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

Equity

v3.2.0.727
Equity
 6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Equity

Note 9. Equity

a.   Stock-based compensation plans

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

  Three Months Ended
  Six Months Ended
  June 30,     June 30,
  2015   2014
  2015   2014
  U.S. $ in thousands
Cost of sales   $ 1,797
   $  1,034
  $ 3,630 $ 1,946
Research and development, net     1,506
      885
 
3,374 1,823
Selling, general and administrative     6,261
      5,159
 
12,320 10,045
Total stock-based compensation expenses   $ 9,564
   $  7,078
  $ 19,324
$ 13,814

A summary of the Company's stock option activity for the six months ended June 30, 2015 is as follows:

    Weighted Average
Number of Options     Exercise Price
Options outstanding as of January 1, 2015 1,719,241     $ 43.89
Granted 4,360       55.94
Exercised   (107,914 )   20.01
Forfeited (43,584 )     59.54
Options outstanding as of June 30, 2015   1,572,103
  $ 44.62
Options exercisable as of June 30, 2015 961,482     $ 26.73

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. The weighted-average grant date fair value of options that were granted during the six-month period ended June 30, 2015 was $25.51 per option.

During the six-month periods ended June 30, 2015 and 2014, the Company issued 107,914 and 224,258 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $2.1 million and $2.4 million for the six-month periods ended June 30, 2015 and 2014, respectively.

As of June 30, 2015, the unrecognized compensation cost related to all unvested stock options of $26.5 million is expected to be recognized as an expense over a weighted-average period of 1.2 years.

A summary of the Company's RSUs activity for the six months ended June 30, 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   80,685    
66.50
Forfeited   (65,261 )  
92.50
RSUs outstanding as of June 30, 2015   682,922   $ 91.08

During the six-month periods ended June 30, 2015 and 2014, the Company granted RSUs for 80,685 and 108,080 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 June 30, 2015, the unrecognized compensation cost related to all unvested equity classified RSUs of $52.3 million is expected to be recognized as expense on a straight-line basis over a weighted-average period of 3.0 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 six months ended June 30, 2015 and 2014:

 Six months ended June 30, 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   327
    (5,420 )   $  (5,093 )
Amounts reclassified from accumulated                        
       other comprehensive income     1,311       -     $  1,311  
Other comprehensive income (loss)
  1,638       (5,420 )     (3,782 )
Balance as of June 30, 2015   $  395
  $ (7,824 )   $  (7,429 )

 

  Six months ended June 30, 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   234     (523 )     -       (289 )
Amounts reclassified from accumulated                                
       other comprehensive income     (190 )     -
    167       (23 )
Other comprehensive income (loss)   44
    (523 )     167       (312 )
Balance as of June 30, 2014   $
 197     $ 1,399     $ -     $ 1,596  

Amounts reclassified from accumulated other comprehensive income to earnings were $0.2 and $1.3 for the three and six months ended June 30, 2015.

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