $ 50,200 | $ 49,900 |
Deferred revenue noncurrent portion | 16,039 | 18,422 |
Remaining performance obligations | 88,400 | 93,900 |
Expected remaining performance obligations recognized during next 12 months | 70,500 | |
Expected remaining performance obligations recognized subsequent to next 12 months and thereafter | 12,900 | |
Deferred sales commissions | $ 3,900 | $ 3,100 |
Revenues (Shedule of Disaggrega
Revenues (Shedule of Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 636,080 | $ 663,237 | $ 668,362 |
Revenues recognized in point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 474,631 | 587,477 | 594,817 |
Revenues recognized over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 161,449 | 75,760 | 73,545 |
Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 430,746 | 456,504 | 474,286 |
Products [Member] | Revenues recognized in point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 430,746 | 456,504 | 474,286 |
Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 205,334 | 206,733 | 194,076 |
Services [Member] | Revenues recognized in point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 43,885 | 130,973 | 120,531 |
Services [Member] | Revenues recognized over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 161,449 | 75,760 | 73,545 |
Americas [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 415,862 | 409,741 | 413,326 |
Americas [Member] | Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 257,119 | 251,589 | 263,212 |
Americas [Member] | Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 158,743 | 158,152 | 150,114 |
EMEA [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 124,967 | 147,162 | 148,279 |
EMEA [Member] | Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 98,693 | 119,151 | 123,616 |
EMEA [Member] | Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 26,274 | 28,011 | 24,663 |
Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 95,251 | 106,334 | 106,757 |
Asia Pacific [Member] | Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 74,934 | 85,764 | 87,458 |
Asia Pacific [Member] | Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 20,317 | $ 20,570 | $ 19,299 |
Revenues (Schedule of Changes i
Revenues (Schedule of Changes in Deferred Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |||
Deferred revenue | [1] | $ 68,307 | $ 72,387 |
[1] | Includes $16.0 million and $18.4 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2019 and December 31, 2018, respectively. |
Fair Value Measurement (Schedul
Fair Value Measurement (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset (liabilities) | $ (336) | $ (450) |
Foreign Exchange Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 63 | 374 |
Derivative liabilities | (388) | (196) |
Foreign Exchange Future [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 315 | |
Derivative liabilities | $ (326) | $ (628) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 87,967 | $ 61,391 |
Work-in-process | 3,106 | 2,616 |
Raw materials | 77,431 | 59,517 |
Total Inventory | $ 168,504 | $ 123,524 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 369,173 | $ 361,092 | |
Accumulated depreciation | (180,769) | (173,437) | |
Property, plant and equipment, less capital work-in-progress | 188,404 | 187,655 | |
Construction work in progress | 1,302 | 495 | |
Property, plant and equipment, net | 189,706 | 188,150 | |
Depreciation | 25,800 | 28,900 | $ 31,600 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 140,413 | 134,708 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 149,022 | 139,666 | |
Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 46,900 | 49,991 | |
Office equipment, furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 13,780 | 17,616 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 19,058 | $ 19,111 |
Goodwill (Schedule of Changes i
Goodwill (Schedule of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Abstract]. | ||
Goodwill as of January 1 | $ 385,849 | $ 387,108 |
Currency translation adjustments and disposition | (191) | (1,259) |
Goodwill as of December 31 | $ 385,658 | $ 385,849 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 385,658 | $ 385,849 | $ 387,108 |
Stratasys-Objet reporting unit [Member] | Goodwill [Member] | |||
Goodwill [Line Items] | |||
Expected cash flow period | 5 years | ||
Growth rate (as a percent) | 3.10% | ||
Discount rate (as a percent) | 13.50% | ||
Percentage of decrease in terminal year growth rate | 1.00% | ||
