Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
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 | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Entity Well-Known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 53,630,699 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 328,761 | $ 280,328 |
Accounts receivable, net | 132,671 | 120,411 |
Inventories | 115,717 | 117,521 |
Net investment in sales-type leases | 7,208 | 11,717 |
Prepaid expenses | 7,696 | 7,571 |
Other current assets | 22,858 | 15,491 |
Total current assets | 614,911 | 553,039 |
Non-current assets | ||
Net investment in sales-type leases - long-term | 4,439 | 12,126 |
Property, plant and equipment, net | 199,951 | 208,415 |
Goodwill | 387,108 | 385,629 |
Other intangible assets, net | 142,122 | 177,458 |
Other non-current assets | 31,219 | 29,382 |
Total non-current assets | 764,839 | 813,010 |
Total assets | 1,379,750 | 1,366,049 |
Current liabilities | ||
Accounts payable | 39,849 | 40,933 |
Current portion of long-term debt | 5,143 | 3,714 |
Accrued expenses and other current liabilities | 30,041 | 32,207 |
Accrued compensation and related benefits | 35,356 | 34,186 |
Obligations in connection with acquisitions | 3,619 | |
Deferred revenues | 52,908 | 49,952 |
Total current liabilities | 163,297 | 164,611 |
Non-current liabilities | ||
Long-term debt | 27,143 | 22,286 |
Deferred tax liabilities | 7,069 | 5,952 |
Deferred revenues - long-term | 15,200 | 12,922 |
Other non-current liabilities | 32,899 | 22,251 |
Total non-current liabilities | 82,311 | 63,411 |
Total liabilities | 245,608 | 228,022 |
Commitments and contingencies (see note 10) | ||
Redeemable non-controlling interests | 1,635 | 2,029 |
Equity | ||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 53,631 thousands shares and 52,639 thousands shares issued and outstanding at December 31, 2017 and 2016, respectively | 145 | 142 |
Additional paid-in capital | 2,663,274 | 2,633,129 |
Accumulated other comprehensive loss | (7,023) | (13,479) |
Accumulated deficit | (1,523,906) | (1,483,925) |
Equity attributable to Stratasys Ltd. | 1,132,490 | 1,135,867 |
Non-controlling interests | 17 | 131 |
Total equity | 1,132,507 | 1,135,998 |
Total liabilities and equity | $ 1,379,750 | $ 1,366,049 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 53,631 | 52,639 |
Common stock, shares outstanding | 53,631 | 52,639 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | |||
Products | $ 474,286 | $ 479,031 | $ 503,946 |
Services | 194,076 | 193,427 | 192,049 |
Total net sales | 668,362 | 672,458 | 695,995 |
Cost of sales | |||
Products | 219,020 | 234,653 | 466,221 |
Services | 126,565 | 120,499 | 127,602 |
Total cost of sales | 345,585 | 355,152 | 593,823 |
Gross profit | 322,777 | 317,306 | 102,172 |
Operating expenses | |||
Research and development, net | 96,237 | 97,778 | 122,360 |
Selling, general and administrative | 255,685 | 307,113 | 434,619 |
Goodwill impairment | 942,408 | ||
Change in fair value of obligations in connection with acquisitions | 1,378 | (872) | (23,671) |
Total operating expenses | 353,300 | 404,019 | 1,475,716 |
Operating loss | (30,523) | (86,713) | (1,373,544) |
Financial income (expense), net | 1,047 | 354 | (10,287) |
Loss before income taxes | (29,476) | (86,359) | (1,383,831) |
Income taxes expense (benefit) | 9,273 | (9,446) | (10,320) |
Share in losses of associated companies | (1,710) | (708) | |
Net loss | (40,459) | (77,621) | (1,373,511) |
Net loss attributable to non-controlling interests | (478) | (402) | (676) |
Net loss attributable to Stratasys Ltd. | $ (39,981) | $ (77,219) | $ (1,372,835) |
Net loss per ordinary share attributable to Stratasys Ltd. | |||
Basic | $ (0.75) | $ (1.48) | $ (26.64) |
Diluted | $ (0.75) | $ (1.48) | $ (26.64) |
Weighted average ordinary shares outstanding | |||
Basic | 52,959 | 52,330 | 51,592 |
Diluted | 52,959 | 52,582 | 51,592 |
Comprehensive Loss | |||
Net loss | $ (40,459) | $ (77,621) | $ (1,373,511) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 6,102 | (2,788) | (8,263) |
Unrealized gains on derivatives designated as cash flow hedge | 354 | 83 | 1,136 |
Other comprehensive loss, net of tax | 6,456 | (2,705) | (7,127) |
Comprehensive loss | (34,003) | (80,326) | (1,380,638) |
Less: Comprehensive loss attributable to non-controlling interests | (478) | (402) | (676) |
Comprehensive loss attributable to Stratasys Ltd. | $ (33,525) | $ (79,924) | $ (1,379,962) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Ordinary Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings (accumulated deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Equity Attributable to Stratasys Ltd. [Member] | Non-controlling Interest [Member] | Total | |
Beginning Balance at Dec. 31, 2014 | $ 139 | $ 2,568,149 | $ (33,871) | $ (3,647) | $ 2,530,770 | $ 469 | $ 2,531,239 | |
Beginning Balance (in shares) at Dec. 31, 2014 | 50,923 | |||||||
Issuance of shares in connection with stock-based compensation plans | [1] | 2,871 | 2,871 | 2,871 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 260 | |||||||
Stock-based compensation | 30,010 | 30,010 | 30,010 | |||||
Tax deficit from stock-based compensation plans | (1,706) | (1,706) | (1,706) | |||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items | $ 2 | 8,433 | 8,435 | 8,435 | ||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items (in shares) | 899 | |||||||
Adjustment to redemption value of redeemable non-controlling interests | (1,800) | (1,800) | (1,800) | |||||
Comprehensive loss | (1,372,835) | (7,127) | (1,379,962) | (286) | (1,380,248) | |||
Ending Balance at Dec. 31, 2015 | $ 141 | 2,605,957 | (1,406,706) | (10,774) | 1,188,618 | 183 | 1,188,801 | |
Ending Balance (in shares) at Dec. 31, 2015 | 52,082 | |||||||
Issuance of shares in connection with stock-based compensation plans | $ 1 | 1,185 | 1,186 | 1,186 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 301 | |||||||
Stock-based compensation | 20,773 | 20,773 | 20,773 | |||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items | [1] | 5,214 | 5,214 | 5,214 | ||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items (in shares) | 256 | |||||||
Comprehensive loss | (77,219) | (2,705) | (79,924) | (52) | (79,976) | |||
Ending Balance at Dec. 31, 2016 | $ 142 | 2,633,129 | (1,483,925) | (13,479) | 1,135,867 | 131 | 1,135,998 | |
Ending Balance (in shares) at Dec. 31, 2016 | 52,639 | |||||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 6,557 | 6,559 | 6,559 | ||||
Issuance of shares in connection with stock-based compensation plans (in shares) | 743 | |||||||
Stock-based compensation | 17,722 | 17,722 | 17,722 | |||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items | $ 1 | 5,866 | 5,867 | 5,867 | ||||
Issuance of shares for settlements of obligations in connection with acquisitions and other related items (in shares) | 249 | |||||||
Reduction of non-controlling interests upon divestment | (30) | (30) | ||||||
Comprehensive loss | (39,981) | 6,456 | (33,525) | (84) | (33,609) | |||
Ending Balance at Dec. 31, 2017 | $ 145 | $ 2,663,274 | $ (1,523,906) | $ (7,023) | $ 1,132,490 | $ 17 | $ 1,132,507 | |
Ending Balance (in shares) at Dec. 31, 2017 | 53,631 | |||||||
[1] | Represents an amount less than 0.5 thousand |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (40,459) | $ (77,621) | $ (1,373,511) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Goodwill impairment | 942,408 | ||
Impairment of other long-lived assets | 6,759 | 24,924 | 288,977 |
Depreciation and amortization | 66,635 | 92,877 | 108,395 |
Stock-based compensation | 17,722 | 20,773 | 30,010 |
Foreign currency transaction loss | (10,429) | 2,147 | 8,612 |
Deferred income taxes | 2,404 | (10,378) | (19,129) |
Change in fair value of obligations in connection with acquisitions | 1,378 | (872) | (23,671) |
Other non-cash items | 3,520 | 1,220 | 17 |
Change in cash attributable to changes in operating assets and liabilities, net of the impact of acquisitions: | |||
Accounts receivable, net | (7,581) | 2,009 | 25,075 |
Inventories | 2,174 | 642 | (12,408) |
Net investment in sales-type leases | 12,196 | 5,646 | (6,497) |
Other current assets and prepaid expenses | (3,665) | 395 | 11,262 |
Other non-current assets | (802) | 933 | (439) |
Accounts payable | (1,206) | 1,969 | (1,937) |
Other current liabilities | (1,114) | (6,330) | (7,464) |
Deferred revenues | 3,421 | 3,380 | 10,141 |
Other non-current liabilities | 10,954 | 259 | (1,751) |
Net cash provided by (used in) operating activities | 61,907 | 61,973 | (21,910) |
Cash flows from investing activities | |||
Purchase of property and equipment | (22,308) | (45,125) | (84,299) |
Proceeds from maturities of bank deposits and restricted deposits | 73,836 | 191,741 | |
Investment in bank deposits and restricted deposits | (477) | (67,177) | (187,264) |
Cash paid for acquisitions, net of cash acquired | (9,905) | ||
Investment in unconsolidated entities | (3,568) | (23,064) | (250) |
Purchase of intangible assets | (1,540) | (2,002) | (2,747) |
Other investing activities | (361) | (457) | (378) |
Net cash used in investing activities | (28,254) | (63,989) | (93,102) |
Cash flows from financing activities | |||
Proceeds from long-term debt | 10,000 | 26,000 | |
Repayment of long-term debt | (3,714) | ||
Proceeds from short-term debt | 125,000 | ||
Payment of obligations in connection with acquisitions | (1,476) | (1,386) | (19,875) |
Repayment of short-term debt | (175,000) | ||
Proceeds from exercise of stock options | 5,888 | 1,185 | 2,871 |
Net cash provided by (used in) financing activities | 10,698 | 25,799 | (67,004) |
Effect of exchange rate changes on cash and cash equivalents | 4,082 | (1,047) | (2,533) |
Net change in cash and cash equivalents | 48,433 | 22,736 | (184,549) |
Cash and cash equivalents, beginning of year | 280,328 | 257,592 | 442,141 |
Cash and cash equivalents, end of year | 328,761 | 280,328 | 257,592 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes, net of tax refunds | 1,247 | 5,278 | 13,487 |
Cash paid for interest | 1,140 | 1,514 | |
Transfer of inventory to fixed assets | 4,844 | 5,085 | 8,886 |
Transfer of fixed assets to inventory | $ 1,188 | $ 1,068 | $ 3,661 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1. Nature of Operations and Summary of Significant Accounting Policies a. Nature of Operations Stratasys Ltd. (collectively with its subsidiaries, the “Company”) is global provider of applied additive technology solutions for a broad range of industries. The Company focuses on customers’ business requirements and seeks to create new value for its customers across their product lifecycle processes, from design prototypes to manufacturing tools and final production parts. The Company operates a 3D printing ecosystem of solutions and expertise, comprised of: 3D printers ranging from entry-level desktop 3D printers to systems for rapid prototyping (“RP”) and large production systems for direct digital manufacturing (“DDM”) based on precise fused deposition modeling (“FDM”) and PolyJet technologies; advanced materials for the use with its 3D printers; software with voxel level control; application-based services; on-demand parts; and key partnerships. The Company has one operating segment, which generates revenues via the sale of its 3D printing systems, related services and consumables and by providing additive manufacturing ("AM") solutions. The Company operates mainly through offices in Israel, the United States, Germany, Hong Kong and Japan. Entity-wide disclosures on net sales and property, plant and equipment are presented in note 13. 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., its majority-owned subsidiaries and a Variable Interest Entity (“VIE”) in which the Company is considered the primary beneficiary. All intercompany accounts 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 are 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. The effects of foreign currency translation adjustments are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated balance sheets. Related periodic movements are summarized as a line item in the Company’s consolidated statements of comprehensive loss. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income (expense), 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 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, long-lived assets, goodwill, uncertain tax positions and contingent liabilities. 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 categorizes into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Cash and Cash Equivalents All highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, with maturities of ninety days or less when acquired, are considered to be cash equivalents. Accounts Receivable and Net investment in Sales-Type Leases Accounts receivable and net investment in sales-type leases are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company estimates the collectability of its accounts receivable balances and adjusts its allowance for doubtful accounts accordingly. The Company carries its investment in sales-type leases based on discounting the minimum lease payments by the interest rate implicit in the lease and less an allowance for doubtful accounts (see also note 5). On a periodic basis, the Company evaluates its accounts receivable and its investment in sales-type leases and establishes an allowance for doubtful accounts based on past write-offs and collections, current credit conditions and the age of the balances. The Company evaluates a number of factors to assess collectability, including an evaluation of the creditworthiness of the specific customer, past due amounts, payment history, and current economic conditions. Allowance for doubtful accounts due to the Company’s accounts receivable amounted to $1,160 thousand and $843 thousand as of December 31, 2017 and 2016, respectively. Allowance for doubtful accounts due to the Company’s investment in sales-type leases amounted to $1,575 thousand and $844 thousand as of December 31, 2017 and 2016, respectively. Changes in the allowance for doubtful accounts are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for doubtful accounts when management deems the accounts are no longer collectible. Derivative Instruments and Hedge Accounting The Company is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange rates. As part of the Company’s risk management strategy, it uses foreign currency exchange forward contracts to hedge against certain foreign currency 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 each hedging instrument that hedges the exposure to variability in expected future cash flows and that is designated and effective as a cash flow hedge, the effective portion of the unrealized gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss in the Company’s shareholders’ equity and is reclassified into earnings in the same period and in the same line item in which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in financial income (expense), net. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income (expense), net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. The Company provided inventory write-downs for obsolescence and excess inventories in the amounts of $6.3 million and $7.7 million as of December 31, 2017 and 2016, respectively. Property, Plant and Equipment 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. Depreciation is computed primarily over the following periods: Useful Life in Years Machinery and equipment 5 - 10 Buildings 25 - 40 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. 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 at the reporting unit level, or whenever events or circumstances present an indication of impairment. 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 primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Goodwill is tested for impairment on an annual basis in the fourth quarter and whenever indicators of potential impairment requires an interim goodwill impairment analysis. 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 two-step 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 has early adopted a new guidance which simplifies the test for goodwill impairment. Under the new guidance, 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 and no further testing is required. 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, margins realized, level of operating expenses and cost of capital. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the year ended December 31, 2015 the Company recorded impairment charges of $942.4 million in order to reduce the carrying amount of goodwill to its implied fair value. There was no impairment of goodwill in either 2016 or 2017. For further details refer to note 7. Other Intangible Assets Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 10 Trademarks and trade names 9 Customer relationships 7 Capitalized software development costs 5 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of sales. Amortization of trade name and customer relationships is recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. During the years ended December 31, 2017, 2016 and 2015 the Company recorded impairment charges of $2.2 million, $16.9 million and $260.3 million, respectively, related to its definite life intangible assets. Refer to Note 8 for further information. 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. The Company adds the cost of acquiring the additional interest in an unconsolidated equity investment that was not accounted for under the equity method as of the date the equity investment becomes qualified for equity method accounting. Other non-marketable equity securities in which the Company does not have a controlling interest or significant influence are recorded at cost and presented as other non-current assets in the Company’s consolidated balance sheets. The Company reviews its unconsolidated non-marketable equity investments for possible impairment, which generally involves an analysis of the facts and changes in circumstances influencing the investments. There was no impairment of unconsolidated non-marketable equity investments during the years ended December 31, 2017, 2016 and 2015. 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. Revenue Recognition The Company derives revenue from sales of AM systems, consumables, and services. The Company’s AM systems include software and hardware that function together to provide the essential functionality of the tangible system. The Company recognizes revenue when (1) persuasive evidence of a final agreement exists, (2) delivery has occurred or services have been rendered, (3) the selling price is fixed or determinable, and (4) collectability is reasonably assured. Revenues from sales to resellers are generally recognized on sell-in basis, upon shipment and when title and risk of loss have been transferred to the resellers. When products and services are sold to a reseller, the reseller is responsible for the installation of the system and for other support services and therefore considered the primary obligor in the arrangement with the end-customers. Products and services sold directly by the Company or marketed by independent sales agents are recognized based on the gross amount charged to the end-customer as the Company is considered the primary obligor in the arrangement, retains general inventory risk, establishes the price for its products and assumes the credit risk for amounts billed to its end-customers. Revenue from sales-type leases may include systems, other products and maintenance contracts. The Company recognizes revenue from sales-type leases based on the net present value of future minimum lease payments. Product revenue from sales-type leases is generally recognized at the time of shipment. The portion of lease agreements related to maintenance contracts is deferred and recognized ratably over the coverage period. Revenue from operating leases is recognized ratably over the lease period. For multiple-element arrangements the Company allocates revenue to all deliverables based on their relative selling prices and recognizes revenue when each element’s revenue recognition criteria are met. In such circumstances, the Company uses the following hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“BESP”). VSOE exists only when the Company sells the deliverable separately and is established based on the price charged in such stand-alone transactions. BESP reflects the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. Most service revenue is derived from the Company’s direct manufacturing printed parts services and sales of maintenance contracts. The Company’s direct manufacturing service revenue is recognized upon shipment of the parts, based on the terms of the sales arrangement. The Company provides customers with maintenance under a warranty agreement and defers a portion of the revenue from the related printer at the time of the sale based on the relative selling price of those services. After the initial warranty period, the Company offers customers optional maintenance contracts ranging generally from one to three years. Deferred maintenance revenue is recognized ratably, on a straight-line basis, over the period of the service. Deferred revenues are derived mainly from these prepaid maintenance agreements. The Company classifies the portion of deferred revenue not expected to be earned in the subsequent 12 months as long-term. The changes in deferred revenues relating to warranty commitments were as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Balance at beginning of year 17,555 14,100 Revenue deferred in the period 18,454 22,309 Revenue recognized in the period (16,791 ) ) Balance at end of year $ 19,218 $ 17,555 The Company assesses collectability as part of the revenue recognition process. This assessment includes a number of factors such as an evaluation of the creditworthiness of the customer, past due amounts, past payment history, and current economic conditions. If it is determined that collectability cannot be reasonably assured, the Company will defer recognition of revenue until collectability is assured. Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are recorded on a net basis (excluded from revenues) in the Company’s consolidated statements of operations and comprehensive loss. Advertising Advertising costs are expensed as incurred and were approximately $14.2 million, $19.4 million and $23.5 million, for the years ended December 31, 2017, 2016 and 2015, respectively. Shipping and handling costs Shipping and handling costs are classified as cost of revenues. Research and Development Costs Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software, and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. 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 all or a portion of 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 In accordance with the FASB guidance, 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 largest 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 and restricted stock units (“RSUs”) under the Stratasys Ltd. 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) based on estimated fair values on the grant date. The Company calculates the fair value of stock-based option awards on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The computation of expected volatility is based on historical volatility of the Company’s shares. The expected option term is calculated using the simplified method , as the Company concludes that its historical share option exercise experience does not provide a reasonable basis to estimate its expected option term. The interest rate for periods within the expected term of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The Company’s expected dividend rate is zero since the Company does not currently pay cash dividends on its shares and does not anticipate doing so in the foreseeable future. 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 materially different. Stock-based compensation expense for RSUs is measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes stock-based compensation cost for option awards and RSUs on a straight-line basis over the employee’s requisite service period (primarily a four-year period). Earnings per Share Basic earnings per share is computed by dividing net income (loss) attributable to ordinary shareholders of Stratasys Ltd., including adjustment of redeemable non-controlling interest to its redemption amount, by the weighted average number of ordinary shares (including fully vested RSUs) outstanding for the reporting periods. In computing the Company’s diluted earnings per share, the numerator used in the basic earnings per share computation is adjusted for the dilutive effect, if any, of the Company’s deferred payments liability revaluation to its fair value, as it would have been settled in shares that would result from the assumed issuance of potential ordinary shares. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested RSUs using the treasury stock method, as well as presumed share settlement of the Company’s deferred payments liability and other retention settlements in connection with certain prior acquisitions. Restructuring The Company may incur restructuring charges in connection with certain initiatives designed to adjust the Company's cost and operating structur |
Acquisitions and Other Signific
Acquisitions and Other Significant Business Activities | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Other Significant Business Activities | Note 2. Acquisitions and Other Significant Business Activities Investment in associated company In June 2016, the Company made an additional investment in the equity interests of LPW Technology Ltd ("LPW") which offers AM solutions. The Company increased its interest in LPW from 10% to approximately 40% and has the ability to exercise significant influence over LPW and therefore accounts for this investment under the equity method of accounting. This investment is presented under other non-current assets in the Company’s consolidated balance sheets. Borrowing Agreement In December 2016, the Company entered into a secured loan agreement with Bank Hapoalim Ltd (the “Bank Loan”). Pursuant to the Bank Loan, the Company borrowed $26 million initially and secured a credit line with similar terms for an additional $24 million (the “Credit Line”). The Bank Loan will mature in December 2023 and is payable in equal consecutive quarterly principal installments of principal and accrued interest. 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. The Bank Loan bears interest at the rate of LIBOR plus 3.35%. During December 2017, the Company borrowed $10 million under the Credit Line. Future annual principal payments under the Company’s Bank Loan as of December 31, 2017 are as follows: Loan principal amount Year ending December 31, (U.S. $ in thousands) 2018 $ 5,143 2019 5,143 2020 5,143 2021 5,143 2022 5,143 Thereafter 6,571 $ 32,286 Transaction in China On February 10, 2015, the Company acquired, in consideration for cash, certain assets and assumed certain liabilities of Intelligent CAD/CAM Technology Ltd., a Hong Kong company. This acquisition was aimed to enable the Company to expand its operations in the Chinese market. Financial information giving effect to this business combination has not been provided, as the acquisition is not material. New Facility in Israel In April 2015, the Company purchased the rights to land and a new building complex under construction in Rehovot, Israel (the “Rehovot Campus”). The new Rehovot Campus includes approximately 26,300 square meters (approximately 283,900 square feet) of two buildings complex and additional building rights for approximately 21,800 square meters (approximately 235,400 square feet). The new Rehovot Campus houses the Company’s Israeli headquarters, research and development facilities and certain marketing activities. The Company entered into the first building of its new Rehovot Campus during January, 2017. The second building of the Rehovot Campus is currently under construction. As of December 31, 2017 the Company had invested in the new Rehovot Campus and its related equipment approximately $68.2 million. Restructuring plan In April 2015, the Company initiated certain restructuring actions that were intended to focus efforts on adjusting its cost and operating structure to better align with the market environment, improving and iterating products, developing new 3D printing solutions and expanding its presence in the market. These restructuring actions included a reduction in the Company’s global workforce, consolidation of certain facilities, closing of three retail stores and other actions designed to streamline the Company’s operations and better position itself for market penetration. During 2015 the Company incurred restructuring charges of $26.2 million, including $10.4 million charges related to workforce reductions and $15.8 million charges related to facilities consolidation (primarily MakerBot’s facilities), impairments of associated long-lived assets and other related costs. $9.9 million, $1.5 million and $14.8 million of these restructuring charges were included in cost of sales, research and development, net and selling, general and administrative expenses, respectively. Payments for one-time termination benefits in connection with these initiatives were substantially completed in 2016. During 2016 the Company incurred charges of $6.6 million in connection with these initiatives. RTC Rapid Technologies Transaction On July 1, 2015 the Company acquired, in consideration for cash, 100% of the outstanding shares of RTC Rapid Technologies GmbH (“RTC”), which is a key channel partner in Germany. This acquisition was aimed to strengthen the Company’s presence in Germany, Switzerland and Austria, and enable the Company to offer full suite of Stratasys 3D printing solutions and services to the installed base of RTC. Financial information giving effect to this business combination has not been provided as the acquisition is not material. Termination of Credit Facility In September 2015, the Company terminated its $250 million five-year revolving credit facility under the credit agreement, dated November 7, 2013, with Bank of America, N.A., or BofA, as administrative agent and swing line lender, and the other lenders party thereto (the “Revolving Credit Facility”). In connection with the termination of the Revolving Credit Facility, the Company repaid all of its outstanding short-term debt thereunder, in an amount of approximately $175 million. That payment was made from the Company’s available cash balances. As a result of the termination of its short-term debt under the Revolving Credit Facility, the Company recorded additional financial expense of $2.7 million which included write-off of unamortized deferred issuance costs and fees paid for certain creditors and other third parties. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3. Fair Value Measurement 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: December 31, 2017 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 90 $ - $ 90 Foreign exchange forward contracts designated as hedging instruments 263 - 263 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (921 ) - (921 ) $ (568 ) $ - $ (568 ) December 31, 2016 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 1,440 $ - $ 1,440 Foreign exchange forward contracts designated as hedging instruments 37 - 37 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (48 ) - (48 ) Foreign exchange forward contracts designated as hedging instruments (61 ) - (61 ) Obligations in connection with acquisitions - (2,619 ) (2,619 ) $ 1,368 $ (2,619 ) $ (1,251 ) 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, 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. The following table is a reconciliation of the change for those financial liabilities where fair value measurements are estimated utilizing Level 3 inputs, which consist of obligations in connection with acquisitions: 2017 2016 (U.S. $ in thousands) Fair value as of January 1, $ 2,619 $ 6,991 Settlements (3,997 ) (3,500 ) Change in fair value recognized in earnings 1,378 (872 ) Fair value as of December 31, $ - $ 2,619 The Company’s obligations in connection with acquisitions were estimated utilizing Level 3 inputs, were 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 was 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 retained the discretion to settle the deferred payments in its shares, cash or any combination of the two. The deferred payments were also subject to certain adjustments based on the Company’s share price. During the third quarter of 2017, the Company issued 149,327 ordinary shares valued at $3.5 million and paid cash of $0.5 million to settle the final, third annual installment of the deferred payments. During the third quarter of 2016, the Company issued 152,633 ordinary shares valued at $3.1 million and paid cash of $0.4 million to settle the second annual installment of the deferred payments. During the third quarter of 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 were classified as liabilities and were measured at fair value in the Company’s consolidated balance sheets. 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. The fair-value revaluations of the deferred payments are presented under change in fair value of obligations in connection with acquisitions in the Company’s consolidated statements of operations and comprehensive loss. During the years ended December 31, 2016 and 2015, the Company recorded a gain of $0.9 million and $23.7 million, respectively due to the fair-value revaluation of the deferred payments which included approximately unrealized gains of $0.7 million and $17.5 million, respectively, and realized gains of $0.1 million and $6.2 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventories, net consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Finished goods $ 63,234 $ 62,728 Work-in-process 2,271 2,389 Raw materials 50,212 52,404 $ 115,717 $ 117,521 |
Net Investment in Sales-type Le
Net Investment in Sales-type Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Capital [Abstract] | |
Net Investment in Sales-type Leases | Note 5. Net Investment in Sales-type Leases The Company’s net investment in sales-type leases consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Future minimum lease payments receivable $ 13,748 $ 25,910 Less allowance for doubtful accounts (1,575 ) (844 ) Net future minimum lease payment receivable 12,173 25,066 Less unearned interest income (526 ) (1,223 ) Net investment in sales-type leases $ 11,647 $ 23,843 Future minimum lease payments due from customers under sales-type leases as of December 31, 2017 were as follows: U.S . $ in thousands Year ending December 31, 2018 $ 9,170 2019 3,130 2020 1,218 2021 230 $ 13,748 The interest income for sales-type leases is recorded in financial income (expense), net and amounted to approximately $0.7 million, $1.0 million and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. Property, Plant and Equipment Property, plant and equipment, net consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Machinery and equipment $ 133,656 $ 128,187 Buildings and improvements 131,993 121,970 Computer equipment and software 48,237 48,917 Office equipment, furniture and fixtures 17,893 16,393 Land 19,234 19,591 351,013 335,058 Accumulated depreciation (155,147 ) (131,327 ) 195,866 203,731 Construction work in progress 4,085 4,684 $ 199,951 $ 208,415 Depreciation expenses were $31.6 million, $33.8 million and $33.4 million in the years ended December 31, 2017, 2016 and 2015, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract]. | |
