Stratasys (SSYS) 6-K 4 Aug 16 2016 Q2 Condensed Consolidated Financial Statements Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	STRATASYS LTD.
Entity Central Index Key	1,517,396
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	SSYS
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 253,882	$ 257,592
Short-term bank deposits		571
Accounts receivable, net	113,327	123,215
Inventories	125,686	123,658
Net investment in sales-type leases	12,269	11,704
Prepaid expenses	7,177	8,469
Other current assets	21,465	21,864
Total current assets	533,806	547,073
Non-current assets
Goodwill	386,313	383,853
Other intangible assets, net	222,324	252,468
Property, plant and equipment, net	209,299	201,934
Net investment in sales-type leases - long-term	16,733	17,785
Other non-current assets	31,102	11,243
Total non-current assets	865,771	867,283
Total assets	1,399,577	1,414,356
Current liabilities
Accounts payable	42,866	39,021
Accrued expenses and other current liabilities	31,599	31,314
Accrued compensation and related benefits	38,646	34,052
Income taxes payable	4,616	11,395
Obligations in connection with acquisitions	4,781	4,636
Deferred revenues	51,974	52,309
Total current liabilities	174,482	172,727
Non-current liabilities
Obligations in connection with acquisitions - long-term	4,349	4,354
Deferred tax liabilities	11,910	16,040
Deferred revenues - long-term	10,635	7,627
Other non-current liabilities	36,747	22,428
Total non-current liabilities	63,641	50,449
Total liabilities	238,123	223,176
Contingencies (see note 10)
Redeemable non-controlling interests	2,193	2,379
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 52,218 thousands shares and 52,082 thousands shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	141	141
Additional paid-in capital	2,617,284	2,605,957
Accumulated other comprehensive loss	(10,003)	(10,774)
Accumulated deficit	(1,448,337)	(1,406,706)
Equity attributable to Stratasys Ltd.	1,159,085	1,188,618
Non-controlling interests	176	183
Total equity	1,159,261	1,188,801
Total liabilities and equity	$ 1,399,577	$ 1,414,356

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in NIS per share)	₪ 0.01	₪ 0.01
Common stock, shares authorized	180,000	180,000
Common stock, shares issued	52,218	52,082
Common stock, shares outstanding	52,218	52,082

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net sales
Products	$ 123,758	$ 134,490	$ 242,392	$ 261,157
Services	48,315	47,832	97,587	93,896
Total net sales	172,073	182,322	339,979	355,053
Cost of sales
Products	61,413	67,666	118,351	166,037
Services	31,128	31,748	60,927	60,020
Total cost of sales	92,541	99,414	179,278	226,057
Gross profit	79,532	82,908	160,701	128,996
Operating expenses
Research and development, net	24,366	25,506	49,481	52,744
Selling, general and administrative	72,884	97,581	149,271	200,189
Goodwill impairment				150,400
Change in fair value of obligations in connection with acquisitions	(587)	(6,680)	140	(19,936)
Total operating expenses	96,663	116,407	198,892	383,397
Operating loss	(17,131)	(33,499)	(38,191)	(254,401)
Financial income (expense), net	932	(711)	1,112	(5,835)
Loss before income taxes	(16,199)	(34,210)	(37,079)	(260,236)
Income tax expenses (benefit)	2,454	(11,066)	4,745	(20,688)
Net loss	(18,653)	(23,144)	(41,824)	(239,548)
Net loss attributable to non-controlling interest	(163)	(213)	(193)	(329)
Net loss attributable to Stratasys Ltd.	$ (18,490)	$ (22,931)	$ (41,631)	$ (239,219)
Net loss per ordinary share attributable to Stratasys Ltd.
Basic	$ (0.35)	$ (0.48)	$ (0.80)	$ (4.71)
Diluted	$ (0.36)	$ (0.55)	$ (0.80)	$ (4.77)
Weighted average ordinary shares outstanding
Basic	52,169	51,405	52,133	51,181
Diluted	52,496	51,870	52,133	51,413
Comprehensive loss
Net loss	$ (18,653)	$ (23,144)	$ (41,824)	$ (239,548)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,962)	988	380	(5,420)
Unrealized gains on derivatives designated as cash flow hedges	(539)	1,258	391	1,638
Other comprehensive income (loss), net of tax	(3,501)	2,246	771	(3,782)
Comprehensive loss	(22,154)	(20,898)	(41,053)	(243,330)
Less: comprehensive loss attributable to non-controlling interests	(163)	(213)	(193)	(329)
Comprehensive loss attributable to Stratasys Ltd.	$ (21,991)	$ (20,685)	$ (40,860)	$ (243,001)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (41,824)	$ (239,548)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Goodwill impairment		150,400
Impairment of other intangible assets	1,779	43,205
Depreciation and amortization	46,792	55,780
Stock-based compensation	11,102	19,324
Foreign currency translation loss	(3,427)	6,005
Deferred income taxes	(3,327)	(25,196)
Change in fair value of obligations in connection with acquisitions	140	(19,936)
Other non-cash items	636	51
Change in cash attributable to changes in operating assets and liabilities, net of the impact of acquisitions:
Accounts receivable, net	11,294	11,425
Inventories	(3,024)	(18,729)
Net investment in sales-type leases	487	(6,192)
Other current assets and prepaid expenses	880	(3,935)
Other non-current assets	511	(990)
Accounts payable	2,112	2,046
Other current liabilities	(2,295)	7,952
Deferred revenues	2,084	4,770
Other non-current liabilities	14,556	1,824
Net cash provided by (used in) operating activities	38,476	(11,744)
Cash flows from investing activities
Purchase of property and equipment	(21,079)	(44,791)
Proceeds from maturities of short-term bank deposits	68,361	10,874
Investment in short-term bank deposits	(67,077)	(152,079)
Investment in unconsolidated entities	(23,064)
Acquisition of intangible assets	(771)	(1,386)
Cash paid for acquisitions, net of cash acquired		(3,801)
Other investing activities	(142)	(203)
Net cash used in investing activities	(43,772)	(191,386)
Cash flows from financing activities
Proceeds from short-term debt		125,000
Payments of obligations in connection with acquisitions		(11,931)
Proceeds from exercise of stock options	711	2,103
Net cash provided by financing activities	711	115,172
Effect of exchange rate changes on cash and cash equivalents	875	(1,915)
Net change in cash and cash equivalents	(3,710)	(89,873)
Cash and cash equivalents, beginning of period	257,592	442,141
Cash and cash equivalents, end of period	253,882	352,268
Supplemental disclosures of cash flow information:
Transfer of fixed assets to inventory	583	3,596
Transfer of inventory to fixed assets	$ 2,464	$ 3,611