Percentage of increase in terminal year growth rate | 1.00% | ||
Percentage of fair value exceeding carrying value of reporting units | 8.70% | ||
Goodwill | $ 386,000 | ||
Change in fair value due to 1% decrease in terminal year growth rate | 45,000 | ||
Change in fair value due to 1% increase in terminal year growth rate | $ 81,000 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 461,799 | $ 457,963 |
Accumulated Amortization | (374,471) | (350,689) |
Net Book Value | 87,328 | 107,274 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 299,100 | 299,100 |
Accumulated Amortization | (252,136) | (236,375) |
Net Book Value | 46,964 | 62,725 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,142 | 10,127 |
Accumulated Amortization | (7,067) | (5,752) |
Net Book Value | 8,075 | 4,375 |
Trademarks and trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 25,991 | 26,212 |
Accumulated Amortization | (19,966) | (19,067) |
Net Book Value | 6,025 | 7,145 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 102,936 | 102,984 |
Accumulated Amortization | (76,813) | (70,353) |
Net Book Value | 26,123 | 32,631 |
Capitalized Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,630 | 19,540 |
Accumulated Amortization | (18,489) | (19,142) |
Net Book Value | $ 141 | $ 398 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets [Abstract] | |||
Impairment charges | $ 2.2 | $ 2.2 | |
Amortization of intangible assets | $ 25.2 | $ 32.4 | $ 35 |
Other Intangible Assets (Sche_2
Other Intangible Assets (Schedule of Estimated Amortization Expense Relating to Intangible Assets) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Other Intangible Assets [Abstract] | |
2020 | $ 24,792 |
2021 | 24,667 |
2022 | 24,598 |
2023 | 7,662 |
2024 | 3,605 |
Thereafter | 2,004 |
Net book value of other intangible assets | $ 87,328 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands, ₪ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2018ILS (₪) | |
Accrued interest and penalties related to uncertain tax positions | $ 3,000 | |||||||||
Statutory tax rates | 23.00% | 23.00% | 24.00% | |||||||
Privileged enterprise benefits rate | 23.00% | |||||||||
Tax-exempt income | $ 255,000 | |||||||||
Change in corporate tax rate, amount incurred | $ 25,500 | |||||||||
Reduced Corporate Tax Rate | 7.50% | 7.50% | ||||||||
Decrease In Tax Rates In Year Thereafter | 16.00% | |||||||||
Special Preferred Enterprise Of Reduced Tax Rates 1 | 6.00% | 16.00% | 16.00% | |||||||
Special Preferred Enterprise Of Reduced Tax Rates 2 | 6.00% | 9.00% | ||||||||
Deferred tax asset | $ 113,419 | $ 111,196 | ||||||||
Valuation allowance of deferred tax assets | $ 151,771 | 152,659 | ||||||||
Valuation allowance and deferred tax assets tax rate | 21.00% | |||||||||
Change in valuation allowance | $ 65,600 | |||||||||
Change in deferred tax assets | $ 65,600 | $ 2,393 | $ 3,956 | $ 2,549 | ||||||
Foreign ownership percentage basis for determining tax rate | 90.00% | |||||||||
Special Preferred Enterprise Tax Exempt Period | 10 years | |||||||||
Approved enterprise and beneficiary enterprise income tax exempt or taxable rate | 10.00% | |||||||||
Dividend withholding tax rate | 20.00% | 15.00% | ||||||||
Persentage of limitation uses | 80.00% | |||||||||
Preferred Enterprise Of Reduced Tax Rates 1 | 12.00% | |||||||||
Preferred Enterprise Of Reduced Tax Rates 2 | 12.00% | |||||||||
Preferred Benefitted Intangible Assets | ₪ | ₪ 200 | |||||||||
Special Preferred Benefitted Intangible Assets | ₪ | ₪ 500 | |||||||||
Cumulative-effect adjustment to deferred tax asset related to net operating losses | $ 50,000 | |||||||||
United States [Member] | ||||||||||
Statutory tax rates | 21.00% | |||||||||
Israel [Member] | ||||||||||
Statutory tax rates | 23.00% | 23.00% | 24.00% | 25.00% | 26.50% | 26.50% | ||||
HONG KONG | ||||||||||
Statutory tax rates | 16.50% | |||||||||
GERMANY | ||||||||||
Statutory tax rates | 29.00% | |||||||||
Minimum [Member] | ||||||||||
Reduced Corporate Tax Rate | 21.00% | |||||||||
Foreign ownership percentage basis for determining tax rate | 10.00% | |||||||||
Foreign Dividend Withholding tax rate | 4.00% | |||||||||
Maximum [Member] | ||||||||||
Reduced Corporate Tax Rate | 35.00% | |||||||||
Foreign ownership percentage basis for determining tax rate | 25.00% | |||||||||
Dividend withholding tax rate | 30.00% | |||||||||
Subsidiaries [Member] | ||||||||||
Operating losses carryforwards | $ 4,900,000 | $ 4,790,000 | ||||||||
