Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | STRATASYS LTD. |
Trading Symbol | SSYS |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 56,617,225 |
Amendment Flag | false |
Entity Central Index Key | 0001517396 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35751 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, City or Town | Rehovot |
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, Country | IL |
Entity Address, Postal Zip Code | 76124 |
Title of 12(b) Security | Ordinary Shares, par value NIS 0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information Line Items | |
Entity Address, City or Town | Eden Prairie |
Entity Address, Address Line One | 7665 Commerce Way |
Entity Address, Postal Zip Code | 55344 |
Contact Personnel Name | Richard Garrity |
City Area Code | 952 |
Local Phone Number | 937-3000 |
Contact Personnel Email Address | rich.garrity@stratasys.com |
Entity Address, State or Province | MN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 272,092 | $ 293,484 |
Short-term deposits | 27,000 | 28,300 |
Accounts receivable, net of allowance for credit losses of $0.9 million as of December 31, 2020 and December 31, 2019 | 106,068 | 132,558 |
Inventories | 131,672 | 168,504 |
Prepaid expenses | 6,717 | 6,567 |
Other current assets | 16,943 | 29,659 |
Total current assets | 560,492 | 659,072 |
Non-current assets | ||
Property, plant and equipment, net | 201,232 | 189,706 |
Goodwill | 35,694 | 385,658 |
Other intangible assets, net | 131,569 | 87,328 |
Operating lease right-of-use assets | 21,298 | 20,936 |
Other non-current assets | 39,717 | 38,819 |
Total non-current assets | 429,510 | 722,447 |
Total assets | 990,002 | 1,381,519 |
Current liabilities | ||
Accounts payable | 16,987 | 35,818 |
Accrued expenses and other current liabilities | 31,061 | 28,528 |
Accrued compensation and related benefits | 25,659 | 34,013 |
Deferred revenues - short-term | 49,165 | 52,268 |
Operating lease liabilities - short term | 9,282 | 9,292 |
Total current liabilities | 132,154 | 159,919 |
Non-current liabilities | ||
Deferred revenues - long-term | 14,227 | 16,039 |
Operating lease liabilities - long term | 12,567 | 12,445 |
Contingent consideration | 37,400 | |
Other non-current liabilities | 34,059 | 35,343 |
Total non-current liabilities | 98,253 | 63,827 |
Total liabilities | 230,407 | 223,746 |
Commitments and contingencies (see note 10) | ||
Redeemable non-controlling interests | 227 | 622 |
Equity | ||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 56,617 thousand shares and 54,441 thousand shares issued and outstanding at December 31, 2020 and 2019, respectively | 155 | 148 |
Additional paid-in capital | 2,753,955 | 2,706,894 |
Accumulated other comprehensive loss | (8,846) | (7,716) |
Accumulated deficit | (1,985,896) | (1,542,175) |
Total equity | 759,368 | 1,157,151 |
Total liabilities and equity | $ 990,002 | $ 1,381,519 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) shares in Thousands | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for credit losses (in Dollars) | $ | $ 900 | $ 900 |
Ordinary shares, authorized | 180,000 | 180,000 |
Ordinary shares, issued | 56,617 | 54,441 |
Ordinary shares, outstanding | 56,617 | 54,441 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Total net sales | $ 520,817 | $ 636,080 | $ 663,237 |
Cost of revenues | |||
Total cost of sales | 301,423 | 322,388 | 338,013 |
Gross profit | 219,394 | 313,692 | 325,224 |
Operating expenses | |||
Research and development, net | 84,012 | 94,253 | 98,964 |
Selling, general and administrative | 205,224 | 231,138 | 235,107 |
Goodwill impairment | 386,154 | ||
Total operating expenses | 675,390 | 325,391 | 334,071 |
Operating loss | (455,996) | (11,699) | (8,847) |
Financial income (expenses), net | (575) | 4,555 | 633 |
Loss before income taxes | (456,571) | (7,144) | (8,214) |
Income taxe expenses (benefit) | (16,394) | 3,523 | 4,736 |
Share in profits (losses) of associated companies | (3,939) | (412) | 1,725 |
Net loss | (444,116) | (11,079) | (11,225) |
Net loss attributable to non-controlling interests | (395) | (230) | (261) |
Net loss attributable to Stratasys Ltd. | $ (443,721) | $ (10,849) | $ (10,964) |
Net loss per ordinary share attributable to Stratasys Ltd. - basic and diluted (in Dollars per share) | $ (8.08) | $ (0.20) | $ (0.22) |
Weighted average ordinary shares outstanding. - basic and diluted (in Shares) | 54,918 | 54,260 | 53,751 |
Comprehensive Loss | |||
Net loss | $ (444,116) | $ (11,079) | $ (11,225) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 533 | (580) | 227 |
Unrealized gains (losses) on derivatives designated as cash flow hedge | (1,663) | 617 | (957) |
Other comprehensive income (loss), net of tax | (1,130) | 37 | (730) |
Comprehensive loss | (445,246) | (11,042) | (11,955) |
Less: Comprehensive loss attributable to non-controlling interests | (395) | (230) | (261) |
Comprehensive loss attributable to Stratasys Ltd. | (444,851) | (10,812) | (11,694) |
Products | |||
Revenues | |||
Total net sales | 339,782 | 430,746 | 456,504 |
Cost of revenues | |||
Total cost of sales | 171,235 | 182,430 | 203,622 |
Services | |||
Revenues | |||
Total net sales | 181,035 | 205,334 | 206,733 |
Cost of revenues | |||
Total cost of sales | $ 130,188 | $ 139,958 | $ 134,391 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-In Capital | Accumulated deficit | Accumulated Other Comprehensive Loss | Equity attributable to Stratasys Ltd | Non-controlling Interests | Total |
Balances at Dec. 31, 2017 | $ 145 | $ 2,663,274 | $ (1,523,906) | $ (7,023) | $ 1,132,490 | $ 17 | $ 1,132,507 |
Balances (in Shares) at Dec. 31, 2017 | 53,631 | ||||||
Cumulative effect of changes in accounting principles | 3,544 | 3,544 | 3,544 | ||||
Cumulative effect of changes in accounting principles (in Shares) | |||||||
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) | ||
Balance at Dec. 31, 2018 | $ 146 | 2,681,048 | (1,531,326) | (7,753) | 1,142,115 | 1,142,115 | |
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) | |||
Balance at Dec. 31, 2019 | $ 148 | 2,706,894 | (1,542,175) | (7,716) | 1,157,151 | 1,157,151 | |
Balance (in Shares) at Dec. 31, 2019 | 54,441 | ||||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 226 | 228 | 228 | |||
Issuance of shares in connection with stock-based compensation plans (in Shares) | 688 | ||||||
Stock-based compensation | 20,204 | 20,204 | 20,204 | ||||
Issuance of shares as part of the Origin acquisition | $ 5 | 26,631 | 26,636 | 26,636 | |||
Issuance of shares as part of the Origin acquisition (in Shares) | 1,488 | ||||||
Comprehensive loss | (443,721) | (1,130) | (444,851) | (444,851) | |||
Balance at Dec. 31, 2020 | $ 155 | $ 2,753,955 | $ (1,985,896) | $ (8,846) | $ 759,368 | $ 759,368 | |
Balance (in Shares) at Dec. 31, 2020 | 56,617 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net loss | $ (444,116) | $ (11,079) | $ (11,225) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Goodwill impairment | 386,154 | ||
Impairment of other long-lived assets | 6,985 | 776 | 7,260 |
Depreciation and amortization | 49,560 | 50,942 | 61,250 |
Stock-based compensation | 20,204 | 20,564 | 15,686 |
Foreign currency transaction loss (gain) | (8,718) | (1,900) | 5,140 |
Deferred income taxes | (17,484) | (2,393) | (3,956) |
Gain from sale of unconsolidated entity | (3,578) | (7,908) | |
Share in (profits) losses of associated companies | 3,939 | 412 | (1,724) |
Other non-cash items | (2,552) | (103) | 582 |
Change in cash, cash equivalents and restricted cash attributable to changes in operating assets and liabilities, net of the impact of acquisitions or divestitures: | |||
Accounts receivable, net | 29,465 | 4,967 | (8,884) |
Inventories | 37,120 | (48,647) | (16,124) |
Net investment in sales-type leases | 1,063 | 2,911 | 7,437 |
Other current assets and prepaid expenses | 9,084 | (5,847) | 446 |
Other non-current assets | (1,040) | 5,807 | (1,280) |
Accounts payable | (24,534) | (13,114) | 6,882 |
Other current liabilities | (10,033) | (7,273) | 9,183 |
Deferred revenues | (6,398) | (3,779) | 6,203 |
Other non-current liabilities | (897) | 141 | (5,256) |
Net cash provided by (used in) operating activities | 27,802 | (11,193) | 63,712 |
Cash flows from investing activities | |||
Purchase of property and equipment | (26,943) | (22,549) | (23,361) |
Acquisition of business, net of cash acquired | (29,115) | ||
Proceeds from sale of subsidiaries and unconsolidated entity | 4,909 | 41,168 | |
Investment in unconsolidated entities | (20,222) | (13,015) | |
Proceeds from sale of plant and property | 129 | 4,105 | |
Purchase of intangible assets | (2,070) | (2,752) | (1,449) |
Investments in short-term bank deposits | (27,000) | (28,300) | |
Proceeds from short-term bank deposits | 28,300 | ||
Proceeds from sale of equity method investment | 3,175 | ||
Net proceeds from divestitures of subsidiaries and associated companies | 1,000 | ||
Other investing activities | 28 | (741) | (304) |
Net cash provided by (used in) investing activities | (52,625) | (69,526) | 7,144 |
Cash flows from financing activities | |||
Repayment of debt | (27,293) | (5,143) | |
Acquisition of redeemable non-controlling interests | (1,500) | ||
Proceeds from exercise of stock options | 228 | 5,284 | 3,692 |
Net cash provided by (used in) financing activities | 228 | (22,009) | (2,951) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,214 | 2,591 | (3,530) |
Net change in cash, cash equivalents and restricted cash | (21,381) | (100,137) | 64,375 |
Cash, cash equivalents and restricted cash, beginning of year | 293,597 | 393,734 | 329,359 |
Cash, cash equivalents and restricted cash, end of year | 272,216 | 293,597 | 393,734 |
Cash paid during the year for: | |||
Income taxes, net of tax refunds | 1,140 | 10,730 | 5,682 |
Interest | 449 | 1,675 | |
Non-cash investing activities: | |||
Transfer of inventories to fixed assets | 4,138 | 3,307 | 3,702 |
Transfer of fixed assets to inventories | 410 | 322 | 451 |
Origin contingent consideration | 37,400 | ||
Issuance of shares as part of Origin acquisition (Refer to Note 2) | $ 26,636 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 ( “ ” COVID-19 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, valuation allowance, uncertain tax positions, recoverability of intangibles and goodwill and purchase price allocation In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences, of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, the accounting estimates and assumptions may change over time in response to COVID-19. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; and the allowance for expected credit losses and bad debt. 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. 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 The Company’s accounts receivable Accounts receivable are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. On a periodic basis, the Company evaluates the collectability of its accounts receivable 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. The Company’s accounts receivable accounting policy from January 1, 2020, following the adoption of the new CECL standard The Company adopted this guidance effective January 1, 2020, with no material impact on its consolidated financial statements. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Allowance for due to the Company’s accounts receivable amounted to $ thousand and $ thousand as of December 31, 20 and 201 , respectively. Changes in the allowance for are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for 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. 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. 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. 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. 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 8 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 revenues. 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. 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. 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 ( ” ” 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 $4.1 million and $4.2 million as of December 31, 2020 and 2019, 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, 2020 and 2019, the Company had $3.1 million and $3.3 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, 2020, 2019 and 2018 were $9.1 million, $4.0 million and $4.1 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, 2020, 2019 and 2018 the Company made 401(k) Plan contributions of approximately $4.1 million, $4.2 million and $3.2 million respectively. 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 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 accounting standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous revenue recognition guidance. The impact of the adjustment of the results for 2018 based on the revenue recognition standard in place of 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. 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 $6.3 million, $16.2 million and $15.9 million, for the years ended December 31, 2020, 2019 and 2018, respectively. Research and Development Expenses 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. 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 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 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 ( “ ” 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 , 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 accounts for forfeitures as they occur. 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. Restructuring P |
Certain Transactions
Certain Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Certain Transactions [Abstract] | |
Certain Transactions | Note 2. Certain Transactions Origin acquisition On December 31, 2020 (the “Origin transaction date”) the Company acquired 3D printing start-up “ ” P 3 The acquisition was aimed at fortifying our leadership in polymers and production applications of 3D printing in industries such as dental, medical, tooling, and select industrial, defense, and consumer goods markets In exchange for 100% of the outstanding shares of Origin the Company issued 1,488 thousand ordinary shares, paid cash upon closing and is obligated to pay additional payments (combination of cash and shares) subject to performance-based earnouts over 3 years. The Origin transaction is reflected in accordance with ASC Topic 805, “Business Combinations”, using the acquisition method of accounting with the Company as the acquirer. The following table summarizes the fair value of the consideration transferred to Origin stockholders for the Origin transaction: U.S. $ in thousands Cash payments $ 33,076 * Issuance of ordinary shares to Origin stockholders 26,636 Contingent consideration at estimated fair value 37,400 Total consideration $ 97,112 * Of which $31.2 million were paid on December 31, 2020. The fair value of the ordinary shares issued was determined based on the closing market price of the Company’s ordinary shares on the Origin transaction date. In accordance with ASC Topic 805, the estimated contingent consideration as of the Origin transaction date was included in the purchase price. The total contingent payments could reach to a maximum aggre gate amount of up to $ 40 million. Approximately 50% of the payments shall be settled in cash, and 50% shall be settled through the issuance of ordinary shares. Consolidated Statements of Operations and Comprehensive Loss. An additional payment of $6 million, which is subject to the founders' retention over 3 years, will be recorded as compensation expense over the retention period. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Origin transaction date. The estimated fair values are preliminary and based on the information that was available as of December 31, 2020. Thus, the measurements of fair value reflected are subject to changes and such changes could be significant. The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows: Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 2,083 Goodwill 35,694 Intangible assets 71,131 Other assets 5,285 Total assets acquired 114,193 Net deferred tax liabilities 14,007 Other labilities 3,074 Total liabilities assumed 17,081 Net assets acquired $ 97,112 The allocation of the purchase price to net assets acquired and liability assumed resulted in the recognition of intangible asset related to developed technology of $71 million. This intangible asset has a useful-life of 10 years. The fair value estimate of the developed technology is determined using a variation of the income approach known as the “Multi-Period Excess Earnings Approach”. This valuation technique estimates the fair value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life. Pro forma information giving effect to the acquisition has not been provided as the results would not be material. Investment in Xaar 3D Ltd. ("Xaar 3D") During the fourth quarter of 2019, the Company entered into an agreement with Xaar plc ( “ ” ” ” 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 Divestme nt 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 was $4.6 million. During 2020, $3.2 million was received related to the sale of LPW. 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. During 2020, $1.0 million was received related to the sale of Solidscape . 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. Restructuring plan On June 2, 2020, the Company announced a restructuring plan to reduce operating expenses as part of a cost realignment program to focus on profitable growth (the “ ” |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 (U.S. $ in thousands) Americas Products $205,741 $ 257,119 $ 251,589 Service $137,736 158,743 158,152 Total Americas $343,477 415,862 409,741 EMEA Products 78,105 98,693 119,151 Service 23,479 26,274 28,011 Total EMEA 101,584 124,967 147,162 Asia Pacific Products 55,936 74,934 85,764 Service 19,820 20,317 20,570 Total Asia Pacific 75,756 95,251 106,334 Total Revenues $520,817 $ 636,080 $ 663,237 The following table present the Company’s revenues disaggregated based on the timing of revenue recognize for the years ended December 31, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 Revenues recognized in point in time from: Products $ 339,782 $ 430,746 $ 456,504 Services 40,405 43,885 130,973 Total revenues recognized in point in time 380,187 474,631 587,477 Revenues recognized over time from: Services 140,630 161,449 75,760 Total revenues recognized over time 140,630 161,449 75,760 Total Revenues $ 520,817 $ 636,080 $ 663,237 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, 2020. 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, 2020 and 2019 were as follows: December 31, December 31, 2020 2019 U.S. $ in thousands Deferred revenue* 63,392 68,307 *Includes $14.3 million and $16.0 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2020 and December 31, 2019, respectively. Revenue recognized in 2020 and 2019 that was included in deferred revenue balance as of January 1, 2020 and 2019, was $50.1 million and $50.2 million, respectively. Remaining Performance Obligations Remaining Performance Obligations ( “ ” 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, 2020 and 2019, the deferred commission amounted to $5.0 million and $3.9 million, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 56 $ 63 Foreign exchange forward contracts designated as hedging instruments 793 315 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (1,098 ) (388 ) Foreign exchange forward contracts designated as hedging instruments (1,584 ) (326 ) $ (1,833 ) $ (336 ) 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, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consisted of the following: December 31, 2020 2019 U.S. $ in thousands Finished goods $ 61,297 $ 87,967 Work-in-process 3,163 3,106 Raw materials 67,212 77,431 $ 131,672 $ 168,504 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (U.S. $ in thousands) Machinery and equipment $ 147,531 $ 140,413 Buildings and improvements 172,868 149,022 Computer equipment and software 49,233 46,900 Office equipment, furniture and fixtures 13,966 13,780 Land 19,302 19,058 402,900 369,173 Accumulated depreciation (202,556 ) (180,769 ) 200,344 188,404 Construction work in progress 888 1,302 $ 201,232 $ 189,706 Depreciation expenses were $25.2 million, $25.8 million and $28.9 million in the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill [Abstract] | |
Goodwill | Note 7. Goodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 (U.S. $ in millions) Balance at January 1, $ 385,658 $ 385,849 Goodwill acquired 35,694 - Goodwill impairment charges (386,154 ) - Currency translation adjustments and disposition 496 (191 ) Balance at December 31, $ 35,694 $ 385,658 During the fourth quarter of 2019, the Company performed a quantitative assessment for goodwill impairment for its Stratasys-Objet reporting unit. Following its quantitative assessment, the Company concluded that the fair value of its Stratasys-Objet reporting unit exceeded its carrying amount by approximately 8.7%, with a carrying amount of goodwill assigned to this reporting unit in an amount of $ million. When evaluating the fair value of its Stratasys-Objet reporting unit, the Company used a discounted cash flow model which utilized Level 3 measures that represent unobservable inputs into the valuation method. Key assumptions used to determine the estimated fair value include: (a) expected cash flows for five years following the assessment date which were based on, among other factors, expected revenue growth, costs to produce, operating profit margins and estimated capital needs; (b) an estimated terminal value that utilized a terminal year growth rate of 3.1% that was determined based on the growth prospects of the reporting unit; and (c) a discount rate of 13.5% based on management’s best estimate of the after-tax weighted average cost of capital. Based on the Company’s assessment as of December 31, 2019, no goodwill was determined to be impaired. During the first quarter of 2020, the Company performed an analysis of the impact of recent events, including business and industry specific considerations, on the fair value of Stratasys-Objet reporting unit. As part of this analysis the Company considered the potential impacts of COVID-19 and the sensitivity of estimates and assumptions used in the last annual impairment test as well as changes in market capitalization. During the second quarter of 2020, the Company announced a restructuring plan to reduce operating expenses as part of a cost realignment program to focus on profitable growth (the “ Plan ” ). The Plan’s cost-cutting measures included workforce reductions affecting approximately 10% of employees, as well as other cost-mitigation measures. Please refer to Note 12 for further discussion. The Company reassessed its analysis from the first quarter in light of macroeconomic developments and its cost-cutting measures. Based on the Company's goodwill assessment for the Stratasys-Objet reporting unit, the Company determined that no impairment was required as of March 31, 2020, and June 30, 2020. During the third quarter of 2020, the Company noted that indicators of potential impairment existed which required an interim goodwill impairment analysis for Stratasys-Objet reporting unit. These indicators included longer and deeper than expected reduction in the business, refinement to the company’s business focus into additional inorganic technologies and sustained decline in the Company’s market capitalization during the past two quarters, all, primarily as a result of the COVID-19 impact on the global economy and the Company’s business. As a result of the factors discussed above, the Company revisited its assumptions supporting the cash flow projections for its Stratasys-Objet reporting unit, including: (i) the expected duration and depth of revenue reduction and certain revenue growth assumptions; (ii) the associated operating profit margins; (iii) the long term growth rate; and (iv) the discount rate . In estimating the discounted cash flow, the Company used the following key assumptions: the Company currently expects it will take approximately two years to regain the loss of revenue and return to its pre COVID-19 activity levels considering