Goodwill | Note 7. Goodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2017 and 2016 were as follows: 2017 2016 (U.S. $ in millions) Goodwill as of January 1, $ 385.6 $ 383.9 Translation differences 1.5 1.7 Goodwill as of December 31, $ 387.1 $ 385.6 Goodwill impairment charges for the year ended December 31, 2017 During the fourth quarter of 2017, 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 Stratasys-Objet reporting unit exceeded its carrying amount by approximately 7%, with a carrying amount of goodwill assigned to this reporting unit in the amount of $387 million. When evaluating the fair value of Stratasys-Objet reporting unit the Company used a discounted cash flow model which utilized Level 3 measures that represent unobservable inputs into our valuation method. Key assumptions used to determine the estimated fair value include: (a) expected cash flow for 5 years following the assessment date which (including expected revenue growth, costs to produce, operating profit margins and estimated capital needs); (b) an estimated terminal value using a terminal year growth rate of 3.1% determined based on the growth prospects of the reporting unit; and (c) a discount rate of 14.0% based on management’s best estimate of the after-tax weighted average cost of capital. If any of these were to vary materially from our plans, we could face impairment of goodwill allocated to this reporting unit in the future. A hypothetical decrease in the growth rate of 1% or an increase of 1% to the discount rate would have reduced the fair value of Stratasys-Objet reporting unit by approximately $ 48 88 Based on the Company’s assessment as of December 31, 2017, no goodwill was determined to be impaired. Determining the fair value of Stratasys-Objet reporting unit requires significant judgment, including judgments about the appropriate discount rates, terminal growth rates, weighted average costs of capital and the amount and timing of projected future cash flows. The Company will continue to monitor the fair value of its Stratasys-Objet reporting unit to determine whether events and changes in circumstances such as further deterioration in the business climate or operating results, further significant decline in our share price, changes in management’s business strategy or downward changes of our cash flows projections, warrant further interim impairment testing. Goodwill impairment charges for the year ended December 31, 2016 During the fourth quarter of 2016, 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 Stratasys-Objet reporting unit exceeded its carrying amount by approximately 5%, with a carrying amount of goodwill assigned to this reporting unit in the amount of $386 million. Based on the Company’s assessment as of December 31, 2016, no goodwill was determined to be impaired. Goodwill impairment charges for the year ended December 31, 2015 During 2015, the Company determined that certain indicators of potential impairment existed that required interim goodwill impairment analysis. Accordingly, the Company performed a quantitative two-step assessment for goodwill impairment for each of its reporting units as described below. During the first quarter of 2015, the Company performed a quantitative assessment for goodwill impairment for its MakerBot reporting unit. The Company updated its Makerbot reporting unit cash flow projections and related assumptions based on the indicators mentioned above and performed the two-step goodwill impairment test. As a result of the two-step goodwill impairment test, the carrying amount of goodwill assigned to the MakerBot reporting unit exceeded its implied fair value and the Company recorded a non-tax deductible impairment charge of $150.4 million, in order to reduce the carrying amount of goodwill to its implied fair value. During the third quarter of 2015, the Company determined that additional indicators of potential impairment existed that required an interim goodwill impairment analysis for all of its reporting units. Accordingly, the Company updated its cash flow projections and related assumptions for As of December 31, 2015, the remaining goodwill balance of $384 million was assigned to the Stratasys-Objet reporting unit and there was no remaining goodwill balance assigned to the Company’s other reporting units. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Intangible Assets [Abstract] | |
Other Intangible Assets | Note 8. Other Intangible Assets Other intangible assets consisted of the following: December 31, 2017 December 31, 2016 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 $ 304,601 $ (220,420 ) $ 84,181 $ 304,766 $ (198,632 ) $ 106,134 Patents 19,708 (14,279 ) 5,429 19,009 (12,257 ) 6,752 Trademarks and trade names 27,248 (18,245 ) 9,003 27,819 (16,849 ) 10,970 Customer relationships 106,203 (63,435 ) 42,768 106,571 (54,258 ) 52,313 Capitalized software development costs 19,541 (18,800 ) 741 19,540 (18,251 ) 1,289 $ 477,301 $ (335,179 ) $ 142,122 $ 477,705 $ (300,247 ) $ 177,458 During 2017, the Company recorded impairment charges of $2.2 million related to certain of its intangible assets. Other intangible assets impairment charges for the year ended December 31, 2016 During 2016, the Company assessed the recoverability of certain of its definite-life intangibles assets based on their projected undiscounted future cash flows expected to result from each intangible asset. Based on the results of the recoverability assessment, the Company determined that the carrying values of certain of its intangible assets exceeds their undiscounted cash flows projections and therefore were not recoverable. For those unrecoverable intangible assets that considered to be impaired, the Company recorded impairment charges of $16.9 million during 2016, in order to reduce the carrying amount of those intangible assets to their estimated fair value. Impairment charges of $1.8 million related to developed technology intangible assets were classified as costs of sales, and $15.1 million related to customer relationships, trade names, capitalized software development costs and patents were classified as selling, general and administrative expenses. In addition, the Company recorded $1 million impairment charge for the full carrying value of its IPR&D project. Other intangible assets impairment charges for the year ended December 31, 2015 Prior to conducting the quantitative assessments for goodwill impairment of its reporting units during 2015, the Company tested the recoverability of its reporting units' long-lived assets, including its purchased intangible assets. The Company assessed the recoverability of its definite-life intangibles assets based on their projected undiscounted future cash flows expected to result from each intangible asset. Based on the results of the recoverability assessment, the Company determined that the carrying values of certain of its intangible assets exceeds their undiscounted cash flows projections and therefore were not recoverable. For those unrecoverable intangible assets that considered to be impaired, the Company recorded impairment charges of $260.3 million during 2015, in order to reduce the carrying amount of those intangible assets to their estimated fair value. Impairment charges of $191.2 million related to developed technology intangible assets were classified as costs of sales, and $68.8 million related to customer relationships, trade names and non-compete agreements intangible assets were classified as selling, general and administrative expenses. In addition, the Company reviewed for impairment its indefinite-life intangible assets, which consists of IPR&D projects. Based on the results of the impairment assessment, the Company determined that the carrying value of certain of its IPR&D projects exceeded their fair value. Accordingly, the Company recorded impairment charges of $18.2 million, related to its in-process research and development projects, which were classified as research and development expenses, in order to reduce the carrying amount of those intangible assets to their estimated fair value. Amortization expense Amortization expense relating to intangible assets for the years ended December 31, 2017, 2016 and 2015, was approximately $35.0 million, $59.0 million and $75.0 million, respectively. The decrease in amortization expense in 2017 was primarily due to change in the estimated useful lives of certain intangibles assets, which reduced the Company's amortization expense by $20.5 million and resulted in a decrease of $18.3 million in the Company's net loss and a decrease of $0.35 in the Company's basic and diluted loss per share. As of December 31, 2017, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expense Year ending December 31, (U.S. $ in thousands) 2018 $ 32,523 2019 32,190 2020 31,852 2021 31,281 2022 10,553 Thereafter 3,723 Total $ 142,122 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 were as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 114,107 $ 139,914 Inventory related 2,584 12,124 Intangibles assets 23,143 38,379 Provision for employee related obligations 1,463 3,568 Stock-based compensation expense 4,887 6,040 Deferred revenue 2,036 3,211 Property, plant and equipment 924 1,140 Allowance for doubtful accounts 646 645 Foreign currency losses 421 587 Research and development credit carry forwards 11,288 9,998 Other items 1,383 1,560 Gross deferred tax assets 162,882 217,166 Valuation allowance (152,062 ) (201,376 ) Total deferred tax assets $ 10,820 $ 15,790 Deferred tax liabilities Intangibles assets $ (13,658 ) $ (17,053 ) Property, plant and equipment (3,581 ) (2,662 ) Total deferred tax liabilities $ (17,239 ) $ (19,715 ) Net deferred tax liabilities $ (6,419 ) $ (3,925 ) The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 650 $ 2,027 Deferred tax liabilities 7,069 5,952 Net deferred tax liabilities $ (6,419 ) $ (3,925 ) As of December 31, 2017 and 2016 the Company had a tax net operating losses carry-forward of approximately $486 million and $381 million, respectively, related to its U.S. subsidiaries. The tax net operating losses carry-forward resulted in deferred tax assets of approximately $114 million and $140 million, as of December 31, 2017 and 2016, respectively. As a result of losses incurred by its U.S. subsidiaries in the last few years, and since the near-term realization of these assets is uncertain, the Company provided a full valuation allowance for its deferred tax assets related to its U.S. subsidiaries that are not expected to be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. Included in the net deferred tax liability are net operating loss and credit carryovers of $125.5 million which expire in years ending from December 31, 2022 through December 31, 2037. The net decrease in the net deferred tax liability from 2016 to 2017 is driven by the US federal tax rate reduction discussed immediately below. On December 22, 2017, the Tax Cuts and Jobs Act (the “ Act ” ) was enacted into law. The new legislation represents fundamental and dramatic modifications to the U.S. tax system. The Act contains several key tax provisions that will impact the Company's U.S. subsidiaries, including the reduction of the maximum U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. Other significant changes under the Act include, among others, a one-time repatriation tax on accumulated foreign earnings, a limitation of net operating loss deduction to 80% of taxable income, and indefinite carryover of post-2017 net operating losses. The Act also repeals the corporate alternative minimum tax for tax years beginning after December 31, 2017. Losses generated prior to January 1, 2018 will still be subject to the 20-year carryforward limitation and the alternative minimum tax. Other potential impacts due to the Act include the repeal of the domestic manufacturing deduction, modification of taxation of controlled foreign corporations, a base erosion anti-abuse tax, modification of interest expense limitation rules, modification of limitation on deductibility of excessive executive compensation, and taxation of global intangible low-taxed income. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. Due to the net operating losses discussed above, the Company the fourth quarter of 2017 65.6 65.6 Because of the complexity of the new intangible income rules, Global Intangible Low-Taxed Income (GILTI) and Foreign Derived Intangible Income (FDII) tax rules, the Company continues to evaluate these provisions of the Act and the application of ASC 740, Income Taxes . Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due or receivable on future U.S. inclusions/deductions in taxable income related to GILTI and FDII as a current-period expense/benefit when incurred (the “period cost method” ) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method” ). The Company's selection of an accounting policy with respect to the new GILTI/FDII tax rules will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions or deductions in taxable income related to GILTI/FDII and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions or deductions in taxable income related to GILTI/FDII depends not only on the Company's current structure and estimated future results of global operations, but also its intent and ability to modify its structure. The Company is currently in the process of analyzing its structure and, as a result, is not yet able to reasonably estimate the effect of these provisions of the Act. Therefore, the Company has not made any adjustments related to potential GILTI or FDII tax impact in its financial statements and has not made a policy decision regarding whether to record deferred tax on GILTI/FDII. The tax impacts discussed above represent provisional amounts and the Company's current best estimates. The SEC issued SAB 118 which provides guidance on the accounting for the tax effects of the Act. In accordance with this guidance, any material adjustments recorded to the provisional amounts will be disclosed in a 2018 reporting period by the fourth quarter of 2018. The provisional amounts incorporate assumptions made based upon the Company's current interpretation of the Act and may change as the Company reviews the interpretations and assumptions, receives implementation guidance from the Internal Revenue Service, and assesses any actions it may take based on the Act. 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 a non-material amount. b. Provision for Income Taxes Loss before income taxes for the years ended December 31, 2017, 2016 and 2015 was as follows: 2017 2016 2015 (U.S. $ in thousands) Domestic $ (98 ) $ (11,783 ) $ (635,721 ) Foreign (29,378 ) (74,576 ) (748,110 ) $ (29,476 ) $ (86,359 ) $ (1,383,831 ) The components of income taxes for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 (U.S. $ in thousands) Current Domestic $ 10,574 $ 6,242 $ 4,564 Foreign 1,248 (5,310 ) 8,304 11,822 932 12,868 Deferred Domestic (4,497 ) (9,851 ) (18,607 ) Foreign 1,948 (527 ) (4,581 ) (2,549 ) (10,378 ) (23,188 ) Total income taxes $ 9,273 $ (9,446 ) $ (10,320 ) A reconciliation of the statutory income tax rate and the effective tax rate for the years ended December 31, 2017, 2016 and 2015 is set forth below: 2017 2016 2015 Statutory tax rate 24.0 % 25.0 % 26.5 % Approved and Privileged enterprise benefits 15.7 7.0 (0.4 ) Goodwill impairment - - (15.3 ) Revaluation of obligations in connection with acquisitions - - 0.2 US Tax Act enactment (222.5 ) - - Stock compensation expense (5.3 ) (2.4 ) (0.4 ) Tax contingencies (30.8 ) (4.7 ) (0.3 ) Non-deductible acquisition expenses (0.6 ) (0.2 ) (0.1 ) Earning taxed under foreign law 43.3 34.4 1.4 Valuation Allowance 144.4 (57.0 ) (11.0 ) Changes to the prior year’s tax assessment (1.2 ) 7.9 - Other 1.5 0.9 0.1 Effective income tax rate (31.5 ) % 10.9 % 0.7 % For the year ended December 31, 2017, the above rate reconciliation table reflects the Company’s valuation allowance on its US deferred tax assets, the impact of the US Tax Act due to revaluation of its net operating losses, and changes to uncertain tax positions, offset by the mix of foreign taxable income and loss and an income tax benefit attributable to one of the Company’s foreign subsidiaries that received a favorable tax ruling from the tax authorities in 2016. 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. As of December 31, 2017, 2016 and 2015, the Company had unrecognized tax benefits of $27.3 million, $18.0 million, and $13.9 million, respectively. If recognized, these benefits would favorably impact the effective tax rate. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: 2017 2016 2015 (U.S. $ in thousands) Balance at beginning of year 18,000 $ 13,930 $ 8,552 Additions for tax positions related to the current year 8,777 4,039 4,116 Foreign currency fluctuation 1,242 - - Adjustments for tax positions related to previous years (687 ) 129 1,987 Reduction of reserve for statute expirations (15 ) (98 ) (725 ) Balance at end of year $ 27,317 $ 18,000 $ 13,930 The Company’s accrual for estimated interest and penalties was $942 thousand as of December 31, 2017. 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 2012 tax year are considered to be final following the completion of the Israeli Tax Authorities examination upon audit. The expiration of the statute of limitations related to the various other foreign and state income tax returns that the Company and its subsidiaries file vary by state and foreign jurisdiction. c. Basis of taxation: The enacted statutory tax rates applicable to the Company’s major subsidiaries outside of Israel are as follows: Company incorporated in the U.S.—tax rate of approximately 35% through December 31, 2017 and 21% beginning 2018. Company incorporated in Hong Kong—tax rate of 16.5%. A significant portion of the Company’s income is Corporate tax rates in Israel are as follows: 2014 and 2015-26.5%, 2016-25%, 2017-24% and 2018 and thereafter-23%. The Company elected to compute its taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the Company’s taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of foreign exchange rate fluctuations (of the NIS in relation to the U.S. dollar) on the Company’s Israeli taxable income. Tax benefits under the Law for Encouragement of Capital Investments, 1959 (the “Investment Law”) Various industrial projects of the Company have been granted “Approved Enterprise” and “Beneficiary Enterprise” status, which provides certain benefits, including tax exemptions for undistributed income and reduced tax rates. Income not eligible for Approved Enterprise and Beneficiary Enterprise benefits is taxed at the regular corporate rate, which was 24% in 2017. 