Basis of Presentation and Conso

Basis of Presentation and Consolidation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Consolidation	Note 1. Basis of Presentation and Consolidation Stratasys Ltd. (collectively with its subsidiaries, the “Company”) is a 3D solutions company, offering additive manufacturing (“AM”) solutions for the creation of parts used in the processes of designing and manufacturing products and for the direct manufacture of end parts. The Company’s solutions include products ranging from entry-level desktop 3D printers to systems for rapid prototyping (“RP”) and large production systems for direct digital manufacturing (“DDM”). The Company also develops, manufactures and sells materials for use with its systems and provides related service offerings. The Company also provides a variety of custom manufacturing solutions through its direct manufacturing printed parts service as well as 3D printing related professional services offerings. The condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. The consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. The reader is referred to the audited consolidated financial statements and notes thereto for the year ended December 31, 2015, filed as part of the Company’s Annual Report on Form 20-F for such year. Recently issued accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) which simplifies certain aspects of the accounting for share-based payments, including accounting for income taxes, classification of awards as either equity or liabilities, classification on the statement of cash flows as well as allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued, and all amendments in the ASU that apply must be adopted in the same period. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In March 2016, the FASB issued a new ASU which simplifies the transition to the equity method of accounting. The new guidance eliminates the requirement to retrospectively apply equity method of accounting for an investment that subsequently qualifies for use of the equity method of accounting as a result of an increase in level of ownership interest or degree of influence. Under the new ASU, The investor will add the carrying value of the existing investment to the cost of the additional investment to determine the initial cost basis of the equity method investment. This ASU is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company has early adopted this ASU. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued a new ASU which revise lease accounting guidance. Under the new guidance, most lessees will be required to recognize on the balance sheet a right-of-use asset and corresponding lease liabilities for all leases, other than leases that meet the definition of a short-term lease. The liability and the right-of-use asset arising from the lease will be measured as the present value of the lease payments. The new standard is effective for fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition approach. The Company is currently evaluating the impact of the adoption of the new lease accounting guidance on its consolidated financial statements. In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede the current revenue recognition guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle of the new revenue recognition standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. This standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of the adoption of the new revenue recognition standard on its consolidated financial statements and the method of adoption to be used.

Significant Business Activities

Significant Business Activities	6 Months Ended
	Jun. 30, 2016
Significant Business Activities
Significant Business Activities	Note 2. Significant Business Activities Appointment of New Chief Executive Officer In June 2016, the Company announced the appointment of Ilan Levin as the Company’s Chief Executive Officer, effective July 1, 2016. Mr. Levin, a member of the Company’s board of directors and Executive Committee, succeeded David Reis, who announced his resignation in June 2016. David Reis will remain a member of the Company’s board of directors as an Executive Director. Equity-Method Investment In June 2016, the Company invested additional amount The Company increased its interest third party entity influence over the third party entity This investment is presented as other non-current asset in the Company’s consolidated balance sheets.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Note 3. Inventories Inventories, net consisted of the following : June 30, December 31, 2016 2015 U.S. $ in thousands Finished goods $ 76,058 $ 78,604 Work-in-process 6,701 6,559 Raw materials 42,927 38,495 $ 125,686 $ 123,658