the impact of both volume and price with a similar effect on profitability. Following such period, the Company expects to return to similar growth rates as estimated in prior valuations. The Company assumed a long term terminal growth rate of 2.5%, lower than the 3.1% used in prior valuations. In addition, changes in business focus due to introduction of new technologies were expected to lower the total revenues attributable to the Stratasys-Objet reporting unit. The resulting cash flow amounts were discounted using the same discount rate of 13.5%. Based on the revised cash flow projections, the value of the reporting unit decreased below its carrying value, and the Company recorded in the third quarter of 2020 a goodwill impairment charge of $386.2 million, the entire reporting unit’s goodwill. The goodwill balance as of December 31, 2020 was acquired as part of Origin acquisition (see Note 2). |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, Net | Note 8. Other Intangible Assets, Net Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 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 357,863 (260,123 ) 97,740 299,100 (252,136 ) 46,964 Patents 17,699 (8,487 ) 9,212 15,142 (7,067 ) 8,075 Trademarks and trade names 26,036 (21,114 ) 4,922 25,991 (19,966 ) 6,025 Customer relationships 101,107 (81,413 ) 19,695 102,936 (76,813 ) 26,123 Capitalized software development costs 7,410 (7,410 ) - 18,630 (18,489 ) 141 510,115 (378,547 ) 131,569 461,799 (374,471 ) 87,328 Amortization expenses Amortization expense relating to intangible assets for the years ended December 31, 2020, 2019 and 2018, was approximately $24.3 million, $25.2 million and $32.4 million, respectively. The decrease in amortization expense in 2020 and 2019 was primarily due to change in the estimated useful lives of certain intangibles assets as of December 31, 2018. As of December 31, 2020, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expenses Year ending December 31, (U.S. $ in thousands) 2021 30,092 2022 30,036 2023 14,439 2024 10,544 2025 8,006 2026 and thereafter 38,452 Total 131,569 During the years ended December 31, 2020 and 2018, the Company recorded impairment charges of $5.3 million and |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 were as follows: December 31, 2020 2019 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 645,318 $ 113,419 Inventory related 3,892 2,538 Intangibles assets 19,081 16,628 Provision for employee related obligations 557 984 Stock-based compensation expense 7,507 6,936 Deferred revenue 1,871 1,592 Property, plant and equipment 835 1,063 Allowance for credit losses 249 217 Foreign currency losses 278 12 Research and development credit carry forwards 16,693 16,239 Other items (4,344 ) 3,148 Gross deferred tax assets 691,937 162,776 Valuation allowance (661,979 ) (151,771 ) Total deferred tax assets $ 29,958 $ 11,005 Deferred tax liabilities Intangibles assets $ (21,567 ) $ (7,245 ) Property, plant and equipment (2,847 ) (1,683 ) Total deferred tax liabilities $ (24,414 ) $ (8,928 ) Net deferred tax assets $ 5,544 $ 2,077 The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, 2020 December 31, 2019 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 5,586 $ 2,118 Deferred tax liabilities 42 41 Net deferred tax assets $ 5,544 $ 2,077 As of December 31, 2020 and 2019 the Company had tax net operating losses carry-forward of approximately $607.3 million and $490.0 million, respectively. In addition, we incurred capital losses of $2,203.2 million as of December 31, 2020 due to a legal reorganization of certain entities in our group. Those tax losses carry-forward resulted in deferred tax assets of approximately $645.3 million and $113.4 million, as of December 31, 2020 and 2019, respectively. As a result of losses incurred 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 that are not expected to be realized. 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. A reconciliation of the beginning and ending balances of valuation allowance is as follows: Valuation allowance U.S. $ in thousands Balance at January 1, 2018 $ 152,062 Additions 597 Balance at December 31, 2018 $ 152,659 Decrease (888 ) Balance at December 31, 2019 $ 151,771 Additions 524,215 Decrease (14,007 ) Balance at December 31, 2020 $ 661,979 Included in the net deferred tax are net operating loss and credit carryovers of $151.4 million which expire in years ending from December 31, 2022 through December 31, 2038, whereas some losse s may be carried forward 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. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted into law in response to the economic fallout of the COVID-19 pandemic in the United States. 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, 2020, 2019 and 2018 was as follows: 2020 2019 2018 (U.S. $ in thousands) Domestic $ (381,935 ) $ (11,895 ) $ (17,848 ) Foreign (74,636 ) 4,751 9,634 $ (456,571 ) $ (7,144 ) $ (8,214 ) The components of income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 (U.S. $ in thousands) Current Domestic $ 4,992 $ 3,392 $ (722 ) Foreign (3,902 ) 2,524 9,414 1,090 5,916 8,692 Deferred Domestic (4,112 ) (2,007 ) (3,169 ) Foreign (13,372 ) (386 ) (787 ) (17,484 ) (2,393 ) (3,956 ) Total income taxes $ (16,394 ) $ 3,523 $ 4,736 A reconciliation of the statutory income tax rate and the effective tax rate for the years ended December 31, 2020, 2019 and 2018 is set forth below: 2020 2019 2018 Statutory tax rate 23.0 % 23.0 % 23.0 % Approved and Privileged enterprise benefits (1.4 ) 18.0 16.0 Goodwill impairment (17.5 ) - - Stock compensation expense (0.5 ) (21 ) (24.0 ) Tax contingencies 1.0 (57.1 ) (38.4 ) Non-deductible acquisition expenses - (1.4 ) (2.3 ) Earning taxed under foreign law (4.1 ) (14.9 ) (21.6 ) Valuation Allowance 3.1 - 6.4 Changes to the prior year’s tax assessment - (2.7 ) (15.3 ) Deferred Tax due to different tax rate 0.1 11.2 - Non recurring Capital gain - 11.5 Withholding tax - (1.7 ) - Other (0.1 ) (2.6 ) (1.4 ) Effective income tax rate 3.6 % (48.9 )% (57.6 )% For the year ended December 31, 2020, the above rate reconciliation table reflects the impact of goodwill impairment, which is not deductible for tax and 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. A reconciliation of the beginning and ending balance of uncertain tax positions is as follows: 2020 2019 2018 (U.S. $ in thousands) Balance at beginning of year 25,517 22,044 27,317 Additions for tax positions related to the current year 312 2,336 12,321 Foreign currency impact 3,017 1,353 (2,000 ) Adjustments for tax positions related tax settlements - - (15,576 ) Reduction of reserve for statute expirations (5,457) (216 ) (18 ) Balance at end of year $ 23,389 $ 25,517 $ 22,044 The Company’s accrual for estimated interest and penalties was $2.2 million as of December 31, 2020. 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.— Federal 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 for 2018 and thereafter is 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 2020. 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. 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, 2020, tax-exempt income of approximately $268.7 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 $26.8 million would be incurred as of December 31, 2020. 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. 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, 2020 | |
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, 2020 | |
Stockholders' Equity Note [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, 2020 and 54,441 (See Note 2) 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, 2020, 0.7 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, 2020 is as follows: Number of Options Weighted Average Exercise Price Options outstanding as of December 31, 2019 1,961,532 $ 31.16 Granted 440,000 17.55 Exercised (11,184 ) 17.15 Forfeited (287,819 ) 33.55 Options outstanding as of December 31, 2020 2,102,529 $ 28.06 Options exercisable as of December 31, 2020 1,691,217 $ 30.64 The following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Outstanding Weighted- Average Exercisable options at Remaining Weighted- Average options at Weighted- Average Range of December 31, Contractual Exercise December 31, Exercise Exercise Prices 2020 Life in Years Price 2020 Price $ 2.74 - $ 19.61 411,295 8.99 $ 17.23 62,959 $ 19.32 $ 19.66 - $ 19.66 651,452 6.04 19.66 608,026 19.66 $ 19.96 - $ 23.41 543,156 6.25 21.84 524,669 21.85 $ 24.66 - $ 120.51 496,626 3.62 54.81 495,563 54.87 2,102,529 6.10 $ 28.06 1,691,217 $ 30.64 Aggregate intrinsic value (U.S. $ in thousands) $ 2,213 $ 820 As of December 31, 2020, the weighted-average remaining contractual life of exercisable options was 5.5 years. The total intrinsic value of options exercised during 2020, 2019 and 2018 was approximately $0.04 million, $1.0 million and $0.6 million, respectively. The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2020. No options were granted during 2019. The following assumptions were applied in determining the options’ fair value on their grant date: 2020 2018 Risk-free interest rate 0.4%-1.8% 2.9%-3.1% Expected option term (years) 5.0-5.1 5.3-5.5 Expected share price volatility 52.5%-52.8% 52.0%-52.2% Dividend yield - - Weighted average grant date fair value $8.09 $11.49 As of December 31, 2020, the Company had 0.4 million unvested options. As of December 31, 2020, the unrecognized compensation cost related to all unvested, equity-classified stock options of $3.4 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 3.1 years. Restricted Stock Units and Performance Stock Units A summary of the Company’s RSUs and PSUs activity for the year ended December 31, 2020 is as follows: Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs and PSUs outstanding as of December 31, 2019 2,362,991 $ 24.10 Granted 1,671,436 17.90 Vested (677,249 ) 23.19 Forfeited (556,062 ) 21.80 Unvested RSUs and PSUs outstanding as of December 31, 2020 2,801,116 $ 21.08 The total vesting-date value of equity classified RSUs vested during 2020 was $10.6 million. As of December 31, 2020, the unrecognized compensation cost related to all unvested equity classified RSUs and PSUs of $42.3 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 2.5 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: 2020 2019 2018 (U.S. $ in thousands) Cost of revenues $ 1,771 $ 1,848 $ 1,474 Research and development, net 6,102 5,167 3,215 Selling, general and administrative 12,331 13,549 10,997 Total stock-based compensation expenses $ 20,204 $ 20,564 $ 15,686 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, 2020, 2019 and 2018: Year ended December 31, 2020 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2020 $ (10 ) $ (7,706 ) $ (7,716 ) Other comprehensive loss before reclassifications (1,024 ) 533 (490 ) Amounts reclassified from accumulated other comprehensive loss (639 ) - (639 ) Other comprehensive income (loss) (1,663 ) 533 (1,130 ) Balance as of December 31, 2020 $ (1,673 ) $ (7,173 ) $ (8,846 ) Year ended December 31, 2019 Net unrealized gain (loss) on cash flow hedges Foreign currency translation 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 ) 0 (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 (loss) on cash flow hedges Foreign currency translation 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 ) |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2020 2019 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 56 $ 63 $ 36,882 $ 11,001 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 793 315 10,417 25,045 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (1,098 ) (388 ) 37,999 92,929 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (1,584 ) (326 ) 50,186 45,262 $ (1,833 ) $ (336 ) $ 135,484 $ 174,237 Foreign exchange contracts not designated as hedging instruments As of December 31, 20 20 , the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $ 74 .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, loss of $ 6 . 2 million and gain of $ 2. 9 million were recognized under financial income, net for the years ended December 31, 20 20 and 201 9 , respectively. Such gains partially offset the revaluation losses of the balance sheet items, which are also recognized under financial income, net. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Payroll As of December 31, 2020 and 2019, the Company had in effect foreign exchange forward contracts for the conversion of $10.4 million and $25.0 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 2021. 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, 2020, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of Euro 42.0 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 statement of operations Revenues Cost of revenues Research and development, net Selling, general and administrative Financial expenses (income), net Other comprehensive income December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ (520,817 ) - $ 301,423 $ 322,388 $ 84,012 $ 94,253 $ 205,224 $ 231,138 $ 575 $ (4,555 ) $ (1,130 ) $ 37 Foreign exchange contracts designated as a hedging instrument 235 - (198 ) (24 ) (279 ) (382 ) (397 ) (525 ) - - (1,663 ) 617 Foreign exchange contracts not designated as a hedging instrument - - - - - - - - 6,194 (2,868 ) - - $ 521,052 - $ 301,225 $ 322,364 $ 83,733 $ 93,871 $ 204,827 $ 230,613 $ 6,769 $ (7,423 ) $ (2,793 ) $ 654 |