Deferred tax asset | 113,400 | $ 111,200 | ||||||||
Deferred tax liability | $ 127,900 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Company's Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Tax losses carry forwards | $ 113,419 | $ 111,196 |
Inventory related | 2,538 | 2,603 |
Intangibles assets | 16,628 | 23,434 |
Provision for employee related obligations | 984 | 1,169 |
Stock-based compensation expense | 6,936 | 5,565 |
Deferred revenue | 1,592 | 2,547 |
Property, plant and equipment | 1,063 | 1,171 |
Allowance for doubtful accounts | 217 | 609 |
Foreign currency losses | 12 | 364 |
Research and development credit carry forwards | 16,239 | 13,520 |
Other items | 3,148 | 2,033 |
Gross deferred tax assets | 162,776 | 164,211 |
Valuation allowance | (151,771) | (152,659) |
Total deferred tax assets | 11,005 | 11,552 |
Deferred tax liabilities | ||
Intangibles assets | (7,245) | (9,140) |
Property, plant and equipment | (1,683) | (2,736) |
Total deferred tax liabilities | (8,928) | (11,876) |
Net deferred tax asset | $ 2,077 | |
Net deferred tax liabilities | $ (324) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets (under "Other non-current assets") | $ 2,118 | $ 1,338 |
Deferred tax liabilities | 41 | 1,662 |
Net deferred tax asset | $ 2,077 | |
Net deferred tax liabilities | $ (324) |
Income Taxes (Schedule of Loss
Income Taxes (Schedule of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (11,895) | $ (17,848) | $ (98) |
Foreign | 4,751 | 9,634 | (29,378) |
Loss before income taxes | $ (7,144) | $ (8,214) | $ (29,476) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Domestic | $ 3,392 | $ (722) | $ 10,574 |
Foreign | 2,524 | 9,414 | 1,248 |
Current Income Tax Expense Benefit | 5,916 | 8,692 | 11,822 |
Deferred: | |||
Domestic | (2,007) | (3,169) | (4,497) |
Foreign | (386) | (787) | 1,948 |
Deferred Income Tax Expense Benefit | (2,393) | (3,956) | (2,549) |
Total income taxes | $ 3,523 | $ 4,736 | $ 9,273 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 23.00% | 23.00% | 24.00% |
Approved and Beneficiary Enterprises benefits | 18.00% | 16.00% | 15.70% |
US Tax Act enactment | (222.50%) | ||
Stock compensation expense | (21.00%) | (24.00%) | (5.30%) |
Tax contingencies | (57.10%) | (38.40%) | (30.80%) |
Non-deductible acquisition expenses | (1.40%) | (2.30%) | (0.60%) |
Earning taxed under foreign law | (14.90%) | (21.60%) | 43.30% |
Valuation allowance | 6.40% | 144.40% | |
Changes to the prior year's tax assessment | (2.70%) | (15.30%) | (1.20%) |
Non recurring Capital gain | 11.50% | ||
Whitholding tax | (1.70%) | ||
Other | (2.60%) | (1.40%) | 1.50% |
Effective income tax rate | (48.90%) | (57.60%) | (31.50%) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 22,044 | $ 27,317 | $ 18,000 |
Additions for tax positions related to the current year | 2,336 | 12,321 | 8,777 |
Increase foreign currency impact | 1,353 | 1,242 | |
Decrease foreign currency impact | (2,000) | ||
Adjustments for tax positions related tax settlements | (15,576) | (687) | |
Reduction of reserve for statute expirations | (216) | (18) | (15) |
Balance at end of year | $ 25,517 | $ 22,044 | $ 27,317 |
Equity (Share Capital) (Narrati
Equity (Share Capital) (Narrative) (Details) - ₪ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, par value | ₪ 0.01 | ₪ 0.01 |
Ordinary shares, issued | 54,441 | 53,881 |
Ordinary shares, outstanding | 54,441 | 53,881 |
Equity (Stock-based Compensatio
Equity (Stock-based Compensation Plans) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | Jan. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Vesting period | 4 years | |||
Weighted average remaining contractual life | 6 years 1 month 6 days | |||
Total intrinsic value of options exercised | $ 1 | $ 0.6 | $ 7.2 | |
Unvested number of shares | 0.4 | |||
Unrecognized compensation cost | $ 3.9 | |||
Weighted average period over which unrecognized compensation cost will be recognized | 1 year 2 months 12 days | |||
Restricted Stock [Member] | ||||
Value of equity classified RSUs vested | $ 7.4 | |||
Unrecognized compensation cost | $ 41.6 | |||
Weighted average period over which unrecognized compensation cost will be recognized | 2 years 7 months 6 days | |||
Employee Stock Option [Member] | Minimum [Member] | ||||
Expected option term | 5 years 3 months 18 days | 5 years 1 month 6 days | ||
Employee Stock Option [Member] | Maximum [Member] | ||||
Expected option term | 5 years 6 months | 6 years | ||
2012 Plan [Member] | ||||