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note 4. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of the Company’s goodwill for the six months ended June 30, 2016, were as follows: (U.S. $ in millions) Goodwill as of January 1, 2016 $ 383.9 Translation differences 2.4 Goodwill as of June 30, 2016 $ 386.3 Interim goodwill assessment for the second quarter of 2016 During the second quarter of 2016, the Company determined that certain indicators of potential impairment that required an interim goodwill impairment analysis for its Stratasys-Objet reporting unit existed as of June 30, 2016. These indicators included a further decrease in the Company’s share price for a sustained period and lower the current trends and The Company estimated the fair value of its Stratasys-Objet reporting unit by using an income approach based on discounted cash flows, which utilized Level 3 measures that represent unobservable inputs into the Company’s valuation method. The assumptions used to estimate the fair value of the reporting unit were based on expected future cash flows and an estimated terminal value using a terminal year growth rate based on the growth prospects for Stratasys-Objet reporting unit. The Company used an applicable discount rate which reflected the associated specific risks for its Stratasys-Objet reporting unit future cash flows. The Company concluded that the fair value of its Stratasys-Objet reporting unit exceeds its carrying amount by more than 10%. The carrying amount of goodwill which is assigned to this reporting unit is $386 million. When evaluating the fair value of Stratasys-Objet reporting unit the Company used a discounted cash flow model. Key assumptions used to determine the estimated fair value include: (a) expected cash flow for 4.5 years A decrease in the growth rate of 1% or an increase of 1% to the discount rate would reduce the fair value of Stratasys-Objet reporting unit by approximately $ 69 Based on the Company’s assessment as of June 30, 2016, no goodwill was determined to be impaired. The Company will continue to monitor its Stratasys-Objet unit Other Intangible Assets Other intangible assets consisted of the following: June 30, 2016 December 31, 2015 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 $ 304,754 $ (178,339 ) $ 126,415 $ 306,657 $ (157,862 ) $ 148,795 Patents 18,606 (10,953 ) 7,653 17,785 (10,008 ) 7,777 Trademarks and trade names 32,506 (15,677 ) 16,829 32,443 (14,463 ) 17,980 Customer relationships 116,087 (48,035 ) 68,052 115,957 (41,708 ) 74,249 Non-compete agreements 5,874 (5,874 ) - 5,874 (5,874 ) - Capitalized software development costs 20,176 (17,809 ) 2,367 20,010 (17,351 ) 2,659 In process research and development 1,008 - 1,008 1,008 - 1,008 $ 499,011 $ (276,687 ) $ 222,324 $ 499,734 $ (247,266 ) $ 252,468 Amortization expense relating to intangible assets for the three-month periods ended June 30, 2016 and 2015 was approximately $14.5 million and $18.5 million, respectively. Amortization expense relating to intangible assets for the six-month periods ended June 30, 2016 and 2015 was approximately $29.2 million and $40.5 million, respectively. As of June 30, 2016, estimated amortization expense relating to intangible assets currently subject to amortization for each of the following periods were as follows: Estimated amortization expense (U.S. $ in thousands) Remainning 6 months of 2016 $ 29,350 2017 58,338 2018 55,602 2019 42,363 2020 15,636 Thereafter 20,027 Total $ 221,316

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2016
Net loss per ordinary share attributable to Stratasys Ltd.
Loss Per Share	Note 5. Loss Per Share The Company complies with ASC 260, Earnings Per Share , which requires dual presentation of basic and diluted income (loss) per ordinary share attributable to Stratasys Ltd. for all periods presented. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders of Stratasys Ltd., including adjustment of redeemable non-controlling interest to its redemption amount, by the weighted average number of shares outstanding for the reporting periods. Diluted net income (loss) per share is computed by dividing the basic net income (loss) per share including adjustment for elimination of the dilutive effect of the Company’s deferred payments liability revaluation to it fair value, by the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options and restricted stock units (“RSUs”) using the treasury stock method and presumed share settlement of the Company’s deferred payments liability. The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and six months ended June 30, 2016 and 2015: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 In thousands, except per share amounts Numerator: Net loss attributable to Stratasys Ltd. $ (18,490 ) $ (22,931 ) $ (41,631 ) $ (239,219 ) Adjustment of redeemable non-controlling interest to redemption - (1,800 ) - (1,800 ) Net loss attributable to Stratasys Ltd. for basic loss per share (18,490 ) (24,731 ) (41,631 ) (241,019 ) Adjustment of deferred payments liability revaluation (559 ) (3,988 ) - (3,988 ) Net loss attributable to Stratasys Ltd. for diluted income (loss) per share (19,049 ) (28,719 ) (41,631 ) (245,007 ) Denominator: Weighted average shares – denominator for basic net loss 52,169 51,405 52,133 51,181 Add: Shares settlement presumed for deferred payments liability 327 465 - 232 Denominator for diluted loss per share 52,496 51,870 52,133 51,413 Net loss per share attributable to Stratasys Ltd. Basic $ (0.35 ) $ (0.48 ) $ (0.80 ) $ (4.71 ) Diluted $ (0.36 ) $ (0.55 ) $ (0.80 ) $ (4.77 ) The computation of diluted net loss per share, excluded share awards of 3.76 million shares and 2.51 million shares for the three months ended June 30, 2016 and 2015, respectively, and 4.08 million shares and 2.71 million shares for the six months ended June 30, 2016 and 2015, because their inclusion would have had an anti-dilutive effect on the diluted net loss per share.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 6. Income Taxes The Company had negative effective tax rate of 15.1% 12.8 varied due 2016. The Company’s effective tax rate for the three and six months ended June 30, 2015 was impacted by goodwill impairment of $150.4 million associated with the Makerbot reporting unit which was non-tax deductible. In addition, the impairment of MakerBot intangible assets resulted in a reversal of related deferred tax liabilities amounting to $17.2 million. As a result, the Company recorded a valuation allowance in a corresponding amount of $17.2 million against deferred tax assets in respect of net operating losses as it was more likely than not that those deferred tax assets will not be realized in the near-term. The Company will continue to monitor whether the realization of its deferred

