Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | STRATASYS LTD. |
Trading Symbol | SSYS |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 65,676,945 |
Amendment Flag | false |
Entity Central Index Key | 0001517396 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35751 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, City or Town | Rehovot |
Entity Address, Address Line One | 1 Holtzman Street |
Entity Address, Address Line Two | Science Park |
Entity Address, Address Line Three | P.O. Box 2496 |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 76124 |
Title of 12(b) Security | Ordinary Shares, par value NIS 0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1309 |
Auditor Name | Kesselman & Kesselman |
Auditor Location | Tel-Aviv, Israel |
Business Contact | |
Document Information Line Items | |
Entity Address, City or Town | Eden Prairie |
Entity Address, Address Line One | 7665 Commerce Way |
Entity Address, Postal Zip Code | 55344 |
Contact Personnel Name | Richard Garrity |
City Area Code | 952 |
Local Phone Number | 937-3000 |
Contact Personnel Email Address | rich.garrity@stratasys.com |
Entity Address, State or Province | MN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 243,179 | $ 272,092 |
Short-term deposits | 259,000 | 27,000 |
Accounts receivable, net of allowance for credit losses of $0.5 million and $0.9 million as of December 31, 2021 and December 31, 2020, respectively | 129,382 | 106,068 |
Inventories | 129,147 | 131,672 |
Prepaid expenses | 6,871 | 6,717 |
Other current assets | 33,123 | 16,943 |
Total current assets | 800,702 | 560,492 |
Non-current assets | ||
Property, plant and equipment, net | 203,295 | 201,232 |
Goodwill | 65,144 | 35,694 |
Other intangible assets, net | 152,244 | 131,569 |
Operating lease right-of-use assets | 14,651 | 21,298 |
Long-term investments | 28,667 | 24,268 |
Other non-current assets | 12,519 | 15,449 |
Total non-current assets | 476,520 | 429,510 |
Total assets | 1,277,222 | 990,002 |
Current liabilities | ||
Accounts payable | 51,976 | 16,987 |
Accrued expenses and other current liabilities | 55,358 | 31,061 |
Accrued compensation and related benefits | 44,684 | 25,659 |
Deferred revenues - short-term | 51,174 | 49,165 |
Operating lease liabilities - short term | 7,276 | 9,282 |
Total current liabilities | 210,468 | 132,154 |
Non-current liabilities | ||
Deferred revenues - long-term | 21,133 | 14,227 |
Deferred income taxes | 7,341 | 42 |
Operating lease liabilities - long term | 7,693 | 12,567 |
Contingent consideration | 53,478 | 37,400 |
Other non-current liabilities | 21,095 | 34,017 |
Total non-current liabilities | 110,740 | 98,253 |
Total liabilities | 321,208 | 230,407 |
Commitments and contingencies (see note 10) | ||
Redeemable non-controlling interests | 227 | |
Equity | ||
issued and outstanding at December 31, 2021 and 2020, respectively | 182 | 155 |
Additional paid-in capital | 3,012,481 | 2,753,955 |
Accumulated other comprehensive loss | (8,771) | (8,846) |
Accumulated deficit | (2,047,878) | (1,985,896) |
Total equity | 956,014 | 759,368 |
Total liabilities and equity | $ 1,277,222 | $ 990,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) shares in Thousands | Dec. 31, 2021USD ($)shares | Dec. 31, 2021₪ / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020₪ / shares |
Statement of Financial Position [Abstract] | ||||
Accounts receivable, net of allowance for credit losses (in Dollars) | $ | $ 500 | $ 900 | ||
Ordinary shares, nominal value (in New Shekels per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, authorized | 180,000 | 180,000 | ||
Ordinary shares, issued | 65,677 | 56,617 | ||
Ordinary shares, outstanding | 65,677 | 56,617 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues | ||||
Total net sales | [1] | $ 607,219 | $ 520,817 | $ 636,080 |
Cost of revenues | ||||
Total cost of sales | 347,141 | 301,423 | 322,388 | |
Gross profit | 260,078 | 219,394 | 313,692 | |
Operating expenses | ||||
Research and development, net | 88,303 | 84,012 | 94,253 | |
Selling, general and administrative | 250,937 | 205,224 | 231,138 | |
Goodwill impairment | 386,154 | |||
Total operating expenses | 339,240 | 675,390 | 325,391 | |
Operating loss | (79,162) | (455,996) | (11,699) | |
Gain from step acquisition | 14,400 | |||
Financial income (expenses), net | (2,075) | (575) | 4,555 | |
Loss before income taxes | (66,837) | (456,571) | (7,144) | |
Income tax benefit (expenses) | 3,906 | 16,394 | (3,523) | |
Share in profits (losses) of associated companies | 949 | (3,939) | (412) | |
Net loss | (61,982) | (444,116) | (11,079) | |
Net loss attributable to non-controlling interests | (395) | (230) | ||
Net loss attributable to Stratasys Ltd. | $ (61,982) | $ (443,721) | $ (10,849) | |
Net loss per share attributable to Stratasys Ltd. - basic and diluted (in Dollars per share) | $ (0.98) | $ (8.08) | $ (0.2) | |
Weighted average shares outstanding - basic and diluted (in Shares) | 63,471 | 54,918 | 54,260 | |
Comprehensive Loss | ||||
Net loss | $ (61,982) | $ (444,116) | $ (11,079) | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (3,170) | 533 | (580) | |
Unrealized gains (losses) on derivatives designated as cash flow hedge | 3,245 | (1,663) | 617 | |
Other comprehensive income (loss), net of tax | 75 | (1,130) | 37 | |
Comprehensive loss | (61,907) | (445,246) | (11,042) | |
Less: Comprehensive loss attributable to non-controlling interests | (395) | (230) | ||
Comprehensive loss attributable to Stratasys Ltd. | (61,907) | (444,851) | (10,812) | |
Products | ||||
Revenues | ||||
Total net sales | 417,557 | 339,782 | 430,746 | |
Cost of revenues | ||||
Total cost of sales | 210,941 | 171,235 | 182,430 | |
Services | ||||
Revenues | ||||
Total net sales | 189,662 | 181,035 | 205,334 | |
Cost of revenues | ||||
Total cost of sales | $ 136,200 | $ 130,188 | $ 139,958 | |
[1] | Revenues are attributed to geographic areas based on the location of customer. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2018 | $ 146 | $ 2,681,048 | $ (1,531,326) | $ (7,753) | $ 1,142,115 |
Balance (in Shares) at Dec. 31, 2018 | 53,881 | ||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 5,282 | 5,284 | ||
Issuance of shares in connection with stock-based compensation plans (in Shares) | 560 | ||||
Stock-based compensation | 20,564 | 20,564 | |||
Comprehensive loss | (10,849) | 37 | (10,812) | ||
Balance at Dec. 31, 2019 | $ 148 | 2,706,894 | (1,542,175) | (7,716) | 1,157,151 |
Balance (in Shares) at Dec. 31, 2019 | 54,441 | ||||
Issuance of shares in connection with stock-based compensation plans | $ 2 | 226 | 228 | ||
Issuance of shares in connection with stock-based compensation plans (in Shares) | 688 | ||||
Issuance of shares as part of the Origin acquisition | $ 5 | 26,631 | 26,636 | ||
Issuance of shares as part of the Origin acquisition (in Shares) | 1,488 | ||||
Stock-based compensation | 20,204 | 20,204 | |||
Comprehensive loss | (443,721) | (1,130) | (444,851) | ||
Balance at Dec. 31, 2020 | $ 155 | 2,753,955 | (1,985,896) | (8,846) | 759,368 |
Balance (in Shares) at Dec. 31, 2020 | 56,617 | ||||
Issuance of shares in connection with stock-based compensation plans | $ 3 | 8,052 | 8,055 | ||
Issuance of shares in connection with stock-based compensation plans (in Shares) | 1,129 | ||||
Public offering of ordinary shares, net | $ 24 | 218,826 | 218,850 | ||
Public offering of ordinary shares, net (in Shares) | 7,931 | ||||
Other items | 444 | 444 | |||
Reduction of redeemable non-controlling interest | 227 | 227 | |||
Stock-based compensation | 30,977 | 30,977 | |||
Comprehensive loss | (61,982) | 75 | (61,907) | ||
Balance at Dec. 31, 2021 | $ 182 | $ 3,012,481 | $ (2,047,878) | $ (8,771) | $ 956,014 |
Balance (in Shares) at Dec. 31, 2021 | 65,677 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (61,982) | $ (444,116) | $ (11,079) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Goodwill impairment | 386,154 | ||
Impairment of other long-lived assets | 1,447 | 6,985 | 776 |
Depreciation and amortization | 56,096 | 49,560 | 50,942 |
Stock-based compensation | 30,977 | 20,204 | 20,564 |
Foreign currency transaction loss (gain) | 3,446 | (8,718) | (1,900) |
Gain from sale of investments | (3,578) | ||
Gain from step acquisition | (14,400) | ||
Share in (profits) losses of associated companies | (949) | 3,939 | 412 |
Revaluation of investments | (1,301) | ||
Other non-cash items, net | 2,914 | (2,552) | (103) |
Change in cash attributable to changes in operating assets and liabilities: | |||
Accounts receivable, net | (25,003) | 29,465 | 4,967 |
Inventories | (53) | 37,120 | (48,647) |
Other current assets and prepaid expenses | (14,976) | 10,147 | (2,936) |
Other non-current assets | 4,465 | (1,040) | 5,807 |
Accounts payable | 28,492 | (24,534) | (13,114) |
Other current liabilities | 41,393 | (10,033) | (7,273) |
Deferred revenues | 8,872 | (6,398) | (3,779) |
Deferred income taxes, net and uncertain tax positions | (12,380) | (20,299) | 3,161 |
Other non-current liabilities | (11,234) | 1,918 | (5,413) |
Net cash provided by (used in) operating activities | 35,824 | 27,802 | (11,193) |
Cash flows from investing activities | |||
Cash paid for business combinations, net of cash acquired | (20,553) | (29,115) | |
Purchase of property and equipment | (24,981) | (26,943) | (22,420) |
Investments in short-term bank deposits | (361,000) | (27,000) | (28,300) |
Proceeds from short-term bank deposits | 129,000 | 28,300 | |
Proceeds from sale of equity method investment | 3,175 | ||
Net proceeds from divestitures of subsidiaries and associated companies | 1,000 | 4,909 | |
Investments in non-marketable equity securities | (11,779) | ||
Purchase of intangible assets | (1,770) | (2,070) | (2,752) |
Other investing activities | (82) | 28 | (20,963) |
Net cash used in investing activities | (291,165) | (52,625) | (69,526) |
Cash flows from financing activities | |||
Proceeds from public offering, net of issuance costs | 218,850 | ||
Proceeds from exercise of stock options | 8,055 | 228 | 5,284 |
Repayment of bank loan | (27,293) | ||
Other financing activities | 406 | ||
Net cash provided by (used in) financing activities | 227,311 | 228 | (22,009) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (893) | 3,214 | 2,591 |
Net change in cash, cash equivalents and restricted cash | (28,923) | (21,381) | (100,137) |
Cash, cash equivalents and restricted cash, beginning of year | 272,216 | 293,597 | 393,734 |
Cash, cash equivalents and restricted cash, end of year | 243,293 | 272,216 | 293,597 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||
Cash and cash equivalents | 243,179 | 272,092 | 293,484 |
Restricted cash included in other current assets | 114 | 124 | 113 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 243,293 | 272,216 | 293,597 |
Cash paid during the year for: | |||
Income taxes, net of tax refunds | 2,418 | 1,140 | 10,730 |
Interest | 449 | ||
Non-cash investing activities: | |||
Transfer of inventories to fixed assets | 2,673 | 4,138 | 3,307 |
Transfer of fixed assets to inventories | 977 | 410 | 322 |
Contingent consideration | 17,985 | 37,400 | |
Issuance of shares as part of Origin acquisition (Refer to Note 2) | $ 26,636 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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” or “Stratasys”) is a global leader in connected, polymer-based 3D printing solutions, across the entire manufacturing value chain. The Company leverages its competitive advantages, which include a broad set of best-in-class 3D printing platforms, software, a materials and technology partner ecosystem, innovative leadership, and global GTM infrastructure, in order to position itself to capture share in a significant and growing global marketplace, with a focus on manufacturing. 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 ( “ ” The global COVID-19 pandemic began adversely impacting the Company's financial results for its operations in all global regions already in the first quarter of 2020. The impact of COVID-19 on the Company’s results of operations was most pronounced throughout the 2020 year, with lesser impact for each subsequent quarter in the second half of 2020. The Company’s employees were often relegated to remote work, and were reduced to a four-day work week, during the height of the pandemic, beginning during the second quarter, and through the end of, 2020. In 2021, the Company returned to work at full-capacity (a five-day work week) on a global basis, with a high percentage of its employees throughout the world receiving vaccines against COVID-19 over the course of the year. This was reflected in the Company’s operating results during 2021, which evidenced a positive trend that began in the first quarter and continued throughout the rest of the year, with revenue growth each quarter both on a year-over-year basis and on a sequential quarterly basis. The annual results for 2021 evidenced those improvements on an aggregate basis, with revenues for 2021 approaching pre-COVID-19 levels, signaling a near-full recovery for the Company’s top-line results. The Company continues to face relative uncertainty as to the remaining intensity and duration of, and the nature and timeline for recovery from, the COVID-19 pandemic going forward, and how all of that impacts the Company, including the the extent to which overall potentially permanent changes in the behavior of the Company’s consumers have been caused by the pandemic. The Company has taken the approach of managing the pandemic (to the extent that it continues to remain a significant factor) via the strengthening of its balance sheet and cash assets, and avoidance of debt, while focusing on cost controls and cash generation. The Company has selectively applied certain research and development cost controls to ensure that its strategically important product development programs were not affected by them. With respect to the Company’s goodwill impairment in 2020 refer to Note 7. b. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of Stratasys Ltd., and its subsidiaries. All intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. Functional Currency and Foreign Currency Transactions A major part of the Company’s operations is carried out by Stratasys Ltd. in Israel and its subsidiaries in the United States. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of other subsidiaries is generally their local currency. The financial statements of those subsidiaries are included in the consolidated financial statements, based on translation into U.S. dollars. Assets and liabilities accounts are translated at year-end exchange rates, while revenues and expenses accounts are translated at average exchange rates during the year. The remeasurement adjustments of foreign currencies translation are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated financial statements. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income, net in the consolidated statements of operations and comprehensive loss. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may have a material impact on the Company’s financial statements. As applicable to these consolidated financial statements, the most significant estimates relate to revenue recognition, inventories measurement, valuation allowance, uncertain tax positions, recoverability of intangibles and goodwill and purchase price allocation In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences, of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, the accounting estimates and assumptions may change over time in response to COVID-19. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuation; inventory valuation; and the allowance for expected credit losses. 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. Business Combinations The Company allocates the fair value of consideration transferred in a 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 dates 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 deferred payments which are classified as liabilities and records the changes in their fair value in the consolidated statements of operations and comprehensive loss. Changes in the fair value of the obligations in connection with its business combinations can result from adjustments to the discount rates, the Company’s shares price, sales and profitability targets. 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. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations. 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. Bank Deposits Bank deposits with original maturity dates of more than three months but at balance sheet date are less than one year are included in short-term depos its. Accounts Receivable, net The Company adopted the Current Expected Credit Losses ("CECL") guidance effective January 1, 2020, with no material impact on its consolidated financial statements. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Allowance for due to the Company’s accounts receivable amounted to $517 thousand and $ thousand as of December 31, 20 1 and 2020, respectively. Changes in the allowance for are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for when management deems the accounts are no longer collectible. The balance and the changes in the allowance for expected credit losses are comprised as follows: Year ended December 31 2021 2020 2019 U.S. $ in thousands Balance at beginning of year $ 870 $ 939 $ 1,110 Increase during the year 50 454 223 Bad debt written off (403 ) (523 ) (394 ) Balance at end of year $ 517 $ 870 $ 939 Derivative Instruments and Hedge Accounting The Company conducts its operations globally and may be exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. As part of the Company’s risk management strategy, the Company enters into transactions involving foreign currency exchange derivative financial instruments. For its non-hedging transactions, the Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. The Company does not enter into derivative transactions for trading purposes. The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at their fair value. Derivatives in a gain position are reported in other current assets in the consolidated balance sheets and derivatives in a loss position are recorded in accrued expenses and other current liabilities in the consolidated balance sheets, on a gross basis. On the date that the Company enters into a derivative contract, it designates the derivative for accounting purposes, as either a hedging instrument which qualifies for hedge accounting or as a non-hedging instrument which does not qualify for hedge accounting. In order to qualify for hedge accounting, the Company formally documents at the inception of each hedging relationship the hedging instrument, the hedged item, the risk management objective and strategy for undertaking each hedging relationship, and the method used to assess hedge effectiveness. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income, net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. Long-term 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. Under the equity method, the Company recognizes its proportionate share of the comprehensive income or loss of the investee. The Company’s share of profit or losses from equity method investments is included in share in profit or losses of associated companies. Other non-marketable equity securities without readily determinable fair value in which the Company does not have a controlling interest or significant influence are recorded at their original cost and adjusted for observable price changes for identical or similar instruments less any impairment. Marketable securities The Company reviews its unconsolidated long-term investments for potential impairment or other adjustments, which generally involves an analysis of the facts and changes in circumstances influencing the investments Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the lease term (including any renewal periods, if appropriate) or the estimated useful life of the asset. Repairs and maintenance are charged to expense as incurred, while betterments and improvements that extend the useful life or add functionality of property, plant and equipment are capitalized. Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 The Company reviews the carrying amounts of property, plant and equipment for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the assets or asset groups with the related estimated undiscounted future cash flows. In the event impairment exists, an impairment charge is recorded at the amount by which the carrying amount of the asset or asset group exceeds the fair value. In addition, the remaining depreciation period for the impaired asset would be reassessed and, if necessary, revised. Other Intangible Assets, net Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 9 Patents 10 Trade names 10 Customer relationships 9 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of revenues. Amortization of trade names, customer relationships and patents are recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. Refer to Note 8 for further information. Goodwill Goodwill reflects the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter at the reporting unit level, or whenever events or circumstances present an indication of potential impairment which requires an interim goodwill impairment analysis. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. ASC 350, “Intangibles - Goodwill and other” (“ASC 350”) requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the quantitative goodwill impairment test two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative first step of the goodwill impairment test. If the carrying value of the reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. Retirement Plans and Employee Rights Upon Termination Under Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 ( ” ” Severance pay liabilities with respect to for the Company’s employees in Israel who are not subject to Section 14, as well as employees who have special contractual arrangements, are provided for in the Company’s consolidated financial statements based on the length of time that they work for the Israeli entity and their latest monthly salary. The Company’s liabilities for those Israeli employees, in the amounts of $3.2 million and $4.1 million as of December 31, 2021 and 2020, respectively, are presented as other non-current liabilities in the Company’s consolidated balance sheets. These liabilities are recorded as if it was payable at each balance sheet date. These liabilities are partially funded by the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. As of December 31, 2021 and 2020, the Company had $3.2 million and $3.1 million, respectively, deposited in these insurance policies and pension funds. These policies are the Company’s assets. However, under employment agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In addition, the Company has liabilities for severance payments to its employees in other jurisdictions in accordance with local laws and practices of the countries in which they are employed. Severance expenses for the years ended December 31, 2021, 2020 and 2019 were $3.4 million, $9.1 million and $4.0 million, respectively. For its employees in the United States, the Company has a defined contribution retirement plan (the “Plan”) under the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) that covers eligible U.S. employees as defined in the Plan. Participants may elect to contribute both pre-tax or after-tax (“Roth”) up to 50% of annual taxable compensation, as defined by the Plan, up to a maximum amount prescribed by the Code. The Company, at its discretion, makes matching contributions equal 4% of the participant’s annual compensation. For the years ended December 31, 2021, 2020 and 2019 the Company made 401(k) Plan contributions of approximately $4.0 million, $4.1 million and $4.2 million respectively. Contingent Liabilities The Company is subject to various legal proceedings that arise from time to time in the ordinary course of business. The outcomes of the legal proceedings that are pending as of the date the financial statements are issued are subject to significant uncertainty. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that loss would be incurred and the amount of the liability can be reasonably estimated, then the Company would record an accrued expense in the Company’s financial statements based on its best estimate. Loss contingencies considered to be remote by management are generally not disclosed unless material. The respective legal fees are expensed as incurred. Redeemable Non-controlling Interests Non-controlling interests with embedded redemption features, such as put options, whose settlement is not at the Company’s discretion, are considered redeemable non-controlling interests. Redeemable non-controlling interests are considered to be temporary equity and are therefore presented as a mezzanine section between liabilities and equity on the Company’s consolidated balance sheets. Redeemable non-controlling interests are measured at the greater of the initial carrying amount adjusted for the non-controlling interest’s share of comprehensive income or loss or its redemption value. Adjustments of redeemable non-controlling interest to its redemption value are recorded through additional paid-in capital. Revenue Recognition The Company derives revenues from sales of additive manufacturing systems, consumables and services. The Company sells its products directly through its sales force, independent sales agents and indirectly through authorized resellers. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services to the end customer or to the reseller. The amount of consideration is usually at fixed price at the contract inception. Consideration from Shipping and handling are recorded on a gross basis within product revenue. Revenues are recorded net of any taxes assessed by various government entities, such as sales, use and value-added taxes. Revenue from products, which consist of systems and consumables, is recognized when the customer has obtained control of the goods, generally at a point in time upon shipment or once delivery and risk of loss has transferred to the customer. The Company recognizes revenue on sales to resellers when the reseller has economic substance apart from the Company and the reseller is considered the principal for the transaction with the end-user customer. Service revenue derives from service type warranty The Company enters into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources, and (ii) the Company’s promise to transfer the products or services to the customer is separately identifiable from other promises in the contract. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. In assessing collectability as part of the revenue recognition process, the Company considers a number of factors in the evaluation of the creditworthiness of the customer, including past due amounts, payment history and financial condition. In some cases where collectability is not assured, payment terms are set partially or entirely as prepayment or customers may be required to furnish letters of credit. See Note 3 for additional information related to disaggregation of revenue and other. Shipping and handling costs Shipping and handling costs are classified as cost of revenues. Advertising Advertising costs are expensed as incurred and were approximately $4.5 million, $6.3 million and $16.2 million, for the years ended December 31, 2021, 2020 and 2019, respectively. Research and Development Expenses Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. Deferred taxes have not been provided on the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. 2) Dividends distributable from the income of foreign companies as the Company does not expect these companies to distribute dividends in the foreseeable future. If these dividends were to be paid, the Company would have to pay additional taxes at a rate of up to 25% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. Amounts of tax-exempt income generated from the Company’s current Approved Enterprises (see note 9c), as the Company intends to permanently reinvest these profits and does not intend to distribute dividends from such income. If these dividends were to be paid, the Company would have to pay additional taxes at a rate up to 10% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. Valuation Allowances Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In the determination of the approp |
Certain Transactions
Certain Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Certain Transactions [Abstract] | |
Certain Transactions | Note 2. Certain Transactions Origin acquisition On December 31, 2020 (the “Origin transaction date”) the Company acquired 3D printing start-up Origin Laboratories Inc. ( “ ” P 3 The acquisition was aimed at fortifying our leadership in polymers and production applications of 3D printing in industries such as dental, medical, tooling, and select industrial, defense, and consumer goods markets In exchange for 100% of the outstanding shares of Origin the Company issued 1,488 thousand ordinary shares, paid cash upon closing and is obligated to pay additional payments (combination of cash and shares) subject to performance-based earnouts over 3 years. The Origin transaction is reflected in accordance with ASC Topic 805, “Business Combinations”, using the acquisition method of accounting with the Company as the acquirer. The following table summarizes the fair value of the consideration transferred to Origin stockholders for the Origin transaction: U.S. $ in thousands Cash payments $ 33,025 Issuance of ordinary shares to Origin stockholders 26,636 Contingent consideration at estimated fair value 37,400 Total consideration $ 97,061 The fair value of the ordinary shares issued was determined based on the closing market price of the Company’s ordinary shares on the Origin transaction date. In accordance with ASC Topic 805, the estimated contingent consideration as of the Origin transaction date was included in the purchase price. The total contingent payments could reach to a maximum aggregate amount of up to $40 million. Approximately 50% of the payments shall be settled in cash, and 50% shall be settled through the issuance of ordinary shares. operating expenses. Refer to note 4. An additional payment of $6 million, which is subject to the founders' retention over 3 years, is recorded as compensation expense over the retention period. Compensation expenses for the year ended December 31, 2021 were approximately $4.3 million The allocation of the purchase price to assets acquired and liabilities assumed, including measurement period adjustments (refer to note 6), is as follows: Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 2,083 Goodwill 38,104 Intangible assets 71,120 Other assets 3,493 Total assets acquired 114,800 Net deferred tax liabilities 14,007 Other labilities 3,732 Total liabilities assumed 17,739 Net assets acquired $ 97,061 The allocation of the purchase price to net assets acquired and liability assumed resulted in the recognition of intangible asset related to developed technology of $71 million. This intangible asset has a useful-life of 10 years. The fair value estimate of the developed technology is determined using a variation of the income approach known as the “Multi-Period Excess Earnings Approach”. This valuation technique estimates the fair value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life. Investment in Xaar 3D Ltd. ("Xaar 3D") During the fourth quarter of 2019, the Company entered into an agreement with Xaar plc ( “ ” ” ” In addition, the agreement included an option for Stratasys to acquire the remaining shares of Xaar 3D. Following the additional investment, the Company considered the FASB guidance in accordance with ASC Topic 810 “Consolidation” regarding the propriety of implementing consolidation, for both the variable interest entity and voting model, or equity method accounting. The Company concluded that it should continue accounting for the investment according to the equity method as it has retained the ability to exercise significant influence but does not control Xaar 3D. For its additional interest in Xaar 3D the Company paid approximately $15.7 million. The investment was presented under other non-current assets in the Company’s consolidated balance sheets. On November 1, 2021 (the "Xaar 3D transaction date") , the Company acquired the remaining 55% share of XAAR 3D, for an aggregate purchase price of $29.3 million . The Company paid cash upon closing and it is obligated to make additional earn-out payments and royalties on products and services sales for up to 15 years. The Xaar 3D transaction is reflected in accordance with ASC Topic 805, “Business Combinations”, using the acquisition method of accounting with the Company as the acquirer. The Company accounted for the acquisition of the remaining equity of Xaar 3D as a step acquisition, which required re-measurement of the Company's previous ownership interest to fair value prior to completing purchase accounting. Using step acquisition accounting the Company increased the value of its previously held equity investment to its fair value of $23.8 million, which resulted in a gain of approximately $14.4 million, recorded in the consolidated statements of operations in the fourth quarter of 2021. The acquisition of the remaining equity interest also resulted in the recognition of a previously unrealized foreign currency gain of $0.6 million The following table summarizes the fair value of the consideration transferred to Xaar 3D stockholders for the Xaar 3D transaction: U.S. $ in thousands Cash payments $ 13,967 Contingent consideration at estimated fair value 15,314 Total consideration for 55% holding 29,281 Fair value of 45% holding 23,775 Total consideration $ 53,056 In accordance with ASC Topic 805, the estimated contingent consideration as of the Xaar 3D transaction date was included in the purchase price. The total contingent payments could reach to a maximum aggregate amount of up to $21 million. The estimated fair value of the contingent consideration is based on management’s assessment of whether, and at what level, the financial metrics will be achieved, and the present value factors associated with the timing of the payments. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. Changes in the fair value of contingent consideration will be recorded in operating expenses. Refer to note 4. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Xaar 3d transaction date. The estimated fair values are preliminary and based on the information that was available as of November 1, 2021. Thus, the measurements of fair value reflected are subject to changes and such changes could be significant. The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows: Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 82 Goodwill 25,375 Intangible assets 45,000 Other assets 5,280 Total assets acquired 75,737 Net deferred tax liabilities 1,736 Other liabilities 20,945 Total liabilities assumed 22,681 Net assets acquired $ 53,056 The allocation of the purchase price ("PPA") to net assets acquired and liability assumed resulted in the recognition of intangible asset related to developed technology of $45 million. This intangible asset has a useful-life of 7 years. The fair value estimate of the developed technology is determined using a variation of the income approach known as the “Multi-Period Excess Earnings Approach”. This valuation technique estimates the fair value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life. The net cash flows were discounted to present value. In addition, as part of the PPA, the Company assumed a royalty liability to a third party in respect of the developed technology. Such liability amounting to $14 million was recorded based on a fair value estimate, which was determined using the valuation model used to value the developed technology and is recorded under other non-current liabilities. Pro forma information giving effect to the acquisition has not been provided as the results would not be material. RPS acquisition On February 16, 2021 the Company acquired RP Support Lim ited (“RPS”), a provider of industrial stereolithography 3D printers and solutions. In exchange for 100% of the outstanding shares of RPS, the Company paid cash upon closing and it is obligated to make additional payments (in cash), subject to performance-based criteria, via earn-out payments over two years. M arketable equity investment The Company recognized in the year ended December 31, 2021 gain of $0.6 million, for revaluation of an equity investment. In prior periods the investment was treated as a non-marketable equity investment without readily determinable fair value. The entity in which the Company invested became public during the first quarter of 2021 and accordingly the investment is now treated as a marketable equity investment. Other transactions During the second quarter of 2019, the Company sold an investment recognized a gain of approximately $3.6 million, net of transaction costs. The gain was recorded under Operating expenses. During 2021, the Company invested a total of $11.8 million in non-marketable equity securities without readily determinable fair value in which the Company does not have a controlling interest or significant influence. Restructuring plan On June 2, 2020, the Company announced a restructuring plan to reduce operating expenses as part of a cost realignment program to focus on profitable growth (the “ ” corded $6.4 million and $3.9 mi |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenues | Note 3. Revenues Disaggregation of Revenues The following table present the Company’s revenues disaggregated by geographical region (based on the Company's customers’ location) and revenue type for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 (U.S. $ in thousands) Americas Systems $ 124,311 $ 98,884 $ 127,198 Consumables 121,245 106,857 129,921 Service 142,767 137,736 158,743 Total Americas 388,323 343,477 415,862 EMEA Systems 42,077 29,584 39,810 Consumables 61,192 48,521 58,883 Service 27,027 23,479 26,274 Total EMEA 130,296 101,584 124,967 Asia Pacific Systems 33,110 22,266 36,000 Consumables 35,623 33,670 38,934 Service 19,867 19,820 20,317 Total Asia Pacific 88,600 75,756 95,251 Total Revenues $ 607,219 $ 520,817 $ 636,080 The following table present the Company’s revenues disaggregated based on the timing of revenue recognized for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 Revenues recognized in point in time from: Products $ 417,557 $ 339,782 $ 430,746 Services 46,049 40,405 43,885 Total revenues recognized in point in time 463,606 380,187 474,631 Revenues recognized over time from: Services 143,613 140,630 161,449 Total revenues recognized over time 143,613 140,630 161,449 Total Revenues $ 607,219 $ 520,817 $ 636,080 Contract Assets and Contract Liabilities Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of December 31, 2021 and 2020. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 U.S. $ in thousands Deferred revenue* $ 72,307 $ 63,392 *Includes $21.1 million and $14.3 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2021 and December 31, 2020, respectively. Revenue recognized in 2021 and 2020 that was included in deferred revenue balance as of January 1, 2021 and 2020, was $48.7 million and $50.1 million, respectively. Remaining Performance Obligations Remaining Performance Obligations ( “ ” Incremental Costs of Obtaining a Contract Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period (generally 5 years) if the Company expects to recover those costs. The Company determined the period of benefit by taking into consideration customer contracts including renewals, the technology and other factors. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2021 and 2020, the deferred commission amounted to $7.4 million and $5.0 million, respectively and presented under Other non-current assets. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 4. Fair Value Measurement The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, on its consolidated balance sheets: December 31, 2021 December 31, 2020 Level 2 Level 3 Level 2 Level 3 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 82 $ - $ 56 $ - Foreign exchange forward contracts designated as hedging instruments 910 - 793 - Liabilities: Foreign exchange forward contracts not designated as hedging instruments (89 ) - (1,098 ) - Foreign exchange forward contracts designated as hedging instruments (60 ) - (1,584 ) - Contingent consideration - 55,919 - 37,400 $ 843 $ 55,919 $ (1,833 ) $ 37,400 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). Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a Level 3 measurement within the fair value hierarchy (refer to Note 2). Other financial instruments consist mainly of cash and cash equivalents, short term deposits, current and non-current receivables, accounts payable and other current liabilities. The fair value of these financial instruments approximates their carrying values. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories Inventories consisted of the following: December 31, 2021 2020 U.S. $ in thousands Finished goods $ 58,784 $ 61,297 Work-in-process 4,360 3,163 Raw materials 66,003 67,212 $ 129,147 $ 131,672 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, 2021 2020 (U.S. $ in thousands) Machinery and equipment $ 157,692 $ 147,531 Buildings and improvements 178,025 172,868 Computer equipment and software 51,311 49,233 Office equipment, furniture and fixtures 14,723 13,966 Land 19,079 19,302 420,830 402,900 Accumulated depreciation (219,357 ) (202,556 ) 201,473 200,344 Construction work in progress 1,822 888 $ 203,295 $ 201,232 Depreciation expenses were $24.8 million, $25.2 million and $25.8 million in the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill [Abstract] | |