Entity-Wide Disclosure
Entity-Wide Disclosure | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Entity-Wide Disclosure | Note 13. Entity-Wide Disclosure Revenues by geographic area for the years ended December 31, 2020, 2019 and 2018 were as follows*: Year ended December 31, 2020 2019 2018 (U.S. $ in thousands) Americas (primarily the United States) $ 343,477 $ 415,862 $ 409,741 EMEA 101,584 124,967 147,162 Asia Pacific 75,756 95,251 106,334 $ 520,817 $ 636,080 $ 663,237 * Revenues are attributed to geographic areas based on the location of customer. No single customer accounted for 10% or more of Company’s total revenues, or Company’s net accounts receivable, in any fiscal year presented. Property, plant and equipment by geographical area were as follows: Year ended December 31, 2020 2019 (U.S. $ in thousands) Americas (primarily the United States) $ 53,830 $ 58,169 EMEA 143,907 127,234 Asia Pacific 3,495 4,303 $ 201,232 $ 189,706 Property, plant and equipment that were located in Israel amounted to $126.9 million and $110.9 million for the years ended December 31, 2020 and 2019, respectively and are included under the EMEA region in the above table. |
Loss per Share
Loss per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss per Share | Note 14. Loss per Share The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (443,721 ) $ (10,849 ) $ (10,964 ) Adjustment of redeemable non-controlling interest to redemption amount - - (935 ) Net loss attributable to Stratasys Ltd. for basic loss per share (443,721 ) (10,849 ) (11,899 ) Denominator: Weighted average shares – denominator for basic net loss per share 54,918 54,260 53,751 Net loss per share Basic $ (8.08 ) $ (0.20 ) $ (0.22 ) Diluted $ (8.08 ) $ (0.20 ) $ (0.22 ) The computation of diluted net loss per share for the years ended December 31, 2020, 2019 and 2018 excluded share awards of 4.9 million, 4.3 million and 4.0 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, 2020 | |
Disclosure Text Block [Abstract] | |
Leases | Note 15. Leases The Company’s o perating lease expenses are recognized on a straight-line basis . December 31, December 31, 2020 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate 10,102 8,564 Total operating lease cost 10,102 8,564 Cash flow and other information related to operating leases were as follows: December 31, December 31, 2020 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities 10,559 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities 10,008 7,246 December 31, December 31, 2020 2019 Weighted-average remaining lease term — operating leases 3.00 years 3.18 years Weighted-average discount rate — operating leases 4.78 % 4.72 % Maturities of operating lease liabilities were as follows: December 31, 2020 (U.S. $ in thousands) 2021 9,508 2022 6,667 2023 4,616 2024 2,120 2025 449 2026 and thereafter 48 Total operating lease payments 23,408 Less: imputed interest (1,559) Present value of lease liabilities 21,849 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, valuation allowance, uncertain tax positions, recoverability of intangibles and goodwill and purchase price allocation In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences, of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, the accounting estimates and assumptions may change over time in response to COVID-19. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; and the allowance for expected credit losses and bad debt. |
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. 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 | Accounts Receivable The Company’s accounts receivable Accounts receivable are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. On a periodic basis, the Company evaluates the collectability of its accounts receivable 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. The Company’s accounts receivable accounting policy from January 1, 2020, following the adoption of the new CECL standard The Company adopted this guidance effective January 1, 2020, with no material impact on its consolidated financial statements. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Allowance for due to the Company’s accounts receivable amounted to $ thousand and $ thousand as of December 31, 20 and 201 , respectively. Changes in the allowance for are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for 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. 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. |
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. |
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. 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 8 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 revenues. 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. 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. 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 ( ” ” 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 $4.1 million and $4.2 million as of December 31, 2020 and 2019, 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, 2020 and 2019, the Company had $3.1 million and $3.3 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, 2020, 2019 and 2018 were $9.1 million, $4.0 million and $4.1 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, 2020, 2019 and 2018 the Company made 401(k) Plan contributions of approximately $4.1 million, $4.2 million and $3.2 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 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 accounting standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous revenue recognition guidance. The impact of the adjustment of the results for 2018 based on the revenue recognition standard in place of 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. 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 $6.3 million, $16.2 million and $15.9 million, for the years ended December 31, 2020, 2019 and 2018, respectively. |
Research and Development Costs | Research and Development Expenses 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. 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 ( “ ” 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 , 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 accounts for forfeitures as they occur. 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. |
Restructuring Plan | Restructuring Plan 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. |
Loss per Share | Loss per Share Basic loss 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 net loss 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 net loss 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, accounts receivables, operating lease liabilities 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. |
Leases | Leases Leases prior to the adoption of ASC 842, Leases 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 was $8.2 million. Leases following the adoption of ASC 842, Leases 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. T he Company recognized right-of-use assets of $ 2 . and $27.4 million and lease liabilities of $2 . and 27.9 million for its operating leases a s of December 31 , 2020 and 2019, respectively 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 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 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. 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 J 202 and the latest is until the end of October 2028. During the extended lease period, the aggregate annually rental payments will increase by 2%- % each year. The company also leases vehicles for its employees with different commencement and ending periods in Israel and Germany solely. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements Accounting Pronouncements Adopted in 2020 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 Company adopted this guidance effective January 1, 2020, with no material impact on its consolidated financial statements In August 2018, the FASB issued an ASU 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 Company adopted this guidance effective January 1, 2020, with no material impact on its consolidated financial statements. 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 effects of this standard on our financial position, results of operations and cash flows are not expected to have a material impact. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | 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 | Weighted Average Useful Life (in Years) Developed technology 8 Patents 8 Trade names 9 Customer relationships 7 |
Certain Transactions (Tables)
Certain Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Certain Transactions [Abstract] | |
Schedule of fair value of the consideration transferred to Origin stockholders for the Origin transaction | U.S. $ in thousands Cash payments $ 33,076 * Issuance of ordinary shares to Origin stockholders 26,636 Contingent consideration at estimated fair value 37,400 Total consideration $ 97,112 |
Schedule of preliminary allocation of the purchase price to assets acquired and liabilities | Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 2,083 Goodwill 35,694 Intangible assets 71,131 Other assets 5,285 Total assets acquired 114,193 Net deferred tax liabilities 14,007 Other labilities 3,074 Total liabilities assumed 17,081 Net assets acquired $ 97,112 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of disaggregated by geographical region | Year ended December 31, 2020 2019 2018 (U.S. $ in thousands) Americas Products $205,741 $ 257,119 $ 251,589 Service $137,736 158,743 158,152 Total Americas $343,477 415,862 409,741 EMEA Products 78,105 98,693 119,151 Service 23,479 26,274 28,011 Total EMEA 101,584 124,967 147,162 Asia Pacific Products 55,936 74,934 85,764 Service 19,820 20,317 20,570 Total Asia Pacific 75,756 95,251 106,334 Total Revenues $520,817 $ 636,080 $ 663,237 |
Schedule of disaggregation of revenues | Year ended December 31, 2020 2019 2018 Revenues recognized in point in time from: Products $ 339,782 $ 430,746 $ 456,504 Services 40,405 43,885 130,973 Total revenues recognized in point in time 380,187 474,631 587,477 Revenues recognized over time from: Services 140,630 161,449 75,760 Total revenues recognized over time 140,630 161,449 75,760 Total Revenues $ 520,817 $ 636,080 $ 663,237 |
