Stratasys (SSYS) 6-K 1 Nov 18 2018 Q3 Condensed Consolidated Financial Statements Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	STRATASYS LTD.
Entity Central Index Key	1,517,396
Current Fiscal Year End Date	--12-31
Trading Symbol	SSYS
Document Type	6-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 348,887	$ 328,761
Accounts receivable, net	129,477	132,671
Inventories	118,075	115,717
Net investment in sales-type leases	3,489	7,208
Prepaid expenses	5,932	7,696
Other current assets	41,870	22,858
Total current assets	647,730	614,911
Non-current assets
Net investment in sales-type leases - long-term	2,038	4,439
Property, plant and equipment, net	191,437	199,951
Goodwill	386,728	387,108
Other intangible assets, net	117,448	142,122
Other non-current assets	20,428	31,219
Total non-current assets	718,079	764,839
Total assets	1,365,809	1,379,750
Current liabilities
Accounts payable	38,944	39,849
Current portion of long-term debt	5,143	5,143
Accrued expenses and other current liabilities	34,257	30,041
Accrued compensation and related benefits	32,382	35,356
Deferred revenues	53,102	52,908
Total current liabilities	163,828	163,297
Non-current liabilities
Long-term debt	23,286	27,143
Deferred tax liabilities	1,836	7,069
Deferred revenues - long-term	16,009	15,200
Other non-current liabilities	30,459	32,899
Total non-current liabilities	71,590	82,311
Total liabilities	235,418	245,608
Contingencies (see note 12)
Redeemable non-controlling interests	931	1,635
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 53,810 thousands shares and 53,631 thousands shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	146	145
Additional paid-in capital	2,675,762	2,663,274
Accumulated other comprehensive loss	(8,815)	(7,023)
Accumulated deficit	(1,537,633)	(1,523,906)
Equity attributable to Stratasys Ltd.	1,129,460	1,132,490
Non-controlling interests		17
Total equity	1,129,460	1,132,507
Total liabilities and equity	$ 1,365,809	$ 1,379,750

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Thousands	Sep. 30, 2018	Dec. 31, 2017
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	53,810	53,631
Common stock, shares outstanding	53,810	53,631

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net sales
Total net sales	$ 162,049	$ 155,867	$ 486,118	$ 489,019
Cost of sales
Total cost of sales	83,121	80,628	247,893	253,508
Gross profit	78,928	75,239	238,225	235,511
Operating expenses
Research and development, net	25,786	21,767	74,585	69,652
Selling, general and administrative	49,792	60,345	168,684	190,406
Total operating expenses	75,578	82,112	243,269	260,058
Operating income (loss)	3,350	(6,873)	(5,044)	(24,547)
Financial income (expense), net	(39)	(305)	(114)	380
Income (loss) before income taxes	3,311	(7,178)	(5,158)	(24,167)
Income tax expenses	304	2,571	1,110	5,205
Share in losses of associated companies	(3,752)	(489)	(11,185)	(1,006)
Net loss	(745)	(10,238)	(17,453)	(30,378)
Net loss attributable to non-controlling interests	(66)	(81)	(182)	(377)
Net loss attributable to Stratasys Ltd.	$ (679)	$ (10,157)	$ (17,271)	$ (30,001)
Net loss per ordinary share attributable to Stratasys Ltd. - basic and diluted	$ (0.01)	$ (0.19)	$ (0.34)	$ (0.57)
Weighted average ordinary shares outstanding - basic and diluted	53,769	53,012	53,716	52,827
Comprehensive loss
Net loss	$ (745)	$ (10,238)	$ (17,453)	$ (30,378)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(234)	1,953	(1,445)	5,103
Unrealized gains (losses) on derivatives designated as cash flow hedges	522	(86)	(347)	100
Other comprehensive income, net of tax	288	1,867	(1,792)	5,203
Comprehensive loss	(457)	(8,371)	(19,245)	(25,175)
Less: comprehensive loss attributable to non-controlling interests	(66)	(81)	(182)	(377)
Comprehensive loss attributable to Stratasys Ltd.	(391)	(8,290)	(19,063)	(24,798)
Products [Member]
Net sales
Total net sales	109,647	108,401	331,967	344,509
Cost of sales
Total cost of sales	48,640	49,840	147,120	159,043
Services [Member]
Net sales
Total net sales	52,402	47,466	154,151	144,510
Cost of sales
Total cost of sales	$ 34,481	$ 30,788	$ 100,773	$ 94,465

