Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | NICE Ltd. |
Entity Central Index Key | 0001003935 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer | Yes |
Is Entity a Voluntary Filer | No |
Is Entity's Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 61,769,554 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 242,099 | $ 328,302 |
Short-term investments | 243,729 | 63,951 |
Trade receivables (net of allowance for doubtful accounts of $8,464 and $9,554 at December 31, 2018 and 2017, respectively) | 287,963 | 230,729 |
Prepaid expenses and other current assets | 87,450 | 70,074 |
Total current assets | 861,241 | 693,056 |
LONG-TERM ASSETS: | ||
Long-term investments | 244,998 | 132,820 |
Other long-term assets | 74,042 | 19,496 |
Property and equipment, net | 140,338 | 118,275 |
Deferred tax assets | 12,309 | 11,850 |
Other intangible assets, net | 508,232 | 551,347 |
Goodwill | 1,366,206 | 1,318,242 |
Total long-term assets | 2,346,125 | 2,152,030 |
Total assets | 3,207,366 | 2,845,086 |
CURRENT LIABILITIES: | ||
Trade payables | 29,617 | 29,438 |
Deferred revenues and advances from customers | 221,387 | 184,564 |
Accrued expenses and other liabilities | 373,908 | 309,350 |
Total current liabilities | 624,912 | 523,352 |
LONG-TERM LIABILITIES: | ||
Deferred revenues and advances from customers | 35,112 | 37,550 |
Accrued severance pay | 15,986 | 17,250 |
Deferred tax liabilities | 44,140 | 57,796 |
Long-term debt | 455,985 | 447,642 |
Other long-term liabilities | 14,618 | 11,935 |
Total long-term liabilities | 565,841 | 572,173 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital-Ordinary shares of NIS 1 par value: Authorized: 125,000,000 shares at December 31, 2018 and 2017; Issued: 74,367,450 and 73,455,167 shares at December 31, 2018 and 2017, respectively; Outstanding: 61,769,554 and 60,925,954 shares at December 31, 2018 and 2017, respectively | 18,849 | 18,595 |
Additional paid-in capital | 1,499,986 | 1,420,813 |
Treasury shares at cost - 12,597,896 and 12,529,213 Ordinary shares at December 31, 2018 and 2017, respectively | (527,417) | (507,705) |
Accumulated other comprehensive loss | (46,616) | (32,914) |
Retained earnings | 1,071,811 | 850,772 |
Total shareholders' equity | 2,016,613 | 1,749,561 |
Total liabilities and shareholders' equity | $ 3,207,366 | $ 2,845,086 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ | $ 8,464 | $ 9,554 |
Ordinary shares, authorized | 125,000,000 | 125,000,000 |
Ordinary shares, issued | 74,367,450 | 73,455,167 |
Ordinary shares, outstanding | 61,769,554 | 60,925,954 |
Treasury shares | 12,597,896 | 12,529,213 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 1,444,519 | $ 1,332,152 | $ 1,015,542 |
Cost of revenues: | |||
Total cost of revenues | 496,815 | 468,673 | 337,733 |
Gross profit | 947,704 | 863,479 | 677,809 |
Operating expenses: | |||
Research and development, net | 183,830 | 181,107 | 141,528 |
Selling and marketing | 370,659 | 361,328 | 268,349 |
General and administrative | 153,323 | 129,071 | 116,569 |
Amortization of acquired intangibles | 42,276 | 41,902 | 17,187 |
Total operating expenses | 750,088 | 713,408 | 543,633 |
Operating income | 197,616 | 150,071 | 134,176 |
Financial expenses (income) and other, net | 10,901 | 20,411 | (10,305) |
Income before taxes on income | 186,715 | 129,660 | 144,481 |
Taxes on income (tax benefit) | 27,377 | (13,631) | 21,412 |
Net income from continuing operations | 159,338 | 143,291 | 123,069 |
Discontinued operations: | |||
Loss from operations | (8,235) | ||
Tax benefit | (2,086) | ||
Loss on discontinued operations | (6,149) | ||
Net income | $ 159,338 | $ 143,291 | $ 116,920 |
Basic earnings per share from continuing operations | $ 2.60 | $ 2.37 | $ 2.06 |
Basic earnings per share from discontinued operations | (0.10) | ||
Basic earnings per share | 2.60 | 2.37 | 1.96 |
Diluted earnings per share from continuing operations | 2.52 | 2.31 | 2.02 |
Diluted earnings per share from discontinued operations | (0.10) | ||
Diluted earnings per share | $ 2.52 | $ 2.31 | $ 1.92 |
Weighted average number of shares used in computing: | |||
Basic earnings per share | 61,387 | 60,444 | 59,667 |
Diluted earnings per share | 63,309 | 62,119 | 61,035 |
Product [Member] | |||
Revenues: | |||
Total revenues | $ 263,805 | $ 318,946 | $ 306,252 |
Cost of revenues: | |||
Total cost of revenues | 31,065 | 51,065 | 53,032 |
Service [Member] | |||
Revenues: | |||
Total revenues | 719,531 | 652,040 | 623,783 |
Cost of revenues: | |||
Total cost of revenues | 229,671 | 225,020 | 250,022 |
Cloud [Member] | |||
Revenues: | |||
Total revenues | 461,183 | 361,166 | 85,507 |
Cost of revenues: | |||
Total cost of revenues | $ 236,079 | $ 192,588 | $ 34,679 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 159,338 | $ 143,291 | $ 116,920 |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation adjustment | (9,261) | 13,529 | (24,801) |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | (592) | (854) | 5,102 |
Less - reclassification adjustment for net gains realized and included in net income | (3,388) | ||
Net change (net of tax effect of $351, $(113) and $113) | (592) | (854) | 1,714 |
Cash flow hedges: | |||
Change in unrealized gains (losses) | (8,630) | 6,821 | 600 |
Less - reclassification adjustment for net gains (losses) realized and included in net income | 4,781 | (5,586) | (132) |
Net change (net of tax effect of $370, $0 and 0) | (3,849) | 1,235 | 468 |
Total other comprehensive income (loss) | (13,702) | 13,910 | (22,619) |
Comprehensive income | $ 145,636 | $ 157,201 | $ 94,301 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect available-for-sale investments | $ 351 | $ (113) | $ 113 |
Tax effect cash flow hedges | $ 370 | $ 0 | $ 0 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Share capital [Member] | Additional paid-in capital [Member] | Treasury shares [Member] | Accumulated other comprehensive loss [Member] | Retained earnings [Member] | Total |
Balance at Dec. 31, 2015 | $ 17,977 | $ 1,234,206 | $ (445,021) | $ (24,205) | $ 632,192 | $ 1,415,149 |
Exercise of share options | 303 | 23,321 | 23,624 | |||
Equity awards assumed for acquisitions | 11,675 | 11,675 | ||||
Stock-based compensation | 40,547 | 40,547 | ||||
Excess tax benefit from share-based payment arrangements | 7,868 | 7,868 | ||||
Issuance of treasury shares under share-based compensation plan | (78) | 78 | ||||
Treasury shares purchased | (43,630) | (43,630) | ||||
Other comprehensive income loss | (22,619) | (22,619) | ||||
Dividends paid | (38,202) | (38,202) | ||||
Net income | 116,920 | 116,920 | ||||
Balance at Dec. 31, 2016 | 18,280 | 1,317,539 | (488,573) | (46,824) | 710,910 | 1,511,332 |
Effect of adopting ASU 2016-09: Improvements to Employee Share-Based Payment Accounting | 1,908 | 6,208 | 8,116 | |||
Exercise of share options | 315 | 17,133 | 17,448 | |||
Stock-based compensation | 56,980 | 56,980 | ||||
Issuance of treasury shares under share-based compensation plan | (3,642) | 5,296 | 1,654 | |||
Equity components of exchangeable notes | 30,895 | 30,895 | ||||
Treasury shares purchased | (24,428) | (24,428) | ||||
Other comprehensive income loss | 13,910 | 13,910 | ||||
Dividends paid | (9,637) | (9,637) | ||||
Net income | 143,291 | 143,291 | ||||
Balance at Dec. 31, 2017 | 18,595 | 1,420,813 | (507,705) | (32,914) | 850,772 | 1,749,561 |
Effect of adopting ASU 2014-09: "Revenue from Contracts with Customers (ASC 606)" (see note 2 aa) | 61,701 | 61,701 | ||||
Exercise of share options | 254 | 16,143 | 16,397 | |||
Equity awards assumed for acquisitions | 783 | 783 | ||||
Stock-based compensation | 67,223 | 67,223 | ||||
Issuance of treasury shares under share-based compensation plan | (4,976) | 7,574 | 2,598 | |||
Treasury shares purchased | (27,286) | (27,286) | ||||
Other comprehensive income loss | (13,702) | (13,702) | ||||
Net income | 159,338 | 159,338 | ||||
Balance at Dec. 31, 2018 | $ 18,849 | $ 1,499,986 | $ (527,417) | $ (46,616) | $ 1,071,811 | $ 2,016,613 |
STATEMENTS OF CHANGES IN SHAR_2
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid, per share | $ 0.16 | $ 0.64 | |
Restricted stock units vested | 203,575 | 147,347 | 2,290 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 159,338 | $ 143,291 | $ 116,920 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 157,142 | 156,301 | 77,801 |
Stock-based compensation | 67,223 | 56,980 | 40,547 |
Accrued severance pay, net | 1,020 | (788) | 3 |
Amortization of premium and discount and accrued interest on marketable securities | (598) | 646 | 2,441 |
Deferred taxes, net | (30,172) | (70,805) | (25,905) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (72,583) | 37,735 | (31,784) |
Prepaid expenses and other current assets | (29,852) | (6,839) | 2,078 |
Trade payables | (3,526) | 2,665 | 4,392 |
Accrued expenses and other liabilities | 48,095 | 25,541 | 17,994 |
Deferred revenues | 92,768 | 41,624 | 9,379 |
Long term liabilities | (1,024) | (5,169) | 7,529 |
Loss on disposal of discontinued operations | 9,148 | ||
Realized gain on marketable securities | (3,388) | ||
Amortization of discount on long-term debt | 8,670 | 13,547 | 379 |
Other | 108 | (67) | 678 |
Net cash provided by operating activities | 396,609 | 394,662 | 228,212 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (31,442) | (39,889) | (27,278) |
Purchase of investments | (429,500) | (133,423) | (47,221) |
Proceeds from investments | 137,180 | 64,295 | 449,880 |
Payments for business acquisitions, net of cash acquired | (104,776) | (76,027) | (1,156,249) |
Investments in affiliates and other purchases | (1,500) | ||
Capitalization of internal use software costs | (32,225) | (27,936) | (8,502) |
Repayment from sale of discontinued operations | (9,148) | ||
Net cash used in investing activities | (460,763) | (212,980) | (800,018) |
Cash flows from financing activities: | |||
Proceeds from issuance of shares upon exercise of options | 19,048 | 19,240 | 23,525 |
Purchase of treasury shares | (26,004) | (24,428) | (43,630) |
Dividends paid | (9,637) | (38,202) | |
Capital lease payments | (876) | (137) | (1,087) |
Proceeds from issuance of debt, net of costs | 464,841 | ||
Proceeds from issuance of exchangeable senior notes, net | 260,135 | ||
Repayment of long-term debt | (260,000) | ||
Repayment of short-term debt | (8,436) | ||
Net cash provided by (used in) financing activities | (16,268) | (14,827) | 405,447 |
Effect of exchange rate changes on cash | (5,781) | 4,421 | (2,546) |
Net change in cash and cash equivalents | (86,203) | 171,276 | (168,905) |
Cash and cash equivalents at the beginning of the year | 328,302 | 157,026 | 325,931 |
Cash and cash equivalents at the end of the year | 242,099 | 328,302 | 157,026 |
Supplemental disclosure of cash flows activities: | |||
Income taxes | 42,858 | 33,029 | 28,396 |
Interest | 12,319 | 7,910 | 2,201 |
Non-cash activities: | |||
Decrease (increase) in other receivables with respect to exercise of share options | 53 | 138 | (99) |
Increase in accrued expenses and other liabilities with respect to purchase of treasury shares | $ 1,282 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. General: NICE Ltd. and its subsidiaries (the "Company") is a global enterprise software leader providing solutions that are based on advanced analytics, artificial intelligence and automation. The Company serves two main markets, Customer Engagement and Financial Crime and Compliance. The Company's integrated solutions are based on advanced cloud platforms designed to provide a complete and unified portfolio for improving customer experience as well as preventing financial crime. The Company's core mission is empowering organizations to provide exceptional customer experiences and protect their reputation by preventing financial crime. The Company's software is used by customer service organizations of enterprises of all sizes and verticals, and by compliance and fraud-prevention groups in leading financial institutions. With an integrated cloud platform and advanced analytics solutions, the Company helps organizations understand customer behavior, create smarter personal customer connections, engage their employees, optimize their workforce and improve their processes. Additionally, the Company helps them predict needs and identify risks to create excellent and personalized customer experiences, prevent fraud and ensure compliance. These capabilities are enhanced through the utilization of advanced automation and artificial intelligence capabilities. The Company's most advanced solutions constantly improve by applying machine learning to cross-industry and cross-organizational data and by offering collective insights. b. Acquisitions: 1. Acquisition of Mattersight Corporation: On August 20, 2018, the Company completed the acquisition of Mattersight Corporation ("Mattersight"), a leading provider of cloud based analytics for customer service organizations. The Company acquired Mattersight for total consideration of $105,053. Upon acquisition, Mattersight became a wholly-owned subsidiary of the Company. The acquisition was accounted for as a business combination. This method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The Company recorded core technology, customer relationships, customer backlog and goodwill in amount of $50,852; $7,757; $5,439 and $48,579, respectively. The estimated useful life of the core technology, customer relationships, and customer backlog are 5-7 years, 7 years, and 2-3 years, respectively. Goodwill generated from this business combination is attributed to synergies between the Company's and Mattersight's respective products and services. The goodwill is not deductible for income tax purposes. The preliminary fair value estimates for the assets acquired and liabilities assumed for this acquisition were based upon preliminary calculations and valuations, and the estimates and assumptions for this acquisition are subject to change as the Company obtains additional information during the measurement period (up to one year from the acquisition date). The results of Mattersight's operations have been included in the consolidated financial statements since August 20, 2018. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated statement of income. 2. Acquisitions in 2017: During 2017 the Company acquired certain companies. These acquisitions were not significant individually or in the aggregate. The financial results of the acquired companies are included in the Company's consolidated financial statements from their respective acquisition dates, and the results from each of these companies were not individually material to the Company's consolidated financial statements. In the aggregate, the total purchase price for these acquisitions was approximately $76,870. The Company preliminarily recorded $2,291 of net tangible liabilities and $51,015 of identifiable intangible assets, based on their estimated fair values, and $28,145 of residual goodwill. The fair value of assets acquired and liabilities assumed from those acquisitions were based on a preliminary valuation which was finalized during 2018 as part of the measurement period. See Note 8 regarding changes during 2018. 3. Acquisition of InContact: On November 14, 2016, the Company completed the acquisition of all of the outstanding shares of inContact, Inc. ("inContact"), a leading provider of cloud contact center software and agent optimization tools, for a total consideration of $1,050,054. The acquisition enables the Company to offer a fully integrated and complete cloud contact center where companies can interact with customers. Upon acquisition, inContact became a wholly-owned subsidiary of the Company. The acquisition was accounted for as a business combination. InContact Inc. constituted approximately 4.2% of the Company's consolidated total assets as of December 31, 2016, and 1.2% of the Company's consolidated net income (excluding amortization of related acquired intangible assets) attributed to the period from the date of acquisition for the year then ended. The following table presents the unaudited pro forma financial information for the years ended December 31, 2016, as if the acquisition occurred on January 1, 2015 : Year ended December 31, 2016 Revenue $ 1,237,329 Net income $ 31,195 The unaudited pro forma financial information for the year ended December 31, 2016 has been calculated after adjusting the Company's results and those of inContact to reflect the business combination accounting effects resulting from this acquisition as if the acquisition occurred as of January 1, 2015, including: (i) acquisition related transaction costs; (ii) amortization expense from acquired intangible assets; (iii) post acquisition share-based compensation expense; (iv) debt financing costs incurred for the issuance of a loan received as part of the acquisition financing; and (v) the associated tax effect of these unaudited pro forma adjustments. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2015 . 4. Acquisitions related costs: During 2018, 2017 and 2016 acquisition related costs amounted to $1,249; $970 and $9,348 respectively, and were included in general and administrative expenses. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 revenues and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of NICE Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. c. Principles of consolidation: 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. 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 320-10-35. 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 accumulated other comprehensive income. f. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Office furniture and equipment 5 - 14 Internal use software 3 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. g. Internal use software costs: The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC350-40, Internal-Use Software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. h. Other intangible assets, net: Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 2 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 i. Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends. Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2018, 2017 and 2016, no impairment charge was recognized. j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. 