Schedule of changes in deferred revenue | December 31, December 31, 2020 2019 U.S. $ in thousands Deferred revenue* 63,392 68,307 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities carried at fair value on a recurring basis | December 31, 2020 December 31, 2019 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 56 $ 63 Foreign exchange forward contracts designated as hedging instruments 793 315 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (1,098 ) (388 ) Foreign exchange forward contracts designated as hedging instruments (1,584 ) (326 ) $ (1,833 ) $ (336 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2020 2019 U.S. $ in thousands Finished goods $ 61,297 $ 87,967 Work-in-process 3,163 3,106 Raw materials 67,212 77,431 $ 131,672 $ 168,504 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, December 31, 2020 2019 (U.S. $ in thousands) Machinery and equipment $ 147,531 $ 140,413 Buildings and improvements 172,868 149,022 Computer equipment and software 49,233 46,900 Office equipment, furniture and fixtures 13,966 13,780 Land 19,302 19,058 402,900 369,173 Accumulated depreciation (202,556 ) (180,769 ) 200,344 188,404 Construction work in progress 888 1,302 $ 201,232 $ 189,706 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Goodwill [Abstract] | |
Schedule of changes in the carrying amount of goodwill | 2020 2019 (U.S. $ in millions) Balance at January 1, $ 385,658 $ 385,849 Goodwill acquired 35,694 - Goodwill impairment charges (386,154 ) - Currency translation adjustments and disposition 496 (191 ) Balance at December 31, $ 35,694 $ 385,658 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | December 31, 2020 December 31, 2019 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 357,863 (260,123 ) 97,740 299,100 (252,136 ) 46,964 Patents 17,699 (8,487 ) 9,212 15,142 (7,067 ) 8,075 Trademarks and trade names 26,036 (21,114 ) 4,922 25,991 (19,966 ) 6,025 Customer relationships 101,107 (81,413 ) 19,695 102,936 (76,813 ) 26,123 Capitalized software development costs 7,410 (7,410 ) - 18,630 (18,489 ) 141 510,115 (378,547 ) 131,569 461,799 (374,471 ) 87,328 |
Schedule of estimated future amortization expense relating to definite life intangible assets | Estimated amortization expenses Year ending December 31, (U.S. $ in thousands) 2021 30,092 2022 30,036 2023 14,439 2024 10,544 2025 8,006 2026 and thereafter 38,452 Total 131,569 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of company's deferred tax assets and liabilities | December 31, 2020 2019 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 645,318 $ 113,419 Inventory related 3,892 2,538 Intangibles assets 19,081 16,628 Provision for employee related obligations 557 984 Stock-based compensation expense 7,507 6,936 Deferred revenue 1,871 1,592 Property, plant and equipment 835 1,063 Allowance for credit losses 249 217 Foreign currency losses 278 12 Research and development credit carry forwards 16,693 16,239 Other items (4,344 ) 3,148 Gross deferred tax assets 691,937 162,776 Valuation allowance (661,979 ) (151,771 ) Total deferred tax assets $ 29,958 $ 11,005 Deferred tax liabilities Intangibles assets $ (21,567 ) $ (7,245 ) Property, plant and equipment (2,847 ) (1,683 ) Total deferred tax liabilities $ (24,414 ) $ (8,928 ) Net deferred tax assets $ 5,544 $ 2,077 |
Schedule of deferred tax assets and liabilities classified in consolidated balance sheets | December 31, 2020 December 31, 2019 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 5,586 $ 2,118 Deferred tax liabilities 42 41 Net deferred tax assets $ 5,544 $ 2,077 |
Schedule of valuation allowance | Valuation allowance U.S. $ in thousands Balance at January 1, 2018 $ 152,062 Additions 597 Balance at December 31, 2018 $ 152,659 Decrease (888 ) Balance at December 31, 2019 $ 151,771 Additions 524,215 Decrease (14,007 ) Balance at December 31, 2020 $ 661,979 |
Schedule of loss before Income Taxes | 2020 2019 2018 (U.S. $ in thousands) Domestic $ (381,935 ) $ (11,895 ) $ (17,848 ) Foreign (74,636 ) 4,751 9,634 $ (456,571 ) $ (7,144 ) $ (8,214 ) |
Schedule of components of income taxes | 2020 2019 2018 (U.S. $ in thousands) Current Domestic $ 4,992 $ 3,392 $ (722 ) Foreign (3,902 ) 2,524 9,414 1,090 5,916 8,692 Deferred Domestic (4,112 ) (2,007 ) (3,169 ) Foreign (13,372 ) (386 ) (787 ) (17,484 ) (2,393 ) (3,956 ) Total income taxes $ (16,394 ) $ 3,523 $ 4,736 |
Schedule of reconciliation of income tax rate | 2020 2019 2018 Statutory tax rate 23.0 % 23.0 % 23.0 % Approved and Privileged enterprise benefits (1.4 ) 18.0 16.0 Goodwill impairment (17.5 ) - - Stock compensation expense (0.5 ) (21 ) (24.0 ) Tax contingencies 1.0 (57.1 ) (38.4 ) Non-deductible acquisition expenses - (1.4 ) (2.3 ) Earning taxed under foreign law (4.1 ) (14.9 ) (21.6 ) Valuation Allowance 3.1 - 6.4 Changes to the prior year’s tax assessment - (2.7 ) (15.3 ) Deferred Tax due to different tax rate 0.1 11.2 - Non recurring Capital gain - 11.5 Withholding tax - (1.7 ) - Other (0.1 ) (2.6 ) (1.4 ) Effective income tax rate 3.6 % (48.9 )% (57.6 )% |
Schedule of unrecognized tax benefits | 2020 2019 2018 (U.S. $ in thousands) Balance at beginning of year 25,517 22,044 27,317 Additions for tax positions related to the current year 312 2,336 12,321 Foreign currency impact 3,017 1,353 (2,000 ) Adjustments for tax positions related tax settlements - - (15,576 ) Reduction of reserve for statute expirations (5,457) (216 ) (18 ) Balance at end of year $ 23,389 $ 25,517 $ 22,044 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of RSUs and PSUs Activity | Number of Options Weighted Average Exercise Price Options outstanding as of December 31, 2019 1,961,532 $ 31.16 Granted 440,000 17.55 Exercised (11,184 ) 17.15 Forfeited (287,819 ) 33.55 Options outstanding as of December 31, 2020 2,102,529 $ 28.06 Options exercisable as of December 31, 2020 1,691,217 $ 30.64 |
Schedule of Stock Options Outstanding | Options Outstanding Options Exercisable Outstanding Weighted- Average Exercisable options at Remaining Weighted- Average options at Weighted- Average Range of December 31, Contractual Exercise December 31, Exercise Exercise Prices 2020 Life in Years Price 2020 Price $ 2.74 - $ 19.61 411,295 8.99 $ 17.23 62,959 $ 19.32 $ 19.66 - $ 19.66 651,452 6.04 19.66 608,026 19.66 $ 19.96 - $ 23.41 543,156 6.25 21.84 524,669 21.85 $ 24.66 - $ 120.51 496,626 3.62 54.81 495,563 54.87 2,102,529 6.10 $ 28.06 1,691,217 $ 30.64 Aggregate intrinsic value (U.S. $ in thousands) $ 2,213 $ 820 |
Schedule of Stock Option Assumptions | 2020 2018 Risk-free interest rate 0.4%-1.8% 2.9%-3.1% Expected option term (years) 5.0-5.1 5.3-5.5 Expected share price volatility 52.5%-52.8% 52.0%-52.2% Dividend yield - - Weighted average grant date fair value $8.09 $11.49 |
Summary of RSUs and PSUs Activity | Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs and PSUs outstanding as of December 31, 2019 2,362,991 $ 24.10 Granted 1,671,436 17.90 Vested (677,249 ) 23.19 Forfeited (556,062 ) 21.80 Unvested RSUs and PSUs outstanding as of December 31, 2020 2,801,116 $ 21.08 |
Schedule of stock-based compensation expense | 2020 2019 2018 (U.S. $ in thousands) Cost of revenues $ 1,771 $ 1,848 $ 1,474 Research and development, net 6,102 5,167 3,215 Selling, general and administrative 12,331 13,549 10,997 Total stock-based compensation expenses $ 20,204 $ 20,564 $ 15,686 |
Schedule of accumulated other comprehensive loss | Year ended December 31, 2020 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2020 $ (10 ) $ (7,706 ) $ (7,716 ) Other comprehensive loss before reclassifications (1,024 ) 533 (490 ) Amounts reclassified from accumulated other comprehensive loss (639 ) - (639 ) Other comprehensive income (loss) (1,663 ) 533 (1,130 ) Balance as of December 31, 2020 $ (1,673 ) $ (7,173 ) $ (8,846 ) Year ended December 31, 2019 Net unrealized gain (loss) on cash flow hedges Foreign currency translation 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 ) 0 (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 (loss) on cash flow hedges Foreign currency translation 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 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet classification and fair values of derivative instruments | Fair Value Notional Amount December 31, December 31, December 31, December 31, Balance sheet location 2020 2019 2020 2019 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 56 $ 63 $ 36,882 $ 11,001 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 793 315 10,417 25,045 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (1,098 ) (388 ) 37,999 92,929 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (1,584 ) (326 ) 50,186 45,262 $ (1,833 ) $ (336 ) $ 135,484 $ 174,237 |
Schedule of cash flow hedging instruments location in income statement | Revenues Cost of revenues Research and development, net Selling, general and administrative Financial expenses (income), net Other comprehensive income December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ (520,817 ) - $ 301,423 $ 322,388 $ 84,012 $ 94,253 $ 205,224 $ 231,138 $ 575 $ (4,555 ) $ (1,130 ) $ 37 Foreign exchange contracts designated as a hedging instrument 235 - (198 ) (24 ) (279 ) (382 ) (397 ) (525 ) - - (1,663 ) 617 Foreign exchange contracts not designated as a hedging instrument - - - - - - - - 6,194 (2,868 ) - - $ 521,052 - $ 301,225 $ 322,364 $ 83,733 $ 93,871 $ 204,827 $ 230,613 $ 6,769 $ (7,423 ) $ (2,793 ) $ 654 |
Entity-Wide Disclosure (Tables)
Entity-Wide Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of net sales by geographical area | Year ended December 31, 2020 2019 2018 (U.S. $ in thousands) Americas (primarily the United States) $ 343,477 $ 415,862 $ 409,741 EMEA 101,584 124,967 147,162 Asia Pacific 75,756 95,251 106,334 $ 520,817 $ 636,080 $ 663,237 * Revenues are attributed to geographic areas based on the location of customer. |
Schedule of property, plant and equipment by geographical location | Year ended December 31, 2020 2019 (U.S. $ in thousands) Americas (primarily the United States) $ 53,830 $ 58,169 EMEA 143,907 127,234 Asia Pacific 3,495 4,303 $ 201,232 $ 189,706 |
Loss per Share (Tables)
Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted net loss per share | Year ended December 31, 2020 2019 2018 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (443,721 ) $ (10,849 ) $ (10,964 ) Adjustment of redeemable non-controlling interest to redemption amount - - (935 ) Net loss attributable to Stratasys Ltd. for basic loss per share (443,721 ) (10,849 ) (11,899 ) Denominator: Weighted average shares – denominator for basic net loss per share 54,918 54,260 53,751 Net loss per share Basic $ (8.08 ) $ (0.20 ) $ (0.22 ) Diluted $ (8.08 ) $ (0.20 ) $ (0.22 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of operating lease cost | December 31, December 31, 2020 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate 10,102 8,564 Total operating lease cost 10,102 8,564 |
Schedule of other information related to operating leases | December 31, December 31, 2020 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities 10,559 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities 10,008 7,246 |
Schedule of weighted-average operating leases | December 31, December 31, 2020 2019 Weighted-average remaining lease term — operating leases 3.00 years 3.18 years Weighted-average discount rate — operating leases 4.78 % 4.72 % |
Schedule of maturities of operating lease liabilities | December 31, 2020 (U.S. $ in thousands) 2021 9,508 2022 6,667 2023 4,616 2024 2,120 2025 449 2026 and thereafter 48 Total operating lease payments 23,408 Less: imputed interest (1,559) Present value of lease liabilities 21,849 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Nature of Operations and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Number of operating segments | 1 | ||
Accounts receivable, net of allowance for credit losses | $ 870 | $ 939 | |
Severance pay liabilities | 4,100 | 4,200 | |
Deposit in insurance policies and pension funds | 3,100 | 3,300 | |
Severance expenses | $ 9,100 | 4,000 | $ 4,100 |
Annual taxable, percentage | 50.00% | ||
Annual compensation, percentage | 4.00% | ||
401(k) Plan contributions | $ 4,100 | 4,200 | 3,200 |
Increase in retained earnings | 1,400 | ||
Advertising costs | 6,300 | 16,200 | 15,900 |
Lease liability | 1,000 | 27,900 | |
Right of use asset | 21,300 | $ 27,400 | |
operating leases | $ 2,000 | ||
Income tax, percentage | 25.00% | ||
Maximum additional tax rate on distribution of dividends | 10.00% | ||
Settlement percentage | 50.00% | ||
Rental expense | $ 8,200 | ||
Remaining economic life of the underlying asset | 75.00% | ||
Fair value of the underlying asset | 90.00% | ||
Leases 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 June 2021 and the latest is until the end of October 2028. During the extended lease period, the aggregate annually rental payments will increase by 2%-4% each year. | ||