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (17,453)	$ (30,378)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	45,902	49,791
Stock-based compensation	11,706	14,133
Foreign currency transaction loss (gain)	3,450	(8,678)
Deferred income taxes	(3,733)	(3,086)
Share in losses of associated companies	11,185	855
Non-cash gain from divestitures	(7,932)
Other non-cash items, net	2,577	2,802
Change in cash attributable to changes in operating assets and liabilities:
Accounts receivable, net	1,681	3,218
Inventories	(7,723)	(5,984)
Net investment in sales-type leases	6,120	9,500
Other current assets and prepaid expenses	(2,980)	(1,048)
Other non-current assets	(1,075)	540
Accounts payable	(289)	3,472
Other current liabilities	3,330	(2,678)
Deferred revenues	2,504	1,706
Other non-current liabilities	(2,222)	6,706
Net cash provided by operating activities	45,048	40,871
Cash flows from investing activities
Purchase of property and equipment	(18,908)	(15,879)
Investment in unconsolidated entities	(13,015)	(2,548)
Net proceeds from divestitures	8,998
Purchase of intangible assets	(1,114)	(1,227)
Proceeds from sale of plant and property	4,105
Other investing activities	(229)	(113)
Net cash used in investing activities	(20,163)	(19,767)
Cash flows from financing activities
Repayment of current portion of long-term debt	(3,857)	(2,786)
Payments of obligations in connection with acquisitions		(1,476)
Acquisition of redeemable non-controlling interests	(1,500)
Proceeds from exercise of stock options	2,379	2,632
Net cash used in financing activities	(2,978)	(1,630)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,801)	3,011
Net change in cash, cash equivalents and restricted cash	20,106	22,485
Cash, cash equivalents and restricted cash, beginning of period	329,359	280,623
Cash, cash equivalents and restricted cash, end of period	349,465	303,108
Supplemental disclosures of cash flow information:
Transfer of fixed assets to inventory	380	1,326
Transfer of inventory to fixed assets	$ 1,859	$ 4,248

Business Description and Basis

Business Description and Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation	Note 1. Business Description and Basis of Presentation Stratasys Ltd. (collectively with its subsidiaries, the “Company”) is a 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 condensed consolidated interim financial statements include the accounts of Stratasys Ltd. and its subsidiaries. All intercompany accounts and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. The consolidated interim financial information herein is unaudited; however, such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. The reader is referred to the audited consolidated financial statements and notes thereto for the year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s Annual Report on Form 20-F for such year on February 28, 2018.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements
New Accounting Pronouncements	Note 2. New Accounting Pronouncements Accounting Pronouncements Adopted in the Current Period In February 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“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 does 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 in the respective nonfinancial asset, 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. Previous guidance generally prohibited gain recognition on the retained interest. The Company adopted this guidance on January 1, 2018, which did not impact its consolidated financial position or net income for the current period. 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 Company adopted this guidance in the first quarter of 2018 utilizing the retrospective transition method. The adoption of this ASU did not 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 Company adopted this guidance on January 1, 2018, utilizing the modified retrospective method, resulting in an increase of $2.1 million in retained earnings with a corresponding effect on deferred taxes balances for the cumulative-effect adjustments as of the date of adoption. In January 2016, the FASB issued an ASU which effects changes to the current measurement model that primarily affect 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 an identical or a similar investment of the same issuer. The Company adopted this guidance on January 1, 2018, which has not impacted its consolidated financial position or results of operations for the current period. In May 2014, the FASB issued a new comprehensive revenue recognition guidance on revenue from contracts with customers, as well as certain related amendments (hereinafter the “Standard”), which superseded the previous 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. In addition, the Standard requires the deferral and amortization of incremental costs incurred to obtain a contract. The primary contract acquisition costs for the Company are sales commissions. Under previous GAAP, the Company expensed sales commissions as incurred while under the Standard certain of such costs are classified as an asset (which is presented under other non-current assets in the Company's consolidated balance sheets) 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 adopted the Standard using the modified retrospective approach on January 1, 2018, resulting in an increase of $1.4 million in retained earnings with a corresponding effect on other non-current assets for the cumulative-effect adjustments recorded due to the deferral and amortization of incremental costs incurred to obtain a contract as of the date of adoption. Refer also to Note 6 for further details. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued a new ASU which expands the activities that may be eligible to qualify for hedge accounting, simplifies the rules for reporting hedging transactions and better portrays 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 years 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 2016, the FASB issued a new ASU which supersedes the current 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 years 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.