Goodwill | Note 7. G oodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2021 and 2020 were as follows: 2021 2020 (U.S. $ in thousands) Balance at January 1, $ 35,694 $ 385,658 Goodwill acquired 27,092 35,694 Goodwill impairment charges - (386,154 ) Measurement period adjustments 2,410 - Currency translation adjustments (52 ) 496 Balance at December 31, $ 65,144 $ 35,694 During the first quarter of 2020, the Company performed an analysis of the impact of recent events, including business and industry specific considerations, on the fair value of Stratasys-Objet reporting unit. As part of this analysis the Company considered the potential impacts of COVID-19 and the sensitivity of estimates and assumptions used in the last annual impairment test as well as changes in market capitalization. During the second quarter of 2020, the Company announced a restructuring plan to reduce operating expenses as part of a cost realignment program to focus on profitable growth (the “ Plan ” ). The Plan’s cost-cutting measures included workforce reductions affecting approximately 10% of employees, as well as other cost-mitigation measures. Please refer to Note 12 for further discussion. The Company reassessed its analysis from the first quarter in light of macroeconomic developments and its cost-cutting measures. Based on the Company's goodwill assessment for the Stratasys-Objet reporting unit, the Company determined that no impairment was required as of March 31, 2020, and June 30, 2020. During the third quarter of 2020, the Company noted that indicators of potential impairment existed which required an interim goodwill impairment analysis for Stratasys-Objet reporting unit. These indicators included longer and deeper than expected reduction in the business, refinement to the company’s business focus into additional inorganic technologies and sustained decline in the Company’s market capitalization during the past two quarters, all, primarily as a result of the COVID-19 impact on the global economy and the Company’s business. As a result of the factors discussed above, the Company revisited its assumptions supporting the cash flow projections for its Stratasys-Objet reporting unit, including: (i) the expected duration and depth of revenue reduction and certain revenue growth assumptions; (ii) the associated operating profit margins; (iii) the long term growth rate; and (iv) the discount rate . In estimating the discounted cash flow, the Company used the following key assumptions: the Company currently expects it will take approximately two years to regain the loss of revenue and return to its pre COVID-19 activity levels considering the impact of both volume and price with a similar effect on profitability. Following such period, the Company expects to return to similar growth rates as estimated in prior valuations. The Company assumed a long term terminal growth rate of 2.5%, lower than the 3.1% used in prior valuations. In addition, changes in business focus due to introduction of new technologies were expected to lower the total revenues attributable to the Stratasys-Objet reporting unit. The resulting cash flow amounts were discounted using the same discount rate of 13.5%. Based on the revised cash flow projections, the value of the reporting unit decreased below its carrying value, and the Company recorded in the third quarter of 2020 a goodwill impairment charge of $386.2 million, the entire reporting unit’s goodwill. During the fourth quarter of 2021, the Company performed its annual impairment test for goodwill impairment. Based on the Company's qualitative analysis, which considered the Company's market valuation, its operation results and projections, and the timing of its goodwill acquisitions, no goodwill was determined to be impaired as of December 31, 2021. The goodwill balance as of December 31, 2020 was acquired as part of Origin acquisition and the goodwill acquired during 2021 was acquired as part of the RPS and XAAR acquisitions |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, Net | Note 8. Other Intangible Assets, Net Other intangible assets consisted of the following: December 31, 2021 December 31, 2020 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 $ 406,578 $ (279,037 ) $ 127,541 $ 357,863 $ (260,123 ) $ 97,740 Patents 16,220 (8,503 ) 7,717 17,699 (8,487 ) 9,212 Trademarks and trade names 26,055 (22,241 ) 3,814 26,036 (21,114 ) 4,922 Customer relationships 100,731 (87,559 ) 13,172 101,107 (81,413 ) 19,695 Capitalized software development costs 7,410 (7,410 ) - 7,410 (7,410 ) - $ 556,994 $ (404,750 ) $ 152,244 $ 510,115 $ (378,547 ) $ 131,569 Amortization expenses Amortization expense relating to intangible assets for the years ended December 31, 2021, 2020 and 2019, was approximately $31.3 million, $24.3 million and $25.2 million, respectively. As of December 31, 2021, estimated future amortization expense relating to definite life intangible assets for each of the next five years and thereafter were as follows: Estimated amortization expenses Year ending December 31, (U.S. $ in thousands) 2022 36,626 2023 22,106 2024 18,188 2025 15,600 2026 15,517 2027 and thereafter 44,207 Total 152,244 During the year ended December 31, 2020, the Company recorded impairment charges of |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 were as follows: December 31, 2021 2020 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 671,458 $ 645,318 Inventory related 4,210 3,892 Intangible assets 12,783 19,081 Provision for employee related obligations 1,186 557 Stock-based compensation 9,528 7,507 Deferred revenue 2,257 1,871 Property, plant and equipment 630 835 Allowance for credit losses 143 249 Foreign currency losses 358 278 Research and development credit carry forwards 15,933 16,693 Gross deferred tax assets 718,486 696,281 Valuation allowance (693,120 ) (661,979 ) Total deferred tax assets 25,366 34,302 Deferred tax liabilities Intangibles assets (12,533 ) (21,567 ) Property, plant and equipment (17,991 ) (2,847 ) Other items (882 ) (4,344 ) Total deferred tax liabilities (31,406 ) (28,758 ) Net deferred tax assets (liabilities) $ (6,040 ) $ 5,544 The Company’s deferred tax assets and liabilities are classified in the consolidated balance sheets as follows: December 31, 2021 2020 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 1,301 $ 5,586 Deferred tax liabilities 7,341 42 Net deferred tax assets (liabilities) $ (6,040 ) $ 5,544 As of Decem ber 31, 2021 and 2020 the Company had tax net operating losses carry-forward of approximately $628.5 million and $607.3 million, respectively. In addition, the Company incurred capital losses of $2,203.2 million in 2020 due to a legal reorganization of certain entities in the group. Those tax losses carry-forward resulted in deferred tax assets of approximat ely $671.5 mil lion and $645.3 million, as of December 31, 2021 and 2020, respectively. As a result of losses incurred in the last few years, and since the near-term realization of these assets is uncertain, the Company recorded a full valuation allowance for its deferred tax assets that are not likely to be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. A reconciliation of the beginning and ending balances of valuation allowance is as follows: Valuation allowance U.S. $ in thousands Balance at January 1, 2019 $ 152,659 Decrease (888 ) Balance at December 31, 2019 151,771 Additions 524,215 Decrease (14,007 ) Balance at December 31, 2020 661,979 Additions 31,141 Balance at December 31, 2021 $ 693,120 Included in the net deferred tax are net operating loss and credit ca rryovers of $159.2 mi llion which expire in years ending from December 31, 2022 through December 31, 2041, whereas some losses may be carried forward indefinitely, as discussed below. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In 2017, the Company revalued its valuation allowance and deferred tax assets at the statutory 21% rate that is in effect in 2018 and forward. The provisional impact of this rate change was recorded in the fourth quarter of 2017 and there was a reduction of $65.6 million in the valuation allowance, offset by a reduction of $65.6 million in the deferred tax assets. The accounting was completed in the fourth quarter of 2018. The Act introduced new intangible income rules, Global Intangible Low-Taxed Income (GILTI) and Foreign Derived Intangible Income (FDII). The Company has analyzed the impact of GILTI/FDII and determined that no impact can be recorded due to the U.S. subsidiaries’ net operating losses. Thus, the Company cannot elect to include these amounts in the measurement of its deferred taxes under U.S. GAAP. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted into law in response to the economic fallout of the COVID-19 pandemic in the United States. Among the many business-related provisions, some of which related to non-income taxes, were changes made to net operating losses (NOLs). The CARES Act amended Internal Revenue Code Section 172(b)(1) for tax years beginning in 2018, 2019 and 2020, requiring taxpayers to carry back NOLs arising in those years to the five preceding tax years, unless the taxpayer elects to waive or reduce the carryback period. To the extent unused as a carryback, these NOLs are now carried forward indefinitely. The CARES Act suspended the Tax Cuts and Jobs Act’s 80% limitation on NOL deductions for tax years beginning in 2018, 2019 and 2020. The 80% limitation will be reinstated for tax years beginning after 2020, for NOLs arising in tax years after 2017. The Company believes that all future profits of its subsidiaries will be indefinitely reinvested or that there is no expectation to distribute any taxable dividends from these subsidiaries. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is estimated as an immaterial amount. b. Provision for Income Taxes Loss (income) before income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows: 2021 2020 2019 (U.S. $ in thousands) Domestic $ (50,193 ) $ (381,935 ) $ (11,895 ) Foreign (16,644 ) (74,636 ) 4,751 $ (66,837 ) $ (456,571 ) $ (7,144 ) The components of income taxes for the years ended December 31, 2021, 2020 and 2019 were as follows: 2021 2020 2019 (U.S. $ in thousands) Current Domestic $ (14,146 ) $ 4,992 $ 3,392 Foreign 2,141 (3,902 ) 2,524 (12,005 ) 1,090 5,916 Deferred Domestic 8,745 (4,112 ) (2,007 ) Foreign (646 ) (13,372 ) (386 ) 8,099 (17,484 ) (2,393 ) Total income taxes $ (3,906 ) $ (16,394 ) $ 3,523 A reconciliation of the statutory income tax rate and the effective income tax rate for the years ended December 31, 2021, 2020 and 2019 is set forth below: 2021 2020 2019 Statutory tax rate 23.0 % 23.0 % 23.0 % Reduced tax rate under Israeli benefit programs 6.2 (1.4 ) 18.0 Goodwill impairment - (17.5 ) - Stock-based compensation expense (3.5 ) (0.5 ) (21.0 ) Non-deductible acquisition expenses (0.1 ) - (1.4 ) Earnings taxed under foreign law 10.8 (4.1 ) (14.9 ) Valuation Allowance (42.7 ) 3.1 - Changes in uncertain tax positions 17.9 1 (59.8 ) Deferred Tax due to different tax rates (6.1 ) 0.1 11.2 Non recurring Capital gain - - 11.5 Withholding tax (0.1 ) - (1.7 ) Other 0.4 (0.1 ) (2.6 ) Effective income tax rate 5.8 % 3.6 % (48.9 )% Uncertain tax positions Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. A reconciliation of the beginning and ending balance of uncertain tax positions is as follows: 2021 2020 2019 (U.S. $ in thousands) Balance at beginning of year $ 23,389 $ 25,517 $ 22,044 Additions for tax positions related to the current year 3,826 312 2,336 Foreign currency impact 2,918 3,017 1,353 Adjustments for tax positions related tax settlements (26,685 ) - - Reduction of reserve for statute expirations (433 ) (5,457 ) (216 ) Balance at end of year $ 3,015 $ 23,389 $ 25,517 The Company’s accrual for estimated interest and penalties was $0.87 million as of December 31, 2021. 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 2013 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 2019 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 jurisdictions. c. Basis of taxation: The enacted statutory tax rates applicable to the Company’s major subsidiaries outside of Israel are as follows: Company incorporated in the U.S.— Federal tax rate of approximately 21%. Company incorporated in Germany—tax rate of approximately 29%. Company incorporated in Hong Kong—tax rate of approximately 16.5%. A significant portion of the Company’s income is taxed in Israel. The following is a summary of how the Company’s income is taxed in Israel: Corporate tax rates in Israel for 2018 and thereafter is 23%. The Company elected to compute its taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the Company’s taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of foreign exchange rate fluctuations (of the NIS in relation to the U.S. dollar) on the Company’s Israeli taxable income. Tax benefits under the Law for Encouragement of Capital Investments, 1959 (the “Investment Law”) Various industrial projects of the Company have been granted “Approved Enterprise” and “Beneficiary Enterprise” status, which provided certain benefits, including tax exemptions for undistributed income and reduced tax rates. Income not eligible for Approved Enterprise and Beneficiary Enterprise benefits is taxed at the regular corporate rate, which was 23% in 2021. The Company is a Foreign Investors Company, or FIC, as defined by the Investment Law. FICs are entitled to further reductions in the tax rate normally applicable to Approved Enterprises and Beneficiary Enterprises, depending on the level of foreign ownership. When foreign (non-Israeli) ownership equal or exceeds 90%, the Approved Enterprise and Beneficiary Enterprise income is either tax-exempt for a limit period between two to ten years depending on the location of the enterprise or taxable at a tax rate of 10% for a 10-year period. The Company cannot assure that it will continue to qualify as a FIC in the future or that the benefits described herein will be granted in the future. The 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. On November 15, 2021, the Investment Law was amended to provide, on a temporary basis, a reduced corporate income tax on the distribution or release within a year from such amendment of tax-exempt profits derived by Approved and Benefited Enterprises, which we refer to as Exempt Profits. The amount of the reduced tax will be determined based on a formula. In order to qualify for the reduction, the Company must invest certain amounts in productive assets and research and development in Israel. In parallel to the temporary amendment, the law was also amended to reduce the ability of companies to retain the tax-exempt profits. Effective August 15, 2021, dividend distributions will be treated as if made on a pro-rata basis from all types of earnings, including Exempt Profits. As of December 31, 2021, tax-exempt income of approximately $198.7 million is attributable to the Company’s various Approved and Beneficiary Enterprise programs. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income, and taxes of approximately $19.9 million would be incurred as of December 31, 2021. Following recent Israeli court ruling, certain transactions (such as acquisitions and intercompany loans) may be treated as deemed dividend distributions for the purpose of the Encouragement Law triggering corporate tax on the respective amount of the transaction. A January 2011 amendment to the Investment Law (the “2011 Amendment”) created alternative benefit tracks to those previously in place, as follows: an investment grants track designed for enterprises located in certain development zones and two new tax benefits tracks (“Preferred Enterprise” and “Special Preferred Enterprise”), which provide for application of a unified tax rate to all preferred income of the company, as defined in the Investment Law. The 2011 Amendment canceled the availability of the benefits granted in accordance with the provisions of the Investment Law prior to 2011 and, instead, introduced new benefits for income generated by a “Preferred Company” through its "Preferred Enterprise" (as such terms are defined in the Investment Law) effective as of January 1, 2011 and thereafter. A Preferred Company is defined as either (i) a company incorporated in Israel which is not wholly owned by a governmental entity, or (ii) a limited partnership that: (a) was registered under the Israeli Partnerships Ordinance, and (b) all of its limited partners are companies incorporated in Israel, but not all of them are governmental entities; which has, among other things, Preferred Enterprise status and is controlled and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company was entitled to a reduced corporate tax rate of 16% with respect to its preferred income attributed to its Preferred Enterprise, unless the Preferred Enterprise was located in a certain development zone, in which case the rate was 9%. In 2017 and thereafter, the corporate tax rate for Preferred Enterprise which is located in a certain development zone was decreased to 7.5%, while the reduced corporate tax rate for other development zones remains 16%. Dividends paid out of preferred income attributed to a Preferred Enterprise is generally subject to withholding tax at source at the rate of 20%, or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty will apply. Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969 The Company is an “Industrial Company” as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. New Tax benefits under the 2017 Amendment that became effective on January 1, 2017. The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and was effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing tax beneficial programs under the Investment Law. The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a “Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income,” as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone A. In addition, a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain “Benefitted Intangible Assets” (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the National Authority for Technological Innovation, to which we refer as NATI. The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a “Special Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 6% on “Preferred Technology Income” regardless of the company’s geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefitted Intangible Assets” to a related foreign company if the Benefitted Intangible Assets were either developed by an Israeli company or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval from NATI. A Special Preferred Technology Enterprise that acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment Law. Dividends distributed by a Preferred Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company and other conditions are met, the withholding tax rate will be 4%. In 2021, the Company noticed the Israeli tax authorities that it waived the Approved / Beneficiary Enterprise regime starting from tax year 2021. The Company is currently considering its qualification for the 2017 amendment and the term and degree to which it may be qualified as a Preferred Technology Enterprise or Special Preferred Technology Enterprise. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 10. Contingencies During the fourth quarter of 2021, the Company reached preliminary settlement on an employee related matter in the US. The financial statements for the year ended December 31, 2021 The Company is a party to various other legal proceedings, the outcome of which, in the opinion of management, will not have a significant adverse effect on the financial position, profitability or cash flows of the Company. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11. Equity a. Share capital The Company’s issued share capital is composed of ordinary shares NIS 0.01 par value per share. Ordinary shares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. The Company’s ordinary shares are traded in the United States on the Nasdaq Global Select Market under the ticker symbol “SSYS”. As of December 31, 2021 and 2020, there were 65,677 thousand ordinary shares and 56,617 b. Stock-based compensation plans The Stratasys Ltd. 2012 Omnibus Equity Incentive Plan (the “2012 Plan”), which became effective upon closing of the Stratasys-Objet merger, provides for the grant of options, restricted shares, RSUs, PSUs and other share-based awards to the Company’s and its subsidiaries’ respective directors, employees, officers, consultants, and to any other person whose services are considered valuable to the Company or any of its affiliates. Under the 2012 plan, options, RSUs and PSUs generally have a contractual term of ten years from the grant date. Options granted become exercisable and RSUs are vested over the requisite service period, which is normally a four-year period beginning on the grant date, subject to continued service to the Company. PSUs are vested only upon the achievement of certain pre-determined performance metrics. Once the performance metrics are met, vesting of PSUs is subject to continued service to the Company over the requisite service period, which is normally a two-year to four-year period. As of December 31, 2021, 1.5 million shares were available for future equity awards under the 2012 plan. Stock options A summary of the stock option activity for the year ended December 31, 2021 is as follows: Number of Options Weighted Average Exercise Price Options outstanding as of December 31, 2020 2,102,529 $ 28.06 Granted 84,326 13.00 Exercised (399,911 ) 20.14 Forfeited (54,576 ) 37.72 Options outstanding as of December 31, 2021 1,732,368 $ 28.85 Options exercisable as of December 31, 2021 1,376,409 $ 31.99 The following table summarizes information about stock options outstanding at December 31, 2021: Options Outstanding Options Exercisable Outstanding Weighted- Average Weighted- Exercisable Weighted- options at Remaining Average options at Average Range of December 31, Contractual Exercise December 31, Exercise Exercise Prices 2021 Life in Years Price 2021 Price $ 0.76 - $ 19.66 799,417 6.71 $ 17.87 481,418 $ 19.32 $ 19.96 - $ 23.41 445,930 5.80 21.72 445,930 21.72 $ 24.66 - $ 91.56 476,942 3.22 52.28 438,982 54.64 $ 103.36 - $ 120.51 10,079 2.80 104.84 10,079 104.84 1,732,368 5.49 $ 28.85 1,376,409 $ 31.99 Aggregate intrinsic value (U.S. $ in thousands) $ 6,529 $ 3,725 As of December 31, 2021, the weighted-average remaining contractual life of exercisable options was 4.8 years. The total intrinsic value of options exercised during 2021, 2020 and 2019 was approximately $5.19 million, $0.04 million and $1.0 million, respectively. The Company used the Black-Scholes option-pricing model to determine the fair value of options granted during 2021 and 2020. No options were granted during 2019. The following assumptions were applied in determining the options’ fair value on their grant date: 2021 2020 Risk-free interest rate 0.4%-1.3% 0.4%-1.8% Expected option term (years) 5.0-5.1 5.0-5.1 Expected share price volatility 52.8%-58.7% 52.5%-52.8% Dividend yield - - Weighted average grant date fair value $14.99 $8.09 As of December 31, 2021, the Company had 0.4 million unvested options. As of December 31, 2021, the unrecognized compensation cost related to all unvested, equity-classified stock options of $2.7 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 3.0 years. Restricted Stock Units and Performance Stock Units A summary of the Company’s RSUs and PSUs activity for the year ended December 31, 2021 is as follows: Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs outstanding as of December 31, 2020 2,801,116 $ 21.08 Granted 1,378,782 33.66 Vested (729,565 ) 21.71 Forfeited (367,535 ) 22.71 Unvested RSUs outstanding as of December 31, 2021 3,082,798 $ 26.36 The total vesting-date value of equity classified RSUs vested during 2021 was $19.0 million. As of December 31, 2021, the unrecognized compensation cost related to all unvested equity classified RSUs and PSUs of $54.5 million is expected to be recognized as an expense on a straight-line basis over a weighted-average period of 2.1 years. Stock-based compensation expense for stock options and equity classified RSUs included in the Company’s Statements of Operations and Comprehensive Loss were allocated as follows: 2021 2020 2019 (U.S. $ in thousands) Cost of revenues $ 3,093 $ 1,771 $ 1,848 Research and development, net 6,564 6,102 5,167 Selling, general and administrative 21,320 12,331 13,549 Total stock-based compensation expenses $ 30,977 $ 20,204 $ 20,564 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, 2021, 2020 and 2019: Year ended December 31, 2021 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2021 $ (1,673 ) $ (7,173 ) $ (8,846 ) Other comprehensive loss before reclassifications 3,668 (2,603 ) 1,065 Amounts reclassified from accumulated other comprehensive loss (423 ) (567 ) (990 ) Other comprehensive income (loss), net of tax 3,245 (3,170 ) 75 Balance as of December 31, 2021 $ 1,572 $ 10,343 $ (8,771 ) Year ended December 31, 2020 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2020 $ (10 ) $ (7,706 ) $ (7,716 ) Other comprehensive loss before reclassifications (1,024 ) 533 (490 ) Amounts reclassified from accumulated other comprehensive loss (639 ) - (639 ) Other comprehensive income (loss) (1,663 ) 533 (1,130 ) Balance as of December 31, 2020 $ (1,673 ) $ (7,173 ) $ (8,846 ) Year ended December 31, 2019 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive loss before reclassifications 1,548 (580 ) 968 Amounts reclassified from accumulated other comprehensive loss (931 ) - (931 ) Other comprehensive income (loss) 617 (580 ) 37 Balance as of December 31, 2019 $ (10 ) $ (7,706 ) $ (7,716 ) d. Public offering of ordinary shares During March 2021, the Company completed a public offering of $218.9 million, net of $11.1 million underwriting discounts and offering expenses. The total number of shares sold by the Company in the public offering was 7,931,034. The Company recorded a deferred tax asset in respect of a tax benefit, arising from the underwriting discounts and offering expenses, as an increase to Additional Paid-In Capital. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 12. Derivatives and Hedging Activities The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), the Euro and the Japanese Yen. Gains and losses on the hedging instruments offset losses and gains on the hedged items. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Fair Value Notional Amount December 31, December 31, Balance sheet location 2021 2020 2021 2020 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 82 $ 56 $ 12,380 $ 36,882 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 910 793 60,408 10,417 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (89 ) (1,098 ) 33,047 37,999 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (60 ) (1,584 ) 26,320 50,186 $ 843 $ (1,833 ) $ 132,155 $ 135,484 Foreign exchange contracts not designated as hedging instruments As of December 31, 2021, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $45.4 million and were used to reduce foreign currency exposures of the Euro, New Israeli Shekel (the “NIS”), Japanese Yen, Korean Won and Chinese Yuan. With respect to such derivatives, gain of $2.9 million and loss of $6.2 million were recognized under financial income, net for the years ended December 31, 2021 and 2020 , respectively. Such gains partially offset the revaluation losses of the balance sheet items, which are also recognized under financial income, net. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Payroll and other operating expenses As of December 31, 2021 and 2020, the Company had in effect foreign exchange forward contracts for the conversion of $32.1 million and $10.4 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. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue We transact business in U.S. Dollars and in various other currencies. We may use foreign exchange or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months. We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. As of December 31, 2021, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of Euro 54.7 million in USD. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in fair value of these cash flow hedges in accumulated other comprehensive income (loss) in our consolidated balance sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to the same statement of operations Revenues Cost of revenues Research and development, net Selling, general and administrative Financial expenses (income), net Other comprehensive income (loss) December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ (607,219 ) (520,817 ) $ 347,141 $ 301,423 $ 88,303 $ 84,012 $ 250,937 $ 205,224 $ 2,075 $ 575 $ 75 $ (1,130 ) Foreign exchange contracts designated as a hedging instrument 914 235 (243 ) (198 ) (398 ) (279 ) (696 ) (397 ) - - 3,245 (1,663 ) Foreign exchange contracts not designated as a hedging instrument - - - - - - - - (2,870 ) 6,194 - - |
Entity-Wide Disclosure
Entity-Wide Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Entity-Wide Disclosure | Note 13. Entity-Wide Disclosure Revenues by geographic area for the years ended December 31, 2021, 2020 and 2019 were as follows*: Year ended December 31, 2021 2020 2019 (U.S. $ in thousands) Americas (primarily the United States) $ 388,323 $ 343,477 $ 415,862 EMEA 130,296 101,584 124,967 Asia Pacific 88,600 75,756 95,251 $ 607,219 $ 520,817 $ 636,080 * Revenues are attributed to geographic areas based on the location of customer. No single customer accounted for 10% or more of Company’s total revenues, or Company’s net accounts receivable, in any fiscal year presented. Property, plant and equipment and right-of-use assets of lessees Year ended December 31, 2021 2020 Americas (primarily the United States) $ 46,456 $ 67,208 EMEA 162,576 147,132 Asia Pacific 8,914 8,190 $ 217,946 $ 222,530 Property, plant and equipment that were located in Israel amounted to $136.4 million and $ 126.9 Right-of-use assets of lessees that were located in Israel amounted to$1.4 million and $2.5 million for the years ended December 31, 2021 and 2020 respectively and are included under the EMEA region in the above table. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net loss per Share | Note 14. Net loss per Share The following table presents the computation of basic and diluted net loss per share: Year ended December 31, 2021 2020 2019 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. for basic and diluted net loss per share $ (61,982 ) $ (443,721 ) $ (10,849 ) Denominator: Weighted average shares – denominator for basic and diluted net loss per share 63,471 54,918 54,260 Net loss per share Basic and diluted $ (0.98 ) $ (8.08 ) $ (0.20 ) The computation of diluted net loss per share for the years ended December 31, 2021, 2020 and 2019 excluded share awards of 4.8 million, 4.9 million and 4.3 million, respectively, because their inclusion would have had an anti-dilutive effect on the diluted net loss per share. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Leases | Note 15. Leases The Company’s o perating lease expenses are recognized on a straight-line basis. December 31, 2021 2020 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate $ 10,196 $ 10,102 $ 8,564 Total operating lease cost $ 10,196 $ 10,102 $ 8,564 Cash flow and other information related to operating leases were as follows: December 31, 2021 2020 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 9,829 $ 10,559 $ 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,955 $ 10,008 $ 7,246 December 31, 2021 2020 2019 Weighted-average remaining lease term — operating leases 2.59 years 3.00 years 3.18 years Weighted-average discount rate — operating leases 4.58 % 4.78 % 4.72 % Maturities of operating lease liabilities were as follows: December 31, 2021 (U.S. $ in thousands) 2022 $ 7,504 2023 5,118 2024 2,499 2025 538 2026 114 Total operating lease payments 15,773 Less: imputed interest (804 ) Present value of lease liabilities $ 14,969 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Stratasys Ltd., and its subsidiaries. All intercompany balances and transactions, including profits from intercompany sales not yet realized outside the Company, have been eliminated in consolidation. |
Functional Currency and Foreign Currency Transactions | Functional Currency and Foreign Currency Transactions A major part of the Company’s operations is carried out by Stratasys Ltd. in Israel and its subsidiaries in the United States. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of other subsidiaries is generally their local currency. The financial statements of those subsidiaries are included in the consolidated financial statements, based on translation into U.S. dollars. Assets and liabilities accounts are translated at year-end exchange rates, while revenues and expenses accounts are translated at average exchange rates during the year. The remeasurement adjustments of foreign currencies translation are included in the Company’s shareholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated financial statements. Gains and losses arising from foreign currency remeasurements of monetary balances denominated in non-functional currencies are reflected in financial income, net in the consolidated statements of operations and comprehensive loss. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may have a material impact on the Company’s financial statements. As applicable to these consolidated financial statements, the most significant estimates relate to revenue recognition, inventories measurement, valuation allowance, uncertain tax positions, recoverability of intangibles and goodwill and purchase price allocation In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences, of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, the accounting estimates and assumptions may change over time in response to COVID-19. Such changes could have an additional impact on the Company’s long-lived asset and intangible asset valuation; inventory valuation; and the allowance for expected credit losses. |
Bank Deposits | 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. |
Business Combinations | Business Combinations The Company allocates the fair value of consideration transferred in a 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 dates 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 deferred payments which are classified as liabilities and records the changes in their fair value in the consolidated statements of operations and comprehensive loss. Changes in the fair value of the obligations in connection with its business combinations can result from adjustments to the discount rates, the Company’s shares price, sales and profitability targets. 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. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations. |
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. |
Bank Deposits | Bank Deposits Bank deposits with original maturity dates of more than three months but at balance sheet date are less than one year are included in short-term depos its. |
Accounts Receivable, net | Accounts Receivable, net The Company adopted the Current Expected Credit Losses ("CECL") guidance effective January 1, 2020, with no material impact on its consolidated financial statements. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Allowance for due to the Company’s accounts receivable amounted to $517 thousand and $ thousand as of December 31, 20 1 and 2020, respectively. Changes in the allowance for are recognized in selling, general and administrative expenses. Accounts receivable are written-off against the allowance for when management deems the accounts are no longer collectible. The balance and the changes in the allowance for expected credit losses are comprised as follows: |