Minimum [Member] | |||
Nature of Operations and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Annually rental payments | 2.00% | ||
Maximum [Member] | |||
Nature of Operations and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Annually rental payments | 4.00% |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [Member] | Minimum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 25 years |
Buildings [Member] | Maximum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 10 years |
Buildings improvements [Member] | Minimum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Buildings improvements [Member] | Maximum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 10 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 3 years |
Computer Equipment and Software [Member] | Maximum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Minimum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Maximum [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 14 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Developed technology [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 8 years |
Patents [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 8 years |
Trade names [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 9 years |
Customer relationships [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 7 years |
Certain Transactions (Details)
Certain Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 02, 2020 | |
Certain Transactions (Details) [Line Items] | ||||||||||
Aggregate purchase price | $ 97,100 | |||||||||
Exchange agreement | In exchange for 100% of the outstanding shares of Origin the Company issued 1,488 thousand ordinary shares, paid cash upon closing and is obligated to pay additional payments (combination of cash and shares) subject to performance-based earnouts over 3 years. | |||||||||
Exchange for outstanding shares, percentage | 100.00% | |||||||||
Based earnouts over term | 3 years | |||||||||
Consideration paid | $ 31,200 | |||||||||
Contingent Consideration, description | The total contingent payments could reach to a maximum aggregate amount of up to $ 40 million. Approximately 50% of the payments shall be settled in cash, and 50% shall be settled through the issuance of ordinary shares. | |||||||||
Additional payment amount | $ 6,000 | |||||||||
Retention period | 3 years | |||||||||
Intangible asset | $ 71,000 | |||||||||
Intangible asset useful-life | 10 years | |||||||||
Net gain on divestiture of minority interest | $ 3,578 | $ 7,908 | ||||||||
Sale of stock | 3,200 | |||||||||
Sale of solidscape | 1,000 | |||||||||
Operating expenses | 675,390 | $ 325,391 | 334,071 | |||||||
Restructuring plan, percentage | 10.00% | |||||||||
Employee related charges | 6,400 | |||||||||
Other related charges | 3,900 | |||||||||
Bank Loan [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Proceeds from secured debt | $ 26,000 | |||||||||
Interest rate | 3.35% | |||||||||
Credit Line [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Proceeds from secured debt | $ 24,000 | |||||||||
Proceeds from lines of credit | $ 10,000 | |||||||||
Xaar 3D [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Investment, description | 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. | |||||||||
Additional interest amount | $ 15,700 | |||||||||
LPW Technology [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Consideration paid | $ 33,600 | |||||||||
Net gain on divestiture of minority interest | $ 13,500 | |||||||||
Net loss for the year ended | 4,600 | |||||||||
Solidscape Divestment [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Net gain on divestiture of minority interest | $ 7,000 | |||||||||
Evolve Research and Development Project [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Operating expenses | 1,600 | |||||||||
Write-off of in-process research and development project | $ 5,000 | |||||||||
Unconsolidated Entity [Member] | ||||||||||
Certain Transactions (Details) [Line Items] | ||||||||||
Net gain on divestiture of minority interest | $ 3,600 |
Certain Transactions (Details)
Certain Transactions (Details) - Schedule of fair value of the consideration transferred to Origin stockholders for the Origin transaction $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Schedule of fair value of the consideration transferred to Origin stockholders for the Origin transaction [Abstract] | ||
Cash payments | $ 33,076 | [1] |
Issuance of ordinary shares to Origin stockholders | 26,636 | |
Contingent consideration at estimated fair value | 37,400 | |
Total consideration | $ 97,112 | |
[1] | Of which $31.2 million were paid on December 31, 2020. |
Certain Transactions (Details_2
Certain Transactions (Details) - Schedule of preliminary allocation of the purchase price to assets acquired and liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of preliminary allocation of the purchase price to assets acquired and liabilities [Abstract] | |
Cash and cash equivalents | $ 2,083 |
Goodwill | 35,694 |
Intangible assets | 71,131 |
Other assets | 5,285 |
Total assets acquired | 114,193 |
Net deferred tax liabilities | 14,007 |
Other labilities | 3,074 |
Total liabilities assumed | 17,081 |
Net assets acquired | $ 97,112 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | Jan. 02, 2020 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||||
Deferred revenue noncurrent portion | $ 14.3 | $ 16 | ||
Revenue recognized | $ 50.1 | $ 50.2 | ||
Remaining performance obligations | 85.7 | 88.4 | ||
Expected remaining performance obligations recognized during next 12 months | 71.5 | |||
Expected remaining performance obligations recognized subsequent to next 12 months and thereafter | 8.8 | |||
Deferred sales commissions | $ 5 | $ 3.9 |
Revenues (Details) - Schedule o
Revenues (Details) - Schedule of disaggregated by geographical region - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 520,817 | $ 636,080 | $ 663,237 |
Americas Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 205,741 | 257,119 | 251,589 |
Americas Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 137,736 | 158,743 | 158,152 |
Total Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 343,477 | 415,862 | 409,741 |
EMEA Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 78,105 | 98,693 | 119,151 |
EMEA Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 23,479 | 26,274 | 28,011 |
Total EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 101,584 | 124,967 | 147,162 |
Asia Pacific Products [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 55,936 | 74,934 | 85,764 |
Asia Pacific Service [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 19,820 | 20,317 | 20,570 |
Total Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 75,756 | $ 95,251 | $ 106,334 |
Revenues (Details) - Schedule_2
Revenues (Details) - Schedule of disaggregation of revenues - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | $ 520,817 | $ 636,080 | $ 663,237 |
Product [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 339,782 | 430,746 | 456,504 |
Service [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 181,035 | 205,334 | 206,733 |
Total revenues recognized in point in time [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 380,187 | 474,631 | 587,477 |
Total revenues recognized in point in time [Member] | Product [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 339,782 | 430,746 | 456,504 |
Total revenues recognized in point in time [Member] | Service [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 40,405 | 43,885 | 130,973 |
Total revenues recognized over time [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | 140,630 | 161,449 | 75,760 |
Total revenues recognized over time [Member] | Service [Member] | |||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | |||
Total Revenues | $ 140,630 | $ 161,449 | $ 75,760 |
Revenues (Details) - Schedule_3
Revenues (Details) - Schedule of changes in deferred revenue - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of changes in deferred revenue [Abstract] | |||
Deferred revenue | [1] | $ 63,392 | $ 68,307 |
[1] | Includes $14.3 million and $16.0 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2020 and December 31, 2019, respectively. |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Schedule of assets and liabilities carried at fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities: | ||
Derivative asset (liabilities) | $ (1,833) | $ (336) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | ||
Assets: | ||
Derivative assets | 56 | 63 |
Liabilities: | ||
Derivative liabilities | (1,098) | (388) |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | ||
Assets: | ||
Derivative assets | 793 | 315 |
Liabilities: | ||
Derivative liabilities | $ (1,584) | $ (326) |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Finished goods | $ 61,297 | $ 87,967 |
Work-in-process | 3,163 | 3,106 |
Raw materials | 67,212 | 77,431 |
Total inventory | $ 131,672 | $ 168,504 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 25.2 | $ 25.8 | $ 28.9 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 402,900 | $ 369,173 |
Accumulated depreciation | (202,556) | (180,769) |
Property, plant and equipment, less capital work-in-progress | 200,344 | 188,404 |
Construction work in progress | 888 | 1,302 |
Property, plant and equipment, net | 201,232 | 189,706 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 147,531 | 140,413 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 172,868 | 149,022 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 49,233 | 46,900 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,966 | 13,780 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,302 | $ 19,058 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill (Details) [Line Items] | ||||
Goodwill (in Dollars) | $ 35,694 | $ 385,658 | $ 385,849 | |
Percentage of employees | 10.00% | |||
Goodwill impairment charge (in Dollars) | $ 386,200 | |||
Stratasys-Objet reporting unit [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Discount rate | 13.50% | |||
Stratasys-Objet reporting unit [Member] | Minimum [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Growth rate | 2.50% | |||
Stratasys-Objet reporting unit [Member] | Maximum [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Growth rate | 3.10% | |||
Goodwill [Member] | Stratasys-Objet reporting unit [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Percentage of fair value exceeding carrying value of reporting units | 8.70% | |||
Goodwill (in Dollars) | $ 386,200 | |||
Expected cash flow period | 5 years | |||
Growth rate | 3.10% | |||
Discount rate | 13.50% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of changes in the carrying amount of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of changes in the carrying amount of goodwill [Abstract] | ||
Balance | $ 385,658 | $ 385,849 |
Goodwill acquired | 35,694 | |
Goodwill impairment charges | (386,154) | |
Currency translation adjustments and disposition | 496 | (191) |
Balance | $ 35,694 | $ 385,658 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 24.3 | $ 25.2 | $ 32.4 |
Impaired intangible asset, facts and circumstances leading to impairment | During the years ended December 31, 2020 and 2018, the Company recorded impairment charges of $5.3 million and $2.2 million, respectively, related to its definite life intangible assets. |
Other Intangible Assets, Net _2
Other Intangible Assets, Net (Details) - Schedule of other intangible assets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | $ 510,115 | $ 461,799 |
Accumulated Amortization | (378,547) | (374,471) |
Net Book Value | 131,569 | 87,328 |
Developed technology [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 357,863 | 299,100 |
Accumulated Amortization | (260,123) | (252,136) |
Net Book Value | 97,740 | 46,964 |
Patents [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 17,699 | 15,142 |
Accumulated Amortization | (8,487) | (7,067) |
Net Book Value | 9,212 | 8,075 |
Trademarks and trade names [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 26,036 | 25,991 |