Expected option term | 10 years | |||
Equity Incentive Plan, shares authorized | 0.9 | |||
2012 Plan [Member] | Employee Stock Option [Member] | Minimum [Member] | ||||
Vesting period | 2 years | |||
2012 Plan [Member] | Employee Stock Option [Member] | Maximum [Member] | ||||
Vesting period | 4 years | |||
2012 Plan [Member] | Subsequent Event [Member] | ||||
Equity Incentive Plan, number of additional shares authorized | 0.5 |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Option Activity) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Options | |
Options Outstanding as of December 31, 2018 | shares | 2,551,743 |
Exercised | shares | (249,956) |
Forfeited | shares | (340,255) |
Options Outstanding as of December 31, 2019 | shares | 1,961,532 |
Options exercisable as of December 31, 2019 | shares | 1,585,035 |
Weighted Average Exercise Price | |
Options Outstanding as of December 31, 2018 | $ / shares | $ 30.82 |
Exercised | $ / shares | 20.54 |
Forfeited | $ / shares | 36.43 |
Options Outstanding as of December 31, 2019 | $ / shares | 31.16 |
Options exercisable as of December 31, 2019 | $ / shares | $ 33.73 |
Equity (Summary of Stock Option
Equity (Summary of Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options Outstanding, Number Outstanding | 1,961,532 | 2,551,743 |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 6 years 3 months 21 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 31.16 | $ 30.82 |
Options Exercisable, Number Exercisable | 1,585,035 | |
Options Exercisable, Weighted-Average Exercise Price | $ 33.73 | |
Options Outstanding, Aggregate intrinsic value | $ 563 | |
Options Exercisable, Aggregate intrinsic value | $ 405 | |
$2.74 - $19.59 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | $ 2.74 | |
Range of Exercise Prices (Upper) | $ 19.59 | |
Options Outstanding, Number Outstanding | 33,828 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 8 years 1 month 13 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 18.20 | |
Options Exercisable, Number Exercisable | 33,828 | |
Options Exercisable, Weighted-Average Exercise Price | $ 18.20 | |
$19.66 - $19.66 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 19.66 | |
Range of Exercise Prices (Upper) | $ 19.66 | |
Options Outstanding, Number Outstanding | 828,891 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 6 years 11 months 23 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 19.66 | |
Options Exercisable, Number Exercisable | 566,036 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.66 | |
$19.96 - $23.41 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 19.96 | |
Range of Exercise Prices (Upper) | $ 23.41 | |
Options Outstanding, Number Outstanding | 523,812 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 7 years 2 months 23 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 22.05 | |
Options Exercisable, Number Exercisable | 415,233 | |
Options Exercisable, Weighted-Average Exercise Price | $ 22.25 | |
$24.66 - $120.51 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 24.66 | |
Range of Exercise Prices (Upper) | $ 120.51 | |
Options Outstanding, Number Outstanding | 575,001 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 4 years 4 months 20 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 56.75 | |
Options Exercisable, Number Exercisable | 569,938 | |
Options Exercisable, Weighted-Average Exercise Price | $ 57 |
Equity (Schedule of Stock Opt_2
Equity (Schedule of Stock Options Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 2.90% | 1.80% | |
Risk-free interest rate, Maximum | 3.10% | 2.20% | |
Expected share price volatility, Minimum | 52.00% | 52.60% | |
Expected share price volatility, Maximum | 52.20% | 54.00% | |
Dividend yield | |||
Weighted average grant date fair value | $ 11.49 | $ 11.10 | |
Minimum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term (years) | 5 years 3 months 18 days | 5 years 1 month 6 days | |
Maximum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term (years) | 5 years 6 months | 6 years |
Equity (Summary of RSUs and PSU
Equity (Summary of RSUs and PSUs activity) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of RSUs and PSUs | |
Unvested outstanding as of December 31, 2018 | shares | 1,422,887 |
Granted | shares | 1,613,282 |
Vested | shares | (309,642) |
Forfeited | shares | (363,536) |
Unvested outstanding as of December 31, 2019 | shares | 2,362,991 |
Weighted Average Grant Date Fair Value | |
