Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-27466 |
Entity Registrant Name | NICE LTD. |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 13 Zarchin Street |
Entity Address, Address Line Two | P.O. Box 690 |
Entity Address, City or Town | Ra’anana |
Entity Address, Postal Zip Code | 4310602 |
Entity Address, Country | IL |
Title of 12(b) Security | American Depositary Shares, each representingone Ordinary Share, par value oneNew Israeli Shekel per share |
Trading Symbol | NICE |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 63,476,860 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001003935 |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 13 Zarchin Street |
Entity Address, Address Line Two | P.O. Box 690 |
Entity Address, City or Town | Ra’anana |
Entity Address, Postal Zip Code | 4310602 |
Entity Address, Country | IL |
Contact Personnel Name | Tali Mirsky |
City Area Code | 972 |
Local Phone Number | 9-7753151 |
Contact Personnel Email Address | tali.mirsky@nice.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1281 |
Auditor Name | KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global |
Auditor Location | Aviv, Israel |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 378,656 | $ 442,267 |
Short-term investments | 1,046,095 | 1,021,613 |
Trade receivables (net of allowance for credit losses of $9,927 and $12,197 at December 31, 2021 and 2020, respectively) | 395,583 | 303,100 |
Debt hedge option | 292,940 | 0 |
Prepaid expenses and other current assets | 184,604 | 175,340 |
Total current assets | 2,297,878 | 1,942,320 |
LONG-TERM ASSETS: | ||
Prepaid expenses and other long-term assets | 224,445 | 153,660 |
Property and equipment, net | 145,654 | 137,785 |
Deferred tax assets | 55,246 | 32,735 |
Operating lease right-of-use assets | 85,055 | 97,162 |
Other intangible assets, net | 295,378 | 366,003 |
Goodwill | 1,606,756 | 1,503,252 |
Total long-term assets | 2,412,534 | 2,290,597 |
Total assets | 4,710,412 | 4,232,917 |
CURRENT LIABILITIES: | ||
Trade payables | 36,121 | 33,132 |
Deferred revenues and advances from customers | 330,459 | 311,851 |
Current maturities of operating leases | 19,514 | 22,412 |
Debt | 395,946 | 259,881 |
Accrued expenses and other liabilities | 487,547 | 417,174 |
Total current liabilities | 1,269,587 | 1,044,450 |
LONG-TERM LIABILITIES: | ||
Deferred revenues and advances from customers | 66,606 | 36,295 |
Accrued severance pay | 16,494 | 16,229 |
Deferred tax liabilities | 7,429 | 32,109 |
Debt | 429,267 | 421,337 |
Operating leases | 81,185 | 92,262 |
Other long-term liabilities | 1,885 | 1,751 |
Total long-term liabilities | 602,866 | 599,983 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Authorized: 125,000,000 shares at December 31, 2021 and 2020; Issued: 74,774,827 and 74,774,827 shares at December 31, 2021 and 2020, respectively; Outstanding: 63,476,860 and 63,050,434 shares at December 31, 2021 and 2020, respectively | 18,961 | 18,961 |
Additional paid-in capital | 1,817,710 | 1,681,587 |
Treasury shares at cost – 11,297,967 and 11,724,393 Ordinary shares at December 31, 2021 and 2020, respectively | (625,810) | (574,364) |
Accumulated other comprehensive loss | (39,739) | (16,662) |
Retained earnings | 1,653,963 | 1,454,388 |
Total attributable to Nice Ltd's shareholders | 2,825,085 | 2,563,910 |
Non-controlling interests | 12,874 | 24,574 |
Total shareholders' equity | 2,837,959 | 2,588,484 |
Total liabilities and shareholders' equity | $ 4,710,412 | $ 4,232,917 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ | $ 9,927 | $ 12,197 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock issued (in shares) | 74,774,827 | 74,774,827 |
Common stock outstanding (in shares) | 63,476,860 | 63,050,434 |
Treasury stock (in shares) | 11,297,967 | 11,724,393 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total revenue | $ 1,921,150 | $ 1,648,016 | $ 1,573,912 |
Cost of revenue: | |||
Total cost of revenue | 624,456 | 561,952 | 531,768 |
Gross profit | 1,296,694 | 1,086,064 | 1,042,144 |
Operating expenses: | |||
Research and development, net | 271,187 | 218,182 | 193,718 |
Selling and marketing | 536,192 | 445,102 | 441,687 |
General and administrative | 225,406 | 180,733 | 168,022 |
Total operating expenses | 1,032,785 | 844,017 | 803,427 |
Operating income | 263,909 | 242,047 | 238,717 |
Financial expenses and other, net | 23,290 | 4,859 | 4,444 |
Income before taxes on income | 240,619 | 237,188 | 234,273 |
Taxes on income | 41,396 | 40,842 | 48,369 |
Net income | $ 199,223 | $ 196,346 | $ 185,904 |
Basic earnings per share (in usd per share) | $ 3.15 | $ 3.13 | $ 2.99 |
Diluted earnings per share (in usd per share) | $ 2.98 | $ 2.98 | $ 2.88 |
Weighted average number of shares (in thousands) used in computing: | |||
Basic earnings per share (in shares) | 63,189 | 62,710 | 62,120 |
Diluted earnings per share (in shares) | 66,896 | 65,956 | 64,661 |
Cloud | |||
Revenue: | |||
Total revenue | $ 1,018,624 | $ 777,331 | $ 595,748 |
Cost of revenue: | |||
Total cost of revenue | 410,671 | 339,985 | 289,852 |
Services | |||
Revenue: | |||
Total revenue | 660,083 | 687,532 | 709,064 |
Cost of revenue: | |||
Total cost of revenue | 191,137 | 199,803 | 218,990 |
Product | |||
Revenue: | |||
Total revenue | 242,443 | 183,153 | 269,100 |
Cost of revenue: | |||
Total cost of revenue | $ 22,648 | $ 22,164 | $ 22,926 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 199,223 | $ 196,346 | $ 185,904 |
Change in foreign currency translation adjustment | (7,402) | 4,998 | 2,458 |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | (13,368) | 11,249 | 6,260 |
Less - reclassification adjustment for net gains realized and included in net income | (1,403) | (2,095) | (467) |
Net change (net of tax effect of $2,012, $(1,246) and $(913)) | (14,771) | 9,154 | 5,793 |
Cash flow hedges: | |||
Change in unrealized gains | 5,024 | 4,954 | 5,495 |
Less - reclassification adjustment for net (losses) realized and included in net income | (5,928) | (2,469) | (429) |
Cash flow hedge net change | (904) | 2,485 | 5,066 |
Total other comprehensive income (loss) | (23,077) | 16,637 | 13,317 |
Comprehensive income | $ 176,146 | $ 212,983 | $ 199,221 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Available for sale tax effect | $ 2,012 | $ (1,246) | $ (913) |
Cash flow hedge tax effect | $ 123 | $ (339) | $ (691) |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Share capital | Additional paid-in capital | Treasury shares | Accumulated other comprehensive loss | Retained earnings | Non-controlling Interest |
Beginning balance at Dec. 31, 2018 | $ 2,016,613 | $ 18,849 | $ 1,499,986 | $ (527,417) | $ (46,616) | $ 1,071,811 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of share options | 2,019 | 112 | 1,907 | ||||
Stock-based compensation | 82,033 | 82,033 | |||||
Issuance of treasury shares under share-based compensation plan | 3,409 | (15,891) | 19,300 | ||||
Treasury shares purchase | (46,029) | (46,029) | |||||
Other comprehensive income | 13,317 | 13,317 | |||||
Net income attributable to Nice Shareholders | 185,904 | 185,904 | |||||
Ending balance at Dec. 31, 2019 | 2,257,266 | 18,961 | 1,568,035 | (554,146) | (33,299) | 1,257,715 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 103,464 | 103,464 | |||||
Issuance of treasury shares under share-based compensation plan | 8,865 | (19,266) | 28,131 | ||||
Treasury shares purchase | (48,349) | (48,349) | |||||
Non-controlling interests related to acquisition | 24,901 | 24,901 | |||||
Other comprehensive income | 16,637 | 16,637 | |||||
Equity component of convertible notes, net of issuance costs and deferred tax | 28,816 | 28,816 | |||||
Equity awards assumed for acquisitions | 538 | 538 | |||||
Net income attributable to Nice Shareholders | 196,673 | 196,673 | |||||
Net loss attributable to non-controlling interests | (327) | (327) | |||||
Ending balance at Dec. 31, 2020 | 2,588,484 | 18,961 | 1,681,587 | (574,364) | (16,662) | 1,454,388 | 24,574 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 156,373 | 156,373 | |||||
Issuance of treasury shares under share-based compensation plan | 4,424 | (17,194) | 21,618 | ||||
Treasury shares purchase | (73,064) | (73,064) | |||||
Other comprehensive income | (23,077) | (23,077) | |||||
Equity component of convertible notes, net of issuance costs and deferred tax | 75 | 75 | |||||
Equity awards assumed for acquisitions | 183 | 183 | |||||
Purchase of subsidiaries' shares from non-controlling, net | (12,908) | (3,314) | (9,594) | ||||
Dividends Paid to non-controlling interest | (1,754) | (1,754) | |||||
Net income attributable to Nice Shareholders | 199,575 | 199,575 | |||||
Net loss attributable to non-controlling interests | (352) | (352) | |||||
Ending balance at Dec. 31, 2021 | $ 2,837,959 | $ 18,961 | $ 1,817,710 | $ (625,810) | $ (39,739) | $ 1,653,963 | $ 12,874 |
STATEMENTS OF CHANGES IN SHAR_2
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares issued under share-based compensation plans (in shares) | 717,500 | 915,710 | 556,655 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 199,223 | $ 196,346 | $ 185,904 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 184,092 | 182,026 | 173,230 |
Stock-based compensation | 153,030 | 101,667 | 80,864 |
Accrued severance pay, net | 597 | 1,323 | (1,964) |
Amortization of premium and discount and accrued interest on marketable securities | 11,867 | (633) | (53) |
Deferred taxes, net | (39,316) | (33,241) | (12,208) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (85,778) | 22,245 | (29,863) |
Prepaid expenses and other current assets | (79,624) | (80,665) | (76,180) |
Trade payables | (389) | 4,094 | 777 |
Accrued expenses and other liabilities | 64,179 | 14,875 | 31,730 |
Operating lease right-of-use assets | 15,075 | 18,167 | 19,104 |
Deferred revenues | 30,770 | 63,202 | 13,810 |
Operating lease liabilities | (18,011) | (19,569) | (18,839) |
Amortization of discount on long-term debt | 14,469 | 13,297 | 9,236 |
Loss in respect of debt extinguishment | 13,969 | 0 | 0 |
Other | (2,337) | (2,828) | (1,390) |
Net cash provided by operating activities | 461,816 | 480,306 | 374,158 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (24,771) | (24,186) | (27,293) |
Purchase of investments | (322,129) | (583,115) | (619,060) |
Proceeds from investments | 270,645 | 328,593 | 362,713 |
Payments for business acquisitions, net of cash acquired | (142,804) | (147,261) | (25,972) |
Capitalization of internal use software costs | (42,440) | (39,098) | (34,679) |
Net cash used in investing activities | (261,499) | (465,067) | (344,291) |
Cash flows from financing activities: | |||
Proceeds from issuance of shares upon exercise of options | 4,426 | 8,865 | 5,428 |
Purchase of treasury shares | (73,180) | (48,272) | (47,276) |
Dividends paid to non-controlling interest | (1,754) | 0 | 0 |
Capital lease payments | 0 | (177) | (816) |
Purchase of subsidiaries shares from non-controlling interest | (14,000) | 0 | 0 |
Proceeds from issuance of exchangeable senior notes, net | 0 | 451,421 | 0 |
Repayment of debt | (177,308) | (215,000) | 0 |
Net cash provided by (used in) financing activities | (261,816) | 196,837 | (42,664) |
Effect of exchange rate changes on cash | (2,112) | 1,868 | (979) |
Net change in cash and cash equivalents | (63,611) | 213,944 | (13,776) |
Cash and cash equivalents at the beginning of the year | 442,267 | 228,323 | 242,099 |
Cash and cash equivalents at the end of the year | 378,656 | 442,267 | 228,323 |
Cash paid during the year for: | |||
Income taxes | 97,258 | 83,251 | 65,200 |
Interest | 688 | 7,829 | 11,493 |
Non-cash activities: | |||
Increase in accrued expenses and other liabilities with respect to purchase of treasury shares | 4 | 112 | 35 |
Debt | $ 292,940 | $ 0 | $ 0 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL [Abstract] | |
GENERAL | GENERAL a. General: The Company is a global enterprise software leader, providing cloud platforms for AI-driven digital business solutions that serve two main markets: Customer Engagement and Financial Crime and Compliance. The Company's core mission is to transform experiences to be extraordinary and trusted, and create frictionless and safe digital-first consumer reality, where every interaction is easy, effortless and instantaneous. The Company's solutions are used by organizations of all sizes and are offered in multiple delivery models, including cloud and on-premises. In the Customer Engagement market, the Company enables organizations to transform experiences with solutions aimed at meeting consumers wherever they choose to begin their journey, providing digital-centric self-service capabilities, understanding consumers' journeys, creating smarter hyper-personalized connections and guiding seamless omnichannel interactions. The Company helps organizations transform their workforce experience with solutions aimed at engaging employees, optimizing operations and automating processes. In the Financial Crime and Compliance market, the Company protects financial services organizations and their customers’ accounts and transactions, with solutions that identify risks and help prevent money laundering and fraud, as well as help ensure compliance in real-time. The Company is at the forefront of several industry technological disruptions that have greatly accelerated in the last two years: the adoption of cloud platforms by organizations of all sizes and verticals, the shift of consumer and organizational preferences towards digital-centric services and experiences, the growing acceptance and adoption of AI, an increase in consumer self-service and the need to manage, optimize and engage a diverse and remote workforce while retaining and attracting top talents. The Company's suite of integrated portfolio solutions, based on our unique domain expertise, provide organizations engaged in customer experience, financial crime and public safety, with industry-leading agility and innovation that are essential for their success. b. Acquisitions: 1. Acquisitions in 2021: a. On June 17, 2021, the Company completed the acquisition of ContactEngine Limited ("ContactEngine"), a leading AI automation provider for customer self-service. The Company acquired ContactEngine for a total consideration of $94,897. Upon consummation of the acquisition, ContactEngine became a wholly-owned subsidiary of the Company. The acquisition was accounted for as a business combination. As of the acquisition date the Company preliminarily recorded core technology, customer relationships, customer backlog and goodwill in amounts of $20,558; $3,279; $5,493 and $69,593, respectively. The estimated useful life of the core technology, customer relationships, and customer backlog is five years, six years and two years, respectively. Goodwill generated from this business combination is attributed to synergies between the Company's and ContactEngine's respective products and services. The goodwill is not deductible for income tax purposes. The results of ContactEngine's operations have been included in the consolidated financial statements since June 17, 2021. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated financial statements. b. During 2021, the Company acquired certain additional companies, which were accounted for as business combinations for a total consideration of $59,317. The financial results of those acquired companies are included in the Company’s consolidated financial statements from their respective acquisition dates. The results from these acquisitions individually and in aggregate, were not material to the Company’s consolidated financial statements. The Company preliminary recorded $20,036 of identifiable intangible assets based on their estimated fair values, and $38,590 of residual goodwill, from these acquisitions. The preliminary fair value of assets acquired and liabilities assumed from acquisitions, completed during 2021, were based upon preliminary calculations and valuations, and the estimates and assumptions for these acquisitions are subject to change as the Company obtains additional information during the respective measurement periods (up to one year from the respective acquisition dates). 2. Acquisitions in 2020: a. On August 18, 2020 the Company completed the acquisition of Guardian Analytics, Inc. ("Guardian Analytics"), a leading AI cloud-based financial crime risk management solution provider. The Company acquired Guardian Analytics for total consideration of $113,921. Upon acquisition, Guardian Analytics became a wholly-owned subsidiary of the Company. The acquisition was accounted for as a business combination. As of the acquisition date, the Company preliminarily recorded core technology, customer relationships, customer backlog and goodwill in amounts of $38,341; $6,659; $1,028 and $65,888, respectively. The estimated useful life of the core technology, customer relationships, and customer backlog is six years, eight years and two years, respectively. Goodwill generated from this business combination is attributed to synergies between the Company's and Guardian Analytics' respective products and services. The goodwill is not deductible for income tax purposes. The results of Guardian Analytics' operations have been included in the consolidated financial statements since August 18, 2020. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated financial statements. b. During 2020, the Company acquired certain additional companies (in one of them the Company acquired 50.1% of the share capital (the "2020 Subsidiary") of the company), which were accounted for as business combinations for a total consideration of $50,686. The financial results of those acquired companies are included in the Company’s consolidated financial statements from their respective acquisition dates. The results from these acquisitions individually and in aggregate were not material to the Company’s consolidated financial statements. The Company preliminary recorded $22,968 of identifiable intangible assets based on their estimated fair values, and $54,869 of residual goodwill. The preliminary fair value of the non-controlling interest on the acquisition date was approximately $24,985. As of December 2021, the Company holds 70.1% of the 2020 Subsidiary. See Note 2aa. The estimated fair value of assets acquired and liabilities assumed from acquisitions completed during 2020 were based upon preliminary calculations and valuations. These estimates were finalized during 2021 as part of the measurement period. See Note 8 regarding changes made during 2021. 3. Acquisitions in 2019: During 2019, the Company acquired certain companies accounted for as a business combination and an asset acquisition (see also Note 2z ). The financial results of the acquired companies are included in the Company’s consolidated financial statements from their respective acquisition dates. The results from each of these companies were not individually material to the Company’s consolidated financial statements. In the aggregate, the total purchase price for these acquisitions was approximately $26,671. The Company recorded $15,683 of identifiable intangible assets, based on their estimated fair values, and $14,480 of residual goodwill. 4. Acquisitions related costs: During 2021, 2020 and 2019, acquisition related costs amounted to $1,761, $1,720 and $720, respectively, and were included in general and administrative expenses. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of NICE Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. c. Principles of consolidation: The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three months or less at acquisition. e. Marketable securities: The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt Securities" and ASC No. 326, "Financial Instruments - Credit Losses". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" ("AFS") are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income, net of taxes. Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. For each reporting period, the Company evaluates whether declines in fair value below carrying value are due to expected credit losses, as well as the Company's ability and intention to hold the investment until a forecasted recovery occurs, in accordance with ASC 326. Allowance for credit losses on AFS debt securities are recognized as a charge in financial expenses (income), net, on the consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss). In 2020 and 2019, no other-than-temporary impairment were recorded. As of December 31, 2021, no credit losses have been recorded. The Company classifies all securities with maturities beyond 12 months as current assets under the caption marketable securities on the consolidated balance sheet. These securities are available to support current operations and the company may sell these debt securities prior to their stated maturities. f. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 4 - 14 Leasehold improvements Over the lease term or the estimated useful life of the improvements, whichever is shorter g. Internal use software costs: The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC 350-40, internal-use software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. h. Other intangible assets, net: Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 4 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 i. Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment" whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends. Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2021, 2020 and 2019, no impairment charges were recognized. j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. In 2020 the Company adopted ASU 2017-04. Therefore, if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which the Company adopted as of January 1, 2020. The impairment test compares carrying values of the reporting units to their respective estimated fair values. If the carrying value exceeds the fair value, then the Company recognizes impairment of goodwill for the amount of this excess. For each of the three years in the period ended December 31, 2021, 2020 and 2019, no impairment was identified. k. Exchangeable senior notes: The Company applies ASC 815, "Derivative and Hedging" ("ASC"), and ASC 470, "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as paid-in capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. On December 31, 2021, the Company entered into the First Supplemental Indenture to the 2017 Indenture (the "First Supplemental Indenture"). In accordance with the First Supplemental Indenture, the Company irrevocably elected cash settlement for the principal and any premium due upon conversion to apply to all conversions of notes issued under the 2017 Indenture (the "2017 Notes") with an exchange date (as defined in the 2017 Indenture) on or after December 31, 2021. As a result, the 2017 Notes are no longer subject to the cash conversion guidance and the conversion option is bifurcated as a derivative subsequent to the change in terms as described above and reclassified from equity to liability at an amount equal to the fair value of the conversion option at that date. Differences in the amount previously recognized in equity and the fair value of the conversion option at the date of reclassification are accounted for in equity. Subsequent changes in fair value of the derivative are reflected in financial income (expenses). See Note 15 for further details. l. Revenue recognition: The Company generates revenues from sales of cloud, service, and software products, which include software license, SaaS, network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and trainings. The Company sells its cloud, products and services directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). Under the standard, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company performs the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) there is an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services; (ii) the contract has commercial substance; and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intent to pay, which is based on a variety of factors, including the customer's historical payment experience. 2) Identify the performance obligations of the contract The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e., if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. In addition, the Company elected to apply the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company will transfer a promised good or service to a customer and when the customer will pay for that good or service will be one year or less. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. 4) Allocate the transaction price to the performance obligations in the contract The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") out of the total consideration of the contract. The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligations. The Company typically establishes a SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. SSP for products and services can evolve over time due to changes in the Company's pricing practices that are influenced by intense competition, changes in demand for products and services, and economic factors, among others. For a product where the SSP cannot be determined based on observable prices, given the same products are sold for a broad range of amounts (that is, the selling price is highly variable), the SSP included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to these product revenues. 5) Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its cloud revenues from subscription services, which are comprised of subscription fees from granting customers access to the Company’s cloud platforms, network connectivity and services fees for deployment of certain cloud platforms. Revenue from subscription services is recognized either ratably over the contract period or based on usage, revenue from network connectivity is based on customer call usage and is recognized in the period the call is initiated, and services fees for deployment are amortized over average customer life. Revenue from software licenses, support and maintenance services are recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Software license revenues are recognized at the point in time when the software license is delivered and the customer obtains control of the asset. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Professional services revenues, except fees for deployment of certain cloud platforms, are recognized as services are performed. Deferred revenues, which represent a contract liability, represent unrecognized fees collected mostly for maintenance, cloud and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was approximately $215,805 for the year ended December 31, 2021. As of December 31, 2021, the aggregate amount of the total transaction price allocated in contracts with original duration greater than one year of the remaining performance obligations was approximately $1,773,182. For performance obligations which are recognized over time, based on usage, the Company elected to disclose only the contractual minimum attributed to these performance obligations, as part of the remaining performance obligation disclosure. As of December 31, 2021, the Company expects to recognize the majority of the revenue of remaining performance obligations over the next 24 months. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations pursuant to ASC 606. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of one year or less. m. Costs to Obtain Contracts: The Company capitalizes certain sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. The Company applies judgment in estimating the amortization period by taking into consideration customer contract terms, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization of sales commission expenses are included in Selling and Marketing expenses in the accompanying consolidated statements of income. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Commission expense for the years 2021, 2020 and 2019 were $130,466, $100,219 and $92,468, respectively. n. Research and development costs: Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. o. Income taxes: To prepare the consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates, and in certain of these jurisdictions, it is calculated based on the Company's assumptions as to its entitlement to various benefits under the applicable tax laws in the jurisdiction. The entitlement to such benefits depends upon the Company's compliance with the terms a nd conditions set out in these laws. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (on a cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. p. Non-royalty grants: Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers generated from a multitude of markets in countries around the world. The Company performs ongoing credit evaluations of its customers and insures some of its receivables with a credit insurance company. A general allowance for credit losses is provided, based on the length of time the receivables are past due. The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S. government agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment per minimum credit rating or specific issuer, thereby reducing credit risk concentrations. The Company enter into foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. r. Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expenses for 2021, 2020 and 2019 amounted to $8,810, $9,649 and $7,656, respectively. The Company also has other liabilities for severance pay in other jurisdictions. The Company has multiple 401(k) defined contribution plans covering certain employees in the U.S. All eligible employees may elect to contribute a portion of their eligible compensation, generally not g reater than an annual contribution of $19.5 in 2021 and 2020, and $19 in 2019 (for certain employees over 50 years of age the maximum annual contribution was $26 per year in 2021 and 2020 and $25 in 2019) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company, at its discretion, matches 50% of employee contributions to the plan up to a limit of 6-8% of their eligible compensation. In the years 2021, 2020 and 2019, the Company recorded an expense for all matching contributions in the amount of $9,366; $8,893 and $8,068, respectively. s. Leases The Company elected to combine its lease and non-lease components for car leases and to not recognize a lease liability and a right-of-use ("ROU") asset on the balance sheet for leases with a term of twelve months or less. The Company recognizes the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The ROU asset is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. t. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As further described in Note 15, the Company entered into an exchangeable note hedge transaction and warrants transaction in 2017. While the exchangeable note hedge transaction is anti-dilutive and as such is not included in the computation of diluted earnings per share, the warrants transaction had a dilutive effect, and as such, was included in the computation of the diluted earnings per share. The number of shares related to the outstanding exchangeable note hedge transaction is 3,457,475. Since it is the Company's intention and ability to settle the convertible senior notes issued in 2017 in cash, the potential issuance of shares related to these notes does not have a dilutive effect on the shares. In addition, on December 31, 2021, the Company entered into the First Supplemental Indenture according to which the Company irrevocably elected cash settlement for the principal and any premium due upon conversion to apply to all conversions of the 2017 Notes issued under the 2017 Notes with an exchange date (as defined in the 2017 Indenture) on or after December 31, 2021. As a result, the 2017 Notes do not have a dilutive effect. On December 31, 2021, the Company irrevocably elected to settle the principal of the convertible senior notes issued in 2020 in cash. As a result , the Company will use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion premium will have a dilutive impact on diluted net income per share only when the average market price of an ordinary share for a given period exceeds the conversion price of $299.19 per share. As a result, 1,537,504 shares underlying the conversion option of the convertible senior notes issued in 2020 are not considered in the calculation of diluted net income per share in either 2020 or 2021, as the effect would be anti-dilutive. The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was $4,754; $2,295 and $4,921 for the years 2021, 2020 and 2019, respectively. u. A ccounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of stock base compensation expenses based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company accounts for forfeitures as they occur. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. v. Fair value of financial instr uments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") for valuing financial instruments. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities, exchangeable senior notes and foreign currency derivative contracts are classified within Level 2 (see Notes 3, 10 and 15). The carrying amounts of cash and cash |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Short-term investments include marketable securities in the amount of $1,041,589 and $1,012,282 as of December 31, 2021 and 2020, respectively and short-term bank deposits in the amounts of $4,506 and $9,332 as of December 31, 2021 and 2020, respectively. The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2021 and 2020: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Corporate debentures $ 1,012,615 $ 973,029 $ 3,883 $ 15,016 $ (5,560) $ (343) $ 1,010,939 $ 987,702 U.S. Treasuries 14,658 17,613 156 418 — — 14,815 18,031 U.S. Government Agencies 16,005 6,546 — 3 (169) — 15,835 6,549 $ 1,043,278 $ 997,188 $ 4,039 $ 15,437 $ (5,729) $ (343) $ 1,041,589 $ 1,012,282 The scheduled maturities of available-for-sale marketable securities as of December 31, 2021 are as follows: Amortized Estimated Due within one year $ 280,261 $ 281,365 Due after one year through five years 763,017 760,224 $ 1,043,278 $ 1,041,589 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2021 and 2020 are as indicated in the following tables: December 31, 2021 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 494,731 $ (4,413) $ 156,840 $ (1,147) $ 651,571 $ (5,560) U.S. Treasuries — — — — — — U.S. Government Agencies 15,835 (169) — — 15,835 (169) $ 510,566 $ (4,582) $ 156,840 $ (1,147) $ 667,406 $ (5,729) December 31, 2020 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 194,587 $ (337) $ 8,590 $ (6) $ 203,177 $ (343) U.S. Treasuries 2,936 — — — 2,936 — U.S. Government Agencies — — — — — — $ 197,523 $ (337) $ 8,590 $ (6) $ 206,113 $ (343) |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2021 2020 Government authorities $ 93,505 $ 81,012 Interest receivable 4,992 5,829 Prepaid expenses 76,709 81,459 Other 9,398 7,040 $ 184,604 $ 175,340 |
PREPAID EXPENSES AND OTHER LONG
PREPAID EXPENSES AND OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER LONG-TERM ASSETS | PREPAID EXPENSES AND OTHER LONG-TERM ASSETS December 31, 2021 2020 Deferred commission costs $ 138,343 $ 94,087 Severance pay fund 13,180 13,511 Prepaid expenses 66,882 39,875 Other 6,039 6,187 $ 224,445 $ 153,660 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET December 31, 2021 2020 Cost: Computers and peripheral equipment $ 207,843 $ 192,898 Internal use software 191,697 145,914 Office furniture and equipment 6,585 10,417 Leasehold improvements 56,835 56,976 462,960 406,205 Accumulated depreciation: Computers and peripheral equipment 162,487 147,618 Internal use software 109,501 75,743 Office furniture and equipment 3,529 6,733 Leasehold improvements 41,789 38,326 317,306 268,420 Depreciated cost $ 145,654 $ 137,785 Depreciation expense totaled $65,411, $67,892 and $60,174 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recorded a reduction of $12,322 and $22,355 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use for the years ended December 31, 2021 and 2020, respectively. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | OTHER INTANGIBLE ASSETS, NET a. Definite-lived other intangible assets: December 31, 2021 2020 Original amounts: Core technology $ 665,555 $ 635,250 Customer relationships, backlog and distribution network 288,755 269,717 Trademarks 44,440 44,440 998,750 949,407 Accumulated amortization: Core technology 428,880 353,558 Customer relationships, backlog and distribution network 246,609 207,165 Trademarks 27,883 22,681 703,372 583,404 Other intangible assets, net $ 295,378 $ 366,003 b. Amortization expense amounted to $118,681, $114,134 and $113,056 for the years ended December 31, 2021, 2020 and 2019, respectively. c. Estimated amortization expense: For the year ended December 31, 2022 $ 106,566 2023 85,026 2024 65,680 2025 19,302 2026 15,189 Thereafter 3,615 $ 295,378 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Following the Company's acquisitions in 2021 and 2020, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2021 and 2020 are as follows: Year ended December 31, 2021 Customer Engagement Financial Crime and Compliance Total As of January 1, 2021 $ 1,153,023 $ 350,229 $ 1,503,252 Acquisitions (*) 108,183 (427) 107,756 Functional currency translation adjustments (4,057) (195) (4,252) As of December 31, 2021 $ 1,257,149 $ 349,607 $ 1,606,756 (*) Including adjustment of $427 resulting from finalization of purchase price allocations with respect to 2020. Year ended December 31, 2020 Customer Engagement Financial Crime and Compliance Total As of January 1, 2020 $ 1,114,680 $ 263,738 $ 1,378,418 Acquisitions 35,034 85,723 120,757 Functional currency translation adjustments 3,309 768 4,077 As of December 31, 2020 $ 1,153,023 $ 350,229 $ 1,503,252 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2021 2020 Payroll and related expenses $ 232,578 $ 190,274 Accrued expenses 112,856 95,951 Government authorities 140,443 127,129 Other 1,670 3,820 $ 487,547 $ 417,174 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, an entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Gains and losses on derivatives instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that are attributable to a particular risk), are recorded in accumulated other comprehensive income (loss) and reclassified into in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. The Company entered into option and forward contracts to hedge a portion of anticipated New Israeli Shekel ("NIS"), Indian Rupee ("INR") and Philippine peso ("PHP") payroll and benefit payments as well as facilities related payments. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured at fair value. These transactions are effective and, as a result, gain or loss on the derivative instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified as payroll expenses, facility expenses or finance expenses, respectively, at the time that the hedged income/expense is recorded. Notional amount Fair value December 31, December 31, 2021 2020 2021 2020 Option contracts to hedge payroll expenses INR — 15,733 — 795 Option contracts to hedge lease obligations expenses INR — 901 — 46 Forward contracts to hedge payroll expenses NIS 125,884 67,652 4,164 4,807 expenses INR 42,562 7,866 798 168 expenses PHP 705 1,623 (5) 3 Forward contracts to hedge lease obligations expenses INR 1,451 451 30 10 $ 170,602 $ 94,226 $ 4,987 $ 5,829 The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2021, the Company expects to reclassify all of its unrealized gains and losses from accumulated other comprehensive income to earnings during the next twelve months. The fair value of the Company's outstanding derivative instruments at December 31, 2021 and 2020 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2021 2020 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ — $ 841 Foreign exchange forward contracts Prepaid expenses and other current assets 4,992 4,988 Derivative liabilities: Foreign exchange forward contracts Accrued expenses and other liabilities $ (5) $ — The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2021, 2020 and 2019 is summarized below: Amount of gain (loss) recognized in Year Ended December 31, 2021 2020 2019 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ 4,993 $ 5,901 $ 2,108 Option contracts 31 (947) 3,387 $ 5,024 $ 4,954 $ 5,495 Derivatives in foreign exchange cash flow hedging relationships for the years ended December 31, 2021, 2020 and 2019 is summarized below: Amount of gain (loss) reclassified from other comprehensive income Year Ended December 31, Statements of income line item 2021 2020 2019 Option contracts to hedge payroll and facility expenses Cost of revenues and operating expenses $ (771) $ (490) $ 320 Forward contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and financial expenses (5,157) (1,979) (749) $ (5,928) $ (2,469) $ (429) |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company has entered into various non-cancelable operating lease agreements for certain office spaces and motor vehicles. The leases have original lease periods expiring between 2021 and 2037. The Company does not assume renewals in its determination of the lease term unless the renewals are considered as reasonably assured at lease commencement. The operating lease cost for the year ended December 31, 2021 was $23,461. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2021 Cash payments related to operating lease $ 25,612 New right-of-use assets obtained in exchange for operating lease obligations $ 561 Maturities of lease liabilities were as follows: Operating Leases 2022 $ 22,766 2023 14,695 2024 11,546 2025 9,910 2026 9,533 Thereafter 63,016 Total lease payments 131,466 Less imputed interest (30,767) Total $ 100,699 Supplemental balance sheet information related to leases was as follows: Year ended December 31, 2021 Current maturities of operating leases 19,514 Long-term operating leases 81,185 Total operating lease liabilities $ 100,699 Weighted-average remaining operating lease term 10.94 Weighted-average discount rate of operating leases 5.45 % |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES a. Commitments: The Company is also obligated under certain agreements with its suppliers to purchase licenses and hosting services. These non-cancelable obligations as of December 31, 2021 are $96,054. b. Legal proceedings: From time to time the Company or its subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not believe it will have a material effect on its consolidated financial position, results of operations, or cash flows. c. Bank Guarantees: The Company obtained bank guarantees as of December 31, 2021 of $4,016, primarily in connection with office lease agreements. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | TAXES ON INCOME a. Israeli taxation: 1. Corporate tax: Commencing 2012, NICE Ltd. and its Israeli subsidiary elected the Preferred Enterprise regime to apply under the Law for the Encouragement of Capital Investments (the "Investment Law"). The election is irrevocable. In December 2016, the Israeli Knesset passed a number of changes to the Investments Law regimes. These changes came into law in May 2017, retroactively effective beginning January 1, 2017, upon the passing into law of Regulations promulgated by the Finance Ministry to implement the "Nexus Principles" based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Such Regulations provide rules for implementation of the new beneficial Preferred Technology Enterprise tax regime. The Company believes it qualifies as a Preferred Technology Enterprise and accordingly is eligible for a tax rate of 12% on its preferred technology income, as defined in such regulations, beginning from tax year 2017 and onwards. The Company expects that it will continue to qualify as a Preferred Technology Enterprise in subsequent tax years. Income not eligible for Preferred Enterprise or Preferred Technology Enterprise benefits is taxed at the regular corporate tax rate, which remains 23% in 2021 (23% in 2020 and 2019 as well). Prior to 2012, most of NICE Ltd. and its Israeli subsidiary's income was exempt from tax or subject to reduced tax rates under the Investment Law. Upon distribution of exempt income, the distributing company was subject to reduced corporate tax rates ordinarily applicable to such income under the Investment Law. Currently, income subjected to a reduced tax rate under the Preferred Enterprise and Preferred Technology Enterprise Regime will be freely distributable as dividends, subject to a 20% withholding tax (or lower, under an applicable tax treaty). However, upon the distribution of a dividend from such Preferred Income to an Israeli company, no withholding tax will be imposed In September 2013, and pursuant to a temporary Israeli government tax relief, the Company made an election to pay reduced corporate tax on undistributed exempt income, generated under the Investment Law and accumulated by the company until December 31, 2011 and be entitled to distribute a dividend, without being required to pay additional corporate tax, from such income. NICE Ltd. duly released its and its Israeli subsidiary's tax-exempted income through 2011. In addition, under this election the Company was required to make and complete certain qualified investments in Israeli "industrial projects" (as defined in the Law), by December 31, 2018, which the Company believes it has done. In December 2020, in the context of a multi-year settlement with the Israeli Tax Authorities, the Israeli subsidiary paid a reduced corporate tax rate on its 2012 tax-exempted earnings. Further to the 2013 election and recent 2020 settlement, neither NICE Ltd. nor its Israeli subsidiary would have a tax liability upon future distributions of any previously tax-exempted earnings. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, NICE Ltd. and its Israeli subsidiary calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars, is translated into NIS according to the exchange rate as of December 31st of each year. 3. Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969: NICE Ltd. and its Israeli subsidiary believe they each currently qualify as an "Industrial Company" as defined by the Investment Law and, as such, are entitled to certain tax benefits including deduction of public offering expenses in three equal annual installments and amortization of cost of purchased know-how and patents for tax purposes over 8 years. b. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. The Company's consolidated tax rate depends on the geographical mix of where its profits are earned. In 2021, the Company's U.S. subsidiaries are subject to combined federal and state income taxes of approximately 24.8% and its subsidiaries in the U.K. and India are subject to corporation tax at a rate of approximately 19% and 17.5%, respectively. Neither Israeli income taxes, foreign withholding taxes nor deferred income taxes were provided in relation to undistributed earnings of the Company's foreign subsidiaries. This is because the Company has the intent and ability to reinvest these earnings indefinitely in the foreign subsidiaries and therefore those earnings are continually redeployed in those jurisdictions. As of December 31, 2021, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $1,221,292 with a corresponding unrecognized deferred tax liability of $154,929. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes, subject to an adjustment for foreign tax credits, and foreign withholding taxes. c. U.S. Tax: On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "U.S. Tax Reform" or "TCJA"), a comprehensive tax legislation that includes significant changes to the taxation of business entities. These changes include several key tax provisions, among others: (i) a permanent reduction to the statutory federal corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017; (ii) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a modified territorial system (along with certain new rules designed to prevent erosion of the U.S. income tax base - "BEAT"); (iii) establishing immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing certain business deductions and credits; and (iv) providing a permanent deduction to corporations generating revenues from non-US markets (known as a deduction for foreign derived intangible income -"FDII"). The final impact of the TCJA may differ due to, among other things, possible changes in the interpretations and assumptions made by the Company as a result of additional information, additional guidance or finalization of law and regulations that will be issued by the U.S. Department of Treasury, the IRS or other standard-setting bodies, and which may impact the Company's future financial statements, and will be accounted for when such guidance is issued. d. Net operating loss carryforward: As of December 31, 2021, the Company and certain of its subsidiaries had tax loss carry-forwards totaling in aggregate approximately $221,908, which can be carried forward and offset against taxable income. Approximately $107,442 of these carry-forward tax losses have no expiration date, with the balance expiring between the years 2022 and 2040. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. e. Deferred tax assets and liabilities: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows : December 31, 2021 2020 Deferred tax assets: Net operating losses carryforward and tax credits $ 50,551 $ 42,154 Intra-entity transfer of certain intangible assets ( *) 18,986 20,734 Operating leases liabilities 22,454 24,286 Share based payments 28,721 20,330 Research and development costs 21,643 9,210 Reserves, allowances and other 47,405 46,943 Deferred tax assets before valuation allowance 189,760 163,657 Valuation allowance (10,464) (10,227) Deferred tax assets 179,296 153,430 Deferred tax liabilities: Acquired intangibles (59,678) (81,320) Operating lease right-of-use assets (19,001) (20,419) Acquired deferred revenue (1,907) (1,785) Internal use software and other fixed assets (16,835) (19,168) Prepaid compensation expenses (30,788) (23,965) Debt (2,937) (3,679) Other (333) (2,468) Deferred tax liabilities (131,479) (152,804) Deferred tax assets, net $ 47,817 $ 626 (*) During the years ended December 31, 2021, 2020 and 2019, the Company completed intra-entity transfers of certain intangible assets to a different tax jurisdiction. As a result of the transfers, the Company utilized net operating losses carried forward, incurred a tax expense on capital gain, released valuation allowances and recorded a deferred tax asset. December 31, 2021 2020 Deferred tax assets $ 55,246 $ 32,735 Deferred tax liabilities (7,429) (32,109) Deferred tax assets, net $ 47,817 $ 626 The Company has provided valuation allowances in respect of certain deferred tax assets resulting from tax loss carry forwards and other reserves and allowances due to uncertainty concerning their realization. f. A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year Ended December 31, 2021 2020 2019 Income before taxes on income, as reported in the consolidated statements of income $ 240,619 $ 237,188 $ 234,273 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (2.2) % (3.8) % (7.7) % Changes in valuation allowance 1.0 % 0.5 0.7 % Earnings taxed under foreign law 0.2 % (0.5) % 17.9 % Tax settlements and other adjustments (1.8) % (0.6) % 5.8 % Intangible assets transfer (1.7) % 0.1 % (14.2) % Other (1.3) % (1.5) % (4.9) % Effective tax rate 17.2 % 17.2 % 20.6 % (*) The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits" status on net earnings per ordinary share is as follows Year Ended December 31, 2021 2020 2019 Basic $ 0.08 $ 0.15 $ 0.29 Diluted $ 0.08 $ 0.14 $ 0.28 g. Income before taxes on income is comprised as follows: Year Ended December 31, 2021 2020 2019 Domestic $ 53,703 $ 87,008 $ 169,236 Foreign 186,916 150,180 65,037 $ 240,619 $ 237,188 $ 234,273 h. Taxes on income (tax benefit) are comprised as follows: Year Ended December 31, 2021 2020 2019 Current $ 80,903 $ 74,096 $ 60,586 Deferred (39,507) (33,254) (12,217) 41,396 40,842 48,369 Domestic 16,171 15,995 8,614 Foreign 25,225 24,847 39,755 $ 41,396 $ 40,842 $ 48,369 Of which: Year Ended December 31, 2021 2020 2019 Domestic taxes: Current $ 27,400 $ 22,323 $ 29,075 Deferred (11,229) (6,328) (20,461) 16,171 15,995 8,614 Foreign taxes: Current 53,503 51,773 31,196 Deferred (28,278) (26,926) 8,559 25,225 24,847 39,755 Taxes on income $ 41,396 $ 40,842 $ 48,369 i. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of uncertain tax position is as follows: December 31, 2021 2020 Uncertain tax positions, beginning of year $ 73,256 $ 64,884 Increases in tax positions for prior years 3,190 6,456 Increases in tax positions for current year 9,248 6,935 Settlements — (378) Expiry of the statute of limitations (8,647) (4,641) Uncertain tax positions, end of year $ 77,047 $ 73,256 The Company accrued $14,495 and $8,453 due to interest and penalties related to uncertain tax positions as of December 31, 2021 and 2020, respectively. During the course of 2019, upon receipt of an information letter, the Company's United Kingdom Subsidiary Group elected to register for the United Kingdom Profits Diversion Compliance Facility, covering the years 2015-2018. During December 2021, this was extended to include the year 2019. NICE Ltd. is currently in the process of routine Israeli income tax audits for the tax years 2016 through 2019, and on February 25, 2021 received an Order of Final Assessment from the Israeli Tax Authorities for the tax year 2014 in the sum of $16,000 and on February 28, 2022 received an Order of Final Assessment for the tax year 2015 in the sum of $14,675 (refer to Note 19). In December 2020, the Israeli Subsidiary concluded a multi-year settlement encompassing tax years 2015-2018. As of December 31, 2021, U.S. federal income tax returns filed by the Company's U.S. subsidiaries for the tax years prior to 2018 are no longer subject to general audit. To the extent the Company or its subsidiaries generated net operating losses or tax credits in closed tax years, future use of the net operating loss or tax credit carry forward balance would be subject to examination within the relevant statute of limitations for the year in which it was utilized. The Company and its subsidiaries are still subject to other income tax audits for the tax years of 2011 through 2020. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY a. The ordinary shares, par value NIS 1.0 per share, of the Company are traded on the Tel-Aviv Stock Exchange and its American Depositary Shares ("ADSs"), each representing one fully paid ordinary share, are traded on The NASDAQ Stock Market. b. Share option plan: 2016 Share Incentive Plan In February 2016 the Company adopted the 2016 Share Incentive Plan (the "2016 Plan" ). The Company adopted the 2016 Plan to provide incentives to employees, directors, consultants and/or contractors by rewarding performance and encouraging behavior that will improve the Company’s profitability. Under the 2016 Plan, the Company's employees, directors, consultants and/or contractors may be granted any equity-related award, including: any type of an option to acquire the Company's ordinary shares; share appreciation right; share and/or restricted share award ("RSA"); restricted stock unit ("RSU") and/or other share unit; and/or other share-based award and/or other right or benefit under the 2016 Plan, including any such equity-related award that is a performance-based award (each an "Award"). Generally, under the terms of the 2016 Plan, unless determined otherwise by the administrator of the 2016 Plan, 25% of an Award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. Specifically with respect to RSUs and options granted with an exercise price equal to the nominal value of an ordinary share ("par value options"), unless determined otherwise by the Board of Directors, 25% of the RSUs and the par value options granted become vested on each of the four consecutive annual anniversaries following the date of grant. Certain executive officers are entitled to acceleration of vesting of Awards in the event of a change of control, subject to certain conditions. Awards with a vesting period expire six years after the date of grant. Pursuant to a resolution of the Company's Board of Directors dated February 4, 2014, options that are performance-based and that were granted during calendar year 2014 and thereafter shall expire seven years following the date of grant. The maximum number of shares that may be subject to Awards granted under each of the Plans is calculated each calendar year as 3% of the Company’s issued and outstanding share capital as of December 31 of the preceding calendar year (pursuant to an amendment of the 2016 Plan approved by the Board of Directors on October 2, 2019). Such amount is reset for each calendar year. Awards are non-transferable except by will or the laws of descent and distribution. Options granted under the 2016 Plan are granted at an exercise price equal to the average of the closing prices of one ADR as quoted on the NASDAQ market during the 30 consecutive calendar days preceding the date of grant, unless determined otherwise by the administrator of the 2016 Plan (including par value options). The Company’s Board of Directors also adopted an addendum to the 2016 Plan for Awards granted to residents of Israel (the "Addendum") and resolved to elect the "Capital Gains Route" (as defined in Section 102(b)(2)) of the Israeli Income Tax Ordinance-5721-1961 ("Tax Ordinance") for the grant of Awards to Israeli grantees. There is also a U.S. addendum under the 2016 Plan that applies to non-qualified stock options for purposes of U.S. tax laws. During 2021, the Company granted 1,187,765 options and restricted share units under the 2016 Plan (which constituted 1.88% of the Company issued and outstanding share capital as of December 31, 2020). Pursuant to the terms of the acquisitions of, Nexidia, inContact, Mattersight, Guardian Analytics and ContactEngine, the Company assumed or replaced unvested options, RSAs and RSUs and converted them or replaced them with the Company's options, RSAs and RSUs, as applicable, based on an agreed exchange ratio. Each assumed or replaced option, RSA and RSU is subject to the same terms and conditions, including vesting, exercisability and expiration, as originally applied to any such option, RSA and RSU immediately prior to the acquisition. The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2021, 2020 and 2019 was estimated using the following assumptions: 2021 2020 2019 Expected volatility 26.21%-27.87% 0.00%-25.79% 19.44%-21.54% Risk free interest rate 0.30%-0.93% 0.00%-0.86% 1.43%-2.55% Expected dividend $ — — — Expected term (in years) 3.5 3.5 3.5 A summary of the Company's stock options activity and related information for the year ended December 31, 2021, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term Aggregate intrinsic Outstanding at January 1, 2021 988,374 22.49 4.26 258,014 Granted 437,610 12.80 Exercised 232,376 18.41 Cancelled 326 39.52 Forfeited 84,630 0.46 Outstanding at December 31, 2021 1,108,652 21.20 4.42 313,083 Exercisable at December 31, 2021 375,521 54.57 3.14 93,516 The weighted-average grant-date fair value of options granted during the years 2021, 2020 and 2019 was $243.34, $192.44 and $121.21, respectively. The total intrinsic value of options exercised, and restricted shares vested during the years 2021, 2020 and 2019 was $189,408, $180,234 and $87,872, respectively. The options outstanding under the Company's stock option plans as of December 31, 2021 have been separated into ranges of exercise price as follows: Ranges of Options outstanding as of December 31, 2021 Weighted Weighted Options Exercisable as of December 31, 2021 Weighted (Years) $ $ $ 0.27 - 0.31 951,076.0 4.57 0.29 230,960.0 0.3 $ 6.72 - 8.57 1,820.0 2.13 7.03 1,820.0 7.0 $ 20.44- 24.99 3,019.0 5.97 21.84 2,744.0 21.5 $ 37.21 - 54.51 4,584.0 4.43 45.66 3,632.0 43.4 $ 57.10 - 85.14 30,968.0 1.51 79.53 30,968.0 79.5 $ 96.74 24,891.0 2.37 96.74 24,891.0 96.7 $ 151.63 - 224.18 68,718.0 4.14 183.22 68,718.0 183.2 $ 232.2 23,576.00 5.32 232.20 11,788.00 232.20 1,108,652 4.42 21.20 375,521 54.57 A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2021, is as follows: Number of RSU and RSA ( *) Outstanding at January 1, 2021 1,463,687 Granted 750,155 Vested (485,124) Forfeited (119,709) Outstanding at December 31, 2021 1,609,009 (*) NIS 1.0 par value, which represents approximately $0.32. The weighted-average grant-date fair value of restricted shares granted during the year 2021 was $273.31. As of December 31, 2021, the total compensation cost related to non-vested awards not yet recognized was approximately $298,328, which is expected to be recognized over a period of up to four years. The total equity-based compensation expense related to all of the Company's equity-based awards recognized for the years ended December 31, 2021, 2020 and 2019 was comprised as follows: Year ended 2021 2020 2019 Cost of revenues $ 17,880 $ 11,313 $ 11,244 Research and development, net 28,558 13,668 9,239 Selling and marketing 42,021 30,262 26,650 General and administrative 67,914 48,221 34,897 Total stock-based compensation expenses $ 156,373 $ 103,464 $ 82,030 c. Treasury shares: On January 10, 2017, the Company's Board of Directors authorized a program to repurchase up to $150,000 of the Company's issued and outstanding ordinary shares and ADSs. This share repurchase program commenced on April 7, 2017. Following completion of that plan, on February 12, 2020, the Company's Board of Directors authorized an additional program to repurchase up to $200,000 of the Company's issued and outstanding ordinary shares and ADSs. Repurchases may be made from time to time in the open market or in privately negotiated transactions in accordance with applicable securities laws and regulations. The timing and amount of the repurchase transactions will be determined by the Company's management and may depend on a variety of factors including market conditions, alternative investment opportunities and other considerations. These programs do not obligate the Company to acquire any particular amount of ordinary shares and ADSs and each program may be modified or discontinued at any time without prior notice. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Loan and revolving Credit Agreement In 2016, the Company entered into a Credit Agreement with certain lenders, pursuant to which a loan of $475,000 was provided to the Company. In January 2017, the Company prepaid a principal amount of $260,000, which resulted in $5,300 amortization of debt issuance costs. In November 2020, the Company prepaid the remaining principal amount of $215,000, which resulted in $725 amortization of debt issuance costs. The loan bore interest through maturity at a variable rate based upon, at the Company's option every interest period, either (a) the LIBOR rate for Eurocurrency borrowing or (b) an Alternate Base Rate ("ABR"), which is the highest of (i) the administrative agent's prime rate, (ii) one-half of 1.00% in excess of the overnight U.S. Federal Funds rate, and (iii) 1.00% in excess of the one-month LIBOR, plus in each case, an applicable margin. The applicable margin for Eurocurrency loans ranges, based on the applicable total net leverage ratio, from 1.25% to 2.00% per annum and the applicable margin for ABR loans ranges, based on the applicable total net leverage ratio, from 0.25% to 1.00% per annum. Debt issuance costs of $10,158 attributable to the loan were amortized as interest expense over the contractual term of the loan using the effective interest rate. Interest expense related to the liability for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Amortization of debt issuance costs $ 1,687 $ 1,004 Interest expense 3,848 7,676 Total interest expense recognized $ 5,535 $ 8,680 Effective interest rate 2.11 % 4.01 % Pursuant to the Credit Agreement, the Company was also granted a revolving credit facility that entitled the Company to borrow up to $75,000 with interest payable on the borrowed amount set at the same terms as the term loan, as well as a quarterly commitment fee on unfunded amounts ranging from 0.25% to 0.5%, subject to the achievement of certain leverage levels. Debt issuance costs of $1,667 attributable to the revolving credit loan were capitalized and amortized as interest expense over the contractual term of the agreement on a straight-line basis. Following the loan prepayment in November 2020 (as mentioned above), the Credit Agreement was terminated, resulting in the recognition of the remaining $325 amortization of Credit Agreement issuance costs. Exchangeable Senior Notes and Hedging Transactions 2017 Notes In January 2017, the Company issued $287,500 aggregate principal amount of exchangeable senior notes (the "2017 Notes") due 2024. In the event that the last reported sale price of the company’s ADS for at least 20 trading days (whether consecutive or not) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the exchange price ("Share Price Condition") or in the event of the satisfaction of certain other conditions, during set periods, as defined in the indenture governing the Notes, the holders of the exchangeable Senior Notes will have the option to exchange the Notes for (at the Company's election) (i) cash, (ii) ADSs or (iii) a combination thereof. As of December 31, 2021 and 2020, the Share Price Condition for the 2017 Notes was triggered and, accordingly, the net carrying amount of these 2017 Notes was presented in current liabilities. The Company may provide additional ADSs upon conversion if there is a "Make-Whole Fundamental Change" in the Company as defined in the indenture governing the 2017 Notes. The 2017 Notes are not redeemable by the Company prior to the maturity date apart from certain cases as set forth in the indenture governing the notes. The Company's intention and ability is to settle the 2017 Notes in cash. On December 31, 2021, the Company entered into the First Supplemental Indenture. In accordance with the First Supplemental Indenture, the Company irrevocably elected cash settlement for the principal and any premium due upon conversion (as defined in the 2017 Indenture) to apply to all conversions of 2017 Notes with an exchange date on or after December 31, 2021 . As a result of the requirement to deliver cash to settle the principal and any premium due upon conversion, on December 31, 2021, the Company reclassified from equity to liability the conversion option (a derivative) fair value of $292,940. The conversion option will be no longer eligible for ASC 815 scope exception. Therefore, a derivative accounting for the conversion option will be required. Debt issuance costs of $5,791 attributable to the 2017 Notes are amortized as interest expense over the contractual term of the notes using the effective interest rate. Interest is payable on the debentures semi-annually at the cash coupon rate, however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance. The Company received notices for conversion of $66 and $195,342 of principal amount of the 2017 Notes in 2020 and 2021, respectively, for which $5 and $177,308 were settled in 2020 and 2021, respectively. The Company paid the note holders the conversion value of the notes in cash. The cash conversion premium payment upon conversion of the 2017 Notes was offset by cash under the convertible bond hedge transactions entered into in connection with the offering of the 2017 Notes. As a result of the conversions, the Company recorded a $13,969 loss on extinguishment of debt calculated as the difference between the estimated fair value of the debt liability and the carrying value liability of the 2017 Notes as of the settlement dates. To measure the fair value of the converted debt liability as of the settlement dates, the applicable interest rates were estimated using Level 2 observable inputs and applied to the converted notes principal amounts. 2020 Notes In August 2020, the Company issued $460,000 aggregate principal amount of Exchangeable Senior Notes (the "2020 Notes" and together with the 2017 Notes, the "Notes") due 2025. In the event that the Share Price Condition is satisfied or in the event of the satisfaction of certain other conditions, during set periods, set forth in the indenture governing the 2020 Notes, the holders of the exchangeable Senior Notes will have the option to exchange the Notes for (at the Company's election) (i) cash, (ii) ADSs or (iii) a combination thereof. On December 31, 2021, the Company irrevocably elected that all conversions occurring on or after December 31, 2021 will be settled pursuant to a Combination Settlement (as defined in the 2020 Indenture) with a Specified Dollar Amount (as defined in the 2020 Indenture) no less than $1,000 per $1,000 principal amount of 2020 Notes. Generally, under this settlement method, the conversion value corresponding to the principal amount will be converted in cash, and the conversion value over the principal amount will be settled, at the Company’s election, in cash or shares or a combination thereof. The 2020 Notes are redeemable by the Company on or after September 21, 2023 upon the fulfillment of the Share Price Condition for cash in relation to the principal amount, and the conversion value over the principal amount will be settled, at the Company's election, in (i) cash, (ii) ADSs or (iii) a combination thereof, apart from certain cases as set forth in the indenture governing the Notes. The 2020 Notes do not bear regular interest, however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance. Debt issuance costs of $7,952 attributable to the 2020 Notes are amortized as interest expense over the contractual term of the 2020 Notes using the effective interest rate. The Company may provide additional ADSs upon conversion if there is a "Make-Whole Fundamental Change" in the Company as defined in the indenture governing the 2020 Notes. The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2025 Due 2024 Issuance date August 27, 2020 January 18, 2017 Maturity date September 15, 2025 January 15, 2024 Effective conversion date June 15, 2025 September 15, 2023 Principal amount $460,000 $110,187 Cash coupon rate (per annum) —% 1.25% Conversion rate effective (per $1000 principal amount) $3.34 $12.05 Effective conversion price (per ADS) $299.19 $82.96 The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: 2020 Notes 2017 Notes December 31, December 31, 2021 2020 2021 2020 Principal $ 460,000 $ 460,000 $ 110,187 $ 287,495 Conversion option (Level 2) — 292,940 Less: Debt issuance costs, net of amortization (5,975) (7,460) (780) (2,914) Unamortized discount (24,758) (31,203) (6,401) (24,700) Net liability carrying amount $ 429,267 $ 421,337 $ 395,946 $ 259,881 Equity component - net carrying value $ 32,746 $ 32,746 $ — $ 51,176 As of December 31, 2021, the estimated fair value of the 2017 Notes and the 2020 Notes which the Company has classified as Level 2 financial instruments are $405,410 ($933,695 as of December 31, 2020) and $554,410 ($520,485 as of December 31, 2020), respectively. The estimated fair value was determined based on the quoted bid price of the Exchangeable Senior Notes in an over-the-counter market on the last trading day of the reporting period. As of December 31, 2021, the difference between the net carrying amount of the 2020 Exchangeable Senior Notes and estimated fair value represents mainly the equity conversion value premium the market assigned to these Notes. Based on the closing price of our common stock on December 31, 2021, the if-converted value of the Exchangeable Senior Notes exceeded the principal amount. Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows : 2020 Notes 2017 Notes Year Ended December 31, Year Ended December 31, 2021 2020 2021 2020 2019 Amortization of debt issuance costs $ 1,485 $ 492 $ 608 $ 820 $ 753 Non-cash amortization of debt discount 6,471 2,165 5,986 7,483 7,153 Interest expense — — 1,891 3,594 3,594 Loss in respect of convertible loan extinguishment $ — $ — $ 13,969 $ — $ — Total interest expense recognized $ 7,956 $ 2,657 $ 22,454 $ 11,897 $ 11,500 Effective interest rate 1.87 % 1.87 % 4.68 % 4.68 % 4.68 % Exchangeable notes hedge transactions In connection with the pricing of the 2017 Notes, the Company has entered into privately negotiated exchangeable note hedge transactions with some of the initial purchasers and/or their respective affiliates (the "Option Counterparties"). Subject to customary anti-dilution adjustments substantially similar to those applicable to the 2017 Notes, the exchangeable note hedge transactions cover the number of ADSs will initially underline the 2017 Notes. The note hedge transactions are expected generally to reduce cash payments the Company is required to make in excess of the principal amount, in each case, upon any exchange of the 2017 Notes. A portion of the call-options can be settled upon a surrender of the same amounts of Notes by a holder. As stated above, the Company irrevocably elected cash settlement to apply to all conversions of 2017 Notes with an exchange date that occurs on or after December 31, 2021. Conversion notices received on and after December 31, 2021 relating to the 2017 Notes will be fully settled in cash, and amounts paid in excess of the principal amount will be offset by an equal receipt of cash under the convertible bond hedge. As a result of the irrevocable cash election, on December 31, 2021, the Company reclassified from equity to derivative asset the remaining bond hedge fair value of $292,940 (Level 2). Concurrently with the Company's entry into the exchangeable note hedge transactions, the Company has entered into warrant transactions with the Option Counterparties relating to the same number of ADSs (3,457,475), with a strike price of $101.82 per ADS, subject to customary anti‑dilution adjustments. The warrants are exercisable for a period of three months as of the 2017 Notes' maturity date. The warrants are classified to equity in accordance with U.S. GAAP. The warrants have a dilutive effect as the market price per ordinary share exceeds the applicable exercise price of the warrants, as measured under the terms of the warrant transactions. |
REPORTABLE SEGMENTS AND GEOGRAP
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION a. Reportable segments: ASC 280, "Segment Reporting"' establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is its Chief Executive Officer. Year ended December 31, 2021 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,572,176 $ 348,974 $ — 1,921,150 Operating income $ 316,760 $ 104,080 $ (156,931) 263,909 Year ended December 31, 2020 Customer Engagement Financial Crime and Compliance (2) Not Total Revenues $ 1,347,511 $ 300,505 $ — $ 1,648,016 Operating income $ 268,010 $ 93,272 $ (119,235) $ 242,047 Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,265,113 $ 308,799 $ — $ 1,573,912 Operating income $ 244,599 $ 124,742 $ (130,624) $ 238,717 (1) Includes the results of companies which were acquired in the years 2021, 2020 and 2019 and are being integrated within the Customer Engagement segment. (2) Includes the results of companies which were acquired in the year 2020, and have been integrated within the Financial Crime and Compliance segment. The following table presents property and equipment as of December 31, 2021 and 2020, based on operational segments: December 31, 2021 2020 Customer Engagement $ 118,557 $ 120,955 Financial Crime and Compliance 25,378 15,433 Non-allocated 1,719 1,397 145,654 $ 137,785 b. Geographical information: Total revenues from external customers on the basis of the Company's geographical areas are as follows: Year Ended December 31, 2021 2020 2019 Americas, principally the US $ 1,566,807 $ 1,353,278 $ 1,234,549 EMEA (*) 236,122 180,177 212,252 Israel 3,839 4,368 3,950 Asia Pacific 114,382 110,193 123,161 1,921,150 $ 1,648,016 $ 1,573,912 The following presents property and equipment as of December 31, 2021 and 2020, based on geographical areas: December 31, 2021 2020 Americas, principally the US $ 73,525 $ 72,083 EMEA (*) 4,203 4,340 Israel 61,796 54,097 Asia Pacific 6,130 7,265 $ 145,654 $ 137,785 (*) Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2021 | |
Income Statement Related Disclosures [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | SELECTED STATEMENTS OF INCOME DATA a. Research and development, net: Year Ended December 31, 2021 2020 2019 Total costs $ 319,083 $ 261,105 $ 232,118 Less - grants and participations (2,118) (2,347) (2,556) Less - capitalization of software development costs (45,778) (40,576) (35,844) $ 271,187 $ 218,182 $ 193,718 b. Financial expenses and other, net: Year Ended December 31, 2021 2020 2019 Financial income: Interest and amortization/accretion of premium/discount on marketable securities, net $ 13,751 $ 17,596 $ 16,678 Interest 200 1,543 3,855 13,951 19,139 20,533 Financial expenses: Interest (10,061) (7,770) (11,683) Loss in respect of debt extinguishment (13,969) — — Debt issuance costs amortization (610) (3,650) (2,083) Exchangeable Senior Notes amortization of discount (5,708) (9,648) (7,153) Exchange rates differences (4,131) (41) (1,832) Other (2,958) (2,731) (2,186) (37,437) (23,840) (24,937) Other (expenses) Income, net 196 (158) (40) $ (23,290) $ (4,859) $ (4,444) c. Net earnings per share: The following table sets forth the computation of basic and diluted net earnings per share: 1. Numerator: Year Ended December 31, 2021 2020 2019 Net income to ordinary shareholders $ 199,223 $ 196,346 $ 185,904 2. Denominator (in thousands): Year Ended December 31, 2021 2020 2019 Denominator for basic net earnings per share: Weighted average number of shares (thousand) 63,189 62,710 62,120 Effect of dilutive securities: Add - employee stock options and RSU 1,605 1,611 1,682 Warrants issued in the exchangeable notes transaction 2,102 1,635 859 Denominator for diluted net earnings per share - adjusted weighted average shares (thousand) 66,896 65,956 64,661 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | RELATED PARTY BALANCES AND TRANSACTIONS In 2021, the Company acquired an additional 20% in the 2020 Subsidiary for a total consideration of approximately $14,000. The amount paid to the 2020 Subsidiary's CEO in connection with this purchase was $4,850. As of December 31, 2021 and 2020, the 2020 Subsidiary's CEO holds 12.04% and 18.97%, respectively, of the 2020 Subsidiary, which reflects $5,186 and $9,343 of the non-controlling amount on the balance sheet as of December 31, 2021 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS During the first quarter of 2022, the Company settled in cash an aggregate principal amount of $18,093 of 2017 Notes in response to formal requests that were received during the fourth quarter of 2021. During January 2022, the Company received formal requests to exchange 2017 Notes in an aggregated principal amount of $2,015. The Company is required to settle all these requests in cash, during the second quarter of 2022. See Note 15 for further information regarding the 2017 Notes. On February 25, 2021, NICE Ltd. received an Order of Final Assessment for the 2014 tax year, in the sum of $16,000, from the Israeli Tax Authorities. A pre-court hearing as to the amount claimed to be owed was conducted on January 25, 2022. The Company has provided an amount it believes is sufficient for what it believes will be the final settlement amount within its provision for income taxes and our tax estimates. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates:The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Financial statements in United States dollars | Financial statements in United States dollars: The currency of the primary economic environment in which the operations of NICE Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. |
Principles of consolidation | Principles of consolidation:The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. |
Cash equivalents | Cash equivalents:Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three months or less at acquisition. |
Marketable securities | Marketable securities: The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt Securities" and ASC No. 326, "Financial Instruments - Credit Losses". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" ("AFS") are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income, net of taxes. Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. For each reporting period, the Company evaluates whether declines in fair value below carrying value are due to expected credit losses, as well as the Company's ability and intention to hold the investment until a forecasted recovery occurs, in accordance with ASC 326. Allowance for credit losses on AFS debt securities are recognized as a charge in financial expenses (income), net, on the consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss). In 2020 and 2019, no other-than-temporary impairment were recorded. As of December 31, 2021, no credit losses have been recorded. The Company classifies all securities with maturities beyond 12 months as current assets under the caption marketable securities on the consolidated balance sheet. These securities are available to support current operations and the company may sell these debt securities prior to their stated maturities. |
