XML 62 R18.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Derivatives and Hedging Activities | 12 Months Ended
--- | ---
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Note 12. Derivatives and Hedging Activities The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in the New Israeli Shekel (“NIS”), the Euro and the Japanese Yen. Gains and losses on the hedging instruments offset losses and gains on the hedged items. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments:
|  |  |  | Fair Value |  | Notional Amount
|  |  |  | December 31, |  | December 31, |  | December 31, |  | December 31,
|  | Balance sheet location |  | 2019 |  | 2018 |  | 2019 |  | 2018
|  |  |  | (U.S. $ in thousands)
Assets derivatives -Foreign exchange contracts, not designated as hedging instruments |  | Other current assets |  | $ | 63 |  |  | $ | 374 |  |  | $ | 11,001 |  | $ | 34,695
Assets derivatives -Foreign exchange contracts, designated as cash flow hedge |  | Other current assets |  |  | 315 |  |  |  | — |  |  |  | 25,045 |  |  | —
Liability derivatives -Foreign exchange contracts, not designated as hedging instruments |  | Accrued expenses and other current liabilities |  |  | (388 | ) |  |  | (196 | ) |  |  | 92,929 |  |  | 54,425
Liability derivatives -Foreign exchange contracts, designated as cash flow hedge |  | Accrued expenses and other current liabilities |  |  | (326 | ) |  |  | (628 | ) |  |  | 45,262 |  |  | 41,303
|  |  |  | $ | (336 | ) |  | $ | (450 | ) |  | $ | 174,237 |  | $ | 130,423
Foreign exchange contracts not designated as hedging instruments As of December 31, 2019, the notional amounts of the Company’s outstanding exchange forward contracts, not designated as hedging instruments, were $103.9 million and were used to reduce foreign currency exposures of the Euro, New Israeli Shekel (the “NIS”), Japanese Yen, Korean Won and Chinese Yuan. With respect to such derivatives, gain of $2.9 million and gain of $2.0 million were recognized under financial income, net for the years ended December 31, 2019 and 2018, respectively. Such gains partially offset the revaluation losses of the balance sheet items, which are also recognized under financial income, net. F-35 Table of Contents STRATASYS LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Cash Flow Hedging—Hedges of Forecasted Foreign Currency Payroll As of December 31, 2019 and 2018, the Company had in effect foreign exchange forward contracts for the conversion of $25.0 million and $41.3 million, respectively, into NIS. These foreign exchange forward contracts were designated as cash flow hedge for accounting purposes. The Company uses short-term cash flow hedge contracts to reduce its exposure to variability in expected future cash flows resulting mainly from payroll costs denominated in New Israeli Shekels. The changes in fair value of those contracts are included in the Company’s accumulated other comprehensive loss. These contracts mature through December 2020. 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, 2019, the Company had in effect foreign exchange forward contracts, designated as cash flow hedge for accounting purposes, for the conversion of Euro 40.0 million in USD. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in fair value of these cash flow hedges in accumulated other comprehensive income (loss) in our consolidated balance sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to the same income statement line item as the hedged item. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded under financial income.
|  | Cost of sales |  |  | Research and development, net |  |  | Selling, general and administrative |  |  | Financial income, net |  |  | Other comprehensive income
|  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (U.S. $ in thousands)
Line items in which effects of hedges are recorded |  | $ | 322,388 |  |  | $ | 338,013 |  |  | $ | 94,253 |  |  | $ | 98,964 |  |  | $ | 231,138 |  |  | $ | 235,107 |  |  | $ | (4,555 | ) |  | $ | (633 | ) |  | $ | 37 |  |  | $ | (730 | )
Foreign exchange contracts designated as hedging instrument |  |  | (24 | ) |  |  | 12 |  |  |  | (382 | ) |  |  | 303 |  |  |  | (525 | ) |  |  | 542 |  |  |  | — |  |  |  | — |  |  |  | 617 |  |  |  | (957 | )
Foreign exchange contracts not designated as hedging instrument |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,868 | ) |  |  | (1,956 | ) |  |  | — |  |  |  | — |
|  | $ | 322,364 |  |  | $ | 338,025 |  |  | $ | 93,871 |  |  | $ | 99,267 |  |  | $ | 230,613 |  |  | $ | 235,649 |  |  | $ | (7,423 | ) |  | $ | (2,589 | ) |  | $ | 654 |  |  | $ | (1,687 | )

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration