Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Entity Registrant Name | 'NICE SYSTEMS LTD |
Entity Central Index Key | '0001003935 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 60,096,547 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $119,545 | $98,596 |
Short term investments | 82,826 | 199,955 |
Trade receivables (net of allowance for doubtful accounts of $ 6,206 and $ 6,374 at December 31, 2013 and 2012, respectively) | 189,323 | 155,426 |
Other receivables and prepaid expenses | 39,849 | 37,626 |
Inventories | 13,448 | 13,897 |
Deferred tax assets | 15,625 | 15,564 |
Total current assets | 460,616 | 521,064 |
LONG-TERM ASSETS: | ' | ' |
Long term investments | 240,782 | 146,154 |
Other long-term assets | 33,253 | 28,676 |
Property and equipment, net | 44,343 | 41,278 |
Other intangible assets, net | 170,125 | 228,746 |
Goodwill | 707,939 | 695,027 |
Total long-term assets | 1,196,442 | 1,139,881 |
Total assets | 1,657,058 | 1,660,945 |
CURRENT LIABILITIES: | ' | ' |
Trade payables | 25,962 | 20,553 |
Deferred revenues and advances from customers | 144,536 | 150,424 |
Accrued expenses and other liabilities | 213,693 | 212,452 |
Total current liabilities | 384,191 | 383,429 |
LONG-TERM LIABILITIES: | ' | ' |
Accrued severance pay | 26,652 | 24,327 |
Deferred tax liabilities | 37,841 | 58,341 |
Other long-term liabilities | 3,578 | 3,760 |
Total long-term liabilities | 68,071 | 86,428 |
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Ordinary shares of NIS 1 par value: Authorized: 125,000,000 shares at December 31, 2013 and 2012; Issued: 68,275,245 and 66,346,119 shares at December 31, 2013 and 2012, respectively; Outstanding: 60,096,547 and 60,248,699 shares at December 31, 2013 and 2012, respectively | 17,212 | 16,666 |
Additional paid-in capital | 1,112,367 | 1,045,733 |
Treasury shares at cost - 8,178,698 and 6,097,420 Ordinary shares at December 31, 2013 and 2012, respectively | -283,851 | -203,907 |
Accumulated other comprehensive income | 12,401 | 12,194 |
Retained earnings | 346,667 | 320,402 |
Total shareholders' equity | 1,204,796 | 1,191,088 |
Total liabilities and shareholders' equity | $1,657,058 | $1,660,945 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | USD ($) | ILS | USD ($) | ILS |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' | ' | ' |
Trade receivables, allowance for doubtful accounts | $6,206 | ' | $6,374 | ' |
Ordinary shares, par value | ' | 1 | ' | 1 |
Ordinary shares, authorized | 125,000,000 | 125,000,000 | 125,000,000 | 125,000,000 |
Ordinary shares, issued | 68,275,245 | 68,275,245 | 66,346,119 | 66,346,119 |
Ordinary shares, outstanding | 60,096,547 | 60,096,547 | 60,248,699 | 60,248,699 |
Treasury shares | 8,178,698 | 8,178,698 | 6,097,420 | 6,097,420 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $377,558 | $369,381 | $355,760 |
Services | 571,726 | 509,631 | 438,071 |
Total revenues | 949,284 | 879,012 | 793,831 |
Cost of revenues: | ' | ' | ' |
Products | 117,833 | 122,917 | 116,256 |
Services | 247,115 | 228,306 | 191,049 |
Total cost of revenues | 364,948 | 351,223 | 307,305 |
Gross profit | 584,336 | 527,789 | 486,526 |
Operating expenses: | ' | ' | ' |
Research and development, net | 136,563 | 121,387 | 109,127 |
Selling and marketing | 248,618 | 230,162 | 199,044 |
General and administrative | 88,304 | 96,134 | 95,650 |
Amortization of acquired intangibles | 30,571 | 32,590 | 23,677 |
Restructuring expenses | 527 | 1,884 | ' |
Total operating expenses | 504,583 | 482,157 | 427,498 |
Operating income | 79,753 | 45,632 | 59,028 |
Financial income and other, net | 3,927 | 8,268 | 10,621 |
Income before taxes on income | 83,680 | 53,900 | 69,649 |
Tax benefit (Taxes on income) | -28,405 | 13,994 | -12,386 |
Net income | $55,275 | $67,894 | $57,263 |
Net earnings per share: | ' | ' | ' |
Basic | $0.92 | $1.11 | $0.91 |
Diluted | $0.89 | $1.09 | $0.89 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Net income | $55,275 | $67,894 | $57,263 |
Change in foreign currency translation adjustment | 4,906 | 7,175 | -6,944 |
Available- for- sale investments: | ' | ' | ' |
Change in net unrealized gains (losses) | -3,503 | 2,553 | 759 |
Less: reclassification adjustment for net gains included in net income | ' | -1,600 | -791 |
Net change (net of tax effect of ($519), $94, $137) | -3,503 | 953 | -32 |
Cash flow hedges: | ' | ' | ' |
Change in unrealized gains | 985 | 13,845 | -13,466 |
Less: reclassificiation adjustment for net gains included in net income | -2,181 | -7,884 | 7,971 |
Net change | -1,196 | 5,961 | -5,495 |
Total other comprehensive income (loss) | 207 | 14,089 | -12,471 |
Comprehensive income | $55,482 | $81,983 | $44,792 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Tax effect | ($519) | $94 | $137 |
STATEMENTS_OF_CHANGES_IN_SHARE
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Share Capital [Member] | Additional Paid-In Capital [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $1,160,760 | $15,875 | $939,064 | ' | $10,576 | $195,245 |
Assumption of restricted share units and options upon the acquisition | 1,230 | ' | 1,230 | ' | ' | ' |
Issuance of shares of ESPP | 562 | 5 | 557 | ' | ' | ' |
Exercise of share options | 26,074 | 391 | 25,683 | ' | ' | ' |
Stock-based compensation | 21,159 | ' | 21,159 | ' | ' | ' |
Excess tax benefit from share-based payment arrangements | 372 | ' | 372 | ' | ' | ' |
Restricted shares vesting in respect of Actimize acquisition | 13 | 2 | 11 | ' | ' | ' |
Treasury shares purchased | -96,318 | ' | ' | -96,318 | ' | ' |
Net current-period other comprehensive income (loss) | -12,471 | ' | ' | ' | -12,471 | ' |
Net income | 57,263 | ' | ' | ' | ' | 57,263 |
Balance at Dec. 31, 2011 | 1,158,644 | 16,273 | 988,076 | -96,318 | -1,895 | 252,508 |
Assumption of restricted share units and options upon the acquisition | 3,763 | ' | 3,763 | ' | ' | ' |
Issuance of shares of ESPP | 599 | 5 | 594 | ' | ' | ' |
Exercise of share options | 29,972 | 388 | 29,584 | ' | ' | ' |
Stock-based compensation | 23,612 | ' | 23,612 | ' | ' | ' |
Excess tax benefit from share-based payment arrangements | 104 | ' | 104 | ' | ' | ' |
Treasury shares purchased | -107,589 | ' | ' | -107,589 | ' | ' |
Net current-period other comprehensive income (loss) | 14,089 | ' | ' | ' | 14,089 | ' |
Net income | 67,894 | ' | ' | ' | ' | 67,894 |
Balance at Dec. 31, 2012 | 1,191,088 | 16,666 | 1,045,733 | -203,907 | 12,194 | 320,402 |
Issuance of shares of ESPP | 783 | 6 | 777 | ' | ' | ' |
Exercise of share options | 38,918 | 523 | 38,395 | ' | ' | ' |
Restricted shares vesting in respect of Merced acquisition | ' | 17 | -17 | ' | ' | ' |
Stock-based compensation | 26,307 | ' | 26,307 | ' | ' | ' |
Excess tax benefit from share-based payment arrangements | 1,172 | ' | 1,172 | ' | ' | ' |
Treasury shares purchased | -79,944 | ' | ' | -79,944 | ' | ' |
Net current-period other comprehensive income (loss) | 207 | ' | ' | ' | 207 | ' |
Dividends paid ($0.48 per share) | -29,010 | ' | ' | ' | ' | -29,010 |
Net income | 55,275 | ' | ' | ' | ' | 55,275 |
Balance at Dec. 31, 2013 | $1,204,796 | $17,212 | $1,112,367 | ($283,851) | $12,401 | $346,667 |
STATEMENTS_OF_CHANGES_IN_SHARE1
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 04, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | |
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ' | ' | ' | ' |
Dividend paid, per share | $0.16 | $0.16 | $0.48 | $0.48 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $55,275 | $67,894 | $57,263 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 91,355 | 95,477 | 66,958 |
Stock-based compensation | 26,307 | 23,612 | 21,159 |
Excess tax benefit from share-based payment arrangements | -1,172 | -104 | -372 |
Accrued severance pay, net | -43 | -126 | 533 |
Amortization of premium and discount and accrued interest on marketable securities | 4,234 | 1,178 | 3,238 |
Gain on marketable securities, net | ' | -1,600 | -791 |
Realized gain on sale of intangible assets | ' | -1,125 | ' |
Deferred taxes, net | -17,275 | -24,168 | -8,775 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade receivables, net | -34,569 | -11,863 | -20,621 |
Other receivables and prepaid expenses | -2,084 | 3,815 | 5,812 |
Inventories | 472 | 500 | -2,048 |
Trade payables | 5,057 | 295 | -3,743 |
Accrued expenses and other liabilities | 1,782 | 9,160 | 22,852 |
Deferred revenue | -4,551 | -27,100 | 12,782 |
Other | -513 | -206 | 127 |
Net cash provided by operating activities | 124,275 | 135,639 | 154,374 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -20,289 | -28,690 | -17,307 |
Proceeds from sale of property and equipment | 63 | 1,006 | 84 |
Investment in marketable securities | -145,885 | -136,897 | -202,768 |
Proceeds from maturity of marketable securities | 162,521 | 151,750 | 229,482 |
Proceeds from sale and call of marketable securities | 791 | 43,997 | 147,480 |
Proceeds from short-term bank deposits | 54,422 | 8 | ' |
Investment in short-term bank deposits | -60,500 | -31,007 | ' |
Payments for business acquisitions, net of cash acquired | -24,191 | -164,545 | -143,377 |
Capitalization of software development costs | -1,038 | -1,110 | -1,150 |
Proceeds upon the realization of investment in affiliate | 683 | ' | ' |
Proceeds from sale of intangible assets, net | ' | 1,125 | ' |
Purchase of intangible assets | ' | ' | -3,000 |
Net cash provided by (used in) investing activities | -33,423 | -164,363 | 9,444 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of shares upon exercise of options and ESPP | 38,381 | 30,380 | 26,751 |
Purchase of treasury shares | -79,447 | -107,038 | -95,886 |
Dividends paid | -29,010 | ' | ' |
Excess tax benefit from share-based payment arrangements | 1,172 | 104 | 372 |
Net cash used in financing activities | -68,904 | -76,554 | -68,763 |
Effect of exchange rate changes on cash | -999 | -563 | -144 |
Increase (decrease) in cash and cash equivalents | 20,949 | -105,841 | 94,911 |
Cash and cash equivalents at the beginning of the year | 98,596 | 204,437 | 109,526 |
Cash and cash equivalents at the end of the year | 119,545 | 98,596 | 204,437 |
Supplemental disclosure of cash flows activities: | ' | ' | ' |
Income taxes | 43,862 | 10,711 | 17,560 |
Interest | 336 | 63 | 78 |
Non-cash activities: | ' | ' | ' |
Accrued liability with respect to treasury shares | 497 | 551 | 432 |
Acquisition Of Fizzback [Member] | ' | ' | ' |
Non-cash activities: | ' | ' | ' |
Assumption of restricted share units and options | ' | ' | 1,230 |
Acquisition of Merced [Member] | ' | ' | ' |
Non-cash activities: | ' | ' | ' |
Assumption of restricted share units and options | ' | $3,763 | ' |
GENERAL
GENERAL | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
GENERAL [Abstract] | ' | ||||||||
GENERAL | ' | ||||||||
NOTE 1:- | GENERAL | ||||||||
a. | General: | ||||||||
NICE Systems Ltd. ("NICE") and subsidiaries (collectively - "the Company") is a global leader in software solutions that enable organizations to better operationalize Big Data. The Company enables organizations to take the next-best-action by understanding people through analytics of structured and unstructured data. The Company's solutions help its customers to become more operationally efficient, customer-focused, performance and revenue driven, security aware, and compliant. The Company's solutions are used by thousands of organizations in more than 150 countries, including 75 of the Fortune 100 companies. The Company has established leadership positions across many of its domains of activities based on comprehensive and innovative enterprise-grade solutions, a unique combination of structured and unstructured data analytics and decisioning technologies, continuous development of its product portfolio, deep domain expertise, global reach and the Company's ability to understand its industry. The Company operates in three business areas. The Customer Interactions business serves customer- facing organizations within Business-to-Consumer enterprises across many verticals, including financial services, telecommunications, travel and healthcare. The Financial Crime & Compliance business serves financial institutions and regulatory agencies. The Security business addresses the needs of security sensitive organizations, such as banks, airports, mass transit, utilities, and public safety, law enforcement and intelligence agencies. The Company offers its solutions both in an on-premise and cloud-based model. To address growing market demand and the Company's customers' need for greater operational flexibility and faster implementations, the Company is continuously expanding its hosted and Software as a Service ("SaaS") offerings. | |||||||||
b. | Acquisitions: | ||||||||
1 | Acquisition of Causata: | ||||||||
On August 12, 2013, the Company completed the acquisition of Causata Inc. ("Causata"), a provider of real-time Big Data analytics. The Company acquired Causata for total consideration of $ 22,666 comprised of $ 21,352 in cash and $ 1,314 representing the fair value of a potential earn out based on performance milestones amounting to a maximum additional payment of $ 2,000. The acquisition will allow the Company to offer solutions which provide greater visibility into a customer's activities on the Web and apply the insights from that data in real time, across other touch points such as the contact center. Organizations will be better positioned to enhance the customer experience, increase revenues, and achieve greater operational efficiency. These solutions are further augmented by Causata's Web-based predictive analytics and machine learning technologies, which, when applied to terabytes of information, allow organizations to improve real-time decisioning and guidance. The Company will benefit from Causata's real-time Hadoop-based interaction repository, real-time decisioning, dynamic customer profiles, and Web personalization. | |||||||||
The acquisition was accounted for by the acquisition method and accordingly, the purchase price has been allocated according to the estimated fair value of the assets acquired and liabilities assumed of Causata. The results of the Causata operations have been included in the consolidated financial statements since August 12, 2013. The Company recorded technology, customer relationship and goodwill in amounts of $10,474, $2,001 and $8,598, respectively. Technology and customer relationship are amortized over a period of 5 years. | |||||||||
2 | Acquisitions in previous years: | ||||||||
On February 7, 2012, the Company completed the acquisition of all of the outstanding shares of Merced Systems, Inc. ("Merced"), the leading provider of performance management solutions that drive business execution in sales and service functions. Merced's performance management solutions help drive sales effectiveness, superior customer experience and operating efficiency across a range of vertical industries. Merced's products serve Global 2000 customers, and include advanced analytics and reporting, incentive compensation management, coaching, and other performance execution applications. Integrating Merced and the Company capabilities creates a closed-loop performance management solution. The Company acquired Merced for total consideration of $185,868 comprised of $182,105 in cash and $3,763, representing the fair value of vested options and restricted share units of NICE granted in exchange of partially vested options of Merced. In connection with this acquisition, the Company recorded net tangible liabilities, core technology, customer relationship, covenant not to compete, backlog and goodwill in the amounts of $29,314, $91,874, $32,310, $8,009, $7,390 and $75,599, respectively. Core technology, customer relationship, covenant not to compete and backlog are amortized over periods of 6, 8, 2.5 and 2 years, respectively. | |||||||||
On October 22, 2012, the Company completed the acquisition of RedKite Financial Markets Limited ("RedKite"). The Company acquired RedKite for total consideration of $11,601 comprised of $9,017 in cash and $2,584 representing the fair value of a potential earn out based on performance milestones amounting to a maximum additional payment of $5,750. The Company recorded technology and goodwill in amounts of $4,785 and $6,803, respectively. Technology is amortized over a period of 3 years. | |||||||||
In 2011, the Company completed the acquisitions of CyberTech Investments BV and Fizzback Group (Holdings) Ltd. ("Fizzback") and their subsidiaries. Total fair value of purchase consideration for the acquisitions was $ 140,341, which includes cash paid for common stock and options and restricted share units. In connection with these acquisitions, the Company recorded intangibles and goodwill in the amounts of $68,785 and $85,994, respectively. | |||||||||
3 | Unaudited pro forma condensed results of operations: | ||||||||
The following represents the unaudited pro forma condensed results of operations for the years ended December 31, 2013 and 2012, assuming that the acquisition of Causata occurred on January 1, 2012. The pro forma information is not necessarily indicative of the results of operations that would have actually occurred had the acquisition been consummated on those dates, nor does it purport to represent the results of operations for future periods. | |||||||||
Year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Unaudited | Unaudited | ||||||||
Revenues | $ | 951,141 | $ | 880,183 | |||||
Net income | $ | 51,341 | $ | 55,498 | |||||
Basic net earnings per share | $ | 0.85 | $ | 0.91 | |||||
Diluted net earnings per share | $ | 0.83 | $ | 0.89 | |||||
4 | Acquisition related costs for the years ended December 31, 2013, 2012 and 2011 amounted to $508, $2,902 and $2,925, respectively, and were included mainly in general and administrative expenses. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
NOTE 2:- | 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 revenue 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 and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE and certain subsidiaries. | |||||||||||||||||
NICE 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: | ||||||||||||||||
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 and Equity Securities". 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" 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 (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. | |||||||||||||||||
The Company's securities are reviewed for impairment in accordance with ASC 320-10-65. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in other comprehensive income (loss). | |||||||||||||||||
f. | Inventories: | ||||||||||||||||
Inventories are stated at the lower of cost or market value. The cost of raw materials is determined by the "standard cost" method, and the cost of finished goods on the basis of costs charged by third party manufacturer. The cost of work-in-progress related to long-term contracts includes materials, subcontractors and other direct costs. | |||||||||||||||||
Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and discontinued products and for market prices lower than cost, if any. At the point of the loss recognition, a new lower cost basis for that inventory is established. In addition, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. Inventory write-downs for 2013, 2012 and 2011 were $2,089, $3,683 and $2,223, respectively, and have been included in cost of revenues. | |||||||||||||||||
g. | 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 rates: | |||||||||||||||||
% | |||||||||||||||||
Computers and peripheral equipment | 33 | ||||||||||||||||
Office furniture and equipment | 15-Jun | ||||||||||||||||
Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. | |||||||||||||||||
h. | Other intangible assets, net: | ||||||||||||||||
Intangible assets are amortized over their estimated useful lives using the straight-line method, at the following weighted average annual rates: | |||||||||||||||||
% | |||||||||||||||||
Core technology | 17 | ||||||||||||||||