Property and equipment, net | Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 4 - 14 Leasehold improvements Over the lease term or the estimated useful life of the improvements, whichever is shorter |
Internal use software costs | Internal use software costs:The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC 350-40, internal-use software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. |
Other intangible assets, net | Other intangible assets, net:Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 4 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 |
Impairment of long-lived assets | Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment" whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends. Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2021, 2020 and 2019, no impairment charges were recognized. |
Goodwill | Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. In 2020 the Company adopted ASU 2017-04. Therefore, if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which the Company adopted as of January 1, 2020. The impairment test compares carrying values of the reporting units to their respective estimated fair values. If the carrying value exceeds the fair value, then the Company recognizes impairment of goodwill for the amount of this excess. For each of the three years in the period ended December 31, 2021, 2020 and 2019, no impairment was identified. |
Exchangeable senior notes | Exchangeable senior notes: The Company applies ASC 815, "Derivative and Hedging" ("ASC"), and ASC 470, "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as paid-in capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. On December 31, 2021, the Company entered into the First Supplemental Indenture to the 2017 Indenture (the "First Supplemental Indenture"). In accordance with the First Supplemental Indenture, the Company |
Revenue recognition | Revenue recognition: The Company generates revenues from sales of cloud, service, and software products, which include software license, SaaS, network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and trainings. The Company sells its cloud, products and services directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). Under the standard, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company performs the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) there is an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services; (ii) the contract has commercial substance; and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intent to pay, which is based on a variety of factors, including the customer's historical payment experience. 2) Identify the performance obligations of the contract The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e., if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. In addition, the Company elected to apply the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company will transfer a promised good or service to a customer and when the customer will pay for that good or service will be one year or less. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. 4) Allocate the transaction price to the performance obligations in the contract The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") out of the total consideration of the contract. The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligations. The Company typically establishes a SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. SSP for products and services can evolve over time due to changes in the Company's pricing practices that are influenced by intense competition, changes in demand for products and services, and economic factors, among others. For a product where the SSP cannot be determined based on observable prices, given the same products are sold for a broad range of amounts (that is, the selling price is highly variable), the SSP included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to these product revenues. 5) Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its cloud revenues from subscription services, which are comprised of subscription fees from granting customers access to the Company’s cloud platforms, network connectivity and services fees for deployment of certain cloud platforms. Revenue from subscription services is recognized either ratably over the contract period or based on usage, revenue from network connectivity is based on customer call usage and is recognized in the period the call is initiated, and services fees for deployment are amortized over average customer life. Revenue from software licenses, support and maintenance services are recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Software license revenues are recognized at the point in time when the software license is delivered and the customer obtains control of the asset. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Professional services revenues, except fees for deployment of certain cloud platforms, are recognized as services are performed. Deferred revenues, which represent a contract liability, represent unrecognized fees collected mostly for maintenance, cloud and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was approximately $215,805 for the year ended December 31, 2021. |
Costs to obtain contracts | Costs to Obtain Contracts:The Company capitalizes certain sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. The Company applies judgment in estimating the amortization period by taking into consideration customer contract terms, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization of sales commission expenses are included in Selling and Marketing expenses in the accompanying consolidated statements of income. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Commission expense for the years 2021, 2020 and 2019 were $130,466, $100,219 and $92,468, respectively. |
Research and development costs | Research and development costs:Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. |
Income taxes | Income taxes: To prepare the consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates, and in certain of these jurisdictions, it is calculated based on the Company's assumptions as to its entitlement to various benefits under the applicable tax laws in the jurisdiction. The entitlement to such benefits depends upon the Company's compliance with the terms a nd conditions set out in these laws. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (on a cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. |
Non-royalty grants | Non-royalty grants:Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. |
Concentrations of credit risk | Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers generated from a multitude of markets in countries around the world. The Company performs ongoing credit evaluations of its customers and insures some of its receivables with a credit insurance company. A general allowance for credit losses is provided, based on the length of time the receivables are past due. The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S. government agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment per minimum credit rating or specific issuer, thereby reducing credit risk concentrations. The Company enter into foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. |
Severance pay | Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expenses for 2021, 2020 and 2019 amounted to $8,810, $9,649 and $7,656, respectively. The Company also has other liabilities for severance pay in other jurisdictions. The Company has multiple 401(k) defined contribution plans covering certain employees in the U.S. All eligible employees may elect to contribute a portion of their eligible compensation, generally not g reater than an annual contribution of $19.5 in 2021 and 2020, and $19 in 2019 (for certain employees over 50 years of age the maximum annual contribution was $26 per year in 2021 and 2020 and $25 in 2019) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company, at its discretion, matches 50% of employee contributions to the plan up to a limit of 6-8% of their eligible |
Leases | Leases The Company elected to combine its lease and non-lease components for car leases and to not recognize a lease liability and a right-of-use ("ROU") asset on the balance sheet for leases with a term of twelve months or less. The Company recognizes the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The ROU asset is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. |
Basic and diluted net earnings per share | Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As further described in Note 15, the Company entered into an exchangeable note hedge transaction and warrants transaction in 2017. While the exchangeable note hedge transaction is anti-dilutive and as such is not included in the computation of diluted earnings per share, the warrants transaction had a dilutive effect, and as such, was included in the computation of the diluted earnings per share. The number of shares related to the outstanding exchangeable note hedge transaction is 3,457,475. Since it is the Company's intention and ability to settle the convertible senior notes issued in 2017 in cash, the potential issuance of shares related to these notes does not have a dilutive effect on the shares. In addition, on December 31, 2021, the Company entered into the First Supplemental Indenture according to which the Company irrevocably elected cash settlement for the principal and any premium due upon conversion to apply to all conversions of the 2017 Notes issued under the 2017 Notes with an exchange date (as defined in the 2017 Indenture) on or after December 31, 2021. As a result, the 2017 Notes do not have a dilutive effect. On December 31, 2021, the Company irrevocably elected to settle the principal of the convertible senior notes issued in 2020 in cash. As a result , the Company will use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion premium will have a dilutive impact on diluted net income per share only when the average market price of an ordinary share for a given period exceeds the conversion price of $299.19 per share. As a result, 1,537,504 shares underlying the conversion option of the convertible senior notes issued in 2020 are not considered in the calculation of diluted net income per share in either 2020 or 2021, as the effect would be anti-dilutive. The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was $4,754; $2,295 and $4,921 for the years 2021, 2020 and 2019, respectively. |
Accounting for stock-based compensation | A ccounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of stock base compensation expenses based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company accounts for forfeitures as they occur. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. |
Fair value of financial instruments | Fair value of financial instr uments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") for valuing financial instruments. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities, exchangeable senior notes and foreign currency derivative contracts are classified within Level 2 (see Notes 3, 10 and 15). The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables and trade payables approximate their fair value due to the immediate or short-term maturities of these financial instruments. |
Legal contingencies | Legal contingencies:The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. |
Advertising expenses | Advertising expenses:Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2021, 2020 and 2019 were $31,575; $14,134 and $16,040, respectively. |
Treasury shares | Treasury shares:The Company repurchases its ordinary shares from time to time on the open market or in other transactions and holds such shares as treasury shares. The Company accounts for the cost to repurchase treasury shares as a reduction of shareholders' equity. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares is accounted for in accordance with ASC 505-30 in which gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. |
Business combination | Business combination: The Company applies the provisions of ASC 805, "Business Combination", and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, acquired technology and acquired trademarks from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. |
Non-controlling interests | Non-controlling interests The consolidated financial statements include the Company's accounts and the accounts of the Company's wholly- and majority-owned subsidiaries. Non-controlling interest positions of the Company's consolidated entities are reported as a separate component of consolidated equity from the equity attributable to the Company’s shareholders. In case of an increase in ownership of a subsidiary, the carrying amount of the non-controlling interest is adjusted to reflect the controlling interest’s increased ownership interest in the subsidiary’s net assets. Any difference between the consideration paid by the Company to a non-controlling interest holder (or contributed by the Company to the net assets of the subsidiary) and the adjustment to the carrying amount of the non-controlling interest in the subsidiary is recognized directly in equity and attributable to the controlling interest. In 2021, the Company acquired an additional 20% in the 2020 Subsidiary for a total consideration of approximately $14,000. |
Comprehensive income | Comprehensive income:The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. Other comprehensive income for the Company relates to gains and losses on hedging derivative instruments, unrealized gains and losses on available for sale marketable securities and changes in foreign currency translation adjustments. |
Recently adopted accounting standards and recently issued accounting standards, not yet adopted | Recently adopted accounting standards : In October 2021, the FASB issued ASU No. 2021-08, Business Combination (Topic 805): Accounting for Contract Assets and Liabilities from Contracts with Customers, which requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with revenue from ASC 606 rather than adjust them to fair value at the acquisition date. The Company adopted ASU 2021-08 in the fourth quarter of 2021, retroactively applying it to all business combinations since January 1, 2021. The adoption did not have a material effect on the Company consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation , the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. The Company's adoption of ASU 2019-12 did not have a significant impact on the Company's consolidated financial statements. ad. Recently issued accounting standards, not yet adopte d: In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt. Instead, they will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. ASU 2020-06 also requires that the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or share. This amendment removes current guidance that allows an entity to rebut this presumption if it has a history or policy of cash settlement. Furthermore, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share; the treasury stock method will be no longer available. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Upon adoption of ASU No. 2020-06, the Company will no longer record as equity the conversion feature of its 2020 Notes. Instead, the Company will combine the previously separated equity component with the liability component, which together will be classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity will be reclassified to debt and amortized as interest expense. Accordingly, the Company expects to record as of January 1, 2022 an increase to retained earnings of approximately $8,750 , a decrease to additional paid-in capital of $28,816 , an increase to long-term debt of $24,757, a decrease to deferred tax liabilities of $3,930, and an increase in debt issuance costs of $761. Further, if the Company’s share price will exceed the conversion price of $299.19 of the 2020 Notes, then there will be an impact to earnings per share for the dilution impact above the conversion price as a result of the adoption based on the if-converted method. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Depreciation Rates | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 4 - 14 Leasehold improvements Over the lease term or the estimated useful life of the improvements, whichever is shorter |
Schedule of Other Intangible Assets Depreciation Rates | Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 4 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 |
Schedule of Accumulated Other Comprehensive Income, Net | The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2021, 2020 and 2019: Year ended December 31, 2021 Unrealized gains (losses) on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ 13,285 $ 4,836 $ (34,783) $ (16,662) Other comprehensive income before reclassifications (13,368) 5,024 (7,402) (15,746) Amounts reclassified from accumulated other comprehensive loss (1,403) (5,928) — (7,331) Net current-period other comprehensive income (14,771) (904) (7,402) (23,077) Ending balance $ (1,486) $ 3,932 $ (42,185) $ (39,739) Year ended December 31, 2020 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ 4,131 $ 2,351 $ (39,781) $ (33,299) Other comprehensive loss before reclassifications 11,249 4,954 4,998 21,201 Amounts reclassified from accumulated other comprehensive income (loss) (2,095) (2,469) — (4,564) Net current-period other comprehensive loss 9,154 2,485 4,998 16,637 Ending balance $ 13,285 $ 4,836 $ (34,783) $ (16,662) Year ended December 31, 2019 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,662) $ (2,715) $ (42,239) $ (46,616) Other comprehensive loss before reclassifications 6,260 5,495 2,458 14,213 Amounts reclassified from accumulated other comprehensive income (loss) (467) (429) — (896) Net current-period other comprehensive loss 5,793 5,066 2,458 13,317 Ending balance $ 4,131 $ 2,351 $ (39,781) $ (33,299) |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities | The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2021 and 2020: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Corporate debentures $ 1,012,615 $ 973,029 $ 3,883 $ 15,016 $ (5,560) $ (343) $ 1,010,939 $ 987,702 U.S. Treasuries 14,658 17,613 156 418 — — 14,815 18,031 U.S. Government Agencies 16,005 6,546 — 3 (169) — 15,835 6,549 $ 1,043,278 $ 997,188 $ 4,039 $ 15,437 $ (5,729) $ (343) $ 1,041,589 $ 1,012,282 |
Scheduled Maturities of Available-for-Sale Marketable Securities | The scheduled maturities of available-for-sale marketable securities as of December 31, 2021 are as follows: Amortized Estimated Due within one year $ 280,261 $ 281,365 Due after one year through five years 763,017 760,224 $ 1,043,278 $ 1,041,589 |
Schedule of Unrealized Losses and Fair Values | Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2021 and 2020 are as indicated in the following tables: December 31, 2021 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 494,731 $ (4,413) $ 156,840 $ (1,147) $ 651,571 $ (5,560) U.S. Treasuries — — — — — — U.S. Government Agencies 15,835 (169) — — 15,835 (169) $ 510,566 $ (4,582) $ 156,840 $ (1,147) $ 667,406 $ (5,729) December 31, 2020 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 194,587 $ (337) $ 8,590 $ (6) $ 203,177 $ (343) U.S. Treasuries 2,936 — — — 2,936 — U.S. Government Agencies — — — — — — $ 197,523 $ (337) $ 8,590 $ (6) $ 206,113 $ (343) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2021 2020 Government authorities $ 93,505 $ 81,012 Interest receivable 4,992 5,829 Prepaid expenses 76,709 81,459 Other 9,398 7,040 $ 184,604 $ 175,340 |
PREPAID EXPENSES AND OTHER LO_2