Derivative Instruments and Hedge Accounting | Derivative Instruments and Hedge Accounting The Company conducts its operations globally and may be exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign currency exchange rates. As part of the Company’s risk management strategy, the Company enters into transactions involving foreign currency exchange derivative financial instruments. For its non-hedging transactions, the Company manages its foreign currency exposures on a consolidated basis, which allows the Company to net exposures and take advantage of any natural hedging. The transactions are designed to manage the Company’s net exposure to foreign currency exchange rates and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Financial markets and currency volatility may limit the Company’s ability to hedge these exposures. The Company does not enter into derivative transactions for trading purposes. The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at their fair value. Derivatives in a gain position are reported in other current assets in the consolidated balance sheets and derivatives in a loss position are recorded in accrued expenses and other current liabilities in the consolidated balance sheets, on a gross basis. On the date that the Company enters into a derivative contract, it designates the derivative for accounting purposes, as either a hedging instrument which qualifies for hedge accounting or as a non-hedging instrument which does not qualify for hedge accounting. In order to qualify for hedge accounting, the Company formally documents at the inception of each hedging relationship the hedging instrument, the hedged item, the risk management objective and strategy for undertaking each hedging relationship, and the method used to assess hedge effectiveness. For non-hedging instruments, the Company records the changes in fair value of derivative instruments in financial income, net in the consolidated statements of operations and comprehensive loss. The cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Refer to Note 12 for further information regarding the Company’s derivative and hedging activities. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined mainly using standard cost, which approximates actual cost, on a first-in, first-out basis. Inventory costs consist of materials, direct labor and overhead. Net realizable value is determined based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company periodically assesses inventory for obsolescence and excess balances and reduces the carrying value by an amount equal to the difference between its cost and the net realizable value. The net realizable value is primarily estimated based on future demand forecasts, as well as, historical sales trends, product life cycle status and product development plans. |
Long-term Investments | Long-term 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. Under the equity method, the Company recognizes its proportionate share of the comprehensive income or loss of the investee. The Company’s share of profit or losses from equity method investments is included in share in profit or losses of associated companies. Other non-marketable equity securities without readily determinable fair value in which the Company does not have a controlling interest or significant influence are recorded at their original cost and adjusted for observable price changes for identical or similar instruments less any impairment. Marketable securities The Company reviews its unconsolidated long-term investments for potential impairment or other adjustments, which generally involves an analysis of the facts and changes in circumstances influencing the investments |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the lease term (including any renewal periods, if appropriate) or the estimated useful life of the asset. Repairs and maintenance are charged to expense as incurred, while betterments and improvements that extend the useful life or add functionality of property, plant and equipment are capitalized. Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 The Company reviews the carrying amounts of property, plant and equipment for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the assets or asset groups with the related estimated undiscounted future cash flows. In the event impairment exists, an impairment charge is recorded at the amount by which the carrying amount of the asset or asset group exceeds the fair value. In addition, the remaining depreciation period for the impaired asset would be reassessed and, if necessary, revised. Other Intangible Assets, net Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 9 Patents 10 Trade names 10 Customer relationships 9 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of revenues. Amortization of trade names, customer relationships and patents are recorded under selling, general and administrative expenses. |
Other Intangible Assets, net | Other Intangible Assets, net Intangible assets and their useful lives are as follows: Weighted Average Useful Life (in Years) Developed technology 9 Patents 10 Trade names 10 Customer relationships 9 Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of acquired developed technology is recorded in cost of revenues. Amortization of trade names, customer relationships and patents are recorded under selling, general and administrative expenses. For definite life intangible assets, the Company reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, the Company groups assets and liabilities at the lowest level such that the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Company then compares the carrying amounts of the asset or assets groups with their respective estimated undiscounted future cash flows. If the definite life intangible asset or assets group are determined to be impaired, an impairment charge is recorded at the amount by which the carrying amount of the asset or assets group exceeds their fair value. Fair value is determined by using an applicable discounted cash flow model. In addition, the remaining amortization period for the impaired asset would be reassessed and, if necessary, revised. Refer to Note 8 for further information. |
Goodwill | Goodwill Goodwill reflects the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter at the reporting unit level, or whenever events or circumstances present an indication of potential impairment which requires an interim goodwill impairment analysis. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. ASC 350, “Intangibles - Goodwill and other” (“ASC 350”) requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the quantitative goodwill impairment test two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the quantitative first step of the goodwill impairment test. If the carrying value of the reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. |
Retirement Plans and Employee Rights Upon Termination | Retirement Plans and Employee Rights Upon Termination Under Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 ( ” ” Severance pay liabilities with respect to for the Company’s employees in Israel who are not subject to Section 14, as well as employees who have special contractual arrangements, are provided for in the Company’s consolidated financial statements based on the length of time that they work for the Israeli entity and their latest monthly salary. The Company’s liabilities for those Israeli employees, in the amounts of $3.2 million and $4.1 million as of December 31, 2021 and 2020, respectively, are presented as other non-current liabilities in the Company’s consolidated balance sheets. These liabilities are recorded as if it was payable at each balance sheet date. These liabilities are partially funded by the purchase of insurance policies or by the establishment of pension funds with dedicated deposits in the funds. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. As of December 31, 2021 and 2020, the Company had $3.2 million and $3.1 million, respectively, deposited in these insurance policies and pension funds. These policies are the Company’s assets. However, under employment agreements and subject to certain limitations, any policy may be transferred to the ownership of the individual employee for whose benefit the funds were deposited. In addition, the Company has liabilities for severance payments to its employees in other jurisdictions in accordance with local laws and practices of the countries in which they are employed. Severance expenses for the years ended December 31, 2021, 2020 and 2019 were $3.4 million, $9.1 million and $4.0 million, respectively. For its employees in the United States, the Company has a defined contribution retirement plan (the “Plan”) under the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) that covers eligible U.S. employees as defined in the Plan. Participants may elect to contribute both pre-tax or after-tax (“Roth”) up to 50% of annual taxable compensation, as defined by the Plan, up to a maximum amount prescribed by the Code. The Company, at its discretion, makes matching contributions equal 4% of the participant’s annual compensation. For the years ended December 31, 2021, 2020 and 2019 the Company made 401(k) Plan contributions of approximately $4.0 million, $4.1 million and $4.2 million respectively. |
Contingent Liabilities | Contingent Liabilities The Company is subject to various legal proceedings that arise from time to time in the ordinary course of business. The outcomes of the legal proceedings that are pending as of the date the financial statements are issued are subject to significant uncertainty. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that loss would be incurred and the amount of the liability can be reasonably estimated, then the Company would record an accrued expense in the Company’s financial statements based on its best estimate. Loss contingencies considered to be remote by management are generally not disclosed unless material. The respective legal fees are expensed as incurred. |
Redeemable Non-controlling Interests | Redeemable Non-controlling Interests Non-controlling interests with embedded redemption features, such as put options, whose settlement is not at the Company’s discretion, are considered redeemable non-controlling interests. Redeemable non-controlling interests are considered to be temporary equity and are therefore presented as a mezzanine section between liabilities and equity on the Company’s consolidated balance sheets. Redeemable non-controlling interests are measured at the greater of the initial carrying amount adjusted for the non-controlling interest’s share of comprehensive income or loss or its redemption value. Adjustments of redeemable non-controlling interest to its redemption value are recorded through additional paid-in capital. |
Business Combinations | Revenue Recognition The Company derives revenues from sales of additive manufacturing systems, consumables and services. The Company sells its products directly through its sales force, independent sales agents and indirectly through authorized resellers. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services to the end customer or to the reseller. The amount of consideration is usually at fixed price at the contract inception. Consideration from Shipping and handling are recorded on a gross basis within product revenue. Revenues are recorded net of any taxes assessed by various government entities, such as sales, use and value-added taxes. Revenue from products, which consist of systems and consumables, is recognized when the customer has obtained control of the goods, generally at a point in time upon shipment or once delivery and risk of loss has transferred to the customer. The Company recognizes revenue on sales to resellers when the reseller has economic substance apart from the Company and the reseller is considered the principal for the transaction with the end-user customer. Service revenue derives from service type warranty The Company enters into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. Products or services that are promised to a customer can be considered distinct if both of the following criteria are met: (i) the customer can benefit from the products or services either on its own or together with other readily available resources, and (ii) the Company’s promise to transfer the products or services to the customer is separately identifiable from other promises in the contract. The transaction price is allocated to each distinct performance obligations on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. In assessing collectability as part of the revenue recognition process, the Company considers a number of factors in the evaluation of the creditworthiness of the customer, including past due amounts, payment history and financial condition. In some cases where collectability is not assured, payment terms are set partially or entirely as prepayment or customers may be required to furnish letters of credit. See Note 3 for additional information related to disaggregation of revenue and other. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are classified as cost of revenues. |
Advertising | Advertising Advertising costs are expensed as incurred and were approximately $4.5 million, $6.3 million and $16.2 million, for the years ended December 31, 2021, 2020 and 2019, respectively. |
Research and Development Expenses | Research and Development Expenses Research and development costs consist primarily of employee compensation expenses, materials, laboratory supplies, costs for related software and costs for facilities and equipment. Expenditures for research and development are expensed as incurred. Government reimbursements and other participations for development of approved projects are recognized as a reduction of expenses as the related costs are incurred. The Company is not required to pay royalties on sales of products developed using its government funding. |
Income Taxes | Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions where it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. Deferred taxes have not been provided on the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. 2) Dividends distributable from the income of foreign companies as the Company does not expect these companies to distribute dividends in the foreseeable future. If these dividends were to be paid, the Company would have to pay additional taxes at a rate of up to 25% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. Amounts of tax-exempt income generated from the Company’s current Approved Enterprises (see note 9c), as the Company intends to permanently reinvest these profits and does not intend to distribute dividends from such income. If these dividends were to be paid, the Company would have to pay additional taxes at a rate up to 10% on the distribution, and the amount would be recorded as an income tax expense in the period the dividend is declared. |
Valuation Allowances | Valuation Allowances Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In the determination of the appropriate valuation allowances, the Company considers future reversals of existing taxable temporary differences, the most recent projections of future business results, prior earnings history, carryback and carry forward and prudent tax strategies that may enhance the likelihood of realization of a deferred tax asset. Assessments for the realization of deferred tax assets made at a given balance sheet date are subject to change in the future, particularly if earnings of a subsidiary are significantly higher or lower than expected, or if the Company takes operational or tax positions that could impact the future taxable earnings of a subsidiary. |
Uncertain Tax Positions | Uncertain Tax Positions The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is performed only if the tax position meets the more-likely-than-not recognition threshold and is to measure the tax benefit as the amount which is more than 50% likely of being realized upon ultimate settlement. The Company reevaluates these tax positions quarterly and makes adjustments as required. The liabilities relating to uncertain tax positions are classified as current in the consolidated balance sheets to the extent the Company anticipates making payments within one year. The Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions under the provision for income taxes. The Company presents unrecognized tax benefits as a reduction to deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward that are available, under the tax law of the applicable jurisdiction, to offset any additional income taxes that would result from the settlement of a tax position. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for its equity classified stock-based awards, including stock-based option awards, restricted stock units (“RSUs”) and performance stock units ( “ ” The Company calculates the fair value of stock-based option awards on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The computation of expected volatility is based on historical volatility of the Company’s shares. The expected option term is calculated using the simplified method , Each of the above factors requires the Company to use judgment and make estimates in determining the percentages and time periods used for the calculation. If the Company were to use different percentages or time periods, the fair value of stock-based option awards could be different. The fair values of the Company’s RSUs and PSUs are measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes compensation expenses for its stock-based option awards and RSUs on a straight-line basis over the requisite service period (primarily a four-year period). The Company accounts for forfeitures as they occur. The Company recognizes compensation expenses for its PSUs based on the probability that the performance metrics will be achieved over the vesting period. At each reporting period the Company evaluates the probability that its PSUs will be earned and adjust its previously recognized compensation expense as necessary. If the achievement of the respective performance metrics is not probable or the respective performance are not met the Company reverses its previously recognized compensation expense. |
Restructuring Plan | Restructuring Plan The Company may incur restructuring charges in connection with certain initiatives designed to adjust the Company’s cost and operating structure, improve efficiencies across the Company and to better align with the Company’s long-term strategy and overall market conditions. Restructuring charges include employee severance and associated termination costs related to the reduction of workforce, costs related to facilities closures, impairment charges of the respective long-lived assets and contract termination costs. Restructuring charges for employees’ termination costs are recognized when the required actions to execute the restructuring initiative were performed and the initiatives are probable and costs are estimable. Restructuring charges for facilities and contract terminations are recognized when the Company ceased using the rights conveyed by the contract. Significant judgments and estimates are involved in estimating the impact of restructuring plans on the Company’s consolidated financial statements. Actual results may differ from these estimates. |
Loss per Share | Loss per Share Basic loss per share is computed by dividing net income (loss) attributable to ordinary shareholders of Stratasys Ltd. by the weighted average number of ordinary shares (including fully vested RSUs and PSUs) outstanding for the reporting periods. The denominator for diluted net loss per share is a computation of the weighted-average number of ordinary shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive shares outstanding include the dilutive effect of in-the-money options and unvested RSUs using the treasury stock method. PSUs are considered contingently issuable shares for diluted net loss per share purposes and the dilutive impact, if any, is not included in the weighted average shares until the performance conditions are met. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short term deposits, accounts receivables, and foreign currency exchange forward contracts. Most of the Company’s cash and cash equivalents and bank deposits 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 and bank deposits is low. Concentration of credit risk with respect to accounts receivable is limited due to the relatively large number of customers and their wide geographic distribution. In addition, the Company seeks to mitigate its credit exposures to its accounts receivable by credit limits, credit insurance, ongoing credit evaluation and account monitoring procedures. |