Customer relationships and distribution network | 17 | ||||||||||||||||
Capitalized software development costs (see l below) | 33 | ||||||||||||||||
Trademarks | 33 | ||||||||||||||||
Covenant not to compete | 42 | ||||||||||||||||
Acquired Intellectual Property and Research and Development ("IPR&D") is capitalized and assessed for impairment at least annually until the completion of development and afterwards is amortized over its useful life. Impairment on acquired IPR&D of $0, $0 and $1,425 was recorded for the years 2013, 2012 and 2011, respectively. | |||||||||||||||||
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 2013, 2012 and 2011, no impairment indicators have been identified. | |||||||||||||||||
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," goodwill is not amortized, but rather is subject to an annual impairment test. | |||||||||||||||||
ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. | |||||||||||||||||
ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. | |||||||||||||||||
The Company operates in three operation-based segments, which also comprise its reporting units: Customer Interactions Solutions, Security Solutions and Financial Crime and Compliance Solutions. The Company performed a qualitative assessment for the Customer Interactions Solutions and the Security Solutions reporting units during the fourth quarter of 2013 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. | |||||||||||||||||
For the Financial Crime and Compliance Solutions reporting unit, the Company elected to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. The Company performed the first step of the quantitative goodwill impairment test during the fourth quarter of 2013 and concluded that the fair value of the reporting unit exceeded its carrying value, and therefore, no impairment of goodwill existed and the second step of the goodwill impairment test was not required. | |||||||||||||||||
Fair value is determined using discounted cash flows. Significant estimates used in the fair value methodologies include estimates of future cash flows, future growth rates and the weighted average cost of capital of the reporting units. The Company performed the annual impairment tests during the fourth quarter of 2013, 2012 and 2011 and did not identify any impairment losses. | |||||||||||||||||
k. | Revenue recognition: | ||||||||||||||||
The Company generates revenues from sales of software products, services, which include support and maintenance, installation, project management, customization, consulting, training, hosting and SaaS, as well as hardware sales. The Company sells its products 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 basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Revenues from sales of product and software licensing are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. In transactions where a customer's contractual terms include a provision for customer acceptance, revenues are recognized either when such acceptance has been obtained or as the acceptance provision has lapsed. | |||||||||||||||||
For multiple element arrangements within the scope of software revenue recognition guidance, revenues are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. Under the residual method, at the outset of the arrangement with the customer, the Company defers revenue for the fair value of its undelivered elements and recognizes revenue for the remainder of the arrangement fee attributable to the elements initially delivered in the arrangement when the basic criteria in ASC 985-605 have been met. Any discount in the arrangement is allocated to the delivered element. Revenues from maintenance and professional services are recognized ratably over the contractual period and as services are performed, respectively. | |||||||||||||||||
For arrangements that contain both software and non-software components that function together to deliver the products' essential functionality, the Company allocates revenue to each element based on its relative selling price. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables. The selling price for a deliverable is based on its VSOE, if available, third party evidence ("TPE"), if VSOE is not available, or best estimated selling price ("BESP"), if neither VSOE nor TPE are available. The Company establishes VSOE of selling price using the price charged for a deliverable when sold separately and, in rare instances, using the price established by management having the relevant authority. When VSOE cannot be established, the Company attempts to establish selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company's go-to-market strategy differs from that of its peers and the Company's offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products' selling prices are on a standalone basis. Therefore, the Company is typically not able to determine TPE. The BESP price is established considering several external and internal factors including, but not limited to, historical sales, pricing practices and geographies in which the Company offers its products. The determination of the BESP is subject to discretion. | |||||||||||||||||
The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Establishment of VSOE of fair value of professional services is based on the price charged when these services are sold separately. | |||||||||||||||||
Revenues from fixed price contracts that require significant customization, integration and installation are recognized based on ASC 605-35, "Construction-Type and Production-Type Contracts", using the percentage-of-completion method of accounting based on the ratio of costs related to contract performance incurred to date to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact. | |||||||||||||||||
The Company also generates sales from SaaS offerings which provide its customers access to certain of its software within a cloud-based IT environment that the Company manages and offers to customers on a subscription basis. Revenues for the Company's software SaaS subscription offerings are recognized ratably over the contract term commencing with the date its service is made available to customers and all other revenue recognition criteria have been satisfied. | |||||||||||||||||
To assess the probability of collection for revenue recognition, the Company has established a credit policy that determines the credit limit that reflects an amount that is deemed probably collectible for each customer. These credit limits are reviewed and revised periodically on the basis of new customer financial statement information and payment performance. | |||||||||||||||||
For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company's respective shipping and handling costs are included in cost of sales. | |||||||||||||||||
The Company maintains a provision for product returns in accordance with ASC 605, "Revenue Recognition". The provision is estimated based on the Company's past experience and is deducted from revenues. Actual returns could be different from the Company's estimates. As of December 31, 2013 and 2012, the provision for product returns amounted to $2,112 and $2,167, respectively. | |||||||||||||||||
Deferred revenues include advances and payments received from customers, for which revenue has not yet been recognized. | |||||||||||||||||
l. | Research and development expenses: | ||||||||||||||||
Research and development costs (net of grants) incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed". Based on the Company's product development process, technological feasibility is established upon completion of a detailed program design. | |||||||||||||||||
Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. | |||||||||||||||||
Capitalized software development costs are amortized commencing with general product release by the straight-line method over the estimated useful life of the software product. | |||||||||||||||||
m. | Income taxes: | ||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic 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. | |||||||||||||||||
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% (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. | |||||||||||||||||
n. | Non-royalty grants: | ||||||||||||||||
Non-royalty bearing grants from the Government of Israel and the European Union 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. | |||||||||||||||||
o. | 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 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 located primarily in North America, EMEA and APAC. The Company performs ongoing credit evaluations of its customers and obtains letters of credit and bank guarantees for certain receivables. Additionally, the Company insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts 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, U.S. government agency debentures and Israeli Treasury Bills. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. | |||||||||||||||||
The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows resulting from investments in Israeli Treasury Bills and payroll expenses. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 11. | |||||||||||||||||
p. | Severance pay: | ||||||||||||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. | |||||||||||||||||
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. | |||||||||||||||||
The Company's agreements with employees in Israel, joining the Company since May 1, 2009, are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be instead of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. | |||||||||||||||||
The Company also has other liabilities for severance pay in other jurisdictions. | |||||||||||||||||
Severance pay expense for 2013, 2012 and 2011 amounted to $10,862, $11,164 and $12,090, respectively. | |||||||||||||||||
The Company has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6% of their eligible compensation, but generally not greater than $17.5 per year in the year 2013 and $16.5 per year in the years 2012 and 2011, (for certain employees over 50 years of age the maximum contribution is $23 per year in the year 2013 and $22 per year in the years 2012 and 2011) of their annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In the years 2013, 2012 and 2011, the Company recorded an expense for matching contributions in the amount of $3,985, $3,989 and $3,129, respectively. | |||||||||||||||||
q. | 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". | |||||||||||||||||
The weighted average number of shares related to outstanding anti-dilutive options and restricted shares excluded from the calculations of diluted net earnings per share was 586,367, 785,821 and 1,096,069 for the years 2013, 2012 and 2011, respectively. | |||||||||||||||||
r. | Accounting for stock-based compensation: | ||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense 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 value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. | |||||||||||||||||
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, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||||||||||||
The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: 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). For information on the Company's dividend payments see note 14e. | |||||||||||||||||
The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. | |||||||||||||||||
s. | Fair value of financial instruments: | ||||||||||||||||
The Company applies ASC 820, "Fair Value Measurements and Disclosures". 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. | |||||||||||||||||
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. Valuation adjustments and block discounts are not applied to Level 1 instruments. 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 and foreign currency derivative contracts are classified within Level 2 (see note 3 and 11). | |||||||||||||||||
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the short-term maturities of such instruments. | |||||||||||||||||
t. | 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. | |||||||||||||||||
u. | Advertising expenses: | ||||||||||||||||
Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2013, 2012 and 2011 were $9,771, $10,214 and $7,887, respectively. | |||||||||||||||||
v. | 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 presents the cost to repurchase treasury stock as a reduction of shareholders' equity. | |||||||||||||||||
w. | Comprehensive income: | ||||||||||||||||
The Company accounts for comprehensive income in accordance with ASC No. 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. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available for sale marketable securities. | |||||||||||||||||
The following table shows the components of accumulated other comprehensive income, net of taxes, as of December 31, 2013: | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Foreign currency translation adjustment | Total | ||||||||||||||
Beginning balance | $ | 3,443 | $ | 2,789 | $ | 5,962 | $ | 12,194 | |||||||||
Other comprehensive income (loss) before reclassifications | (3,503 | ) | 985 | 4,906 | 2,388 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | - | (2,181 | ) | - | (2,181 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (3,503 | ) | (1,196 | ) | 4,906 | 207 | |||||||||||
Ending balance | $ | (60 | ) | $ | 1,593 | $ | 10,868 | $ | 12,401 | ||||||||
x. | Recently issued accounting standards | ||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss ("NOL") Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11), which provides guidance on the financial statement presentation of an unrecognized tax benefit when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 supports the approach for companies to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This approach requires companies to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The Company plans to adopt ASU 2013-11 in 2015 and is currently evaluating the impact to its consolidated financial statements. | |||||||||||||||||
SHORTTERM_AND_LONGTERM_INVESTM
SHORT-TERM AND LONG-TERM INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS [Abstract] | ' | ||||||||||||||||||||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS | ' | ||||||||||||||||||||||||||||||||
NOTE 3:- | SHORT-TERM AND LONG-TERM INVESTMENTS | ||||||||||||||||||||||||||||||||
Short-term and long-term investments include marketable securities in the amount of $285,928 and $314,945 as of December 31, 2013 and 2012, respectively and short-term bank deposits in the amounts of $37,680 and $31,164 as of December 31, 2013 and 2012, 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, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 272,431 | $ | 190,826 | $ | 2,545 | $ | 3,787 | $ | 1,797 | $ | 60 | $ | 273,179 | $ | 194,553 | |||||||||||||||||
U.S. Treasuries | 13,331 | 13,227 | 65 | 276 | 647 | 60 | 12,749 | 13,443 | |||||||||||||||||||||||||
U.S. Government agency debentures | - | 375 | - | - | - | - | - | 375 | |||||||||||||||||||||||||
Israeli Treasury Bills | - | 106,330 | - | 244 | - | - | - | 106,574 | |||||||||||||||||||||||||
$ | 285,762 | $ | 310,758 | $ | 2,610 | $ | 4,307 | $ | 2,444 | $ | 120 | $ | 285,928 | $ | 314,945 | ||||||||||||||||||
The scheduled maturities of available-for-sale marketable securities as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||
Due within one year | $ | 44,840 | $ | 45,146 | |||||||||||||||||||||||||||||
Due after one year through five years | 226,966 | 227,714 | |||||||||||||||||||||||||||||||
Due after six years through ten years | 13,956 | 13,068 | |||||||||||||||||||||||||||||||
$ | 285,762 | $ | 285,928 | ||||||||||||||||||||||||||||||
Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2013 and 2012 were as indicated in the following tables: | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
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 value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||
value | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 119,043 | $ | (1,718 | ) | $ | 7,767 | $ | (79 | ) | $ | 126,810 | $ | (1,797 | ) | ||||||||||||||||||
U.S. Treasuries | - | - | 6,365 | (647 | ) | 6,365 | (647 | ) | |||||||||||||||||||||||||
$ | 119,043 | $ | (1,718 | ) | $ | 14,132 | $ | (726 | ) | $ | 133,175 | $ | (2,444 | ) | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
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 value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||
value | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 18,438 | $ | (58 | ) | $ | 349 | $ | (2 | ) | $ | 18,787 | $ | (60 | ) | ||||||||||||||||||
U.S. Treasuries | 6,954 | (60 | ) | - | - | 6,954 | (60 | ) | |||||||||||||||||||||||||
Israeli Treasury Bills | 1,783 | - | - | - | 1,783 | - | |||||||||||||||||||||||||||
$ | 27,175 | $ | (118 | ) | $ | 349 | $ | (2 | ) | $ | 27,524 | $ | (120 | ) |
OTHER_RECEIVABLES_AND_PREPAID_
OTHER RECEIVABLES AND PREPAID EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER RECEIVABLES AND PREPAID EXPENSES [Abstract] | ' | ||||||||
OTHER RECEIVABLES AND PREPAID EXPENSES | ' | ||||||||
NOTE 4:- | OTHER RECEIVABLES AND PREPAID EXPENSES | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Government authorities | $ | 19,367 | $ | 20,184 | |||||
Interest receivable | 3,630 | 4,019 | |||||||
Prepaid expenses | 11,919 | 8,575 | |||||||
Other | 4,933 | 4,848 | |||||||
$ | 39,849 | $ | 37,626 |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 5:- | INVENTORIES | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,677 | $ | 3,330 | |||||
Work-in-progress | 2,357 | 3,838 | |||||||
Finished goods | 7,414 | 6,729 | |||||||
$ | 13,448 | $ | 13,897 |
OTHER_LONGTERM_ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER LONG-TERM ASSETS [Abstract] | ' | ||||||||
OTHER LONG-TERM ASSETS | ' | ||||||||
NOTE 6:- | OTHER LONG-TERM ASSETS | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Severance pay fund | $ | 24,543 | $ | 22,147 | |||||
Long-term deposits | 1,940 | 1,914 | |||||||
Deferred tax assets | 3,875 | 4,615 | |||||||
Other investment | 2,895 | - | |||||||
$ | 33,253 | $ | 28,676 |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT, NET | ' | ||||||||
NOTE 7:- | PROPERTY AND EQUIPMENT, NET | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cost: | |||||||||
Computers and peripheral equipment | $ | 111,394 | $ | 104,883 | |||||
Office furniture and equipment | 12,979 | 16,149 | |||||||
Leasehold improvements | 25,540 | 23,261 | |||||||
149,913 | 144,293 | ||||||||
Accumulated depreciation: | |||||||||
Computers and peripheral equipment | 84,737 | 80,179 | |||||||
Office furniture and equipment | 9,647 | 12,823 | |||||||
Leasehold improvements | 11,186 | 10,013 | |||||||
105,570 | 103,015 | ||||||||
Depreciated cost | $ | 44,343 | $ | 41,278 | |||||
Depreciation expense totaled $17,863, $16,280 and $12,959 for the years 2013, 2012 and 2011, respectively. |
OTHER_INTANGIBLE_ASSETS_NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER INTANGIBLE ASSETS, NET [Abstract] | ' | ||||||||
OTHER INTANGIBLE ASSETS, NET | ' | ||||||||
NOTE 8:- | OTHER INTANGIBLE ASSETS, NET | ||||||||
a. | Definite-lived other intangible assets: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Original amounts: | |||||||||
Core technology | $ | 304,230 | $ | 290,217 | |||||
Customer relationships and distribution network | 197,258 | 193,868 | |||||||
Capitalized software development costs | 10,171 | 12,518 | |||||||
Trademarks | 14,644 | 14,487 | |||||||
Covenant not to compete | 10,296 | 10,582 | |||||||
536,599 | 521,672 | ||||||||
Accumulated amortization: | |||||||||
Core technology | 192,266 | 152,331 | |||||||
Customer relationships and distribution network | 144,818 | 114,384 | |||||||
Capitalized software development costs | 7,745 | 10,016 | |||||||
Trademarks | 13,074 | 11,111 | |||||||
Covenant not to compete | 8,571 | 5,084 | |||||||
366,474 | 292,926 | ||||||||
Other intangible assets, net | $ | 170,125 | $ | 228,746 | |||||