PREPAID EXPENSES AND OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Long-Term Assets | December 31, 2021 2020 Deferred commission costs $ 138,343 $ 94,087 Severance pay fund 13,180 13,511 Prepaid expenses 66,882 39,875 Other 6,039 6,187 $ 224,445 $ 153,660 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | December 31, 2021 2020 Cost: Computers and peripheral equipment $ 207,843 $ 192,898 Internal use software 191,697 145,914 Office furniture and equipment 6,585 10,417 Leasehold improvements 56,835 56,976 462,960 406,205 Accumulated depreciation: Computers and peripheral equipment 162,487 147,618 Internal use software 109,501 75,743 Office furniture and equipment 3,529 6,733 Leasehold improvements 41,789 38,326 317,306 268,420 Depreciated cost $ 145,654 $ 137,785 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Definite-Lived Other Intangible Assets | Definite-lived other intangible assets: December 31, 2021 2020 Original amounts: Core technology $ 665,555 $ 635,250 Customer relationships, backlog and distribution network 288,755 269,717 Trademarks 44,440 44,440 998,750 949,407 Accumulated amortization: Core technology 428,880 353,558 Customer relationships, backlog and distribution network 246,609 207,165 Trademarks 27,883 22,681 703,372 583,404 Other intangible assets, net $ 295,378 $ 366,003 |
Schedule of Estimated Amortization Expense | Estimated amortization expense: For the year ended December 31, 2022 $ 106,566 2023 85,026 2024 65,680 2025 19,302 2026 15,189 Thereafter 3,615 $ 295,378 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Following the Company's acquisitions in 2021 and 2020, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2021 and 2020 are as follows: Year ended December 31, 2021 Customer Engagement Financial Crime and Compliance Total As of January 1, 2021 $ 1,153,023 $ 350,229 $ 1,503,252 Acquisitions (*) 108,183 (427) 107,756 Functional currency translation adjustments (4,057) (195) (4,252) As of December 31, 2021 $ 1,257,149 $ 349,607 $ 1,606,756 (*) Including adjustment of $427 resulting from finalization of purchase price allocations with respect to 2020. Year ended December 31, 2020 Customer Engagement Financial Crime and Compliance Total As of January 1, 2020 $ 1,114,680 $ 263,738 $ 1,378,418 Acquisitions 35,034 85,723 120,757 Functional currency translation adjustments 3,309 768 4,077 As of December 31, 2020 $ 1,153,023 $ 350,229 $ 1,503,252 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | December 31, 2021 2020 Payroll and related expenses $ 232,578 $ 190,274 Accrued expenses 112,856 95,951 Government authorities 140,443 127,129 Other 1,670 3,820 $ 487,547 $ 417,174 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Notional and Fair Value Amounts of Outstanding Derivative Instruments | Notional amount Fair value December 31, December 31, 2021 2020 2021 2020 Option contracts to hedge payroll expenses INR — 15,733 — 795 Option contracts to hedge lease obligations expenses INR — 901 — 46 Forward contracts to hedge payroll expenses NIS 125,884 67,652 4,164 4,807 expenses INR 42,562 7,866 798 168 expenses PHP 705 1,623 (5) 3 Forward contracts to hedge lease obligations expenses INR 1,451 451 30 10 $ 170,602 $ 94,226 $ 4,987 $ 5,829 |
Schedule of Fair Value of Derivative Instruments by Balance Sheet Location | The fair value of the Company's outstanding derivative instruments at December 31, 2021 and 2020 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2021 2020 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ — $ 841 Foreign exchange forward contracts Prepaid expenses and other current assets 4,992 4,988 Derivative liabilities: Foreign exchange forward contracts Accrued expenses and other liabilities $ (5) $ — |
Schedule of Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income | The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2021, 2020 and 2019 is summarized below: Amount of gain (loss) recognized in Year Ended December 31, 2021 2020 2019 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ 4,993 $ 5,901 $ 2,108 Option contracts 31 (947) 3,387 $ 5,024 $ 4,954 $ 5,495 Derivatives in foreign exchange cash flow hedging relationships for the years ended December 31, 2021, 2020 and 2019 is summarized below: Amount of gain (loss) reclassified from other comprehensive income Year Ended December 31, Statements of income line item 2021 2020 2019 Option contracts to hedge payroll and facility expenses Cost of revenues and operating expenses $ (771) $ (490) $ 320 Forward contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and financial expenses (5,157) (1,979) (749) $ (5,928) $ (2,469) $ (429) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year ended December 31, 2021 Cash payments related to operating lease $ 25,612 New right-of-use assets obtained in exchange for operating lease obligations $ 561 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases 2022 $ 22,766 2023 14,695 2024 11,546 2025 9,910 2026 9,533 Thereafter 63,016 Total lease payments 131,466 Less imputed interest (30,767) Total $ 100,699 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Year ended December 31, 2021 Current maturities of operating leases 19,514 Long-term operating leases 81,185 Total operating lease liabilities $ 100,699 Weighted-average remaining operating lease term 10.94 Weighted-average discount rate of operating leases 5.45 % |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities are as follows : December 31, 2021 2020 Deferred tax assets: Net operating losses carryforward and tax credits $ 50,551 $ 42,154 Intra-entity transfer of certain intangible assets ( *) 18,986 20,734 Operating leases liabilities 22,454 24,286 Share based payments 28,721 20,330 Research and development costs 21,643 9,210 Reserves, allowances and other 47,405 46,943 Deferred tax assets before valuation allowance 189,760 163,657 Valuation allowance (10,464) (10,227) Deferred tax assets 179,296 153,430 Deferred tax liabilities: Acquired intangibles (59,678) (81,320) Operating lease right-of-use assets (19,001) (20,419) Acquired deferred revenue (1,907) (1,785) Internal use software and other fixed assets (16,835) (19,168) Prepaid compensation expenses (30,788) (23,965) Debt (2,937) (3,679) Other (333) (2,468) Deferred tax liabilities (131,479) (152,804) Deferred tax assets, net $ 47,817 $ 626 (*) During the years ended December 31, 2021, 2020 and 2019, the Company completed intra-entity transfers of certain intangible assets to a different tax jurisdiction. As a result of the transfers, the Company utilized net operating losses carried forward, incurred a tax expense on capital gain, released valuation allowances and recorded a deferred tax asset. December 31, 2021 2020 Deferred tax assets $ 55,246 $ 32,735 Deferred tax liabilities (7,429) (32,109) Deferred tax assets, net $ 47,817 $ 626 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year Ended December 31, 2021 2020 2019 Income before taxes on income, as reported in the consolidated statements of income $ 240,619 $ 237,188 $ 234,273 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (2.2) % (3.8) % (7.7) % Changes in valuation allowance 1.0 % 0.5 0.7 % Earnings taxed under foreign law 0.2 % (0.5) % 17.9 % Tax settlements and other adjustments (1.8) % (0.6) % 5.8 % Intangible assets transfer (1.7) % 0.1 % (14.2) % Other (1.3) % (1.5) % (4.9) % Effective tax rate 17.2 % 17.2 % 20.6 % |
Schedule of Effect on Benefit Resulting from "Preferred Enterprise" Status on Net Earnings Per Ordinary Share | Year Ended December 31, 2021 2020 2019 Basic $ 0.08 $ 0.15 $ 0.29 Diluted $ 0.08 $ 0.14 $ 0.28 |
Schedule of Income Before Income Taxes on Income | Income before taxes on income is comprised as follows: Year Ended December 31, 2021 2020 2019 Domestic $ 53,703 $ 87,008 $ 169,236 Foreign 186,916 150,180 65,037 $ 240,619 $ 237,188 $ 234,273 |
Schedule of Taxes on Income (Tax Benefit) | Taxes on income (tax benefit) are comprised as follows: Year Ended December 31, 2021 2020 2019 Current $ 80,903 $ 74,096 $ 60,586 Deferred (39,507) (33,254) (12,217) 41,396 40,842 48,369 Domestic 16,171 15,995 8,614 Foreign 25,225 24,847 39,755 $ 41,396 $ 40,842 $ 48,369 Of which: Year Ended December 31, 2021 2020 2019 Domestic taxes: Current $ 27,400 $ 22,323 $ 29,075 Deferred (11,229) (6,328) (20,461) 16,171 15,995 8,614 Foreign taxes: Current 53,503 51,773 31,196 Deferred (28,278) (26,926) 8,559 25,225 24,847 39,755 Taxes on income $ 41,396 $ 40,842 $ 48,369 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of uncertain tax position is as follows: December 31, 2021 2020 Uncertain tax positions, beginning of year $ 73,256 $ 64,884 Increases in tax positions for prior years 3,190 6,456 Increases in tax positions for current year 9,248 6,935 Settlements — (378) Expiry of the statute of limitations (8,647) (4,641) Uncertain tax positions, end of year $ 77,047 $ 73,256 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Assumptions Used to Determine Fair Value of Options Granted | The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2021, 2020 and 2019 was estimated using the following assumptions: 2021 2020 2019 Expected volatility 26.21%-27.87% 0.00%-25.79% 19.44%-21.54% Risk free interest rate 0.30%-0.93% 0.00%-0.86% 1.43%-2.55% Expected dividend $ — — — Expected term (in years) 3.5 3.5 3.5 |
Schedule of Stock Option Activity | A summary of the Company's stock options activity and related information for the year ended December 31, 2021, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term Aggregate intrinsic Outstanding at January 1, 2021 988,374 22.49 4.26 258,014 Granted 437,610 12.80 Exercised 232,376 18.41 Cancelled 326 39.52 Forfeited 84,630 0.46 Outstanding at December 31, 2021 1,108,652 21.20 4.42 313,083 Exercisable at December 31, 2021 375,521 54.57 3.14 93,516 |
Schedule of Options Outstanding by Exercise Price Range | The options outstanding under the Company's stock option plans as of December 31, 2021 have been separated into ranges of exercise price as follows: Ranges of Options outstanding as of December 31, 2021 Weighted Weighted Options Exercisable as of December 31, 2021 Weighted (Years) $ $ $ 0.27 - 0.31 951,076.0 4.57 0.29 230,960.0 0.3 $ 6.72 - 8.57 1,820.0 2.13 7.03 1,820.0 7.0 $ 20.44- 24.99 3,019.0 5.97 21.84 2,744.0 21.5 $ 37.21 - 54.51 4,584.0 4.43 45.66 3,632.0 43.4 $ 57.10 - 85.14 30,968.0 1.51 79.53 30,968.0 79.5 $ 96.74 24,891.0 2.37 96.74 24,891.0 96.7 $ 151.63 - 224.18 68,718.0 4.14 183.22 68,718.0 183.2 $ 232.2 23,576.00 5.32 232.20 11,788.00 232.20 1,108,652 4.42 21.20 375,521 54.57 |
Schedule of Restricted Stock Units Activity | A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2021, is as follows: Number of RSU and RSA ( *) Outstanding at January 1, 2021 1,463,687 Granted 750,155 Vested (485,124) Forfeited (119,709) Outstanding at December 31, 2021 1,609,009 (*) NIS 1.0 par value, which represents approximately $0.32. |
Schedule of Allocated Share-Based Compensation Expense | The total equity-based compensation expense related to all of the Company's equity-based awards recognized for the years ended December 31, 2021, 2020 and 2019 was comprised as follows: Year ended 2021 2020 2019 Cost of revenues $ 17,880 $ 11,313 $ 11,244 Research and development, net 28,558 13,668 9,239 Selling and marketing 42,021 30,262 26,650 General and administrative 67,914 48,221 34,897 Total stock-based compensation expenses $ 156,373 $ 103,464 $ 82,030 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Liability Interest Expense | Interest expense related to the liability for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Amortization of debt issuance costs $ 1,687 $ 1,004 Interest expense 3,848 7,676 Total interest expense recognized $ 5,535 $ 8,680 Effective interest rate 2.11 % 4.01 % Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows : 2020 Notes 2017 Notes Year Ended December 31, Year Ended December 31, 2021 2020 2021 2020 2019 Amortization of debt issuance costs $ 1,485 $ 492 $ 608 $ 820 $ 753 Non-cash amortization of debt discount 6,471 2,165 5,986 7,483 7,153 Interest expense — — 1,891 3,594 3,594 Loss in respect of convertible loan extinguishment $ — $ — $ 13,969 $ — $ — Total interest expense recognized $ 7,956 $ 2,657 $ 22,454 $ 11,897 $ 11,500 Effective interest rate 1.87 % 1.87 % 4.68 % 4.68 % 4.68 % |
Schedule of Outstanding Exchangeable Note | The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2025 Due 2024 Issuance date August 27, 2020 January 18, 2017 Maturity date September 15, 2025 January 15, 2024 Effective conversion date June 15, 2025 September 15, 2023 Principal amount $460,000 $110,187 Cash coupon rate (per annum) —% 1.25% Conversion rate effective (per $1000 principal amount) $3.34 $12.05 Effective conversion price (per ADS) $299.19 $82.96 |
Schedule of Carrying Values | The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: 2020 Notes 2017 Notes December 31, December 31, 2021 2020 2021 2020 Principal $ 460,000 $ 460,000 $ 110,187 $ 287,495 Conversion option (Level 2) — 292,940 Less: Debt issuance costs, net of amortization (5,975) (7,460) (780) (2,914) Unamortized discount (24,758) (31,203) (6,401) (24,700) Net liability carrying amount $ 429,267 $ 421,337 $ 395,946 $ 259,881 Equity component - net carrying value $ 32,746 $ 32,746 $ — $ 51,176 |
REPORTABLE SEGMENTS AND GEOGR_2
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Financial Information of The Company's Reportable Segments | Year ended December 31, 2021 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,572,176 $ 348,974 $ — 1,921,150 Operating income $ 316,760 $ 104,080 $ (156,931) 263,909 Year ended December 31, 2020 Customer Engagement Financial Crime and Compliance (2) Not Total Revenues $ 1,347,511 $ 300,505 $ — $ 1,648,016 Operating income $ 268,010 $ 93,272 $ (119,235) $ 242,047 Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,265,113 $ 308,799 $ — $ 1,573,912 Operating income $ 244,599 $ 124,742 $ (130,624) $ 238,717 (1) Includes the results of companies which were acquired in the years 2021, 2020 and 2019 and are being integrated within the Customer Engagement segment. (2) Includes the results of companies which were acquired in the year 2020, and have been integrated within the Financial Crime and Compliance segment. |
Schedule of Long-Lived Assets by Operational Segments | The following table presents property and equipment as of December 31, 2021 and 2020, based on operational segments: December 31, 2021 2020 Customer Engagement $ 118,557 $ 120,955 Financial Crime and Compliance 25,378 15,433 Non-allocated 1,719 1,397 145,654 $ 137,785 |
Schedule of Total Revenues from External Customers by Geographical Areas | Total revenues from external customers on the basis of the Company's geographical areas are as follows: Year Ended December 31, 2021 2020 2019 Americas, principally the US $ 1,566,807 $ 1,353,278 $ 1,234,549 EMEA (*) 236,122 180,177 212,252 Israel 3,839 4,368 3,950 Asia Pacific 114,382 110,193 123,161 1,921,150 $ 1,648,016 $ 1,573,912 |
Schedule of Long-Lived Assets by Geographical Areas | The following presents property and equipment as of December 31, 2021 and 2020, based on geographical areas: December 31, 2021 2020 Americas, principally the US $ 73,525 $ 72,083 EMEA (*) 4,203 4,340 Israel 61,796 54,097 Asia Pacific 6,130 7,265 $ 145,654 $ 137,785 |
SELECTED STATEMENTS OF INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Statement Related Disclosures [Abstract] | |
Schedule of Research and Development Costs, Net | Research and development, net: Year Ended December 31, 2021 2020 2019 Total costs $ 319,083 $ 261,105 $ 232,118 Less - grants and participations (2,118) (2,347) (2,556) Less - capitalization of software development costs (45,778) (40,576) (35,844) $ 271,187 $ 218,182 $ 193,718 |
Schedule of Financial Income (Expenses) and Other, Net | Financial expenses and other, net: Year Ended December 31, 2021 2020 2019 Financial income: Interest and amortization/accretion of premium/discount on marketable securities, net $ 13,751 $ 17,596 $ 16,678 Interest 200 1,543 3,855 13,951 19,139 20,533 Financial expenses: Interest (10,061) (7,770) (11,683) Loss in respect of debt extinguishment (13,969) — — Debt issuance costs amortization (610) (3,650) (2,083) Exchangeable Senior Notes amortization of discount (5,708) (9,648) (7,153) Exchange rates differences (4,131) (41) (1,832) Other (2,958) (2,731) (2,186) (37,437) (23,840) (24,937) Other (expenses) Income, net 196 (158) (40) $ (23,290) $ (4,859) $ (4,444) |
Schedule of Computation of Net Earnings Per Share | The following table sets forth the computation of basic and diluted net earnings per share: 1. Numerator: Year Ended December 31, 2021 2020 2019 Net income to ordinary shareholders $ 199,223 $ 196,346 $ 185,904 2. Denominator (in thousands): Year Ended December 31, 2021 2020 2019 Denominator for basic net earnings per share: Weighted average number of shares (thousand) 63,189 62,710 62,120 Effect of dilutive securities: Add - employee stock options and RSU 1,605 1,611 1,682 Warrants issued in the exchangeable notes transaction 2,102 1,635 859 Denominator for diluted net earnings per share - adjusted weighted average shares (thousand) 66,896 65,956 64,661 |
GENERAL - Narrative (Details)
GENERAL - Narrative (Details) $ in Thousands | Jun. 17, 2021USD ($) | Aug. 18, 2020USD ($) | Dec. 31, 2021USD ($)market | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Number of main markets | market | 2 | ||||
Goodwill | $ 1,606,756 | $ 1,503,252 | $ 1,378,418 | ||
Acquisition costs | 1,761 | 1,720 | 720 | ||
ContactEngine | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred in acquisition | $ 94,897 | ||||
Goodwill | 69,593 | ||||
ContactEngine | Core Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 20,558 | ||||
Estimated useful life | 5 years | ||||
ContactEngine | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 3,279 | ||||
Estimated useful life | 6 years | ||||
ContactEngine | Customer backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 5,493 | ||||
Estimated useful life | 2 years | ||||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred in acquisition | 59,317 | 50,686 | |||
Intangible assets acquired in a business combination | 20,036 | 22,968 | |||
Goodwill | $ 38,590 | $ 54,869 | 14,480 | ||
Percent of share capital acquired | 70.10% | 50.10% | |||
Fair value of non-controlling interests | $ 24,985 | ||||
Business combination and asset acquisition consideration transferred | 26,671 | ||||
Intangible assets identified | $ 15,683 | ||||
Guardian Analytics, Inc. | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred in acquisition | $ 113,921 | ||||
Goodwill | 65,888 | ||||
Guardian Analytics, Inc. | Core Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 38,341 | ||||
Estimated useful life | 6 years | ||||
Guardian Analytics, Inc. | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 6,659 | ||||
Estimated useful life | 8 years | ||||
Guardian Analytics, Inc. | Customer backlog | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired in a business combination | $ 1,028 | ||||
Estimated useful life | 2 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2022 | Aug. 30, 2020 | Jan. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash equivalents maturities, months | 3 months | |||||
Impairment charge | $ 0 | $ 0 | $ 0 | |||
Commission expense | 130,466,000 | 100,219,000 | 92,468,000 | |||
Severance pay expense | 8,810,000 | 9,649,000 | 7,656,000 | |||
Employee contribution amount, max per year | 19,500 | 19,500 | 19 | |||
Employees over 50 years of age maximum annual contribution per year | $ 26,000 | 26,000 | 25 | |||
Employer matching contribution percentage | 50.00% | |||||
Contribution expense | $ 9,366,000 | 8,893,000 | 8,068,000 | |||
Advertising expenses | 31,575,000 | 14,134,000 | 16,040,000 | |||
Increase to retained earnings | 1,653,963,000 | 1,454,388,000 | ||||
Decrease to additional paid-in capital | (1,817,710,000) | (1,681,587,000) | ||||
Deferred tax liabilities | $ (7,429,000) | (32,109,000) | ||||
Subsequent Event | Forecast | Accounting Standards Update 2020-06 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase to retained earnings | $ 8,750,000 | |||||
Decrease to additional paid-in capital | 28,816,000 | |||||
Increase to long-term debt | 24,757,000 | |||||
Deferred tax liabilities | 3,930,000 | |||||
Increase in debt issuance costs | $ 761,000 | |||||
2020 Subsidiary | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Percentage of non-controlling interest in subsidiary | 20.00% | |||||
Consideration transferred for acquiring additional ownership | $ 14,000,000 | |||||
2017 Exchangeable Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Effective conversion price effective (per ADS) (in usd per share) | $ 82.96 | |||||
Increase to long-term debt | 395,946,000 | 259,881,000 | ||||