Business Activities

Business Activities	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Business Activities	Note 3. Business Activities During 2018, the Company, jointly with certain employees and one of the Company's board members formed an entity for one of its research and development projects (“Evolve”), which received subsequent investments from certain additional strategic investors. Evolve is considered a variable interest entity. The Company does not consolidate the results of operations of Evolve, commencing March 2018, as the Company no longer holds the power to direct the activities that most significantly affect the economic performance of Evolve. Following this transaction, the Company transferred cash, long-lived assets and the related IP into Evolve and retained a minority equity interest in Evolve. As a result of this transaction, the Company recorded $1.6 million of non-cash charges under its operating expenses and $5.0 million under share in losses of associated companies due to the write-off of its related in-process research and development project. During the first quarter of 2018, as part of its continuous efforts to rationalize its operating model, the Company sold one of its facilities (which included land and building) in Eden Prairie, Minnesota for total consideration of approximately $3.7 million in cash. As a result, the Company recognized a gain of approximately $1.6 million included in selling, general and administrative expenses. During the third quarter of 2018, the Company sold Solidscape, a wholly-owned subsidiary focused on SCP, ink-jetting technology to produce wax-like patterns for lost-wax casting. As a result of this divestiture, the Company recognized a gain of $7.0 million, net of transaction costs, under selling, general and administrative expenses, during the third quarter of 2018. During the fourth quarter of 2018, the Company sold its minority interests in LPW Technology ("LPW") to a third party. This transaction had no effect on the Company's consolidated statements of operations and net income for the third quarter of 2018. The Company's investment in LPW is recorded under current assets on the Company's consolidated balance sheets as of September 30, 2018.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Note 4. Inventories Inventories consisted of the following: September 30, December 31, 2018 2017 U.S. $ in thousands Finished goods $ 59,406 $ 63,234 Work-in-process 2,928 2,271 Raw materials 55,741 50,212 $ 118,075 $ 115,717

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note 5. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of the Company’s goodwill for the nine-months ended September 30, 2018 were as follows: U.S. $ in millions Goodwill as of January 1, 2018 $ 387.1 Translation differences (0.4 ) Goodwill as of September 30, 2018 $ 386.7 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 its Stratasys-Objet reporting unit exceeded its carrying amount by approximately 7%, with a carrying amount of $387 million of goodwill assigned to this reporting unit. When evaluating the fair value of its Stratasys-Objet reporting unit the Company used a discounted cash flow model which utilized Level 3 measures that represent unobservable inputs into the valuation method. Key assumptions used to determine the estimated fair value include: (a) expected cash flows for five years following the assessment date which were based on, among other factors, expected revenue growth, costs to produce, operating profit margins and estimated capital needs; (b) an estimated terminal value that utilized a terminal year growth rate of 3.1% that was determined based on the growth prospects of the reporting unit; and (c) a discount rate of 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 the Company's estimates, the Company 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 the Stratasys-Objet reporting unit by approximately $48 million and $88 million, respectively. Based on the Company’s assessment as of December 31, 2017, no goodwill was determined to be impaired. During the third quarter of 2018 the Company reaffirmed that no significant events or circumstances occurred that contradict the assumptions and data used in the annual impairment test performed in the fourth quarter of 2017. Determining the fair value of the 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 deterioration in the business climate or operating results, significant decline in the Company's share price, changes in management’s business strategy or downward adjustments to the Company's cash flows projections, warrant further interim impairment testing. Other Intangible Assets Other intangible assets consisted of the following: September 30, 2018 December 31, 2017 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,643 $ (231,654 ) $ 67,989 $ 304,601 $ (220,420 ) $ 84,181 Patents 10,317 (5,931 ) 4,386 19,708 (14,279 ) 5,429 Trademarks and trade names 27,253 (18,730 ) 8,523 27,248 (18,245 ) 9,003 Customer relationships 104,188 (68,122 ) 36,066 106,203 (63,435 ) 42,768 Capitalized software development costs 19,541 (19,057 ) 484 19,541 (18,800 ) 741 $ 460,942 $ (343,494 ) $ 117,448 $ 477,301 $ (335,179 ) $ 142,122 Amortization expense relating to intangible assets for the three-month periods ended September 30, 2018 and 2017 was approximately $8.0 million and $8.8 million, respectively. Amortization expense relating to intangible assets for the nine-month periods ended September 30, 2018 and 2017 was approximately $24.2 million and $26.1 million, respectively. The decrease in the Company's other intangible assets carrying amount, net of impairment and the corresponding accumulated amortization resulted from Solidscape divestment, which is described in Note 2. As of September 30, 2018, the estimated amortization expense relating to intangible assets currently subject to amortization for each of the following periods was as follows: Remaining 3 months of 2018 $ 8,122 2019 31,995 2020 31,659 2021 31,099 2022 9,993 Thereafter 4,580 Total 117,448