Leases | Leases The Company adopted the new lease accounting guidance on January 1, 2019, using a modified retrospective transition approach, with certain practical expedients, and as a result did not adjust prior periods. Following the adoption, the Company recognized right-of-use assets of $27.4 million and lease liabilities of $27.9 million for its operating leases. The Company does not have finance leases. The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, The Company classifies the lease as a finance lease; otherwise, the Company classifies the lease as an operating lease. When determining lease classification, the Company’s approach in assessing two of the mentioned criteria is: (i) generally 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheet. ROU assets represent Stratasys's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition, but recognizes lease expenses over the lease term on a straight-line basis. The Company also elected the practical expedient to not separate lease and non-lease components for all of the Company leases, other than leases of real estate. Lease terms will include options to extend or terminate the lease when it is reasonably certain that Stratasys will exercise or not exercise the option to renew or terminate the lease. The Company is a party to several lease agreements for its facilities, the latest of which has been extended until September 2026. The Company has the option to extend certain agreements for additional periods, the earliest of which is until the start of J 202 and the latest is until the end of October 2028. During the extended lease period, the aggregate annual rental payments will increase by 2% to % each year. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements Accounting Pronouncements Adopted in 2021 In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company expect to adopt this guidance effective January 1, 2021, with no material impact on its consolidated financial statements. Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40).” This guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The amendments to this guidance are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. In October 2021, the FASB issued ASU 2021-08 “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquire. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company does not expect it to have a material impact on its consolidated financial statements. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of changes in the allowance for credit losses | Year ended December 31 2021 2020 2019 U.S. $ in thousands Balance at beginning of year $ 870 $ 939 $ 1,110 Increase during the year 50 454 223 Bad debt written off (403 ) (523 ) (394 ) Balance at end of year $ 517 $ 870 $ 939 |
Schedule of estimated useful lives | Useful Life in Years Buildings 25 - 40 Machinery and equipment 5 - 10 Buildings improvements 5 - 10 Computer equipment and software 3 - 5 Office equipment, furniture and fixtures 5 - 14 |
Schedule of useful lives of intangible assets | Weighted Average Useful Life (in Years) Developed technology 9 Patents 10 Trade names 10 Customer relationships 9 |
Certain Transactions (Tables)
Certain Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Certain Transactions [Abstract] | |
Schedule of fair value of the consideration transferred to origin stockholders for the origin transaction | U.S. $ in thousands Cash payments $ 33,025 Issuance of ordinary shares to Origin stockholders 26,636 Contingent consideration at estimated fair value 37,400 Total consideration $ 97,061 U.S. $ in thousands Cash payments $ 13,967 Contingent consideration at estimated fair value 15,314 Total consideration for 55% holding 29,281 Fair value of 45% holding 23,775 Total consideration $ 53,056 |
Schedule of preliminary allocation of the purchase price to assets acquired and liabilities | Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 2,083 Goodwill 38,104 Intangible assets 71,120 Other assets 3,493 Total assets acquired 114,800 Net deferred tax liabilities 14,007 Other labilities 3,732 Total liabilities assumed 17,739 Net assets acquired $ 97,061 Allocation of Purchase Price (U.S. $ in thousands) Cash and cash equivalents $ 82 Goodwill 25,375 Intangible assets 45,000 Other assets 5,280 Total assets acquired 75,737 Net deferred tax liabilities 1,736 Other liabilities 20,945 Total liabilities assumed 22,681 Net assets acquired $ 53,056 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of disaggregated by geographical region | Year ended December 31, 2021 2020 2019 (U.S. $ in thousands) Americas Systems $ 124,311 $ 98,884 $ 127,198 Consumables 121,245 106,857 129,921 Service 142,767 137,736 158,743 Total Americas 388,323 343,477 415,862 EMEA Systems 42,077 29,584 39,810 Consumables 61,192 48,521 58,883 Service 27,027 23,479 26,274 Total EMEA 130,296 101,584 124,967 Asia Pacific Systems 33,110 22,266 36,000 Consumables 35,623 33,670 38,934 Service 19,867 19,820 20,317 Total Asia Pacific 88,600 75,756 95,251 Total Revenues $ 607,219 $ 520,817 $ 636,080 |
Schedule of disaggregation of revenues | Year ended December 31, 2021 2020 2019 Revenues recognized in point in time from: Products $ 417,557 $ 339,782 $ 430,746 Services 46,049 40,405 43,885 Total revenues recognized in point in time 463,606 380,187 474,631 Revenues recognized over time from: Services 143,613 140,630 161,449 Total revenues recognized over time 143,613 140,630 161,449 Total Revenues $ 607,219 $ 520,817 $ 636,080 |
Schedule of changes in deferred revenue | December 31, 2021 2020 U.S. $ in thousands Deferred revenue* $ 72,307 $ 63,392 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities carried at fair value on a recurring basis | December 31, 2021 December 31, 2020 Level 2 Level 3 Level 2 Level 3 (U.S. $ in thousands) Assets: Foreign exchange forward contracts not designated as hedging instruments $ 82 $ - $ 56 $ - Foreign exchange forward contracts designated as hedging instruments 910 - 793 - Liabilities: Foreign exchange forward contracts not designated as hedging instruments (89 ) - (1,098 ) - Foreign exchange forward contracts designated as hedging instruments (60 ) - (1,584 ) - Contingent consideration - 55,919 - 37,400 $ 843 $ 55,919 $ (1,833 ) $ 37,400 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2021 2020 U.S. $ in thousands Finished goods $ 58,784 $ 61,297 Work-in-process 4,360 3,163 Raw materials 66,003 67,212 $ 129,147 $ 131,672 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, 2021 2020 (U.S. $ in thousands) Machinery and equipment $ 157,692 $ 147,531 Buildings and improvements 178,025 172,868 Computer equipment and software 51,311 49,233 Office equipment, furniture and fixtures 14,723 13,966 Land 19,079 19,302 420,830 402,900 Accumulated depreciation (219,357 ) (202,556 ) 201,473 200,344 Construction work in progress 1,822 888 $ 203,295 $ 201,232 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Goodwill [Abstract] | |
Schedule of changes in the carrying amount of goodwill | 2021 2020 (U.S. $ in thousands) Balance at January 1, $ 35,694 $ 385,658 Goodwill acquired 27,092 35,694 Goodwill impairment charges - (386,154 ) Measurement period adjustments 2,410 - Currency translation adjustments (52 ) 496 Balance at December 31, $ 65,144 $ 35,694 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | December 31, 2021 December 31, 2020 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 $ 406,578 $ (279,037 ) $ 127,541 $ 357,863 $ (260,123 ) $ 97,740 Patents 16,220 (8,503 ) 7,717 17,699 (8,487 ) 9,212 Trademarks and trade names 26,055 (22,241 ) 3,814 26,036 (21,114 ) 4,922 Customer relationships 100,731 (87,559 ) 13,172 101,107 (81,413 ) 19,695 Capitalized software development costs 7,410 (7,410 ) - 7,410 (7,410 ) - $ 556,994 $ (404,750 ) $ 152,244 $ 510,115 $ (378,547 ) $ 131,569 |
Schedule of estimated amortization expense relating to intangible assets | Estimated amortization expenses Year ending December 31, (U.S. $ in thousands) 2022 36,626 2023 22,106 2024 18,188 2025 15,600 2026 15,517 2027 and thereafter 44,207 Total 152,244 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of company's deferred tax assets and liabilities | December 31, 2021 2020 (U.S. $ in thousands) Deferred tax assets Tax losses carry forwards $ 671,458 $ 645,318 Inventory related 4,210 3,892 Intangible assets 12,783 19,081 Provision for employee related obligations 1,186 557 Stock-based compensation 9,528 7,507 Deferred revenue 2,257 1,871 Property, plant and equipment 630 835 Allowance for credit losses 143 249 Foreign currency losses 358 278 Research and development credit carry forwards 15,933 16,693 Gross deferred tax assets 718,486 696,281 Valuation allowance (693,120 ) (661,979 ) Total deferred tax assets 25,366 34,302 Deferred tax liabilities Intangibles assets (12,533 ) (21,567 ) Property, plant and equipment (17,991 ) (2,847 ) Other items (882 ) (4,344 ) Total deferred tax liabilities (31,406 ) (28,758 ) Net deferred tax assets (liabilities) $ (6,040 ) $ 5,544 |
Schedule of deferred tax assets and liabilities classified in consolidated balance sheets | December 31, 2021 2020 (U.S. $ in thousands) Deferred tax assets (under "Other non-current assets") $ 1,301 $ 5,586 Deferred tax liabilities 7,341 42 Net deferred tax assets (liabilities) $ (6,040 ) $ 5,544 |
Schedule of valuation allowance | Valuation allowance U.S. $ in thousands Balance at January 1, 2019 $ 152,659 Decrease (888 ) Balance at December 31, 2019 151,771 Additions 524,215 Decrease (14,007 ) Balance at December 31, 2020 661,979 Additions 31,141 Balance at December 31, 2021 $ 693,120 |
Schedule of loss before Income Taxes | 2021 2020 2019 (U.S. $ in thousands) Domestic $ (50,193 ) $ (381,935 ) $ (11,895 ) Foreign (16,644 ) (74,636 ) 4,751 $ (66,837 ) $ (456,571 ) $ (7,144 ) |
Schedule of components of income taxes | 2021 2020 2019 (U.S. $ in thousands) Current Domestic $ (14,146 ) $ 4,992 $ 3,392 Foreign 2,141 (3,902 ) 2,524 (12,005 ) 1,090 5,916 Deferred Domestic 8,745 (4,112 ) (2,007 ) Foreign (646 ) (13,372 ) (386 ) 8,099 (17,484 ) (2,393 ) Total income taxes $ (3,906 ) $ (16,394 ) $ 3,523 |
Schedule of reconciliation of income tax rate | 2021 2020 2019 Statutory tax rate 23.0 % 23.0 % 23.0 % Reduced tax rate under Israeli benefit programs 6.2 (1.4 ) 18.0 Goodwill impairment - (17.5 ) - Stock-based compensation expense (3.5 ) (0.5 ) (21.0 ) Non-deductible acquisition expenses (0.1 ) - (1.4 ) Earnings taxed under foreign law 10.8 (4.1 ) (14.9 ) Valuation Allowance (42.7 ) 3.1 - Changes in uncertain tax positions 17.9 1 (59.8 ) Deferred Tax due to different tax rates (6.1 ) 0.1 11.2 Non recurring Capital gain - - 11.5 Withholding tax (0.1 ) - (1.7 ) Other 0.4 (0.1 ) (2.6 ) Effective income tax rate 5.8 % 3.6 % (48.9 )% |
Schedule of beginning and ending balance of uncertain tax positions | 2021 2020 2019 (U.S. $ in thousands) Balance at beginning of year $ 23,389 $ 25,517 $ 22,044 Additions for tax positions related to the current year 3,826 312 2,336 Foreign currency impact 2,918 3,017 1,353 Adjustments for tax positions related tax settlements (26,685 ) - - Reduction of reserve for statute expirations (433 ) (5,457 ) (216 ) Balance at end of year $ 3,015 $ 23,389 $ 25,517 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock option activity | Number of Options Weighted Average Exercise Price Options outstanding as of December 31, 2020 2,102,529 $ 28.06 Granted 84,326 13.00 Exercised (399,911 ) 20.14 Forfeited (54,576 ) 37.72 Options outstanding as of December 31, 2021 1,732,368 $ 28.85 Options exercisable as of December 31, 2021 1,376,409 $ 31.99 |
Schedule of Stock Options Outstanding | Options Outstanding Options Exercisable Outstanding Weighted- Average Weighted- Exercisable Weighted- options at Remaining Average options at Average Range of December 31, Contractual Exercise December 31, Exercise Exercise Prices 2021 Life in Years Price 2021 Price $ 0.76 - $ 19.66 799,417 6.71 $ 17.87 481,418 $ 19.32 $ 19.96 - $ 23.41 445,930 5.80 21.72 445,930 21.72 $ 24.66 - $ 91.56 476,942 3.22 52.28 438,982 54.64 $ 103.36 - $ 120.51 10,079 2.80 104.84 10,079 104.84 1,732,368 5.49 $ 28.85 1,376,409 $ 31.99 Aggregate intrinsic value (U.S. $ in thousands) $ 6,529 $ 3,725 |
Schedule of Stock Option Assumptions | 2021 2020 Risk-free interest rate 0.4%-1.3% 0.4%-1.8% Expected option term (years) 5.0-5.1 5.0-5.1 Expected share price volatility 52.8%-58.7% 52.5%-52.8% Dividend yield - - Weighted average grant date fair value $14.99 $8.09 |
Schedule of RSUs and PSUs activity | Number of RSUs and PSUs Weighted Average Grant Date Fair Value Unvested RSUs outstanding as of December 31, 2020 2,801,116 $ 21.08 Granted 1,378,782 33.66 Vested (729,565 ) 21.71 Forfeited (367,535 ) 22.71 Unvested RSUs outstanding as of December 31, 2021 3,082,798 $ 26.36 |
Schedule of stock-based compensation expense | 2021 2020 2019 (U.S. $ in thousands) Cost of revenues $ 3,093 $ 1,771 $ 1,848 Research and development, net 6,564 6,102 5,167 Selling, general and administrative 21,320 12,331 13,549 Total stock-based compensation expenses $ 30,977 $ 20,204 $ 20,564 |
Schedule of accumulated other comprehensive loss | Year ended December 31, 2021 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2021 $ (1,673 ) $ (7,173 ) $ (8,846 ) Other comprehensive loss before reclassifications 3,668 (2,603 ) 1,065 Amounts reclassified from accumulated other comprehensive loss (423 ) (567 ) (990 ) Other comprehensive income (loss), net of tax 3,245 (3,170 ) 75 Balance as of December 31, 2021 $ 1,572 $ 10,343 $ (8,771 ) Year ended December 31, 2020 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2020 $ (10 ) $ (7,706 ) $ (7,716 ) Other comprehensive loss before reclassifications (1,024 ) 533 (490 ) Amounts reclassified from accumulated other comprehensive loss (639 ) - (639 ) Other comprehensive income (loss) (1,663 ) 533 (1,130 ) Balance as of December 31, 2020 $ (1,673 ) $ (7,173 ) $ (8,846 ) Year ended December 31, 2019 Net unrealized gain (loss) on cash flow hedges Foreign currency translation adjustments Total U.S. $ in thousands Balance as of January 1, 2019 $ (627 ) $ (7,126 ) $ (7,753 ) Other comprehensive loss before reclassifications 1,548 (580 ) 968 Amounts reclassified from accumulated other comprehensive loss (931 ) - (931 ) Other comprehensive income (loss) 617 (580 ) 37 Balance as of December 31, 2019 $ (10 ) $ (7,706 ) $ (7,716 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet classification and fair values of derivative instruments | Fair Value Notional Amount December 31, December 31, Balance sheet location 2021 2020 2021 2020 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as hedging instruments Other current assets $ 82 $ 56 $ 12,380 $ 36,882 Assets derivatives -Foreign exchange contracts, designated as cash flow hedge Other current assets 910 793 60,408 10,417 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Accrued expenses and other current liabilities (89 ) (1,098 ) 33,047 37,999 Liability derivatives -Foreign exchange contracts, designated as cash flow hedge Accrued expenses and other current liabilities (60 ) (1,584 ) 26,320 50,186 $ 843 $ (1,833 ) $ 132,155 $ 135,484 |
Schedule of cash flow hedging instruments location in income statement | Revenues Cost of revenues Research and development, net Selling, general and administrative Financial expenses (income), net Other comprehensive income (loss) December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 (U.S. $ in thousands) Line items in which effects of hedges are recorded $ (607,219 ) (520,817 ) $ 347,141 $ 301,423 $ 88,303 $ 84,012 $ 250,937 $ 205,224 $ 2,075 $ 575 $ 75 $ (1,130 ) Foreign exchange contracts designated as a hedging instrument 914 235 (243 ) (198 ) (398 ) (279 ) (696 ) (397 ) - - 3,245 (1,663 ) Foreign exchange contracts not designated as a hedging instrument - - - - - - - - (2,870 ) 6,194 - - |
Entity-Wide Disclosure (Tables)
Entity-Wide Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of net sales by geographical area | Year ended December 31, 2021 2020 2019 (U.S. $ in thousands) Americas (primarily the United States) $ 388,323 $ 343,477 $ 415,862 EMEA 130,296 101,584 124,967 Asia Pacific 88,600 75,756 95,251 $ 607,219 $ 520,817 $ 636,080 |
Schedule of property, plant and equipment by geographical location | Year ended December 31, 2021 2020 Americas (primarily the United States) $ 46,456 $ 67,208 EMEA 162,576 147,132 Asia Pacific 8,914 8,190 $ 217,946 $ 222,530 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted net loss per share | Year ended December 31, 2021 2020 2019 (In thousands, except per share amounts) Numerator: Net loss attributable to Stratasys Ltd. for basic and diluted net loss per share $ (61,982 ) $ (443,721 ) $ (10,849 ) Denominator: Weighted average shares – denominator for basic and diluted net loss per share 63,471 54,918 54,260 Net loss per share Basic and diluted $ (0.98 ) $ (8.08 ) $ (0.20 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of operating lease cost | December 31, 2021 2020 2019 (U.S. $ in thousands) Operating lease cost: Fixed payments and variable payments that depend on an index or rate $ 10,196 $ 10,102 $ 8,564 Total operating lease cost $ 10,196 $ 10,102 $ 8,564 |
Schedule of other information related to operating leases | December 31, 2021 2020 2019 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 9,829 $ 10,559 $ 9,685 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,955 $ 10,008 $ 7,246 |
Schedule of weighted-average operating leases | December 31, 2021 2020 2019 Weighted-average remaining lease term — operating leases 2.59 years 3.00 years 3.18 years Weighted-average discount rate — operating leases 4.58 % 4.78 % 4.72 % |
Schedule of maturities of operating lease liabilities | December 31, 2021 (U.S. $ in thousands) 2022 $ 7,504 2023 5,118 2024 2,499 2025 538 2026 114 Total operating lease payments 15,773 Less: imputed interest (804 ) Present value of lease liabilities $ 14,969 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Business acquisition, description | The Company’s approximately 1,700 granted and pending additive technology patents to date have been used to create models, prototypes, manufacturing tools, and production parts for a multitude of industries including aerospace, automotive, transportation, healthcare, consumer products, dental, medical, and education. | ||
Accounts receivable, net of allowance for credit losses | $ 517 | $ 870 | |
Severance pay liabilities | 3,200 | 4,100 | |
Deposit in insurance policies and pension funds | 3,200 | 3,100 | |
Severance expenses | $ 3,400 | 9,100 | $ 4,000 |
Annual taxable, percentage | 50.00% | ||
Annual compensation, percentage | 4.00% | ||
401(k) Plan contributions | $ 4,000 | 4,100 | 4,200 |
Advertising costs | $ 4,500 | 6,300 | $ 16,200 |
Income tax, percentage | 25.00% | ||
Maximum additional tax rate on distribution of dividends | 10.00% | ||
Settlement percentage | 50.00% | ||
Right of use assets | $ 27,400 | $ 27,900 | |
Remaining economic life of the underlying asset | 75.00% | ||
Fair value of the underlying asset | 90.00% | ||
Short term lease recognition, term | 12 months | ||
Leases description | The Company is a party to several lease agreements for its facilities, the latest of which has been extended until September 2026. |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of changes in the allowance for credit losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of changes in the allowance for credit losses [Abstract] | |||
Balance at beginning of year | $ 870 | $ 939 | $ 1,110 |
Increase during the year | 50 | 454 | 223 |
Bad debt written off | (403) | (523) | (394) |
Balance at end of year | $ 517 | $ 870 | $ 939 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2021 | |