b. | Amortization expense amounted to $73,492, $79,196 and $52,574 for the years 2013, 2012 and 2011, respectively. | ||||||||
c. | Estimated amortization expense (excluding amortization of capitalized software development costs): | ||||||||
For the year ended December 31, | |||||||||
2014 | $ | 53,673 | |||||||
2015 | 43,175 | ||||||||
2016 | 32,997 | ||||||||
2017 | 26,486 | ||||||||
2018 and thereafter | 11,368 | ||||||||
$ | 167,699 |
GOODWILL
GOODWILL | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
GOODWILL [Abstract] | ' | ||||||||||||||||
GOODWILL | ' | ||||||||||||||||
NOTE 9:- | GOODWILL | ||||||||||||||||
The changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Year ended | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance Solutions | Total | ||||||||||||||
As of January 1, 2013 | $ | 368,303 | $ | 58,454 | $ | 268,270 | $ | 695,027 | |||||||||
Acquisitions | 8,598 | - | - | 8,598 | |||||||||||||
Functional currency translation adjustments | 3,299 | 464 | 551 | 4,314 | |||||||||||||
As of December 31, 2013 | $ | 380,200 | $ | 58,918 | $ | 268,821 | $ | 707,939 | |||||||||
Year ended | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance Solutions | Total | ||||||||||||||
As of January 1, 2012 | $ | 290,590 | $ | 57,978 | $ | 260,619 | $ | 609,187 | |||||||||
Acquisitions | 75,599 | - | 6,803 | 82,402 | |||||||||||||
Functional currency translation adjustments | 2,114 | 476 | 848 | 3,438 | |||||||||||||
As of December 31, 2012 | $ | 368,303 | $ | 58,454 | $ | 268,270 | $ | 695,027 |
ACCRUED_EXPENSES_AND_OTHER_LIA
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ' | ||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | ' | ||||||||
NOTE 10:- | ACCRUED EXPENSES AND OTHER LIABILITIES | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Employees and payroll accruals | $ | 71,058 | $ | 66,732 | |||||
Accrued expenses | 80,345 | 83,637 | |||||||
Government authorities | 57,916 | 59,077 | |||||||
Other | 4,374 | 3,006 | |||||||
$ | 213,693 | $ | 212,452 |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ' | ||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||||||||||
NOTE 11:- | 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", 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, a company 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. | |||||||||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the line item associated with the hedged transaction in the period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item representing the ineffective portion of the derivative, if any, is recognized in financial income (expense) in the period of change. | |||||||||||||||||
The Company entered into option contracts to hedge a portion of anticipated New Israeli Shekel ("NIS") payroll and benefit payments. The Company also entered into forward contracts, to hedge Israeli Treasury Bills denominated in NIS. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured in 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 or finance expenses, respectively, at the time that the hedged income/expense is recorded. | |||||||||||||||||
Notional amount | Fair value | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Level 2: | |||||||||||||||||
Option contracts to hedge payroll expenses | $ | 69,700 | $ | 88,050 | $ | 1,722 | $ | 2,795 | |||||||||
Forward contracts to hedge Israeli Treasury Bills | - | 107,408 | - | (4,107 | ) | ||||||||||||
$ | 69,700 | $ | 195,458 | $ | 1,722 | $ | (1,312 | ) | |||||||||
The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2013, 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, 2013 and 2012 is summarized below: | |||||||||||||||||
Fair value of derivative instruments | |||||||||||||||||
December 31, | |||||||||||||||||
Balance sheet location | 2013 | 2012 | |||||||||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange option contracts | $ | 1,722 | $ | 2,795 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | - | $ | (4,107 | ) | ||||||||||||
Derivative assets | Other receivables and prepaid expenses | $ | 1,722 | $ | 2,795 | ||||||||||||
Derivative liabilities | Accrued expenses and other liabilities | $ | - | $ | (4,107 | ) | |||||||||||
The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2013, 2012 and 2011 is summarized below: | |||||||||||||||||
Amount of gain (loss) recognized in OCI | |||||||||||||||||
on derivative (effective portion) | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Derivatives in cash flow hedging relationship: | |||||||||||||||||
Foreign exchange option contracts | $ | (5,296 | ) | $ | (2,773 | ) | $ | 2,929 | |||||||||
Foreign exchange forward contracts | 4,311 | (11,072 | ) | 10,537 | |||||||||||||
$ | (985 | ) | $ | (13,845 | ) | $ | 13,466 | ||||||||||
Statements | Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | ||||||||||||||||
of income | Year ended December 31, | ||||||||||||||||
line item | 2013 | 2012 | 2011 | ||||||||||||||
Derivative in cash flow hedging relationship: | |||||||||||||||||
Foreign exchange option contracts | Cost of revenues and operating expenses | (6,491 | ) | $ | 2,667 | $ | (1,930 | ) | |||||||||
Foreign exchange forward contracts | Financial income | 4,310 | (10,551 | ) | 9,901 | ||||||||||||
$ | (2,181 | ) | $ | (7,884 | ) | $ | 7,971 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||
NOTE 12:- | COMMITMENTS AND CONTINGENT LIABILITIES | ||||
a. | Lease commitments: | ||||
The Company leases office space, office equipment and various motor vehicles under operating leases. | |||||
1 | The Company's office space and office equipment are rented under several operating leases. | ||||
Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, were as follows: | |||||
2014 | $ | 16,294 | |||
2015 | 14,767 | ||||
2016 | 12,781 | ||||
2017 | 11,610 | ||||
2018 | 9,607 | ||||
2019 and thereafter | 43,278 | ||||
$ | 108,337 | ||||
Rent expenses for the years 2013, 2012 and 2011 were approximately $ 18,219, $ 17,373 and $18,607, respectively. | |||||
2 | The Company leases its motor vehicles under cancelable operating lease agreements. | ||||
The minimum payment under these operating leases, upon cancellation of these lease agreements was $881 as of December 31, 2013. | |||||
Lease expenses for motor vehicles for the years 2013, 2012 and 2011 were $ 4,806, $ 4,798 and $5,707, respectively. | |||||
b. | Other commitments: | ||||
The Company is obligated under certain agreements with its suppliers to purchase goods and, under an agreement with its manufacturing subcontractor, to purchase projected inventory and excess inventory. Non-cancelable obligations, net of provisions, as of December 31, 2013, were $2,363. These obligations are expected to be fulfilled during 2013. | |||||
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, 2013, were $12,938. | |||||
c. | Legal proceedings: | ||||
1 | In December 2006, Calyon Corporate and Investment Bank ("Calyon") filed a suit against the Company in the District Court of Tel Aviv, demanding repayment of $ 648 plus accrued interest, for a total amount of $ 740. The Company deducted this amount in January 2004 from a payment transferred in connection with the acquisition of Thales Contact Solutions ("TCS"). The Company had notified TCS in 2004 that it had set off such amount with respect to an overdue payment by TCS to the Company. The dispute was submitted to mediation, however the mediation process failed and the proceedings were returned to the District Court of Tel Aviv. Trial was held on September 11, 2011, and on May 6, 2012 the Court ruled in favor of the Company, dismissing all claims filed by Calyon and ordering it to pay the Company legal expenses. On June 26, 2012, Calyon filed an appeal with Israel's Supreme Court. A hearing took place on November 20, 2013 in which the Supreme Court ruled that the Company is obligated to pay Calyon an amount equal to 55% of the original amount of $648, plus interest. The Company paid such amount to Calyon and the case has been resolved. | ||||
2 | On July 15, 2010, Tal-Yam Engineering Projects Management and Initiation ("Tal-Yam") filed a suit against the Company in the Tel Aviv Magistrate's Court. The suit alleges a breach of contract due to failure to pay for services rendered to the Company. Tal-Yam is seeking damages in the amount of approximately NIS 1.0 million (approximately $288) and disclosure of certain invoices and related documentation. The Company submitted its statement of defense on October 24, 2010. The parties participated in mediation proceedings that were not successful. Trial hearings took place during January 2013, and summations were filed by Tal Yam on April 24, 2013 and by the Company on June 16, 2013. Tal Yam filed its rejoinder summations on July 11, 2013. The Company is awaiting the court's ruling and is currently unable to evaluate the probability of a favorable or unfavorable outcome. | ||||
3 | On November 24, 2013, Jamshy Software Engineering Ltd. ("Jamshy") filed a suit against the Company in the Tel Aviv Magistrate's Court. The suit alleges failure by the Company to pay Jamshy for software development services that were rendered. Jamshy is seeking damages in the amount of approximately NIS 450 thousands (approximately $130). On January 20, 2014, the Company filed its Statement of Defense, and on March 20, 2014, the Company filed a counterclaim against Jamshy, alleging a breach of contract and claiming damages in the amount of approximately NIS 1.4 million (approximately $390). The parties were referred to mediation proceedings by the Court, and a pre-trial hearing will be held on May 8, 2014. The Company is currently unable to evaluate the probability of a favorable or unfavorable outcome in this dispute. | ||||
4 | On November 7, 2012, a former employee of Actimize Inc. filed a suit in the United States District Court for the Southern District of New York claiming discrimination on the basis of disability. The suit includes a claim for reinstatement as well as compensatory damages and other relief. The parties engaged in mediation, but the mediation did not result in the resolution of the case. A settlement conference was held on February 10, 2014, but no settlement was reached. The Company is unable to evaluate the probability of a favorable or unfavorable outcome in this dispute. | ||||
5 | The Company is involved in various other legal proceedings arising in the normal course of its business. Based upon the advice of counsel, the Company does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. |
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
TAXES ON INCOME [Abstract] | ' | ||||||||||||
TAXES ON INCOME | ' | ||||||||||||
NOTE 13:- | TAXES ON INCOME | ||||||||||||
a. | Israeli taxation: | ||||||||||||
1 | Corporate tax rates in Israel: | ||||||||||||
Taxable income of Israeli companies is subject to tax at the rate of 24% in 2011, 25% in 2012 and 2013 and 26.5% in 2014 and future years. | |||||||||||||
2 | Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 ("the Law"): | ||||||||||||
Various industrial projects of NICE and its Israeli subsidiary have been granted "Approved Enterprise" and "Privileged Enterprise" status, which provides certain benefits, including tax exemptions and reduced tax rates. Income not eligible for Approved Enterprise and Privileged Enterprise benefits is taxed at a regular rate. | |||||||||||||
The entitlement to the above benefits is conditional upon the Company's fulfilling the conditions stipulated by the Law and regulations published thereunder. Should the Company have failed to meet such requirements, income attributable to its Approved Enterprise and Privileged Enterprise programs could be subject to the statutory Israeli corporate tax rate and the Company could be required to refund a portion of the tax benefits already received, with respect to such programs. As of December 31, 2013, management believes that the Company is in compliance with all the conditions required by the Law. | |||||||||||||
Previously, in the event of distribution of dividends from the said tax-exempt income, the amount distributed would have been subject to corporate tax at the rate ordinarily applicable to the Approved or Privileged Enterprise's income. The tax-exempt income attributable to the "Approved Enterprise" programs mentioned above could have been distributed to shareholders without subjecting the Company to taxes only upon the complete liquidation of NICE or its Israeli subsidiary. Tax-exempt income generated under the Company's Privileged Enterprise program would have been subject to taxes upon dividend distribution (which includes the repurchase of the Company's shares) or complete liquidation. | |||||||||||||
Prior to 2013, the Company did not intend to distribute any amounts of its undistributed tax exempt income as dividends as it intended to reinvest its tax-exempt income within the Company. Accordingly, no deferred income taxes were provided on income attributable to the Company's Approved or Privileged Enterprise programs as the undistributed tax exempt income was essentially permanent in duration. | |||||||||||||
In November 2012, as a temporary fiscal raising measure, an order was passed in Israel intended to encourage companies to voluntarily elect for an immediate payment of corporate tax on previously tax-exempted earnings which were earned pursuant to Approved and Privileged Enterprises ("the Order"). The Order did not require the actual distribution of these previously tax-exempted earnings. | |||||||||||||
The Order provided, for those companies which so elect before November 2013, partial Israeli tax relief calculated on a linear basis: the greater the release of the previously tax-exempted earnings, the higher the relief from corporate tax which otherwise would have applied upon an actual distribution. According to the statutory linear formula provided in the Order, the corporate income tax to be paid would vary from a 6% to a 17.5% effective tax rate. | |||||||||||||
During September 2013, the Company made the election and duly released all of its previously tax-exempted earnings related to its various Approved and Privileged Enterprise Programs. As a result of the election and the related settlement of a routine multi-year tax audit, the Company recorded an expense of $19,200 and paid an amount of approximately $32,000. The Company has also committed to make certain investments in "industrial projects" (as defined in the Law) no later than December 31, 2017. The Company believes that this commitment has already been fulfilled during 2013 as part of its existing investment plans. Further to the election, the Company no longer has a tax liability upon future distributions of its tax-exempted earnings. | |||||||||||||
During December 2010, the Law for Economic Policy for 2011 and 2012 (Amended Legislation) was passed, and among other things, amended the Law, ("the Amendment") effective January 1, 2011. According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income (as part of its "Preferred Enterprise"). The Company elected for the Preferred Enterprise regime to apply (the waiver is non-recourse) and is subject to the tax rates as follows: 2012 - 15%, 2013 - 12.5% and 2014 and thereafter - 16%. | |||||||||||||
3 | Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969: | ||||||||||||
NICE is an "Industrial Company" as defined by the above law and, as such, is entitled to certain tax benefits including accelerated depreciation, 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. Our consolidated tax rate depends on the geographical mix of where our profits are earned. Primarily, our U.S. subsidiaries are subject to federal and state income taxes of approximately 37% and our subsidiaries in the U.K. are subject to corporation tax at a rate of approximately 23%. 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, 2013, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $203,000 with a corresponding unrecognized deferred tax liability of $38,600. 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. | Net operating loss carryforward: | ||||||||||||
As of December 31, 2013, certain subsidiaries had tax loss carry-forwards totaling approximately $118,500 which can be carried forward and offset against taxable income with expiration dates ranging from 2014 and onwards. Approximately $85,000 of these carry-forward tax losses have no expiration date. The balance expires between 2014 and 2032. | |||||||||||||
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 increasing taxes before utilization. | |||||||||||||
d. | 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, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating losses carryforward *) | $ | 25,683 | $ | 27,606 | |||||||||
Share based payments | 6,437 | 7,655 | |||||||||||
Reserves, allowances and other | 14,618 | 9,727 | |||||||||||
Deferred tax assets before valuation allowance | 46,738 | 44,988 | |||||||||||
Valuation allowance | (12,253 | ) | (14,667 | ) | |||||||||
Deferred tax assets | 34,485 | 30,321 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Acquired intangibles | (53,049 | ) | (68,520 | ) | |||||||||
Deferred tax liabilities, net | $ | (18,564 | ) | $ | (38,199 | ) | |||||||
*) | Including deferred taxes on losses for US income tax purposes as of December 31, 2013 and 2012, derived from the exercise of employee stock options in the amount of $7,873 and $9,600, respectively. | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 15,625 | $ | 15,564 | |||||||||
Long-term deferred tax assets | 3,875 | 4,615 | |||||||||||
Current deferred tax liabilities | (223 | ) | (37 | ) | |||||||||
Long-term deferred tax liabilities | (37,841 | ) | (58,341 | ) | |||||||||
Deferred tax liabilities, net | $ | (18,564 | ) | $ | (38,199 | ) | |||||||
Long-term deferred tax assets are included within other long-term assets in the balance sheets. Current deferred tax liabilities are included within accrued expenses and other liabilities in the balance sheets. | |||||||||||||
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 realization of these deferred tax assets. | |||||||||||||
e. | A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before taxes on income, as reported in the consolidated statements of income | $ | 83,680 | $ | 53,900 | $ | 69,649 | |||||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Approved, Privileged and Preferred Enterprise benefits *) | 8.4 | % | (11.6 | )% | (12.8 | )% | |||||||
Changes in valuation allowance | (0.9 | )% | (7.0 | )% | (0.5 | )% | |||||||
Earnings taxed under foreign law | (9.9 | )% | (17.4 | )% | (0.4 | )% | |||||||
Tax Settlements and other adjustments of prior year provisions | 9.9 | % | (17.3 | )% | 7.1 | % | |||||||
Other | 1.4 | % | 2.3 | % | 0.4 | % | |||||||
Effective tax rate | 33.9 | % | (26.0 | )% | 17.8 | % | |||||||
*) | The effect of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status (including the expense related to the election to release previously tax-exempted earnings under the Order described in Note 13(a)(2) above) on net earnings per ordinary share is as follows: | ||||||||||||
Basic | $ | (0.12 | ) | $ | 0.1 | $ | 0.1 | ||||||
Diluted | $ | (0.11 | ) | $ | 0.1 | $ | 0.1 | ||||||
f. | Income before taxes on income is comprised as follows: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 68,517 | $ | 67,559 | $ | 46,858 | |||||||
Foreign | 15,163 | (13,659 | ) | 22,791 | |||||||||
$ | 83,680 | $ | 53,900 | $ | 69,649 | ||||||||
g. | Taxes on income are comprised as follows: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 45,690 | $ | 10,250 | $ | 21,136 | |||||||
Deferred | (17,285 | ) | (24,244 | ) | (8,750 | ) | |||||||
$ | 28,405 | $ | (13,994 | ) | $ | 12,386 | |||||||
Domestic | $ | 30,900 | $ | 16,856 | $ | 5,764 | |||||||
Foreign | (2,495 | ) | (30,850 | ) | 6,622 | ||||||||
$ | 28,405 | $ | (13,994 | ) | $ | 12,386 | |||||||
Of which: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic Taxes | |||||||||||||
Current | $ | 32,020 | $ | 17,933 | $ | 8,097 | |||||||