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Revenue Recognition [Abstract]
Revenue Recognition	Note 6. Revenue Recognition Effective January 1, 2018, the Company adopted the new accounting standard related to the recognition of revenue in contracts with customers using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Accordingly, results for reporting periods beginning after January 1, 2018 are presented under the new accounting standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the previous revenue recognition guidance. The impact to revenue and results of operations for the three-month and nine-month periods ended September 30, 2018 compared to the same periods in 2017 was not material . The Company derives revenues from sales of additive manufacturing systems, consumables and services. The Company sells its products directly through its sales force and independent sales agents and indirectly through authorized resellers. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services to the end customer or to the reseller. The amount of consideration is usually at fixed price at the contract inception. Taxes assessed by various government entities, such as sales, use and value-added taxes, collected at the time of sale are excluded from revenue. Shipping and handling costs billed to customers are included in revenue. Revenue from products, which consist of systems and consumables, is recognized when the customer has obtained control of the goods, in most cases at a point in time based on the shipping terms. The Company recognizes revenue on sales to resellers when the reseller has economic substance apart from the Company and the reseller is considered the principal for the transaction with the end-user customer. Service revenue derives from service type warranty and from the Company’s direct manufacturing parts services. Revenue from service type warranty under a contract is recognized ratably on a straight-line basis over the time of the service, as control is transferred over time or as services are performed if not under contract. For direct manufacturing parts, control is transferred at a point in time, usually upon shipment of the parts. For multiple performance obligations arrangements, such as selling a system with a service type warranty, the Company accounts for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. In assessing collectability as part of the revenue recognition process, the Company considers a number of factors in the evaluation of the creditworthiness of the customer, including past due amounts, payment history and financial condition. In some cases where collectability is not assured, payment terms are set partially or entirely as prepayment or customers may be required to furnish letters of credit. Contract Assets and Contract Liabilities Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of September 30, 2018. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 U.S. $ in thousands Deferred revenue* 69,111 68,108 * Includes $16.0 million and $15.2 million under long term deferred revenue in the Company's consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively. The Company provides customers with an initial service type warranty, usually for a period of one to three years, and defers a portion of the revenue from the related printer at the time of the sale. The Company also offers customers an option to purchase an additional service type warranty via a contract ranging generally from one to three years. Deferred revenues are derived mainly from these service type warranty contracts. Revenue recognized in the nine months ended September 30, 2018 that was included in deferred revenue balance as of January 1, 2018 was $44.2 million. The Company expects to recognize revenue from deferred revenues in amounts of approximately $53.1 million in the next twelve months, $10.3 million in the following twelve-month period and $5.7 million thereafter. Incremental Costs of Obtaining a Contract Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer. The majority of the sales commissions are not subject to capitalization as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. The Company determined the period of benefit by taking into consideration customer contracts including renewals, the technology and other factors. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. The Company recorded the cumulative effect of deferred commission as an adjustment to the opening balance of retained earnings in an amount of $1.4 million. As of September 30, 2018, the deferred commission amounted to $2.5 million.

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Loss Per Share	Note 7. Loss Per Share The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and nine months ended September 30, 2018 and 2017: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 In thousands, except per share amounts In thousands, except per share amounts Numerator: Net loss attributable to Stratasys Ltd. $ (679 ) $ ) $ ) $ (30,001 ) Adjustment of redeemable non-controlling interest to redemption amount - - (935 ) - Net loss attributable to Stratasys Ltd. for basic and diluted loss per share (679 ) (10,157 ) (18,206 ) (30,001 ) Denominator: Weighted average shares – denominator for basic and diluted net loss per share 53,769 53,012 53,716 52,827 Net loss per share attributable to Stratasys Ltd. Basic $ (0.01 ) $ (0.19 ) $ (0.34 ) $ (0.57 ) Diluted $ (0.01 ) $ (0.19 ) $ (0.34 ) $ (0.57 ) The computation of diluted net loss per share excluded share awards of 4.2 million shares for the three and nine months ended each of September 30, 2018 and 2017, because their inclusion would have had an anti-dilutive effect on the diluted net loss per share.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes The Company had an effective tax rate of 9.2% for the three-month periods ended September 30, 2018 compared to a negative effective tax rate of 35.8% for the three-month periods ended September 30, 2017, and a negative effective tax rate of 21.5% for the nine-month periods ended September 30, 2018 and 2017. The Company’s effective tax rate as of September 30, 2018 was primarily impacted by the geographic mix of its earnings and losses.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 9. 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 is not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy is categorized into three Levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial instruments measured at fair value The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, on its consolidated balance sheets: September 30, 2018 December 31, 2017 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 701 $ 90 Foreign exchange forward contracts designated as hedging instruments 172 263 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (149 ) ) Foreign exchange forward contracts designated as hedging instruments (189 ) - $ 535 $ (568 ) 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.

Derivative instruments and hedg

Derivative instruments and hedging activities	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments and hedging activities	Note 10. Derivative instruments and hedging activities Since the Company conducts its operations globally, it 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 currency exchange rates. The Company enters into transactions involving foreign currency exchange derivative financial instruments. The Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative transactions for trading purposes. 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”), Euro, Korean Won, Chinese Yuan and the Japanese Yen. The gains and losses on the hedging instruments partially 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 September 30, December 31, September 30, December 31, Balance sheet location 2018 2017 2018 2017 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 701 $ 90 $ 55,410 $ 22,036 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 172 263 11,714 13,169 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (149 ) ) Liability derivatives -Foreign exchange contracts, designated as hedging instruments Accrued expenses and other current liabilities (189 ) - 13,303 - $ 535 $ (568 ) $ 109,872 $ 100,873 As of September 30, 2018, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $84.9 million, and were used to reduce foreign currency exposures. With respect to such derivatives, gain of $0.6 million and loss of $1.4 million were recognized under financial income, net for the three-month periods ended September 30, 2018 and 2017, respectively, and gain of $1.5 million and loss of $4.1 million were recognized under financial income, net for the nine-month periods ended September 30, 2018 and 2017, respectively. Such gains or losses partially offset the foreign currencies revaluation changes of the balance sheet items. These foreign currencies revaluation changes are also recognized under financial income, net. As of September 30, 2018, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of $25.0 million into NIS. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in NIS. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. These contracts mature through September 2019.

