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

Equity

v3.10.0.1
Equity
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Equity

Note 11. Equity

a. Stock-based compensation plans

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

Three Months Ended Six Months Ended
June 30, June 30,
      2018       2017       2018       2017
U.S $ in thousands U.S $ in thousands
Cost of sales $      442 $      799 $      829 $      1,442
Research and development, net 938 1,089 1,680 1,938
Selling, general and administrative 2,898 3,443 5,184 5,855
Total stock-based compensation expenses $ 4,278 $ 5,331 $ 7,693 $ 9,235

A summary of the Company’s stock option activity for the six months ended June 30, 2018 is as follows:

Weighted Average
      Number of Options       Exercise Price
Options outstanding as of January 1, 2018                   3,330,953 $                       31.53
Exercised (20,596 ) 16.23
Forfeited (397,069 ) 35.07
Options outstanding as of June 30, 2018 2,913,288 $ 31.16
Options exercisable as of June 30, 2018 1,436,409 $ 40.56

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 continuous service to the Company. The fair value of stock options is determined using the Black-Scholes model.

During the six-month periods ended June 30, 2018 and 2017, the Company issued 20,596 shares and 140,476 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $0.3 million and $2.2 million for the six-month periods ended June 30, 2018 and 2017, respectively.

As of June 30, 2018, the unrecognized compensation cost of $14.4 million related to all unvested, equity-classified stock options is expected to be recognized as an expense over a weighted-average period of 2.4 years.

A summary of the Company’s RSUs activity for the six months ended June 30, 2018 is as follows:

Weighted Average Grant
      Number of RSUs       Date Fair Value
Unvested RSUs outstanding as of January 1, 2018 302,163 $ 30.88
Granted 995,125 19.88
Forfeited (27,185 ) 41.04
Vested (74,984 ) 32.38
Unvested RSUs outstanding as of June 30, 2018            1,195,119 $ 21.05

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, 2018, the unrecognized compensation cost of $22.6 million related to all unvested, equity-classified RSUs is expected to be recognized as expense over a weighted-average period of 3.3 years.

b. Accumulated other comprehensive loss

The following tables present the changes in the components of accumulated other comprehensive income (loss), net of taxes, for the six months ended June 30, 2018 and 2017, respectively:

Six months ended June 30, 2018
Net unrealized gain Foreign currency
(loss) on cash flow translation
      hedges       adjustments       Total
U.S. $ in thousands
Balance as of January 1, 2018 $                         330 $                  (7,353 ) $      (7,023 )
Other comprehensive income (loss) before reclassifications (903 ) (1,306 ) (2,209 )
Amounts reclassified from accumulated other comprehensive loss 34 95 129
Other comprehensive loss (869 ) (1,211 ) (2,080 )
Balance as of June 30, 2018 $ (539 ) $ (8,564 ) $ (9,103 )
 
Six months ended June 30, 2017
Net unrealized gain Foreign currency
      (loss) on cash flow       translation      
Hedges adjustments Total
U.S. $ in thousands
Balance as of January 1, 2017 $                         (24 ) $                  (13,455 ) $       (13,479 )
Other comprehensive income (loss) before reclassifications 1,069 3,150 4,219
Amounts reclassified from accumulated other comprehensive loss (883 ) - (883 )
Other comprehensive income 186 3,150 3,336
Balance as of June 30, 2017 $ 162 $ (10,305 ) $ (10,143 )