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. During the fourth quarter of each of the years presented, the Company performed a qualitative assessment for its reporting units 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. Accordingly, during the years 2018, 2017 and 2016, no impairment charge was recognized. k. Exchangeable senior notes: The Company applies ASC 815 "Derivative and Hedging" ("ASC 815") and ASC 470 "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. l. Revenue recognition: The Company generates revenues from sales of software products, services and cloud, which include software license, SaaS and network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and training. 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 Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). As such, the Company identifies a contract with a customer and the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, The Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. Where there is high diversity, the Company uses the residual method. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Revenues from professional services are recognized as services are performed. The Company's SaaS offerings provide customers access to certain of its software within a cloud-based IT environment on a subscription basis, and may also include network connectivity services over the Company's network or through third party network connectivity providers on a usage basis. Because such offerings do not grant customers the right to take possession of the software, the Company considers these arrangements to be service contracts. In addition, the Company also derives revenue from professional services included in implementing or improving a customer's cloud software solutions experience. Revenues for SaaS offerings are recognized ratably over the contract term or based on actual usage, commencing with the date the service is made available to the customers. Revenue from the network connectivity usage is derived based on customer specific rate plans and call usage and is recognized in the period the call is initiated. Upfront fees related to professional services that are interdependent with SaaS are not considered distinct. These services are considered a material right and as such are deferred and recognized over the estimated life of the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. The Company maintains a provision for product returns and other contractual rights which are estimated based on the Company's experience and are deducted from revenues and recorded under accrued expenses and other liabilities on the balance sheets. As of December 31, 2018, the aggregate amount of the total transaction price allocated in contracts with original duration greater than one year of the remaining performance obligations was approximately $705,000. As of December 31, 2018, the Company expects to recognize the majority of the revenue of remaining performance obligation over the next 24 months. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of one year or less. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations pursuant to ASC 606. m. Costs to Obtain Contracts: The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered renewals For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. n. Research and development costs: Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. p. Non-royalty grants: Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers located primarily in North America, and in Europe, the Middle East and Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers and 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 and U.S. Government agencies. 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 foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. r. Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expense for 2018, 2017 and 2016 amounted to $13,453; $9,862 and $9,970, respectively. The Company also has other liabilities for severance pay in other jurisdictions. 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%-8% of their eligible compensation but generally not greater than annual contribution of $18.5 in 2018, and $18 in 2017 and 2016 (for certain employees over 50 years of age the maximum annual contribution is $24.5 per year in 2018, and $24 in 2017 and 2016) of their total 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 6-8% of their eligible compensation. In the years 2018, 2017 and 2016, the Company recorded an expense for matching contributions in the amount of $7,732; $7,044 and $3,930, respectively. s. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As the Company's intention and ability is to settle the convertible debt in cash, the potential issuance of shares related to the convertible debt does not affect diluted shares. As further described in Note 14, the Company entered into an exchangeable note hedge transaction and warrants transaction. While the exchangeable note hedge transaction is anti-dilutive and as such is not included in the computation of diluted earnings per share, the warrants transaction had dilutive effect and as such were included in the computation of the diluted earnings per share. The number of shares related to the outstanding exchangeable note hedge transaction is 3,457,475. The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 108,617; 62,319 and 99,636 for the years 2018, 2017 and 2016, respectively. t. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of 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 Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 13d. The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. u. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: · Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. · Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities and foreign currency derivative contracts are classified within Level 2 (see Notes 3 and 10). The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the immediate or short-term maturities of these financial instruments. The carrying amount of the long-term loan approximates its fair value due to the fact that the loan bears a variable interest rate. v. 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. w. Advertising expenses: Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2018, 2017 and 2016 are $13,527; $13,543 and $9,693, respectively. x. 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. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. y. Business combination: The Company applies the provisions of ASC 805, "Business Combination" and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected cash flows from customer relationships, acquired technology and acquired trademarks from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. z. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. 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 and changes in foreign currency translation adjustments. The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2018 and 2017: Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) Other comprehensive income (loss) before reclassifications (592 ) (8,630 ) (9,261 ) (18,483 ) Amounts reclassified from accumulated other comprehensive income - 4,781 - 4,781 Net current-period other comprehensive income (loss) (592 ) (3,849 ) (9,261 ) (13,702 ) Ending balance $ (1,662 ) $ (2,715 ) $ (42,239 ) $ (46,616 ) Year ended December 31, 2017 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (216 ) $ (101 ) $ (46,507 ) $ (46,824 ) Other comprehensive income (loss) before reclassifications (854 ) 6,821 13,529 19,496 Amounts reclassified from accumulated other comprehensive income - (5,586 ) - (5,586 ) Net current-period other comprehensive income (loss) (854 ) 1,235 13,529 13,910 Ending balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) aa. Recently adopted accounting standards: In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Accounting Standard Update ("ASU") No. 2014-09 utilizing the modified retrospective method. The cumulative impact of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date. As a result, the following adjustments were made to accounts on the consolidated balance sheet: a decrease in the deferred revenues of $38,670, an increase of $38,956 in the costs related to obtaining customer contracts and a decrease of $15,925 in the tax related accounts. The impact mainly relates to arrangements that include term-based software licenses, allocation of transaction price to each performance obligation on a relative SSP and capitalization of costs related to obtaining customer contracts. Select consolidated balance sheet line items, which reflect the adoption impact of the new standard, are as follows: December 31, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Assets: Prepaid expenses and other current assets $ 87,450 $ 91,671 $ (4,221 ) Other long-term assets 74,042 16,367 57,675 Deferred tax assets 12,309 12,356 (47 ) Liabilities: Deferred revenues and advances from customers (256,499 ) (285,367 ) 28,868 Accrued expenses and other liabilities (373,908 ) (368,681 ) (5,227 ) Deferred tax liabilities (44,140 ) (32,125 ) (12,015 ) Shareholders' Equity: $ 2,016,613 $ 1,951,580 $ 65,033 In accordance with ASC 606, the disclosure of the impact for the adoption of ASC 606 on the consolidated statement of income was as follows: Year ended December 31, 2018 As Reported Amounts without adoption of Effect of Change Consolidated Statement of Income: Total revenues $ 1,444,519 $ 1,453,762 $ (9,243 ) Cost of revenues 496,815 497,479 (664 ) Selling and marketing 370,659 384,142 (13,483 ) Taxes on income 27,377 26,347 1,030 Net income 159,338 155,464 3,874 Earnings per share: Basic $ 2.60 $ 2.53 $ (0.07 ) Diluted $ 2.52 $ 2.46 $ (0.06 ) In June 2018, FASB issued ASU 2018-07 to expand the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard effective as of January 1, 2018, and the adoption of this standard did not have a significant impact on the Company's consolidated financi |
SHORT-TERM AND LONG-TERM INVEST
SHORT-TERM AND LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM AND LONG-TERM INVESTMENTS | NOTE 3:- SHORT-TERM AND LONG-TERM INVESTMENTS 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, 2018 and 2017: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Corporate debentures $ 457,943 $ 189,836 $ 190 $ 9 $ 1,993 $ 908 $ 456,141 $ 188,937 U.S. Treasuries 21,944 7,007 - - 226 170 21,717 6,837 U.S. Government Agencies 10,854 998 16 - 1 1 10,869 997 $ 490,741 $ 197,841 $ 206 $ 9 $ 2,220 $ 1,079 $ 488,727 $ 196,771 The scheduled maturities of available-for-sale marketable securities as of December 31, 2018 are as follows: Amortized Estimated cost fair value Due within one year $ 244,233 $ 243,729 Due after one year through five years 246,508 244,998 $ 490,741 $ 488,727 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2018 and 2017 are as indicated in the following tables: December 31, 2018 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 231,845 $ (754 ) $ 113,870 $ (1,239 ) $ 345,715 $ (1,993 ) U.S. treasuries 14,926 (12 ) 6,791 (214 ) 21,717 (226 ) U.S. Government agencies 7,932 (1 ) - - 7,932 (1 ) $ 254,703 $ (767 ) $ 120,661 $ (1,453 ) $ 375,364 $ (2,220 ) December 31, 2017 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 135,252 $ (711 ) $ 49,076 $ (198 ) $ 184,328 $ (909 ) U.S. treasuries - - 6,837 (170 ) 6,837 (170 ) U.S. Government agencies 997 - - - 997 - $ 136,249 $ (711 ) $ 55,913 $ (368 ) $ 192,162 $ (1,079 ) |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 4:- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2018 2017 Government authorities $ 30,369 $ 26,275 Interest receivable 2,867 2,042 Prepaid expenses 45,671 31,810 Inventories 3,434 3,891 Discontinued operations - 2,042 Other 5,109 4,014 $ 87,450 $ 70,074 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 5:- OTHER LONG-TERM ASSETS December 31, 2018 2017 Deferred commission costs $ 57,675 $ - Severance pay fund 12,575 14,859 Long-term deposits and other assets 3,792 4,637 $ 74,042 $ 19,496 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2018 2017 Cost: Computers and peripheral equipment $ 253,325 $ 212,449 Internal use software 69,452 37,948 Office furniture and equipment 13,060 12,030 Leasehold improvements 57,454 53,266 393,291 315,693 Accumulated depreciation: Computers and peripheral equipment 196,820 163,162 Internal use software 16,597 2,924 Office furniture and equipment 7,717 6,614 Leasehold improvements 31,819 24,718 252,953 197,418 Depreciated cost $ 140,338 $ 118,275 Depreciation expense totaled $49,963; $37,924 and $18,422 for the years 2018, 2017 and 2016, respectively. The Company recorded a reduction of $11,485 and $6,790 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use for the years ended December 31, 2018 and 2017, respectively. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | NOTE 7:- OTHER INTANGIBLE ASSETS, NET a. Definite-lived other intangible assets: December 31, 2018 2017 Original amounts: Core technology $ 720,134 $ 673,291 Customer relationships, backlog and distribution network 393,204 382,031 Trademarks 55,896 56,196 1,169,234 1,111,518 Accumulated amortization: Core technology 372,895 315,665 Customer relationships, backlog and distribution network 264,463 225,951 Trademarks 23,644 18,555 661,002 560,171 Other intangible assets, net $ 508,232 $ 551,347 b. Amortization expense amounted to $107,179; $118,377 and $58,968 for the years ended December 31, 2018, 2017 and 2016, respectively. c. Estimated amortization expense: For the year ended December 31, 2019 $ 111,602 2020 104,856 2021 96,834 2022 80,690 2023 and thereafter 114,250 $ 508,232 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 8:- GOODWILL Following the Company's acquisitions in 2018 and 2017, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2018 and 2017 are as follows: Year ended December 31, 2018 Customer Engagement Financial Crime and Compliance Total As of January 1, 2018 $ 1,053,922 $ 264,320 $ 1,318,242 Acquisitions (*) 54,203 - 54,203 Functional currency translation adjustments (5,034 ) (1,205 ) (6,239 ) As of December 31, 2018 $ 1,103,091 $ 263,115 $ 1,366,206 Year ended December 31, 2017 Customer Engagement Financial Crime and Compliance Total As of January 1, 2017 $ 1,022,198 $ 262,512 $ 1,284,710 Acquisitions (*) 24,346 - 24,346 Functional currency translation adjustments 7,378 1,808 9,186 As of December 31, 2017 $ 1,053,922 $ 264,320 $ 1,318,242 (*) Including adjustments of $5,624 and $(3,799), resulting from finalization of purchase price allocations with respect to 2018 and 2017, respectively. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 9:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2018 2017 Payroll and related expenses $ 158,185 $ 142,182 Accrued expenses 104,568 80,893 Government authorities 95,535 79,515 Discontinued operations - 189 Other 15,620 6,571 $ 373,908 $ 309,350 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 10:- DERIVATIVE INSTRUMENTS The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, an entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. 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 are 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 and forward contracts to hedge a portion of anticipated New Israeli Shekel ("NIS"), Indian Rupee ("INR") and Philippine peso ("PHP") payroll and benefit payments as well as facilities related payments. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured 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, facility expenses or finance expenses, respectively, at the time that the hedged income/expense is recorded. Notional amount Fair value (Level 2 within the fair value hierarchy) December 31, December 31, 2018 2017 2018 2017 Option contracts to hedge payroll expenses ILS $ 73,950 $ 4,000 $ (2,566 ) $ 46 expenses INR 40,391 17,800 807 232 Option contracts to hedge facility expenses ILS 5,200 - (137 ) - expenses INR 3,874 1,846 80 19 Forward contracts to hedge payroll expenses ILS 53,500 30,000 (1,926 ) 947 expenses INR - 400 - 6 expenses PHP 4,452 - 187 - Forward contracts to hedge facility expenses PHP 628 - 28 - $ 181,995 $ 54,046 $ (3,527 ) $ 1,250 The Company currently hedges its exposure to the variability in future cash flows for a maximum period of two years. As of December 31, 2018, the Company expects to reclassify all of its unrealized gains and losses from accumulated other comprehensive income to earnings during the next twenty-four months. The fair value of the Company's outstanding derivative instruments at December 31, 2018 and 2017 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2018 2017 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ 888 $ 297 Foreign exchange forward contracts Prepaid expenses and other current assets $ 214 $ 953 Derivative liabilities: Foreign exchange option contracts Accrued expenses and other liabilities $ (2,703 ) $ - Foreign exchange forward contracts Accrued expenses and other liabilities $ (1,926 ) $ - The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2018, 2017 and 2016 is summarized below: Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) Year ended December 31, 2018 2017 2016 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ (6,059 ) $ 3,317 $ (202 ) Option contracts (2,571 ) 3,504 802 $ (8,630 ) $ 6,821 $ 600 Derivatives in foreign exchange cash flow hedging relationships: Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) Year ended December 31, Statements of income line item 2018 2017 2016 Option contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and discontinued operations $ 66 $ (2,429 ) $ (132 ) Forward contracts to hedge payroll and facility expenses Cost of revenues and operating expenses 4,715 (3,157 ) - $ 4,781 $ (5,586 ) $ (132 ) |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11:- 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, are as follows: 2019 $ 23,450 2020 21,333 2021 17,828 2022 17,446 2023 10,749 2024 and thereafter 24,109 $ 114,915 Rent expenses for the years 2018, 2017 and 2016 are approximately $20,053; $14,103 and $23,669, respectively. On October 30, 2015, the Company entered into an agreement to rent new office space in Hoboken NJ, USA. Consequently, in November 2016, the Company ceased using its offices in several locations in the USA prior to their original contractual termination date, and sub-leased two former facilities for the remainder of their respective lease terms. As a result, the Company recorded an exit activity liability as of December 31, 2016 and recognized rent expenses in the amount of $6,457. In 2017, due to change in measurement the Company recognized rent income in the amount of $3,067 which is included in the disclosed information above. 