Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Fair Value Measurement

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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.