| Equity |
Note 10. Equity
a. Stock-based compensation plans
Stock-based compensation expenses for equity-classified stock options, restricted share units (“RSUs”) and performance stock units ("PSUs") were allocated as follows:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
U.S $ in thousands |
|
U.S $ in thousands |
| Cost of sales |
|
$ |
475 |
|
$ |
351 |
|
$ |
1,370 |
|
$ |
1,180 |
| Research and development, net |
|
|
1,494 |
|
|
928 |
|
|
3,764 |
|
|
2,608 |
| Selling, general and administrative |
|
|
3,466 |
|
|
2,734 |
|
|
10,623 |
|
|
7,918 |
| Total stock-based compensation expenses |
|
$ |
5,435 |
|
$ |
4,013 |
|
$ |
15,757 |
|
$ |
11,706 |
A summary of the Company’s stock option activity for the nine months ended September 30, 2019 is as follows:
|
|
|
|
|
Weighted Average |
|
|
Number of Options |
|
Exercise Price |
| Options outstanding as of January 1, 2019 |
|
2,551,743 |
|
|
$ |
30.82 |
| Exercised |
|
(242,317 |
) |
|
|
21.34 |
| Forfeited |
|
(218,568 |
) |
|
|
27.40 |
| Options outstanding as of September 30, 2019 |
|
2,090,858 |
|
|
$ |
32.28 |
| Options exercisable as of September 30, 2019 |
|
1,600,304 |
|
|
$ |
35.90 |
During the nine-month periods ended September 30, 2019 and 2018, the Company issued 242,317 shares and 87,158 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $5.2 million and $1.7 million for the nine-month periods ended September 30, 2019 and 2018, respectively.
As of September 30, 2019, the unrecognized compensation cost of $5.1 million related to all unvested, equity-classified stock options is expected to be recognized as an expense over a weighted-average period of 1.4 years.
A summary of the Company’s RSUs and PSUs activity for the nine months ended September 30, 2019 is as follows:
|
|
|
|
|
Weighted Average |
|
|
Number of RSUs and PSUs
|
|
Grant Date Fair Value |
| Unvested as of January 1, 2019 |
|
1,422,887 |
|
|
$ |
20.17 |
| Granted |
|
1,564,182 |
|
|
|
26.61 |
| Vested |
|
(304,408 |
) |
|
|
20.47 |
| Forfeited |
|
(251,574 |
) |
|
|
22.19 |
| Unvested as of September 30, 2019 |
|
2,431,087 |
|
|
$ |
24.07 |
The fair value of RSUs and PSUs is determined based on the quoted price of the Company’s ordinary shares on the date of the grant.
As of September 30, 2019, the unrecognized compensation cost of $45.1 million related to all unvested, equity-classified RSUs and PSUs is expected to be recognized as expense over a weighted-average period of 2.9 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 nine months ended September 30, 2019 and 2018, respectively:
|
|
Nine months ended September 30, 2019 |
|
|
Net unrealized gain |
|
Foreign currency |
|
|
|
|
|
|
(loss) on cash flow |
|
translation |
|
|
|
|
|
|
hedges |
|
adjustments |
|
Total |
|
|
U.S. $ in thousands |
| Balance as of January 1, 2019 |
|
$ |
(627 |
) |
|
$ |
(7,126 |
) |
|
$ |
(7,753 |
) |
| Other comprehensive income (loss) before reclassifications |
|
|
1,689 |
|
|
|
(1,398 |
) |
|
|
291 |
|
| Amounts reclassified from accumulated other comprehensive loss |
|
|
(505 |
) |
|
|
- |
|
|
|
(505 |
) |
| Other comprehensive income (loss) |
|
|
1,184 |
|
|
|
(1,398 |
) |
|
|
(214 |
) |
| Balance as of September 30, 2019 |
|
$ |
557 |
|
|
$ |
(8,524 |
) |
|
$ |
(7,967 |
) |
|
|
Nine months ended September 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 |
|
|
(733 |
) |
|
|
(1,540 |
) |
|
|
(2,273 |
) |
| Amounts reclassified from accumulated other comprehensive loss |
|
|
386 |
|
|
|
95 |
|
|
|
481 |
|
| Other comprehensive loss |
|
|
(347 |
) |
|
|
(1,445 |
) |
|
|
(1,792 |
) |
| Balance as of September 30, 2018 |
|
$ |
(17 |
) |
|
$ |
(8,798 |
) |
|
$ |
(8,815 |
) |
|