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 $507 as of December 31, 2018. Lease expenses for motor vehicles for the years 2018, 2017 and 2016 are $2,432; $2,656 and $2,747, respectively. b. Other commitments: The Company is also obligated under certain agreements with its suppliers to purchase licenses and hosting services. These non-cancelable obligations as of December 31, 2018 are $74,543. c. Legal proceedings: 1. California College Lawsuit: In May 2009, inContact was served a lawsuit titled California College, Inc., et al., v. UCN, Inc., et al. in connection with the sale of services with those Insidesales.com, Inc. California College originally sought damages in excess of $20,000. Insidesales.com and inContact filed cross-claims against one another, which they subsequently agreed to dismiss with prejudice. In October 2011, California College reached a settlement with Insidesales.com, the terms of which have not been disclosed and remain confidential. In June of 2013, California College amended its damages claim to $14,400, of which approximately $5,000 was alleged to be pre-judgment interest. On September 10, 2013, the court issued an order on inContact's Motion for Partial Summary Judgment. The court determined that factual disputes exist as to several of the claims, but dismissed California College's cause of action for intentional interference with prospective economic relations and the claim for prejudgment interest. Dismissing the claim for prejudgment interest effectively reduced the claim for damages to approximately $9,200. The trial court granted inContact's motion to stay the trial without date pending an interlocutory appeal to the Utah Supreme Court of the trial court's ruling with respect to allowing California College's experts to testify at trial. The appeal was fully briefed and argued in 2017. On March 21, 2019, the Utah Court of Appeals reversed the trial court’s rulings with respect to allowing California College’s expert to testify and held that both of the experts would be excluded from testifying. Therefore, California College will not be able to assert a claim for lost profits, resulting in inContact’s potential liability being limited to the contract damages (i.e., approximately $370). At this stage the Company is unable to evaluate the probability of a favorable or unfavorable outcome in this litigation, but based on advise of external counsel, potential liability has been substantially reduced. 2. From time to time the Company or its subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not believe it will have a material effect on its consolidated financial position, results of operations, or cash flows. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 12:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax: Commencing 2012, NICE Ltd. and its Israeli subsidiary elected the Preferred Enterprise regime to apply under the Law for the Encouragement of Capital Investments (the "Investment Law"). The election is irrevocable. Under the Preferred Enterprise Regime, from 2015 through 2016, NICE Ltd. and its Israeli subsidiary's entire preferred income was subject to the tax rate of 16%. In December 2016, the Israeli Knesset passed a number of changes to the Investments Law regimes. These changes came into law in May 2017, retroactively effective beginning January 1, 2017, upon the passing into law of Regulations promulgated by the Finance Ministry to implement the "Nexus Principles" based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Such Regulations provide rules for implementation of the new beneficial Preferred Technology Enterprise tax regime. The Company believes it qualifies as a Preferred Technology Enterprise and accordingly is eligible for a tax rate of 12% on its preferred technology income, as defined in such regulations, beginning from tax year 2017 and onwards. The Company expects that it will continue to qualify as a Preferred Technology Enterprise in subsequent tax years. Income not eligible for Preferred Enterprise or Preferred Technology Enterprise benefits is taxed at the regular corporate tax rate, which is 23% in 2018 and was 24% in 2017 and 25% in 2016. Prior to 2012, most of NICE Ltd. and its Israeli subsidiary's income was exempt from tax or subject to reduced tax rates under the Investment Law. Upon distribution of exempt income, the distributing company was subject to reduced corporate tax rates ordinarily applicable to such income under the Investment Law. Currently, income subjected to a reduced tax rate under the Preferred Enterprise and Preferred Technology Enterprise Regime will be freely distributable as dividends, subject to a 20% withholding tax (or lower, under an applicable tax treaty). However, upon the distribution of a dividend from such Preferred Income to an Israeli company, no withholding tax will be imposed Pursuant to a temporary tax relief initiated by the Israeli government, a company that elected by November 11, 2013 to pay a reduced corporate tax rate as set forth in the temporary tax relief with respect to undistributed exempt income generated under the Investment Law accumulated by the company until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in Israel over a five-year period. A company that has elected to apply the temporary tax relief cannot withdraw from its election. The election did not require the actual distribution of these previously tax-exempted earnings. In September 2013, the Company made the election and duly released all of NICE and its Israeli subsidiary's tax-exempted income through 2011 related to their various pre-2012 programs under the Investment Law. The Company believes that it has fulfilled its commitment to make certain investments in "industrial projects" (as defined in the Law), as was required to be completed by December 31, 2017. Additionally, the Company believes that this commitment has already been fulfilled during 2013 as part of its existing investment plans. Further to the election, NICE Ltd. no longer has a tax liability upon future distributions of its tax-exempted earnings, while the Israeli subsidiary may have a tax liability upon future distributions only with respect to its 2012 tax-exempted earnings. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, NICE Ltd. and its Israeli subsidiary calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. 3. Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969: NICE Ltd. and its Israeli subsidiary believe they currently qualify as an "Industrial Company" as defined by the above law and, as such, are 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. The Company's consolidated tax rate depends on the geographical mix of where its profits are earned. Primarily, in 2018, the Company's U.S. subsidiaries are subject to combined federal and state income taxes of approximately 25% and its subsidiaries in the U.K. are subject to corporation tax at a rate of approximately 19%. 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, 2018, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $489,123 with a corresponding unrecognized deferred tax liability of $79,658. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. c. U.S. Tax Reform: On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "U.S. Tax Reform" or "TCJA"); a comprehensive tax legislation that includes significant changes to the taxation of business entities . In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to provide guidance for companies that had not completed their accounting measurement for the income tax effects of the TCJA. Due to the complexities involved in accounting for the enactment of the TCJA, SAB 118 allowed for a provisional estimate of the impacts of the TCJA in the Company's earnings for the year ended December 31, 2017, as well as up to a one-year measurement period that ended on December 22, 2018, for any subsequent adjustments to such provisional estimate. The year ended December 31, 2017 includes a recognition of a deferred tax benefit of $30,923 recorded to remeasure certain of the Company's U.S. deferred taxes, to reflect the reduced rate that will apply in future periods, when these deferred taxes are settled or realized, with no impact from the transition tax on repatriation or material impact from limitations on the deduction of interest expense. During 2018, the Company completed its analysis of the impacts of the TCJA, and recorded additional income of $2,975, pursuant to guidance issued by the U.S. Department of Treasury and the Internal Revenue Service and revisions to the Company's estimates since the assessment date. The additional income is primarily due to an increase of the deferred tax benefit recorded to re-measure certain of the Company's U.S. deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future, and a decrease in the deferred tax liability for electing to fully expense qualifying asset expenditures. In 2018, the Company recognized an expense of $4,786 for BEAT payments made by U.S. corporations to foreign related parties. Other provisions of the TCJA did not have a material effect on the Company's effective tax rate for 2018. The final impact of the TCJA may differ from the tax expense as described above, due to, among other things, possible changes in the interpretations and assumptions made by the Company as a result of additional information, additional guidance or finalization of law and regulations, that will be issued by the U.S. Department of Treasury, the IRS or other standard-setting bodies, and which may impact the Company's future financial statements; and will be accounted for when such guidance is issued. d. Net operating loss carryforward: As of December 31, 2018, the Company and certain of its subsidiaries had tax loss carry-forwards totaling in aggregate approximately $375,786 which can be carried forward and offset against taxable income. Approximately $71,345 of these carry-forward tax losses have no expiration date, with the balance expiring between 2019 and 2038. 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. e. Deferred tax assets and liabilities: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2018 2017 Deferred tax assets: Net operating losses carryforward and tax credits $ 88,528 $ 79,196 Share based payments 21,631 16,142 Research and development costs 3,473 3,606 Reserves, allowances and other 21,838 13,313 Deferred tax assets before valuation allowance 135,470 112,257 Valuation allowance (11,211 ) (8,853 ) Deferred tax assets 124,259 103,404 Deferred tax liabilities: Acquired intangibles (126,318 ) (142,352 ) Acquired deferred revenue (2,033 ) (2,600 ) Internal Use Software and other Fixed Assets (15,677 ) (4,398 ) Prepaid Compensation Expenses (12,062 ) - Deferred tax liabilities (156,090 ) (149,350 ) Deferred tax liabilities, net $ (31,831 ) $ (45,946 ) December 31, 2018 2017 Deferred tax assets $ 12,309 $ 11,850 Deferred tax liabilities (44,140 ) (57,796 ) Deferred tax liabilities, net $ (31,831 ) $ (45,946 ) The Company has provided valuation allowances in respect of certain deferred tax assets resulting from tax loss carry forwards and other reserves and allowances due to uncertainty concerning their realization. f. A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year ended December 31, 2018 2017 2016 Income before taxes on income, as reported in the consolidated statements of income $ 186,715 $ 129,660 $ 144,481 Statutory tax rate in Israel 23.0 % 24.0 % 25.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (13.0 )% (16.8 )% (8.9 )% Changes in valuation allowance (0.0 % 0.0 % 1.0 % Earnings taxed under foreign law (1.8 )% (4.6 )% (7.7 )% Tax settlements and other adjustments 7.0 % 14.3 % 5.8 % U.S. Tax Reform one-time adjustment (1.6 )% (23.9 )% - Other 1.1 % (3.5 )% (0.4 )% Effective tax rate 14.7 % (10.5 )% 14.8 % (*) The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits " status on net earnings per ordinary share is as follows: Year ended December 31, 2018 2017 2016 Basic $ 0.39 $ 0.36 $ 0.22 Diluted $ 0.38 $ 0.35 $ 0.21 g. Income before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 193,664 $ 188,070 $ 131,111 Foreign (6,949 ) (58,410 ) 13,370 $ 186,715 $ 129,660 $ 144,481 h. Taxes on income (tax benefit) are comprised as follows: Year ended December 31, 2018 2017 2016 Current $ 57,549 $ 57,174 $ 47,318 Deferred (30,172 ) (70,805 ) (25,906 ) $ 27,377 $ (13,631 ) $ 21,412 Domestic $ 29,947 $ 27,673 $ 28,097 Foreign (2,570 ) (41,304 ) (6,685 ) $ 27,377 $ (13,631 ) $ 21,412 Of which: Year ended December 31, 2018 2017 2016 Domestic taxes: Current $ 34,370 $ 22,808 $ 27,932 Deferred (4,423 ) 4,865 165 29,947 27,673 28,097 Foreign taxes: Current 23,179 34,366 19,386 Deferred (25,749 ) (75,670 ) (26,071 ) (2,570 ) (41,304 ) (6,685 ) Taxes on income (tax benefit) $ 27,377 $ (13,631 ) $ 21,412 i. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2018 2017 Uncertain tax positions, beginning of year $ 43,984 $ 26,659 Increases in tax positions for prior years 5,121 5,105 Increases in tax positions for current year 13,353 15,140 Settlements (3,471 ) - Expiry of the statute of limitations (427 ) (2,920 ) Uncertain tax positions, end of year $ 58,560 $ 43,984 All the Company's unrecognized tax benefits would, if recognized, reduce the Company's annual effective tax rate. The Company has further accrued $501 and $1,262 due to interest and penalties related to uncertain tax positions as of December 31, 2018 and 2017 respectively. During the course of 2018, NICE Ltd. concluded a corporate income tax audit by the Israeli Tax Authorities with respect to the 2013 tax year. Also, in 2018 the Company's U.S. subsidiaries concluded a routine Internal Revenue Service audit of the tax year 2014 consolidated U.S. Federal tax return and the Company's Swiss subsidiary concluded a routine corporate tax audit for the 2014 and 2015 tax years. NICE Ltd. is currently in the process of routine Israeli income tax audits for the tax years 2014, 2015 and 2016. As of December 31, 2018, U.S. federal income tax returns filed by the Company or its subsidiaries for the tax years prior to 2015 are no longer subject to audit; and to the extent the Company or its subsidiaries generated net operating losses or tax credits in closed tax years, future use of the net operating loss or tax credit carry forward balance would be subject to examination within the relevant statute of limitations for the year in which utilized. In the United Kingdom, years prior to 2016 were closed by way of the expiration of the statute of limitations and the Company and its subsidiaries are still subject to other income tax audits for the tax years of 2011 through 2017. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13:- SHAREHOLDERS' EQUITY a. The Ordinary shares of the Company are traded on the Tel-Aviv Stock Exchange and its American Depositary Shares ("ADSs"), each representing one fully paid ordinary share, par value NIS 1.00 per share of the Company are traded on NASDAQ. b. Share option plans: 2008 and 2016 Share Incentive Plan In June 2008 the Company adopted the 2008 Share Incentive Plan (the "2008 Plan") and in February 2016, the Company adopted the 2016 Share Incentive Plan (the "2016 Plan" and together with the 2008 Plan the "Plans"). The Company adopted the Plans to provide incentives to employees, directors, consultants and/or contractors by rewarding performance and encouraging behavior that will improve the Company's profitability. Under each of the Plans, the Company's employees, directors, consultants and/or contractors may be granted any equity-related award, including any type of an option to acquire the Company's ordinary shares; share appreciation right; share and/or restricted share award ("RSA"); RSU and/or other share unit; and/or other share-based award and/or other right or benefit under the Plans, including any such equity-related award that is a performance based award (each an "Award"). Generally, under the terms of the 2016 Plan, and unless determined otherwise by the Board of Directors, 25% of the restricted share units and par value options granted become vested on each of the four consecutive annual anniversaries following the date of grant. Specifically with respect to options (other than options granted at an exercise price equal to their nominal value), unless determined otherwise by the administrator of the 2016 Plan, 25% of an Award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. Certain executive officers are entitled to acceleration of vesting of awards in the event of a change of control, subject to certain conditions. Awards with a vesting period expire six years after the date of grant. Options that are performance-based shall expire seven years following the date of grant. The 2016 Plan provides that the number of shares that may be subject to Awards granted under the 2016 Plan shall be an amount per calendar year, equal to 3.5% of the Company issued and outstanding share capital as of December 31 of the preceding calendar year. Such amount is reset for each calendar year. Awards are non-transferable except by will or the laws of descent and distribution. Options would be granted at an exercise price equal to the average of the closing prices of one ADR, as quoted on the NASDAQ market, during the 30 consecutive calendar days preceding the date of grant, unless determined otherwise by the administrator of the 2016 Plan (including in some cases options granted with an exercise price equal to the nominal value of an ordinary share). The Company Board of Directors also adopted an addendum to the 2016 Plan for Awards granted to grantees who are residents of Israel (the "Addendum") and resolved to elect the "Capital Gains Route" (as defined in Section 102(b)(2)) of the Tax Ordinance for the grant of Awards to Israeli grantees. The U.S. addendum of the 2016 Plan provides only for non-qualified stock options for purposes of U.S. tax laws. The 2016 Plan is generally administered by the Company's Board of Directors and compensation committee. During 2018, the Company granted 1,152,734 options and restricted share units under the 2016 Plan (which constituted 1.89% of the Company issued and outstanding share capital as of December 31, 2017). Pursuant to the terms of the acquisitions of Actimize Ltd., e-Glue Software Technologies Inc., Fizzback, Merced Causata, Nexidia inContact and