Equity

Equity	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Equity	Note 11. Equity a. Stock-based compensation plans Stock-based compensation expenses for equity-classified stock options and restricted stock units ("RSUs") were allocated as follows for the three and nine month periods ended each of September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 U.S $ in thousands U.S $ in thousands Cost of sales $ 351 $ 642 $ 1,180 $ 2,084 Research and development, net 928 905 2,608 2,843 Selling, general and administrative 2,734 3,351 7,918 9,206 Total stock-based compensation expenses $ $ $ 11,706 $ A summary of the Company’s stock option activity for the nine months ended September 30, 2018 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2018 3,330,953 $ 31.53 Granted 50,000 20.48 Exercised (87,158 ) 19.41 Forfeited (527,286 ) 38.29 Options outstanding as of September 30, 2018 2,766,509 $ 30.42 Options exercisable as of September 30, 2018 1,476,128 $ 38.30 The outstanding options generally have a term of ten years from the grant date. Options granted become exercisable over the vesting period, which is normally a four-year period beginning on the grant date, subject to the employee’s continuous service to the Company. The fair value of stock options is determined using the Black-Scholes model. During the nine-month periods ended September 30, 2018 and 2017, the Company issued 87,158 shares and 196,003 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $1.7 million and $2.6 million for the nine-month periods ended September 30, 2018 and 2017, respectively. As of September 30, 2018, the unrecognized compensation cost of $11.2 million related to all unvested, equity-classified stock options is expected to be recognized as an expense over a weighted-average period of 2.2 years. A summary of the Company’s RSUs activity for the nine months ended September 30, 2018 is as follows: Weighted Average Number of RSUs Grant Date Fair Value Unvested RSUs outstanding as of January 1, 2018 302,163 $ 30.88 Granted 1,306,825 19.69 Forfeited (70,831 ) 44.36 Vested (91,911 ) 27.73 Unvested RSUs outstanding as of September 30, 2018 1,446,246 $ The fair value of RSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant. As of September 30, 2018, the unrecognized compensation cost of $22.5 million related to RSUs is expected to be recognized as expense over a weighted-average period of 2.9 years. b. Accumulated other comprehensive loss The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2018 and 2017, respectively: Nine months ended September 30, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive income (loss) before reclassifications ) (1,540 ) (2,273 ) Amounts reclassified from accumulated other comprehensive loss 386 95 481 Other comprehensive loss (347 ) (1,445 ) (1,792 ) Balance as of September 30, 2018 $ (17 ) $ (8,798 ) $ (8,815 ) Nine months ended September 30, 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 income before reclassifications 5,103 6,097 Amounts reclassified from accumulated other comprehensive loss (894 ) - (894 ) Other comprehensive income 100 5,103 5,203 Balance as of September 30, 2017 $ 76 $ (8,352 ) $ (8,276 )

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 12. Contingencies Patent Law-Based Claim On November 23, 2017, a former employee, whose employment had been terminated by the Company in 2008 and who had previously unsuccessfully filed a suit against the Company, brought an additional proceeding against the Company under Section 134 of the Israeli Patent Law seeking compensation and royalties for service inventions he invented while he served as an employee of the Company. In this new proceeding, the former employee claims to be entitled to receive royalties in an amount equal to: (a) 20% of the benefits, revenues and /or savings generated by the Company in the past and in the future, including the rise in the value of the Company, as determined in the merger with Stratasys Inc., which took place in December 2012; (b) 20% of the gross profit generated by the Company in the past and 9% of the gross profit produced and that will be produced by the Company; (c) 20% of the gross profit generated by the Company in the past and the relative share of the former Objet entity of the Company in the total gross profit produced and that will be produced by the Company; or (d) 20% of the value of the service inventions at issue. The former employee further sought an order of accounts. The Company rejects the claims that serve as a basis for the proceeding and intends to defend against them vigorously. 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.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: September 30, December 31, 2018 2017 U.S. $ in thousands Finished goods $ 59,406 $ 63,234 Work-in-process 2,928 2,271 Raw materials 55,741 50,212 $ 118,075 $ 115,717