Unvested outstanding as of December 31, 2018 | $ / shares | $ 20.17 |
Granted | $ / shares | 26.50 |
Vested | $ / shares | 20.50 |
Forfeited | $ / shares | 22.32 |
Unvested outstanding as of December 31, 2019 | $ / shares | $ 24.10 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 20,564 | $ 15,686 | $ 17,722 |
Cost Of Sales [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 1,848 | 1,474 | 2,580 |
Research and Development, Net [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 5,167 | 3,215 | 3,503 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 13,549 | $ 10,997 | $ 11,639 |
Equity (Schedule of Accumulated
Equity (Schedule of Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | $ (7,753) | $ (7,023) | $ (13,479) |
Other comprehensive income loss before reclassifications | 968 | (4,505) | 7,149 |
Amounts reclassified from accumulated other comprehensive income loss | (931) | 3,775 | (693) |
Other comprehensive income (loss) | 37 | (730) | 6,456 |
Balance as of December 31 | (7,716) | (7,753) | (7,023) |
Net unrealized gain (loss) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | (627) | 330 | (24) |
Other comprehensive income loss before reclassifications | 1,548 | (1,814) | 1,315 |
Amounts reclassified from accumulated other comprehensive income loss | (931) | 857 | (961) |
Other comprehensive income (loss) | 617 | (957) | 354 |
Balance as of December 31 | (10) | (627) | 330 |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | (7,126) | (7,353) | (13,455) |
Other comprehensive income loss before reclassifications | (580) | (2,691) | 5,834 |
Amounts reclassified from accumulated other comprehensive income loss | 2,918 | 268 | |
Other comprehensive income (loss) | (580) | 227 | 6,102 |
Balance as of December 31 | $ (7,706) | $ (7,126) | $ (7,353) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Gain (loss) on derivative instrument | $ 2.9 | $ 2 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 25 | $ 41.3 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 40 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | $ 103.9 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ (336) | $ (450) |
Notional amount | 174,237 | 130,423 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 103,900 | |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 25,000 | 41,300 |
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 63 | 374 |
Notional amount of derivative asset | 11,001 | 34,695 |
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 315 | |
Notional amount of derivative asset | 25,045 | |
Accrued expenses and other current liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (388) | (196) |
Notional amount of derivative liability | 92,929 | 54,425 |
Accrued expenses and other current liabilities [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (326) | (628) |
Notional amount of derivative liability | $ 45,262 | $ 41,303 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Schedule of Cash Flow Hedging Instruments Location in Income Statement) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Comprehensive Income [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Line items in which effects of hedges are recorded | $ 37 | $ (730) |
Foreign exchange contracts designated as hedging instrument | 617 | (957) |
Foreign exchange contracts not designated as hedging instrument | ||
Total foreign exchange contracts | 654 | (1,687) |
Cost Of Sales [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Line items in which effects of hedges are recorded | 322,388 | 338,013 |
Foreign exchange contracts designated as hedging instrument | (24) | 12 |
Foreign exchange contracts not designated as hedging instrument | ||
Total foreign exchange contracts | 322,364 | 338,025 |
Research and Development Net [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Line items in which effects of hedges are recorded | 94,253 | 98,964 |
Foreign exchange contracts designated as hedging instrument | (382) | 303 |
Foreign exchange contracts not designated as hedging instrument | ||
Total foreign exchange contracts | 93,871 | 99,267 |
Selling, General and Administrative Expenses [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Line items in which effects of hedges are recorded | 231,138 | 235,107 |
Foreign exchange contracts designated as hedging instrument | (525) | 542 |
Foreign exchange contracts not designated as hedging instrument | ||
Total foreign exchange contracts | 230,613 | 235,649 |