Deferred | (1,120 | ) | (1,077 | ) | (2,333 | ) | |||||||
$ | 30,900 | $ | 16,856 | $ | 5,764 | ||||||||
Foreign Taxes | |||||||||||||
Current | $ | 13,670 | $ | (7,749 | ) | $ | 13,039 | ||||||
Deferred | (16,165 | ) | (23,101 | ) | (6,417 | ) | |||||||
$ | (2,495 | ) | $ | (30,850 | ) | $ | 6,622 | ||||||
Taxes on income | $ | 28,405 | $ | (13,994 | ) | $ | 12,386 | ||||||
h. | Uncertain tax positions: | ||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Uncertain tax positions, beginning of year | $ | 37,965 | $ | 43,435 | |||||||||
Increases in tax positions for prior years | 4,757 | - | |||||||||||
Decreases in tax positions for prior years | - | (3,147 | ) | ||||||||||
Increases in tax positions for current year | 3,563 | 6,046 | |||||||||||
Settlements | (11,864 | ) | (7,125 | ) | |||||||||
Expiry of the statute of limitations | (1,263 | ) | (1,244 | ) | |||||||||
Uncertain tax positions, end of year | $ | 33,158 | $ | 37,965 | |||||||||
All the Company's unrecognized tax benefits would, if recognized, reduce the Company's annual effective tax rate. The Company has further accrued $3,864 due to interest related to uncertain tax positions as of December 31, 2013. | |||||||||||||
During 2013, prior tax years in Israel and the United Kingdom were closed by way of the expiration of the statute of limitations and settlements reached with those tax authorities through routine tax audits. In consideration of the settlement of these aforementioned tax audits in Israel, together with the Company's election pursuant to the Order, we recorded an expense of $19,200 and paid an amount of approximately $32,000. The Company is currently in the process of routine Israeli income tax audits for the tax years 2009 through 2012. As of December 31, 2013, the Company is still subject to further Israeli income tax audits for the tax year of 2013, to U.S. federal income tax audits for the tax years of 2010 through 2013 and to other income tax audits for the tax years of 2008 through 2013. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||
NOTE 14:- | SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
a. | The ordinary shares of the Company are traded on the Tel-Aviv Stock Exchange and its American Depositary Shares ("ADS's") are traded on NASDAQ. | ||||||||||||||||||||||
b. | Share option plans: | ||||||||||||||||||||||
In 2003, the Company adopted the 2003 Stock Option Plan ("the 2003 Option Plan"). Under the 2003 Option Plan, employees and officers of the Company may be granted options to acquire ordinary shares. The options to acquire ordinary shares are granted at an exercise price of not less than the fair market value of the ordinary shares on the grant date, subject to certain exceptions, which may be determined by the Company's Board of Directors. Generally, under the terms of the 2003 Option Plan, 25% of the stock options granted become exercisable on the first anniversary of the date of grant and 6.25% become exercisable once every quarter during the subsequent three years. Stock options expire six years after the date of grant. | |||||||||||||||||||||||
In June 2008, the Company adopted the 2008 Share Incentive Plan ("the 2008 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 2008 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 and/or share appreciation right and/or share and/or restricted share and/or restricted share unit and/or other share unit and/or other share-based award and/or other right or benefit under the 2008 Plan (each an "Award"). | |||||||||||||||||||||||
Generally, under the terms of the 2008 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 restricted share units 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 restricted share units granted and par value options granted become vested on each of the four consecutive annual anniversaries following the date of grant. 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 are granted during calendar year 2014 and thereafter, shall expire seven years following the date of grant. The 2008 Plan provides that the maximum number of shares that may be subject to Awards granted under the 2008 Plan shall be an amount per calendar year, equal to 3.5% of the Company's issued and outstanding share capital as of December 31 of the preceding calendar year. Such amount is reset for each calendar year. | |||||||||||||||||||||||
In December 2010, the Company amended the 2008 Plan, such that options are granted at an exercise price equal to the average of the closing prices of one ordinary share, 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 2008 Plan (including in some cases par value options). Prior to the amendment of the 2008 Plan that occurred in 2010, the options to acquire ordinary shares were granted at an exercise price of not less than the fair market value of the ordinary shares on the date of the grant, subject to certain exceptions which could be determined by the Company's Board of Directors, including in some cases par value options. Further, when the Company distributes cash dividends, the exercise price for each option outstanding, for certain employees, prior to the distribution is reduced by an amount equal to the gross amount of the dividend per share distributed, provided that the exercise price shall not be reduced below the nominal value of the ordinary shares of the Company. | |||||||||||||||||||||||
Pursuant to the terms of the acquisitions of Actimize Ltd., Orsus Solutions Ltd, e-Glue Software Technologies Inc., Fizzback, Merced and Causata, the Company assumed or replaced unvested options, Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") and converted them or replaced them with NICE 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, 2013, 2012 and 2011 was estimated using the following assumptions: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected volatility | 27.5%-30.0% | 27.8%-34.8% | 34.3%-43.8% | ||||||||||||||||||||
Weighted average volatility | 28.80% | 29.40% | 43.00% | ||||||||||||||||||||
Risk free interest rate | 0.4%-0.9% | 0.4%-0.5% | 0.2%-1.3% | ||||||||||||||||||||
Expected dividend | 0%-1.7% | 0% | 0% | ||||||||||||||||||||
Expected term (in years) | 3.3-3.4 | 3.3 | 2.5-3.7 | ||||||||||||||||||||
A summary of the Company's stock options activity and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||
Number of options | Weighted-average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic | ||||||||||||||||||||
value | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 4,538,013 | 21.53 | 4.31 | 54,231 | |||||||||||||||||||
Granted | 1,505,067 | ||||||||||||||||||||||
Exercised | (1,666,617 | ) | |||||||||||||||||||||
Forfeited | (295,161 | ) | |||||||||||||||||||||
Cancelled | (14,729 | ) | |||||||||||||||||||||
Outstanding at December 31, 2013 | 4,066,573 | 22.37 | 4.46 | 75,598 | |||||||||||||||||||
Exercisable at December 31, 2013 | 1,273,420 | 23.1 | 3.12 | 22,742 | |||||||||||||||||||
The weighted-average grant-date fair value of options granted during the years 2013, 2012 and 2011 was $18.24, $16.09 and $17.99, respectively. | |||||||||||||||||||||||
The total intrinsic value of options exercised during the years 2013, 2012 and 2011 was $24,949, $18,072 and $19,295, respectively. | |||||||||||||||||||||||
The options outstanding under the Company's stock option plans as of December 31, 2013 have been separated into ranges of exercise price as follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Options | Weighted | Options | average | ||||||||||||||||||||
outstanding | average | Weighted | exercisable | exercise | |||||||||||||||||||
as of | remaining | average | as of | price of | |||||||||||||||||||
Ranges of | December 31, | contractual | exercise | December 31, | options | ||||||||||||||||||
exercise price | 2013 | term | price | 2013 | exercisable | ||||||||||||||||||
(Years) | $ | $ | |||||||||||||||||||||
$ | 0.21-0.29 | 1,235,151 | 4.91 | 0.29 | 230,731 | 0.29 | |||||||||||||||||
$ | 0.69 | 11,925 | 5.97 | 0.69 | 9,123 | 0.69 | |||||||||||||||||
$ | 2.41-2.89 | 1,702 | 1.2 | 2.68 | 1,702 | 2.68 | |||||||||||||||||
$ | 5.52-6.87 | 12,291 | 2.53 | 6.29 | 12,291 | 6.29 | |||||||||||||||||
$ | 10.92-14.60 | 34,865 | 4.37 | 12.97 | 33,465 | 13 | |||||||||||||||||
$ | 17.24-25.01 | 146,541 | 2.51 | 21.05 | 130,330 | 21.47 | |||||||||||||||||
$ | 26.37-39.09 | 2,624,098 | 4.37 | 33.15 | 855,778 | 30.42 | |||||||||||||||||
4,066,573 | 4.46 | 22.37 | 1,273,420 | 23.1 | |||||||||||||||||||
A summary of the Company's Restricted Stock Awards ("RSA") and the Company's Restricted Stock Units ("RSU") activities and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||
Number of RSU & RSA | Weighted | ||||||||||||||||||||||
average exercise | |||||||||||||||||||||||
price *) | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 700,978 | NIS | 1 | ||||||||||||||||||||
Issued | 412,058 | NIS | 1 | ||||||||||||||||||||
Vested | (239,031 | ) | NIS | 1 | |||||||||||||||||||
Forfeited | (90,902 | ) | NIS | 1 | |||||||||||||||||||
Outstanding at December 31, 2013 | 783,103 | NIS | 1 | ||||||||||||||||||||
*) | Weighted average exercise price is NIS 1 (par value) which represents approximately $0.29. | ||||||||||||||||||||||
As of December 31, 2013, there was approximately $48,890 of unrecognized compensation expense related to non-vested stock options and restricted stock awards, expected to be recognized 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, 2013, 2012 and 2011, was comprised as follows: | |||||||||||||||||||||||
Year ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of revenues | $ | 4,741 | $ | 4,156 | $ | 2,922 | |||||||||||||||||
Research and development, net | 3,080 | 2,840 | 2,966 | ||||||||||||||||||||
Selling and marketing | 10,037 | 7,981 | 7,490 | ||||||||||||||||||||
General and administrative | 8,449 | 8,635 | 7,781 | ||||||||||||||||||||
Total stock-based compensation expenses | $ | 26,307 | $ | 23,612 | $ | 21,159 | |||||||||||||||||
c. | Employee Stock Purchase Plan: | ||||||||||||||||||||||
Eligible employees under the Employee Stock Purchase Plan ("ESPP") can have between 2% to 10% of their earnings withheld, under certain limitations, to be used to purchase ordinary shares. The price of ordinary shares purchased under the ESPP is equal to 95% of the fair market value of the ordinary shares. | |||||||||||||||||||||||
Pursuant to a resolution of the Company's Board of Directors, the Company's Employee Stock Purchase Plan has been terminated, and is no longer in effect as of January 1, 2014. | |||||||||||||||||||||||
During 2013, 2012 and 2011, employees purchased 23,478, 17,753 and 16,582 shares at average prices of $33.36, $33.73 and $33.88 per share, respectively. | |||||||||||||||||||||||
d. | Treasury shares: | ||||||||||||||||||||||
On February 15, 2011, November 2, 2011 and on October 31, 2012 the Company's Board of Directors authorized a program to repurchase up to $100,000 at each time (total of $300,000) of the Company's issued and outstanding ordinary shares and ADRs. Subsequent to the balance sheet date, the Company nearly completed the repurchase of its ordinary shares and ADRs under the third program and the Board of Directors authorized a new program to repurchase up to $100,000 of the Company's issued and outstanding ordinary shares and ADRs. Repurchases may be made from time to time in the open market or in privately negotiated transactions and will be in accordance with applicable securities laws and regulations. The timing and amount of the repurchase transactions will be determined by management and may depend on a variety of factors, including market conditions, alternative investment opportunities and other considerations. The programs do not obligate the Company to acquire any particular amount of ordinary shares and ADRs and the program may be modified or discontinued at any time without prior notice. | |||||||||||||||||||||||
e. | Dividends: | ||||||||||||||||||||||
On February 13, 2013, the Company announced that the Board of Directors has approved a dividend policy under which the Company intends to pay quarterly cash dividends to holders of its ordinary shares and ADRs subject to declaration by the Board. Under Israeli law, dividends may be paid only out of total accumulated retained profits and other surplus (as defined in the law) as of the most recent financial statements or as accrued over a period of the last two years, whichever is higher, provided that there is no reasonable concern that the dividend distribution will prevent the Company from meeting its existing and foreseeable obligations as they come due. Dividends are generally declared and paid in U.S. dollars, although the Company may pay such dividends in Israeli currency. Historically, the Company has not declared or paid cash dividends on its ordinary shares. | |||||||||||||||||||||||
The initial annual dividend was $0.64 per share, or $0.16 per share quarterly, and the first quarterly dividend payment was made in the second quarter of 2013. The total amount of dividends paid in 2013 was $0.48 per share. Subsequent to the balance sheet date, the Company declared and paid an additional dividend of $0.16 per share in respect of the fourth quarter of 2013. |
REPORTABLE_SEGMENTS_AND_GEOGRA
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION [Abstract] | ' | ||||||||||||||||||||
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | ' | ||||||||||||||||||||
NOTE 15:- | REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | ||||||||||||||||||||
a. | Reportable segments: | ||||||||||||||||||||
The Company operates in three operation-based segments: Customer Interactions Solutions, Security Solutions and Financial Crime and Compliance Solutions and these three segments comprise its reporting units. | |||||||||||||||||||||
Each of the operational segments is overseen by their respective segment managers. The segment managers report directly to the Chief Operating Decision Maker ("CODM") with respect to their operating results. | |||||||||||||||||||||
The Company's segments are engaged in business activities for which they earn revenues and incur expenses, their results are reviewed by the CODM and discrete financial information is available. | |||||||||||||||||||||
The following tables present the financial information of the Company's reportable segments. | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 592,299 | $ | 193,937 | $ | 163,048 | $ | - | $ | 949,284 | |||||||||||
Operating income | $ | 115,525 | $ | 25,774 | $ | 29,449 | $ | (90,995 | ) | $ | 79,753 | ||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 565,993 | $ | 185,916 | $ | 127,103 | $ | - | $ | 879,012 | |||||||||||
Operating income | $ | 112,027 | $ | 27,645 | $ | 3,200 | $ | (97,240 | ) | $ | 45,632 | ||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 477,572 | $ | 191,852 | $ | 124,407 | $ | - | $ | 793,831 | |||||||||||
Operating income (loss) | $ | 123,237 | $ | 27,164 | $ | (6,662 | ) | $ | (84,711 | ) | $ | 59,028 | |||||||||
The following presents long-lived assets of December 31, 2013 and 2012, based on operational segments: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Customer Interactions Solutions | $ | 25,235 | $ | 24,247 | |||||||||||||||||
Security Solutions | 6,360 | 5,941 | |||||||||||||||||||
Financial Crime and Compliance Solutions | 7,629 | 7,157 | |||||||||||||||||||
Non-allocated | 5,119 | 3,933 | |||||||||||||||||||
$ | 44,343 | $ | 41,278 | ||||||||||||||||||
b. | Geographical information: | ||||||||||||||||||||
Total revenues from external customers on the basis of the Company's geographical areas are as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Americas, principally the US | $ | 596,663 | $ | 549,575 | $ | 499,162 | |||||||||||||||
EMEA *) | 215,560 | 200,624 | 187,650 | ||||||||||||||||||
Israel | 8,344 | 9,784 | 8,990 | ||||||||||||||||||
Asia Pacific | 128,717 | 119,029 | 98,029 | ||||||||||||||||||
$ | 949,284 | $ | 879,012 | $ | 793,831 | ||||||||||||||||
The following presents long-lived assets of December 31, 2013 and 2012, based on geographical segments: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Americas, principally the US | $ | 10,011 | $ | 8,583 | |||||||||||||||||
EMEA *) | 5,279 | 4,521 | |||||||||||||||||||
Israel | 27,709 | 26,463 | |||||||||||||||||||
Asia Pacific | 1,344 | 1,711 | |||||||||||||||||||
$ | 44,343 | $ | 41,278 | ||||||||||||||||||
*) | Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED_STATEMENTS_OF_INCOME_
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
SELECTED STATEMENTS OF INCOME DATA | ' | ||||||||||||
NOTE 16:- | SELECTED STATEMENTS OF INCOME DATA | ||||||||||||
a. | Research and development expenses, net: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total costs | $ | 140,935 | $ | 126,584 | $ | 113,671 | |||||||
Less - grants and participations | (3,334 | ) | (4,087 | ) | (3,394 | ) | |||||||
Less - capitalization of software development costs | (1,038 | ) | (1,110 | ) | (1,150 | ) | |||||||
$ | 136,563 | $ | 121,387 | $ | 109,127 | ||||||||
b. | Restructuring expense: | ||||||||||||
During 2013 and 2012, the Company initiated restructuring programs for the consolidation of facilities in order to reduce its operating costs. The Company discontinued the use of research and development and sales facilities. In connection with these restructuring programs, the Company recorded restructuring charges in 2013 and 2012 totaling $0.5 million and $1.9 million, respectively. | |||||||||||||
c. | Financial income and other, net: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial income: | |||||||||||||
Interest and amortization/accretion of premium/discount on marketable securities | $ | 4,802 | $ | 4,230 | $ | 8,357 | |||||||
Gain on forward contracts | - | - | 9,902 | ||||||||||
Realized gain on marketable securities | - | 2,095 | 1,124 | ||||||||||
Interest | 1,505 | 2,616 | 3,154 | ||||||||||
Foreign currency translation | 2,664 | 1,717 | 1,725 | ||||||||||
8,971 | 10,658 | 24,262 | |||||||||||
Financial expenses: | |||||||||||||
Realized loss on marketable securities | - | (495 | ) | (333 | ) | ||||||||
Interest | (182 | ) | (103 | ) | (165 | ) | |||||||
Foreign currency translation | (3,486 | ) | (2,368 | ) | (11,872 | ) | |||||||
Other | (1,266 | ) | (954 | ) | (1,109 | ) | |||||||
(4,934 | ) | (3,920 | ) | (13,479 | ) | ||||||||
Other income (expenses), net | (110 | ) | 1,530 | (162 | ) | ||||||||
$ | 3,927 | $ | 8,268 | $ | 10,621 | ||||||||
d. | 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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income available to ordinary shareholders | $ | 55,275 | $ | 67,894 | $ | 57,263 | |||||||
2 | Denominator (in thousands): | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Denominator for basic net earnings per share - | |||||||||||||
Weighted average number of shares | 60,388 | 60,905 | 62,924 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Add - employee stock options and RSU | 1,442 | 1,356 | 1,317 | ||||||||||
Denominator for diluted net earnings per share - adjusted weighted average shares | 61,830 | 62,261 | 64,241 |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUBSEQUENT EVENT [Abstract] | ' | ||
SUBSEQUENT EVENT | ' | ||
NOTE 17:- | SUBSEQUENT EVENTS | ||
a. | On February 4, 2014 the Company's board of directors authorized a new program to repurchase up to $100,000 of the Company's issued and outstanding ordinary shares and ADRs. See Note 14d for further information related to the repurchase program. | ||
b. | In accordance with the adoption of a dividend policy announced on February 13, 2013, as described on Note 14e, the Company announced on February 5, 2014 a declaration of a cash dividend of $0.16 per share for the fourth quarter of 2013 that was paid on March 4, 2014. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
Use of estimates | ' | ||||||||||||||||
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 revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Financial statements in United States dollars | ' | ||||||||||||||||