Minimum [Member] | Buildings [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 25 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Minimum [Member] | Buildings improvements [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Minimum [Member] | Computer Equipment and Software [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 3 years |
Minimum [Member] | Office equipment, furniture and fixtures [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Maximum [Member] | Buildings [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 40 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 10 years |
Maximum [Member] | Buildings improvements [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 10 years |
Maximum [Member] | Computer Equipment and Software [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 5 years |
Maximum [Member] | Office equipment, furniture and fixtures [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Useful lives | 14 years |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Developed technology [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 9 years |
Patents [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 10 years |
Trade names [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 10 years |
Customer relationships [Member] | |
Nature of Operations and Summary of Significant Accounting Policies (Details) - Schedule of useful lives of intangible assets [Line Items] | |
Intangible asset, useful life | 9 years |
Certain Transactions (Details)
Certain Transactions (Details) - USD ($) $ in Thousands | Nov. 01, 2021 | Feb. 16, 2021 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 02, 2020 |
Certain Transactions (Details) [Line Items] | |||||||||
Aggregate purchase price | $ 97,100 | ||||||||
Exchange agreement description | In exchange for 100% of the outstanding shares of Origin the Company issued 1,488 thousand ordinary shares, paid cash upon closing and is obligated to pay additional payments (combination of cash and shares) subject to performance-based earnouts over 3 years. | ||||||||
Description of contingent payments | The total contingent payments could reach to a maximum aggregate amount of up to $40 million. Approximately 50% of the payments shall be settled in cash, and 50% shall be settled through the issuance of ordinary shares. | ||||||||
Additional payment amount | $ 6,000 | ||||||||
Retention period | 3 years | ||||||||
Compensation expenses. | $ 4,300 | ||||||||
Intangible asset | $ 45,000 | ||||||||
Intangible asset useful-life | 7 years | ||||||||
Aggregate purchase price | $ 29,300 | ||||||||
Additional earn-out payment | 15 years | ||||||||
Fair value | $ 23,800 | ||||||||
Gain | 14,400 | ||||||||
Foreign currency gain | 600 | ||||||||
Total contingent payments aggregate amount | 21,000 | ||||||||
Liability amount | 14,000 | ||||||||
Exchange for outstanding shares, percentage | 100.00% | ||||||||
Based earn-outs over term | 2 years | ||||||||
Changes in fair value of equity investment | 600 | ||||||||
Net gain on divestiture of minority interest | 1,301 | ||||||||
Restructuring plan, percentage | 10.00% | ||||||||
Employee related charges | 6,400 | ||||||||
Other related charges | $ 3,900 | ||||||||
XAAR [Member] | |||||||||
Certain Transactions (Details) [Line Items] | |||||||||
Remaining acquire share, percentage | 55.00% | ||||||||
Consideration paid | 29,281 | ||||||||
Related to Developed Technology [Member] | |||||||||
Certain Transactions (Details) [Line Items] | |||||||||
Intangible asset | $ 71,000 | ||||||||
Intangible asset useful-life | 10 years | ||||||||
XAAR [Member] | |||||||||
Certain Transactions (Details) [Line Items] | |||||||||
Investment, description | the Company entered into an agreement with Xaar plc (“Xaar”) to purchase additional shares of Xaar 3D that will increase its stake from 15 to 45 percent, with Xaar retaining the remaining 55 percent. | ||||||||
Additional interest amount | $ 15,700 | ||||||||
LPW Technology [Member] | |||||||||
Certain Transactions (Details) [Line Items] | |||||||||
Consideration paid | $ 3,600 | ||||||||
Unconsolidated Entity [Member] | |||||||||
Certain Transactions (Details) [Line Items] | |||||||||
Net gain on divestiture of minority interest | $ 11,800 |
Certain Transactions (Details)
Certain Transactions (Details) - Schedule of fair value of the consideration transferred to origin stockholders for the origin transaction $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Cash payments | $ 33,025 |
Issuance of ordinary shares to Origin stockholders | 26,636 |
Contingent consideration at estimated fair value | 37,400 |
Total consideration | 97,061 |
Xaar 3D [Member] | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Cash payments | 13,967 |
Contingent consideration at estimated fair value | 15,314 |
Total consideration for 55% holding | 29,281 |
Fair value of 45% holding | 23,775 |
Total consideration | $ 53,056 |
Certain Transactions (Details_2
Certain Transactions (Details) - Schedule of fair value of the consideration transferred to origin stockholders for the origin transaction (Parentheticals) - Xaar 3D [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |
Consideration rate | 55.00% |
Fair value rate | 45.00% |
Certain Transactions (Details_3
Certain Transactions (Details) - Schedule of preliminary allocation of the purchase price to assets acquired and liabilities $ in Thousands | Dec. 31, 2021USD ($) |
Certain Transactions (Details) - Schedule of preliminary allocation of the purchase price to assets acquired and liabilities [Line Items] | |
Cash and cash equivalents | $ 2,083 |
Goodwill | 38,104 |
Intangible assets | 71,120 |
Other assets | 3,493 |
Total assets acquired | 114,800 |
Net deferred tax liabilities | 14,007 |
Other liabilities | 3,732 |
Total liabilities assumed | 17,739 |
Net assets acquired | 97,061 |
Xaar 3D Ltd. [Member] | |
Certain Transactions (Details) - Schedule of preliminary allocation of the purchase price to assets acquired and liabilities [Line Items] | |
Cash and cash equivalents | 82 |
Goodwill | 25,375 |
Intangible assets | 45,000 |
Other assets | 5,280 |
Total assets acquired | 75,737 |
Net deferred tax liabilities | 1,736 |
Other liabilities | 20,945 |
Total liabilities assumed | 22,681 |
Net assets acquired | $ 53,056 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Jan. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue Recognition [Abstract] | ||||
Deferred revenue noncurrent portion | $ 21.1 | $ 14.3 | ||
Revenue recognized | $ 48.7 | $ 50.1 | ||
Remaining performance obligations | 128 | 85.7 | ||
Expected remaining performance obligations recognized during next 12 months | 104.5 | |||
Expected remaining performance obligations recognized subsequent to next 12 months and thereafter | 12.5 | |||
Expected remaining performance obligations recognized remainder thereafter | $ 11 | |||
Customer relationship period, term | 5 years | |||
Deferred sales commissions | $ 7.4 | $ 5 |
Revenues (Details) - Schedule o
Revenues (Details) - Schedule of disaggregated by geographical region - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | [1] | $ 607,219 | $ 520,817 | $ 636,080 |
Total Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 388,323 | 343,477 | 415,862 | |
Total Americas [Member] | Systems [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 124,311 | 98,884 | 127,198 | |
Total Americas [Member] | Consumables [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 121,245 | 106,857 | 129,921 | |
Total Americas [Member] | Service [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 142,767 | 137,736 | 158,743 | |
Total EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 130,296 | 101,584 | 124,967 | |
Total EMEA [Member] | Systems [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 42,077 | 29,584 | 39,810 | |
Total EMEA [Member] | Consumables [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 61,192 | 48,521 | 58,883 | |
Total EMEA [Member] | Service [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 27,027 | 23,479 | 26,274 | |
Total Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | [1] | 88,600 | 75,756 | 95,251 |
Total Asia Pacific [Member] | Systems [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 33,110 | 22,266 | 36,000 | |
Total Asia Pacific [Member] | Consumables [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | 35,623 | 33,670 | 38,934 | |
Total Asia Pacific [Member] | Service [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 19,867 | $ 19,820 | $ 20,317 | |
[1] | Revenues are attributed to geographic areas based on the location of customer. |
Revenues (Details) - Schedule_2
Revenues (Details) - Schedule of disaggregation of revenues - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | [1] | $ 607,219 | $ 520,817 | $ 636,080 |
Total revenues recognized in point in time [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | 463,606 | 380,187 | 474,631 | |
Total revenues recognized over time [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | 143,613 | 140,630 | 161,449 | |
Products [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | 417,557 | 339,782 | 430,746 | |
Products [Member] | Total revenues recognized in point in time [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | 417,557 | 339,782 | 430,746 | |
Services [Member] | Total revenues recognized in point in time [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | 46,049 | 40,405 | 43,885 | |
Services [Member] | Total revenues recognized over time [Member] | ||||
Revenues (Details) - Schedule of disaggregation of revenues [Line Items] | ||||
Total Revenues | $ 143,613 | $ 140,630 | $ 161,449 | |
[1] | Revenues are attributed to geographic areas based on the location of customer. |
Revenues (Details) - Schedule_3
Revenues (Details) - Schedule of changes in deferred revenue - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of changes in deferred revenue [Abstract] | |||
Deferred revenue | [1] | $ 72,307 | $ 63,392 |
[1] | Includes $21.1 million and $14.3 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2021 and December 31, 2020, respectively. |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Schedule of assets and liabilities carried at fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 2 [Member] | ||
Assets: | ||
Foreign exchange forward contracts not designated as hedging instruments | $ 82 | $ 56 |
Foreign exchange forward contracts designated as hedging instruments | 910 | 793 |
Liabilities: | ||
Foreign exchange forward contracts not designated as hedging instruments | (89) | (1,098) |
Foreign exchange forward contracts designated as hedging instruments | (60) | (1,584) |
Contingent consideration | ||
Foreign exchange forward contracts fair value | 843 | (1,833) |
Level 3 [Member] | ||
Assets: | ||
Foreign exchange forward contracts not designated as hedging instruments | ||
Foreign exchange forward contracts designated as hedging instruments | ||
Liabilities: | ||
Foreign exchange forward contracts not designated as hedging instruments | ||
Foreign exchange forward contracts designated as hedging instruments | ||
Contingent consideration | 55,919 | 37,400 |
Foreign exchange forward contracts fair value | $ 55,919 | $ 37,400 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Finished goods | $ 58,784 | $ 61,297 |
Work-in-process | 4,360 | 3,163 |
Raw materials | 66,003 | 67,212 |
Total inventory | $ 129,147 | $ 131,672 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 24.8 | $ 25.2 | $ 25.8 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 420,830 | $ 402,900 |
Accumulated depreciation | (219,357) | (202,556) |
Property, plant and equipment, less capital work-in-progress | 201,473 | 200,344 |
Construction work in progress | 1,822 | 888 |
Property, plant and equipment, net | 203,295 | 201,232 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 157,692 | 147,531 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 178,025 | 172,868 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 51,311 | 49,233 |
Office equipment, furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,723 | 13,966 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,079 | $ 19,302 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2021 | |
Goodwill (Details) [Line Items] | ||
Percentage of employees | 10.00% | |
Goodwill impairment charge (in Dollars) | $ 386.2 | |
Stratasys-Objet Reporting Unit [Member] | ||
Goodwill (Details) [Line Items] | ||
Discount rate | 13.50% | |
Minimum [Member] | Stratasys-Objet Reporting Unit [Member] | ||
Goodwill (Details) [Line Items] | ||
Growth rate | 2.50% | |
Maximum [Member] | Stratasys-Objet Reporting Unit [Member] | ||
Goodwill (Details) [Line Items] | ||
Growth rate | 3.10% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of changes in the carrying amount of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of changes in the carrying amount of goodwill [Abstract] | ||
Balance at beginning | $ 35,694 | $ 385,658 |
Goodwill acquired | 27,092 | 35,694 |
Goodwill impairment charges | (386,154) | |
Measurement period adjustments | 2,410 | |
Currency translation adjustments | (52) | 496 |
Balance at ending | $ 65,144 | $ 35,694 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 31.3 | $ 24.3 | $ 25.2 |
Impairment charges | $ 0 | $ 5.3 | $ 0 |
Other Intangible Assets, Net _2
Other Intangible Assets, Net (Details) - Schedule of other intangible assets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Net Book Value | $ 152,244 | |
Developed technology [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 406,578 | $ 357,863 |
Accumulated Amortization | (279,037) | (260,123) |
Net Book Value | 127,541 | 97,740 |
Patents [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 16,220 | 17,699 |
Accumulated Amortization | (8,503) | (8,487) |
Net Book Value | 7,717 | 9,212 |
Trademarks and trade names [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 26,055 | 26,036 |
Accumulated Amortization | (22,241) | (21,114) |
Net Book Value | 3,814 | 4,922 |
Customer relationships [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 100,731 | 101,107 |
Accumulated Amortization | (87,559) | (81,413) |
Net Book Value | 13,172 | 19,695 |
Capitalized software development costs [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 7,410 | 7,410 |
Accumulated Amortization | (7,410) | (7,410) |
Net Book Value | ||
Other Intangible Assets [Member] | ||
Other Intangible Assets, Net (Details) - Schedule of other intangible assets [Line Items] | ||
Carrying Amount, Net of Impairment | 556,994 | 510,115 |
Accumulated Amortization | (404,750) | (378,547) |
Net Book Value | $ 152,244 | $ 131,569 |
Other Intangible Assets, Net _3
Other Intangible Assets, Net (Details) - Schedule of estimated amortization expense relating to intangible assets $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of estimated amortization expense relating to intangible assets [Abstract] | |
2022 | $ 36,626 |
2023 | 22,106 |
2024 | 18,188 |
2025 | 15,600 |
2026 | 15,517 |
2027 and thereafter | 44,207 |
Total | $ 152,244 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands, ₪ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 27, 2020 | Dec. 22, 2017 | Dec. 31, 2017ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2011 | Jan. 02, 2017ILS (₪) | |
Income Taxes (Details) [Line Items] | ||||||||||
Deferred tax asset (in Dollars) | $ 671,458 | $ 645,318 | ||||||||
Operating loss, expiration period | Included in the net deferred tax are net operating loss and credit carryovers of $159.2 million which expire in years ending from December 31, 2022 through December 31, 2041, whereas some losses may be carried forward indefinitely, as discussed below. | |||||||||
Net operating loss and credit carryovers (in Dollars) | $ 159,200 | |||||||||
Reduced corporate tax rate | 16.00% | 16.00% | ||||||||
Percentage of limitation uses | 80.00% | |||||||||
Valuation allowance and deferred tax assets tax rate | 21.00% | |||||||||
Change in valuation allowance (in Dollars) | $ 65,600 | |||||||||
Change in deferred tax assets (in Dollars) | $ 12,380 | 20,299 | $ (3,161) | $ 65,600 | ||||||
Net operating losses, description | The CARES Act amended Internal Revenue Code Section 172(b)(1) for tax years beginning in 2018, 2019 and 2020, requiring taxpayers to carry back NOLs arising in those years to the five preceding tax years, unless the taxpayer elects to waive or reduce the carryback period. To the extent unused as a carryback, these NOLs are now carried forward indefinitely. The CARES Act suspended the Tax Cuts and Jobs Act’s 80% limitation on NOL deductions for tax years beginning in 2018, 2019 and 2020. The 80% limitation will be reinstated for tax years beginning after 2020, for NOLs arising in tax years after 2017. | |||||||||
Corporate tax rate, percentage | 7.50% | |||||||||
Enterprise benefits rate | 23.00% | |||||||||
Foreign ownership percentage basis for determining tax rate | 90.00% | |||||||||
Special preferred enterprise tax exempt period | 10 years | 10 years | ||||||||
Approved enterprise and beneficiary enterprise income tax exempt or taxable rate | 10.00% | |||||||||
Dividend with holding tax rate | 15.00% | |||||||||
Lower tax rate, percentage | 30.00% | |||||||||
Tax-exempt income (in Dollars) | $ 198,700 | |||||||||
Change in corporate tax rate, amount incurred (in Dollars) | $ 19,900 | |||||||||
Special preferred enterprise of reduced tax rates 2 | 9.00% | |||||||||
Preferred enterprise of reduced tax rates | 12.00% | |||||||||
Income tax rate, pecentage | 7.50% | |||||||||
Preferred benefitted intangible assets (in New Shekels) | ₪ | ₪ 200 | |||||||||
Special preferred enterprise of reduced tax rates | 6.00% | |||||||||
Special preferred benefitted intangible assets (in New Shekels) | ₪ | ₪ 500 | |||||||||
Foreign dividend withholding tax rate | 4.00% | |||||||||
Subsidiaries [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Operating losses carryforwards (in Dollars) | $ 628,500 | 607,300 | ||||||||
Incurred capital losses (in Dollars) | 2,203,200 | |||||||||
Deferred tax asset (in Dollars) | 671,500 | $ 645,300 | ||||||||
Accrued interest and penalties related to uncertain tax positions (in Dollars) | $ 870 | |||||||||
Maximum [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Reduced corporate tax rate | 35.00% | |||||||||
Foreign ownership percentage basis for determining tax rate | 25.00% | |||||||||
Special preferred enterprise tax exempt period | 10 years | |||||||||
Minimum [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Reduced corporate tax rate | 21.00% | |||||||||
Foreign ownership percentage basis for determining tax rate | 10.00% | |||||||||
Special preferred enterprise tax exempt period | 2 years | |||||||||
United States [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Statutory tax rates | 21.00% | |||||||||
Germany [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Statutory tax rates | 29.00% | |||||||||
Hong Kong [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Statutory tax rates | 16.50% | |||||||||
Israel [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Corporate tax rate, percentage | 23.00% | |||||||||
Dividend with holding tax rate | 15.00% | |||||||||
Israel Tax Authority [Member] | ||||||||||
Income Taxes (Details) [Line Items] | ||||||||||
Dividend with holding tax rate | 20.00% | |||||||||
Lower tax rate, percentage | 20.00% | |||||||||
Income witholding tax rate, percentage | 20.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of company's deferred tax assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Tax losses carry forwards | $ 671,458 | $ 645,318 |
Inventory related | 4,210 | 3,892 |
Intangible assets | 12,783 | 19,081 |
Provision for employee related obligations | 1,186 | 557 |
Stock-based compensation | 9,528 | 7,507 |
Deferred revenue | 2,257 | 1,871 |
Property, plant and equipment | 630 | 835 |