Accumulated Amortization | (21,114) | (19,966) |
Net Book Value | 4,922 | 6,025 |
Customer relationships [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 101,107 | 102,936 |
Accumulated Amortization | (81,413) | (76,813) |
Net Book Value | 19,695 | 26,123 |
Capitalized software development costs [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 7,410 | 18,630 |
Accumulated Amortization | (7,410) | (18,489) |
Net Book Value | $ 141 |
Other Intangible Assets, Net _3
Other Intangible Assets, Net (Details) - Schedule of estimated future amortization expense relating to definite life intangible assets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of estimated future amortization expense relating to definite life intangible assets [Abstract] | ||
2021 | $ 30,092 | |
2022 | 30,036 | |
2023 | 14,439 | |
2024 | 10,544 | |
2025 | 8,006 | |
2026 and thereafter | 38,452 | |
Total | $ 131,569 | $ 87,328 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands, ₪ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 27, 2020 | Dec. 22, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017ILS (₪) | Dec. 31, 2011 | Jan. 02, 2017ILS (₪) | |
Income Taxes (Details) [Line Items] | |||||||||
Deferred tax asset (in Dollars) | $ 645,318 | $ 113,419 | |||||||
Net operating loss and credit carryovers (in Dollars) | $ 151,400 | ||||||||
Operating loss, expiration period | December 31, 2022 through December 31, 2038 | ||||||||
Reduced corporate tax rate | 16.00% | 16.00% | |||||||
Percentage of limitation uses | 80.00% | ||||||||
Valuation allowance and deferred tax assets tax rate | 21.00% | ||||||||
Change in valuation allowance (in Dollars) | $ 65,600 | ||||||||
Change in deferred tax assets (in Dollars) | $ 65,600 | $ (17,484) | (2,393) | $ (3,956) | |||||
Net operating losses, description | The CARES Act amended Internal Revenue Code Section 172(b)(1) for tax years beginning in 2018, 2019 and 2020, requiring taxpayers to carry back NOLs arising in those years to the five preceding tax years, unless the taxpayer elects to waive or reduce the carryback period. To the extent unused as a carryback, these NOLs are now carried forward indefinitely. The CARES Act suspended the Tax Cuts and Jobs Act’s 80% limitation on NOL deductions for tax years beginning in 2018, 2019 and 2020. The 80% limitation will be reinstated for tax years beginning after 2020, for NOLs arising in tax years after 2017. | ||||||||
Corporate tax rate, percentage | 7.50% | ||||||||
Enterprise benefits rate | 23.00% | ||||||||
Foreign ownership percentage basis for determining tax rate | 90.00% | ||||||||
Special preferred enterprise tax exempt period | 10 years | 10 years | |||||||
Approved enterprise and beneficiary enterprise income tax exempt or taxable rate | 10.00% | ||||||||
Dividend with holding tax rate | 15.00% | ||||||||
Lower tax rate, percentage | 30.00% | ||||||||
Tax-exempt income (in Dollars) | $ 268,700 | ||||||||
Change in corporate tax rate, amount incurred (in Dollars) | $ 26,800 | ||||||||
Special preferred enterprise of reduced tax rates 2 | 9.00% | ||||||||
Preferred enterprise of reduced tax rates | 12.00% | ||||||||
Income tax rate, pecentage | 7.50% | ||||||||
Preferred benefitted intangible assets (in New Shekels) | ₪ | ₪ 200 | ||||||||
Special preferred enterprise of reduced tax rates | 6.00% | ||||||||
Special preferred benefitted intangible assets (in New Shekels) | ₪ | ₪ 500 | ||||||||
Foreign dividend withholding tax rate | 4.00% | ||||||||
United States [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Statutory tax rates | 21.00% | ||||||||
Germany [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Statutory tax rates | 29.00% | ||||||||
Hong Kong [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Statutory tax rates | 16.50% | ||||||||
Israel [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Corporate tax rate, percentage | 23.00% | ||||||||
Dividend with holding tax rate | 15.00% | ||||||||
Israel Tax Authority [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Dividend with holding tax rate | 20.00% | ||||||||
Lower tax rate, percentage | 20.00% | ||||||||
Income witholding tax rate, percentage | 20.00% | ||||||||
Subsidiaries [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Operating losses carryforwards (in Dollars) | $ 607,300 | 490,000 | |||||||
Incurred capital losses (in Dollars) | 2,203,200 | ||||||||
Deferred tax asset (in Dollars) | 645,300 | $ 113,400 | |||||||
Accrued interest and penalties related to uncertain tax positions (in Dollars) | $ 2,200 | ||||||||
Maximum [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Reduced corporate tax rate | 35.00% | ||||||||
Foreign ownership percentage basis for determining tax rate | 25.00% | ||||||||
Special preferred enterprise tax exempt period | 10 years | ||||||||
Minimum [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Reduced corporate tax rate | 21.00% | ||||||||
Foreign ownership percentage basis for determining tax rate | 10.00% | ||||||||
Special preferred enterprise tax exempt period | 2 years |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of company's deferred tax assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Tax losses carry forwards | $ 645,318 | $ 113,419 |
Inventory related | 3,892 | 2,538 |
Intangibles assets | 19,081 | 16,628 |
Provision for employee related obligations | 557 | 984 |
Stock-based compensation expense | 7,507 | 6,936 |
Deferred revenue | 1,871 | 1,592 |
Property, plant and equipment | 835 | 1,063 |
Allowance for credit losses | 249 | 217 |
Foreign currency losses | 278 | 12 |
Research and development credit carry forwards | 16,693 | 16,239 |
Other items | (4,344) | 3,148 |
Gross deferred tax assets | 691,937 | 162,776 |
Valuation allowance | (661,979) | (151,771) |
Total deferred tax assets | 29,958 | 11,005 |
Deferred tax liabilities | ||
Intangibles assets | (21,567) | (7,245) |
Property, plant and equipment | (2,847) | (1,683) |
Total deferred tax liabilities | (24,414) | (8,928) |
Net deferred tax assets | $ 5,544 | $ 2,077 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities classified in consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of deferred tax assets and liabilities classified in consolidated balance sheets [Abstract] | ||
Deferred tax assets (under "Other non-current assets") | $ 5,586 | $ 2,118 |
Deferred tax liabilities | 42 | 41 |
Net deferred tax assets | $ 5,544 | $ 2,077 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of valuation allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of valuation allowance [Abstract] | |||
Beginning balance | $ 151,771 | $ 152,659 | $ 152,062 |
Additions | 524,215 | 597 | |
Decrease | (14,007) | (888) | |
Ending balance | $ 661,979 | $ 151,771 | $ 152,659 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of loss before Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of loss before Income Taxes [Abstract] | |||
Domestic | $ (381,935) | $ (11,895) | $ (17,848) |
Foreign | (74,636) | 4,751 | 9,634 |
Loss before income taxes | $ (456,571) | $ (7,144) | $ (8,214) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of components of income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Domestic | $ 4,992 | $ 3,392 | $ (722) |
Foreign | (3,902) | 2,524 | 9,414 |
Deferred income tax expense benefit | 1,090 | 5,916 | 8,692 |
Deferred | |||
Domestic | (4,112) | (2,007) | (3,169) |
Foreign | (13,372) | (386) | (787) |
Deferred income tax expense benefit | (17,484) | (2,393) | (3,956) |
Total income taxes | $ (16,394) | $ 3,523 | $ 4,736 |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of reconciliation of income tax rate | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of reconciliation of income tax rate [Abstract] | |||
Statutory tax rate | 23.00% | 23.00% | 23.00% |
Approved and Privileged enterprise benefits | (1.40%) | 18.00% | 16.00% |
Goodwill impairment | (17.50%) | ||
Stock compensation expense | (0.50%) | (21.00%) | (24.00%) |
Tax contingencies | 1.00% | (57.10%) | (38.40%) |
Non-deductible acquisition expenses | (1.40%) | (2.30%) | |
Earning taxed under foreign law | (4.10%) | (14.90%) | (21.60%) |
Valuation Allowance | 3.10% | 6.40% | |
Changes to the prior year’s tax assessment | (2.70%) | (15.30%) | |
Deferred Tax due to different tax rate | 0.10% | 11.20% | |
Non recurring Capital gain | 11.50% | ||
Withholding tax | (1.70%) | ||
Other | (0.10%) | (2.60%) | (1.40%) |
Effective income tax rate | 3.60% | (48.90%) | (57.60%) |
Income Taxes (Details) - Sche_7
Income Taxes (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of unrecognized tax benefits [Abstract] | |||
Balance at beginning of year | $ 25,517 | $ 22,044 | $ 27,317 |
Additions for tax positions related to the current year | 312 | 2,336 | 12,321 |
Foreign currency impact | 3,017 | 1,353 | (2,000) |
Adjustments for tax positions related tax settlements | (15,576) | ||
Reduction of reserve for statute expirations | (5,457) | (216) | (18) |
Balance at end of year | $ 23,389 | $ 25,517 | $ 22,044 |
Contingencies (Details)
Contingencies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Patent law-based claim | (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. |
Equity (Details)
Equity (Details) shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 02, 2021shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2020₪ / shares | Dec. 31, 2019₪ / shares | |
Equity (Details) [Line Items] | ||||||
Common stock, par value (in New Shekels per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||||
Ordinary shares outstanding | 56,617 | 54,441 | ||||
Common stock issued | 56,617 | 54,441 | ||||
Equity Incentive Plan, number of additional shares authorized | 500 | |||||
Weighted-average remaining contractual life | 5 years 6 months | |||||
Total intrinsic value of options exercised (in Dollars) | $ | $ 40 | $ 1,000 | $ 600 | |||
Unvested number of shares | 400 | |||||
Unrecognized compensation cost (in Dollars) | $ | $ 3,400 | |||||
Weighted average period over which unrecognized compensation cost will be recognized | 3 years 1 month 6 days | |||||
2012 Plan [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Equity Incentive Plan, number of additional shares authorized | 1,000 | |||||
Expected option term | 10 years | |||||
Equity Incentive Plan, shares authorized | 700 | |||||
Restricted Stock [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Unrecognized compensation cost (in Dollars) | $ | $ 42,300 | |||||
Weighted average period over which unrecognized compensation cost will be recognized | 2 years 6 months | |||||
Value of equity classified RSUs vested (in Dollars) | $ | $ 10,600 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of stock option activity | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of stock option activity [Abstract] | |
Options outstanding, Number of Options | shares | 1,961,532 |
Options outstanding, Weighted Average Exercise Price | $ / shares | $ 31.16 |
Granted, Number of Options | shares | 440,000 |
Granted, Weighted Average Exercise Price | $ / shares | $ 17.55 |
Exercised, Number of Options | shares | (11,184) |
Exercised, Weighted Average Exercise Price | $ / shares | $ 17.15 |
Forfeited, Number of Options | shares | (287,819) |
Forfeited, Weighted Average Exercise Price | $ / shares | $ 33.55 |
Options outstanding, Number of Options | shares | 2,102,529 |
Options outstanding, Weighted Average Exercise Price | $ / shares | $ 28.06 |
Options exercisable, Number of Options | shares | 1,691,217 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 30.64 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of stock options outstanding - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Options Outstanding, Number Outstanding (in Shares) | 2,102,529 | 1,961,532 |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 6 years 1 month 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 28.06 | $ 31.16 |
Options Exercisable, Number Exercisable (in Shares) | 1,691,217 | |
Options Exercisable, Weighted-Average Exercise Price | $ 30.64 | |
Options Outstanding, Aggregate intrinsic value (in Dollars) | $ 2,213 | |
Options Exercisable, Aggregate intrinsic value (in Dollars) | $ 820 | |