b. | Financial statements in United States dollars: | ||||||||||||||||
The currency of the primary economic environment in which the operations of NICE and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE and certain subsidiaries. | |||||||||||||||||
NICE 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 | ' | ||||||||||||||||
c. | Principles of consolidation: | ||||||||||||||||
Intercompany transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
Cash equivalents | ' | ||||||||||||||||
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. | |||||||||||||||||
Marketable securities | ' | ||||||||||||||||
e. | Marketable securities: | ||||||||||||||||
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". 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" 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 (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. | |||||||||||||||||
The Company's securities are reviewed for impairment in accordance with ASC 320-10-65. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in other comprehensive income (loss). | |||||||||||||||||
Inventories | ' | ||||||||||||||||
f. | Inventories: | ||||||||||||||||
Inventories are stated at the lower of cost or market value. The cost of raw materials is determined by the "standard cost" method, and the cost of finished goods on the basis of costs charged by third party manufacturer. The cost of work-in-progress related to long-term contracts includes materials, subcontractors and other direct costs. | |||||||||||||||||
Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and discontinued products and for market prices lower than cost, if any. At the point of the loss recognition, a new lower cost basis for that inventory is established. In addition, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. Inventory write-downs for 2013, 2012 and 2011 were $2,089, $3,683 and $2,223, respectively, and have been included in cost of revenues. | |||||||||||||||||
Property and equipment, net | ' | ||||||||||||||||
g. | 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 rates: | |||||||||||||||||
% | |||||||||||||||||
Computers and peripheral equipment | 33 | ||||||||||||||||
Office furniture and equipment | 15-Jun | ||||||||||||||||
Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. | |||||||||||||||||
Other intangible assets, net | ' | ||||||||||||||||
h. | Other intangible assets, net: | ||||||||||||||||
Intangible assets are amortized over their estimated useful lives using the straight-line method, at the following weighted average annual rates: | |||||||||||||||||
% | |||||||||||||||||
Core technology | 17 | ||||||||||||||||
Customer relationships and distribution network | 17 | ||||||||||||||||
Capitalized software development costs (see l below) | 33 | ||||||||||||||||
Trademarks | 33 | ||||||||||||||||
Covenant not to compete | 42 | ||||||||||||||||
Acquired Intellectual Property and Research and Development ("IPR&D") is capitalized and assessed for impairment at least annually until the completion of development and afterwards is amortized over its useful life. Impairment on acquired IPR&D of $0, $0 and $1,425 was recorded for the years 2013, 2012 and 2011, respectively. | |||||||||||||||||
Impairment of long-lived assets | ' | ||||||||||||||||
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 2013, 2012 and 2011, no impairment indicators have been identified. | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
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," goodwill is not amortized, but rather is subject to an annual impairment test. | |||||||||||||||||
ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. | |||||||||||||||||
ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. | |||||||||||||||||
The Company operates in three operation-based segments, which also comprise its reporting units: Customer Interactions Solutions, Security Solutions and Financial Crime and Compliance Solutions. The Company performed a qualitative assessment for the Customer Interactions Solutions and the Security Solutions reporting units during the fourth quarter of 2013 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. | |||||||||||||||||
For the Financial Crime and Compliance Solutions reporting unit, the Company elected to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. The Company performed the first step of the quantitative goodwill impairment test during the fourth quarter of 2013 and concluded that the fair value of the reporting unit exceeded its carrying value, and therefore, no impairment of goodwill existed and the second step of the goodwill impairment test was not required. | |||||||||||||||||
Fair value is determined using discounted cash flows. Significant estimates used in the fair value methodologies include estimates of future cash flows, future growth rates and the weighted average cost of capital of the reporting units. The Company performed the annual impairment tests during the fourth quarter of 2013, 2012 and 2011 and did not identify any impairment losses. | |||||||||||||||||
Revenue recognition | ' | ||||||||||||||||
k. | Revenue recognition: | ||||||||||||||||
The Company generates revenues from sales of software products, services, which include support and maintenance, installation, project management, customization, consulting, training, hosting and SaaS, as well as hardware sales. The Company sells its products 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 basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Revenues from sales of product and software licensing are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. In transactions where a customer's contractual terms include a provision for customer acceptance, revenues are recognized either when such acceptance has been obtained or as the acceptance provision has lapsed. | |||||||||||||||||
For multiple element arrangements within the scope of software revenue recognition guidance, revenues are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. Under the residual method, at the outset of the arrangement with the customer, the Company defers revenue for the fair value of its undelivered elements and recognizes revenue for the remainder of the arrangement fee attributable to the elements initially delivered in the arrangement when the basic criteria in ASC 985-605 have been met. Any discount in the arrangement is allocated to the delivered element. Revenues from maintenance and professional services are recognized ratably over the contractual period and as services are performed, respectively. | |||||||||||||||||
For arrangements that contain both software and non-software components that function together to deliver the products' essential functionality, the Company allocates revenue to each element based on its relative selling price. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables. The selling price for a deliverable is based on its VSOE, if available, third party evidence ("TPE"), if VSOE is not available, or best estimated selling price ("BESP"), if neither VSOE nor TPE are available. The Company establishes VSOE of selling price using the price charged for a deliverable when sold separately and, in rare instances, using the price established by management having the relevant authority. When VSOE cannot be established, the Company attempts to establish selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company's go-to-market strategy differs from that of its peers and the Company's offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products' selling prices are on a standalone basis. Therefore, the Company is typically not able to determine TPE. The BESP price is established considering several external and internal factors including, but not limited to, historical sales, pricing practices and geographies in which the Company offers its products. The determination of the BESP is subject to discretion. | |||||||||||||||||
The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Establishment of VSOE of fair value of professional services is based on the price charged when these services are sold separately. | |||||||||||||||||
Revenues from fixed price contracts that require significant customization, integration and installation are recognized based on ASC 605-35, "Construction-Type and Production-Type Contracts", using the percentage-of-completion method of accounting based on the ratio of costs related to contract performance incurred to date to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact. | |||||||||||||||||
The Company also generates sales from SaaS offerings which provide its customers access to certain of its software within a cloud-based IT environment that the Company manages and offers to customers on a subscription basis. Revenues for the Company's software SaaS subscription offerings are recognized ratably over the contract term commencing with the date its service is made available to customers and all other revenue recognition criteria have been satisfied. | |||||||||||||||||
To assess the probability of collection for revenue recognition, the Company has established a credit policy that determines the credit limit that reflects an amount that is deemed probably collectible for each customer. These credit limits are reviewed and revised periodically on the basis of new customer financial statement information and payment performance. | |||||||||||||||||
For all periods presented, amounts billed to customers related to shipping and handling are classified as revenue, and the Company's respective shipping and handling costs are included in cost of sales. | |||||||||||||||||
The Company maintains a provision for product returns in accordance with ASC 605, "Revenue Recognition". The provision is estimated based on the Company's past experience and is deducted from revenues. Actual returns could be different from the Company's estimates. As of December 31, 2013 and 2012, the provision for product returns amounted to $2,112 and $2,167, respectively. | |||||||||||||||||
Deferred revenues include advances and payments received from customers, for which revenue has not yet been recognized. | |||||||||||||||||
Research and development expenses | ' | ||||||||||||||||
l. | Research and development expenses: | ||||||||||||||||
Research and development costs (net of grants) incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed". Based on the Company's product development process, technological feasibility is established upon completion of a detailed program design. | |||||||||||||||||
Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. | |||||||||||||||||
Capitalized software development costs are amortized commencing with general product release by the straight-line method over the estimated useful life of the software product. | |||||||||||||||||
Income taxes | ' | ||||||||||||||||
m. | Income taxes: | ||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic 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. | |||||||||||||||||
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% (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 | ' | ||||||||||||||||
n. | Non-royalty grants: | ||||||||||||||||
Non-royalty bearing grants from the Government of Israel and the European Union 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 | ' | ||||||||||||||||
o. | 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 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 located primarily in North America, EMEA and APAC. The Company performs ongoing credit evaluations of its customers and obtains letters of credit and bank guarantees for certain receivables. Additionally, the Company insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts 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, U.S. government agency debentures and Israeli Treasury Bills. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. | |||||||||||||||||
The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows resulting from investments in Israeli Treasury Bills and payroll expenses. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 11. | |||||||||||||||||
Severance pay | ' | ||||||||||||||||
p. | Severance pay: | ||||||||||||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. | |||||||||||||||||
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. | |||||||||||||||||
The Company's agreements with employees in Israel, joining the Company since May 1, 2009, are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be instead of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. | |||||||||||||||||
The Company also has other liabilities for severance pay in other jurisdictions. | |||||||||||||||||
Severance pay expense for 2013, 2012 and 2011 amounted to $10,862, $11,164 and $12,090, respectively. | |||||||||||||||||
The Company has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6% of their eligible compensation, but generally not greater than $17.5 per year in the year 2013 and $16.5 per year in the years 2012 and 2011, (for certain employees over 50 years of age the maximum contribution is $23 per year in the year 2013 and $22 per year in the years 2012 and 2011) of their annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In the years 2013, 2012 and 2011, the Company recorded an expense for matching contributions in the amount of $3,985, $3,989 and $3,129, respectively. | |||||||||||||||||
Basic and diluted net earnings per share | ' | ||||||||||||||||
q. | 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". | |||||||||||||||||
The weighted average number of shares related to outstanding anti-dilutive options and restricted shares excluded from the calculations of diluted net earnings per share was 586,367, 785,821 and 1,096,069 for the years 2013, 2012 and 2011, respectively. | |||||||||||||||||
Accounting for stock-based compensation | ' | ||||||||||||||||
r. | Accounting for stock-based compensation: | ||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense 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 value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. | |||||||||||||||||
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, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||||||||||||
The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: 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). For information on the Company's dividend payments see note 14e. | |||||||||||||||||
The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. | |||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||
s. | Fair value of financial instruments: | ||||||||||||||||
The Company applies ASC 820, "Fair Value Measurements and Disclosures". 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. | |||||||||||||||||
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. Valuation adjustments and block discounts are not applied to Level 1 instruments. 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 and foreign currency derivative contracts are classified within Level 2 (see note 3 and 11). | |||||||||||||||||
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the short-term maturities of such instruments. | |||||||||||||||||
Legal contingencies | ' | ||||||||||||||||
t. | 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 | ' | ||||||||||||||||
u. | Advertising expenses: | ||||||||||||||||
Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2013, 2012 and 2011 were $9,771, $10,214 and $7,887, respectively. | |||||||||||||||||
Treasury shares | ' | ||||||||||||||||
v. | 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 presents the cost to repurchase treasury stock as a reduction of shareholders' equity. | |||||||||||||||||
Comprehensive income | ' | ||||||||||||||||
w. | Comprehensive income: | ||||||||||||||||
The Company accounts for comprehensive income in accordance with ASC No. 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. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available for sale marketable securities. | |||||||||||||||||
The following table shows the components of accumulated other comprehensive income, net of taxes, as of December 31, 2013: | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Foreign currency translation adjustment | Total | ||||||||||||||
Beginning balance | $ | 3,443 | $ | 2,789 | $ | 5,962 | $ | 12,194 | |||||||||
Other comprehensive income (loss) before reclassifications | (3,503 | ) | 985 | 4,906 | 2,388 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | - | (2,181 | ) | - | (2,181 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (3,503 | ) | (1,196 | ) | 4,906 | 207 | |||||||||||
Ending balance | $ | (60 | ) | $ | 1,593 | $ | 10,868 | $ | 12,401 | ||||||||
Recently issued accounting standards | ' | ||||||||||||||||
x. | Recently issued accounting standards | ||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss ("NOL") Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11), which provides guidance on the financial statement presentation of an unrecognized tax benefit when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 supports the approach for companies to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This approach requires companies to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The Company plans to adopt ASU 2013-11 in 2015 and is currently evaluating the impact to its consolidated financial statements. | |||||||||||||||||
GENERAL_Tables
GENERAL (Tables) (Acquisition of Merced [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Acquisition of Merced [Member] | ' | ||||||||
General [Line Items] | ' | ||||||||
Schedule of Unaudited Pro Forma Condensed Results of Operations | ' | ||||||||
The following represents the unaudited pro forma condensed results of operations for the years ended December 31, 2013 and 2012, assuming that the acquisition of Causata occurred on January 1, 2012. The pro forma information is not necessarily indicative of the results of operations that would have actually occurred had the acquisition been consummated on those dates, nor does it purport to represent the results of operations for future periods. | |||||||||
Year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Unaudited | Unaudited | ||||||||
Revenues | $ | 951,141 | $ | 880,183 | |||||
Net income | $ | 51,341 | $ | 55,498 | |||||
Basic net earnings per share | $ | 0.85 | $ | 0.91 | |||||
Diluted net earnings per share | $ | 0.83 | $ | 0.89 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SIGNIFICANT 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 rates: | |||||||||||||||||
% | |||||||||||||||||
Computers and peripheral equipment | 33 | ||||||||||||||||
Office furniture and equipment | 15-Jun | ||||||||||||||||
Schedule of Other Intangible Assets Depreciation Rates | ' | ||||||||||||||||
Intangible assets are amortized over their estimated useful lives using the straight-line method, at the following weighted average annual rates: | |||||||||||||||||
% | |||||||||||||||||
Core technology | 17 | ||||||||||||||||
Customer relationships and distribution network | 17 | ||||||||||||||||
Capitalized software development costs (see l below) | 33 | ||||||||||||||||
Trademarks | 33 | ||||||||||||||||
Covenant not to compete | 42 | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income, Net | ' | ||||||||||||||||
The following table shows the components of accumulated other comprehensive income, net of taxes, as of December 31, 2013: | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Foreign currency translation adjustment | Total | ||||||||||||||
Beginning balance | $ | 3,443 | $ | 2,789 | $ | 5,962 | $ | 12,194 | |||||||||
Other comprehensive income (loss) before reclassifications | (3,503 | ) | 985 | 4,906 | 2,388 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | - | (2,181 | ) | - | (2,181 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (3,503 | ) | (1,196 | ) | 4,906 | 207 | |||||||||||
Ending balance | $ | (60 | ) | $ | 1,593 | $ | 10,868 | $ | 12,401 | ||||||||