Mattersight, the Company assumed or replaced unvested options, RSAs and RSUs and converted them or replaced them with the Company's options, RSAs and RSUs, as applicable, based on an agreed exchange ratio. Each assumed or replaced option, RSA and RSU is subject to the same terms and conditions, including vesting, exercisability and expiration, as originally applied to any such option, RSA and RSU immediately prior to the acquisition. The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2018, 2017 and 2016 was estimated using the following assumptions: 2018 2017 2016 Expected volatility 21.23%-21.83% 21.69%-22.90% 21.05%-25.92% Risk free interest rate 2.42%-3.04% 1.53%-2.00% 0.58%-2.04% Expected dividend - - 0%-1.00% Expected term (in years) 3.5 3.5 3.5 A summary of the Company's stock options activity and related information for the year ended December 31, 2018, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2018 1,676,130 23.07 4.45 115,390 Granted 308,884 15.94 Exercised (661,379 ) 28.55 Cancelled (1,924 ) 22.76 Forfeited (136,864 ) 7.22 Outstanding at December 31, 2018 1,184,847 19.82 4.47 104,731 Exercisable at December 31, 2018 410,237 36.24 3.63 29,523 The weighted-average grant-date fair value of options granted during the years 2018, 2017 and 2016 was $89.54, $61.54 and $46.24, respectively. The total intrinsic value of options exercised during the years 2018, 2017 and 2016 was $68,749; $42,592 and $35,664, respectively. The options outstanding under the Company's stock option plans as of December 31, 2018 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 2018 term Price 2018 exercisable (Years) $ $ $ 0.27 806,066 4.50 0.27 163,219 0.27 $ 0.69-9.89 5,072 4.95 7.08 4,775 7.11 $ 11.40-15.16 957 1.32 12.63 957 12.63 $ 17.72 346 2.19 17.72 346 17.72 $ 35.62-49.72 156,319 4.60 41.50 93,581 40.74 $ 54.95-80.76 153,648 3.79 70.73 122,896 70.24 $ 85.14-96.74 62,439 5.36 93.77 24,463 95.14 1,184,847 4.47 19.82 410,237 36.24 A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2018, is as follows: Number of RSU and RSA ( Outstanding at January 1, 2018 1,525,012 Granted 857,067 Vested (453,904 ) Cancelled (797 ) Forfeited (168,308 ) Outstanding at December 31, 2018 1,759,070 (*) NIS 1 par value which represents approximately $0.27 As of December 31, 2018, there was approximately $115,463 of unrecognized compensation expense related to non-vested stock options, RSUs and RSAs, expected to be recognized over a period of up to four years. The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2018, 2017 and 2016, was comprised as follows: Year ended December 31, 2018 2017 2016 Cost of revenues $ 11,000 $ 11,337 $ 7,878 Research and development, net 7,363 9,038 5,676 Selling and marketing 27,455 23,107 16,403 General and administrative 21,405 13,498 10,590 Total stock-based compensation expenses $ 67,223 $ 56,980 $ 40,547 c. Treasury shares: On May 6, 2015 the Company's Board of Directors authorized a program to repurchase up to $100,000 of the Company's issued and outstanding Ordinary shares and ADRs. On January 10, 2017 the Company announced that the Board of Directors authorized a program to repurchase up to an additional $150,000 of the Company's issued and outstanding ordinary shares and ADRs. This share repurchase program commenced on April 7, 2017 following completion of the prior program. d. Dividends: On February 13, 2013, the Company announced that the Board of Directors had approved a dividend plan under which the Company paid quarterly cash dividends to holders of the Company's ordinary shares and ADRs subject to declaration by its Board of Directors. Under Israeli law, dividends may be paid only out of profits and other surplus (as defined in the law) as of the Company's most recent financial statements or as accrued over a period of 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. On January 10, 2017, the Company announced that the Board of Directors had approved the termination of this dividend plan in connection with the Company's adoption of a capital return strategy to optimize the Company's long-term growth profile. Payment of future dividends, if any, will be at the discretion of the Company's Board of Directors and will depend on various factors, such as the Company's statutory profits, financial condition, operating results and current and anticipated cash needs. Under current Israeli regulations, any cash dividend in Israeli currency paid in respect of ordinary shares purchased by non-residents of Israel with non-Israeli currency may be freely repatriated in such non-Israeli currency, at the rate of exchange prevailing at the time of conversion. The total amount of annual dividend declared and paid in 2017 and 2016 was $0.16 per share and $0.64 per share, respectively. In 2018, no dividend was declared. |
LONG TERM DEBT
LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | NOTE 14:- LONG TERM DEBT In connection with financing the acquisition of inContact (refer to Note 1b) which closed on November 14, 2016, the Company entered into a Credit Agreement with certain lenders, according to which the following credit facilities were issued: 1) a long-term loan of $475,000, and 2) a revolving credit loan of up to $75,000. The Credit Agreement contains a number of covenants and restrictions that among other things, and subject to certain agreed upon exceptions, require the Company and its subsidiaries to satisfy certain financial covenants and restricts the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, declare dividends or redeem or repurchase capital stock, prepay, redeem or purchase subordinated debt and amend or otherwise alter debt agreements, in each case, subject to certain agreed upon exceptions. A failure to comply with these covenants could permit the lenders under the Credit Agreement to declare all amounts borrowed under the Credit Agreement, together with accrued interest and fees, to be immediately due and payable. As of December 31, 2018, the Company was in compliance with all covenants and requirements outlined in the Credit Agreement . Long term loan On January 2017, the Company prepaid a principal amount of $260,000 which resulted in $5,300 amortization of debt issuance costs. In addition, the contractual principal payments for the long-term loan have changed and the Company will pay the entire remaining principal of $215,000 at the final maturity date which is December 31, 2021. The long-term loan bears interest through maturity at a variable rate based upon, at the Company's option every interest period, either (a) the LIBOR rate for Eurocurrency borrowing or (b) an Alternate Base Rate ("ABR"), which is the highest of (i) the administrative agent's prime rate, (ii) one-half of 1.00% in excess of the overnight U.S. Federal Funds rate, and (iii) 1.00% in excess of the one-month LIBOR), plus in each case, an applicable margin. The applicable margin for Eurocurrency loans ranges, based on the applicable total net leverage ratio, from 1.25% to 2.00% per annum and the applicable margin for ABR loans ranges, based on the applicable total net leverage ratio, from 0.25% to 1.00% per annum. Debt issuance costs of $10,158 attributable to the long-term loan are amortized as interest expense over the contractual term of the loan using the effective interest rate. The carrying values of the liability's components are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2018 2017 Principal $ 215,000 $ 215,000 Less: Debt issuance costs, net of amortization (2,692 ) (3,486 ) Net liability carrying amount $ 212,308 $ 211,514 Interest expense related to the liability is reflected on the accompanying consolidated statements of income for the years ended: December 31, 2018 2017 Amortization of debt issuance costs $ 794 $ 6,334 Interest expense 7,083 5,558 Total interest expense recognized $ 7,877 $ 11,892 Effective interest rate 3.80 % 3.30 % Pursuant to the Credit Agreement, the Company has also been granted a revolving credit facility that entitles the Company to borrow up to $75,000 through December 2021 with interest payable on the borrowed amount set at the same terms as the term loan, as well as a quarterly commitment fee on unfunded amounts ranging from 0.25% to 0.5%, subject to the achievement of certain leverage levels. As of December 31, 2018, no amounts had been funded . Debt issuance costs of $1,667 attributable to the revolving credit loan are capitalized and amortized as interest expense over the contractual term of the agreement on a straight line basis. Exchangeable Senior Notes and Hedging Transactions Exchangeable Senior Notes In January 2017, the Company issued $287,500 aggregate principal amount of Exchangeable Senior Notes (the "Notes") due 2024. The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2024 Issuance date January 18, 2017 Maturity date January 15, 2024 Principal amount $ 287,500 Cash coupon rate (per annum) 1.25 % Conversion rate effective September 15, 2023 (per $1000 principal amount) 12.026 Effective conversion price effective September 15, 2023 (per ADS) $ 83.15 Subject to satisfaction of certain conditions and during certain periods, as defined in the indenture governing the Notes, the holders will have the option to exchange the Notes for (i) cash, (ii) ADSs or (iii) a combination thereof, at the Company's election. The Company may provide additional ADSs upon conversion if there is a "Make-Whole Fundamental Change" in the business as defined in the indenture governing the Notes. The Notes are not redeemable by the Company prior to the maturity date apart from certain cases as defined in the indenture governing the Notes. Debt issuance costs of $5,791 attributable to the Notes are amortized as interest expense over the contractual term of the loan using the effective interest rate. The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2018 2017 Principal $ 287,500 $ 287,500 Less: Debt issuance costs, net of amortization (4,488 ) (5,182 ) Unamortized discount (39,335 ) (46,190 ) Net liability carrying amount $ 243,677 $ 236,128 Equity component - net carrying value $ 51,176 $ 51,176 Interest is payable on the debentures semi-annually at the cash coupon rate; however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance. Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows: Year Ended December 31, 2018 2017 Amortization of debt issuance costs $ 694 $ 609 Non-cash amortization of debt discount 6,855 6,278 Interest expense 3,594 3,414 Net liability carrying amount $ 11,143 $ 10,301 Equity component - net carrying value 4.68 % 4.68 % Exchangeable notes hedge transactions In connection with the pricing of the Notes, the Company has entered into privately negotiated exchangeable note hedge transactions with some of the initial purchasers and/or their respective affiliates (the "Option Counterparties"). Subject to customary anti-dilution adjustments substantially similar to those applicable to the Notes, the exchangeable note hedge transactions cover partial number of ADSs that will initially underline the Notes. The note hedge transactions are expected generally to reduce potential dilution to the ADSs and/or cash payments the Company is required to make in excess of the principal amount, in each case, upon any exchange of the Notes. A portion of the call-options can be settled upon a surrender of the same amounts of Notes by a holder. Settlement can be done in cash, ADSs or a combination of both, at the Company's election. Concurrently with the Company's entry into the exchangeable note hedge transactions, the Company has entered into warrant transactions with the Option Counterparties relating to the same number of ADSs (3,457,475), with a strike price of $101.82 per ADS, subject to customary anti‑dilution adjustments. The warrants are exercisable for a period of three months as of the notes maturity date. GAAP requires measuring such transactions as equity components. The Company has recorded a net decrease of $20,281 in additional paid in capital in 2017. |
REPORTABLE SEGMENTS AND GEOGRAP
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | NOTE 15:- REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION a. Reportable segments: ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is its Chief Executive Officer. Year ended December 31, 2018 Customer Engagement (1) Financial Crime and Compliance Not allocated Total Revenues $ 1,156,142 $ 288,377 $ - $ 1,444,519 Operating income $ 223,078 $ 109,464 $ (134,926 ) $ 197,616 Year ended December 31, 2017 Customer Engagement (1) Financial Crime and Compliance Not allocated Total Revenues $ 1,051,350 $ 280,802 $ - $ 1,332,152 Operating income $ 175,247 $ 101,774 $ (126,950 ) $ 150,071 Year ended December 31, 2016 Customer Engagement (1) (2) Financial Crime and Compliance Not allocated Total Revenues $ 754,398 $ 261,144 $ - $ 1,015,542 Operating income $ 202,893 $ 89,990 $ (158,707 ) $ 134,176 (1) Includes the results of companies which were acquired in 2018 and 2017 and are being integrated within the Customer Engagement segment. (2) Includes the results of a certain operation (formerly part of the Security Solutions segment), which was retained and integrated within the Customer Engagement operating segment. The following table presents property and equipment as of December 31, 2018 and 2017, based on operational segments: December 31, 2018 2017 Customer Engagement $ 130,425 $ 104,981 Financial Crime and Compliance 8,262 9,636 Non-allocated 1,651 3,658 $ 140,338 $ 118,275 b. Geographical information: Total revenues from external customers on the basis of the Company's geographical areas are as follows: Year ended December 31, 2018 2017 2016 Americas, principally the US $ 1,123,866 $ 1,035,871 $ 720,520 EMEA (*) 202,521 186,268 189,223 Israel 4,402 3,693 4,295 Asia Pacific 113,730 106,320 101,504 $ 1,444,519 $ 1,332,152 $ 1,015,542 The following presents property and equipment as of December 31, 2018 and 2017, based on geographical areas: December 31, 2018 2017 Americas, principally the US $ 90,333 $ 70,404 EMEA (*) 2,947 3,557 Israel 40,076 37,571 Asia Pacific 6,982 6,743 $ 140,338 $ 118,275 (*) Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement Related Disclosures [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | NOTE 16:- SELECTED STATEMENTS OF INCOME DATA a. Research and development, net: Year ended December 31, 2018 2017 2016 Total costs $ 218,226 $ 211,406 $ 151,698 Less - grants and participations (2,171 ) (2,363 ) (1,668 ) Less - capitalization of software development costs (32,225 ) (27,936 ) (8,502 ) $ 183,830 $ 181,107 $ 141,528 b. Financial income (expenses) and other, net: Year ended December 31, 2018 2017 2016 Financial income: Interest and amortization/accretion of premium/discount on marketable securities, net $ 7,521 $ 2,537 $ 5,607 Exchange rates differences - 241 3,961 Realized gain on marketable securities - - 3,388 Interest 3,778 1,149 953 11,299 3,927 13,909 Financial expenses: Interest (11,204 ) (9,580 ) (1,861 ) Debt issuance costs amortization (1,813 ) (6,943 ) (338 ) Exchangeable Senior Notes amortization of discount (6,855 ) (6,278 ) - Exchange rates differences (430 ) - - Other (1,936 ) (1,518 ) (925 ) (22,238 ) (24,319 ) (3,124 ) Other expenses, net 38 (19 ) (480 ) $ (10,901 ) $ (20,411 ) $ 10,305 c. Net earnings per share: The following table sets forth the computation of basic and diluted net earnings per share: 1. Numerator: Year ended December 31, 2018 2017 2016 Net income from continuing operations available to ordinary shareholders $ 159,338 $ 143,291 $ 123,069 Net income from discontinued operations available to ordinary shareholders - - (6,149 ) Net income to ordinary shareholders $ 159,338 $ 143,291 $ 116,920 2. Denominator (in thousands): Denominator for basic net earnings per share: Weighted average number of shares 61,387 60,444 59,667 Effect of dilutive securities: Add - employee stock options and RSU 1,785 1,675 1,368 Warrants issued in the exchangeable notes transaction 137 - - Denominator for diluted net earnings per share - adjusted weighted average shares $ 63,309 $ 62,119 $ 61,035 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 revenues 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 Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. |
Principles of consolidation | 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. 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 320-10-35. 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 accumulated other comprehensive income. |
Property and equipment, net | f. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Office furniture and equipment 5 - 14 Internal use software 3 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. |
Internal use software costs | g. Internal use software costs: The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC350-40, Internal-Use Software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. |
Other intangible assets, net | h. Other intangible assets, net: Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 2 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 |
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 2018, 2017 and 2016, no impairment charge was recognized. |
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" ("ASC 350"), 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. During the fourth quarter of each of the years presented, the Company performed a qualitative assessment for its reporting units 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. Accordingly, during the years 2018, 2017 and 2016, no impairment charge was recognized. |
Exchangeable senior notes | k. Exchangeable senior notes: The Company applies ASC 815 "Derivative and Hedging" ("ASC 815") and ASC 470 "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. |