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7. 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. Observable inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy is categorized into three Levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial instruments measured at fair value The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, in its consolidated balance sheets: June 30, 2016 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 516 $ - $ 516 Foreign exchange forward contracts designated as hedging instruments 284 - 284 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (457 ) - (457 ) Obligations in connection with acquisitions - (7,131 ) (7,131 ) $ 343 $ (7,131 ) $ (6,788 ) December 31, 2015 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 866 $ - $ 866 Foreign exchange forward contracts designated as hedging instruments 23 - 23 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (432 ) - (432 ) Foreign exchange forward contracts designated as hedging instruments (131 ) - (131 ) Obligations in connection with acquisitions - (6,991 ) (6,991 ) $ 326 $ (6,991 ) $ (6,665 ) 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 bank deposits, current and non-current receivables, net investment in sales-type leases, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values. Other fair value disclosures The following table is a reconciliation of the changes for those financial liabilities where fair value measurements are estimated utilizing Level 3 inputs, which consist of obligations in connection with acquisitions: Six months ended Year ended June 30, 2016 December 31, 2015 (U.S. $ in thousands) Fair value at the beginning of the period $ 6,991 $ 35,656 Settlements - (4,994 ) Change in fair value recognized in earnings 140 (23,671 ) Fair value at the end of the period $ 7,131 $ 6,991 The Company’s obligations in connection with acquisitions as of June 30, 2016 are related to the deferred payments for the Company’s acquisition of Solid Concepts Inc. (the “Solid Concepts transaction”). As part of the Solid Concepts transaction, which was completed in July 2014, the Company is obligated to pay additional deferred payments in three separate annual installments after the Solid Concepts transaction date (“deferred payments”). Subject to certain requirements for cash payments, the Company retains the discretion to settle the deferred payments in its shares, cash or any combination of the two. The deferred payments are also subject to certain adjustments based on the Company’s share price. During July 2015, the Company issued 118,789 ordinary shares valued at $4.1 million and paid cash of $0.9 million to settle the first annual installment of the deferred payments. The deferred payments are recognized as liabilities at fair value in the Company’s consolidated balance sheets and are classified as short-term and long-term obligations in connection with acquisitions. The fair value of the deferred payments was determined based on the closing market price of the Company’s ordinary shares on the Solid Concepts transaction date, adjusted to reflect a discount for lack of marketability for the applicable periods. The discount for lack of marketability was calculated based on the historical volatility of the Company’s share price and thus represents a Level 3 measurement within the fair value hierarchy. As of June 30, 2016, the fair value of the remaining deferred payments was $7.1 million. As of June 30, 2016, the total amount of the remaining deferred payments, which does not reflect a discount for lack of marketability, was approximately $7.9 million, based on the Company’s share price as of that date. The fair value of the deferred payments is primarily linked to the Company’s share price. An increase of 10% in the Company’s share price as of June 30, 2016 would have increased the fair value of the remaining deferred payments by $0.7 million. In addition, changes in Level 3 inputs that were used in the fair value calculation might change the fair value of the deferred payments. A decrease of 10% in the Company’s share price volatility used in the calculation for discount for lack of marketability as of June 30, 2016 would have increased the fair value of the Company’s deferred payments liability by approximately $0.1 million. With respect to the fair-value revaluations of the deferred payments, the Company recorded gains of $0.6 million and $6.7 million for the three-month periods ended June 30, 2016 and 2015, respectively, and a loss of $0.1 million and a gain of $19.9 million, for the six-month periods ended June 30, 2016 and 2015, respectively. Such fair-value revaluations are presented under change in fair value of obligations in connection with acquisitions in the Company’s consolidated statements of operations and comprehensive loss.

Derivative instruments and hedg

Derivative instruments and hedging activities	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments and hedging activities	Note 8. Derivative instruments and hedging activities: The following table summarizes the condensed consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount June 30, December 31, June 30, December 31, Balance sheet location 2016 2015 2016 2015 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 516 $ 866 $ 36,747 $ 54,586 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 284 23 15,574 2,700 Liability derivatives -Foreign exchange contracts, not Accrued expenses and designated as hedging instruments other current liabilities (457 ) (432 ) 25,133 35,036 Liability derivatives -Foreign exchange contracts, Accrued expenses and designated as hedging instruments other current liabilities - (131 ) - 13,682 $ 343 $ 326 $ 77,454 $ 106,004 The Company enters into foreign exchange forward contracts to hedge its foreign currency exposure resulting from revenue and expense in major foreign currencies in which it operates and to reduce the foreign currency fluctuations on certain of its balance sheet items. As of June 30, 2016, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $41.2 million, $10.0 million and $10.4 million, and are used to reduce foreign currency exposures of the Euro, New Israeli Shekel (the “NIS”) and Japanese Yen, respectively. With respect to such derivatives, gain of $0.5 million and loss of $0.6 million were recognized under financial income (expense), net for the three-month periods ended June 30, 2016 and 2015, respectively, and loss of $2.4 million and gain of $3.6 million were recognized under financial income (expense), net for the six-month periods ended June 30, 2016 and 2015, respectively. Such losses and gains partially offset the revaluation changes of foreign currencies the balance sheet items, which are also recognized under financial income (expense), net. As of June 30, 2016, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of $15.6 million into NIS. 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 NIS. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. These contracts mature through December 2016.