SHORTTERM_AND_LONGTERM_INVESTM1
SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS [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, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 272,431 | $ | 190,826 | $ | 2,545 | $ | 3,787 | $ | 1,797 | $ | 60 | $ | 273,179 | $ | 194,553 | |||||||||||||||||
U.S. Treasuries | 13,331 | 13,227 | 65 | 276 | 647 | 60 | 12,749 | 13,443 | |||||||||||||||||||||||||
U.S. Government agency debentures | - | 375 | - | - | - | - | - | 375 | |||||||||||||||||||||||||
Israeli Treasury Bills | - | 106,330 | - | 244 | - | - | - | 106,574 | |||||||||||||||||||||||||
$ | 285,762 | $ | 310,758 | $ | 2,610 | $ | 4,307 | $ | 2,444 | $ | 120 | $ | 285,928 | $ | 314,945 | ||||||||||||||||||
Scheduled Maturities of Available-for-Sale Marketable Securities | ' | ||||||||||||||||||||||||||||||||
The scheduled maturities of available-for-sale marketable securities as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||
Due within one year | $ | 44,840 | $ | 45,146 | |||||||||||||||||||||||||||||
Due after one year through five years | 226,966 | 227,714 | |||||||||||||||||||||||||||||||
Due after six years through ten years | 13,956 | 13,068 | |||||||||||||||||||||||||||||||
$ | 285,762 | $ | 285,928 | ||||||||||||||||||||||||||||||
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, 2013 and 2012 were as indicated in the following tables: | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
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 value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||
value | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 119,043 | $ | (1,718 | ) | $ | 7,767 | $ | (79 | ) | $ | 126,810 | $ | (1,797 | ) | ||||||||||||||||||
U.S. Treasuries | - | - | 6,365 | (647 | ) | 6,365 | (647 | ) | |||||||||||||||||||||||||
$ | 119,043 | $ | (1,718 | ) | $ | 14,132 | $ | (726 | ) | $ | 133,175 | $ | (2,444 | ) | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
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 value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||
value | |||||||||||||||||||||||||||||||||
Corporate debentures | $ | 18,438 | $ | (58 | ) | $ | 349 | $ | (2 | ) | $ | 18,787 | $ | (60 | ) | ||||||||||||||||||
U.S. Treasuries | 6,954 | (60 | ) | - | - | 6,954 | (60 | ) | |||||||||||||||||||||||||
Israeli Treasury Bills | 1,783 | - | - | - | 1,783 | - | |||||||||||||||||||||||||||
$ | 27,175 | $ | (118 | ) | $ | 349 | $ | (2 | ) | $ | 27,524 | $ | (120 | ) | |||||||||||||||||||
OTHER_RECEIVABLES_AND_PREPAID_1
OTHER RECEIVABLES AND PREPAID EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER RECEIVABLES AND PREPAID EXPENSES [Abstract] | ' | ||||||||
Schedule of Other Receivables and Prepaid Expenses | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Government authorities | $ | 19,367 | $ | 20,184 | |||||
Interest receivable | 3,630 | 4,019 | |||||||
Prepaid expenses | 11,919 | 8,575 | |||||||
Other | 4,933 | 4,848 | |||||||
$ | 39,849 | $ | 37,626 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,677 | $ | 3,330 | |||||
Work-in-progress | 2,357 | 3,838 | |||||||
Finished goods | 7,414 | 6,729 | |||||||
$ | 13,448 | $ | 13,897 |
OTHER_LONGTERM_ASSETS_Tables
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER LONG-TERM ASSETS [Abstract] | ' | ||||||||
Schedule of Other Long-Term Assets | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Severance pay fund | $ | 24,543 | $ | 22,147 | |||||
Long-term deposits | 1,940 | 1,914 | |||||||
Deferred tax assets | 3,875 | 4,615 | |||||||
Other investment | 2,895 | - | |||||||
$ | 33,253 | $ | 28,676 | ||||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cost: | |||||||||
Computers and peripheral equipment | $ | 111,394 | $ | 104,883 | |||||
Office furniture and equipment | 12,979 | 16,149 | |||||||
Leasehold improvements | 25,540 | 23,261 | |||||||
149,913 | 144,293 | ||||||||
Accumulated depreciation: | |||||||||
Computers and peripheral equipment | 84,737 | 80,179 | |||||||
Office furniture and equipment | 9,647 | 12,823 | |||||||
Leasehold improvements | 11,186 | 10,013 | |||||||
105,570 | 103,015 | ||||||||
Depreciated cost | $ | 44,343 | $ | 41,278 |
OTHER_INTANGIBLE_ASSETS_NET_Ta
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER INTANGIBLE ASSETS, NET [Abstract] | ' | ||||||||
Schedule of Definite-Lived Other Intangible Assets | ' | ||||||||
a. | Definite-lived other intangible assets: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Original amounts: | |||||||||
Core technology | $ | 304,230 | $ | 290,217 | |||||
Customer relationships and distribution network | 197,258 | 193,868 | |||||||
Capitalized software development costs | 10,171 | 12,518 | |||||||
Trademarks | 14,644 | 14,487 | |||||||
Covenant not to compete | 10,296 | 10,582 | |||||||
536,599 | 521,672 | ||||||||
Accumulated amortization: | |||||||||
Core technology | 192,266 | 152,331 | |||||||
Customer relationships and distribution network | 144,818 | 114,384 | |||||||
Capitalized software development costs | 7,745 | 10,016 | |||||||
Trademarks | 13,074 | 11,111 | |||||||
Covenant not to compete | 8,571 | 5,084 | |||||||
366,474 | 292,926 | ||||||||
Other intangible assets, net | $ | 170,125 | $ | 228,746 | |||||
Schedule of Estimated Amortization Expense | ' | ||||||||
c. | Estimated amortization expense (excluding amortization of capitalized software development costs): | ||||||||
For the year ended December 31, | |||||||||
2014 | $ | 53,673 | |||||||
2015 | 43,175 | ||||||||
2016 | 32,997 | ||||||||
2017 | 26,486 | ||||||||
2018 and thereafter | 11,368 | ||||||||
$ | 167,699 |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
GOODWILL [Abstract] | ' | ||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||
The changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Year ended | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance Solutions | Total | ||||||||||||||
As of January 1, 2013 | $ | 368,303 | $ | 58,454 | $ | 268,270 | $ | 695,027 | |||||||||
Acquisitions | 8,598 | - | - | 8,598 | |||||||||||||
Functional currency translation adjustments | 3,299 | 464 | 551 | 4,314 | |||||||||||||
As of December 31, 2013 | $ | 380,200 | $ | 58,918 | $ | 268,821 | $ | 707,939 | |||||||||
Year ended | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance Solutions | Total | ||||||||||||||
As of January 1, 2012 | $ | 290,590 | $ | 57,978 | $ | 260,619 | $ | 609,187 | |||||||||
Acquisitions | 75,599 | - | 6,803 | 82,402 | |||||||||||||
Functional currency translation adjustments | 2,114 | 476 | 848 | 3,438 | |||||||||||||
As of December 31, 2012 | $ | 368,303 | $ | 58,454 | $ | 268,270 | $ | 695,027 |
ACCRUED_EXPENSES_AND_OTHER_LIA1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ' | ||||||||
Components of Accrued Expenses and Other Liabilities | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Employees and payroll accruals | $ | 71,058 | $ | 66,732 | |||||
Accrued expenses | 80,345 | 83,637 | |||||||
Government authorities | 57,916 | 59,077 | |||||||
Other | 4,374 | 3,006 | |||||||
$ | 213,693 | $ | 212,452 |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ' | ||||||||||||||||
Schedule of Notional and Fair Value Amounts of Outstanding Derivative Instruments | ' | ||||||||||||||||
Notional amount | Fair value | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Level 2: | |||||||||||||||||
Option contracts to hedge payroll expenses | $ | 69,700 | $ | 88,050 | $ | 1,722 | $ | 2,795 | |||||||||
Forward contracts to hedge Israeli Treasury Bills | - | 107,408 | - | (4,107 | ) | ||||||||||||
$ | 69,700 | $ | 195,458 | $ | 1,722 | $ | (1,312 | ) | |||||||||
Schedule of Fair Value of Derivative Instruments by Balance Sheet Location | ' | ||||||||||||||||
The fair value of the Company's outstanding derivative instruments at December 31, 2013 and 2012 is summarized below: | |||||||||||||||||
Fair value of derivative instruments | |||||||||||||||||
December 31, | |||||||||||||||||
Balance sheet location | 2013 | 2012 | |||||||||||||||
Derivative assets: | |||||||||||||||||
Foreign exchange option contracts | $ | 1,722 | $ | 2,795 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | - | $ | (4,107 | ) | ||||||||||||
Derivative assets | Other receivables and prepaid expenses | $ | 1,722 | $ | 2,795 | ||||||||||||
Derivative liabilities | Accrued expenses and other liabilities | $ | - | $ | (4,107 | ||||||||||||
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, 2013, 2012 and 2011 is summarized below: | |||||||||||||||||
Amount of gain (loss) recognized in OCI | |||||||||||||||||
on derivative (effective portion) | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Derivatives in cash flow hedging relationship: | |||||||||||||||||
Foreign exchange option contracts | $ | (5,296 | ) | $ | (2,773 | ) | $ | 2,929 | |||||||||
Foreign exchange forward contracts | 4,311 | (11,072 | ) | 10,537 | |||||||||||||
$ | (985 | ) | $ | (13,845 | ) | $ | 13,466 | ||||||||||
Statements | Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | ||||||||||||||||
of income | Year ended December 31, | ||||||||||||||||
line item | 2013 | 2012 | 2011 | ||||||||||||||
Derivative in cash flow hedging relationship: | |||||||||||||||||
Foreign exchange option contracts | Cost of revenues and operating expenses | (6,491 | ) | $ | 2,667 | $ | (1,930 | ) | |||||||||
Foreign exchange forward contracts | Financial income | 4,310 | (10,551 | ) | 9,901 | ||||||||||||
$ | (2,181 | ) | $ | (7,884 | ) | $ | 7,971 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases | ' | ||||
Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, were as follows: | |||||
2014 | $ | 16,294 | |||
2015 | 14,767 | ||||
2016 | 12,781 | ||||
2017 | 11,610 | ||||
2018 | 9,607 | ||||
2019 and thereafter | 43,278 | ||||
$ | 108,337 |
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
TAXES ON INCOME [Abstract] | ' | ||||||||||||
Schedule of 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, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating losses carryforward *) | $ | 25,683 | $ | 27,606 | |||||||||
Share based payments | 6,437 | 7,655 | |||||||||||
Reserves, allowances and other | 14,618 | 9,727 | |||||||||||
Deferred tax assets before valuation allowance | 46,738 | 44,988 | |||||||||||
Valuation allowance | (12,253 | ) | (14,667 | ) | |||||||||
Deferred tax assets | 34,485 | 30,321 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Acquired intangibles | (53,049 | ) | (68,520 | ) | |||||||||
Deferred tax liabilities, net | $ | (18,564 | ) | $ | (38,199 | ) | |||||||
*) | Including deferred taxes on losses for US income tax purposes as of December 31, 2013 and 2012, derived from the exercise of employee stock options in the amount of $7,873 and $9,600, respectively. | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 15,625 | $ | 15,564 | |||||||||
Long-term deferred tax assets | 3,875 | 4,615 | |||||||||||
Current deferred tax liabilities | (223 | ) | (37 | ) | |||||||||
Long-term deferred tax liabilities | (37,841 | ) | (58,341 | ) | |||||||||
Deferred tax liabilities, net | $ | (18,564 | ) | $ | (38,199 | ) | |||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before taxes on income, as reported in the consolidated statements of income | $ | 83,680 | $ | 53,900 | $ | 69,649 | |||||||
Statutory tax rate in Israel | 25 | % | 25 | % | 24 | % | |||||||
Approved, Privileged and Preferred Enterprise benefits *) | 8.4 | % | (11.6 | )% | (12.8 | )% | |||||||
Changes in valuation allowance | (0.9 | )% | (7.0 | )% | (0.5 | )% | |||||||
Earnings taxed under foreign law | (9.9 | )% | (17.4 | )% | (0.4 | )% | |||||||
Tax Settlements and other adjustments of prior year provisions | 9.9 | % | (17.3 | )% | 7.1 | % | |||||||
Other | 1.4 | % | 2.3 | % | 0.4 | % | |||||||
Effective tax rate | 33.9 | % | (26.0 | )% | 17.8 | % | |||||||
*) | The effect of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status (including the expense related to the election to release previously tax-exempted earnings under the Order described in Note 13(a)(2) above) on net earnings per ordinary share is as follows: | ||||||||||||
Basic | $ | (0.12 | ) | $ | 0.1 | $ | 0.1 | ||||||
Diluted | $ | (0.11 | ) | $ | 0.1 | $ | 0.1 | ||||||
Schedule of Income Before Income Tax, Domestic and Foreign | ' | ||||||||||||
Income before taxes on income is comprised as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 68,517 | $ | 67,559 | $ | 46,858 | |||||||
Foreign | 15,163 | (13,659 | ) | 22,791 | |||||||||
$ | 83,680 | $ | 53,900 | $ | 69,649 | ||||||||
Schedule of Taxes on Income | ' | ||||||||||||
Taxes on income are comprised as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 45,690 | $ | 10,250 | $ | 21,136 | |||||||
Deferred | (17,285 | ) | (24,244 | ) | (8,750 | ) | |||||||
$ | 28,405 | $ | (13,994 | ) | $ | 12,386 | |||||||
Domestic | $ | 30,900 | $ | 16,856 | $ | 5,764 | |||||||
Foreign | (2,495 | ) | (30,850 | ) | 6,622 | ||||||||
$ | 28,405 | $ | (13,994 | ) | $ | 12,386 | |||||||
Of which: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic Taxes | |||||||||||||
Current | $ | 32,020 | $ | 17,933 | $ | 8,097 | |||||||
Deferred | (1,120 | ) | (1,077 | ) | (2,333 | ) | |||||||
$ | 30,900 | $ | 16,856 | $ | 5,764 | ||||||||
Foreign Taxes | |||||||||||||
Current | $ | 13,670 | $ | (7,749 | ) | $ | 13,039 | ||||||
Deferred | (16,165 | ) | (23,101 | ) | (6,417 | ) | |||||||
$ | (2,495 | ) | $ | (30,850 | ) | $ | 6,622 | ||||||
Taxes on income | $ | 28,405 | $ | (13,994 | ) | $ | 12,386 | ||||||
Schedule of Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Uncertain tax positions, beginning of year | $ | 37,965 | $ | 43,435 | |||||||||
Increases in tax positions for prior years | 4,757 | - | |||||||||||
Decreases in tax positions for prior years | - | (3,147 | ) | ||||||||||
Increases in tax positions for current year | 3,563 | 6,046 | |||||||||||
Settlements | (11,864 | ) | (7,125 | ) | |||||||||
Expiry of the statute of limitations | (1,263 | ) | (1,244 | ) | |||||||||
Uncertain tax positions, end of year | $ | 33,158 | $ | 37,965 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY [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, 2013, 2012 and 2011 was estimated using the following assumptions: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Expected volatility | 27.5%-30.0% | 27.8%-34.8% | 34.3%-43.8% | ||||||||||||||||||||
Weighted average volatility | 28.80% | 29.40% | 43.00% | ||||||||||||||||||||
Risk free interest rate | 0.4%-0.9% | 0.4%-0.5% | 0.2%-1.3% | ||||||||||||||||||||
Expected dividend | 0%-1.7% | 0% | 0% | ||||||||||||||||||||
Expected term (in years) | 3.3-3.4 | 3.3 | 2.5-3.7 | ||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||
A summary of the Company's stock options activity and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||
Number of options | Weighted-average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic | ||||||||||||||||||||
value | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 4,538,013 | 21.53 | 4.31 | 54,231 | |||||||||||||||||||
Granted | 1,505,067 | ||||||||||||||||||||||
Exercised | (1,666,617 | ) | |||||||||||||||||||||
Forfeited | (295,161 | ) | |||||||||||||||||||||
Cancelled | (14,729 | ) | |||||||||||||||||||||
Outstanding at December 31, 2013 | 4,066,573 | 22.37 | 4.46 | 75,598 | |||||||||||||||||||
Exercisable at December 31, 2013 | 1,273,420 | 23.1 | 3.12 | 22,742 | |||||||||||||||||||
Schedule of Options Outstanding by Exercise Price Range | ' | ||||||||||||||||||||||
The options outstanding under the Company's stock option plans as of December 31, 2013 have been separated into ranges of exercise price as follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Options | Weighted | Options | average | ||||||||||||||||||||
outstanding | average | Weighted | exercisable | exercise | |||||||||||||||||||
as of | remaining | average | as of | price of | |||||||||||||||||||
Ranges of | December 31, | contractual | exercise | December 31, | options | ||||||||||||||||||
exercise price | 2013 | term | price | 2013 | exercisable | ||||||||||||||||||
(Years) | $ | $ | |||||||||||||||||||||
$ | 0.21-0.29 | 1,235,151 | 4.91 | 0.29 | 230,731 | 0.29 | |||||||||||||||||
$ | 0.69 | 11,925 | 5.97 | 0.69 | 9,123 | 0.69 | |||||||||||||||||
$ | 2.41-2.89 | 1,702 | 1.2 | 2.68 | 1,702 | 2.68 | |||||||||||||||||
$ | 5.52-6.87 | 12,291 | 2.53 | 6.29 | 12,291 | 6.29 | |||||||||||||||||
$ | 10.92-14.60 | 34,865 | 4.37 | 12.97 | 33,465 | 13 | |||||||||||||||||
$ | 17.24-25.01 | 146,541 | 2.51 | 21.05 | 130,330 | 21.47 | |||||||||||||||||
$ | 26.37-39.09 | 2,624,098 | 4.37 | 33.15 | 855,778 | 30.42 | |||||||||||||||||
4,066,573 | 4.46 | 22.37 | 1,273,420 | 23.1 | |||||||||||||||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||||||||||||||||
A summary of the Company's Restricted Stock Awards ("RSA") and the Company's Restricted Stock Units ("RSU") activities and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||
Number of RSU & RSA | Weighted | ||||||||||||||||||||||
average exercise | |||||||||||||||||||||||
price *) | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 700,978 | NIS | 1 | ||||||||||||||||||||
Issued | 412,058 | NIS | 1 | ||||||||||||||||||||
Vested | (239,031 | ) | NIS | 1 | |||||||||||||||||||
Forfeited | (90,902 | ) | NIS | 1 | |||||||||||||||||||
Outstanding at December 31, 2013 | 783,103 | NIS | 1 | ||||||||||||||||||||
*) | Weighted average exercise price is NIS 1 (par value) which represents approximately $0.29. | ||||||||||||||||||||||
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, 2013, 2012 and 2011, was comprised as follows: | |||||||||||||||||||||||
Year ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of revenues | $ | 4,741 | $ | 4,156 | $ | 2,922 | |||||||||||||||||
Research and development, net | 3,080 | 2,840 | 2,966 | ||||||||||||||||||||
Selling and marketing | 10,037 | 7,981 | 7,490 | ||||||||||||||||||||
General and administrative | 8,449 | 8,635 | 7,781 | ||||||||||||||||||||
Total stock-based compensation expenses | $ | 26,307 | $ | 23,612 | $ | 21,159 |
REPORTABLE_SEGMENTS_AND_GEOGRA1
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION [Abstract] | ' | ||||||||||||||||||||
Financial Information of The Company's Reportable Segments | ' | ||||||||||||||||||||
The following tables present the financial information of the Company's reportable segments. | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 592,299 | $ | 193,937 | $ | 163,048 | $ | - | $ | 949,284 | |||||||||||
Operating income | $ | 115,525 | $ | 25,774 | $ | 29,449 | $ | (90,995 | ) | $ | 79,753 | ||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 565,993 | $ | 185,916 | $ | 127,103 | $ | - | $ | 879,012 | |||||||||||
Operating income | $ | 112,027 | $ | 27,645 | $ | 3,200 | $ | (97,240 | ) | $ | 45,632 | ||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||
Customer Interactions Solutions | Security Solutions | Financial Crime and Compliance solutions | Not allocated | Total | |||||||||||||||||
Revenues | $ | 477,572 | $ | 191,852 | $ | 124,407 | $ | - | $ | 793,831 | |||||||||||
Operating income (loss) | $ | 123,237 | $ | 27,164 | $ | (6,662 | ) | $ | (84,711 | ) | $ | 59,028 | |||||||||
Schedule of Long-Lived Assets by Operational Segments | ' | ||||||||||||||||||||
The following presents long-lived assets of December 31, 2013 and 2012, based on operational segments: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Customer Interactions Solutions | $ | 25,235 | $ | 24,247 | |||||||||||||||||
Security Solutions | 6,360 | 5,941 | |||||||||||||||||||
Financial Crime and Compliance Solutions | 7,629 | 7,157 | |||||||||||||||||||
Non-allocated | 5,119 | 3,933 | |||||||||||||||||||
$ | 44,343 | $ | 41,278 | ||||||||||||||||||
Schedule of Long-Lived Assets by Geographical Areas | ' | ||||||||||||||||||||
The following presents long-lived assets of December 31, 2013 and 2012, based on geographical segments: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Americas, principally the US | $ | 10,011 | $ | 8,583 | |||||||||||||||||
EMEA *) | 5,279 | 4,521 | |||||||||||||||||||