Increase in debt issuance costs | $ 5,791,000 | |||||
2020 Exchangeable Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Effective conversion price effective (per ADS) (in usd per share) | $ 299.19 | $ 299.19 | ||||
Increase to long-term debt | $ 429,267,000 | 421,337,000 | ||||
Increase in debt issuance costs | $ 7,952,000 | |||||
Exchangeable Note Hedge | 2017 Exchangeable Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Anti-dilutive securities excluded in computation of diluted earnings per share (in shares) | 3,457,475 | |||||
Exchangeable Note Hedge | 2020 Exchangeable Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Anti-dilutive securities excluded in computation of diluted earnings per share (in shares) | 1,537,504 | |||||
Employee Stock Option | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | $ 4,754 | $ 2,295 | $ 4,921 | |||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Employer matching contribution percentage | 6.00% | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Employer matching contribution percentage | 8.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property and Equipment Depreciation Rates (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computers and peripheral equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Computers and peripheral equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Internal use software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 4 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 14 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Intangible Assets Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Core technology | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Core technology | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Customer relationships | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Customer relationships | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Trademarks | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Trademarks | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 12 years |
Customer backlog | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Customer backlog | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Performance Obligations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Deferred revenue recognized | $ 215,805 |
Revenue remaining performance obligation | $ 1,773,182 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation expected timing of satisfaction period | 24 months |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 2,588,484 | $ 2,257,266 | $ 2,016,613 |
Other comprehensive income before reclassifications | (15,746) | 21,201 | 14,213 |
Amounts reclassified from accumulated other comprehensive income (loss) | (7,331) | (4,564) | (896) |
Total other comprehensive income (loss) | (23,077) | 16,637 | 13,317 |
Ending balance | 2,837,959 | 2,588,484 | 2,257,266 |
Total | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (16,662) | (33,299) | (46,616) |
Ending balance | (39,739) | (16,662) | (33,299) |
Unrealized gains (losses) on marketable securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 13,285 | 4,131 | (1,662) |
Other comprehensive income before reclassifications | (13,368) | 11,249 | 6,260 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,403) | (2,095) | (467) |
Total other comprehensive income (loss) | (14,771) | 9,154 | 5,793 |
Ending balance | (1,486) | 13,285 | 4,131 |
Unrealized gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 4,836 | 2,351 | (2,715) |
Other comprehensive income before reclassifications | 5,024 | 4,954 | 5,495 |
Amounts reclassified from accumulated other comprehensive income (loss) | (5,928) | (2,469) | (429) |
Total other comprehensive income (loss) | (904) | 2,485 | 5,066 |
Ending balance | 3,932 | 4,836 | 2,351 |
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (34,783) | (39,781) | (42,239) |
Other comprehensive income before reclassifications | (7,402) | 4,998 | 2,458 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss) | (7,402) | 4,998 | 2,458 |
Ending balance | $ (42,185) | $ (34,783) | $ (39,781) |
SHORT-TERM INVESTMENTS - Narrat
SHORT-TERM INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities | $ 1,041,589 | $ 1,012,282 |
Short-term bank deposits | $ 4,506 | $ 9,332 |
SHORT-TERM INVESTMENTS - Summar
SHORT-TERM INVESTMENTS - Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 1,043,278 | $ 997,188 |
Gross unrealized gains | 4,039 | 15,437 |
Gross unrealized losses | (5,729) | (343) |
Estimated fair value (Level 2 within the fair value hierarchy) | 1,041,589 | 1,012,282 |
Fair Value, Inputs, Level 2 | Corporate debentures | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,012,615 | 973,029 |
Gross unrealized gains | 3,883 | 15,016 |
Gross unrealized losses | (5,560) | (343) |
Estimated fair value (Level 2 within the fair value hierarchy) | 1,010,939 | 987,702 |
Fair Value, Inputs, Level 2 | U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 14,658 | 17,613 |
Gross unrealized gains | 156 | 418 |
Gross unrealized losses | 0 | 0 |
Estimated fair value (Level 2 within the fair value hierarchy) | 14,815 | 18,031 |
Fair Value, Inputs, Level 2 | U.S. Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 16,005 | 6,546 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | (169) | 0 |
Estimated fair value (Level 2 within the fair value hierarchy) | $ 15,835 | $ 6,549 |
SHORT-TERM INVESTMENTS - Schedu
SHORT-TERM INVESTMENTS - Scheduled Maturities of Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due within one year | $ 280,261 | |
Amortized cost, due after one year through five years | 763,017 | |
Amortized cost | 1,043,278 | $ 997,188 |
Estimated fair value, due within one year | 281,365 | |
Estimated fair value, due after one year through five years | 760,224 | |
Available-for-sale total | $ 1,041,589 | $ 1,012,282 |
SHORT-TERM INVESTMENTS - Summ_2
SHORT-TERM INVESTMENTS - Summary of Continuous Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | $ 510,566 | $ 197,523 |
Unrealized losses, less than 12 months | (4,582) | (337) |
Fair value,12 months or greater | 156,840 | 8,590 |
Unrealized losses, 12 months or greater | (1,147) | (6) |
Fair value, total | 667,406 | 206,113 |
Unrealized losses, total | (5,729) | (343) |
Corporate debentures | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 494,731 | 194,587 |
Unrealized losses, less than 12 months | (4,413) | (337) |
Fair value,12 months or greater | 156,840 | 8,590 |
Unrealized losses, 12 months or greater | (1,147) | (6) |
Fair value, total | 651,571 | 203,177 |
Unrealized losses, total | (5,560) | (343) |
U.S. Treasuries | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 0 | 2,936 |
Unrealized losses, less than 12 months | 0 | 0 |
Fair value,12 months or greater | 0 | 0 |
Unrealized losses, 12 months or greater | 0 | 0 |
Fair value, total | 0 | 2,936 |
Unrealized losses, total | 0 | 0 |
U.S. Government Agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 15,835 | 0 |
Unrealized losses, less than 12 months | (169) | 0 |
Fair value,12 months or greater | 0 | 0 |
Unrealized losses, 12 months or greater | 0 | 0 |
Fair value, total | 15,835 | 0 |
Unrealized losses, total | $ (169) | $ 0 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets [Abstract] | ||
Government authorities | $ 93,505 | $ 81,012 |
Interest receivable | 4,992 | 5,829 |
Prepaid expenses | 76,709 | 81,459 |
Other | 9,398 | 7,040 |
Prepaid expenses and other current assets | $ 184,604 | $ 175,340 |
PREPAID EXPENSES AND OTHER LO_3
PREPAID EXPENSES AND OTHER LONG-TERM ASSETS - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deferred commission costs | $ 138,343 | $ 94,087 |
Severance pay fund | 13,180 | 13,511 |
Prepaid expenses | 66,882 | 39,875 |
Other | 6,039 | 6,187 |
Prepaid Expense and Other Assets, Noncurrent | $ 224,445 | $ 153,660 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 462,960 | $ 406,205 |
Accumulated depreciation | 317,306 | 268,420 |
Depreciated cost | 145,654 | 137,785 |
Computers and peripheral equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 207,843 | 192,898 |
Accumulated depreciation | 162,487 | 147,618 |
Internal use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 191,697 | 145,914 |
Accumulated depreciation | 109,501 | 75,743 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 6,585 | 10,417 |
Accumulated depreciation | 3,529 | 6,733 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 56,835 | 56,976 |
Accumulated depreciation | $ 41,789 | $ 38,326 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 65,411 | $ 67,892 | $ 60,174 |
Equipment and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Reduction in costs | 12,322 | 22,355 | |
Reduction in accumulated depreciation | $ 12,322 | $ 22,355 |
OTHER INTANGIBLE ASSETS, NET -
OTHER INTANGIBLE ASSETS, NET - Schedule of Definite-Lived Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | $ 998,750 | $ 949,407 |
Accumulated amortization | 703,372 | 583,404 |
Other intangible assets, net | 295,378 | 366,003 |
Core technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 665,555 | 635,250 |
Accumulated amortization | 428,880 | 353,558 |
Customer relationships, backlog and distribution network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 288,755 | 269,717 |
Accumulated amortization | 246,609 | 207,165 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 44,440 | 44,440 |
Accumulated amortization | $ 27,883 | $ 22,681 |
OTHER INTANGIBLE ASSETS, NET _2
OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 118,681 | $ 114,134 | $ 113,056 |
OTHER INTANGIBLE ASSETS, NET _3
OTHER INTANGIBLE ASSETS, NET - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2022 | $ 106,566 |
2023 | 85,026 |
2024 | 65,680 |
2025 | 19,302 |
2026 | 15,189 |
Thereafter | 3,615 |
Estimated amortization expense | $ 295,378 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | $ 1,503,252 | $ 1,378,418 |
Acquisitions | 107,756 | 120,757 |
Functional currency translation adjustments | (4,252) | 4,077 |
Ending balance, as of December 31 | 1,606,756 | 1,503,252 |
inContact | ||
Goodwill [Line Items] | ||
Adjusted goodwill | 427 | |
Customer Engagement | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 1,153,023 | 1,114,680 |
Acquisitions | 108,183 | 35,034 |
Functional currency translation adjustments | (4,057) | 3,309 |
Ending balance, as of December 31 | 1,257,149 | 1,153,023 |
Financial Crime and Compliance | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 350,229 | 263,738 |
Acquisitions | (427) | 85,723 |
Functional currency translation adjustments | (195) | 768 |
Ending balance, as of December 31 | $ 349,607 | $ 350,229 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 232,578 | $ 190,274 |
Accrued expenses | 112,856 | 95,951 |
Government authorities | 140,443 | 127,129 |
Other | 1,670 | 3,820 |
Accrued expenses and other liabilities | $ 487,547 | $ 417,174 |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional amount | $ 170,602 | $ 94,226 |
Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 4,987 | 5,829 |
Option Contracts To Hedge Payroll Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 0 | 15,733 |
Option Contracts To Hedge Payroll Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 0 | 795 |
Option Contracts to Hedge Facility Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 0 | 901 |
Option Contracts to Hedge Facility Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 0 | 46 |
Forward Contracts to Hedge Payroll Expenses NIS | ||
Derivative [Line Items] | ||
Notional amount | 125,884 | 67,652 |
Forward Contracts to Hedge Payroll Expenses NIS | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 4,164 | 4,807 |
Forward Contracts to Hedge Payroll Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 42,562 | 7,866 |
Forward Contracts to Hedge Payroll Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 798 | 168 |
Forward Contracts to Hedge Payroll Expenses PHP | ||
Derivative [Line Items] | ||
Notional amount | 705 | 1,623 |
Forward Contracts to Hedge Payroll Expenses PHP | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | (5) | 3 |
Forward Contracts To Hedge Facility Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 1,451 | 451 |
Forward Contracts To Hedge Facility Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | $ 30 | $ 10 |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued expenses and other liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative liabilities | $ (5) | $ 0 |
Foreign exchange option contracts | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 841 |
Foreign exchange forward contracts | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Derivative assets | $ 4,992 | $ 4,988 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | $ 5,024 | $ 4,954 | $ 5,495 |
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | (5,928) | (2,469) | (429) |
Forward contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | 4,993 | 5,901 | 2,108 |
Forward contracts | Cost of revenues, operating expenses and financial expenses | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | (5,157) | (1,979) | (749) |
Option contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | 31 | (947) | 3,387 |
Option contracts | Cost of revenues and operating expenses | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | $ (771) | $ (490) | $ 320 |
LEASES -Narrative (Details)
LEASES -Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 23,461 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Cash payments related to operating lease | $ 25,612 |
New right-of-use assets obtained in exchange for operating lease obligations | $ 561 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2022 | $ 22,766 |
2023 | 14,695 |
2024 | 11,546 |
2025 | 9,910 |
2026 | 9,533 |
Thereafter | 63,016 |
Total lease payments | 131,466 |
Less imputed interest | (30,767) |
Total | $ 100,699 |
LEASES - Schedule of Suppleme_2
LEASES - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Current maturities of operating leases | $ 19,514 | $ 22,412 |
Long-term operating leases | 81,185 | $ 92,262 |
Total operating lease liabilities | $ 100,699 | |
Weighted-average remaining operating lease term | 10 years 11 months 8 days | |
Weighted-average discount rate of operating leases | 5.45% |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Other Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Bank guarantee | $ 4,016 |
Agreements With Suppliers To Purchase Licenses And Hosting Services | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Non-cancelable obligations | $ 96,054 |
TAXES ON INCOME - Narrative (De
TAXES ON INCOME - Narrative (Details) $ in Thousands | Feb. 28, 2022USD ($) | Feb. 25, 2021USD ($) | Dec. 31, 2021USD ($)installment | Dec. 31, 2020USD ($) | Dec. 31, 2019 |
Income Tax Examination [Line Items] | |||||
Tax rate | 23.00% | 23.00% | 23.00% | ||
Federal and state income taxes rate | 24.80% | ||||
Tax loss carry-forwards | $ 221,908 | ||||
Tax loss carry-forwards that have no expiration date | 107,442 | ||||
Accrued interest related to income tax uncertainties | $ 14,495 | $ 8,453 | |||
Israel Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Final assessment amount | $ 16,000 | ||||
Israel Tax Authority | Subsequent Event | |||||
Income Tax Examination [Line Items] | |||||
Final assessment amount | $ 14,675 | ||||
2012 | |||||
Income Tax Examination [Line Items] | |||||
Tax rate | 20.00% | ||||
The election | 2017 and thereafter | |||||
Income Tax Examination [Line Items] | |||||
Tax rate | 12.00% | ||||
Income not eligible for Preferred Enterprise benefits | 2021 | |||||
Income Tax Examination [Line Items] | |||||
Tax rate | 23.00% | ||||
Encouragement of Industry | |||||
Income Tax Examination [Line Items] | |||||
Number of annual installments for deduction of public offering expenses | installment | 3 | ||||
Amortization period of purchased know-how and patents | 8 years | ||||
Non-Israeli Subsidiaries | |||||
Income Tax Examination [Line Items] | |||||
Undistributed earnings | $ 1,221,292 | ||||
Unrecognized deferred tax liability | $ 154,929 |
TAXES ON INCOME - Schedule of D
TAXES ON INCOME - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating losses carryforward and tax credits | $ 50,551 | $ 42,154 |
Intra-entity transfer of certain intangible assets | 18,986 | 20,734 |
Operating leases liabilities | 22,454 | 24,286 |
Share based payments | 28,721 | 20,330 |
Research and development costs | 21,643 | 9,210 |
Reserves, allowances and other | 47,405 | 46,943 |
Deferred tax assets before valuation allowance | 189,760 | 163,657 |
Valuation allowance | (10,464) | (10,227) |
Deferred tax assets | 179,296 | 153,430 |
Deferred tax liabilities: | ||
Acquired intangibles | (59,678) | (81,320) |
Operating lease right-of-use assets | (19,001) | (20,419) |
Acquired deferred revenue | (1,907) | (1,785) |
Internal use software and other fixed assets | (16,835) | (19,168) |
Prepaid compensation expenses | (30,788) | (23,965) |
Debt | (2,937) | (3,679) |
Other | (333) | (2,468) |
Deferred tax liabilities | (131,479) | (152,804) |
Deferred tax assets, net | 47,817 | 626 |
Deferred tax assets | 55,246 | 32,735 |
Deferred tax liabilities | $ (7,429) | $ (32,109) |
TAXES ON INCOME - Schedule of E
TAXES ON INCOME - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income, as reported in the consolidated statements of income | $ 240,619 | $ 237,188 | $ 234,273 |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% |
Preferred Enterprise / Preferred Technology Enterprise benefits | (2.20%) | (3.80%) | (7.70%) |
Changes in valuation allowance | 1.00% | 0.50% | 0.70% |
Earnings taxed under foreign law | 0.20% | (0.50%) | 17.90% |
Tax settlements and other adjustments | (1.80%) | (0.60%) | 5.80% |
Intangible assets transfer | (1.70%) | 0.10% | (14.20%) |
Other | (1.30%) | (1.50%) | (4.90%) |
Effective tax rate | 17.20% | 17.20% | 20.60% |
TAXES ON INCOME - Schedule of_2
TAXES ON INCOME - Schedule of Effect on Benefit Resulting from "Preferred Enterprise" Status on Net Earnings Per Ordinary Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | |||
Basic earnings per share (in usd per share) | $ 3.15 | $ 3.13 | $ 2.99 |
Diluted earnings per share (in usd per share) | 2.98 | 2.98 | 2.88 |
Approved, Privileged and Preferred Enterprise | |||
Entity Information [Line Items] | |||
Basic earnings per share (in usd per share) | 0.08 | 0.15 | 0.29 |
Diluted earnings per share (in usd per share) | $ 0.08 | $ 0.14 | $ 0.28 |
TAXES ON INCOME - Schedule of I
TAXES ON INCOME - Schedule of Income before Income Tax, Domestic And Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | |||
Income before taxes on income, as reported in the consolidated statements of income | $ 240,619 | $ 237,188 | $ 234,273 |
Domestic | |||
Income Tax Examination [Line Items] | |||
Income before taxes on income, as reported in the consolidated statements of income | 53,703 | 87,008 | 169,236 |
Foreign | |||
Income Tax Examination [Line Items] | |||
Income before taxes on income, as reported in the consolidated statements of income | $ 186,916 | $ 150,180 | $ 65,037 |
TAXES ON INCOME - Schedule of T
TAXES ON INCOME - Schedule of Taxes on Income , Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | |||
Current | $ 80,903 | $ 74,096 | $ 60,586 |
Deferred | (39,507) | (33,254) | (12,217) |
Domestic | 16,171 | 15,995 | 8,614 |
Foreign | 25,225 | 24,847 | 39,755 |
Taxes on income | 41,396 | 40,842 | 48,369 |
Domestic | |||
Income Tax Examination [Line Items] | |||
Current | 27,400 | 22,323 | 29,075 |
Deferred | (11,229) | (6,328) | (20,461) |
Taxes on income | 16,171 | 15,995 | 8,614 |
Foreign | |||
Income Tax Examination [Line Items] | |||
Current | 53,503 | 51,773 | 31,196 |
Deferred | (28,278) | (26,926) | 8,559 |
Taxes on income | $ 25,225 | $ 24,847 | $ 39,755 |
TAXES ON INCOME - Reconciliatio
TAXES ON INCOME - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Uncertain tax positions, beginning of year | $ 73,256 | $ 64,884 |
Increases in tax positions for prior years | 3,190 | 6,456 |
Increases in tax positions for current year | 9,248 | 6,935 |
Settlements | 0 | (378) |
Expiry of the statute of limitations | (8,647) | (4,641) |
Uncertain tax positions, end of year | $ 77,047 | $ 73,256 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Feb. 29, 2016 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2021₪ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020₪ / shares | Feb. 12, 2020USD ($) | Jan. 10, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Ordinary shares, par value ( israeli new sheqel per share) | ₪ / shares | ₪ 1 | ₪ 1 | |||||||