Revenue recognition | l. Revenue recognition: The Company generates revenues from sales of software products, services and cloud, which include software license, SaaS and network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and training. 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 Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). As such, the Company identifies a contract with a customer and the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, The Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. Where there is high diversity, the Company uses the residual method. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Revenues from professional services are recognized as services are performed. The Company's SaaS offerings provide customers access to certain of its software within a cloud-based IT environment on a subscription basis, and may also include network connectivity services over the Company's network or through third party network connectivity providers on a usage basis. Because such offerings do not grant customers the right to take possession of the software, the Company considers these arrangements to be service contracts. In addition, the Company also derives revenue from professional services included in implementing or improving a customer's cloud software solutions experience. Revenues for SaaS offerings are recognized ratably over the contract term or based on actual usage, commencing with the date the service is made available to the customers. Revenue from the network connectivity usage is derived based on customer specific rate plans and call usage and is recognized in the period the call is initiated. Upfront fees related to professional services that are interdependent with SaaS are not considered distinct. These services are considered a material right and as such are deferred and recognized over the estimated life of the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. The Company maintains a provision for product returns and other contractual rights which are estimated based on the Company's experience and are deducted from revenues and recorded under accrued expenses and other liabilities on the balance sheets. As of December 31, 2018, the aggregate amount of the total transaction price allocated in contracts with original duration greater than one year of the remaining performance obligations was approximately $705,000. As of December 31, 2018, the Company expects to recognize the majority of the revenue of remaining performance obligation over the next 24 months. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of one year or less. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations pursuant to ASC 606. |
Costs to Obtain Contracts | m. Costs to Obtain Contracts: The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered renewals For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. |
Research and development costs | n. Research and development costs: Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. |
Income taxes | o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (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 | p. Non-royalty grants: Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. |
Concentrations of credit risk | q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers located primarily in North America, and in Europe, the Middle East and Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers and 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 and U.S. Government agencies. 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 foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. |
Severance pay | r. Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expense for 2018, 2017 and 2016 amounted to $13,453; $9,862 and $9,970, respectively. The Company also has other liabilities for severance pay in other jurisdictions. 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%-8% of their eligible compensation but generally not greater than annual contribution of $18.5 in 2018, and $18 in 2017 and 2016 (for certain employees over 50 years of age the maximum annual contribution is $24.5 per year in 2018, and $24 in 2017 and 2016) of their total 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 6-8% of their eligible compensation. In the years 2018, 2017 and 2016, the Company recorded an expense for matching contributions in the amount of $7,732; $7,044 and $3,930, respectively. |
Basic and diluted net earnings per share | s. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As the Company's intention and ability is to settle the convertible debt in cash, the potential issuance of shares related to the convertible debt does not affect diluted shares. As further described in Note 14, the Company entered into an exchangeable note hedge transaction and warrants transaction. While the exchangeable note hedge transaction is anti-dilutive and as such is not included in the computation of diluted earnings per share, the warrants transaction had dilutive effect and as such were included in the computation of the diluted earnings per share. The number of shares related to the outstanding exchangeable note hedge transaction is 3,457,475. The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 108,617; 62,319 and 99,636 for the years 2018, 2017 and 2016, respectively. |
Accounting for stock-based compensation | t. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of 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 Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 13d. The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. |
Fair value of financial instruments | u. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: · Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. · Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities and foreign currency derivative contracts are classified within Level 2 (see Notes 3 and 10). The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the immediate or short-term maturities of these financial instruments. The carrying amount of the long-term loan approximates its fair value due to the fact that the loan bears a variable interest rate. |
Legal contingencies | v. 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 | w. Advertising expenses: Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2018, 2017 and 2016 are $13,527; $13,543 and $9,693, respectively. |
Treasury shares | x. 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. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. |
Business Combination | y. Business combination: The Company applies the provisions of ASC 805, "Business Combination" and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected cash flows from customer relationships, acquired technology and acquired trademarks from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. |
Comprehensive income | z. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. 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 and changes in foreign currency translation adjustments. The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2018 and 2017: Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) Other comprehensive income (loss) before reclassifications (592 ) (8,630 ) (9,261 ) (18,483 ) Amounts reclassified from accumulated other comprehensive income - 4,781 - 4,781 Net current-period other comprehensive income (loss) (592 ) (3,849 ) (9,261 ) (13,702 ) Ending balance $ (1,662 ) $ (2,715 ) $ (42,239 ) $ (46,616 ) Year ended December 31, 2017 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (216 ) $ (101 ) $ (46,507 ) $ (46,824 ) Other comprehensive income (loss) before reclassifications (854 ) 6,821 13,529 19,496 Amounts reclassified from accumulated other comprehensive income - (5,586 ) - (5,586 ) Net current-period other comprehensive income (loss) (854 ) 1,235 13,529 13,910 Ending balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) |
Recently adopted accounting standards | aa. Recently adopted accounting standards: In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Accounting Standard Update ("ASU") No. 2014-09 utilizing the modified retrospective method. The cumulative impact of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date. As a result, the following adjustments were made to accounts on the consolidated balance sheet: a decrease in the deferred revenues of $38,670, an increase of $38,956 in the costs related to obtaining customer contracts and a decrease of $15,925 in the tax related accounts. The impact mainly relates to arrangements that include term-based software licenses, allocation of transaction price to each performance obligation on a relative SSP and capitalization of costs related to obtaining customer contracts. Select consolidated balance sheet line items, which reflect the adoption impact of the new standard, are as follows: December 31, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Assets: Prepaid expenses and other current assets $ 87,450 $ 91,671 $ (4,221 ) Other long-term assets 74,042 16,367 57,675 Deferred tax assets 12,309 12,356 (47 ) Liabilities: Deferred revenues and advances from customers (256,499 ) (285,367 ) 28,868 Accrued expenses and other liabilities (373,908 ) (368,681 ) (5,227 ) Deferred tax liabilities (44,140 ) (32,125 ) (12,015 ) Shareholders' Equity: $ 2,016,613 $ 1,951,580 $ 65,033 In accordance with ASC 606, the disclosure of the impact for the adoption of ASC 606 on the consolidated statement of income was as follows: Year ended December 31, 2018 As Reported Amounts without adoption of Effect of Change Consolidated Statement of Income: Total revenues $ 1,444,519 $ 1,453,762 $ (9,243 ) Cost of revenues 496,815 497,479 (664 ) Selling and marketing 370,659 384,142 (13,483 ) Taxes on income 27,377 26,347 1,030 Net income 159,338 155,464 3,874 Earnings per share: Basic $ 2.60 $ 2.53 $ (0.07 ) Diluted $ 2.52 $ 2.46 $ (0.06 ) In June 2018, FASB issued ASU 2018-07 to expand the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard effective as of January 1, 2018, and the adoption of this standard did not have a significant impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01 "Business Combinations (ASC 805): Clarifying the Definition of a Business" ("ASU 2017-01"), which provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. ASU 2017-01 is effective for the Company for fiscal years beginning after December 15, 2017. The Company adopted the standard effective as of January 1, 2018, and the adoption of this standard did not have a significant impact on the Company's consolidated financial statements |
Recently issued accounting standards, not yet adopted | ab. Recently issued accounting standards, not yet adopted: In February 2016, the FASB issued ASU 2016-02, "Leases (ASC 842)", which will replace the existing guidance of ASC 840, "Leases". This ASU aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued Accounting Standards Update 2018-11, "Leases (ASC 842)". This update provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period's financials will remain the same as those previously presented. The Company will adopt this transition method in the first quarter of 2019. The Company also elected the available practical expedients on adoption. The standard will have a material impact on the Company's consolidated balance sheets. In addition, a material portion of the Company's leases are denominated in currencies other than the functional currency, mainly in NIS. As a result, the associated lease liabilities will be remeasured using the current exchange rate in the future reporting periods, which may result in material foreign exchange gains or losses. Other than the matters discussed above, the standard is not expected to have a material impact on the Company's consolidated income statements or cash flow. In August 2018, FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract" ("ASU 2018-15"). The amendments in ASU 2018-15 provide guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities". The objectives of this ASU are to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the effect of the adoption of this ASU on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (ASC 326)" ("ASU 2016-13"). The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be of greater use to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect that this guidance will have on its consolidated financial statements In January 2017, the FASB issued ASU 2017-04 "Intangibles - Goodwill and Other (ASC 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 eliminates step 2 of the goodwill impairment test, which requires the calculation of the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
inContact [Member] | |
Schedule of unaudited pro forma financial information | The following table presents the unaudited pro forma financial information for the years ended December 31, 2016, as if the acquisition occurred on January 1, 2015 : Year ended December 31, 2016 Revenue $ 1,237,329 Net income $ 31,195 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Property and Equipment Depreciation Rates | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Office furniture and equipment 5 - 14 Internal use software 3 |
Schedule of Other Intangible Assets Depreciation Rates | Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 2 – 8 Customer relationships 3 - 8 Trademarks 2 - 12 Customer backlog 2 - 3 |
Schedule of Accumulated Other Comprehensive Income, Net | The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2018 and 2017: Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) Other comprehensive income (loss) before reclassifications (592 ) (8,630 ) (9,261 ) (18,483 ) Amounts reclassified from accumulated other comprehensive income - 4,781 - 4,781 Net current-period other comprehensive income (loss) (592 ) (3,849 ) (9,261 ) (13,702 ) Ending balance $ (1,662 ) $ (2,715 ) $ (42,239 ) $ (46,616 ) Year ended December 31, 2017 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (216 ) $ (101 ) $ (46,507 ) $ (46,824 ) Other comprehensive income (loss) before reclassifications (854 ) 6,821 13,529 19,496 Amounts reclassified from accumulated other comprehensive income - (5,586 ) - (5,586 ) Net current-period other comprehensive income (loss) (854 ) 1,235 13,529 13,910 Ending balance $ (1,070 ) $ 1,134 $ (32,978 ) $ (32,914 ) |
Accounting Standards Update 2014-09 [Member] | |
Schedule of Cumulative Effects of Applying New Accounting Pronouncements | Select consolidated balance sheet line items, which reflect the adoption impact of the new standard, are as follows: December 31, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Assets: Prepaid expenses and other current assets $ 87,450 $ 91,671 $ (4,221 ) Other long-term assets 74,042 16,367 57,675 Deferred tax assets 12,309 12,356 (47 ) Liabilities: Deferred revenues and advances from customers (256,499 ) (285,367 ) 28,868 Accrued expenses and other liabilities (373,908 ) (368,681 ) (5,227 ) Deferred tax liabilities (44,140 ) (32,125 ) (12,015 ) Shareholders' Equity: $ 2,016,613 $ 1,951,580 $ 65,033 |
Accounting Standards Update 2016-18 [Member] | |
Schedule of Cumulative Effects of Applying New Accounting Pronouncements | In accordance with ASC 606, the disclosure of the impact for the adoption of ASC 606 on the consolidated statement of income was as follows: Year ended December 31, 2018 As Reported Amounts without adoption of Effect of Change Consolidated Statement of Income: Total revenues $ 1,444,519 $ 1,453,762 $ (9,243 ) Cost of revenues 496,815 497,479 (664 ) Selling and marketing 370,659 384,142 (13,483 ) Taxes on income 27,377 26,347 1,030 Net income 159,338 155,464 3,874 Earnings per share: Basic $ 2.60 $ 2.53 $ (0.07 ) Diluted $ 2.52 $ 2.46 $ (0.06 ) |
SHORT-TERM AND LONG-TERM INVE_2
SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities | The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2018 and 2017: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Corporate debentures $ 457,943 $ 189,836 $ 190 $ 9 $ 1,993 $ 908 $ 456,141 $ 188,937 U.S. Treasuries 21,944 7,007 - - 226 170 21,717 6,837 U.S. Government Agencies 10,854 998 16 - 1 1 10,869 997 $ 490,741 $ 197,841 $ 206 $ 9 $ 2,220 $ 1,079 $ 488,727 $ 196,771 |
Scheduled Maturities of Available-for-Sale Marketable Securities | The scheduled maturities of available-for-sale marketable securities as of December 31, 2018 are as follows: Amortized Estimated cost fair value Due within one year $ 244,233 $ 243,729 Due after one year through five years 246,508 244,998 $ 490,741 $ 488,727 |
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, 2018 and 2017 are as indicated in the following tables: December 31, 2018 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 231,845 $ (754 ) $ 113,870 $ (1,239 ) $ 345,715 $ (1,993 ) U.S. treasuries 14,926 (12 ) 6,791 (214 ) 21,717 (226 ) U.S. Government agencies 7,932 (1 ) - - 7,932 (1 ) $ 254,703 $ (767 ) $ 120,661 $ (1,453 ) $ 375,364 $ (2,220 ) December 31, 2017 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 135,252 $ (711 ) $ 49,076 $ (198 ) $ 184,328 $ (909 ) U.S. treasuries - - 6,837 (170 ) 6,837 (170 ) U.S. Government agencies 997 - - - 997 - $ 136,249 $ (711 ) $ 55,913 $ (368 ) $ 192,162 $ (1,079 ) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of prepaid expenses and other current assets | December 31, 2018 2017 Government authorities $ 30,369 $ 26,275 Interest receivable 2,867 2,042 Prepaid expenses 45,671 31,810 Inventories 3,434 3,891 Discontinued operations - 2,042 Other 5,109 4,014 $ 87,450 $ 70,074 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | December 31, 2018 2017 Deferred commission costs $ 57,675 $ - Severance pay fund 12,575 14,859 Long-term deposits and other assets 3,792 4,637 $ 74,042 $ 19,496 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | December 31, 2018 2017 Cost: Computers and peripheral equipment $ 253,325 $ 212,449 Internal use software 69,452 37,948 Office furniture and equipment 13,060 12,030 Leasehold improvements 57,454 53,266 393,291 315,693 Accumulated depreciation: Computers and peripheral equipment 196,820 163,162 Internal use software 16,597 2,924 Office furniture and equipment 7,717 6,614 Leasehold improvements 31,819 24,718 252,953 197,418 Depreciated cost $ 140,338 $ 118,275 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Definite-Lived Other Intangible Assets | Definite-lived other intangible assets: December 31, 2018 2017 Original amounts: Core technology $ 720,134 $ 673,291 Customer relationships, backlog and distribution network 393,204 382,031 Trademarks 55,896 56,196 1,169,234 1,111,518 Accumulated amortization: Core technology 372,895 315,665 Customer relationships, backlog and distribution network 264,463 225,951 Trademarks 23,644 18,555 661,002 560,171 Other intangible assets, net $ 508,232 $ 551,347 |