Israel | 27,709 | 26,463 | |||||||||||||||||||
Asia Pacific | 1,344 | 1,711 | |||||||||||||||||||
$ | 44,343 | $ | 41,278 | ||||||||||||||||||
*) | Includes Europe, the Middle East (excluding Israel) and Africa. | ||||||||||||||||||||
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, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Americas, principally the US | $ | 596,663 | $ | 549,575 | $ | 499,162 | |||||||||||||||
EMEA *) | 215,560 | 200,624 | 187,650 | ||||||||||||||||||
Israel | 8,344 | 9,784 | 8,990 | ||||||||||||||||||
Asia Pacific | 128,717 | 119,029 | 98,029 | ||||||||||||||||||
$ | 949,284 | $ | 879,012 | $ | 793,831 |
SELECTED_STATEMENTS_OF_INCOME_1
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
Schedule of Research and Development Costs, Net | ' | ||||||||||||
Research and development expenses, net: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total costs | $ | 140,935 | $ | 126,584 | $ | 113,671 | |||||||
Less - grants and participations | (3,334 | ) | (4,087 | ) | (3,394 | ) | |||||||
Less - capitalization of software development costs | (1,038 | ) | (1,110 | ) | (1,150 | ) | |||||||
$ | 136,563 | $ | 121,387 | $ | 109,127 | ||||||||
Schedule of Computation of Net Earnings Per Share | ' | ||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income available to ordinary shareholders | $ | 55,275 | $ | 67,894 | $ | 57,263 | |||||||
2 | Denominator (in thousands): | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Denominator for basic net earnings per share - | |||||||||||||
Weighted average number of shares | 60,388 | 60,905 | 62,924 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Add - employee stock options and RSU | 1,442 | 1,356 | 1,317 | ||||||||||
Denominator for diluted net earnings per share - adjusted weighted average shares | 61,830 | 62,261 | 64,241 | ||||||||||
Schedule of Financial Income and Other, Net | ' | ||||||||||||
Financial income and other, net: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Financial income: | |||||||||||||
Interest and amortization/accretion of premium/discount on marketable securities | $ | 4,802 | $ | 4,230 | $ | 8,357 | |||||||
Gain on forward contracts | - | - | 9,902 | ||||||||||
Realized gain on marketable securities | - | 2,095 | 1,124 | ||||||||||
Interest | 1,505 | 2,616 | 3,154 | ||||||||||
Foreign currency translation | 2,664 | 1,717 | 1,725 | ||||||||||
8,971 | 10,658 | 24,262 | |||||||||||
Financial expenses: | |||||||||||||
Realized loss on marketable securities | - | (495 | ) | (333 | ) | ||||||||
Interest | (182 | ) | (103 | ) | (165 | ) | |||||||
Foreign currency translation | (3,486 | ) | (2,368 | ) | (11,872 | ) | |||||||
Other | (1,266 | ) | (954 | ) | (1,109 | ) | |||||||
(4,934 | ) | (3,920 | ) | (13,479 | ) | ||||||||
Other income (expenses), net | (110 | ) | 1,530 | (162 | ) | ||||||||
$ | 3,927 | $ | 8,268 | $ | 10,621 |
GENERAL_Narrative_Details
GENERAL (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 07, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Oct. 22, 2012 | Aug. 12, 2013 |
Acquisition of Cybertech and Fizzback [Member] | Acquisition of Orsus, Lamda and E-Glue [Member] | Acquisition of Merced [Member] | Acquisition of Merced [Member] | Acquisition of Merced [Member] | Acquisition of Merced [Member] | Acquisition of Merced [Member] | Acquisition of Merced [Member] | Acquisition of RedKite [Member] | Acquisition Of Causata [Member] | ||||
Core Technology [Member] | Customer Relationships [Member] | Covenant Not to Compete [Member] | Backlog [Member] | Goodwill [Member] | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $140,341 | $59,766 | $182,105 | ' | ' | ' | ' | ' | $9,017 | $21,352 |
Goodwill from acquisitions | 8,598 | 82,402 | ' | 85,994 | 30,423 | ' | ' | ' | ' | ' | ' | 6,803 | 8,598 |
Customer relationships | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,001 |
Consideration transferred in acquisition | ' | ' | ' | ' | ' | 185,868 | ' | ' | ' | ' | ' | 11,601 | 22,666 |
Recorded net tangible liabilities | ' | ' | ' | ' | ' | 29,314 | ' | ' | ' | ' | ' | ' | ' |
Options and Restricted Share Units | ' | ' | ' | ' | ' | 3,763 | ' | ' | ' | ' | ' | ' | ' |
Fair value of potential earn-out based on performance milestones | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,584 | 1,314 |
Maximum additional payment of earn-out | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,750 | 2,000 |
Intangibles | ' | ' | ' | 68,785 | 32,401 | ' | ' | ' | ' | ' | ' | ' | ' |
Technology | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,785 | 10,474 |
Additional payment | ' | ' | ' | ' | 5,689 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs | 508 | 2,902 | 2,925 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period of technology intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Amortization period | ' | ' | ' | ' | ' | ' | '6 years | '8 years | '2 years 6 months | '2 years | ' | ' | '5 years |
Intangible assets | ' | ' | ' | ' | ' | ' | $91,874 | $32,310 | $8,009 | $7,390 | $75,599 | ' | ' |
GENERAL_Schedule_of_Unaudited_
GENERAL (Schedule of Unaudited Pro Forma Condensed Results of Operations) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
GENERAL [Abstract] | ' | ' |
Revenues | $951,141 | $880,183 |
Net income | $51,341 | $55,498 |
Basic net earnings per share | $0.85 | $0.91 |
Diluted net earnings per share | $0.83 | $0.89 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash equivalents | ' | ' | ' |
Cash equivalents maturities, months | '3 months | ' | ' |
Inventories | ' | ' | ' |
Inventory write-downs | $2,089,000 | $3,683,000 | $2,223,000 |
Other intangible assets, net | ' | ' | ' |
Impairment on acquired IPR&D | ' | ' | 1,425,000 |
Revenue recognition | ' | ' | ' |
Provision for product returns | 2,112,000 | 2,167,000 | ' |
Severance pay | ' | ' | ' |
Employees over 50 years of age maximum annual contribution per year | 23,000 | 22,000 | 22,000 |
Expense for matching contributions | 3,985,000 | 3,989,000 | 3,129,000 |
Severance pay expense | 10,862,000 | 11,164,000 | 12,090,000 |
Employee contribution amount, max per year | 17,500 | 16,500 | 16,500 |
Employee contribute percentage, max | 6.00% | ' | ' |
Employer percent of match | 50.00% | ' | ' |
Basic and diluted net earnings per share | ' | ' | ' |
Weighted average number of shares related to outstanding anti-dilutive options and restricted shares | 586,367 | 785,821 | 1,096,069 |
Advertising expenses | ' | ' | ' |
Advertising expenses | $9,771,000 | $10,214,000 | $7,887,000 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Computers and Peripheral Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment depreciation rate | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment depreciation rate | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment depreciation rate | 15.00% |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Intangible Assets Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Core Technology [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Other intangible assets amortization rate | 17.00% |
Customer Relationships and Distribution Network [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Other intangible assets amortization rate | 17.00% |
Capitalized Software Development Costs [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Other intangible assets amortization rate | 33.00% |
Trademarks [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Other intangible assets amortization rate | 33.00% |
Covenant Not to Compete [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Other intangible assets amortization rate | 42.00% |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | $12,194 | ' | ' |
Other comprehensive income (loss) before reclassifications | 2,388 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -2,181 | ' | ' |
Net current-period other comprehensive income (loss) | 207 | 14,089 | -12,471 |
Ending Balance | 12,401 | 12,194 | ' |
Unrealized gains (losses) on marketable securities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 3,443 | ' | ' |
Other comprehensive income (loss) before reclassifications | -3,503 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' |
Net current-period other comprehensive income (loss) | -3,503 | ' | ' |
Ending Balance | -60 | ' | ' |
Unrealized gains (losses) on cash flow hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 2,789 | ' | ' |
Other comprehensive income (loss) before reclassifications | 985 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -2,181 | ' | ' |
Net current-period other comprehensive income (loss) | -1,196 | ' | ' |
Ending Balance | 1,593 | ' | ' |
Foreign currency translation adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 5,962 | ' | ' |
Other comprehensive income (loss) before reclassifications | 4,906 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' |
Net current-period other comprehensive income (loss) | 4,906 | ' | ' |
Ending Balance | $10,868 | ' | ' |
SHORTTERM_AND_LONGTERM_INVESTM2
SHORT-TERM AND LONG-TERM INVESTMENTS (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
SHORT-TERM AND LONG-TERM INVESTMENTS [Abstract] | ' | ' |
Available-for-sale Securities | $285,928 | $314,945 |
Short-term bank deposits | $37,680 | $31,164 |
SHORTTERM_AND_LONGTERM_INVESTM3
SHORT-TERM AND LONG-TERM INVESTMENTS (Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $285,762 | $310,758 |
Gross unrealized gains | 2,610 | 4,307 |
Gross unrealized losses | 2,444 | 120 |
Estimated fair value, total | 285,928 | 314,945 |
Corporate Debentures [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 272,431 | 190,826 |
Gross unrealized gains | 2,545 | 3,787 |
Gross unrealized losses | 1,797 | 60 |
Estimated fair value, total | 273,179 | 194,553 |
U.S. Treasuries [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 13,331 | 13,227 |
Gross unrealized gains | 65 | 276 |
Gross unrealized losses | 647 | 60 |
Estimated fair value, total | 12,749 | 13,443 |
U.S. Government Agency Debentures [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | ' | 375 |
Gross unrealized gains | ' | ' |
Gross unrealized losses | ' | ' |
Estimated fair value, total | ' | 375 |
Israeli Treasury Bills [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | ' | 106,330 |
Gross unrealized gains | ' | 244 |
Gross unrealized losses | ' | ' |
Estimated fair value, total | ' | $106,574 |
SHORTTERM_AND_LONGTERM_INVESTM4
SHORT-TERM AND LONG-TERM INVESTMENTS (Scheduled Maturities of Available-For-Sale Marketable Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
SHORT-TERM AND LONG-TERM INVESTMENTS [Abstract] | ' | ' |
Amortized cost, due within one year | $44,840 | ' |
Amortized cost, due after one year through five years | 226,966 | ' |
Amortized cost, due after six years through ten years | 13,956 | ' |
Estimated fair value, due within one year | 45,146 | ' |
Estimated fair value, due after one year through five years | 227,714 | ' |
Estimated fair value, due after six years through ten years | 13,068 | ' |
Amortized cost, total | 285,762 | ' |
Estimated fair value, total | $285,928 | $314,945 |
SHORTTERM_AND_LONGTERM_INVESTM5
SHORT-TERM AND LONG-TERM INVESTMENTS (Summary of Continuous Unrealized Losses and Fair Values) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Unrealized losses, less than 12 months | ($1,718) | ($118) |
Unrealized losses, 12 months or more | -726 | -2 |
Unrealized losses, total | -2,444 | -120 |
Fair Value, Less than 12 months | 119,043 | 27,175 |
Fair Value,12 months or more | 14,132 | 349 |
Fair Value, Total | 133,175 | 27,524 |
Corporate Debentures [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Unrealized losses, less than 12 months | -1,718 | -58 |
Unrealized losses, 12 months or more | -79 | -2 |
Unrealized losses, total | -1,797 | -60 |
Fair Value, Less than 12 months | 119,043 | 18,438 |
Fair Value,12 months or more | 7,767 | 349 |
Fair Value, Total | 126,810 | 18,787 |
U.S. Treasuries [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Unrealized losses, less than 12 months | ' | -60 |
Unrealized losses, 12 months or more | -647 | ' |
Unrealized losses, total | -647 | -60 |
Fair Value, Less than 12 months | ' | 6,954 |
Fair Value,12 months or more | 6,365 | ' |
Fair Value, Total | 6,365 | 6,954 |
Treasury Bills [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Unrealized losses, less than 12 months | ' | ' |
Unrealized losses, 12 months or more | ' | ' |
Unrealized losses, total | ' | ' |
Fair Value, Less than 12 months | ' | 1,783 |
Fair Value,12 months or more | ' | ' |
Fair Value, Total | ' | $1,783 |
OTHER_RECEIVABLES_AND_PREPAID_2
OTHER RECEIVABLES AND PREPAID EXPENSES (Schedule of Other Receivables and Prepaid Expenses) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
OTHER RECEIVABLES AND PREPAID EXPENSES [Abstract] | ' | ' |
Government authorities | $19,367 | $20,184 |
Interest receivable | 3,630 | 4,019 |
Prepaid expenses | 11,919 | 8,575 |
Other | 4,933 | 4,848 |
Total other accounts receivable and prepaid expenses | $39,849 | $37,626 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ' | ' |
Raw materials | $3,677 | $3,330 |
Work-in-progress | 2,357 | 3,838 |
Finished goods | 7,414 | 6,729 |
Total Inventories | $13,448 | $13,897 |
OTHER_LONGTERM_ASSETS_Schedule
OTHER LONG-TERM ASSETS (Schedule of Other Long-Term Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
OTHER LONG-TERM ASSETS [Abstract] | ' | ' |
Severance pay fund | $24,543 | $22,147 |
Long-term deposits | 1,940 | 1,914 |
Deferred tax assets | 3,875 | 4,615 |
Other investment | 2,895 | ' |
Other long-term assets | $33,253 | $28,676 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | $149,913 | $144,293 | ' |
Accumulated depreciation | 105,570 | 103,015 | ' |
Depreciated cost | 44,343 | 41,278 | ' |
Depreciation expense | 17,863 | 16,280 | 12,959 |
Computers and Peripheral Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 111,394 | 104,883 | ' |
Accumulated depreciation | 84,737 | 80,179 | ' |
Office Furniture and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 12,979 | 16,149 | ' |
Accumulated depreciation | 9,647 | 12,823 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment gross | 25,540 | 23,261 | ' |
Accumulated depreciation | $11,186 | $10,013 | ' |
OTHER_INTANGIBLE_ASSETS_NET_Na
OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | $30,571 | $32,590 | $23,677 |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | $73,492 | $79,196 | $52,574 |
OTHER_INTANGIBLE_ASSETS_NET_Sc
OTHER INTANGIBLE ASSETS, NET (Schedule of Definite-Lived Other Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | $536,599 | $521,672 |
Accumulated amortization | 366,474 | 292,926 |
Other intangible assets, net | 170,125 | 228,746 |
Core Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | 304,230 | 290,217 |
Accumulated amortization | 192,266 | 152,331 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | 197,258 | 193,868 |
Accumulated amortization | 144,818 | 114,384 |
Capitalized Software Development Costs [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | 10,171 | 12,518 |
Accumulated amortization | 7,745 | 10,016 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | 14,644 | 14,487 |
Accumulated amortization | 13,074 | 11,111 |
Covenant Not to Compete [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original amounts | 10,296 | 10,582 |
Accumulated amortization | $8,571 | $5,084 |
OTHER_INTANGIBLE_ASSETS_NET_Sc1
OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
OTHER INTANGIBLE ASSETS, NET [Abstract] | ' |
2014 | $53,673 |
2015 | 43,175 |
2016 | 32,997 |
2017 | 26,486 |
2018 and thereafter | 11,368 |
Other intangible assets, net (excluding amortization of capitalized software costs) | $167,699 |
GOODWILL_Schedule_of_Goodwill_
GOODWILL (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning balance, as of January 1 | $695,027 | $609,187 |
Goodwill from acquisitions | 8,598 | 82,402 |
Functional currency translation adjustments | 4,314 | 3,438 |
Ending balance, as of December 31 | 707,939 | 695,027 |
Customer Interactions Solutions [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance, as of January 1 | 368,303 | 290,590 |
Goodwill from acquisitions | 8,598 | 75,599 |
Functional currency translation adjustments | 3,299 | 2,114 |
Ending balance, as of December 31 | 380,200 | 368,303 |
Security Solutions [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance, as of January 1 | 58,454 | 57,978 |
Goodwill from acquisitions | ' | ' |
Functional currency translation adjustments | 464 | 476 |
Ending balance, as of December 31 | 58,918 | 58,454 |
Financial Crime and Compliance Solutions [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance, as of January 1 | 268,270 | 260,619 |
Goodwill from acquisitions | ' | 6,803 |
Functional currency translation adjustments | 551 | 848 |
Ending balance, as of December 31 | $268,821 | $268,270 |
ACCRUED_EXPENSES_AND_OTHER_LIA2
ACCRUED EXPENSES AND OTHER LIABILITIES (Components of Accrued Expenses and Other Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ' | ' |
Employees and payroll accruals | $71,058 | $66,732 |
Accrued expenses | 80,345 | 83,637 |
Government authorities | 57,916 | 59,077 |
Other | 4,374 | 3,006 |
Accrued expenses and other liabilities | $213,693 | $212,452 |
DERIVATIVE_INSTRUMENTS_Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Notional amount | $69,700 | $195,458 |
Fair value | 1,722 | -1,312 |
Option Contracts To Hedge Payroll Expenses [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | 69,700 | 88,050 |
Fair value | 1,722 | 2,795 |
Forward Contracts To Hedge Israeli Treasury Bills [Member] | Fair Value Inputs Level2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | ' | 107,408 |
Fair value | ' | ($4,107) |
DERIVATIVE_INSTRUMENTS_Effect_
DERIVATIVE INSTRUMENTS (Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI on derivative (effective portion) | ($985) | ($13,845) | $13,466 |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | -2,181 | -7,884 | 7,971 |
Foreign Exchange Option Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | -5,296 | -2,773 | 2,929 |
Foreign Exchange Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | 4,311 | -11,072 | 10,537 |
Cost Of Revenues And Operating Expenses [Member] | Foreign Exchange Option Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | -6,491 | 2,667 | -1,930 |
Financial Income [Member] | Foreign Exchange Forward Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion) | $4,310 | ($10,551) | $9,901 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 20, 2014 | Mar. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2006 | Jul. 15, 2010 | Jul. 15, 2010 | Nov. 24, 2013 | Nov. 24, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | ILS | USD ($) | USD ($) | USD ($) | Calyon [Member] | Tal-Yam [Member] | Tal-Yam [Member] | Jamshy [Member] | Jamshy [Member] | Agreements With Suppliers To Purchase Goods [Member] | Agreements With Suppliers To Purchase Licenses And Hosting Services [Member] | |
USD ($) | USD ($) | ILS | USD ($) | ILS | USD ($) | USD ($) | ||||||
Lease commitments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expenses | ' | ' | $18,219 | $17,373 | $18,607 | ' | ' | ' | ' | ' | ' | ' |
Minimum payment under operating leases upon cancellation | ' | ' | 881 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease expense related to motor vehicles lease contracts | ' | ' | 4,806 | 4,798 | 5,707 | ' | ' | ' | ' | ' | ' | ' |
Other commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cancelable obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,363 | 12,938 |
Legal proceedigs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment sought | ' | ' | ' | ' | ' | 648 | ' | ' | ' | ' | ' | ' |
Repayment sought including accrued interest | ' | ' | ' | ' | ' | 740 | ' | ' | ' | ' | ' | ' |
Damages claimed for breach of contract | $390 | 1,400 | ' | ' | ' | ' | $288 | 1,000 | $130 | 450 | ' | ' |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' |
2014 | $16,294 |
2015 | 14,767 |
2016 | 12,781 |
2017 | 11,610 |
2018 | 9,607 |
2019 and thereafter | 43,278 |