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. In the event of distribution of dividends from the said tax-exempt income during the tax exemption period as described above, the amount distributed will be subject to tax in respect of the amount of dividend distributed (grossed up to reflect such pre-tax income that it would have had to earn in order to distribute the dividend) at the corporate tax rate that would have been otherwise applicable if such income had not been tax-exempted under the alternative benefits program. This rate generally ranges from 10% to 25%, depending on the level of foreign investment in the company in each year, as explained above, Dividends paid out of income attributed to Approved Enterprise or Beneficiary Enterprise (or out of dividends received from a company whose income is attributed to an Approved or Beneficiary Enterprise) are generally subject to withholding tax at the source at the rate of 15%, unless a lower rate is provided in a treaty between Israel and the shareholder’s country of residence (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). The 15% tax rate is limited to dividends and distributions out of income derived during the benefits period and actually paid at any time up to 12 years thereafter. After this period, the withholding tax is applied at a rate of up to 30%, or at the lower rate under an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). In the case of an FIC, the 12-year limitation on reduced withholding tax on dividends does not apply. The entitlement to the above benefits is conditional upon the Company’s fulfilling the conditions stipulated by the Investment Law and regulations published thereunder. Should the Company fail to meet such requirements in the future, income attributable to its Approved Enterprise and Beneficiary Enterprise programs would be subject to the statutory Israeli corporate tax rate and the Company would be required to refund a portion of the tax benefits already received with respect to such programs. The refund will be subject to interest and index changes as applicable the law or other monetary penalty. The Company does not intend to distribute any amounts of its undistributed tax-exempt income as dividends, as it intends to reinvest its tax-exempt income within the Company. Accordingly, no deferred income taxes have been provided on income attributable to the Company’s Approved or Beneficiary Enterprise programs, as the undistributed tax exempt income is essentially permanent in duration. As of December 31, 2017, tax-exempt income of approximately $ 229.4 22.9 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 Enterprise, 9%. In Dividends paid out of preferred income attributed to a Preferred Enterprise is 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies a. Commitments The Company leases certain of its facilities under non-cancellable operating leases, which expire through 2023. Future minimum annual lease payments under all non-cancelable operating leases with an initial term in excess of one year as of December 31, 2017 are as follows: Minimum future operating lease payments Year ending December 31, (U.S. $ in thousands) 2018 $ 9,243 2019 6,941 2020 5,800 2021 4,178 2022 2,314 Thereafter 797 29,273 Rent expense for the years ended December 31, 2017, 2016 and 2015 was approximately $10.0 million, $14.0 million and $14.3 million, respectively. b. 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 demanded 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 named 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 Company filed its statements of defense in May 2013 denying the plaintiffs’ claims. In 2015, the court dismissed the lawsuit of one of the former directors due to lack of cause. In February 2017, the parties reached an agreement pursuant to which all claims were settled at no material cost to the Company. Notice of the settlement was provided and the suits were subsequently dismissed. 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. On September 22, 2016, lead plaintiffs filed the opening initial brief in support of their appeal. On October 24, 2016, defendants filed their answering brief to the appeal. On November 18, 2016, lead plaintiffs filed their reply brief in support of the appeal. Oral arguments for appeal were held on March 9, 2017. On July 25, 2017, the Eighth Circuit entered an order and judgment affirming the Court’s dismissal with prejudice. Patent Law-Based Claim On November 23, 2017, a former employee, whose employment had been terminated by the Company the Company the Company the Company the Company the Company the Company the Company the Company the Company the Company The Company 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 or profitability of the Company. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Note 11. Equity a. Share capital The Company’s issued share capital is composed of ordinary shares at NIS 0.01 par value. 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, 2017 and 2016, there were 53,631 thousand ordinary shares and 52,639 thousand ordinary shares issued and outstanding, respectively. The increase in the outstanding and issued ordinary shares during 2017 was attributable to exercises of stock options and RSUs under the Company’s stock-based compensation plans as well as shares issued related to deferred consideration in connection with business combination transactions. 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, restricted share units (“RSUs”) and other share-based awards to the Company’s and its subsidiaries’ respective directors, employees, officers, consultants, and advisors and to any other person whose services are considered valuable to the Company or any of its affiliates. Under the 2012 plan, options and RSUs generally have a contractual term of ten years from the grant date. Options granted become exercisable and RSUs are vested 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. As of December 31, 2017, 1.9 million shares were available for equity awards under the 2012 plan. On January 1, 2018, the reserve pool under the 2012 plan was automatically increased by 0.5 million shares. Stock options A summary of the stock option activity for the year ended December 31, 2017 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of December 31, 2016 2,615,461 $ 37.21 Granted 2,139,698 20.41 Exercised (604,536 ) 10.84 Forfeited (819,670 ) 35.89 Options outstanding as of December 31, 2017 3,330,953 $ 31.53 Options exercisable as of December 31, 2017 1,109,094 $ 49.68 The following table summarizes information about stock options outstanding at December 31, 2017: 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 2017 Life in Years Price 2017 Price $ 2.74 - $ 9.32 14,539 4.08 $ 6.77 $ 14,536 $ 6.77 $ 19.66 - $ 19.66 1,351,385 8.94 19.66 30,339 19.66 $ 19.96 - $ 24.66 887,398 8.57 21.94 282,367 22.55 $ 27.83 - $ 1,077,631 5.52 54.59 781,852 61.45 3,330,953 $ 7.71 $ 31.53 1,109,094 $ 49.68 Aggregate intrinsic value (U.S. $ in thousands) $ 597 $ 201 As of December 31, 2017, the weighted-average remaining contractual life of exercisable options was 5.5 years. The total intrinsic value of options exercised during 2017, 2016 and 2015 was approximately $7.2 million, $1.5 million and $4.6 million, respectively. The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2017, 2016 and 2015. The following assumptions were applied in determining the options’ fair value on their grant date: 2017 2016 2015 Risk-free interest rate 1.8%-2.2% 1.1%-1.5% 1.6% - 1.9% Expected option term (years) 5.1-6.0 5.2-6.0 6 Expected share price volatility 52.6%-54.0% 53.6%-56.1% 50.1%-53.5% Dividend yield - - - Weighted average grant date fair value $ 11.10 $ 12.36 $ 15.49 As of December 31, 2017, the Company had 2.2 million unvested options. As of December 31, 2017, the unrecognized compensation cost related to all unvested, equity-classified stock options of $22.3 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 2.9 years. Restricted Stock Units A summary of the Company’s RSUs activity for the year ended December 31, 2017 is as follows: Weighted Average Number of RSUs Grant Date Fair Unvested RSUs outstanding as of December 31, 2016 267,756 $ 72.17 Granted 278,514 20.18 Vested (130,884 ) 75.09 Forfeited (113,223 ) 51.10 Unvested RSUs outstanding as of December 31, 2017 302,163 $ 30.88 The total vesting-date value of equity classified RSUs vested during 2017 was $2.9 million. As of December 31, 2017, the unrecognized compensation cost related to all unvested equity classified RSUs of $6.8 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 2.8 years. Stock-based compensation expense for stock options and equity classified RSUs included in the Company’s Statements of Operations were allocated as follows: 2017 2016 2015 (U.S. $ in thousands) Cost of sales $ 2,580 $ 2,780 $ 5,381 Research and development, net 3,503 4,768 5,759 Selling, general and administrative 11,639 13,225 18,870 Total stock-based compensation expenses $ 17,722 $ 20,773 $ 30,010 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, 2017, 2016 and 2015: Year ended December 31, 2017 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2017 $ (24 ) $ (13,455 ) $ (13,479 ) Other comprehensive loss before reclassifications 1,315 5,834 7,149 Amounts reclassified from accumulated other comprehensive loss (961 ) 268 (693 ) Other comprehensive income (loss) 354 6,102 6,456 Balance as of December 31, 2017 $ 330 $ (7,353 ) $ (7,023 ) Year ended December 31, 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 loss before reclassifications 523 (2,788 ) (2,265 ) Amounts reclassified from accumulated other comprehensive loss (440 ) - (440 ) Other comprehensive income (loss) 83 (2,788 ) (2,705 ) Balance as of December 31, 2016 $ (24 ) $ (13,455 ) $ (13,479 ) Year ended December 31, 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 (288 ) (8,263 ) $ (8,551 ) Amounts reclassified from accumulated other comprehensive loss 1,424 - $ 1,424 Other comprehensive income (loss) (8,263 ) (7,127 ) Balance as of December 31, 2015 $ (107 ) $ (10,667 ) $ (10,774 ) Realized gains and losses on cash flow hedges were reclassified primarily to research and development, net and selling and general and administrative expenses. Other reclassifications from accumulated other comprehensive loss were reclassified to financial expense, net. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
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. 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. In addition, the Company uses derivative instruments to reduce the net exposure to foreign exchange. Gains and losses on the hedging instruments offset losses and gains on the hedged items. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. 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 2017 2016 2017 2016 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 90 $ 1,440 $ 22,036 $ 39,982 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 263 37 13,169 8,348 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (921 ) (48 ) 65,668 13,273 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities - (61 ) - 7,534 $ (568 ) $ 1,368 $ 100,873 $ 69,137 As of December 31, 2017, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $87.7 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 $5.0 million and gain $2.1 million were recognized under financial expense, net for the years ended December 31, 2017 and 2016, respectively. Such gains partially offset the revaluation losses of the balance sheet items, which are also recognized under financial income (expense), net. As of December 31, 2017 and 2016, the Company had in effect foreign exchange forward contracts for the conversion of $13.2 million and $15.9 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 June, 2018. |
Entity-Wide Disclosure
Entity-Wide Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Entity-Wide Disclosure | Note 13. Entity-Wide Disclosure Net sales by geographic area for the years ended December 31, 2017, 2016 and 2015 were as follows*: Year ended December 31, 2017 2016 2015 (U.S. $ in thousands) Americas (primarily the United States) $ 413,326 $ 411,536 $ 425,569 EMEA 148,279 137,924 148,169 Asia Pacific 106,757 122,998 122,257 $ 668,362 $ 672,458 $ 695,995 *Net sales are attributed to geographic areas based on the location of customer. No single customer accounted for 10% or more of Company’s total net sales, or Company’s net accounts receivable, in any fiscal year presented. Property, plant and equipment by geographical area were as follows as of December 31, 2017 and 2016: December 31, 2017 2016 (U.S. $ in thousands) Americas (primarily the United States) $ 75,191 $ 91,894 EMEA 120,498 108,978 Asia Pacific 4,262 7,543 $ 199,951 $ 208,415 Property, plant and equipment that were located in Israel amounted to $101.4 million and $92.1 million for the years ended December 31, 2017 and 2016, respectively and are included under the EMEA region in the above table. |
Retirement Plans and Employee R
Retirement Plans and Employee Rights Upon Termination | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Employee Rights Upon Termination | Note 14. Retirement Plans and Employee Rights Upon Termination Israeli law generally requires the Company to pay a severance payment 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. According to the general collective pension agreement in Israel, Company deposits with respect to employees who were employed by the Company after the agreement took effect are made in lieu of the Company’s severance liability therefore, no obligation is provided for in the Company’s consolidated financial statements. Severance pay liabilities with respect to Israeli employees who were employed by the Company prior to the collective pension agreement effective date, as well as employees who have special contractual arrangements, are provided for in the Company’s consolidated financial statements based upon the number of years of service and their latest monthly salary. The Company’s liabilities for those Israeli employees, in the amounts of $ 3.9 the Company had $3.0 million and $2.7 million, respectively In accordance with its current employment agreements with certain employees, the Company makes regular deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon retirement. The Company is fully relieved from any severance pay liability with respect to each such employee after it makes the payments on behalf of the employee. The liability accrued in respect of these employees and the amounts funded, as of the respective agreement dates, are not reflected in the Company’s balance sheets, as the amounts funded are not under the control and management of the Company and the pension or severance pay risks have been irrevocably transferred to the applicable insurance companies. 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 up to 50% of pre-tax annual compensation, as defined by the Plan, up to a maximum amount prescribed by the Code. The Company, at its discretion, makes matching contributions equal to the lesser of $ 3,500 3.7 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Net loss per ordinary share attributable to Stratasys Ltd. | |
Earnings per Share | Note 15. Earnings per Share The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (39,981 ) $ (77,219 ) $ (1,372,835 ) Adjustment of redeemable non-controlling interest to redemption amount - - (1,800 ) Net loss attributable to Stratasys Ltd. for basic loss per share (39,981 ) (77,219 ) (1,374,635 ) Adjustment of deferred payments liability revaluation - (830 ) - Net loss attributable to Stratasys Ltd. for diluted loss per share (39,981 ) (78,049 ) (1,374,635 ) Denominator: Add: Weighted average shares – denominator for basic net loss per share 52,959 52,330 51,592 Add: Shares settlement presumed for deferred payments liability - 252 - Denominator for diluted loss per share 52,959 52,582 51,592 Net loss per share Basic $ (0.75 ) $ (1.48 ) $ (26.64 ) Diluted $ (0.75 ) $ (1.48 ) $ (26.64 ) The computation of diluted net loss per share for the years ended December 31, 2017, 2016 and 2015 excluded share awards of 3.8 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended December 31, 2017, 2016, and 2015 (U.S. $ in thousands): COLUMN A Column B Column C - Additions Column D - Deductions Column E Balances at Charged to Balances beginning costs and Charged to Charged to Charged to at end Description of period expenses other accounts income other accounts of period Reserve for bad debts and allowances Year ended December 31, 2017 $ 1,687 $ 1,665 $ - $ 617 $ - $ 2,735 Year ended December 31, 2016 $ 1,357 $ 991 $ - $ 661 $ - $ 1,687 Year ended December 31, 2015 $ 1,477 $ 514 $ - $ 634 $ - $ 1,357 Valuation allowances on deferred tax assets Year ended December 31, 2017 $ 201,376 $ 22,998 $ - $ 65,572 $ 6,740 152,062 Year ended December 31, 2016 $ 152,115 $ 49,261 $ - $ - $ - $ 201,376 Year ended December 31, 2015 $ - $ 152,115 $ - $ - $ - $ 152,115 |
Nature of Operations and Summ23
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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., its majority-owned subsidiaries and a Variable Interest Entity (“VIE”) in which the Company is considered the primary beneficiary. All intercompany accounts 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 are 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. The effects of foreign currency translation adjustments are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated balance sheets. Related periodic movements are summarized as a line item in the Company’s consolidated statements of comprehensive loss. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income (expense), 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 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, long-lived assets, goodwill, uncertain tax positions and contingent liabilities. |
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. Observable inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy categorizes into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments, which include short-term bank deposits that are not restricted as to withdrawal or use, with maturities of ninety days or less when acquired, are considered to be cash equivalents. |