Equity

Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Equity	Note 9. Equity a. Stock-based compensation plans Stock-based compensation expenses for equity classified stock options and RSUs were allocated as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 U.S $ in thousands Cost of sales $ 729 $ 1,797 $ 1,451 $ 3,630 Research and development, net 1,357 1,506 2,716 3,374 Selling, general and administrative 3,393 6,261 6,935 12,320 Total stock-based compensation expenses $ 5,479 $ 9,564 $ 11,102 $ 19,324 A summary of the Company’s stock option activity for the six months ended June 30, 2016 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2016 2,449,742 $ 39.73 Granted 559,340 23.03 Exercised (93,591 ) 7.60 Forfeited (116,502 ) 45.57 Options outstanding as of June 30, 2016 2,798,989 $ 37.19 Options exercisable as of June 30, 2016 1,230,844 $ 37.46 The outstanding options generally have a term of ten years from the grant date. Options granted become exercisable over the vesting period, which is normally a four-year period beginning on the grant date, subject to the employee’s continuing service to the Company. The fair value of stock options is determined using the Black-Scholes model. The weighted-average grant date fair value of options that were granted during the six-month period ended June 30, 2016 was $12.36 per option. During the six-month periods ended June 30, 2016 and 2015, the Company issued 93,591 shares and 107,914 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $0.7 million and $2.1 million for the six-month periods ended June 30, 2016 and 2015, respectively. As of June 30, 2016, the unrecognized compensation cost related to all unvested, equity-classified stock options of $23.6 million is expected to be recognized as an expense over a weighted-average period of 3.0 years. A summary of the Company’s RSUs activity for the six months ended June 30, 2016 is as follows: Weighted Average Number of RSUs Grant Date Fair Value Unvested RSUs outstanding as of January 1, 2016 559,124 $ 81.35 Forfeited (70,942 ) 78.77 Vested (43,557 ) 94.73 Unvested RSUs outstanding as of June 30, 2016 444,625 $ 80.45 The fair value of RSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant. There were no new RSUs grants during the six months ended June 30, 2016. As of June 30, 2016, the unrecognized compensation cost related to all unvested, equity-classified RSUs of $18.5 million is expected to be recognized as expense on a straight-line basis over a weighted-average period of 2.2 years. b. Accumulated other comprehensive income (loss) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of taxes for the six months ended June 30, 2016 and 2015: Six months ended June 30, 2016 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2016 $ (107 ) $ (10,667 ) $ (10,774 ) Other comprehensive income before reclassifications 542 380 922 Amounts reclassified from accumulated other comprehensive income (151 ) - (151 ) Other comprehensive income 391 380 771 Balance as of June 30, 2016 $ 284 $ (10,287 ) $ (10,003 ) Six months ended June 30, 2015 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2015 $ (1,243 ) $ (2,404 ) $ (3,647 ) Other comprehensive loss before reclassifications 327 (5,420 ) (5,093 ) Amounts reclassified from accumulated other comprehensive income 1,311 - 1,311 Other comprehensive income (loss) 1,638 (5,420 ) (3,782 ) Balance as of June 30, 2015 $ 395 $ (7,824 ) $ (7,429 )

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 10. Contingencies Claims Related to Company Equity On March 4, 2013, five current or former minority shareholders (two of whom were former directors) of the Company filed two lawsuits against the Company in an Israeli central district court. The lawsuits demand that the Company amend its capitalization table such that certain share issuances prior to the Stratasys-Objet merger to certain of Objet’s shareholders named as defendants would be cancelled, with a consequent issuance of additional shares to the plaintiffs to account for the subsequent dilution to which they have been subject. The lawsuits also name as defendants Elchanan Jaglom, Chairman of the Company’s board of directors, in one of the lawsuits, Ilan Levin, the Company’s Chief Executive Officer and director, various shareholders of the Company who were also shareholders of Objet, and David Reis, a director. The lawsuits allege in particular that a series of investments in Objet during 2002 and 2007 was effected at a price per share that was below fair market value, thereby illegally diluting those shareholders that did not participate in the investments. The plaintiffs also allege that a portion of the amount invested in those transactions was actually invested by an investor who was already a shareholder of Objet and allegedly acting in concert with Mr. Jaglom, and that the interest of these two shareholders in these transactions was not properly disclosed to the minority shareholders at the time. The lawsuits furthermore claim that the Company effectively engaged in backdating the issuance of certain shares, in that shares that Objet reported as having been issued in 2006 and 2007 were actually issued at a subsequent date—as late as 2009. The Company filed its statements of defense in May 2013 denying the plaintiffs’ claims. The court has dismissed the lawsuit of one of the former directors due to lack of cause. The suits are currently at the stage of pre-trial hearings. Securities Law Class Actions On February 5, 2015, a lawsuit styled as a class action was commenced in the United States District Court for the District of Minnesota, naming the Company and certain of the Company’s officers as defendants. Similar actions were filed on February 9 and 20, 2015 in the Southern District of New York and the Eastern District of New York, respectively. The lawsuits allege violations of the Securities Exchange Act of 1934 in connection with allegedly false and misleading statements concerning the Company’s business and prospects. The plaintiffs seek damages and awards of reasonable costs and expenses, including attorneys’ fees. On April 15, 2015, the cases were consolidated for all purposes, and on April 24, 2015, the Court entered an order appointing lead plaintiffs and approving their selection of lead counsel for the putative class. On July 1, 2015, lead plaintiffs filed their consolidated complaint. On August 31, 2015, the defendants moved to dismiss the consolidated complaint for failure to state a claim. The Court heard the motion on December 11, 2015. On June 30, 2016, the Court granted defendants’ motion to dismiss with prejudice and entered judgment in favor of defendants. On July 29, 2016, lead plaintiffs filed a notice of appeal to the United States Court of Appeals for the Eighth Circuit from the Court’s judgment. The Company is a party to various other legal proceedings, the outcome of which, in the opinion of management, will not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories, net consisted of the following : June 30, December 31, 2016 2015 U.S. $ in thousands Finished goods $ 76,058 $ 78,604 Work-in-process 6,701 6,559 Raw materials 42,927 38,495 $ 125,686 $ 123,658