Operating leases, future minimum payments | $108,337 |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 25.00% | 25.00% | 24.00% |
Effective tax rate | ' | 33.90% | -26.00% | 17.80% |
Income tax expense | $19,200 | $28,405 | ($13,994) | $12,386 |
Income taxes paid | 32,000 | 43,862 | 10,711 | 17,560 |
Tax loss carry-forwards | ' | 118,500 | ' | ' |
Tax loss carry-forwards that have no expiration date | ' | 85,000 | ' | ' |
Accrued interest related to income tax uncertainties | ' | 3,864 | ' | ' |
UNITED STATES [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 37.00% | ' | ' |
UNITED KINGDOM [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 23.00% | ' | ' |
Non-Israeli Subsidiaries [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Undistributed earnings | ' | 203,000 | ' | ' |
Unrecognized deferred tax liability | ' | $38,600 | ' | ' |
Encouragement of Industry [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Number of annual installments for dedcution of public offerng expenses | ' | 3 | ' | ' |
Amortization period of purchased know-how and patents | ' | '8 years | ' | ' |
2012 [Member] | The Amendment [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 15.00% | ' | ' |
2013 [Member] | The Amendment [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 12.50% | ' | ' |
2014 And Thereafter [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 26.50% | ' | ' |
2014 And Thereafter [Member] | The Amendment [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 16.00% | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Operating loss carry-forwards expiration date | ' | 31-Dec-32 | ' | ' |
Maximum [Member] | Temporary Order from November 2012 [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Effective tax rate | ' | 17.50% | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Operating loss carry-forwards expiration date | ' | 31-Dec-14 | ' | ' |
Minimum [Member] | Approved and Privileged Enterprise Programs [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Tax rate | ' | 10.00% | ' | ' |
Minimum [Member] | Temporary Order from November 2012 [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Effective tax rate | ' | 6.00% | ' | ' |
TAXES_ON_INCOME_Schedule_of_De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating losses carryforward | $25,683 | $27,606 |
Share based payments | 6,437 | 7,655 |
Reserves, allowances and other | 14,618 | 9,727 |
Deferred tax assets before valuation allowance | 46,738 | 44,988 |
Valuation allowance | -12,253 | -14,667 |
Deferred tax assets | 34,485 | 30,321 |
Deferred tax liabilities: | ' | ' |
Acquired intangibles | -53,049 | -68,520 |
Deferred tax liabilities, net | -18,564 | -38,199 |
Current deferred tax assets | 15,625 | 15,564 |
Long-term deferred tax assets | 3,875 | 4,615 |
Current deferred tax liabilities | -223 | -37 |
Long-term deferred tax liabilities | -37,841 | -58,341 |
Exercise of employee stock options | $7,873 | $9,600 |
TAXES_ON_INCOME_Schedule_of_Ef
TAXES ON INCOME (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Taxes on Income [Line Items] | ' | ' | ' | ||
Income before taxes on income, as reported in the consolidated statements of income | $83,680 | $53,900 | $69,649 | ||
Statutory tax rate in Israel | 25.00% | 25.00% | 24.00% | ||
Approved and Privileged Enterprise benefits | 8.40% | [1] | -11.60% | [1] | -12.80% |
Changes in valuation allowance | -0.90% | -7.00% | -0.50% | ||
Earnings taxed under foreign law | -9.90% | -17.40% | -0.40% | ||
Tax Settlements and other adjustments of prior year provisions | 9.90% | -17.30% | 7.10% | ||
Other | 1.40% | 2.30% | 0.40% | ||
Effective tax rate | 33.90% | -26.00% | 17.80% | ||
Basic | $0.92 | $1.11 | $0.91 | ||
Diluted | $0.89 | $1.09 | $0.89 | ||
Approved And Privileged Enterprise [Member] | ' | ' | ' | ||
Taxes on Income [Line Items] | ' | ' | ' | ||
Basic | ($0.12) | $0.10 | $0.10 | ||
Diluted | ($0.11) | $0.10 | $0.10 | ||
[1] | Net earnings per ordinary share - amounts of the benefit resulting from the "Approved and Privileged Enterprise" status |
TAXES_ON_INCOME_Schedule_of_In
TAXES ON INCOME (Schedule of Income before Income Tax, Domestic And Foreign) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes on Income [Line Items] | ' | ' | ' |
Income before taxes on income | $83,680 | $53,900 | $69,649 |
Domestic [Member] | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' |
Income before taxes on income | 68,517 | 67,559 | 46,858 |
Foreign [Member] | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' |
Income before taxes on income | $15,163 | ($13,659) | $22,791 |
TAXES_ON_INCOME_Schedule_of_Ta
TAXES ON INCOME (Schedule of Taxes on Income) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Current | ' | $45,690 | $10,250 | $21,136 |
Deferred | ' | -17,285 | -24,244 | -8,750 |
Domestic | ' | 30,900 | 16,856 | 5,764 |
Foreign | ' | -2,495 | -30,850 | 6,622 |
Taxes on income | 19,200 | 28,405 | -13,994 | 12,386 |
Domestic [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Current | ' | 32,020 | 17,933 | 8,097 |
Deferred | ' | -1,120 | -1,077 | -2,333 |
Taxes on income | ' | 30,900 | 16,856 | 5,764 |
Foreign [Member] | ' | ' | ' | ' |
Taxes on Income [Line Items] | ' | ' | ' | ' |
Current | ' | 13,670 | -7,749 | 13,039 |
Deferred | ' | -16,165 | -23,101 | -6,417 |
Taxes on income | ' | ($2,495) | ($30,850) | $6,622 |
TAXES_ON_INCOME_Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | ' | ' |
Uncertain tax positions, beginning of year | $37,965 | $43,435 |
Increases in tax positions for prior years | 4,757 | ' |
Decreases in tax positions for prior years | ' | -3,147 |
Increases in tax positions for current year | 3,563 | 6,046 |
Settlements | -11,864 | -7,125 |
Expiry of the statute of limitations | -1,263 | -1,244 |
Uncertain tax positions, end of year | $33,158 | $37,965 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 04, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2012 | Nov. 02, 2011 | Feb. 15, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Treasury Stock [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Maximum Amount Per Repurchase [Member] | Maximum Amount Per Repurchase [Member] | Maximum Amount Per Repurchase [Member] | Minimum [Member] | Maximum [Member] | 2003 Option Plan [Member] | 2008 Plan [Member] | |||||
Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock options exercisable after one year from grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% |
Percentage of stock options exercisable, quarterly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | 6.25% |
Stock options expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | '6 years |
Stock options vesting period in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '3 years |
Perentage of restricted share units that vest annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% |
Percentage of entity's issued and outstanding share capital used to determine maximum number of shares subject to awards granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% |
Weighted-average grant-date fair value, options granted | ' | ' | ' | ' | ' | $18.24 | $16.09 | $17.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value, options exercised | ' | ' | ' | ' | ' | $24,949 | $18,072 | $19,295 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to non-vested stock options and restricted stock awards | ' | 48,890 | ' | 48,890 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to non-vested stock options and restricted stock awards, expected to be recognized, years | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of employee earnings permitted to purchase oridnary shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 10.00% | ' | ' |
Shares purchased by employees | ' | ' | ' | ' | ' | ' | ' | ' | 23,478 | 17,753 | 16,582 | ' | ' | ' | ' | ' | ' | ' |
Average price of shares purchased by employees | ' | ' | ' | ' | ' | ' | ' | ' | $33.36 | $33.73 | $33.88 | ' | ' | ' | ' | ' | ' | ' |
Price of options, as a percent of fair market value of ordinary shares | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | ' | ' | $300 | ' | ' | ' | ' | ' | ' | $100 | $100 | $100 | ' | ' | ' | ' |
Cash dividend paid, per share | $0.16 | $0.16 | $0.48 | $0.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial annual dividend, per share | ' | ' | ' | $0.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Schedule_o
SHAREHOLDERS' EQUITY (Schedule of Option Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility, minimum | 27.50% | 27.80% | 34.30% |
Expected volatility, maximum | 30.00% | 34.80% | 43.80% |
Weighted average volatility | 28.80% | 29.40% | 43.02% |
Risk free interest rate, minimum | 0.40% | 0.40% | 0.20% |
Risk free interest rate, maximum | 0.90% | 0.50% | 1.30% |
Expected dividend | ' | 0.00% | 0.00% |
Expected term (in years) | ' | '3 years 8 months 12 days | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend | 0.00% | ' | ' |
Expected term (in years) | '3 years 3 months 18 days | ' | '2 years 6 months |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend | 1.70% | ' | ' |
Expected term (in years) | '3 years 4 months 24 days | ' | '3 years 8 months 12 days |
SHAREHOLDERS_EQUITY_Schedule_o1
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Stock Option [Member] | ' | ' |
Number of options | ' | ' |
Outstanding at January 1, 2013 | 4,538,013 | ' |
Granted | 1,505,067 | ' |
Exercised | -1,666,617 | ' |
Forfeited | -295,161 | ' |
Cancelled | -14,729 | ' |
Outstanding at December 31, 2013 | 4,066,573 | 4,538,013 |
Exercisable | 1,273,420 | ' |
Weighted average exercise price | ' | ' |
Outstanding at January 1, 2013 | $21.53 | ' |
Outstanding at December 31, 2013 | $22.37 | $21.53 |
Weighted average exercise price of options exercisable | $23.10 | ' |
Weighted-average remaining contractual term (in years) | ' | ' |
Outstanding at December 31 | '4 years 5 months 16 days | '4 years 3 months 22 days |
Exercisable | '3 years 1 month 13 days | ' |
Aggregate intrinsic value | ' | ' |
Outstanding at January 1, 2013 | $54,231 | ' |
Outstanding at December 31, 2013 | 75,598 | 54,231 |
Exercisable | $22,742 | ' |
SHAREHOLDERS_EQUITY_Schedule_o2
SHAREHOLDERS' EQUITY (Schedule of Options Outstanding by Exercise Price Range) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 4,066,573 |
Weighted Average Remaining Contractual Life (years) | '4 years 5 months 16 days |
Weighted average exercise price | $22.37 |
Options exercisable as of December 31, 2013 | 1,273,420 |
Weighted average exercise price of options exercisable | $23.10 |
0.21-0.29[Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 1,235,151 |
Weighted Average Remaining Contractual Life (years) | '4 years 10 months 28 days |
Weighted average exercise price | $0.29 |
Options exercisable as of December 31, 2013 | 230,731 |
Weighted average exercise price of options exercisable | $0.29 |
Range of exercise price, lower | $0.21 |
Range of exercise price, upper | $0.29 |
0.69 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 11,925 |
Weighted Average Remaining Contractual Life (years) | '5 years 11 months 19 days |
Weighted average exercise price | $0.69 |
Options exercisable as of December 31, 2013 | 9,123 |
Weighted average exercise price of options exercisable | $0.69 |
Range of exercise price, lower | $0.69 |
Range of exercise price, upper | $0.69 |
2.41-2.89 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 1,702 |
Weighted Average Remaining Contractual Life (years) | '1 year 2 months 12 days |
Weighted average exercise price | $2.68 |
Options exercisable as of December 31, 2013 | 1,702 |
Weighted average exercise price of options exercisable | $2.68 |
Range of exercise price, lower | $2.41 |
Range of exercise price, upper | $2.89 |
5.52-6.87 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 12,291 |
Weighted Average Remaining Contractual Life (years) | '2 years 6 months 11 days |
Weighted average exercise price | $6.29 |
Options exercisable as of December 31, 2013 | 12,291 |
Weighted average exercise price of options exercisable | $6.29 |
Range of exercise price, lower | $5.52 |
Range of exercise price, upper | $6.87 |
10.92-14.60 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 34,865 |
Weighted Average Remaining Contractual Life (years) | '4 years 4 months 13 days |
Weighted average exercise price | $12.97 |
Options exercisable as of December 31, 2013 | 33,465 |
Weighted average exercise price of options exercisable | $13 |
Range of exercise price, lower | $10.92 |
Range of exercise price, upper | $14.60 |
17.24-25.01 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 146,541 |
Weighted Average Remaining Contractual Life (years) | '2 years 6 months 4 days |
Weighted average exercise price | $21.05 |
Options exercisable as of December 31, 2013 | 130,330 |
Weighted average exercise price of options exercisable | $21.47 |
Range of exercise price, lower | $17.24 |
Range of exercise price, upper | $25.01 |
26.37-39.09 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options outstanding as of December 31, 2013 | 2,624,098 |
Weighted Average Remaining Contractual Life (years) | '4 years 4 months 13 days |
Weighted average exercise price | $33.15 |
Options exercisable as of December 31, 2013 | 855,778 |
Weighted average exercise price of options exercisable | $30.42 |
Range of exercise price, lower | $26.37 |
Range of exercise price, upper | $39.09 |
SHAREHOLDERS_EQUITY_Summary_of
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Units Activity) (Details) (RSU and RSA [Member]) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
USD ($) | ILS | ILS | ||||
Number of RSU and RSA | ' | ' | ' | |||
Outstanding at January 1, 2013 | ' | 783,103 | 700,978 | |||
Issued | 412,058 | ' | ' | |||
Vested | -239,031 | ' | ' | |||
Forfeited | -90,902 | ' | ' | |||
Outstanding at December 31, 2013 | ' | 783,103 | 700,978 | |||
Weighted Average Exercise Price | ' | ' | ' | |||
Outstanding at January 1, 2013 | ' | 1 | [1] | 1 | [1] | |
Issued | $1 | [1] | ' | ' | ||
Vested | $1 | [1] | ' | ' | ||
Forfeited | $1 | [1] | ' | ' | ||
Outstanding at December 31, 2013 | ' | 1 | [1] | 1 | [1] | |
[1] | Weighted average exercise price is NIS 1 (par value) which represents approximately $ 0.29. |
SHAREHOLDERS_EQUITY_Schedule_o3
SHAREHOLDERS' EQUITY (Schedule of Equity-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expenses | $26,307 | $23,612 | $21,159 |
Cost of Revenues [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expenses | 4,741 | 4,156 | 2,922 |
Research And Development, Net [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expenses | 3,080 | 2,840 | 2,966 |
Selling And Marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expenses | 10,037 | 7,981 | 7,490 |
General And Administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expenses | $8,449 | $8,635 | $7,781 |
REPORTABLE_SEGMENTS_AND_GEOGRA2
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION [Abstract] | ' |
Number of operating segments | 3 |
REPORTABLE_SEGMENTS_AND_GEOGRA3
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Financial Information of The Company's Reportable Segments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $949,284 | $879,012 | $793,831 |
Operating income (loss) | 79,753 | 45,632 | 59,028 |
Customer Interactions Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 592,299 | 565,993 | 477,572 |
Operating income (loss) | 115,525 | 112,027 | 123,237 |
Security Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 193,937 | 185,916 | 191,852 |
Operating income (loss) | 25,774 | 27,645 | 27,164 |
Financial Crime and Compliance Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 163,048 | 127,103 | 124,407 |
Operating income (loss) | 29,449 | 3,200 | -6,662 |
Non-Allocated [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | ' | ' | ' |
Operating income (loss) | ($90,995) | ($97,240) | ($84,711) |
REPORTABLE_SEGMENTS_AND_GEOGRA4
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $44,343 | $41,278 |
Customer Interactions Solutions [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 25,235 | 24,247 |
Security Solutions [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 6,360 | 5,941 |
Financial Crime and Compliance Solutions [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 7,629 | 7,157 |
Non-Allocated [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $5,119 | $3,933 |
REPORTABLE_SEGMENTS_AND_GEOGRA5
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Total Revenues from External Customers by Geographical Areas) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $949,284 | $879,012 | $793,831 | |||
Americas, principally the US [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 596,663 | 549,575 | 499,162 | |||
EMEA [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 215,560 | [1] | 200,624 | [1] | 187,650 | [1] |
Israel [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 8,344 | 9,784 | 8,990 | |||
Asia Pacific [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $128,717 | $119,029 | $98,029 | |||
[1] | Includes Europe, the Middle East (excluding Israel) and Africa. |
REPORTABLE_SEGMENTS_AND_GEOGRA6
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets by Geographical Areas) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Property and equipment, net | $44,343 | $41,278 | ||
Americas, principally the US [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Property and equipment, net | 10,011 | 8,583 | ||
EMEA [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Property and equipment, net | 5,279 | [1] | 5,042 | [1] |
Israel [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Property and equipment, net | 27,709 | 25,942 | ||
Asia Pacific [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Property and equipment, net | $1,344 | $1,711 | ||
[1] | Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED_STATEMENTS_OF_INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ' | ' |
Restructuring charges | $527 | $1,884 | ' |
SELECTED_STATEMENTS_OF_INCOME_3
SELECTED STATEMENTS OF INCOME DATA (Schedule of Research and Development Costs, Net) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ' | ' |
Total costs | $140,935 | $126,584 | $113,671 |
Less - grants and participations | -3,334 | -4,087 | -3,394 |
Less - capitalization of software development costs | -1,038 | -1,110 | -1,150 |
Research and development, net | $136,563 | $121,387 | $109,127 |
SELECTED_STATEMENTS_OF_INCOME_4
SELECTED STATEMENTS OF INCOME DATA (Schedule of Financial Income and Other, Net) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ' | ' |
Interest and amortization/accretion of premium/discount on marketable securities | $4,802 | $4,230 | $8,357 |
Gain on forward contracts | ' | ' | 9,902 |
Realized gain on marketable securities | ' | 2,095 | 1,124 |
Interest | 1,505 | 2,616 | 3,154 |
Foreign currency translation | 2,664 | 1,717 | 1,725 |
Financial income, net | 8,971 | 10,658 | 24,262 |
Realized loss on marketable securities | ' | -495 | -333 |
Interest | -182 | -103 | -165 |
Foreign currency translation | -3,486 | -2,368 | -11,872 |
Other | -1,266 | -954 | -1,109 |
Financial expenses, net | -4,934 | -3,920 | -13,479 |
Other income (expenses), net | -110 | 1,530 | -162 |
Financial income and other, net | $3,927 | $8,268 | $10,621 |
SELECTED_STATEMENTS_OF_INCOME_5
SELECTED STATEMENTS OF INCOME DATA (Schedule of Net Earnings Per Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ' | ' |
Numerator - Net income available to ordinary shareholders | $55,275 | $67,894 | $57,263 |
Denominator for basic net earnings per share - Weighted average number of shares | 60,388 | 60,905 | 62,924 |
Add-employee stock options and RSU | 1,442 | 1,356 | 1,317 |
Denominator for diluted net earnings per share - adjusted weighted average shares | 61,830 | 62,261 | 64,241 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 04, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Feb. 04, 2014 | |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | ' | 100,000 |
Dividend paid, per share | $0.16 | $0.16 | $0.48 | $0.48 | ' |