Financial Income Net [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Line items in which effects of hedges are recorded | (4,555) | (633) |
Foreign exchange contracts designated as hedging instrument | ||
Foreign exchange contracts not designated as hedging instrument | (2,868) | (1,956) |
Total foreign exchange contracts | $ (7,423) | $ (2,589) |
Entity-Wide Disclosure (Schedul
Entity-Wide Disclosure (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 636,080 | $ 663,237 | $ 668,362 |
Americas (primarily the United States) [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 415,862 | 409,741 | 413,326 |
Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 124,967 | 147,162 | 148,279 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 95,251 | $ 106,334 | $ 106,757 |
Entity-Wide Disclosure (Sched_2
Entity-Wide Disclosure (Schedule of Property, Plant and Equipment by Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 189,706 | $ 188,150 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 58,169 | 63,714 |
Europe and Middle East [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 127,234 | 122,678 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 4,303 | 1,758 |
Israel [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 110,900 | $ 105,300 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares, excluded from computation of diluted net loss per share | 4.3 | 4 | 3.8 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Calculation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net loss attributable to Stratasys Ltd. | $ (10,849) | $ (10,964) | $ (39,981) |
Adjustment of redeemable non-controlling interest to redemption amount | (935) | ||
Net loss attributable to Stratasys Ltd. for basic loss per share | $ (10,849) | $ (11,899) | $ (39,981) |
Denominator: | |||
Add: Weighted average shares - denominator for basic net loss per share | 54,260 | 53,751 | 52,959 |
Net loss per share | |||
Basic | $ (0.20) | $ (0.22) | $ (0.75) |
Diluted | $ (0.20) | $ (0.22) | $ (0.75) |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rental expense | $ 82 | $ 100 | |
Operating lease right-of-use assets | $ 20,936 | ||
Operating lease liability | $ 21,737 | ||
Option to extend description | The Company is a party to several lease agreements for its facilities, the latest of which has been extended until midst 2026. The Company has the option to extend certain agreements for additional periods, the earliest of which is until the end of January 2024 and the latest is until the end of October 2028. During the extended lease period, the aggregate annually rental payments will increase by 2%-3% each year. | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Operating lease right-of-use assets | $ 27,400 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed payments and variable payments that depend on an index or rate | $ 8,564 |
Total operating lease cost | $ 8,564 |
Leases (Schedule of Cash Flow a
Leases (Schedule of Cash Flow and Other Information Related to Operating Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 9,685 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 7,246 |
Weighted-average remaining lease term - operating leases | 3 years 2 months 4 days |
Weighted-average discount rate - operating leases | 4.72% |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Due year one | $ 9,456 | $ 8,445 |
Due year two | 6,853 | 6,440 |
Due year three | 3,657 | 4,362 |
Due year four | 2,042 | 3,265 |
Due year five | 1,018 | 1,894 |
Due thereafter | 116 | 593 |
Total operating lease payments | 23,142 | $ 24,999 |
Less: imputed interest | (1,406) | |
Present value of lease liabilities | $ 21,737 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve for bad debts and allowances [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balances at beginning of period | $ 2,799 | $ 2,735 | $ 1,687 |
Charged to costs and expenses | 574 | 1,657 | 1,665 |
Charged to other accounts | |||
Charged to income | 2,020 | 1,593 | 617 |
Charged to other accounts | |||
Balances at end of period | 1,353 | 2,799 | 2,735 |
Valuation allowances on deferred tax assets [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balances at beginning of period | 152,659 | 152,062 | 201,376 |
Charged to costs and expenses | 597 | 22,998 | |
Charged to other accounts | |||
Charged to income | 65,572 | ||
Charged to other accounts | 888 | 6,740 | |
Balances at end of period | $ 151,771 | $ 152,659 | $ 152,062 |