Number of consecutive calendar days preceding option grant date used in calculating the average closing price of one american depository share | 30 days | ||||||||
Percentage of entity's issued and outstanding share capital which constitutes number of options and restricted shares granted | 1.88% | ||||||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit | $ 298,328 | ||||||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit, expected to be recognized, years | 4 years | ||||||||
Treasury shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 200,000 | $ 150,000 | |||||||
Employee Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options and restricted shares granted (in shares) | shares | 437,610,000 | ||||||||
Weighted-average grant-date fair value, options granted (in usd per share) | $ / shares | $ 243.34 | $ 192.44 | $ 121.21 | ||||||
Total intrinsic value, options exercised | $ 189,408 | $ 180,234 | $ 87,872 | ||||||
Restricted Stock Awards And Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Ordinary shares, par value ( israeli new sheqel per share) | (per share) | ₪ 1 | $ 0.32 | |||||||
Weighted-average grant-date fair value, restricted shares granted (in usd per share) | $ / shares | $ 273.31 | ||||||||
2016 Share Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of stock options exercisable after one year from grant date | 25.00% | ||||||||
Percentage of stock options exercisable, quarterly | 6.25% | ||||||||
Vesting period | 3 years | ||||||||
Percentage of restricted share units that vest annually | 25.00% | ||||||||
Expiration period | 6 years | ||||||||
Percentage of entity's issued and outstanding share capital used to determine maximum number of shares subject to awards granted | 3.00% | ||||||||
Options and restricted shares granted (in shares) | shares | 1,187,765 | ||||||||
2016 Share Incentive Plan | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period | 7 years |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Option Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Expected volatility, minimum | 26.21% | 0.00% | 19.44% |
Expected volatility, maximum | 27.87% | 25.79% | 21.54% |
Risk free interest rate, minimum | 0.30% | 0.00% | 1.43% |
Risk free interest rate, maximum | 0.93% | 0.86% | 2.55% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 3 years 6 months | 3 years 6 months | 3 years 6 months |
SHAREHOLDERS' EQUITY -Schedule
SHAREHOLDERS' EQUITY -Schedule of Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance (in shares) | 988,374,000 | |
Granted (in shares) | 437,610,000 | |
Exercised (in shares) | 232,376,000 | |
Cancelled (in shares) | 326,000 | |
Forfeited (in shares) | 84,630,000 | |
Ending balance (in shares) | 1,108,652,000 | 988,374,000 |
Exercisable (in shares) | 375,521,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning balance (in usd per share) | $ 22,490 | |
Granted (in usd per share) | 12,800 | |
Exercised (in usd per share) | 18,410 | |
Cancelled (in usd per share) | 39,520 | |
Forfeited (in usd per share) | 460 | |
Ending balance (in usd per share) | 21,200 | $ 22,490 |
Exercisable (in usd per share) | $ 54,570 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted- average remaining contractual term (in years) | 4 years 5 months 1 day | 4 years 3 months 3 days |
Exercisable | 3 years 1 month 20 days | |
Aggregate intrinsic value | ||
Intrinsic value, outstanding | $ 313,083 | $ 258,014 |
Intrinsic value, exercisable | $ 93,516 |
SHAREHOLDERS' EQUITY - Schedu_2
SHAREHOLDERS' EQUITY - Schedule of Options Outstanding by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | shares | 1,108,652,000 |
Weighted average remaining contractual term (years) | 4 years 5 months 1 day |
Weighted average exercise price (in usd per share) | $ 21,200 |
Options exercisable (in shares) | shares | 375,521,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 54,570 |
$0.27-0.30 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 0.27 |
Range of exercise price, upper (in usd per share) | $ 0.31 |
Options outstanding (in shares) | shares | 951,076,000 |
Weighted average remaining contractual term (years) | 4 years 6 months 25 days |
Weighted average exercise price (in usd per share) | $ 290 |
Options exercisable (in shares) | shares | 230,960,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 300 |
$6.72-8.57 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 6.72 |
Range of exercise price, upper (in usd per share) | $ 8.57 |
Options outstanding (in shares) | shares | 1,820,000 |
Weighted average remaining contractual term (years) | 2 years 1 month 17 days |
Weighted average exercise price (in usd per share) | $ 7,030 |
Options exercisable (in shares) | shares | 1,820,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 7,000 |
$20.44-24.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 20.44 |
Range of exercise price, upper (in usd per share) | $ 24.99 |
Options outstanding (in shares) | shares | 3,019,000 |
Weighted average remaining contractual term (years) | 5 years 11 months 19 days |
Weighted average exercise price (in usd per share) | $ 21,840 |
Options exercisable (in shares) | shares | 2,744,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 21,500 |
$37.21-54.51 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 37.21 |
Range of exercise price, upper (in usd per share) | $ 54.51 |
Options outstanding (in shares) | shares | 4,584,000 |
Weighted average remaining contractual term (years) | 4 years 5 months 4 days |
Weighted average exercise price (in usd per share) | $ 45,660 |
Options exercisable (in shares) | shares | 3,632,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 43,400 |
$57.10-85.14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 57.10 |
Range of exercise price, upper (in usd per share) | $ 85.14 |
Options outstanding (in shares) | shares | 30,968,000 |
Weighted average remaining contractual term (years) | 1 year 6 months 3 days |
Weighted average exercise price (in usd per share) | $ 79,530 |
Options exercisable (in shares) | shares | 30,968,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 79,500 |
$96.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, upper (in usd per share) | $ 96.74 |
Options outstanding (in shares) | shares | 24,891,000 |
Weighted average remaining contractual term (years) | 2 years 4 months 13 days |
Weighted average exercise price (in usd per share) | $ 96,740 |
Options exercisable (in shares) | shares | 24,891,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 96,700 |
$151.63-224.18 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 151.63 |
Range of exercise price, upper (in usd per share) | $ 224.18 |
Options outstanding (in shares) | shares | 68,718,000 |
Weighted average remaining contractual term (years) | 4 years 1 month 20 days |
Weighted average exercise price (in usd per share) | $ 183,220 |
Options exercisable (in shares) | shares | 68,718,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 183,200 |
$232.2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, upper (in usd per share) | $ 232.2 |
Options outstanding (in shares) | shares | 23,576,000 |
Weighted average remaining contractual term (years) | 5 years 3 months 25 days |
Weighted average exercise price (in usd per share) | $ 232,200 |
Options exercisable (in shares) | shares | 11,788,000 |
Weighted average exercise price of options exercisable (in usd per share) | $ 232.20 |
SHAREHOLDERS' EQUITY - Summary
SHAREHOLDERS' EQUITY - Summary of Restricted Stock Units Activity (Details) | 12 Months Ended | ||
Dec. 31, 2021₪ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2020₪ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Ordinary shares, par value ( israeli new sheqel per share) | ₪ / shares | ₪ 1 | ₪ 1 | |
Ordinary shares, par value (usd per share) | ₪ / shares | ₪ 1 | ₪ 1 | |
Restricted Stock Awards And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 1,463,687,000 | ||
Granted (in shares) | 750,155,000 | ||
Vested (in shares) | (485,124,000) | ||
Forfeited (in shares) | (119,709,000) | ||
Ending balance (in shares) | 1,609,009,000 | ||
Ordinary shares, par value ( israeli new sheqel per share) | (per share) | ₪ 1 | $ 0.32 | |
Ordinary shares, par value (usd per share) | (per share) | ₪ 1 | $ 0.32 |
SHAREHOLDERS' EQUITY - Schedu_3
SHAREHOLDERS' EQUITY - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 156,373 | $ 103,464 | $ 82,030 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 17,880 | 11,313 | 11,244 |
Research and development, net | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 28,558 | 13,668 | 9,239 |
Selling and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 42,021 | 30,262 | 26,650 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 67,914 | $ 48,221 | $ 34,897 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2020USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Aug. 30, 2020USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 1,667,000 | |||||||
Exchange price threshold percentage for 20 trading days out of 30 consecutive trading days | 130.00% | |||||||
Reclass of equity to liability, conversion option | $ 292,940,000 | $ 0 | $ 0 | |||||
Loss in respect of debt extinguishment | $ 13,969,000 | 0 | 0 | |||||
Member Units | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of exchangeable note shares (in shares) | shares | 3,457,475 | |||||||
Strike price (in usd per share) | $ / shares | $ 101.82 | |||||||
Term Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 475,000,000 | |||||||
Prepaid principal amount | $ 260,000,000 | |||||||
Debt issuance costs | 5,300,000 | $ 10,158,000 | ||||||
Repayment of remaining principal amount | $ 215,000,000 | |||||||
Amortization of debt issuance costs | 725,000 | 1,687,000 | 1,004,000 | |||||
Term Debt | Senior Notes | Member Units | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility | $ 75,000,000 | |||||||
Amortization of remaining debt issuance costs | $ 325,000 | |||||||
Term Debt | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.25% | |||||||
Term Debt | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Term Debt | Federal Funds Effective Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread on variable rate | 0.50% | |||||||
Term Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread on variable rate | 1.00% | |||||||
Term Debt | Eurocurrency loans ranges | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | 0.0125 | |||||||
Term Debt | Eurocurrency loans ranges | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | 0.0200 | |||||||
Term Debt | ABR loans ranges | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | 0.0025 | |||||||
Term Debt | ABR loans ranges | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | 0.0100 | |||||||
2017 Exchangeable Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | 110,187,000 | $ 110,187,000 | 287,495,000 | |||||
Debt issuance costs | 5,791,000 | |||||||
Amortization of debt issuance costs | 608,000 | 820,000 | 753,000 | |||||
Principal | $ 287,500,000 | |||||||
Notice amount for conversion | 195,342,000 | 66,000 | ||||||
Notice settlement amount | 177,308,000 | 5,000 | ||||||
Loss in respect of debt extinguishment | 13,969,000 | 0 | $ 0 | |||||
2017 Exchangeable Notes | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt fair value | 405,410,000 | 933,695,000 | ||||||
2020 Exchangeable Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | 460,000,000 | 460,000,000 | $ 460,000,000 | |||||
Debt issuance costs | $ 7,952,000 | |||||||
Amortization of debt issuance costs | 1,485,000 | 492,000 | ||||||
Loss in respect of debt extinguishment | 0 | 0 | ||||||
2020 Exchangeable Notes | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt fair value | $ 554,410,000 | $ 520,485,000 |
DEBT - Schedule of Liability In
DEBT - Schedule of Liability Interest Expense (Details) - Term Debt - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 725 | $ 1,687 | $ 1,004 |
Interest expense | 3,848 | 7,676 | |
Total interest expense recognized | $ 5,535 | $ 8,680 | |
Effective interest rate | 2.11% | 4.01% |
DEBT - Schedule of Outstanding
DEBT - Schedule of Outstanding Exchangeable (Details) | 1 Months Ended | |||
Aug. 31, 2020 | Jan. 31, 2017USD ($)$ / shares | Dec. 31, 2021$ / shares | Aug. 30, 2020$ / shares | |
Exchangeable Notes | ||||
Debt Instrument [Line Items] | ||||
Conversion rate effective (per $1000 principal amount) | 0.00334 | 0.012025 | ||
2020 Exchangeable Notes | ||||
Debt Instrument [Line Items] | ||||
Cash coupon rate (per annum) | 0.00% | |||
Effective conversion price (per ADS) (in usd per share) | $ 299.19 | $ 299.19 | ||
2017 Exchangeable Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ | $ 110,187,000 | |||
Cash coupon rate (per annum) | 1.25% | |||
Effective conversion price (per ADS) (in usd per share) | $ 82.96 |
DEBT - Schedule of Carrying Val
DEBT - Schedule of Carrying Values USD $ (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Aug. 30, 2020 | Jan. 31, 2017 | |
2020 Exchangeable Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 460,000,000 | $ 460,000,000 | $ 460,000,000 | |
Conversion option (Level 2) | 0 | |||
Debt issuance costs, net of amortization | (5,975,000) | (7,460,000) | ||
Unamortized discount | (24,758,000) | (31,203,000) | ||
Net liability carrying amount | 429,267,000 | 421,337,000 | ||
Equity component - net carrying value | 32,746,000 | 32,746,000 | ||
2017 Exchangeable Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 110,187,000 | 287,495,000 | $ 110,187,000 | |
Conversion option (Level 2) | 292,940,000 | |||
Debt issuance costs, net of amortization | (780,000) | (2,914,000) | ||
Unamortized discount | (6,401,000) | (24,700,000) | ||
Net liability carrying amount | 395,946,000 | 259,881,000 | ||
Equity component - net carrying value | $ 0 | $ 51,176,000 |
DEBT - Schedule of Interest Exp
DEBT - Schedule of Interest Expense Related (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Non-cash amortization of debt discount | $ 14,469 | $ 13,297 | $ 9,236 |
Loss in respect of convertible loan extinguishment | 13,969 | 0 | 0 |
2020 Exchangeable Notes | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 1,485 | 492 | |
Non-cash amortization of debt discount | 6,471 | 2,165 | |
Interest expense | 0 | 0 | |
Loss in respect of convertible loan extinguishment | 0 | 0 | |
Total interest expense recognized | $ 7,956 | $ 2,657 | |
Effective interest rate | 1.87% | 1.87% | |
2017 Exchangeable Notes | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 608 | $ 820 | 753 |
Non-cash amortization of debt discount | 5,986 | 7,483 | 7,153 |
Interest expense | 1,891 | 3,594 | 3,594 |
Loss in respect of convertible loan extinguishment | 13,969 | 0 | 0 |
Total interest expense recognized | $ 22,454 | $ 11,897 | $ 11,500 |
Effective interest rate | 4.68% | 4.68% | 4.68% |
REPORTABLE SEGMENTS AND GEOGR_3
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION - Financial Information of The Company's Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,921,150 | $ 1,648,016 | $ 1,573,912 |
Operating income (loss) | 263,909 | 242,047 | 238,717 |
Not allocated | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating income (loss) | (156,931) | (119,235) | (130,624) |
Customer Engagement | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,572,176 | 1,347,511 | 1,265,113 |
Operating income (loss) | 316,760 | 268,010 | 244,599 |
Financial Crime and Compliance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 348,974 | 300,505 | 308,799 |
Operating income (loss) | $ 104,080 | $ 93,272 | $ 124,742 |
REPORTABLE SEGMENTS AND GEOGR_4
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION - Schedule of Long-Lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 145,654 | $ 137,785 |
Not allocated | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 1,719 | 1,397 |
Customer Engagement | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 118,557 | 120,955 |
Financial Crime and Compliance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 25,378 | $ 15,433 |
REPORTABLE SEGMENTS AND GEOGR_5
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION - Schedule of Total Revenues from External Customers by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,921,150 | $ 1,648,016 | $ 1,573,912 |
Americas, principally the US | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,566,807 | 1,353,278 | 1,234,549 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 236,122 | 180,177 | 212,252 |
Israel | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,839 | 4,368 | 3,950 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 114,382 | $ 110,193 | $ 123,161 |
REPORTABLE SEGMENTS AND GEOGR_6
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 145,654 | $ 137,785 |
Americas, principally the US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 73,525 | 72,083 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 4,203 | 4,340 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 61,796 | 54,097 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 6,130 | $ 7,265 |
SELECTED STATEMENTS OF INCOME_3
SELECTED STATEMENTS OF INCOME DATA - Schedule of Research and Development Costs, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement Related Disclosures [Abstract] | |||
Total costs | $ 319,083 | $ 261,105 | $ 232,118 |
Less - grants and participations | (2,118) | (2,347) | (2,556) |
Less - capitalization of software development costs | (45,778) | (40,576) | (35,844) |
Research and development, net | $ 271,187 | $ 218,182 | $ 193,718 |
SELECTED STATEMENTS OF INCOME_4
SELECTED STATEMENTS OF INCOME DATA - Schedule of Financial Income/(Expenses) and Other, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement Related Disclosures [Abstract] | |||
Interest and amortization/accretion of premium/discount on marketable securities, net | $ 13,751 | $ 17,596 | $ 16,678 |
Interest | 200 | 1,543 | 3,855 |
Financial income | 13,951 | 19,139 | 20,533 |
Interest | (10,061) | (7,770) | (11,683) |
Loss in respect of debt extinguishment | (13,969) | 0 | 0 |
Debt issuance costs amortization | (610) | (3,650) | (2,083) |
Exchangeable Senior Notes amortization of discount | (5,708) | (9,648) | (7,153) |
Exchange rates differences | (4,131) | (41) | (1,832) |
Other | (2,958) | (2,731) | (2,186) |
Financial expense | (37,437) | (23,840) | (24,937) |
Other (expenses) Income, net | 196 | (158) | (40) |
Financial income and other, net | $ (23,290) | $ (4,859) | $ (4,444) |
SELECTED STATEMENTS OF INCOME_5
SELECTED STATEMENTS OF INCOME DATA - Schedule of Net Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement Related Disclosures [Abstract] | |||
Net income to ordinary shareholders | $ 199,223 | $ 196,346 | $ 185,904 |
Weighted average number of shares (in shares) | 63,189 | 62,710 | 62,120 |
Effect of dilutive securities: Add - employee stock options and RSU (in shares) | 1,605 | 1,611 | 1,682 |
Warrants issued in the exchangeable notes transaction (in shares) | 2,102 | 1,635 | 859 |
Denominator for diluted net earnings per share - adjusted weighted average shares (in shares) | 65,956 | 64,661 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Non-controlling interests | $ 12,874 | $ 24,574 |
2020 Subsidiary | ||
Related Party Transaction [Line Items] | ||
Percentage of non-controlling interest in subsidiary | 20.00% | |
Consideration transferred for acquiring additional ownership | $ 14,000 | |
2020 Subsidiary | Chief Executive Officer | ||
Related Party Transaction [Line Items] | ||
Percentage of non-controlling interest in subsidiary | 12.04% | 18.97% |
Consideration transferred for acquiring additional ownership | $ 4,850 | |
Non-controlling interests | $ 5,186 | $ 9,343 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 25, 2021 | Jan. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||
Repayment of debt | $ 177,308 | $ 215,000 | $ 0 | ||||
Israel Tax Authority | |||||||
Subsequent Event [Line Items] | |||||||
Final assessment amount | $ 16,000 | ||||||
Subsequent Event | Israel Tax Authority | |||||||
Subsequent Event [Line Items] | |||||||
Final assessment amount | $ 14,675 | ||||||
Subsequent Event | 2017 Exchangeable Notes | |||||||
Subsequent Event [Line Items] | |||||||
Repayment of debt | $ 18,093 | ||||||
Aggregated principal amount | $ 2,015 |