Accounts Receivable and Net investment in sales-type leases | Accounts Receivable and Net investment in Sales-Type Leases Accounts receivable and net investment in sales-type leases are presented in the Company’s consolidated balance sheets net of allowance for doubtful accounts. The Company estimates the collectability of its accounts receivable balances and adjusts its allowance for doubtful accounts accordingly. The Company carries its investment in sales-type leases based on discounting the minimum lease payments by the interest rate implicit in the lease and less an allowance for doubtful accounts (see also note 5). On a periodic basis, the Company evaluates its accounts receivable and its investment in sales-type leases and establishes an allowance for doubtful accounts based on past write-offs and collections, current credit conditions and the age of the balances. The Company evaluates a number of factors to assess collectability, including an evaluation of the creditworthiness of the specific customer, past due amounts, payment history, and current economic conditions. Allowance for doubtful accounts due to the Company’s accounts receivable amounted to $1,160 thousand and $843 thousand as of December 31, 2017 and 2016, respectively. Allowance for doubtful accounts due to the Company’s investment in sales-type leases amounted to $1,575 thousand and $844 thousand as of December 31, 2017 and 2016, respectively. Changes in the allowance for doubtful accounts are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for doubtful accounts when management deems the accounts are no longer collectible. |
Derivative Instruments and Hedge Accounting | Derivative Instruments and Hedge Accounting The Company is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange rates. As part of the Company’s risk management strategy, it uses foreign currency exchange forward contracts to hedge against certain foreign currency 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 each hedging instrument that hedges the exposure to variability in expected future cash flows and that is designated and effective as a cash flow hedge, the effective portion of the unrealized gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss in the Company’s shareholders’ equity and is reclassified into earnings in the same period and in the same line item in which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in financial income (expense), net. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income (expense), net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. The Company provided inventory write-downs for obsolescence and excess inventories in the amounts of $6.3 million and $7.7 million as of December 31, 2017 and 2016, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment 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. Depreciation is computed primarily over the following periods: Useful Life in Years Machinery and equipment 5 - 10 Buildings 25 - 40 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. |
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 at the reporting unit level, or whenever events or circumstances present an indication of impairment. 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 primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Goodwill is tested for impairment on an annual basis in the fourth quarter and whenever indicators of potential impairment requires an interim goodwill impairment analysis. 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 two-step 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 has early adopted a new guidance which simplifies the test for goodwill impairment. Under the new guidance, 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 and no further testing is required. 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, margins realized, level of operating expenses and cost of capital. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the year ended December 31, 2015 the Company recorded impairment charges of $942.4 million in order to reduce the carrying amount of goodwill to its implied fair value. There was no impairment of goodwill in either 2016 or 2017. For further details refer to note 7. |
Other Intangible Assets | Other Intangible Assets Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 10 Trademarks and trade names 9 Customer relationships 7 Capitalized software development costs 5 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of sales. Amortization of trade name and customer relationships is recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. During the years ended December 31, 2017, 2016 and 2015 the Company recorded impairment charges of $2.2 million, $16.9 million and $260.3 million, respectively, related to its definite life intangible assets. Refer to Note 8 for further information. |
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. The Company adds the cost of acquiring the additional interest in an unconsolidated equity investment that was not accounted for under the equity method as of the date the equity investment becomes qualified for equity method accounting. Other non-marketable equity securities in which the Company does not have a controlling interest or significant influence are recorded at cost and presented as other non-current assets in the Company’s consolidated balance sheets. The Company reviews its unconsolidated non-marketable equity investments for possible impairment, which generally involves an analysis of the facts and changes in circumstances influencing the investments. There was no impairment of unconsolidated non-marketable equity investments during the years ended December 31, 2017, 2016 and 2015. |
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. |
Revenue Recognition | Revenue Recognition The Company derives revenue from sales of AM systems, consumables, and services. The Company’s AM systems include software and hardware that function together to provide the essential functionality of the tangible system. The Company recognizes revenue when (1) persuasive evidence of a final agreement exists, (2) delivery has occurred or services have been rendered, (3) the selling price is fixed or determinable, and (4) collectability is reasonably assured. Revenues from sales to resellers are generally recognized on sell-in basis, upon shipment and when title and risk of loss have been transferred to the resellers. When products and services are sold to a reseller, the reseller is responsible for the installation of the system and for other support services and therefore considered the primary obligor in the arrangement with the end-customers. Products and services sold directly by the Company or marketed by independent sales agents are recognized based on the gross amount charged to the end-customer as the Company is considered the primary obligor in the arrangement, retains general inventory risk, establishes the price for its products and assumes the credit risk for amounts billed to its end-customers. Revenue from sales-type leases may include systems, other products and maintenance contracts. The Company recognizes revenue from sales-type leases based on the net present value of future minimum lease payments. Product revenue from sales-type leases is generally recognized at the time of shipment. The portion of lease agreements related to maintenance contracts is deferred and recognized ratably over the coverage period. Revenue from operating leases is recognized ratably over the lease period. For multiple-element arrangements the Company allocates revenue to all deliverables based on their relative selling prices and recognizes revenue when each element’s revenue recognition criteria are met. In such circumstances, the Company uses the following hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“BESP”). VSOE exists only when the Company sells the deliverable separately and is established based on the price charged in such stand-alone transactions. BESP reflects the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. Most service revenue is derived from the Company’s direct manufacturing printed parts services and sales of maintenance contracts. The Company’s direct manufacturing service revenue is recognized upon shipment of the parts, based on the terms of the sales arrangement. The Company provides customers with maintenance under a warranty agreement and defers a portion of the revenue from the related printer at the time of the sale based on the relative selling price of those services. After the initial warranty period, the Company offers customers optional maintenance contracts ranging generally from one to three years. Deferred maintenance revenue is recognized ratably, on a straight-line basis, over the period of the service. Deferred revenues are derived mainly from these prepaid maintenance agreements. The Company classifies the portion of deferred revenue not expected to be earned in the subsequent 12 months as long-term. The changes in deferred revenues relating to warranty commitments were as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Balance at beginning of year 17,555 14,100 Revenue deferred in the period 18,454 22,309 Revenue recognized in the period (16,791 ) ) Balance at end of year $ 19,218 $ 17,555 The Company assesses collectability as part of the revenue recognition process. This assessment includes a number of factors such as an evaluation of the creditworthiness of the customer, past due amounts, past payment history, and current economic conditions. If it is determined that collectability cannot be reasonably assured, the Company will defer recognition of revenue until collectability is assured. |
Sales and Value Added Taxes | Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are recorded on a net basis (excluded from revenues) in the Company’s consolidated statements of operations and comprehensive loss. |
Advertising | Advertising Advertising costs are expensed as incurred and were approximately $14.2 million, $19.4 million and $23.5 million, for the years ended December 31, 2017, 2016 and 2015, respectively. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are classified as cost of revenues. |
Research and Development Costs | Research and Development Costs Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software, and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. 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 all or a portion of 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 In accordance with the FASB guidance, 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 largest 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 and restricted stock units (“RSUs”) under the Stratasys Ltd. 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) based on estimated fair values on the grant date. The Company calculates the fair value of stock-based option awards on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The computation of expected volatility is based on historical volatility of the Company’s shares. The expected option term is calculated using the simplified method , as the Company concludes that its historical share option exercise experience does not provide a reasonable basis to estimate its expected option term. The interest rate for periods within the expected term of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The Company’s expected dividend rate is zero since the Company does not currently pay cash dividends on its shares and does not anticipate doing so in the foreseeable future. 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 materially different. Stock-based compensation expense for RSUs is measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes stock-based compensation cost for option awards and RSUs on a straight-line basis over the employee’s requisite service period (primarily a four-year period). |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income (loss) attributable to ordinary shareholders of Stratasys Ltd., including adjustment of redeemable non-controlling interest to its redemption amount, by the weighted average number of ordinary shares (including fully vested RSUs) outstanding for the reporting periods. In computing the Company’s diluted earnings per share, the numerator used in the basic earnings per share computation is adjusted for the dilutive effect, if any, of the Company’s deferred payments liability revaluation to its fair value, as it would have been settled in shares that would result from the assumed issuance of potential ordinary shares. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested RSUs using the treasury stock method, as well as presumed share settlement of the Company’s deferred payments liability and other retention settlements in connection with certain prior acquisitions. |
Restructuring | Restructuring The Company may incur restructuring charges in connection with certain initiatives designed to adjust the Company's cost and operating structure, improve efficiencies across the Company and to better align with the Company’s long-term strategic initiatives 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 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. |
Business Combinations | Business Combinations For transactions in which a set of assets is acquired to disposed, the Company has early adopted a new guidance which provides a new framework that assist in evaluating whether a set of assets should be accounted for as an acquisition of a business or a group of assets. Under the new guidance, the Company first determines whether substantially all of the fair value of a set of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this criteria is met, the set of assets is not considered a business. If this criteria is not met, the Company then evaluates whether the set of assets include at least one substantive process that together significantly contribute to the ability to create outputs in order to meet the requirement to be deemed as s business. If the Company has determined that a transaction should be accounted for as a business combination, it allocates the fair value of consideration transferred in the business combination to the assets acquired, liabilities assumed, and non-controlling interests in the acquired business based on their fair values at the acquisition date. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. The excess of the fair value of the consideration transferred plus the fair value of any non-controlling interest in the acquiree over the fair value of the assets acquired, liabilities assumed in the acquired business is recorded as goodwill. The fair value of the consideration transferred may include a combination of cash, equity securities, earn out payments and deferred payments. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The cumulative impact of revisions during the measurement period is recognized in the reporting period in which the revisions are identified. The Company includes the results of operations of the businesses that it has acquired in its consolidated results prospectively from the respective date of acquisition. The Company records obligations in connection with its business combinations at fair value on the acquisition date. Each reporting period thereafter, the Company revalues earn-out payments and certain deferred payments which are classified as liabilities in the consolidated balance sheets and records the changes in their fair value in the consolidated statements of operations and comprehensive loss. Cash payments to settle the Company’s obligations in connection with its business combination are classified as cash flows used in financing activities up to the amount of the original obligations and Payments made in excess of the amount of the original obligations are classified as cash flows used in operating activities in the Company's consolidated statements of cash flows. Changes in the fair value of the obligations in connection with its business combinations can result from adjustments to the discount rates and the Company’s shares price. These fair value measurements represent Level 3 measurements, as they are based on significant inputs not observable in the market. Significant judgment is required in determining the assumptions utilized as of the acquisition date and for each subsequent measurement period. Actual results may differ from these estimates. Accordingly, changes in the assumptions described above could have an impact on the Company’s consolidated results of operations. |
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. |
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, trade receivables, investment in sales-type leases and foreign currency exchange forward contracts. Most of the Company’s cash and cash equivalents are invested in U.S. dollar instruments with major banks in the U.S., Israel and Europe. Management believes that the credit risk with respect to the financial institutions that hold the Company’s cash and cash equivalents is low. Concentration of credit risk with respect to accounts receivable is limited due to the relatively large number of customers and their wide geographic distribution. In addition, the Company seeks to mitigate its credit exposures to its accounts receivable by credit limits, credit insurance, ongoing credit evaluation and account monitoring procedures. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no net effect on previously reported results of operations. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which expands the activities that may be eligible to qualify for hedge accounting, simplifies the rules for reporting hedging transactions and better portray the economic results of risk management activities in the financial statements. It also amends certain presentation and disclosure requirements and eases certain hedge effectiveness assessment requirements. The new guidance is effective for fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In February 2017, the FASB issued an ASU which applies to the derecognition of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales, unless other specific guidance applies. The new ASU will not apply to the derecognition of businesses or financial assets, or to contracts with customers. According to the new ASU, when an entity transfers its controlling interest in a nonfinancial asset, but retains a non-controlling ownership interest, the entity will measure the retained interest at fair value. This will result in gain or loss recognition upon the sale of a controlling interest in a nonfinancial asset. As a result of these changes, the same accounting treatment will be applied to a transfer of a nonfinancial asset in exchange for the non-controlling ownership interest in another entity or other consideration. Current guidance generally prohibits gain recognition on the retained interest. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In November 2016, the FASB issued an ASU which requires entities to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for annual reporting periods (including interim periods within those annual reporting periods) beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In October 2016, the FASB issued an ASU which eliminates the exception for an intra-entity transfer of an asset other than inventory. This ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of the transfer, rather than when the transferred asset is sold to a third party or otherwise recovered through use. The ASU is effective for annual reporting periods (including interim periods within those annual reporting periods) beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period (as of the first interim period if an entity issues interim financial statements). The new guidance requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which simplifies certain aspects of the accounting for share-based payments, including, among other items, accounting for income taxes and 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, rather than to account for them based on an estimate of expected forfeitures. This ASU became effective for the Company on January 1, 2017. Upon the adoption of this ASU, the Company recorded a cumulative-effect adjustment to its deferred tax asset related to its net operating losses of approximately $5 million as of January 1, 2017 offset with an increase to its valuation allowance with respect to previously unrecognized excess tax benefits. Under the new ASU, excess tax benefits or deficiencies related to stock option exercises and restricted stock unit vesting are recognized in the statement of operations. The adoption of this ASU does not have a material impact on the Company’s results of operations as excess tax benefits generated from the vesting of share-based awards will be recognized in the consolidated statements of operations, but offset with consideration of the valuation allowance in the Company’s US operations. In addition, upon the adoption of this ASU, the Company has elected as an accounting policy to record forfeitures as they occur, using a modified retrospective transition method. The total cumulative-effect adjustment to retained earnings as of January 1, 2017 was immaterial. Prior periods have not been restated. In February 2016, the FASB issued a new ASU which revises lease accounting guidance. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability 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. In addition, this guidance requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. 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, with certain practical expedients. While the Company is currently evaluating the impact of the adoption of the new lease accounting guidance on its consolidated financial statements, the Company expects that the adoption of the new guidance may materially affect the amounts of total assets and total liabilities reported in its consolidated financial statements upon adoption. In January 2016, the FASB issued an ASU which changes to the current measurement model primarily affects all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting), financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new ASU equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) with readily determinable fair values will generally be measured at fair value through earnings. Equity investments that do not have readily determinable fair values may be measured at fair value or at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The new guidance is effective for fiscal year beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption with other amendments related specifically to equity securities without readily determinable fair values applied prospectively. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In May 2014, and in following related amendments, the FASB issued a new comprehensive revenue recognition guidance on revenue from contracts with customers (hereinafter “the Standard”) that will supersede the current revenue recognition guidance. The Standard provides a unified model to determine when and how revenue is recognized. The core principle of the 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 Standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. This Standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption. The Company has developed a project plan to analyze the potential impact the Standard will have on its consolidated financial statements and related disclosures as well as its business processes, systems and controls. This includes reviewing revenue contracts across all revenue streams and evaluating potential differences that would result from applying the requirements under the Standard. The Company will adopt the Standard using the modified retrospective approach in the first quarter of fiscal 2018. The Company has completed its evaluation of the Standard and does not expect a material change in its pattern of revenue recognition. In addition, the Standard requires the deferral and amortization of “incremental” costs incurred to obtain a contract. The primary contract acquisition cost for the Company are sales commissions. Under current GAAP, the Company expenses sales commissions as incurred while under the Standard such costs will be classified as a contract asset and amortized over a period that approximates the timing of revenue recognition on the underlying contracts. The Standard also allows entities to apply certain practical expedients at their discretion. Accordingly, the Company elected the practical expedient to analyze the contract acquisition cost only on uncompleted contracts. The Company will record an asset on the opening balance sheet at January 1, 2018 which is not material to the Company's consolidated financial statements.. From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company ’ s consolidated financial statements upon adoption. |
Earnings Per Share | Earnings per Share Basic earnings per share is computed by dividing net income (loss) attributable to ordinary shareholders of Stratasys Ltd., including adjustment of redeemable non-controlling interest to its redemption amount, by the weighted average number of ordinary shares (including fully vested RSUs) outstanding for the reporting periods. In computing the Company’s diluted earnings per share, the numerator used in the basic earnings per share computation is adjusted for the dilutive effect, if any, of the Company’s deferred payments liability revaluation to its fair value, as it would have been settled in shares that would result from the assumed issuance of potential ordinary shares. The denominator for diluted earnings per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested RSUs using the treasury stock method, as well as presumed share settlement of the Company’s deferred payments liability and other retention settlements in connection with certain prior acquisitions. |
Nature of Operations and Summ24
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Depreciation is computed primarily over the following periods: Useful Life in Years Machinery and equipment 5 - 10 Buildings 25 - 40 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 |
Schedule of useful lives of intangible assets | Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 6 Patents 10 Trademarks and trade names 9 Customer relationships 7 Capitalized software development costs 5 |
Schedule of changes in deferred revenues relating to warranty commitments | The changes in deferred revenues relating to warranty commitments were as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Balance at beginning of year 17,555 14,100 Revenue deferred in the period 18,454 22,309 Revenue recognized in the period (16,791 ) ) Balance at end of year $ 19,218 $ 17,555 |
Acquisitions and Other Signif25
Acquisitions and Other Significant Business Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Future annual principal payments | Future annual principal payments under the Company’s Bank Loan as of December 31, 2017 are as follows: Loan principal amount Year ending December 31, (U.S. $ in thousands) 2018 $ 5,143 2019 5,143 2020 5,143 2021 5,143 2022 5,143 Thereafter 6,571 $ 32,286 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: December 31, 2017 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 90 $ - $ 90 Foreign exchange forward contracts designated as hedging instruments 263 - 263 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (921 ) - (921 ) $ (568 ) $ - $ (568 ) December 31, 2016 (U.S. $ in thousands) Level 2 Level 3 Total Assets: Foreign exchange forward contracts not designated as hedging instruments $ 1,440 $ - $ 1,440 Foreign exchange forward contracts designated as hedging instruments 37 - 37 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (48 ) - (48 ) Foreign exchange forward contracts designated as hedging instruments (61 ) - (61 ) Obligations in connection with acquisitions - (2,619 ) (2,619 ) $ 1,368 $ (2,619 ) $ (1,251 ) |
Schedule of Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs | The following table is a reconciliation of the change for those financial liabilities where fair value measurements are estimated utilizing Level 3 inputs, which consist of obligations in connection with acquisitions: 2017 2016 (U.S. $ in thousands) Fair value as of January 1, $ 2,619 $ 6,991 Settlements (3,997 ) (3,500 ) Change in fair value recognized in earnings 1,378 (872 ) Fair value as of December 31, $ - $ 2,619 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, net consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Finished goods $ 63,234 $ 62,728 Work-in-process 2,271 2,389 Raw materials 50,212 52,404 $ 115,717 $ 117,521 |
Net Investment in Sales-type 28
Net Investment in Sales-type Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Capital [Abstract] | |
Schedule of Net Investment in Sales-Type Leases | The Company’s net investment in sales-type leases consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Future minimum lease payments receivable $ 13,748 $ 25,910 Less allowance for doubtful accounts (1,575 ) (844 ) Net future minimum lease payment receivable 12,173 25,066 Less unearned interest income (526 ) (1,223 ) Net investment in sales-type leases $ 11,647 $ 23,843 |
Schedule of Future Minimum Lease Payments for Sales-type Leases | Future minimum lease payments due from customers under sales-type leases as of December 31, 2017 were as follows: U.S . $ in thousands Year ending December 31, 2018 $ 9,170 2019 3,130 2020 1,218 2021 230 $ 13,748 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following: December 31, December 31, 2017 2016 (U.S. $ in thousands) Machinery and equipment $ 133,656 $ 128,187 Buildings and improvements 131,993 121,970 Computer equipment and software 48,237 48,917 Office equipment, furniture and fixtures 17,893 16,393 Land 19,234 19,591 351,013 335,058 Accumulated depreciation (155,147 ) (131,327 ) 195,866 203,731 Construction work in progress 4,085 4,684 $ 199,951 $ 208,415 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract]. | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2017 and 2016 were as follows: 2017 2016 (U.S. $ in millions) Goodwill as of January 1, $ 385.6 $ 383.9 Translation differences 1.5 1.7 Goodwill as of December 31, $ 387.1 $ 385.6 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Intangible Assets [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following: December 31, 2017 December 31, 2016 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 $ 304,601 $ (220,420 ) $ 84,181 $ 304,766 $ (198,632 ) $ 106,134 Patents 19,708 (14,279 ) 5,429 19,009 (12,257 ) 6,752 Trademarks and trade names 27,248 (18,245 ) 9,003 27,819 (16,849 ) 10,970 Customer relationships 106,203 (63,435 ) 42,768 106,571 (54,258 ) 52,313 Capitalized software development costs 19,541 (18,800 ) 741 19,540 (18,251 ) 1,289 $ 477,301 $ (335,179 ) $ 142,122 $ 477,705 $ (300,247 ) $ 177,458 |
Schedule of Estimated Future Amortization Expense Relating to Definite Life Intangible Assets | As of December 31, 2017, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expense Year ending December 31, (U.S. $ in thousands) 2018 $ 32,523 2019 32,190 2020 31,852 2021 31,281 2022 10,553 Thereafter 3,723 Total $ 142,122 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Company's Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 114,107 $ 139,914 Inventory related 2,584 12,124 Intangibles assets 23,143 38,379 Provision for employee related obligations 1,463 3,568 Stock-based compensation expense 4,887 6,040 Deferred revenue 2,036 3,211 Property, plant and equipment 924 1,140 Allowance for doubtful accounts 646 645 Foreign currency losses 421 587 Research and development credit carry forwards 11,288 9,998 Other items 1,383 1,560 Gross deferred tax assets 162,882 217,166 Valuation allowance (152,062 ) (201,376 ) Total deferred tax assets $ 10,820 $ 15,790 Deferred tax liabilities Intangibles assets $ (13,658 ) $ (17,053 ) Property, plant and equipment (3,581 ) (2,662 ) Total deferred tax liabilities $ (17,239 ) $ (19,715 ) Net deferred tax liabilities $ (6,419 ) $ (3,925 ) |
Schedule of Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets | The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, December 31, 2017 2016 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 650 $ 2,027 Deferred tax liabilities 7,069 5,952 Net deferred tax liabilities $ (6,419 ) $ (3,925 ) |
Schedule of loss before Income Taxes | Loss before income taxes for the years ended December 31, 2017, 2016 and 2015 was as follows: 2017 2016 2015 (U.S. $ in thousands) Domestic $ (98 ) $ (11,783 ) $ (635,721 ) Foreign (29,378 ) (74,576 ) (748,110 ) $ (29,476 ) $ (86,359 ) $ (1,383,831 ) |
Schedule of Components of Income Taxes | The components of income taxes for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 (U.S. $ in thousands) Current Domestic $ 10,574 $ 6,242 $ 4,564 Foreign 1,248 (5,310 ) 8,304 11,822 932 12,868 Deferred Domestic (4,497 ) (9,851 ) (18,607 ) Foreign 1,948 (527 ) (4,581 ) (2,549 ) (10,378 ) (23,188 ) Total income taxes $ 9,273 $ (9,446 ) $ (10,320 ) |
Schedule of Reconciliation of Income Tax Rate | A reconciliation of the statutory income tax rate and the effective tax rate for the years ended December 31, 2017, 2016 and 2015 is set forth below: 2017 2016 2015 Statutory tax rate 24.0 % 25.0 % 26.5 % Approved and Privileged enterprise benefits 15.7 7.0 (0.4 ) Goodwill impairment - - (15.3 ) Revaluation of obligations in connection with acquisitions - - 0.2 US Tax Act enactment (222.5 ) - - Stock compensation expense (5.3 ) (2.4 ) (0.4 ) Tax contingencies (30.8 ) (4.7 ) (0.3 ) Non-deductible acquisition expenses (0.6 ) (0.2 ) (0.1 ) Earning taxed under foreign law 43.3 34.4 1.4 Valuation Allowance 144.4 (57.0 ) (11.0 ) Changes to the prior year’s tax assessment (1.2 ) 7.9 - Other 1.5 0.9 0.1 Effective income tax rate (31.5 ) % 10.9 % 0.7 % |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: 2017 2016 2015 (U.S. $ in thousands) Balance at beginning of year 18,000 $ 13,930 $ 8,552 Additions for tax positions related to the current year 8,777 4,039 4,116 Foreign currency fluctuation 1,242 - - Adjustments for tax positions related to previous years (687 ) 129 1,987 Reduction of reserve for statute expirations (15 ) (98 ) (725 ) Balance at end of year $ 27,317 $ 18,000 $ 13,930 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Annual Lease Payments | Future minimum annual lease payments under all non-cancelable operating leases with an initial term in excess of one year as of December 31, 2017 are as follows: Minimum future operating lease payments Year ending December 31, (U.S. $ in thousands) 2018 $ 9,243 2019 6,941 2020 5,800 2021 4,178 2022 2,314 Thereafter 797 29,273 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Stock Option Activity | A summary of the stock option activity for the year ended December 31, 2017 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of December 31, 2016 2,615,461 $ 37.21 Granted 2,139,698 20.41 Exercised (604,536 ) 10.84 Forfeited (819,670 ) 35.89 Options outstanding as of December 31, 2017 3,330,953 $ 31.53 Options exercisable as of December 31, 2017 1,109,094 $ 49.68 |
Schedule of Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 2017: 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 2017 Life in Years Price 2017 Price $ 2.74 - $ 9.32 14,539 4.08 $ 6.77 $ 14,536 $ 6.77 $ 19.66 - $ 19.66 1,351,385 8.94 19.66 30,339 19.66 $ 19.96 - $ 24.66 887,398 8.57 21.94 282,367 22.55 $ 27.83 - $ 1,077,631 5.52 54.59 781,852 61.45 3,330,953 $ 7.71 $ 31.53 1,109,094 $ 49.68 Aggregate intrinsic value (U.S. $ in thousands) $ 597 $ 201 |
Summary of RSUs activity | A summary of the Company’s RSUs activity for the year ended December 31, 2017 is as follows: Weighted Average Number of RSUs Grant Date Fair Unvested RSUs outstanding as of December 31, 2016 267,756 $ 72.17 Granted 278,514 20.18 Vested (130,884 ) 75.09 Forfeited (113,223 ) 51.10 Unvested RSUs outstanding as of December 31, 2017 302,163 $ 30.88 |
Schedule of Equity classified stock-based compensation | Stock-based compensation expense for stock options and equity classified RSUs included in the Company’s Statements of Operations were allocated as follows: 2017 2016 2015 (U.S. $ in thousands) Cost of sales $ 2,580 $ 2,780 $ 5,381 Research and development, net 3,503 4,768 5,759 Selling, general and administrative 11,639 13,225 18,870 Total stock-based compensation expenses $ 17,722 $ 20,773 $ 30,010 |