Allowance for credit losses | 143 | 249 |
Foreign currency losses | 358 | 278 |
Research and development credit carry forwards | 15,933 | 16,693 |
Gross deferred tax assets | 718,486 | 696,281 |
Valuation allowance | (693,120) | (661,979) |
Total deferred tax assets | 25,366 | 34,302 |
Intangibles assets | (12,533) | (21,567) |
Property, plant and equipment | (17,991) | (2,847) |
Other items | (882) | (4,344) |
Total deferred tax liabilities | (31,406) | (28,758) |
Net deferred tax assets (liabilities) | $ (6,040) | $ 5,544 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities classified in consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of deferred tax assets and liabilities classified in consolidated balance sheets [Abstract] | ||
Deferred tax assets (under "Other non-current assets") | $ 1,301 | $ 5,586 |
Deferred tax liabilities | 7,341 | 42 |
Net deferred tax assets (liabilities) | $ (6,040) | $ 5,544 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of valuation allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of valuation allowance [Abstract] | |||
Beginning balance | $ 661,979 | $ 151,771 | $ 152,659 |
Ending balance | 693,120 | 661,979 | 151,771 |
Additions | $ 31,141 | 524,215 | |
Decrease | $ (14,007) | $ (888) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of loss before Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of loss before Income Taxes [Abstract] | |||
Domestic | $ (50,193) | $ (381,935) | $ (11,895) |
Foreign | (16,644) | (74,636) | 4,751 |
Loss before income taxes | $ (66,837) | $ (456,571) | $ (7,144) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of components of income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Domestic | $ (14,146) | $ 4,992 | $ 3,392 |
Foreign | 2,141 | (3,902) | 2,524 |
Deferred income tax expense benefit | (12,005) | 1,090 | 5,916 |
Deferred | |||
Domestic | 8,745 | (4,112) | (2,007) |
Foreign | (646) | (13,372) | (386) |
Deferred income tax expense benefit | 8,099 | (17,484) | (2,393) |
Total income taxes | $ (3,906) | $ (16,394) | $ 3,523 |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of reconciliation of income tax rate - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of reconciliation of income tax rate [Abstract] | |||
Statutory tax rate | 23.00% | 23.00% | 23.00% |
Reduced tax rate under Israeli benefit programs (in Dollars) | $ 6,200 | $ (1,400) | $ 18,000 |
Goodwill impairment | (17.50%) | ||
Stock-based compensation expense | (3.50%) | (0.50%) | (21.00%) |
Non-deductible acquisition expenses | (0.10%) | (1.40%) | |
Earnings taxed under foreign law | 10.80% | (4.10%) | (14.90%) |
Valuation Allowance | (42.70%) | 3.10% | |
Changes in uncertain tax positions | 17.90% | 1.00% | (59.80%) |
Deferred Tax due to different tax rates | (6.10%) | 0.10% | 11.20% |
Non recurring Capital gain | 11.50% | ||
Withholding tax | (0.10%) | (1.70%) | |
Other | 0.40% | (0.10%) | (2.60%) |
Effective income tax rate | 5.80% | 3.60% | (48.90%) |
Income Taxes (Details) - Sche_7
Income Taxes (Details) - Schedule of beginning and ending balance of uncertain tax positions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of beginning and ending balance of uncertain tax positions [Abstract] | |||
Balance at beginning of year | $ 23,389 | $ 25,517 | $ 22,044 |
Additions for tax positions related to the current year | 3,826 | 312 | 2,336 |
Foreign currency impact | 2,918 | 3,017 | 1,353 |
Adjustments for tax positions related tax settlements | (26,685) | ||
Reduction of reserve for statute expirations | (433) | (5,457) | (216) |
Balance at end of year | $ 3,015 | $ 23,389 | $ 25,517 |
Contingencies (Details)
Contingencies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Patent law-based claim | The Company is a party to various other legal proceedings, the outcome of which, in the opinion of management, will not have a significant adverse effect on the financial position, profitability or cash flows of the Company. |
Equity (Details)
Equity (Details) - USD ($) shares in Thousands, $ in Thousands | Jan. 01, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity (Details) [Line Items] | |||||
Ordinary shares price per share description | The Company’s issued share capital is composed of ordinary shares NIS 0.01 par value per share. | ||||
Common Stock, Shares, Issued (in Shares) | 65,677 | 56,617 | |||
Ordinary shares, outstanding (in Shares) | 65,677 | 56,617 | |||
Company over the requisite service period description | Once the performance metrics are met, vesting of PSUs is subject to continued service to the Company over the requisite service period, which is normally a two-year to four-year period. | ||||
Weighted-average remaining contractual life | 4 years 9 months 18 days | ||||
Total intrinsic value of options exercised | $ 5,190 | $ 40 | $ 1,000 | ||
Unvested number of shares (in Shares) | 400 | ||||
Unrecognized compensation cost | $ 2,700 | ||||
Weighted average period over which unrecognized compensation cost will be recognized | 3 years | ||||
Net underwriting discount | $ 218,900 | ||||
Offering expenses | 11,100 | ||||
Public offering | $ 7,931,034 | $ 218,850 | |||
Subsequent Event [Member] | |||||
Equity (Details) [Line Items] | |||||
Equity incentive plan, number of additional shares authorized (in Shares) | 500 | ||||
Restricted Stock [Member] | |||||
Equity (Details) [Line Items] | |||||
Unrecognized compensation cost | $ 54,500 | ||||
Weighted average period over which unrecognized compensation cost will be recognized | 2 years 1 month 6 days | ||||
Value of equity classified RSUs vested | $ 19,000 | ||||
2012 Plan [Member] | |||||
Equity (Details) [Line Items] | |||||
Equity incentive plan, number of additional shares authorized (in Shares) | 1,800 | ||||
Expected option term | 10 years | ||||
Equity incentive plan, shares authorized (in Shares) | 1,500 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of stock option activity | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Schedule of stock option activity [Abstract] | |
Options outstanding, Number of Options | shares | 2,102,529 |
Options outstanding, Weighted Average Exercise Price | $ / shares | $ 28.06 |
Granted, Number of Options | shares | 84,326 |
Granted, Weighted Average Exercise Price | $ / shares | $ 13 |
Exercised, Number of Options | shares | (399,911) |
Exercised, Weighted Average Exercise Price | $ / shares | $ 20.14 |
Forfeited, Number of Options | shares | (54,576) |
Forfeited, Weighted Average Exercise Price | $ / shares | $ 37.72 |
Options outstanding, Number of Options | shares | 1,732,368 |
Options outstanding, Weighted Average Exercise Price | $ / shares | $ 28.85 |
Options exercisable, Number of Options | shares | 1,376,409 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 31.99 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of stock options outstanding - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Options Outstanding, Number Outstanding (in Shares) | 1,732,368 | 2,102,529 |
Options Outstanding, Weighted-Average Contractual Life in Years | 5 years 5 months 26 days | |
Options Outstanding, Weighted-Average Remaining Exercise Price | $ 28.85 | $ 28.06 |
Options Exercisable, Number Exercisable (in Shares) | 1,376,409 | |
Options Exercisable, Weighted-Average Exercise Price | $ 31.99 | |
Options Outstanding, Aggregate intrinsic value (in Dollars) | $ 6,529 | |
Options Exercisable, Aggregate intrinsic value (in Dollars) | $ 3,725 | |
$0.76 - $19.66 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | $ 0.76 | |
Range of Exercise Prices (Upper) | $ 19.66 | |
Options Outstanding, Number Outstanding (in Shares) | 799,417 | |
Options Outstanding, Weighted-Average Contractual Life in Years | 6 years 8 months 15 days | |
Options Outstanding, Weighted-Average Remaining Exercise Price | $ 17.87 | |
Options Exercisable, Number Exercisable (in Shares) | 481,418 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.32 | |
$19.96 - $23.41 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 19.96 | |
Range of Exercise Prices (Upper) | $ 23.41 | |
Options Outstanding, Number Outstanding (in Shares) | 445,930 | |
Options Outstanding, Weighted-Average Contractual Life in Years | 5 years 9 months 18 days | |
Options Outstanding, Weighted-Average Remaining Exercise Price | $ 21.72 | |
Options Exercisable, Number Exercisable (in Shares) | 445,930 | |
Options Exercisable, Weighted-Average Exercise Price | $ 21.72 | |
$24.66 - $91.56 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 24.66 | |
Range of Exercise Prices (Upper) | $ 91.56 | |
Options Outstanding, Number Outstanding (in Shares) | 476,942 | |
Options Outstanding, Weighted-Average Contractual Life in Years | 3 years 2 months 19 days | |
Options Outstanding, Weighted-Average Remaining Exercise Price | $ 52.28 | |
Options Exercisable, Number Exercisable (in Shares) | 438,982 | |
Options Exercisable, Weighted-Average Exercise Price | $ 54.64 | |
$103.36 - $120.51 [Member] | ||
Equity (Details) - Schedule of stock options outstanding [Line Items] | ||
Range of Exercise Prices (Lower) | 103.36 | |
Range of Exercise Prices (Upper) | $ 120.51 | |
Options Outstanding, Number Outstanding (in Shares) | 10,079 | |
Options Outstanding, Weighted-Average Contractual Life in Years | 2 years 9 months 18 days | |
Options Outstanding, Weighted-Average Remaining Exercise Price | $ 104.84 | |
Options Exercisable, Number Exercisable (in Shares) | 10,079 | |
Options Exercisable, Weighted-Average Exercise Price | $ 104.84 |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of stock option assumptions - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Dividend yield | ||
Weighted average grant date fair value (in Dollars per share) | $ 14.99 | $ 8.09 |
Minimum [Member] | ||
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Risk-free interest rate | 0.40% | 0.40% |
Expected option term (years) | 5 years | 5 years |
Expected share price volatility | 52.80% | 52.50% |
Maximum [Member] | ||
Equity (Details) - Schedule of stock option assumptions [Line Items] | ||
Risk-free interest rate | 1.30% | 1.80% |
Expected option term (years) | 5 years 1 month 6 days | 5 years 1 month 6 days |
Expected share price volatility | 58.70% | 52.80% |
Equity (Details) - Schedule o_4
Equity (Details) - Schedule of RSUs and PSUs activity | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Schedule of RSUs and PSUs activity [Abstract] | |
Unvested RSUs and PSUs outstanding, Number of RSUs and PSUs | shares | 2,801,116 |
Unvested RSUs and PSUs outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 21.08 |
Granted, Number of RSUs and PSUs | shares | 1,378,782 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | $ 33.66 |
Vested, Number of RSUs and PSUs | shares | (729,565) |
Vested, Weighted Average Grant Date Fair Value | $ / shares | $ 21.71 |
Forfeited, Number of RSUs and PSUs | shares | (367,535) |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | $ 22.71 |
Unvested RSUs and PSUs outstanding, Number of RSUs and PSUs | shares | 3,082,798 |
Unvested RSUs and PSUs outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 26.36 |
Equity (Details) - Schedule o_5
Equity (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 30,977 | $ 20,204 | $ 20,564 |
Cost of Revenues [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 3,093 | 1,771 | 1,848 |
Research and Development, Net [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | 6,564 | 6,102 | 5,167 |
Selling, General and Administrative [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expenses | $ 21,320 | $ 12,331 | $ 13,549 |
Equity (Details) - Schedule o_6
Equity (Details) - Schedule of accumulated other comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ (8,846) | $ (7,716) | $ (7,753) |
Other comprehensive loss before reclassifications | 1,065 | (490) | 968 |
Amounts reclassified from accumulated other comprehensive loss | (990) | (639) | (931) |
Other comprehensive income (loss) | 75 | (1,130) | 37 |
Balance | (8,771) | (8,846) | (7,716) |
Net unrealized gain (loss) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (1,673) | (10) | (627) |
Other comprehensive loss before reclassifications | 3,668 | (1,024) | 1,548 |
Amounts reclassified from accumulated other comprehensive loss | (423) | (639) | (931) |
Other comprehensive income (loss) | 3,245 | (1,663) | 617 |
Balance | 1,572 | (1,673) | (10) |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (7,173) | (7,706) | (7,126) |
Other comprehensive loss before reclassifications | (2,603) | 533 | (580) |
Amounts reclassified from accumulated other comprehensive loss | (567) | ||
Other comprehensive income (loss) | (3,170) | 533 | (580) |
Balance | $ 10,343 | $ (7,173) | $ (7,706) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) € in Millions, ₪ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021ILS (₪) | Dec. 31, 2021EUR (€) | Dec. 31, 2020ILS (₪) | |
Derivatives and Hedging Activities (Details) [Line Items] | |||||
Gain (loss) on derivative instrument | $ 2.9 | $ 6.2 | |||
Conversion to Euro [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives and Hedging Activities (Details) [Line Items] | |||||
Notional amount of derivative asset | $ 45.4 | ||||
Conversion to Euro [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives and Hedging Activities (Details) [Line Items] | |||||
Notional amount of derivative asset | € | € 54.7 | ||||
Conversion to Euro [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives and Hedging Activities (Details) [Line Items] | |||||
Notional amount of derivative asset | ₪ | ₪ 32.1 | ₪ 10.4 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details) - Schedule of balance sheet classification and fair values of derivative instruments - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ 843 | $ (1,833) |
Notional amount | 132,155 | 135,484 |
Other current assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 82 | 56 |
Notional amount of derivative asset | 12,380 | 36,882 |
Other current assets [Member] | Cash Flow Hedge [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative asset | 910 | 793 |
Notional amount of derivative asset | 60,408 | 10,417 |
Accrued expenses and other current liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (89) | (1,098) |
Notional amount of derivative liability | 33,047 | 37,999 |
Accrued expenses and other current liabilities [Member] | Cash Flow Hedge [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value derivative liability | (60) | (1,584) |
Notional amount of derivative liability | $ 26,320 | $ 50,186 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Comprehensive Income (Loss) [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | $ 75 | $ (1,130) |
Foreign exchange contracts designated as a hedging instrument | 3,245 | (1,663) |
Foreign exchange contracts not designated as a hedging instrument | ||
Revenues [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | (607,219) | (520,817) |
Foreign exchange contracts designated as a hedging instrument | 914 | 235 |
Foreign exchange contracts not designated as a hedging instrument | ||
Cost of revenues [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 347,141 | 301,423 |
Foreign exchange contracts designated as a hedging instrument | (243) | (198) |
Foreign exchange contracts not designated as a hedging instrument | ||
Research and development, net [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 88,303 | 84,012 |
Foreign exchange contracts designated as a hedging instrument | (398) | (279) |
Foreign exchange contracts not designated as a hedging instrument | ||
Selling, general and administrative [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 250,937 | 205,224 |
Foreign exchange contracts designated as a hedging instrument | (696) | (397) |
Foreign exchange contracts not designated as a hedging instrument | ||
Financial expenses (income), net [Member] | ||
Derivatives and Hedging Activities (Details) - Schedule of cash flow hedging instruments location in income statement [Line Items] | ||
Line items in which effects of hedges are recorded | 2,075 | 575 |
Foreign exchange contracts designated as a hedging instrument | ||
Foreign exchange contracts not designated as a hedging instrument | $ (2,870) | $ 6,194 |
Entity-Wide Disclosure (Details
Entity-Wide Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Entity-Wide Disclosure (Details) [Line Items] | ||
Total net sales, percentage | 10.00% | |
Property, plant and equipment, net | $ 203,295 | $ 201,232 |
ISRAEL | ||
Entity-Wide Disclosure (Details) [Line Items] | ||
Property, plant and equipment, net | 136,400 | 126,900 |
Right of use assets of lessees | $ 1,400 | $ 2,500 |
Entity-Wide Disclosure (Detai_2
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | $ 607,219 | $ 520,817 | $ 636,080 |
Americas (primarily the United States) [Member] | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | 388,323 | 343,477 | 415,862 |
EMEA [Member[ | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | 130,296 | 101,584 | 124,967 |
Asia Pacific [Member] | ||||
Entity-Wide Disclosure (Details) - Schedule of net sales by geographical area [Line Items] | ||||
Revenues | [1] | $ 88,600 | $ 75,756 | $ 95,251 |
[1] | Revenues are attributed to geographic areas based on the location of customer. |
Entity-Wide Disclosure (Detai_3
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | $ 217,946 | $ 222,530 |
Americas (primarily the United States) [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | 46,456 | 67,208 |
EMEA [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | 162,576 | 147,132 |
Asia Pacific [Member] | ||
Entity-Wide Disclosure (Details) - Schedule of property, plant and equipment by geographical location [Line Items] | ||
Property, plant and equipment, net | $ 8,914 | $ 8,190 |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares, excluded from computation of diluted net loss per share | 4.8 | 4.9 | 4.3 |
Net Loss per Share (Details) -
Net Loss per Share (Details) - Schedule of calculation of basic and diluted net loss per share - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss attributable to Stratasys Ltd. for basic and diluted net loss per share (in Dollars) | $ (61,982) | $ (443,721) | $ (10,849) |
Denominator: | |||
Weighted average shares – denominator for basic and diluted net loss per share | 63,471 | 54,918 | 54,260 |
Net loss per share Basic and diluted | (0.98) | (8.08) | (0.2) |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating lease cost - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of operating lease cost [Abstract] | |||
Fixed payments and variable payments that depend on an index or rate | $ 10,196 | $ 10,102 | $ 8,564 |
Total operating lease cost | $ 10,196 | $ 10,102 | $ 8,564 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of other information related to operating leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of other information related to operating leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 9,829 | $ 10,559 | $ 9,685 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,955 | $ 10,008 | $ 7,246 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of weighted-average operating leases | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of weighted-average operating leases [Abstract] | |||
Weighted-average remaining lease term — operating leases | 2 years 7 months 2 days | 3 years | 3 years 2 months 4 days |
Weighted-average discount rate — operating leases | 4.58% | 4.78% | 4.72% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Schedule of maturities of operating lease liabilities [Abstract] | |
2022 | $ 7,504 |
2023 | 5,118 |
2024 | 2,499 |
2025 | 538 |
2026 | 114 |
Total operating lease payments | 15,773 |
Less: imputed interest | (804) |
Present value of lease liabilities | $ 14,969 |