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill	Changes in the carrying amount of the Company’s goodwill for the nine-months ended September 30, 2018 were as follows: U.S. $ in millions Goodwill as of January 1, 2018 $ 387.1 Translation differences (0.4 ) Goodwill as of September 30, 2018 $ 386.7
Schedule of Other Intangible Assets	Other intangible assets consisted of the following: September 30, 2018 December 31, 2017 Carrying Amount, Net Carrying Amount, Net Net of Accumulated Book Net of Accumulated Book Impairment Amortization Value Impairment Amortization Value U.S. $ in thousands Developed technology $ 299,643 $ (231,654 ) $ 67,989 $ 304,601 $ (220,420 ) $ 84,181 Patents 10,317 (5,931 ) 4,386 19,708 (14,279 ) 5,429 Trademarks and trade names 27,253 (18,730 ) 8,523 27,248 (18,245 ) 9,003 Customer relationships 104,188 (68,122 ) 36,066 106,203 (63,435 ) 42,768 Capitalized software development costs 19,541 (19,057 ) 484 19,541 (18,800 ) 741 $ 460,942 $ (343,494 ) $ 117,448 $ 477,301 $ (335,179 ) $ 142,122
Schedule of Estimated Amortization Expense Relating to Intangible Assets	As of September 30, 2018, the estimated amortization expense relating to intangible assets currently subject to amortization for each of the following periods was as follows: Remaining 3 months of 2018 $ 8,122 2019 31,995 2020 31,659 2021 31,099 2022 9,993 Thereafter 4,580 Total 117,448

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue Recognition [Abstract]
Schedule of Changes in Deferred Revenue	The Company's deferred revenues as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 U.S. $ in thousands Deferred revenue* 69,111 68,108 * Includes $16.0 million and $15.2 million under long term deferred revenue in the Company's consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively.

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Computations of Numerator and Denominator of Basic and Diluted Income (Loss) Per Share	The following table presents the numerator and denominator of the basic and diluted net loss per share computations for the three and nine months ended September 30, 2018 and 2017: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 In thousands, except per share amounts In thousands, except per share amounts Numerator: Net loss attributable to Stratasys Ltd. $ (679 ) $ ) $ ) $ (30,001 ) Adjustment of redeemable non-controlling interest to redemption amount - - (935 ) - Net loss attributable to Stratasys Ltd. for basic and diluted loss per share (679 ) (10,157 ) (18,206 ) (30,001 ) Denominator: Weighted average shares – denominator for basic and diluted net loss per share 53,769 53,012 53,716 52,827 Net loss per share attributable to Stratasys Ltd. Basic $ (0.01 ) $ (0.19 ) $ (0.34 ) $ (0.57 ) Diluted $ (0.01 ) $ (0.19 ) $ (0.34 ) $ (0.57 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Carried at Fair Value on a Recurring Basis	The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, on its consolidated balance sheets: September 30, 2018 December 31, 2017 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 701 $ 90 Foreign exchange forward contracts designated as hedging instruments 172 263 Liabilities: Foreign exchange forward contracts not designated as hedging instruments (149 ) ) Foreign exchange forward contracts designated as hedging instruments (189 ) - $ 535 $ (568 )

Derivative instruments and he_2

Derivative instruments and hedging activities (Tables)	9 Months Ended
	Sep. 30, 2018
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 September 30, December 31, September 30, December 31, Balance sheet location 2018 2017 2018 2017 U.S. $ in thousands Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 701 $ 90 $ 55,410 $ 22,036 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 172 263 11,714 13,169 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (149 ) ) Liability derivatives -Foreign exchange contracts, designated as hedging instruments Accrued expenses and other current liabilities (189 ) - 13,303 - $ 535 $ (568 ) $ 109,872 $ 100,873

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Share-based Compensation Expense	Stock-based compensation expenses for equity-classified stock options and restricted stock units ("RSUs") were allocated as follows for the three and nine month periods ended each of September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 U.S $ in thousands U.S $ in thousands Cost of sales $ 351 $ 642 $ 1,180 $ 2,084 Research and development, net 928 905 2,608 2,843 Selling, general and administrative 2,734 3,351 7,918 9,206 Total stock-based compensation expenses $ $ $ 11,706 $
Summary of Stock Options Activity	A summary of the Company’s stock option activity for the nine months ended September 30, 2018 is as follows: Weighted Average Number of Options Exercise Price Options outstanding as of January 1, 2018 3,330,953 $ 31.53 Granted 50,000 20.48 Exercised (87,158 ) 19.41 Forfeited (527,286 ) 38.29 Options outstanding as of September 30, 2018 2,766,509 $ 30.42 Options exercisable as of September 30, 2018 1,476,128 $ 38.30
Summary of RSUs activity	A summary of the Company’s RSUs activity for the nine months ended September 30, 2018 is as follows: Weighted Average Number of RSUs Grant Date Fair Value Unvested RSUs outstanding as of January 1, 2018 302,163 $ 30.88 Granted 1,306,825 19.69 Forfeited (70,831 ) 44.36 Vested (91,911 ) 27.73 Unvested RSUs outstanding as of September 30, 2018 1,446,246 $
Schedule of Accumulated other comprehensive income (loss)	The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2018 and 2017, respectively: Nine months ended September 30, 2018 Net unrealized gain Foreign currency (loss) on cash flow translation hedges adjustments Total U.S. $ in thousands Balance as of January 1, 2018 $ 330 $ (7,353 ) $ (7,023 ) Other comprehensive income (loss) before reclassifications ) (1,540 ) (2,273 ) Amounts reclassified from accumulated other comprehensive loss 386 95 481 Other comprehensive loss (347 ) (1,445 ) (1,792 ) Balance as of September 30, 2018 $ (17 ) $ (8,798 ) $ (8,815 ) Nine months ended September 30, 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 income before reclassifications 5,103 6,097 Amounts reclassified from accumulated other comprehensive loss (894 ) - (894 ) Other comprehensive income 100 5,103 5,203 Balance as of September 30, 2017 $ 76 $ (8,352 ) $ (8,276 )

