Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Equity

v2.4.1.9
Equity
 3 Months Ended
Mar. 31, 2015
Equity [Abstract]  
Equity

Note 9. Equity

a. Stock-based compensation plans

Stock-based compensation expense for equity classified stock options and restricted stock units (“RSUs”) were allocated as follows:

  Three Months Ended
  March 31,
  2015   2014
  U.S. $ in thousands
Cost of sales   $ 1,833   $ 912
Research and development, net   1,868   938
Selling, general and administrative   6,059   4,886
Total stock-based compensation expenses   $ 9,760   $ 6,736

A summary of the Company's stock option activity for the three months ended March 31, 2015 is as follows:

    Weighted Average
Number of Options   Exercise Price
Options outstanding as of January 1, 2015 1,719,241     $ 43.89
Granted -       -
Exercised   (91,528 )     22.13
Forfeited (27,496 )     50.46
Options outstanding as of March 31, 2015   1,600,217     $ 44.53
Options exercisable as of March 31, 2015 860,358     $ 23.77

The outstanding options generally have a term of ten years from the grant date. Options granted become exercisable over the vesting period, which is normally a four-year period beginning on the grant date, subject to the employee's continuing service to the Company.

The fair value of stock options is determined using the Black-Scholes model. No options were granted during the three-month period ended March 31, 2015. The weighted-average grant date fair value of options that were granted during the three-month period ended March 31, 2014 was $42.85 per option.

During the three-month periods ended March 31, 2015 and 2014, the Company issued 91,528 and 116,609 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $2.0 million and $1.0 million for the three-month periods ended March 31, 2015 and 2014, respectively.

As of March 31, 2015, the unrecognized compensation cost related to all unvested equity classified stock options of $31.3 million is expected to be recognized as an expense over a weighted-average period of 1.3 years.

A summary of the Company's RSUs activity for the three months ended March 31, 2015 is as follows:

    Weighted Average
  Number of RSUs Grant Date Fair Value
RSUs outstanding as of January 1, 2015   667,498     $ 94.19
Granted   52,460       76.38
Forfeited   (20,461 )     94.23
RSUs outstanding as of March 31, 2015   699,497     $ 92.85

During the three-month periods ended March 31, 2015 and 2014, the Company granted RSUs for 52,460 and 6,247 ordinary shares of the Company, respectively. The fair value of RSUs is determined based on the quoted price of the Company's ordinary shares on the date of the grant.

As of March 31, 2015, the unrecognized compensation cost related to all unvested equity classified RSUs of $52.5 million is expected to be recognized as expense on a straight-line basis over a weighted-average period of 3.3 years.

b. Accumulated other comprehensive income (loss)

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2015 and 2014:

  Three months ended March 31, 2015
  Net unrealized gain   Foreign currency      
  (loss) on cash flow   translation      
  hedges   adjustments    Total
  U.S. $ in thousands
Balance as of January 1, 2015   $  (1,243 )    $ (2,404 )    $ (3,647 )
Other comprehensive income before                      
       reclassifications   (728 )     (6,408 )     (7,136 )
Amounts reclassified from accumulated                        
       other comprehensive income     1,108       -       1,108  
Other comprehensive income (loss)
  380       (6,408 )     (6,028 )
 Balance as of March 31, 2015   $  (863  )    $ (8,812  )   $  (9,675  )

 

  Three months ended March 31, 2014
  Net unrealized gain   Foreign currency              
  (loss) on cash flow   translation              
  hedges   adjustments   Other     Total
  U.S. $ in thousands
Balance as of January 1, 2014   $  153      $ 1,922      $ (167 )    $ 1,908  
Other comprehensive income before                              
       reclassifications   (7 )     (398 )     -       (405 )
Amounts reclassified from accumulated                                
       other comprehensive income     (121 )     -
    167       46
Other comprehensive income (loss)   (128 )     (398 )     167       (359 )
 Balance as of March 31, 2014   $
 25       $ 1,524       $ -       $ 1,549   

Realized gains and losses on cash flow hedges were reclassified to research and development, net and selling and general and administrative expenses. Other reclassifications from accumulated other comprehensive income (loss) were reclassified to financial expense, net.