$2.74 - $19.59 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | $ 2.74 | |
Range of Exercise Prices (Upper) | $ 19.61 | |
Options Outstanding, Number Outstanding (in Shares) | 411,295 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 8 years 11 months 26 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 17.23 | |
Options Exercisable, Number Exercisable (in Shares) | 62,959 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.32 | |
$19.66 - $19.66 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 19.66 | |
Range of Exercise Prices (Upper) | $ 19.66 | |
Options Outstanding, Number Outstanding (in Shares) | 651,452 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 6 years 14 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 19.66 | |
Options Exercisable, Number Exercisable (in Shares) | 608,026 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.66 | |
$19.96 - $23.41 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 19.96 | |
Range of Exercise Prices (Upper) | $ 23.41 | |
Options Outstanding, Number Outstanding (in Shares) | 543,156 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 6 years 3 months | |
Options Outstanding, Weighted-Average Exercise Price | $ 21.84 | |
Options Exercisable, Number Exercisable (in Shares) | 524,669 | |
Options Exercisable, Weighted-Average Exercise Price | $ 21.85 | |
$24.66 - $120.51 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 24.66 | |
Range of Exercise Prices (Upper) | $ 120.51 | |
Options Outstanding, Number Outstanding (in Shares) | 496,626 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 3 years 7 months 13 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 54.81 | |
Options Exercisable, Number Exercisable (in Shares) | 495,563 | |
Options Exercisable, Weighted-Average Exercise Price | $ 54.87 |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of stock option assumptions - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Dividend yield | ||
Weighted average grant date fair value (in Dollars per share) | $ 8.09 | $ 11.49 |
Minimum [Member] | ||
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Risk-free interest rate | 0.40% | 2.90% |
Expected option term (years) | 5 years | 5 years 3 months 18 days |
Expected share price volatility | 52.50% | 52.00% |
Maximum [Member] | ||
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Risk-free interest rate | 1.80% | 3.10% |
Expected option term (years) | 5 years 1 month 6 days | 5 years 6 months |
Expected share price volatility | 52.80% | 52.20% |
Equity (Details) - Schedule o_4
Equity (Details) - Schedule of RSUs and PSUs activity | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of RSUs and PSUs activity [Abstract] | |
Unvested RSUs and PSUs outstanding, Number of RSUs and PSUs | shares | 2,362,991 |
Unvested RSUs and PSUs outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 24.10 |
Granted, Number of RSUs and PSUs | shares | 1,671,436 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | $ 17.90 |
Vested, Number of RSUs and PSUs | shares | (677,249) |
Vested, Weighted Average Grant Date Fair Value | $ / shares | $ 23.19 |
Forfeited, Number of RSUs and PSUs | shares | (556,062) |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | $ 21.80 |
Unvested RSUs and PSUs outstanding, Number of RSUs and PSUs | shares | 2,801,116 |
Unvested RSUs and PSUs outstanding as of December 31, 2019 | $ / shares | $ 21.08 |
Equity (Details) - Schedule o_5
Equity (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 20,204 | $ 20,564 | $ 15,686 |
Cost of sales [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 1,771 | 1,848 | 1,474 |
Research and Development, Net [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 6,102 | 5,167 | 3,215 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 12,331 | $ 13,549 | $ 10,997 |
Equity (Details) - Schedule o_6
Equity (Details) - Schedule of accumulated other comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ (7,716) | $ (7,753) | $ (7,023) |
Other comprehensive loss before reclassifications | (490) | 968 | (4,505) |
Amounts reclassified from accumulated other comprehensive loss | (639) | (931) | 3,775 |
Other comprehensive income (loss) | (1,130) | 37 | (730) |
Balance | (8,846) | (7,716) | (7,753) |
Net unrealized gain (loss) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (10) | (627) | 330 |
Other comprehensive loss before reclassifications | (1,024) | 1,548 | (1,814) |
Amounts reclassified from accumulated other comprehensive loss | (639) | (931) | 857 |
Other comprehensive income (loss) | (1,663) | 617 | (957) |
Balance | (1,673) | (10) | (627) |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (7,706) | (7,126) | (7,353) |
Other comprehensive loss before reclassifications | 533 | (580) | (2,691) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 2,918 | |
Other comprehensive income (loss) | 533 | (580) | 227 |
Balance | $ (7,173) | $ (7,706) | $ (7,126) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives and Hedging Activities (Details) [Line Items] | ||
Gain (loss) on derivative instrument | $ 6,200,000 | $ 2,900,000 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives and Hedging Activities (Details) [Line Items] | ||
Notional amount of derivative asset | 74.9 | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivatives and Hedging Activities (Details) [Line Items] | ||
Notional amount of derivative asset | 42,000,000 | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives and Hedging Activities (Details) [Line Items] | ||
Notional amount of derivative asset | $ 10,400,000 | $ 25,000,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details) - Schedule of balance sheet classification and fair values of derivative instruments - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ (1,833,000) | $ (336,000) |
Notional amount | 135,484,000 | 174,237,000 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 74.9 | |
Other current assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 56,000 | 63,000 |
Notional amount of derivative asset | 36,882,000 | 11,001,000 |
Accrued expenses and other current liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (1,098,000) | (388,000) |
Notional amount of derivative liability | 37,999,000 | 92,929,000 |
Cash Flow Hedge [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 42,000,000 | |
Cash Flow Hedge [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative asset | 10,400,000 | 25,000,000 |
Cash Flow Hedge [Member] | Other current assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 793,000 | 315,000 |
Notional amount of derivative asset | 10,417,000 | 25,045,000 |
Cash Flow Hedge [Member] | Accrued expenses and other current liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (1,584,000) | (326,000) |
Notional amount of derivative liability | $ 50,186,000 | $ 45,262,000 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other comprehensive income [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | $ (1,130) | $ 37 |
Foreign exchange contracts designated as a hedging instrument | (1,663) | 617 |
Foreign exchange contracts not designated as a hedging instrument | ||
Total foreign exchange contracts | (2,793) | 654 |
Revenues [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | (520,817) | |
Foreign exchange contracts designated as a hedging instrument | 235 | |
Foreign exchange contracts not designated as a hedging instrument | ||
Total foreign exchange contracts | 521,052 | |
Cost of revenues [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 301,423 | 322,388 |
Foreign exchange contracts designated as a hedging instrument | (198) | (24) |
Foreign exchange contracts not designated as a hedging instrument | ||
Total foreign exchange contracts | 301,225 | 322,364 |
Research and development, net [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 84,012 | 94,253 |
Foreign exchange contracts designated as a hedging instrument | (279) | (382) |
Foreign exchange contracts not designated as a hedging instrument | ||
Total foreign exchange contracts | 83,733 | 93,871 |
Selling, general and administrative [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 205,224 | 231,138 |
Foreign exchange contracts designated as a hedging instrument | (397) | (525) |
Foreign exchange contracts not designated as a hedging instrument | ||
Total foreign exchange contracts | 204,827 | 230,613 |
Financial expenses (income), net [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 575 | (4,555) |
Foreign exchange contracts designated as a hedging instrument | ||
Foreign exchange contracts not designated as a hedging instrument | 6,194 | (2,868) |
Total foreign exchange contracts | $ 6,769 | $ (7,423) |
Entity-Wide Disclosure (Details
Entity-Wide Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity-Wide Disclosure (Details) [Line Items] | ||
Total net sales, percentage | 10.00% | |
Property, plant and equipment, net | $ 201,232 | $ 189,706 |
Israel [Member] | ||
Entity-Wide Disclosure (Details) [Line Items] | ||
Property, plant and equipment, net | $ 126,900 | $ 110,900 |
Entity-Wide Disclosure (Detai_2
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | $ 520,817 | $ 636,080 | $ 663,237 | |
Americas (primarily the United States) [Member] | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | 343,477 | 415,862 | 409,741 |
EMEA [Member[ | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | 101,584 | 124,967 | 147,162 |
Asia Pacific [Member] | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | $ 75,756 | $ 95,251 | $ 106,334 |
[1] | Revenues are attributed to geographic areas based on the location of customer. |
Entity-Wide Disclosure (Detai_3
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | $ 201,232 | $ 189,706 |
Americas (primarily the United States) [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | 53,830 | 58,169 |
EMEA [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | 143,907 | 127,234 |
Asia Pacific [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | $ 3,495 | $ 4,303 |
Loss per Share (Details)
Loss per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares, excluded from computation of diluted net loss per share | 4.9 | 4.3 | 4 |
Loss per Share (Details) - Sche
Loss per Share (Details) - Schedule of calculation of basic and diluted net loss per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net loss attributable to Stratasys Ltd. | $ (443,721) | $ (10,849) | $ (10,964) |
Adjustment of redeemable non-controlling interest to redemption amount | (935) | ||
Net loss attributable to Stratasys Ltd. for basic loss per share | $ (443,721) | $ (10,849) | $ (11,899) |
Denominator: | |||
Weighted average shares – denominator for basic net loss per share (in Shares) | 54,918 | 54,260 | 53,751 |
Basic (in Dollars per share) | $ (8.08) | $ (0.20) | $ (0.22) |
Diluted (in Dollars per share) | $ (8.08) | $ (0.20) | $ (0.22) |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating lease cost - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of operating lease cost [Abstract] | ||
Fixed payments and variable payments that depend on an index or rate | $ 10,102 | $ 8,564 |
Total operating lease cost | $ 10,102 | $ 8,564 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of other information related to operating leases - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of other information related to operating leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 10,559 | $ 9,685 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 10,008 | $ 7,246 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of weighted-average operating leases | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of weighted-average operating leases [Abstract] | ||
Weighted-average remaining lease term — operating leases | 3 years | 3 years 2 months 4 days |
Weighted-average discount rate — operating leases | 4.78% | 4.72% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of maturities of operating lease liabilities [Abstract] | |
2021 | $ 9,508 |
2022 | 6,667 |
2023 | 4,616 |
2024 | 2,120 |
2025 | 449 |
2026 and thereafter | 48 |
Total operating lease payments | 23,408 |
Less: imputed interest | (1,559) |
Present value of lease liabilities | $ 21,849 |