New Accounting Pronouncements (

New Accounting Pronouncements (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
New Accounting Pronouncements
Increase in retained earnings effect on deferred taxs balance for cumulative-effect adjustment	$ 2.1
Increase in retained earnings effect on other non-current assets for the cumulative-effect adjustments	$ 1.4

Business Activities (Details)

Business Activities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Gain on sale of facility		$ 7,932
Evolve [Member]
Business Acquisition [Line Items]
Non-cash Charges		1,600
Share losses of associated companies due to the write-off of in-process research and development project		5,000
Eden Prairie [Member]
Business Acquisition [Line Items]
Total consideration	$ 3,700
Gain on sale of facility	$ 1,600
Solidscape [Member]
Business Acquisition [Line Items]
Gain on sale of facility		$ 7,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 59,406	$ 63,234
Work-in-process	2,928	2,271
Raw materials	55,741	50,212
Total Inventory	$ 118,075	$ 115,717

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization of intangible assets	$ 8	$ 8.8	$ 24.2	$ 26.1
Stratasys-Objet reporting unit [Member]
Expected cash flow period			5 years
Growth rate (as a percent)			3.10%
Discount rate (as a percent)			14.00%
Percentage of carrying amount exceeds	7.00%		7.00%
Allocated goodwill	$ 387		$ 387
Hypothetical decrease in the growth rate of 1%	48		48
Hypothetical increase in the growth rate of 1%	$ 88		$ 88

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill as of January 1, 2018	$ 387,108
Translation differences	(400)
Goodwill as of September 30, 2018	$ 386,728

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 460,942	$ 477,301
Accumulated Amortization	(343,494)	(335,179)
Net Book Value	117,448	142,122
Developed technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	299,643	304,601
Accumulated Amortization	(231,654)	(220,420)
Net Book Value	67,989	84,181
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,317	19,708
Accumulated Amortization	(5,931)	(14,279)
Net Book Value	4,386	5,429
Trademarks and trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	27,253	27,248
Accumulated Amortization	(18,730)	(18,245)
Net Book Value	8,523	9,003
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	104,188	106,203
Accumulated Amortization	(68,122)	(63,435)
Net Book Value	36,066	42,768
Capitalized software development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,541	19,541
Accumulated Amortization	(19,057)	(18,800)
Net Book Value	$ 484	$ 741

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense Relating to Intangible Assets) (Details) $ in Thousands	Sep. 30, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 3 months of 2018	$ 8,122
2,019	31,995
2,020	31,659
2,021	31,099
2,022	9,993
Thereafter	4,580
Net Book Value	$ 117,448

Revenue Recognition (Narrative)

Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Deferred Revenue Arrangement [Line Items]
Revenue recognized	$ 44,200
Deferred revenue noncurrent portion	16,009	$ 15,200
Increase in retained earnings effect on other non-current assets for the cumulative-effect adjustments	1,400
Deferred sales commissions	2,500
Next 12 Months [Member]
Deferred Revenue Arrangement [Line Items]
Revenue recognized	53,100
Second Year [Member]
Deferred Revenue Arrangement [Line Items]
Revenue recognized	10,300
There after [Member]
Deferred Revenue Arrangement [Line Items]
Revenue recognized	$ 5,700

Revenue Recognition (Schedule o

Revenue Recognition (Schedule of Changes in deferred revenue) (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Revenue Recognition [Abstract]
Deferred revenue	[1]	$ 69,111	$ 68,108
[1]	Includes $16.0 million and $15.2 million under long term deferred revenue in the Company's consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively.