Schedule of Accumulated other comprehensive income (loss) | The following tables present the changes in the components of accumulated other comprehensive loss, net of taxes for the years ended December 31, 2017, 2016 and 2015: Year ended December 31, 2017 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2017 $ (24 ) $ (13,455 ) $ (13,479 ) Other comprehensive loss before reclassifications 1,315 5,834 7,149 Amounts reclassified from accumulated other comprehensive loss (961 ) 268 (693 ) Other comprehensive income (loss) 354 6,102 6,456 Balance as of December 31, 2017 $ 330 $ (7,353 ) $ (7,023 ) Year ended December 31, 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 loss before reclassifications 523 (2,788 ) (2,265 ) Amounts reclassified from accumulated other comprehensive loss (440 ) - (440 ) Other comprehensive income (loss) 83 (2,788 ) (2,705 ) Balance as of December 31, 2016 $ (24 ) $ (13,455 ) $ (13,479 ) Year ended December 31, 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 (288 ) (8,263 ) $ (8,551 ) Amounts reclassified from accumulated other comprehensive loss 1,424 - $ 1,424 Other comprehensive income (loss) (8,263 ) (7,127 ) Balance as of December 31, 2015 $ (107 ) $ (10,667 ) $ (10,774 ) |
Employee Stock Option [Member] | |
Schedule of Stock Option Assumptions | The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2017, 2016 and 2015. The following assumptions were applied in determining the options’ fair value on their grant date: 2017 2016 2015 Risk-free interest rate 1.8%-2.2% 1.1%-1.5% 1.6% - 1.9% Expected option term (years) 5.1-6.0 5.2-6.0 6 Expected share price volatility 52.6%-54.0% 53.6%-56.1% 50.1%-53.5% Dividend yield - - - Weighted average grant date fair value $ 11.10 $ 12.36 $ 15.49 |
Derivatives and Hedging Activ35
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet classification and fair values of derivative instruments | The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount December 31, December 31, December 31, December 31, Balance sheet location 2017 2016 2017 2016 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 90 $ 1,440 $ 22,036 $ 39,982 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 263 37 13,169 8,348 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (921 ) (48 ) 65,668 13,273 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities - (61 ) - 7,534 $ (568 ) $ 1,368 $ 100,873 $ 69,137 |
Entity-Wide Disclosure (Tables)
Entity-Wide Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Geographical Area | Net sales by geographic area for the years ended December 31, 2017, 2016 and 2015 were as follows*: Year ended December 31, 2017 2016 2015 (U.S. $ in thousands) Americas (primarily the United States) $ 413,326 $ 411,536 $ 425,569 EMEA 148,279 137,924 148,169 Asia Pacific 106,757 122,998 122,257 $ 668,362 $ 672,458 $ 695,995 *Net sales are attributed to geographic areas based on the location of customer. |
Schedule of Property, Plant and Equipment by Geographical Location | Property, plant and equipment by geographical area were as follows as of December 31, 2017 and 2016: December 31, 2017 2016 (U.S. $ in thousands) Americas (primarily the United States) $ 75,191 $ 91,894 EMEA 120,498 108,978 Asia Pacific 4,262 7,543 $ 199,951 $ 208,415 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net loss per ordinary share attributable to Stratasys Ltd. | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. $ (39,981 ) $ (77,219 ) $ (1,372,835 ) Adjustment of redeemable non-controlling interest to redemption amount - - (1,800 ) Net loss attributable to Stratasys Ltd. for basic loss per share (39,981 ) (77,219 ) (1,374,635 ) Adjustment of deferred payments liability revaluation - (830 ) - Net loss attributable to Stratasys Ltd. for diluted loss per share (39,981 ) (78,049 ) (1,374,635 ) Denominator: Add: Weighted average shares – denominator for basic net loss per share 52,959 52,330 51,592 Add: Shares settlement presumed for deferred payments liability - 252 - Denominator for diluted loss per share 52,959 52,582 51,592 Net loss per share Basic $ (0.75 ) $ (1.48 ) $ (26.64 ) Diluted $ (0.75 ) $ (1.48 ) $ (26.64 ) |
Nature of Operations and Summ38
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |||||
Number of operating segments | item | 1 | ||||
Accounts Receivable and Net investment in sales-type leases | |||||
Allowance for doubtful accounts receivable | $ 1,160 | $ 843 | |||
Allowance for doubtful accounts due to investment in sales-type leases | 1,575 | 844 | |||
Inventories | |||||
Inventory write-downs for obsolescence and excess inventories | 6,300 | 7,700 | |||
Property, Plant and Equipment | |||||
Impairment charges | $ 792,000 | $ 150,400 | |||
Goodwill | |||||
Goodwill impairment | $ 942,408 | ||||
Other Intangible Assets | |||||
Impairment of Intangible Assets (Excluding Goodwill) | 2,200 | 16,900 | 260,300 | ||
Advertising costs | $ 14,200 | 19,400 | $ 23,500 | ||
Research and Development Costs | |||||
Maximum additional tax rate on distribution of dividends | 10.00% | ||||
Settlement percentage | 50.00% | ||||
Vesting period | 4 years | ||||
Stock-Based Compensation | |||||
Expected dividend rate (as a percent) | 0.00% | ||||
Business Combinations | |||||
Maximum measurement period of revision of consideration transferred | 1 year | ||||
Net operating losses | $ 5,000 |
Nature of Operations and Summ39
Nature of Operations and Summary of Significant Accounting Policies (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 25 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 40 years |
Buildings improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Buildings improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer Equipment and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Office equipment, furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 14 years |
Nature of Operations and Summ40
Nature of Operations and Summary of Significant Accounting Policies (Schedule of Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Developed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 6 years |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 10 years |
Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 9 years |
Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 7 years |
Capitalized Software Development Costs [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 5 years |
Nature of Operations and Summ41
Nature of Operations and Summary of Significant Accounting Policies (Schedule of Changes in Deferred Revenues Relating to Warranty Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in deferred revenues | ||
Balance at beginning of year | $ 17,555 | $ 14,100 |
Revenue deferred in the period | 18,454 | 22,309 |
Revenue recognized in the period | (16,791) | (18,854) |
Balance at end of year | $ 19,218 | $ 17,555 |
Acquisitions and Other Signif42
Acquisitions and Other Significant Business Activities (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016 | Jul. 02, 2015 | Apr. 30, 2015ft² | |
Business Acquisition [Line Items] | |||||||||
Purchase of property and equipment | $ 22,308 | $ 45,125 | $ 84,299 | ||||||
Change in fair value of obligations in connection with acquisitions | 1,378 | (872) | (23,671) | ||||||
Area of new building space under construction | ft² | 283,900 | ||||||||
Area of additional building rights | ft² | 235,400 | ||||||||
Restructuring charges | 6,600 | 6,600 | 26,200 | ||||||
Repayments of Short-term Debt | 175,000 | ||||||||
Selling, General and Administrative Expenses [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restructuring charges | 14,800 | ||||||||
Research and Development, Net [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restructuring charges | 1,500 | ||||||||
Cost Of Sales [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restructuring charges | 9,900 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Amount outstanding | $ 250,000 | ||||||||
Maturity term | 5 years | ||||||||
Repayments of Short-term Debt | $ 175,000 | ||||||||
Additional financial expense on termination of short-term debt | $ 2,700 | ||||||||
Workforce reductions [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restructuring charges | 10,400 | ||||||||
Rehovot Property [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase of property and equipment | $ 68,200 | ||||||||
Bank Loan [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from secured debt | $ 10,000 | $ 26,000 | |||||||
Maturity date | Dec. 31, 2023 | ||||||||
Interest rate | 3.35% | 3.35% | |||||||
Proceeds from lines of credit | $ 10,000 | ||||||||
Credit Line [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from secured debt | $ 24,000 | ||||||||
Third party entity [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage | 10.00% | ||||||||
Third party entity [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage | 40.00% | ||||||||
MakerBot [Member] | Facility Closing [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restructuring charges | $ 15,800 | ||||||||
Rapid Technologies GmbH ("RTC") [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage | 100.00% |
Acquisitions and Other Signif43
Acquisitions and Other Significant Business Activities (Future annual principal payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Acquisitions And Other Significant Business Activities Future Annual Principal Payments Details | |
2,018 | $ 5,143 |
2,019 | 5,143 |
2,020 | 5,143 |
2,021 | 5,143 |
2,022 | 5,143 |
Thereafter | 6,571 |
Total | $ 32,286 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - Solid Concepts Inc [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Ordinary shares issued as consideration for business acquisition | 149,327 | 152,633 | 118,789 |
Value of ordinary shares issued as consideration for business acquisition | $ 3,500 | $ 3,100 | $ 4,100 |
Cash given as consideration for business acquisition | $ 500 | 400 | 900 |
Realized gain due to revaluation of the deferred payments in connection with acquisition | 100 | 6,200 | |
Unrealized gain due to revaluation of the deferred payments in connection with acquisition | $ 700 | $ 17,500 |
Fair Value Measurement (Schedul
Fair Value Measurement (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset (liabilities) | $ (568) | $ (1,251) |
Foreign Exchange Future [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 263 | 37 |
Derivative liabilities | (61) | |
Foreign Exchange Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 90 | 1,440 |
Derivative liabilities | (921) | (48) |
Obligations in connection with acquisitions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2,619) | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset (liabilities) | (568) | 1,368 |
Level 2 [Member] | Foreign Exchange Future [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 263 | 37 |
Derivative liabilities | (61) | |
Level 2 [Member] | Foreign Exchange Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 90 | 1,440 |
Derivative liabilities | (921) | (48) |
Level 2 [Member] | Obligations in connection with acquisitions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | ||
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset (liabilities) | (2,619) | |
Level 3 [Member] | Foreign Exchange Future [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | ||
Derivative liabilities | ||
Level 3 [Member] | Foreign Exchange Future [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | ||
Derivative liabilities | ||
Level 3 [Member] | Obligations in connection with acquisitions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ (2,619) |
Fair Value Measurement (Sched46
Fair Value Measurement (Schedule of Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs) (Details)) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Fair Value Measurements of Assets and Liabilities Utilizing Level 3 Inputs [Roll Forward] | ||
Fair value as of January 1 | $ 2,619 | $ 6,991 |
Settlements | (3,997) | (3,500) |
Change in fair value recognized in earnings | 1,378 | (872) |
Fair value as of December 31 | $ 2,619 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 63,234 | $ 62,728 |
Work-in-process | 2,271 | 2,389 |
Raw materials | 50,212 | 52,404 |
Total Inventory | $ 115,717 | $ 117,521 |
Net Investment in Sales-type 48
Net Investment in Sales-type Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases, Capital [Abstract] | |||
Interest income for sales-type leases | $ 700 | $ 1,000 | $ 1,000 |
Net Investment in Sales-type 49
Net Investment in Sales-type Leases (Schedule of Company's Net Investment in Sales-type Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Leases, Capital [Abstract] | ||
Future minimum lease payments receivable | $ 13,748 | $ 25,910 |
Less allowance for doubtful accounts | (1,575) | (844) |
Net future minimum lease payment receivable | 12,173 | 25,066 |
Less unearned interest income | (526) | (1,223) |
Net investment in sales-type leases | $ 11,647 | $ 23,843 |
Net Investment in Sales-type 50
Net Investment in Sales-type Leases (Schedule of Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases, Capital [Abstract] | |
2,018 | $ 9,170 |
2,019 | 3,130 |
2,020 | 1,218 |
2,021 | 230 |
Capital Leases Future Minimum Payments Receivable | $ 13,748 |
Property, Plant and Equipment51
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 351,013 | $ 335,058 | |
Accumulated depreciation | (155,147) | (131,327) | |
Property, plant and equipment, less capital work-in-progress | 195,866 | 203,731 | |
Construction work in progress | 4,085 | 4,684 | |
Property, plant and equipment, net | 199,951 | 208,415 | |
Depreciation | 31,600 | 33,800 | $ 33,400 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 133,656 | 128,185 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 131,993 | 121,971 | |
Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 48,237 | 48,917 | |
Office equipment, furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 17,893 | 16,393 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 19,234 | $ 19,591 |
Goodwill (Schedule of Changes i
Goodwill (Schedule of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Abstract]. | ||
Goodwill as of January 1 | $ 385,629 | $ 383,853 |
Translation differences | 1,500 | 1,700 |
Goodwill as of December 31 | $ 387,108 | $ 385,629 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||||
Non-tax deductible impairment charge | $ 792,000 | $ 150,400 | |||
Goodwill | $ 387,108 | $ 385,629 | $ 383,853 | ||
Goodwill impairment charges | 942,408 | ||||
Stratasys-Objet reporting unit [Member] | Goodwill [Member] | |||||
Goodwill [Line Items] | |||||
Expected cash flow period | 5 years | ||||
Growth rate (as a percent) | 3.10% | ||||
Discount rate (as a percent) | 14.00% | ||||
Percentage of decrease in terminal year growth rate | 1.00% | ||||
Percentage of increase in terminal year growth rate | 1.00% | ||||
Percentage of fair value exceeding carrying value of reporting units | 7.00% | 5.00% | |||
Goodwill | $ 387,000 | $ 386,000 | |||
Change in fair value due to 1% decrease in terminal year growth rate | 48,000 | ||||
Change in fair value due to 1% increase in terminal year growth rate | $ 88,000 | ||||
MakerBot [Member] | |||||
Goodwill [Line Items] | |||||
Non-tax deductible impairment charge | $ 384,000 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 477,301 | $ 477,705 |
Accumulated Amortization | (335,179) | (300,247) |
Net Book Value | 142,122 | 177,458 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 304,601 | 304,766 |
Accumulated Amortization | (220,420) | (198,632) |
Net Book Value | 84,181 | 106,134 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,708 | 19,009 |
Accumulated Amortization | (14,279) | (12,257) |
Net Book Value | 5,429 | 6,752 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,248 | 27,819 |
Accumulated Amortization | (18,245) | (16,849) |
Net Book Value | 9,003 | 10,970 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 106,203 | 106,571 |
Accumulated Amortization | (63,435) | (54,258) |
Net Book Value | 42,768 | 52,313 |
Capitalized Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,541 | 19,540 |
Accumulated Amortization | (18,800) | (18,251) |
Net Book Value | $ 741 | $ 1,289 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 2,200 | ||
Amortization of intangible assets | 35,000 | $ 59,000 | $ 75,000 |
Decrease in amortization expense | 20,500 | ||
Decrease in net loss | $ 18,300 | ||
Decrease in basic and diluted loss per share | $ 0.35 | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 16,900 | 260,300 | |
Other Intangible Assets [Member] | Cost Of Sales [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 1,800 | 191,200 | |
Other Intangible Assets [Member] | Selling, General and Administrative Expenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 15,100 | $ 68,800 | |
In-process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges of definite-life intangibles assets | 1,000 | ||
Impairment charges | $ 18,200 | ||
Finite-Lived Intangible Assets [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Discount rate (as a percent) | 13.00% | ||
Finite-Lived Intangible Assets [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Discount rate (as a percent) | 14.00% |
Other Intangible Assets (Sche56
Other Intangible Assets (Schedule of Estimated Amortization Expense Relating to Intangible Assets) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Other Intangible Assets [Abstract] | |
2,018 | $ 32,523 |
2,019 | 32,190 |
2,020 | 31,852 |
2,021 | 31,281 |
2,022 | 10,553 |
Thereafter | 3,723 |
Net book value of other intangible assets | $ 142,122 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |
Unrecognized tax benefits | $ 28,037 | $ 28,037 | $ 18,000 | $ 13,930 | $ 8,552 | |||
Accrued interest and penalties related to uncertain tax positions | 942 | $ 942 | ||||||
Statutory tax rates | 24.00% | 25.00% | 26.50% | |||||
Privileged enterprise benefits rate | 24.00% | |||||||
Tax-exempt income | $ 229,400 | |||||||
Change in corporate tax rate, amount incurred | $ 22,900 | |||||||