Goodwill and Other Intangible17

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill	Changes in the carrying amount of the Company’s goodwill for the six months ended June 30, 2016, were as follows: (U.S. $ in millions) Goodwill as of January 1, 2016 $ 383.9 Translation differences 2.4 Goodwill as of June 30, 2016 $ 386.3
Schedule of Other Intangible Assets	Other intangible assets consisted of the following: June 30, 2016 December 31, 2015 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 $ 304,754 $ (178,339 ) $ 126,415 $ 306,657 $ (157,862 ) $ 148,795 Patents 18,606 (10,953 ) 7,653 17,785 (10,008 ) 7,777 Trademarks and trade names 32,506 (15,677 ) 16,829 32,443 (14,463 ) 17,980 Customer relationships 116,087 (48,035 ) 68,052 115,957 (41,708 ) 74,249 Non-compete agreements 5,874 (5,874 ) - 5,874 (5,874 ) - Capitalized software development costs 20,176 (17,809 ) 2,367 20,010 (17,351 ) 2,659 In process research and development 1,008 - 1,008 1,008 - 1,008 $ 499,011 $ (276,687 ) $ 222,324 $ 499,734 $ (247,266 ) $ 252,468
Schedule of Estimated Amortization Expense Relating to Intangible Assets	As of June 30, 2016, estimated amortization expense relating to intangible assets currently subject to amortization for each of the following periods were as follows: Estimated amortization expense (U.S. $ in thousands) Remainning 6 months of 2016 $ 29,350 2017 58,338 2018 55,602 2019 42,363 2020 15,636 Thereafter 20,027 Total $ 221,316

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net loss per ordinary share attributable to Stratasys Ltd.
Schedule of Computations of Numerator and Denominator of Basic and Diluted Income (Loss) Per Share	The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and six months ended June 30, 2016 and 2015: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 In thousands, except per share amounts Numerator: Net loss attributable to Stratasys Ltd. $ (18,490 ) $ (22,931 ) $ (41,631 ) $ (239,219 ) Adjustment of redeemable non-controlling interest to redemption - (1,800 ) - (1,800 ) Net loss attributable to Stratasys Ltd. for basic loss per share (18,490 ) (24,731 ) (41,631 ) (241,019 ) Adjustment of deferred payments liability revaluation (559 ) (3,988 ) - (3,988 ) Net loss attributable to Stratasys Ltd. for diluted income (loss) per share (19,049 ) (28,719 ) (41,631 ) (245,007 ) Denominator: Weighted average shares – denominator for basic net loss 52,169 51,405 52,133 51,181 Add: Shares settlement presumed for deferred payments liability 327 465 - 232 Denominator for diluted loss per share 52,496 51,870 52,133 51,413 Net loss per share attributable to Stratasys Ltd. Basic $ (0.35 ) $ (0.48 ) $ (0.80 ) $ (4.71 ) Diluted $ (0.36 ) $ (0.55 ) $ (0.80 ) $ (4.77 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Carried at Fair Value on a Recurring Basis	The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, in its consolidated balance sheets: June 30, 2016 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 516 $ - $ 516 Foreign exchange forward contracts designated as hedging instruments 284 - 284 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (457 ) - (457 ) Obligations in connection with acquisitions - (7,131 ) (7,131 ) $ 343 $ (7,131 ) $ (6,788 ) December 31, 2015 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 866 $ - $ 866 Foreign exchange forward contracts designated as hedging instruments 23 - 23 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (432 ) - (432 ) Foreign exchange forward contracts designated as hedging instruments (131 ) - (131 ) Obligations in connection with acquisitions - (6,991 ) (6,991 ) $ 326 $ (6,991 ) $ (6,665 )
Schedule of Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs	The following table is a reconciliation of the changes for those financial liabilities where fair value measurements are estimated utilizing Level 3 inputs, which consist of obligations in connection with acquisitions: Six months ended Year ended June 30, 2016 December 31, 2015 (U.S. $ in thousands) Fair value at the beginning of the period $ 6,991 $ 35,656 Settlements - (4,994 ) Change in fair value recognized in earnings 140 (23,671 ) Fair value at the end of the period $ 7,131 $ 6,991

Derivative instruments and he20

Derivative instruments and hedging activities (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of balance sheet classification and fair values of derivative instruments	The following table summarizes the condensed consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount June 30, December 31, June 30, December 31, Balance sheet location 2016 2015 2016 2015 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 516 $ 866 $ 36,747 $ 54,586 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 284 23 15,574 2,700 Liability derivatives -Foreign exchange contracts, not Accrued expenses and designated as hedging instruments other current liabilities (457 ) (432 ) 25,133 35,036 Liability derivatives -Foreign exchange contracts, Accrued expenses and designated as hedging instruments other current liabilities - (131 ) - 13,682 $ 343 $ 326 $ 77,454 $ 106,004

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Share-based Compensation Expense	Stock-based compensation expenses for equity classified stock options and RSUs were allocated as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 U.S $ in thousands Cost of sales $ 729 $ 1,797 $ 1,451 $ 3,630 Research and development, net 1,357 1,506 2,716 3,374 Selling, general and administrative 3,393 6,261 6,935 12,320 Total stock-based compensation expenses $ 5,479 $ 9,564 $ 11,102 $ 19,324
Summary of Stock Options Activity	A summary of the Company’s stock option activity for the six months ended June 30, 2016 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2016 2,449,742 $ 39.73 Granted 559,340 23.03 Exercised (93,591 ) 7.60 Forfeited (116,502 ) 45.57 Options outstanding as of June 30, 2016 2,798,989 $ 37.19 Options exercisable as of June 30, 2016 1,230,844 $ 37.46
Summary of RSUs activity	A summary of the Company’s RSUs activity for the six months ended June 30, 2016 is as follows: Weighted Average Number of RSUs Grant Date Fair Value Unvested RSUs outstanding as of January 1, 2016 559,124 $ 81.35 Forfeited (70,942 ) 78.77 Vested (43,557 ) 94.73 Unvested RSUs outstanding as of June 30, 2016 444,625 $ 80.45
Schedule of Accumulated other comprehensive income (loss)	The following table presents the changes in the components of accumulated other comprehensive income (loss), net of taxes for the six months ended June 30, 2016 and 2015: Six months ended June 30, 2016 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2016 $ (107 ) $ (10,667 ) $ (10,774 ) Other comprehensive income before reclassifications 542 380 922 Amounts reclassified from accumulated other comprehensive income (151 ) - (151 ) Other comprehensive income 391 380 771 Balance as of June 30, 2016 $ 284 $ (10,287 ) $ (10,003 ) Six months ended June 30, 2015 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2015 $ (1,243 ) $ (2,404 ) $ (3,647 ) Other comprehensive loss before reclassifications 327 (5,420 ) (5,093 ) Amounts reclassified from accumulated other comprehensive income 1,311 - 1,311 Other comprehensive income (loss) 1,638 (5,420 ) (3,782 ) Balance as of June 30, 2015 $ 395 $ (7,824 ) $ (7,429 )