Loss Per Share (Narrative) (Det

Loss Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of net loss per share	4.2	4.2	4.2	4.2

Loss Per Share (Schedule of Com

Loss Per Share (Schedule of Computations of Numerator and Denominator of Basic and Diluted Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net loss attributable to Stratasys Ltd.	$ (679)	$ (10,157)	$ (17,271)	$ (30,001)
Adjustment of redeemable non-controlling interest to redemption amount			(935)
Net loss attributable to Stratasys Ltd. for basic and diluted loss per share	$ (679)	$ (10,157)	$ (18,206)	$ (30,001)
Denominator:
Weighted average shares - denominator for basic and diluted net loss per share	53,769	53,012	53,716	52,827
Net loss per share attributable to Stratasys Ltd.
Basic	$ (0.01)	$ (0.19)	$ (0.34)	$ (0.57)
Diluted	$ (0.01)	$ (0.19)	$ (0.34)	$ (0.57)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate, Continuing Operations	9.20%	(35.80%)	(21.50%)	(21.50%)

Fair Value Measurement (Schedul

Fair Value Measurement (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 535
Derivative liabilities		$ (568)
Foreign Exchange Future [Member] | Recurring [Member] | Not Designated as Hedging Instrument [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	701	90
Derivative liabilities	(149)	(921)
Foreign Exchange Future [Member] | Recurring [Member] | Designated as Hedging Instrument [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	172	263
Derivative liabilities	$ (189)

Derivative instruments and he_3

Derivative instruments and hedging activities (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivatives, Fair Value [Line Items]
Notional amount of derivative asset	$ 84.9		$ 84.9
Gain (Loss) on derivative instrument	0.6	$ (1.4)	1.5	$ (4.1)
Other current assets [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Conversion To NIS [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative asset	$ 25		$ 25

Derivatives and Hedging Activit

Derivatives and Hedging Activities (Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Fair value derivative asset	$ 535
Notional amount of derivative asset	84,900
Fair value		$ (568)
Notional amount	109,872	100,873
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative asset	701	90
Notional amount of derivative asset	55,410	22,036
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative liability	(149)	(921)
Notional amount of derivative liability	29,445	65,668
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member] | Cash Flow Hedge [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative asset	172	263
Notional amount of derivative asset	11,714	13,169
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Accrued expenses and other current liabilities [Member] | Cash Flow Hedge [Member]
Derivatives, Fair Value [Line Items]
Fair value derivative liability	(189)
Notional amount of derivative liability	$ 13,303

Equity (Narrative) (Details)

Equity (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options exercised	87,158	196,003
Increase in equity	$ 1.7	$ 2.6
Stock option term	10 years
Vesting period	4 years
Unrecognized compensation cost	$ 11.2
Weighted average period for recognition	2 years 2 months 12 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 22.5
Weighted average period for recognition	2 years 10 months 25 days

Equity (Schedule of Stock-based

Equity (Schedule of Stock-based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	$ 4,013	$ 4,898	$ 11,706	$ 14,133
Cost of sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	351	642	1,180	2,084
Research and development, net [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	928	905	2,608	2,843
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expenses	$ 2,734	$ 3,351	$ 7,918	$ 9,206

Equity (Schedule of Stock Optio

Equity (Schedule of Stock Option Activity) (Details) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Number of Options
Balance, beginning	3,330,953
Granted	50,000
Exercised	(87,158)	(196,003)
Forfeited	(527,286)
Balance, ending	2,766,509
Exercisable	1,476,128
Weighted Average Exercise Price
Balance, beginning	$ 31.53
Granted	20.48
Exercised	19.41
Forfeited	38.29
Balance, ending	30.42
Exercisable	$ 38.30

Equity (Summary of RSUs activit

Equity (Summary of RSUs activity) (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of RSUs
Unvested RSUs outstanding, beginning | shares	302,163
Granted | shares	1,306,825
Forfeited | shares	(70,831)
Vested | shares	(91,911)
Unvested RSUs outstanding, ending | shares	1,446,246
Weighted Average Grant Date Fair Value
Unvested RSUs outstanding, beginning | $ / shares	$ 30.88
Granted | $ / shares	19.69
Forfeited | $ / shares	44.36
Vested | $ / shares	27.73
Unvested RSUs outstanding, ending | $ / shares	$ 20.07

Equity (Schedule of Accumulated

Equity (Schedule of Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	$ (7,023)	$ (13,479)
Other comprehensive income (loss) before reclassifications	(2,273)	6,097
Amounts reclassified from accumulated other comprehensive loss	481	(894)
Other comprehensive income (loss)	(1,792)	5,203
Balance as of end of period	(8,815)	(8,276)
Net unrealized gain (loss) on cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	330	(24)
Other comprehensive income (loss) before reclassifications	(733)	994
Amounts reclassified from accumulated other comprehensive loss	386	(894)
Other comprehensive income (loss)	(347)	100
Balance as of end of period	(17)	76
Foreign currency translation adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of beginning of period	(7,353)	(13,455)
Other comprehensive income (loss) before reclassifications	(1,540)	5,103
Amounts reclassified from accumulated other comprehensive loss	95
Other comprehensive income (loss)	(1,445)	5,103
Balance as of end of period	$ (8,798)	$ (8,352)