Schedule of Estimated Amortization Expense | Estimated amortization expense: For the year ended December 31, 2019 $ 111,602 2020 104,856 2021 96,834 2022 80,690 2023 and thereafter 114,250 $ 508,232 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Following the Company's acquisitions in 2018 and 2017, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2018 and 2017 are as follows: Year ended December 31, 2018 Customer Engagement Financial Crime and Compliance Total As of January 1, 2018 $ 1,053,922 $ 264,320 $ 1,318,242 Acquisitions (*) 54,203 - 54,203 Functional currency translation adjustments (5,034 ) (1,205 ) (6,239 ) As of December 31, 2018 $ 1,103,091 $ 263,115 $ 1,366,206 Year ended December 31, 2017 Customer Engagement Financial Crime and Compliance Total As of January 1, 2017 $ 1,022,198 $ 262,512 $ 1,284,710 Acquisitions (*) 24,346 - 24,346 Functional currency translation adjustments 7,378 1,808 9,186 As of December 31, 2017 $ 1,053,922 $ 264,320 $ 1,318,242 (*) Including adjustments of $5,624 and $(3,799), resulting from finalization of purchase price allocations with respect to 2018 and 2017, respectively. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | December 31, 2018 2017 Payroll and related expenses $ 158,185 $ 142,182 Accrued expenses 104,568 80,893 Government authorities 95,535 79,515 Discontinued operations - 189 Other 15,620 6,571 $ 373,908 $ 309,350 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Notional and Fair Value Amounts of Outstanding Derivative Instruments | Notional amount Fair value (Level 2 within the fair value hierarchy) December 31, December 31, 2018 2017 2018 2017 Option contracts to hedge payroll expenses ILS $ 73,950 $ 4,000 $ (2,566 ) $ 46 expenses INR 40,391 17,800 807 232 Option contracts to hedge facility expenses ILS 5,200 - (137 ) - expenses INR 3,874 1,846 80 19 Forward contracts to hedge payroll expenses ILS 53,500 30,000 (1,926 ) 947 expenses INR - 400 - 6 expenses PHP 4,452 - 187 - Forward contracts to hedge facility expenses PHP 628 - 28 - $ 181,995 $ 54,046 $ (3,527 ) $ 1,250 |
Schedule of Fair Value of Derivative Instruments by Balance Sheet Location | The fair value of the Company's outstanding derivative instruments at December 31, 2018 and 2017 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2018 2017 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ 888 $ 297 Foreign exchange forward contracts Prepaid expenses and other current assets $ 214 $ 953 Derivative liabilities: Foreign exchange option contracts Accrued expenses and other liabilities $ (2,703 ) $ - Foreign exchange forward contracts Accrued expenses and other liabilities $ (1,926 ) $ - |
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, 2018, 2017 and 2016 is summarized below: Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) Year ended December 31, 2018 2017 2016 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ (6,059 ) $ 3,317 $ (202 ) Option contracts (2,571 ) 3,504 802 $ (8,630 ) $ 6,821 $ 600 Derivatives in foreign exchange cash flow hedging relationships: Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) Year ended December 31, Statements of income line item 2018 2017 2016 Option contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and discontinued operations $ 66 $ (2,429 ) $ (132 ) Forward contracts to hedge payroll and facility expenses Cost of revenues and operating expenses 4,715 (3,157 ) - $ 4,781 $ (5,586 ) $ (132 ) |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [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, are as follows: 2019 $ 23,450 2020 21,333 2021 17,828 2022 17,446 2023 10,749 2024 and thereafter 24,109 $ 114,915 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [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, 2018 2017 Deferred tax assets: Net operating losses carryforward and tax credits $ 88,528 $ 79,196 Share based payments 21,631 16,142 Research and development costs 3,473 3,606 Reserves, allowances and other 21,838 13,313 Deferred tax assets before valuation allowance 135,470 112,257 Valuation allowance (11,211 ) (8,853 ) Deferred tax assets 124,259 103,404 Deferred tax liabilities: Acquired intangibles (126,318 ) (142,352 ) Acquired deferred revenue (2,033 ) (2,600 ) Internal Use Software and other Fixed Assets (15,677 ) (4,398 ) Prepaid Compensation Expenses (12,062 ) - Deferred tax liabilities (156,090 ) (149,350 ) Deferred tax liabilities, net $ (31,831 ) $ (45,946 ) December 31, 2018 2017 Deferred tax assets $ 12,309 $ 11,850 Deferred tax liabilities (44,140 ) (57,796 ) Deferred tax liabilities, net $ (31,831 ) $ (45,946 ) |
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, 2018 2017 2016 Income before taxes on income, as reported in the consolidated statements of income $ 186,715 $ 129,660 $ 144,481 Statutory tax rate in Israel 23.0 % 24.0 % 25.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (13.0 )% (16.8 )% (8.9 )% Changes in valuation allowance (0.0 % 0.0 % 1.0 % Earnings taxed under foreign law (1.8 )% (4.6 )% (7.7 )% Tax settlements and other adjustments 7.0 % 14.3 % 5.8 % U.S. Tax Reform one-time adjustment (1.6 )% (23.9 )% - Other 1.1 % (3.5 )% (0.4 )% Effective tax rate 14.7 % (10.5 )% 14.8 % (*) The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits " status on net earnings per ordinary share is as follows: |
Schedule of Effect on Benefit Resulting from "Preferred Enterprise" Status on Net Earnings Per Ordinary Share | The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits " status on net earnings per ordinary share is as follows: Year ended December 31, 2018 2017 2016 Basic $ 0.39 $ 0.36 $ 0.22 Diluted $ 0.38 $ 0.35 $ 0.21 |
Schedule of Income Before Income Tax, Domestic and Foreign | Income before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 193,664 $ 188,070 $ 131,111 Foreign (6,949 ) (58,410 ) 13,370 $ 186,715 $ 129,660 $ 144,481 |
Schedule of Taxes on Income | Taxes on income (tax benefit) are comprised as follows: Year ended December 31, 2018 2017 2016 Current $ 57,549 $ 57,174 $ 47,318 Deferred (30,172 ) (70,805 ) (25,906 ) $ 27,377 $ (13,631 ) $ 21,412 Domestic $ 29,947 $ 27,673 $ 28,097 Foreign (2,570 ) (41,304 ) (6,685 ) $ 27,377 $ (13,631 ) $ 21,412 Of which: Year ended December 31, 2018 2017 2016 Domestic taxes: Current $ 34,370 $ 22,808 $ 27,932 Deferred (4,423 ) 4,865 165 29,947 27,673 28,097 Foreign taxes: Current 23,179 34,366 19,386 Deferred (25,749 ) (75,670 ) (26,071 ) (2,570 ) (41,304 ) (6,685 ) Taxes on income (tax benefit) $ 27,377 $ (13,631 ) $ 21,412 |
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, 2018 2017 Uncertain tax positions, beginning of year $ 43,984 $ 26,659 Increases in tax positions for prior years 5,121 5,105 Increases in tax positions for current year 13,353 15,140 Settlements (3,471 ) - Expiry of the statute of limitations (427 ) (2,920 ) Uncertain tax positions, end of year $ 58,560 $ 43,984 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Assumptions Used to Determine Fair Value of Options Granted | The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2018, 2017 and 2016 was estimated using the following assumptions: 2018 2017 2016 Expected volatility 21.23%-21.83% 21.69%-22.90% 21.05%-25.92% Risk free interest rate 2.42%-3.04% 1.53%-2.00% 0.58%-2.04% Expected dividend - - 0%-1.00% Expected term (in years) 3.5 3.5 3.5 |
Schedule of Stock Option Activity | A summary of the Company's stock options activity and related information for the year ended December 31, 2018, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2018 1,676,130 23.07 4.45 115,390 Granted 308,884 15.94 Exercised (661,379 ) 28.55 Cancelled (1,924 ) 22.76 Forfeited (136,864 ) 7.22 Outstanding at December 31, 2018 1,184,847 19.82 4.47 104,731 Exercisable at December 31, 2018 410,237 36.24 3.63 29,523 |
Schedule of Options Outstanding by Exercise Price Range | The options outstanding under the Company's stock option plans as of December 31, 2018 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 2018 term Price 2018 exercisable (Years) $ $ $ 0.27 806,066 4.50 0.27 163,219 0.27 $ 0.69-9.89 5,072 4.95 7.08 4,775 7.11 $ 11.40-15.16 957 1.32 12.63 957 12.63 $ 17.72 346 2.19 17.72 346 17.72 $ 35.62-49.72 156,319 4.60 41.50 93,581 40.74 $ 54.95-80.76 153,648 3.79 70.73 122,896 70.24 $ 85.14-96.74 62,439 5.36 93.77 24,463 95.14 1,184,847 4.47 19.82 410,237 36.24 |
Schedule of Restricted Stock Units Activity | A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2018, is as follows: Number of RSU and RSA ( Outstanding at January 1, 2018 1,525,012 Granted 857,067 Vested (453,904 ) Cancelled (797 ) Forfeited (168,308 ) Outstanding at December 31, 2018 1,759,070 (*) NIS 1 par value which represents approximately $0.27 |
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, 2018, 2017 and 2016, was comprised as follows: Year ended December 31, 2018 2017 2016 Cost of revenues $ 11,000 $ 11,337 $ 7,878 Research and development, net 7,363 9,038 5,676 Selling and marketing 27,455 23,107 16,403 General and administrative 21,405 13,498 10,590 Total stock-based compensation expenses $ 67,223 $ 56,980 $ 40,547 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of principal payments on the Company's Term Debt | The carrying values of the liability's components are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2018 2017 Principal $ 215,000 $ 215,000 Less: Debt issuance costs, net of amortization (2,692 ) (3,486 ) Net liability carrying amount $ 212,308 $ 211,514 |
Schedule of Component of Term Debt Liability | Interest expense related to the liability is reflected on the accompanying consolidated statements of income for the years ended: December 31, 2018 2017 Amortization of debt issuance costs $ 794 $ 6,334 Interest expense 7,083 5,558 Total interest expense recognized $ 7,877 $ 11,892 Effective interest rate 3.80 % 3.30 % |
Schedule of interest Expense Recognized | In January 2017, the Company issued $287,500 aggregate principal amount of Exchangeable Senior Notes (the "Notes") due 2024. The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2024 Issuance date January 18, 2017 Maturity date January 15, 2024 Principal amount $ 287,500 Cash coupon rate (per annum) 1.25 % Conversion rate effective September 15, 2023 (per $1000 principal amount) 12.026 Effective conversion price effective September 15, 2023 (per ADS) $ 83.15 |
Schedule of Outstanding Exchangeable Note | The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2018 2017 Principal $ 287,500 $ 287,500 Less: Debt issuance costs, net of amortization (4,488 ) (5,182 ) Unamortized discount (39,335 ) (46,190 ) Net liability carrying amount $ 243,677 $ 236,128 Equity component - net carrying value $ 51,176 $ 51,176 |
Schedule of Carring Values | Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows: Year Ended December 31, 2018 2017 Amortization of debt issuance costs $ 694 $ 609 Non-cash amortization of debt discount 6,855 6,278 Interest expense 3,594 3,414 Net liability carrying amount $ 11,143 $ 10,301 Equity component - net carrying value 4.68 % 4.68 % |
REPORTABLE SEGMENTS AND GEOGR_2
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information of The Company's Reportable Segments | Year ended December 31, 2018 Customer Engagement (1) Financial Crime and Compliance Not allocated Total Revenues $ 1,156,142 $ 288,377 $ - $ 1,444,519 Operating income $ 223,078 $ 109,464 $ (134,926 ) $ 197,616 Year ended December 31, 2017 Customer Engagement (1) Financial Crime and Compliance Not allocated Total Revenues $ 1,051,350 $ 280,802 $ - $ 1,332,152 Operating income $ 175,247 $ 101,774 $ (126,950 ) $ 150,071 Year ended December 31, 2016 Customer Engagement (1) (2) Financial Crime and Compliance Not allocated Total Revenues $ 754,398 $ 261,144 $ - $ 1,015,542 Operating income $ 202,893 $ 89,990 $ (158,707 ) $ 134,176 (1) Includes the results of companies which were acquired in 2018 and 2017 and are being integrated within the Customer Engagement segment. (2) Includes the results of a certain operation (formerly part of the Security Solutions segment), which was retained and integrated within the Customer Engagement operating segment. |
Schedule of Long-Lived Assets by Operational Segments | The following table presents property and equipment as of December 31, 2018 and 2017, based on operational segments: December 31, 2018 2017 Customer Engagement $ 130,425 $ 104,981 Financial Crime and Compliance 8,262 9,636 Non-allocated 1,651 3,658 $ 140,338 $ 118,275 |
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, 2018 2017 2016 Americas, principally the US $ 1,123,866 $ 1,035,871 $ 720,520 EMEA (*) 202,521 186,268 189,223 Israel 4,402 3,693 4,295 Asia Pacific 113,730 106,320 101,504 $ 1,444,519 $ 1,332,152 $ 1,015,542 |
Schedule of Long-Lived Assets by Geographical Areas | The following presents property and equipment as of December 31, 2018 and 2017, based on geographical areas: December 31, 2018 2017 Americas, principally the US $ 90,333 $ 70,404 EMEA (*) 2,947 3,557 Israel 40,076 37,571 Asia Pacific 6,982 6,743 $ 140,338 $ 118,275 (*) Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED STATEMENTS OF INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement Related Disclosures [Abstract] | |
Schedule of Research and Development Costs, Net | Research and development, net: Year ended December 31, 2018 2017 2016 Total costs $ 218,226 $ 211,406 $ 151,698 Less - grants and participations (2,171 ) (2,363 ) (1,668 ) Less - capitalization of software development costs (32,225 ) (27,936 ) (8,502 ) $ 183,830 $ 181,107 $ 141,528 |
Schedule of Financial Income and Other, Net | Financial income (expenses) and other, net: Year ended December 31, 2018 2017 2016 Financial income: Interest and amortization/accretion of premium/discount on marketable securities, net $ 7,521 $ 2,537 $ 5,607 Exchange rates differences - 241 3,961 Realized gain on marketable securities - - 3,388 Interest 3,778 1,149 953 11,299 3,927 13,909 Financial expenses: Interest (11,204 ) (9,580 ) (1,861 ) Debt issuance costs amortization (1,813 ) (6,943 ) (338 ) Exchangeable Senior Notes amortization of discount (6,855 ) (6,278 ) - Exchange rates differences (430 ) - - Other (1,936 ) (1,518 ) (925 ) (22,238 ) (24,319 ) (3,124 ) Other expenses, net 38 (19 ) (480 ) $ (10,901 ) $ (20,411 ) $ 10,305 |
Schedule of Computation of Net Earnings Per Share | The following table sets forth the computation of basic and diluted net earnings per share: 1. Numerator: Year ended December 31, 2018 2017 2016 Net income from continuing operations available to ordinary shareholders $ 159,338 $ 143,291 $ 123,069 Net income from discontinued operations available to ordinary shareholders - - (6,149 ) Net income to ordinary shareholders $ 159,338 $ 143,291 $ 116,920 2. Denominator (in thousands): Denominator for basic net earnings per share: Weighted average number of shares 61,387 60,444 59,667 Effect of dilutive securities: Add - employee stock options and RSU 1,785 1,675 1,368 Warrants issued in the exchangeable notes transaction 137 - - Denominator for diluted net earnings per share - adjusted weighted average shares $ 63,309 $ 62,119 $ 61,035 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ in Thousands | Aug. 20, 2018 | Nov. 14, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||
Purchase price | $ 76,870 | ||||||
Net tangible liabilities | 2,291 | ||||||
Identifiable intangible assets | 51,015 | ||||||
Goodwill | $ 1,284,710 | $ 1,366,206 | 1,318,242 | $ 1,284,710 | |||
Acquisition costs | 1,249 | 970 | $ 9,348 | ||||
Net operating losses carryforward | 88,528 | 79,196 | |||||
Amount of goodwill | 28,145 | ||||||
Goodwill from acquisitions | [1] | $ 54,203 | $ 24,346 | ||||
inContact [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred in acquisition | $ 1,050,054 | ||||||
Percentage of consolidated total assets constituted by acquired entity | 4.20% | 4.20% | |||||
Percentage of consolidated net income constituted by acquired entity from acquisition date | 1.20% | ||||||
Mattersight [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 48,579 | ||||||
Total consideration | 105,053 | ||||||
Mattersight [Member] | Core Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total assets acquired and liabilities assumed | $ 50,852 | ||||||
Mattersight [Member] | Core Technology [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life | 5 years | ||||||
Mattersight [Member] | Core Technology [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life | 7 years | ||||||
Mattersight [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total assets acquired and liabilities assumed | $ 7,757 | ||||||
Estimated useful life | 7 years | ||||||
Mattersight [Member] | Customer Backlog [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total assets acquired and liabilities assumed | $ 5,439 | ||||||
Mattersight [Member] | Customer Backlog [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life | 2 years | ||||||
Mattersight [Member] | Customer Backlog [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life | 3 years | ||||||
[1] | Including adjustments of $5,624 and $(3,799), resulting from finalization of purchase price allocations with respect to 2018 and 2017, respectively. |
GENERAL (Schedule of Pro Forma
GENERAL (Schedule of Pro Forma Financial Information) (Details) - inContact [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,237,329 |
Net income | $ 31,195 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash equivalents maturities, months | 3 months | ||
Impairment charge | $ 0 | $ 0 | $ 0 |
Severance pay expense | 13,453,000 | 9,862,000 | 9,970,000 |
Employee contribution amount, max per year | 18,500 | 18,000 | 18,000 |
Employees over 50 years of age maximum annual contribution per year | $ 24,500 | 24,000 | 24,000 |
Employee contribution percentage, minimum | 6.00% | ||
Employee contribution percentage, maximum | 8.00% | ||
Employer percent of match | 50.00% | ||
Expense for matching contributions | $ 7,732,000 | 7,044,000 | 3,930,000 |
Advertising expenses | 13,527,000 | 13,543,000 | $ 9,693,000 |
Retained earnings | 1,071,811,000 | 850,772,000 | |
Assets | 3,207,366,000 | $ 2,845,086,000 | |
Cumulative effect of deferred revenues | 38,670,000 | ||
Costs related to obtaining customer contracts | 38,956,000 | ||
Decrease in tax related accounts | 15,925,000 | ||
Revenue remaining performance obligation | 705,000 | ||
Lease liabilities for operating leases | $ 120,000,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded in computation of diluted earnings per share | 108,617 | 62,319 | 99,636 |
Minimum [Member] | |||
Employer percent of match | 6.00% | ||
Maximum [Member] | |||
Employer percent of match | 8.00% | ||
Exchangeable Note Hedge [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded in computation of diluted earnings per share | 3,457,475 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computers and Peripheral Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 3.00% |