Significant Business Activiti22

Significant Business Activities (Details)	Jun. 30, 2016
Significant Business Activities
Equity method investment, ownership percentage	40.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 76,058	$ 78,604
Work-in-process	6,701	6,559
Raw materials	42,927	38,495
Total Inventory	$ 125,686	$ 123,658

Goodwill and Other Intangible24

Goodwill and Other Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill as of January 1, 2016	$ 383,853
Translation differences	2,400
Goodwill as of June 30, 2016	$ 386,313

Goodwill and Other Intangible25

Goodwill and Other Intangible Assets (Interim Goodwill Assessment for Second Quarter 2016) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Change in fair value due to 1% decrease in terminal year growth rate	$ 69
Change in fair value due to 1% increase in discount rate	$ 105
Expected cash flow period	4 years 6 months
Growth rate (as a percent)	3.30%
Discount rate (as a percent)	13.00%

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Carrying Amount, Net of Impairment	$ 499,011	$ 499,734
Accumulated Amortization	(276,687)	(247,266)
Net Book Value	222,324	252,468
Developed technology [Member]
Carrying Amount, Net of Impairment	304,754	306,657
Accumulated Amortization	(178,339)	(157,862)
Net Book Value	126,415	148,795
Patents [Member]
Carrying Amount, Net of Impairment	18,606	17,785
Accumulated Amortization	(10,953)	(10,008)
Net Book Value	7,653	7,777
Trademarks and trade names [Member]
Carrying Amount, Net of Impairment	32,506	32,443
Accumulated Amortization	(15,677)	(14,463)
Net Book Value	16,829	17,980
Customer relationships [Member]
Carrying Amount, Net of Impairment	116,087	115,957
Accumulated Amortization	(48,035)	(41,708)
Net Book Value	68,052	74,249
Non-compete agreements [Member]
Carrying Amount, Net of Impairment	5,874	5,874
Accumulated Amortization	(5,874)	(5,874)
Net Book Value
Capitalized software development costs [Member]
Carrying Amount, Net of Impairment	20,176	20,010
Accumulated Amortization	(17,809)	(17,351)
Net Book Value	2,367	2,659
In process research and development [Member]
Carrying Amount, Net of Impairment	1,008	1,008
Accumulated Amortization
Net Book Value	$ 1,008	$ 1,008

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense Relating to Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining six months of 2016	$ 29,350		$ 29,350
2,017	58,338		58,338
2,018	55,602		55,602
2,019	42,363		42,363
2,020	15,636		15,636
Thereafter	20,027		20,027
Net Book Value	221,316		221,316
Amortization of intangible assets	$ 14,500	$ 18,500	$ 29,200	$ 40,500

Loss Per Share (Narrative) (Det

Loss Per Share (Narrative) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net loss per ordinary share attributable to Stratasys Ltd.
Antidilutive securities excluded from computation of net loss per share	3,760	2,510	4,080	2,710

Loss Per Share (Schedule of Com

Loss Per Share (Schedule of Computations of Numerator and Denominator of Basic and Diluted Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net loss attributable to Stratasys Ltd.	$ (18,490)	$ (22,931)	$ (41,631)	$ (239,219)
Adjustment of redeemable non-controlling interest to redemption amount		(1,800)		(1,800)
Net loss attributable to Stratasys Ltd. for basic loss per share	(18,490)	(24,731)	(41,631)	(241,019)
Adjustment of deferred payments liability revaluation	(559)	(3,988)		(3,988)
Net loss attributable to Stratasys Ltd. for diluted income (loss) per share	$ (19,049)	$ (28,719)	$ (41,631)	$ (245,007)
Denominator:
Weighted average shares - denominator for basic net loss per share	52,169	51,405	52,133	51,181
Add:
Shares settlement presumed for deferred payments liability	327	465		232
Denominator for diluted loss per share	52,496	51,870	52,133	51,413
Net loss per share attributable to Stratasys Ltd.
Basic	$ (0.35)	$ (0.48)	$ (0.80)	$ (4.71)
Diluted	$ (0.36)	$ (0.55)	$ (0.80)	$ (4.77)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Valuation Allowance [Line Items]
Effective Income Tax Rate, Continuing Operations	(15.10%)	32.30%	(12.80%)	7.90%
Goodwill impairment				$ 150,400
MakerBot [Member]
Valuation Allowance [Line Items]
Goodwill impairment		$ 150,400		150,400
Valuation allowance recorded against deferred tax assets		17,200		17,200
Reversal of deferred tax liabilities		$ 17,200		$ 17,200

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of obligations in connection with acquisitions		$ (587)	$ (6,680)	$ 140	$ (19,936)
Solid Concepts, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Remaining obligations in connection with acquisitions		$ 7,900		7,900
Increase to fair value of deferred payments if Company's share price increased by 10%				700
Increase to fair value of deferred payments if there was a 10% change in share price volatility used in calculation of discount				$ 100
Solid Concepts, Inc. [Member] | Ordinary Shares [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ordinary shares issued as consideration for business acquisition	118,789
Value of ordinary shares issued as consideration for business acquisition	$ 4,100
Cash given as consideration for business acquisition	$ 900

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair value, asset (liability)	$ (6,788)	$ (6,665)
Fair Value, Inputs, Level 2 [Member]
Fair value, asset (liability)	343	326
Fair Value, Inputs, Level 3 [Member]
Fair value, asset (liability)	(7,131)	(6,991)
Foreign Exchange Future [Member] | Not Designated as Hedging Instrument [Member]
Derivative assets	516	866
Derivative liabilities	(457)	(432)
Foreign Exchange Future [Member] | Designated as Hedging Instrument [Member]
Derivative assets	284	23
Derivative liabilities		(131)
Foreign Exchange Future [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member]
Derivative assets	516	866
Derivative liabilities	(457)	(432)
Foreign Exchange Future [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member]
Derivative assets	284	23
Derivative liabilities		(131)
Foreign Exchange Future [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member]
Derivative assets
Derivative liabilities
Foreign Exchange Future [Member] | Fair Value, Inputs, Level 3 [Member] | Designated as Hedging Instrument [Member]
Derivative assets
Derivative liabilities
Obligations in connection with acquisitions [Member]
Derivative liabilities	(7,131)	(6,991)
Obligations in connection with acquisitions [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative liabilities
Obligations in connection with acquisitions [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative liabilities	$ (7,131)	$ (6,991)

Fair Value Measurements (Sche33

Fair Value Measurements (Schedule of Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs) (Details)) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs [Roll Forward]
Fair value at the beginning of the period	$ 6,991	$ 35,656
Settlements		(4,994)
Change in fair value recognized in earnings	140	(23,671)
Fair value at the end of the period	$ 7,131	$ 6,991

Derivative instruments and he34

Derivative instruments and hedging activities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Gain (loss) on derivative instrument	$ 500	$ (600)	$ (2,400)	$ 3,600
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	36,747		36,747		$ 54,586
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Conversion To Euro [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	41,200		41,200
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Conversion To NIS [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	10,000		10,000
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Conversion To Yen [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	10,400		10,400
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	15,574		15,574		$ 2,700
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Conversion To NIS [Member]
Derivatives, Fair Value [Line Items]
Assets derivatives - Notional amount	$ 15,600		$ 15,600

Derivative instruments and he35

Derivative instruments and hedging activities (Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Fair value	$ 343	$ 326
Notional amount	77,454	106,004
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative asset	516	866
Notional amount of derivative asset	36,747	54,586
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative asset	284	23
Notional amount of derivative asset	15,574	2,700
Accrued expenses and other current liabilities [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative liability	(457)	(432)
Notional amount of derivative liability	25,133	35,036
Accrued expenses and other current liabilities [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative liability		(131)
Notional amount of derivative liability		$ 13,682

Equity (Narrative) (Details)

Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Options granted
Weighted average fair value of options granted	$ 12.36
Number of options exercised	93,591	107,914
Increase in equity	$ 0.7	$ 2.1
Stock option term	10 years
Vesting period	4 years
Unrecognized compensation cost	$ 23.6
Weighted average period for recognition	3 years
Restricted Stock Units (RSUs) [Member]
Options granted	0
Unrecognized compensation cost	$ 18.5
Weighted average period for recognition	2 years 2 months 12 days

Equity (Schedule of Stock-based

Equity (Schedule of Stock-based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	$ 5,479	$ 9,564	$ 11,102	$ 19,324
Cost of sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	729	1,797	1,451	3,630
Research and development, net [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	1,357	1,506	2,716	3,374
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	$ 3,393	$ 6,261	$ 6,935	$ 12,320

Equity (Schedule of Stock Optio

Equity (Schedule of Stock Option Activity) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Number of Options:
Balance, beginning	2,449,742
Granted	559,340
Exercised	(93,591)	(107,914)
Forfeited	(116,502)
Balance, ending	2,798,989
Exercisable	1,230,844
Weighted Average Exercise Price:
Balance, beginning	$ 39.73
Granted	23.03
Exercised	7.60
Forfeited	45.57
Balance, ending	37.19
Exercisable	$ 37.46

Equity (Summary of RSUs activit

Equity (Summary of RSUs activity) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Number of RSUs
RSUs outstanding as of January 1, 2016 | shares	559,124
Forfeited | shares	(70,942)
Vested | shares	(43,557)
RSUs outstanding as of June 30, 2016 | shares	444,625
Weighted Average Grant Date Fair Value
RSUs outstanding as of January 1, 2016 | $ / shares	$ 81.35
Forfeited | $ / shares	78.77
Vested | $ / shares	94.73
RSUs outstanding as of June 30, 2016 | $ / shares	$ 80.45

Equity (Schedule of Accumulated

Equity (Schedule of Accumulated other comprehensive income (loss)) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	$ (10,774)	$ (3,647)
Other comprehensive income (loss) before reclassifications	922	(5,093)
Amounts reclassified from accumulated other comprehensive income	(151)	1,311
Other comprehensive income (loss)	771	(3,782)
Balance as of end of period	(10,003)	(7,429)
Net unrealized gain (loss) on cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	(107)	(1,243)
Other comprehensive income (loss) before reclassifications	542	327
Amounts reclassified from accumulated other comprehensive income	(151)	1,311
Other comprehensive income (loss)	391	1,638
Balance as of end of period	284	395
Foreign currency translation adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	(10,667)	(2,404)
Other comprehensive income (loss) before reclassifications	380	(5,420)
Amounts reclassified from accumulated other comprehensive income
Other comprehensive income (loss)	380	(5,420)
Balance as of end of period	$ (10,287)	$ (7,824)