Reduced Corporate Tax Rate | 7.50% | |||||||
Decrease In Tax Rates In Year Thereafter | 16.00% | |||||||
Special Preferred Enterprise Of Reduced Tax Rates 1 | 20.00% | 16.00% | 16.00% | |||||
Special Preferred Enterprise Of Reduced Tax Rates 2 | 9.00% | |||||||
Operating losses carryforwards | $ 5,000 | |||||||
Deferred tax asset | 114,107 | $ 114,107 | 139,914 | |||||
Valuation allowance of deferred tax assets | 152,062 | $ 152,062 | 201,376 | |||||
Valuation allowance and deferred tax assets tax rate | 21.00% | |||||||
Change in valuation allowance | 65,600 | |||||||
Change in deferred tax assets | 65,600 | $ (2,404) | $ 10,378 | $ 19,129 | ||||
Foreign ownership percentage basis for determining tax rate | 90.00% | |||||||
Special Preferred Enterprise Tax Exempt Period | 10 years | |||||||
Approved enterprise and beneficiary enterprise income tax exempt or taxable rate | 10.00% | |||||||
Dividend withholding tax rate | 15.00% | |||||||
Persentage of limitation uses | 80.00% | |||||||
Israel [Member] | ||||||||
Statutory tax rates | 24.00% | 25.00% | 26.50% | 26.50% | ||||
Israel [Member] | Subsequent Event [Member] | ||||||||
Statutory tax rates | 23.00% | |||||||
United States [Member] | ||||||||
Statutory tax rates | 21.00% | |||||||
HONG KONG | ||||||||
Statutory tax rates | 16.50% | |||||||
GERMANY | ||||||||
Statutory tax rates | 28.00% | |||||||
Minimum [Member] | ||||||||
Reduced Corporate Tax Rate | 21.00% | |||||||
Foreign ownership percentage basis for determining tax rate | 10.00% | |||||||
Maximum [Member] | ||||||||
Reduced Corporate Tax Rate | 35.00% | |||||||
Foreign ownership percentage basis for determining tax rate | 25.00% | |||||||
Dividend withholding tax rate | 30.00% | |||||||
Subsidiaries [Member] | ||||||||
Operating losses carryforwards | 486,000 | $ 486,000 | $ 381,000 | |||||
Deferred tax asset | 114,000 | 114,000 | $ 140,000 | |||||
Deferred tax liability | $ 125,500 | $ 125,500 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Company's Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Tax losses carry forwards | $ 114,107 | $ 139,914 |
Inventory related | 2,584 | 12,124 |
Intangibles assets | 23,143 | 38,379 |
Provision for employee related obligations | 1,463 | 3,568 |
Stock-based compensation expense | 4,887 | 6,040 |
Deferred revenue | 2,036 | 3,211 |
Property, plant and equipment | 924 | 1,140 |
Allowance for doubtful accounts | 646 | 645 |
Foreign currency losses | 421 | 587 |
Research and development credit carry forwards | 11,288 | 9,998 |
Other items | 1,383 | 1,560 |
Gross deferred tax assets | 162,882 | 217,166 |
Valuation allowance | (152,062) | (201,376) |
Total deferred tax assets | 10,820 | 15,790 |
Deferred tax liabilities | ||
Intangibles assets | (13,658) | (17,053) |
Property, plant and equipment | (3,581) | (2,662) |
Total deferred tax liabilities | (17,239) | (19,715) |
Net deferred tax liabilities | $ (6,419) | $ (3,925) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets and liabilities | ||
Deferred tax assets (under "Other non-current assets") | $ 650 | $ 2,027 |
Deferred tax liabilities | 7,069 | 5,952 |
Net deferred tax liabilities | $ (6,419) | $ (3,925) |
Income Taxes (Schedule of Loss
Income Taxes (Schedule of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (98) | $ (11,783) | $ (635,721) |
Foreign | (29,378) | (74,576) | (748,110) |
Loss before income taxes | $ (29,476) | $ (86,359) | $ (1,383,831) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Domestic | $ 10,574 | $ 6,242 | $ 4,564 |
Foreign | 1,248 | (5,310) | 8,304 |
Current Income Tax Expense Benefit | 11,822 | 932 | 12,868 |
Deferred: | |||
Domestic | (4,497) | (9,851) | (18,607) |
Foreign | 1,948 | (527) | (4,581) |
Deferred Income Tax Expense Benefit | (2,549) | (10,378) | (23,188) |
Total income taxes | $ 9,273 | $ (9,446) | $ (10,320) |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 24.00% | 25.00% | 26.50% |
Approved and Privileged enterprise benefits | 15.70% | 7.00% | (0.40%) |
Goodwill impairment | (15.30%) | ||
Revaluation of obligations in connection with acquisitions | 0.20% | ||
US Tax Act enactment | (222.50%) | ||
Stock compensation expense | (5.30%) | (2.40%) | (0.40%) |
Tax contingencies | (30.80%) | (4.70%) | (0.30%) |
Non-deductible acquisition expenses | (0.60%) | (0.20%) | (0.10%) |
Earning taxed under foreign law | 43.30% | 34.40% | 1.40% |
Valuation allowance | 144.40% | (57.00%) | (11.00%) |
Changes to the prior year's tax assessment | (1.20%) | 7.90% | |
Other | 1.50% | 0.90% | 0.10% |
Effective income tax rate | (31.50%) | 10.90% | 0.70% |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 18,000 | $ 13,930 | $ 8,552 |
Additions for tax positions related to the current year | 8,777 | 4,039 | 4,116 |
Foreign currency fluctuation | 1,242 | ||
Additions for tax positions related to previous years | 129 | 1,987 | |
Subtractions for tax positions related to previous years | (687) | ||
Reduction of reserve for statute expirations | (15) | (98) | (725) |
Balance at end of year | $ 28,037 | $ 18,000 | $ 13,930 |
Commitments and Contingencies64
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 10,000 | $ 14,000 | $ 14,300 |
Patent law-based claim | (a) 20% of the benefits, revenues and /or savings generated by our company in the past and in the future, including the rise in the value of our company, as determined in the merger with Stratasys Inc., which took place in December 2012; (b) 20% of the gross profit generated by our company in the past and 9% of the gross profit produced and that will be produced by our company; (c) 20% of the gross profit generated by our company in the past and the relative share of the former Objet segment of our company in the total gross profit produced and that will be produced by our company; or (d) 20% of the value of the service inventions at issue. The former employee further sought an order of accounts. Our company rejects the claims that serve as a basis for the proceeding and intends to defend against them vigorously. |
Commitments and Contingencies65
Commitments and Contingencies (Schedule of Annual Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 9,243 |
2,019 | 6,941 |
2,020 | 5,800 |
2,021 | 4,178 |
2,022 | 2,314 |
Thereafter | 797 |
Total operating lease payments | $ 29,273 |
Equity (Share Capital) (Narrati
Equity (Share Capital) (Narrative) (Details) - ₪ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Common stock, par value | ₪ 0.01 | ₪ 0.01 |
Ordinary shares, issued | 53,631 | 52,639 |
Ordinary shares, outstanding | 53,631 | 52,639 |
Equity (Stock-based Compensatio
Equity (Stock-based Compensation Plans) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 03, 2017 | |
Vesting period | 4 years | |||
Weighted average remaining contractual life | 5 years 6 months | |||
Total intrinsic value of options exercised | $ 7,200 | $ 1,500 | $ 4,600 | |
Unvested number of shares | 2,200,000 | |||
Unrecognized compensation cost | $ 22,300 | |||
Weighted average period over which unrecognized compensation cost will be recognized | 2 years 10 months 25 days | |||
Restricted Stock [Member] | ||||
Value of equity classified RSUs vested | $ 6,800 | |||
Unrecognized compensation cost | $ 2,900 | |||
Weighted average period over which unrecognized compensation cost will be recognized | 2 years 9 months 18 days | |||
Employee Stock Option [Member] | ||||
Expected option term | 6 years | |||
2012 Plan [Member] | ||||
Expected option term | 10 years | |||
Equity Incentive Plan, shares authorized | 1,900,000 | |||
Increase of shares reserved | 500,000 | |||
2012 Plan [Member] | Employee Stock Option [Member] | ||||
Vesting period | 4 years |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Option Activity) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Options | |
Options Outstanding as of December 31, 2016 | shares | 2,615,461 |
Granted | shares | 2,139,698 |
Exercised | shares | (604,536) |
Forfeited | shares | (819,670) |
Options Outstanding as of December 31, 2017 | shares | 3,330,953 |
Options exercisable as of December 31, 2017 | shares | 1,109,094 |
Weighted Average Exercise Price | |
Options Outstanding as of December 31, 2016 | $ / shares | $ 37.21 |
Granted | $ / shares | 20.41 |
Exercised | $ / shares | 10.84 |
Forfeited | $ / shares | 35.89 |
Options Outstanding as of December 31, 2017 | $ / shares | 31.53 |
Options exercisable as of December 31, 2017 | $ / shares | $ 49.68 |
Equity (Summary of Stock Option
Equity (Summary of Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number Outstanding | 3,330,953 | 2,615,461 |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 7 years 8 months 16 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 31.53 | $ 37.21 |
Options Exercisable, Number Exercisable | 1,109,094 | |
Options Exercisable, Weighted-Average Exercise Price | $ 49.68 | |
Options Outstanding, Aggregate intrinsic value | $ 597 | |
Options Exercisable, Aggregate intrinsic value | $ 201 | |
$2.74 - $9.32 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | $ 2.74 | |
Range of Exercise Prices (Upper) | $ 9.32 | |
Options Outstanding, Number Outstanding | 14,539 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 4 years 29 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 6.77 | |
Options Exercisable, Number Exercisable | 14,536 | |
Options Exercisable, Weighted-Average Exercise Price | $ 6.77 | |
$19.66 - $19.66 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 19.66 | |
Range of Exercise Prices (Upper) | $ 19.66 | |
Options Outstanding, Number Outstanding | 1,351,385 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 8 years 11 months 8 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 19.66 | |
Options Exercisable, Number Exercisable | 30,339 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.66 | |
$19.96 - $24.66 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 19.96 | |
Range of Exercise Prices (Upper) | $ 24.66 | |
Options Outstanding, Number Outstanding | 887,398 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 8 years 6 months 25 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 21.94 | |
Options Exercisable, Number Exercisable | 282,367 | |
Options Exercisable, Weighted-Average Exercise Price | $ 22.55 | |
$27.83 - $120.51 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices (Lower) | 27.83 | |
Range of Exercise Prices (Upper) | $ 120.51 | |
Options Outstanding, Number Outstanding | 1,077,631 | |
Options Outstanding, Weighted-Average Remaining Contractual Life in Years | 5 years 6 months 7 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 54.89 | |
Options Exercisable, Number Exercisable | 781,852 | |
Options Exercisable, Weighted-Average Exercise Price | $ 61.45 |
Equity (Schedule of Stock Opt70
Equity (Schedule of Stock Options Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 1.80% | 1.10% | 1.60% |
Risk-free interest rate, Maximum | 2.20% | 1.50% | 1.90% |
Expected option term (years) | 6 years | ||
Expected share price volatility, Minimum | 52.60% | 53.60% | 50.10% |
Expected share price volatility, Maximum | 54.00% | 56.10% | 53.50% |
Dividend yield | |||
Weighted average grant date fair value | $ 11.10 | $ 12.36 | $ 15.49 |
Minimum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term (years) | 5 years 1 month 6 days | 5 years 2 months 12 days | |
Maximum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term (years) | 6 years | 6 years |
Equity (Summary of RSUs activit
Equity (Summary of RSUs activity) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of RSUs | |
Unvested RSUs outstanding as of December 31, 2016 | shares | 267,756 |
Granted | shares | 278,514 |
Vested | shares | (130,884) |
Forfeited | shares | (113,223) |
Unvested RSUs outstanding as of December 31, 2017 | shares | 302,163 |
Weighted Average Grant Date Fair Value | |
Unvested RSUs outstanding as of December 31, 2016 | $ / shares | $ 72.17 |
Granted | $ / shares | 20.18 |
Vested | $ / shares | 75.09 |
Forfeited | $ / shares | 51.10 |
Unvested RSUs outstanding as of December 31, 2017 | $ / shares | $ 30.88 |
Equity (Schedule of Stock-based
Equity (Schedule of Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expenses | $ 17,722 | $ 20,773 | $ 30,010 |
Cost Of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expenses | 2,580 | 2,780 | 5,381 |
Research and Development, Net [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expenses | 3,503 | 4,768 | 5,759 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expenses | $ 11,639 | $ 13,225 | $ 18,870 |
Equity (Schedule of Accumulated
Equity (Schedule of Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | $ (13,479) | $ (10,774) | $ (3,647) |
Other comprehensive income loss before reclassifications | 7,149 | (2,265) | (8,551) |
Amounts reclassified from accumulated other comprehensive income loss | (693) | (440) | 1,424 |
Other comprehensive income (loss) | 6,456 | (2,705) | (7,127) |
Balance as of December 31 | (7,023) | (13,479) | (10,774) |
Net unrealized gain (loss) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | (24) | (107) | (1,243) |
Other comprehensive income loss before reclassifications | 1,315 | 523 | (288) |
Amounts reclassified from accumulated other comprehensive income loss | (961) | (440) | 1,424 |
Other comprehensive income (loss) | 354 | 83 | 1,136 |
Balance as of December 31 | 330 | (24) | (107) |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of January 1 | (13,455) | (10,667) | (2,404) |
Other comprehensive income loss before reclassifications | 5,834 | (2,788) | (8,263) |
Amounts reclassified from accumulated other comprehensive income loss | 268 | ||
Other comprehensive income (loss) | 6,102 | (2,788) | (8,263) |
Balance as of December 31 | $ (7,353) | $ (13,455) | $ (10,667) |
Derivatives and Hedging Activ74
Derivatives and Hedging Activities (Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ (568) | $ 1,368 |
Notional amount | 100,873 | 69,137 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 87,700 | |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 13,200 | 15,900 |
Other current assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 90 | 1,440 |
Notional amount of derivative asset | 22,036 | 39,982 |
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 263 | 37 |
Notional amount of derivative asset | 13,169 | 8,348 |
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 | (921) | (48) |
Notional amount of derivative liability | 65,668 | 13,273 |
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 | (61) | |
Notional amount of derivative liability | $ 7,534 |
Derivatives and Hedging Activ75
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||
Gain (loss) on derivative instrument | $ 5,000 | $ 2,100 |
Notional amount | 100,873 | 69,137 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 87,700 | |
Foreign Exchange Contract [Member] | Cash Flow Hedge [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 13,200 | $ 15,900 |
Entity-Wide Disclosure (Schedul
Entity-Wide Disclosure (Schedule of Net Sales by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 668,362 | $ 672,458 | $ 695,995 |
Americas (primarily the United States) [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 413,326 | 411,536 | 425,569 |
Europe and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 148,279 | 137,924 | 148,169 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 106,757 | $ 122,998 | $ 122,257 |
Entity-Wide Disclosure (Sched77
Entity-Wide Disclosure (Schedule of Property, Plant and Equipment by Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 199,951 | $ 208,415 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 75,191 | 91,894 |
Europe and Middle East [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 120,498 | 108,978 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 4,262 | 7,543 |
Israel [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 101,400 | $ 92,100 |
Retirement Plans and Employee78
Retirement Plans and Employee Rights Upon Termination (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Severance liabilities | $ 3,900,000 | $ 3,700,000 | |
Employee contribution percentage | 4.00% | ||
Employer contributions matching amount | $ 3,500 | ||
Percent of employee contribution matched by the Company | 50.00% | ||
Employer contribution amount | $ 3,700,000 | 3,800,000 | $ 4,200,000 |
Future benefits to employees | $ 3,000,000 | $ 2,700,000 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Calculation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Net loss attributable to Stratasys Ltd. | $ (39,981) | $ (77,219) | $ (1,372,835) |
Adjustment of redeemable non-controlling interest to redemption amount | (1,800) | ||
Net loss attributable to Stratasys Ltd. for basic loss per share | (39,981) | (77,219) | (1,374,635) |
Adjustment of deferred payments liability revaluation | (830) | ||
Net loss attributable to Stratasys Ltd. for diluted loss per share | $ (39,981) | $ (78,049) | $ (1,374,635) |
Denominator: | |||
Add: Weighted average shares - denominator for basic net loss per share | 52,959 | 52,330 | 51,592 |
Add: Shares settlement presumed for deferred payments liability | 252 | ||
Denominator for diluted loss per share | 52,959 | 52,582 | 51,592 |
Net loss per share | |||
Basic | $ (0.75) | $ (1.48) | $ (26.64) |
Diluted | $ (0.75) | $ (1.48) | $ (26.64) |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares, excluded from computation of diluted net loss per share | 3,800,000 | 3,100,000 | 3,800,000 |
VALUATION AND QUALIFYING ACCO81
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reserve for bad debts and allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balances at beginning of period | $ 1,687 | $ 1,357 | $ 1,477 |
Charged to costs and expenses | 1,665 | 991 | 514 |
Charged to other accounts | |||
Charged to income | 617 | 661 | 634 |
Charged to other accounts | |||
Balances at end of period | 2,735 | 1,687 | 1,357 |
Valuation allowances on deferred tax assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balances at beginning of period | 201,376 | 152,115 | |
Charged to costs and expenses | 22,998 | 49,261 | 152,115 |
Charged to other accounts | |||
Charged to income | 65,572 | ||
Charged to other accounts | 6,740 | ||
Balances at end of period | $ 152,062 | $ 201,376 | $ 152,115 |