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

Revenues

v3.20.2
Revenues
9 Months Ended
Sep. 30, 2020
Revenue Recognition [Abstract]  
Revenues

Note 3. Revenues

Disaggregation of Revenues

The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and nine months ended September 30, 2020 and 2019:

  Three months ended September 30,   Nine months ended September 30,
    2020     2019     2020     2019
  (U.S. $ in thousands)   (U.S. $ in thousands)
Americas                  
Products $ 52,827     $ 67,088     $ 145,871     $ 192,279  
Service   33,770       39,816       106,000       119,149  
Total Americas   86,597       106,904       251,871       311,428  
                   
EMEA                  
Products   17,245       22,710       53,735       74,119  
Service   6,003       6,223       17,348       19,747  
Total EMEA   23,248       28,933       71,083       93,866  
                   
Asia Pacific                  
Products   13,476       16,548       40,991       55,380  
Service   4,571       5,075       14,477       15,249  
Total Asia Pacific   18,047       21,623       55,468       70,629  
                   
Total Revenues $ 127,892     $ 157,460     $ 378,422     $ 475,923  

The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three and nine months ended September 30, 2020 and 2019:

    Three months ended September 30,   Nine months ended September 30,
      2020     2019     2020     2019
    (U.S. $ in thousands)   (U.S. $ in thousands)
Revenues recognized in point in time from:                    
Products   $ 83,548     $ 106,346     $ 240,597     $ 321,778  
Services     10,387       11,157       29,809       32,531  
Total revenues recognized in point in time     93,935       117,503       270,406       354,309  
                     
                     
Revenues recognized over time from:                    
Services     33,957       39,957       108,016       121,614  
Total revenues recognized over time     33,957       39,957       108,016       121,614  
                     
Total Revenues   $ 127,892     $ 157,460     $ 378,422     $ 475,923  

Contract Assets and Contract Liabilities

Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of September 30, 2020 and December 31, 2019.

Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of September 30, 2020 and December 31, 2019 were as follows:

    September 30, December 31,
    2020   2019
    U.S. $ in thousands
         
Deferred revenues*     60,724       68,307  

*Includes $13.4 million and $16.0 million under long term deferred revenue in the Company's consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively.

Revenue recognized in 2020 that was included in deferred revenue balance as of January 1, 2020 was $10.5 million and $42.1 million for the three and nine months ended September 30, 2020, respectively.

Remaining Performance Obligations

Remaining Performance Obligations ("RPO") represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2020, the total RPO amounted to $82.1 million. The Company expects to recognize $68.3 million of this RPO during the next 12 months, $9.2 million over the subsequent 12 months and the remaining $4.6 million thereafter.

Incremental Costs of Obtaining a Contract

Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, 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 if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of September 30, 2020 and December 31, 2019, the deferred commissions amounted to $4.4 million and $3.9 million, respectively.