Computers and Peripheral Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 5.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 5.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 14.00% |
Internal use software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 3.00% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Intangible Assets Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Core Technology [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 2.00% |
Core Technology [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 8.00% |
Customer Relationships [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 3.00% |
Customer Relationships [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 8.00% |
Trademark [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 2.00% |
Trademark [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 12.00% |
Customer backlog [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 2.00% |
Customer backlog [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 3.00% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (32,914) | $ (46,824) | |
Other comprehensive income (loss) before reclassifications | (18,483) | 19,496 | |
Amounts reclassified from accumulated other comprehensive income | 4,781 | (5,586) | |
Net current-period other comprehensive income (loss) | (13,702) | 13,910 | $ (22,619) |
Ending balance | (46,616) | (32,914) | (46,824) |
Unrealized gains (losses) on marketable securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,070) | (216) | |
Other comprehensive income (loss) before reclassifications | (592) | (854) | |
Amounts reclassified from accumulated other comprehensive income | |||
Net current-period other comprehensive income (loss) | (592) | (854) | |
Ending balance | (1,662) | (1,070) | (216) |
Unrealized gains (losses) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,134 | (101) | |
Other comprehensive income (loss) before reclassifications | (8,630) | 6,821 | |
Amounts reclassified from accumulated other comprehensive income | 4,781 | (5,586) | |
Net current-period other comprehensive income (loss) | (3,849) | 1,235 | |
Ending balance | (2,715) | 1,134 | (101) |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (32,978) | (46,507) | |
Other comprehensive income (loss) before reclassifications | (9,261) | 13,529 | |
Amounts reclassified from accumulated other comprehensive income | |||
Net current-period other comprehensive income (loss) | (9,261) | 13,529 | |
Ending balance | $ (42,239) | $ (32,978) | $ (46,507) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cumulative Balance Sheet Adjustments - Adoption of Topic 606) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Prepaid expenses and other Current assets | $ 87,450 | $ 70,074 | ||
Other long-term assets | 74,042 | 19,496 | ||
Deferred tax assets | 12,309 | 11,850 | ||
Liabilities: | ||||
Deferred revenues and advances from customers | (256,499) | |||
Accrued expenses and other liabilities | (373,908) | (309,350) | ||
Deferred tax liabilities | (44,140) | (57,796) | ||
Shareholders' Equity: | (2,016,613) | $ (1,749,561) | $ (1,511,332) | $ (1,415,149) |
Without adoption of ASC 606 [Member] | ||||
Assets: | ||||
Prepaid expenses and other Current assets | 91,671 | |||
Other long-term assets | 16,367 | |||
Deferred tax assets | 12,356 | |||
Liabilities: | ||||
Deferred revenues and advances from customers | (285,367) | |||
Accrued expenses and other liabilities | (368,681) | |||
Deferred tax liabilities | (32,125) | |||
Shareholders' Equity: | 1,951,580 | |||
Effect of Change Higher (Lower) [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Assets: | ||||
Prepaid expenses and other Current assets | (4,221) | |||
Other long-term assets | 57,675 | |||
Deferred tax assets | (47) | |||
Liabilities: | ||||
Deferred revenues and advances from customers | 28,868 | |||
Accrued expenses and other liabilities | (5,227) | |||
Deferred tax liabilities | (12,015) | |||
Shareholders' Equity: | $ 650,333 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Adoption on the Consolidated Statement of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statement of Income: | |||
Total revenues | $ 1,444,519 | $ 1,332,152 | $ 1,015,542 |
Cost of revenues | 496,815 | ||
Selling and marketing | 370,659 | 361,328 | 268,349 |
Taxes on income | 27,377 | (13,631) | 21,412 |
Net income | $ 159,338 | $ 143,291 | $ 116,920 |
Earnings per share: | |||
Basic | $ 2.60 | $ 2.37 | $ 1.96 |
Diluted | $ 2.52 | $ 2.31 | $ 1.92 |
Without adoption of ASC 606 [Member] | |||
Consolidated Statement of Income: | |||
Total revenues | $ 1,453,762 | ||
Cost of revenues | 497,479 | ||
Selling and marketing | 384,142 | ||
Taxes on income | 26,347 | ||
Net income | $ 155,464 | ||
Earnings per share: | |||
Basic | $ 2.53 | ||
Diluted | $ 2.46 | ||
Effect of Change Higher (Lower) [Member] | |||
Consolidated Statement of Income: | |||
Total revenues | $ (9,243) | ||
Cost of revenues | (664) | ||
Selling and marketing | (13,483) | ||
Taxes on income | 1,030 | ||
Net income | $ 3,874 | ||
Earnings per share: | |||
Basic | $ (0.07) | ||
Diluted | $ (0.06) |
SHORT-TERM AND LONG-TERM INVE_3
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 ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 490,741 | $ 197,841 |
Gross unrealized gains | 206 | 9 |
Gross unrealized losses | 2,220 | 1,079 |
Estimated fair value, total | 488,727 | 196,771 |
Fair Value Inputs Level 2 [Member] | Corporate debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 457,943 | 189,836 |
Gross unrealized gains | 190 | 9 |
Gross unrealized losses | 1,993 | 908 |
Estimated fair value, total | 456,141 | 188,937 |
Fair Value Inputs Level 2 [Member] | U.S. treasuries [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 21,944 | 7,007 |
Gross unrealized gains | ||
Gross unrealized losses | 226 | 170 |
Estimated fair value, total | 21,717 | 6,837 |
Fair Value Inputs Level 2 [Member] | U.S. Government agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,854 | 998 |
Gross unrealized gains | 16 | |
Gross unrealized losses | 1 | 1 |
Estimated fair value, total | $ 10,869 | $ 997 |
SHORT-TERM AND LONG-TERM INVE_4
SHORT-TERM AND LONG-TERM INVESTMENTS (Scheduled Maturities of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due within one year | $ 244,233 | |
Amortized cost, due after one year through five years | 246,508 | |
Amortized cost, total | 490,741 | |
Estimated fair value, due within one year | 243,729 | |
Estimated fair value, due after one year through five years | 244,998 | |
Estimated fair value, total | $ 488,727 | $ 196,771 |
SHORT-TERM AND LONG-TERM INVE_5
SHORT-TERM AND LONG-TERM INVESTMENTS (Summary of Continuous Unrealized Losses and Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | $ 254,703 | $ 136,249 |
Fair value,12 months or greater | 120,661 | 55,913 |
Fair value, Total | 375,364 | 192,162 |
Unrealized losses, less than 12 months | (767) | (711) |
Unrealized losses, 12 months or greater | (1,453) | (368) |
Unrealized losses, Total | (2,220) | (1,079) |
Corporate debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 231,845 | 135,252 |
Fair value,12 months or greater | 113,870 | 49,076 |
Fair value, Total | 345,715 | 184,328 |
Unrealized losses, less than 12 months | (754) | (711) |
Unrealized losses, 12 months or greater | (1,239) | (198) |
Unrealized losses, Total | (1,993) | (909) |
U.S. treasuries [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 14,926 | |
Fair value,12 months or greater | 6,791 | 6,837 |
Fair value, Total | 21,717 | 6,837 |
Unrealized losses, less than 12 months | (12) | |
Unrealized losses, 12 months or greater | (214) | (170) |
Unrealized losses, Total | (226) | (170) |
U.S. Government agencies [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 7,932 | 997 |
Fair value,12 months or greater | ||
Fair value, Total | 7,932 | 997 |
Unrealized losses, less than 12 months | (1) | |
Unrealized losses, 12 months or greater | ||
Unrealized losses, Total | $ (1) |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Schedule of Other Receivables and Prepaid Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets [Abstract] | ||
Government authorities | $ 30,369 | $ 26,275 |
Interest receivable | 2,867 | 2,042 |
Prepaid expenses | 45,671 | 31,810 |
Inventories | 3,434 | 3,891 |
Discontinued operations | 2,042 | |
Other | 5,109 | 4,014 |
Prepaid expenses and other current assets | $ 87,450 | $ 70,074 |
OTHER LONG-TERM ASSETS (Schedul
OTHER LONG-TERM ASSETS (Schedule of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deferred commission costs | $ 57,675 | |
Severance pay fund | 12,575 | 14,859 |
Long-term deposits and other assets | 3,792 | 4,637 |
Other long-term assets | $ 74,042 | $ 19,496 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | $ 393,291 | $ 315,693 | |
Accumulated depreciation | 252,953 | 197,418 | |
Depreciated cost | 140,338 | 118,275 | |
Depreciation expense | 49,963 | 37,924 | $ 18,422 |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 13,060 | 12,030 | |
Accumulated depreciation | 7,717 | 6,614 | |
Equipment and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Reduction in costs | 11,485 | 6,790 | |
Reduction in accumulated depreciation | 11,485 | 6,790 | |
Computers and Peripheral Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 253,325 | 212,449 | |
Accumulated depreciation | 196,820 | 163,162 | |
Internal use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 69,452 | 37,948 | |
Accumulated depreciation | 16,597 | 2,924 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 57,454 | 53,266 | |
Accumulated depreciation | $ 31,819 | $ 24,718 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 42,276 | $ 41,902 | $ 17,187 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 107,179 | $ 118,337 | $ 58,968 |
OTHER INTANGIBLE ASSETS, NET (S
OTHER INTANGIBLE ASSETS, NET (Schedule of Definite-Lived Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | $ 1,169,234 | $ 1,111,518 |
Accumulated amortization | 661,002 | 560,171 |
Other intangible assets, net | 508,232 | 551,347 |
Core Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 720,134 | 673,291 |
Accumulated amortization | 372,895 | 315,665 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 393,204 | 382,031 |
Accumulated amortization | 264,463 | 225,951 |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 55,896 | 56,196 |
Accumulated amortization | $ 23,644 | $ 18,555 |
OTHER INTANGIBLE ASSETS, NET _2
OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2019 | $ 111,602 |
2020 | 104,856 |
2021 | 96,834 |
2022 | 80,690 |
2023 and thereafter | 114,250 |
Estimated amortization expense | $ 508,232 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill from acquisitions | [1] | $ 54,203 | $ 24,346 |
inContact [Member] | |||
Adjusted goodwill | $ 5,624 | $ 3,799 | |
[1] | Including adjustments of $5,624 and $(3,799), resulting from finalization of purchase price allocations with respect to 2018 and 2017, respectively. |
GOODWILL (Schedule of Goodwill)
GOODWILL (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill [Line Items] | |||
Beginning balance, as of January 1 | $ 1,318,242 | $ 1,284,710 | |
Acquisitions | [1] | 54,203 | 24,346 |
Functional currency translation adjustments | (6,239) | 9,186 | |
Ending balance, as of December 31 | 1,366,206 | 1,318,242 | |
Customer Engagement [Member] | |||
Goodwill [Line Items] | |||
Beginning balance, as of January 1 | 1,053,922 | 1,022,198 | |
Acquisitions | [1] | 54,203 | 24,346 |
Functional currency translation adjustments | (5,034) | 7,378 | |
Ending balance, as of December 31 | 1,103,091 | 1,053,922 | |
Financial Crime and Compliance [Member] | |||
Goodwill [Line Items] | |||
Beginning balance, as of January 1 | 264,320 | 262,512 | |
Acquisitions | [1] | ||
Functional currency translation adjustments | (1,205) | 1,808 | |
Ending balance, as of December 31 | $ 263,115 | $ 264,320 | |
[1] | Including adjustments of $5,624 and $(3,799), resulting from finalization of purchase price allocations with respect to 2018 and 2017, respectively. |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 158,185 | $ 142,182 |
Accrued expenses | 104,568 | 80,893 |
Government authorities | 95,535 | 79,515 |
Discontinued operations | 189 | |
Other | 15,620 | 6,571 |
Accrued expenses and other liabilities | $ 373,908 | $ 309,350 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 181,995 | $ 54,046 |
Fair value | (3,527) | 1,250 |
Option Contracts To Hedge Payroll Expenses ILS [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 73,950 | 4,000 |
Fair value | (2,566) | 46 |
Option Contracts To Hedge Payroll Expenses INR [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 40,391 | 17,800 |
Fair value | 807 | 232 |
Option Contracts to Hedge Facility Expenses ILS [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 5,200 | |
Fair value | (137) | |
Option Contracts to Hedge Facility Expenses INR [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 3,874 | 1,846 |
Fair value | 80 | 19 |
Forward Contracts to Hedge Payroll Expenses ILS [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 53,500 | 30,000 |
Fair value | (1,926) | 947 |
Forward Contracts to Hedge Payroll Expenses INR [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 400 | |
Fair value | 6 | |
Forward Contracts to Hedge Payroll Expenses PHP [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 4,452 | |
Fair value | 187 | |
Forward Contracts to Hedge Facility Expenses PHP [Member] | Fair Value Inputs Level 2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 628 | |
Fair value | $ 28 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Expenses And Other Liabilities [Member] | Foreign Exchange Option Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ (2,703) | |
Accrued Expenses And Other Liabilities [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | (1,926) | |
Foreign Exchange Option Contracts [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative [Line Items] | ||
Derivative assets | 888 | 297 |
Foreign Exchange Forward Contracts [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative [Line Items] | ||
Derivative assets | $ 214 | $ 953 |
DERIVATIVE INSTRUMENTS (Effect
DERIVATIVE INSTRUMENTS (Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | $ (8,630) | $ 6,821 | $ 600 |
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | 4,781 | (5,586) | (132) |
Foreign Exchange Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | (6,059) | 3,317 | (202) |
Foreign Exchange Forward Contracts [Member] | Cost of revenues [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | 4,715 | (3,157) | |
Foreign Exchange Option Contracts [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | (2,571) | 3,504 | 802 |
Foreign Exchange Option Contracts [Member] | Cost Of Revenues, Operating Expenses and Discontinued Operations [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | $ 66 | $ (2,429) | $ (132) |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Lease Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lease commitments: | |||
Rent expenses | $ 20,053 | $ 14,103 | $ 23,669 |
Minimum payment under operating leases upon cancellation | 507 | ||
Lease expense related to motor vehicles lease contracts | 2,432 | 2,656 | 2,747 |
2019 | 23,450 | ||
2020 | 21,333 | ||
2021 | 17,828 | ||
2022 | 17,446 | ||
2023 | 10,749 | ||
2024 and thereafter | 24,109 | ||
Operating leases, future minimum payments | $ 114,915 | ||
Office Space, Hoboken, NJ [Member] | |||
Lease commitments: | |||
Rent expenses | $ 6,457 | ||
Sub-lease rental income | $ 3,067 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Other Commitments) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Agreements With Suppliers To Purchase Licenses And Hosting Services [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Non-cancelable obligations | $ 74,543 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES (Legal Proceedings) (Details) - inContact [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Damages sought in litigation matter | $ 20,000 |
Amended damages sought in litigation matter | 14,400 |
Portion of amended damages sought relating to pre-judgement interest | 5,000 |
Latest monetary value sought in litigation matter | 9,200 |
Liability amount that company will be limiited to in litigation matter per recent court ruling | $ 370 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Integer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Tax rate | 23.00% | 24.00% | 25.00% |
Effective tax rate | 14.70% | (10.50%) | 14.80% |
Income tax expense | $ 27,377 | $ (13,631) | $ 21,412 |
Income taxes paid | 42,858 | 33,029 | $ 28,396 |
Tax loss carry-forwards | 375,786 | ||
Tax loss carry-forwards that have no expiration date | $ 71,345 | ||
Operating loss carry-forwards expiration date | Dec. 31, 2038 | ||
Accrued interest related to income tax uncertainties | $ 501 | 1,262 | |
Deferred tax benefit | $ 30,923 | ||
New Federal corporate tax rate for periods beginning on or after January 1, 2018 | 21.00% | ||
Additional income tax | 2,975 | ||
Net operating losses expense | $ 4,786 | ||
Minimum [Member] | Other Income Tax Authority [Member] | |||
Year subject to audit | 2011 | ||
Maximum [Member] | Other Income Tax Authority [Member] | |||
Year subject to audit | 2017 | ||
Tax Year 2010 [Member] | Israel Tax Authority [Member] | |||
Settlement of tax year under examination | 2011 | ||
Earliest Tax Year [Member] | |||
Operating loss carry-forwards expiration date | Dec. 31, 2019 | ||
Latest Tax Year [Member] | |||
Operating loss carry-forwards expiration date | Dec. 31, 2038 | ||
Tax Year 2013 [Member] | Israel Tax Authority [Member] | |||
Year under examination | 2013 | ||
Settlement of tax year under examination | 2016 | ||
United Kingdom [Member] | |||
Tax rate | 19.00% | ||
United States [Member] | |||
Tax rate | 25.00% | ||
Encouragement of Industry [Member] | |||
Number of annual installments for dedcution of public offering expenses | Integer | 3 | ||
Amortization period of purchased know-how and patents | 8 years | ||
Non-Israeli Subsidiaries [Member] | |||
Undistributed earnings | $ 489,123 | ||
Unrecognized deferred tax liability | $ 79,658 | ||
From 2015 through 2016 [Member] | The election [Member] | |||
Tax rate | 16.00% | ||
2017 and thereafter [Member] | The election [Member] | |||
Tax rate | 12.00% | ||
2017 [Member] | Income not eligible for Preferred Enterprise benefits [Member] | |||
