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.