Tax rate | 24.00% | ||
2018 and thereafter [Member] | Income not eligible for Preferred Enterprise benefits [Member] | |||
Tax rate | 23.00% | ||
2012 [Member] | |||
Tax rate | 20.00% |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating losses carryforward and tax credits | $ 88,528 | $ 79,196 |
Share based payments | 21,631 | 16,142 |
Research and development costs | 3,473 | 3,606 |
Reserves, allowances and other | 21,838 | 13,313 |
Deferred tax assets before valuation allowance | 135,470 | 112,257 |
Valuation allowance | (11,211) | (8,853) |
Deferred tax assets | 124,259 | 103,404 |
Deferred tax liabilities: | ||
Acquired intangibles | (126,318) | (142,352) |
Acquired deferred revenue | (2,033) | (2,600) |
Internal Use Software and other Fixed Assets | (15,677) | (4,398) |
Prepaid Compensation Expenses | (12,062) | |
Deferred tax liabilities | (156,090) | (149,350) |
Deferred tax liabilities, net | (31,831) | (45,946) |
Deferred tax assets | 12,309 | 11,850 |
Deferred tax liabilities | (44,140) | (57,796) |
Deferred tax liabilities, net | $ (31,831) | $ (45,946) |
TAXES ON INCOME (Schedule of Ef
TAXES ON INCOME (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income before taxes on income, as reported in the consolidated statements of income | $ 186,715 | $ 129,660 | $ 144,481 | |
Statutory tax rate in Israel | 23.00% | 24.00% | 25.00% | |
Preferred Enterprise / Preferred Technology Enterprise benefits | [1] | (13.00%) | (16.80%) | (8.90%) |
Changes in valuation allowance | (0.00%) | 0.00% | 1.00% | |
Earnings taxed under foreign law | (1.80%) | (4.60%) | (7.70%) | |
Tax settlements and other adjustments | 7.00% | 14.30% | 5.80% | |
U.S. Tax Reform one-time adjustment | (1.60%) | (23.90%) | ||
Other | 1.10% | (3.50%) | (0.40%) | |
Effective tax rate | 14.70% | (10.50%) | 14.80% | |
Basic | $ 2.60 | $ 2.37 | $ 1.96 | |
Diluted | 2.52 | 2.31 | 1.92 | |
Approved, Privileged and Preferred Enterprise [Member] | ||||
Basic | 0.39 | 0.36 | 0.22 | |
Diluted | $ 0.38 | $ 0.35 | $ 0.21 | |
[1] | The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits" status on net earnings per ordinary share is as follows: |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income before Income Tax, Domestic And Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income before taxes on income | $ 186,715 | $ 129,660 | $ 144,481 |
Domestic Country [Member] | |||
Income before taxes on income | 193,664 | 188,070 | 131,111 |
Foreign Country [Member] | |||
Income before taxes on income | $ (6,949) | $ (58,410) | $ 13,370 |
TAXES ON INCOME (Schedule of Ta
TAXES ON INCOME (Schedule of Taxes on Income) (Current and Deferred) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | $ 57,549 | $ 57,174 | $ 47,318 |
Deferred | (30,172) | (70,805) | (25,906) |
Taxes on income | 27,377 | (13,631) | 21,412 |
Domestic Country [Member] | |||
Current | 34,370 | 22,808 | 27,932 |
Deferred | (4,423) | 4,865 | 165 |
Taxes on income | 29,947 | 27,673 | 28,097 |
Foreign Country [Member] | |||
Current | 23,179 | 34,366 | 19,386 |
Deferred | (25,749) | (75,670) | (26,071) |
Taxes on income | $ (2,570) | $ (41,304) | $ (6,685) |
TAXES ON INCOME (Schedule of _2
TAXES ON INCOME (Schedule of Taxes on Income) (Domestic and Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 29,947 | $ 27,673 | $ 28,097 |
Foreign | (2,570) | (41,304) | (6,685) |
Taxes on income | $ 27,377 | $ (13,631) | $ 21,412 |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Uncertain tax positions, beginning of year | $ 43,984 | $ 26,659 |
Increases in tax positions for prior years | 5,121 | 5,105 |
Increases in tax positions for current year | 13,353 | 15,140 |
Settlements | (3,471) | |
Expiry of the statute of limitations | (427) | (2,920) |
Uncertain tax positions, end of year | $ 58,560 | $ 43,984 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2018₪ / shares | Dec. 31, 2017₪ / shares | Jan. 10, 2017USD ($) | May 06, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit | $ 115,463 | ||||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit, expected to be recognized, years | 4 years | ||||||
Cash dividend paid, per share | $ / shares | $ 0.16 | $ 0.64 | |||||
Ordinary shares, par value | ₪ / shares | ₪ 1 | ₪ 1 | |||||
Maximum [Member] | Treasury shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 150,000 | $ 100,000 | |||||
2016 Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Price of options, as a percent of fair market value of ordinary shares | 1.89% | ||||||
Options and resticted share granted | shares | 1,152,734 | ||||||
American Depositary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares, par value | ₪ / shares | ₪ 1 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average grant-date fair value, options granted | $ / shares | $ 89.54 | $ 61.54 | $ 46.24 | ||||
Total intrinsic value, options exercised | $ 68,749 | $ 42,592 | $ 35,664 | ||||
Options and resticted share granted | shares | 308,884 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Option Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 21.23% | 21.69% | 21.05% |
Expected volatility, maximum | 21.83% | 22.90% | 25.92% |
Risk free interest rate, minimum | 2.42% | 1.53% | 0.58% |
Risk free interest rate, maximum | 3.04% | 2.00% | 2.04% |
Expected term (in years) | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend | 0.00% | 0.00% | 1.00% |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of options | ||
Outstanding at January 1, 2018 | 1,676,130 | |
Granted | 308,884 | |
Exercised | (661,379) | |
Cancelled | (1,924) | |
Forfeited | (136,864) | |
Outstanding at December 31, 2018 | 1,184,847 | 1,676,130 |
Exercisable | 410,237 | |
Weighted average exercise price | ||
Outstanding at January 1, 2018 | $ 23.07 | |
Granted | 15.94 | |
Exercised | 28.55 | |
Cancelled | 22.76 | |
Forfeited | 7.22 | |
Outstanding at December 31, 2018 | 19.82 | $ 23.07 |
Exercisable | $ 36.24 | |
Weighted-average remaining contractual term (in years) | ||
Outstanding at December 31 | 4 years 5 months 20 days | 4 years 5 months 12 days |
Exercisable | 3 years 7 months 17 days | |
Aggregate intrinsic value | ||
Outstanding at January 1, 2018 | $ 115,390 | |
Outstanding at December 31, 2018 | 104,731 | $ 115,390 |
Exercisable | $ 29,523 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule of Options Outstanding by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 1,184,847 |
Weighted average remaining contractual term (Years) | 4 years 5 months 20 days |
Weighted Average Exercise Price | $ 19.82 |
Options Exercisable as of December 31, 2018 | shares | 410,237 |
Weighted average exercise price of options exercisable | $ 36.24 |
0.27 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 806,066 |
Weighted average remaining contractual term (Years) | 4 years 6 months |
Weighted Average Exercise Price | $ 0.27 |
Options Exercisable as of December 31, 2018 | shares | 163,219 |
Weighted average exercise price of options exercisable | $ 0.27 |
0.69-9.89 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 5,072 |
Weighted average remaining contractual term (Years) | 4 years 11 months 12 days |
Weighted Average Exercise Price | $ 7.08 |
Options Exercisable as of December 31, 2018 | shares | 4,775 |
Weighted average exercise price of options exercisable | $ 7.11 |
Range of exercise price, lower | 0.69 |
Range of exercise price, upper | $ 9.89 |
11.40-15.16 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 957 |
Weighted average remaining contractual term (Years) | 1 year 3 months 26 days |
Weighted Average Exercise Price | $ 12.63 |
Options Exercisable as of December 31, 2018 | shares | 957 |
Weighted average exercise price of options exercisable | $ 12.63 |
Range of exercise price, lower | 11.40 |
Range of exercise price, upper | $ 15.16 |
17.72 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 346 |
Weighted average remaining contractual term (Years) | 2 years 2 months 8 days |
Weighted Average Exercise Price | $ 17.72 |
Options Exercisable as of December 31, 2018 | shares | 346 |
Weighted average exercise price of options exercisable | $ 17.72 |
35.62-49.72 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 156,319 |
Weighted average remaining contractual term (Years) | 4 years 7 months 6 days |
Weighted Average Exercise Price | $ 41.5 |
Options Exercisable as of December 31, 2018 | shares | 93,581 |
Weighted average exercise price of options exercisable | $ 40.74 |
Range of exercise price, lower | 35.62 |
Range of exercise price, upper | $ 49.72 |
54.95-80.76 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 153,648 |
Weighted average remaining contractual term (Years) | 3 years 9 months 14 days |
Weighted Average Exercise Price | $ 70.73 |
Options Exercisable as of December 31, 2018 | shares | 122,896 |
Weighted average exercise price of options exercisable | $ 70.24 |
Range of exercise price, lower | 54.95 |
Range of exercise price, upper | $ 80.76 |
85.14-96.74 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 62,439 |
Weighted average remaining contractual term (Years) | 5 years 4 months 9 days |
Weighted Average Exercise Price | $ 93.77 |
Options Exercisable as of December 31, 2018 | shares | 24,463 |
Weighted average exercise price of options exercisable | $ 95.14 |
Range of exercise price, lower | 85.14 |
Range of exercise price, upper | $ 96.74 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Units Activity) (Details) - 12 months ended Dec. 31, 2018 - Restricted Stock Awards And Restricted Stock Units [Member] | $ / sharesshares | ₪ / shares | |
Number of RSU and RSA | |||
Outstanding at January 1, 2018 | [1] | 1,525,012 | |
Granted | [1] | 857,067 | |
Vested | [1] | (453,904) | |
Cancelled | [1] | (797) | |
Forfeited | [1] | (168,308) | |
Outstanding at December 31, 2018 | [1] | 1,759,070 | |
Par value NIS | ₪ / shares | ₪ 1 | ||
Par value USD | $ / shares | $ 0.27 | ||
[1] | NIS 1 par value which represents approximately $0.27 |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 67,223 | $ 56,980 | $ 40,547 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 11,000 | 11,337 | 7,878 |
Research and development, net [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 7,363 | 9,038 | 5,676 |
Selling and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 27,455 | 23,107 | 16,403 |
General and administrative expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 21,405 | $ 13,498 | $ 10,590 |
LONG TERM DEBT (Narrative) (Det
LONG TERM DEBT (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 13, 2016 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 14, 2016 |
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 10,158 | ||||
Revolving credit facility | $ 75,000 | ||||
Revolving credit facility expiration date | Dec. 31, 2021 | ||||
Amortization of debt issuance costs | $ 794 | $ 6,334 | |||
Debt issuance costs | $ 1,667 | ||||
ADS [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of exchangeable note shares | (3,457,475) | ||||
Strike price | $ 101.82 | ||||
Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 5,791 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.50% | ||||
Term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 215,000 | $ 475,000 | |||
Debt issuance costs | $ 5,300 | ||||
Prepaid principal amount | 260,000 | ||||
Remaining principal amount | $ 215,000 | ||||
Term Debt [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate | 1.00% | ||||
Term Debt [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate | 1.00% | ||||
Term Debt [Member] | Eurocurrency loans ranges [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Total net leverage ratio | 1.25% | ||||
Term Debt [Member] | Eurocurrency loans ranges [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Total net leverage ratio | 2.00% | ||||
Term Debt [Member] | ABR loans ranges [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Total net leverage ratio | 0.25% | ||||
Term Debt [Member] | ABR loans ranges [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Total net leverage ratio | 1.00% |
LONG TERM DEBT (Schedule of Com
LONG TERM DEBT (Schedule of Component of Term Debt Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Principal | $ 215,000 | $ 215,000 |
Less: Debt issuance costs, net of amortization | (2,692) | (3,486) |
Net carrying amount | $ 212,308 | $ 211,514 |
LONG TERM DEBT (Schedule of Int
LONG TERM DEBT (Schedule of Interest Expense Recognized) (Details) (USD $) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Amortization of debt issuance costs | $ 794 | $ 6,334 |
Interest expense | 7,083 | 5,558 |
Total interest expense recognized | $ 7,877 | $ 11,892 |
Effective interest rate | 3.80% | 3.30% |
LONG TERM DEBT (Schedule of Out
LONG TERM DEBT (Schedule of Outstanding Exchangeable) (Details) - Exchangeable Notes [Member] | 1 Months Ended |
Jan. 31, 2017USD ($)$ / shares | |
Issuance date | Jan. 18, 2017 |
Maturity date | Jan. 15, 2024 |
Principal amount | $ 287,500 |
Cash coupon rate (per annum) | 1.25% |
Conversion rate effective September 15, 2023 (per $1000 principal amount) | 12.026 |
Effective conversion price effective September 15, 2023 (per ADS) | $ / shares | $ 83.15 |
Principal amount of Exchangeable Notes | $ 1,000 |
LONG TERM DEBT (Schedule of Car
LONG TERM DEBT (Schedule of Carring Values) (Details) (USD $) - Exchangeable Notes [Member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 |
Principal | $ 287,500 | $ 287,500 | $ 287,500 |
Less: Debt issuance costs, net of amortization | (4,488) | (5,182) | |
Unamortized discount | (39,335) | (46,190) | |
Net liability carrying amount | 243,677 | 236,128 | |
Equity component - net carrying value | $ 51,176 | $ 51,176 |
LONG TERM DEBT (Schedule of I_2
LONG TERM DEBT (Schedule of Interest Expense Related) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of debt issuance costs | $ 8,670 | $ 13,547 | $ 379 |
Interest expense | 11,204 | 9,580 | $ 1,861 |
Exchangeable Notes [Member] | |||
Amortization of debt issuance costs | 694 | 609 | |
Non-cash amortization of debt discount | 6,855 | 6,278 | |
Interest expense | 3,594 | 3,414 | |
Net liability carrying amount | $ 11,143 | $ 10,301 | |
Equity component - net carrying value | 4.68% | 4.68% |
REPORTABLE SEGMENTS AND GEOGR_3
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Financial Information of The Company's Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,444,519 | $ 1,332,152 | $ 1,015,542 | ||
Operating income (loss) | 197,616 | 150,071 | 134,176 | ||
Customer Engagement [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 1,156,142 | 1,051,350 | 754,398 | [2] |
Operating income (loss) | [1] | 223,078 | 175,247 | 202,893 | [2] |
Financial Crime and Compliance [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 288,377 | 280,802 | 261,144 | ||
Operating income (loss) | 109,464 | 101,774 | 89,990 | ||
Not Allocated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | |||||
Operating income (loss) | $ (134,926) | $ (126,950) | $ (158,707) | ||
[1] | Includes the results of companies which were acquired in 2018 and 2017 and are being integrated within the Customer Engagement segment. | ||||
[2] | Includes the results of a certain operation (formerly part of the Security Solutions segment), which was retained and integrated within the Customer Engagement operating segment. |
REPORTABLE SEGMENTS AND GEOGR_4
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 140,338 | $ 118,275 |
Customer Engagement [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 130,425 | 104,981 |
Financial Crime and Compliance [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 8,262 | 9,636 |
Not Allocated [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,651 | $ 3,658 |
REPORTABLE SEGMENTS AND GEOGR_5
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Total Revenues from External Customers by Geographical Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,444,519 | $ 1,332,152 | $ 1,015,542 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,123,866 | 1,035,871 | 720,520 |
Includes Europe, the Middle East (excluding Israel) and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 202,521 | 186,268 | 189,223 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,402 | 3,693 | 4,295 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 113,730 | $ 106,320 | $ 101,504 |
REPORTABLE SEGMENTS AND GEOGR_6
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 140,338 | $ 118,275 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 90,333 | 70,404 | |
Includes Europe, the Middle East (excluding Israel) and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | [1] | 2,947 | 3,557 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 40,076 | 37,571 | |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 6,982 | $ 6,743 | |
[1] | Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED STATEMENTS OF INCOME_3
SELECTED STATEMENTS OF INCOME DATA (Schedule of Research and Development Costs, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | |||
Total costs | $ 218,226 | $ 211,406 | $ 151,698 |
Less - grants and participations | (2,171) | (2,363) | (1,668) |
Less - capitalization of software development costs | (32,225) | (27,936) | (8,502) |
Research and development, net | $ 183,830 | $ 181,107 | $ 141,528 |
SELECTED STATEMENTS OF INCOME_4
SELECTED STATEMENTS OF INCOME DATA (Schedule of Financial Income and Other, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | |||
Interest and amortization/accretion of premium/discount on marketable securities, net | $ 7,521 | $ 2,537 | $ 5,607 |
Exchange rates differences | 241 | 3,961 | |
Realized gain on marketable securities | 3,388 | ||
Interest | 3,778 | 1,149 | 953 |
Financial income | 11,299 | 3,927 | 13,909 |
Interest | (11,204) | (9,580) | (1,861) |
Debt issuance costs, amortization | (1,813) | (6,943) | (338) |
Exchangeable Senior Notes amortization of discount | (6,855) | (6,278) | |
Exchange rates differences | (430) | ||
Other | (1,936) | (1,518) | (925) |
Financial expense | (22,238) | (24,319) | (3,124) |
Other expenses, net | 38 | (19) | (480) |
Financial income and other, net | $ (10,901) | $ (20,411) | $ 10,305 |
SELECTED STATEMENTS OF INCOME_5
SELECTED STATEMENTS OF INCOME DATA (Schedule of Net Earnings Per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | |||
Net income from continuing operations available to ordinary shareholders | $ 159,338 | $ 143,291 | $ 123,069 |
Net income from discontinued operations available to ordinary shareholders | (6,149) | ||
Net income to ordinary shareholders | $ 159,338 | $ 143,291 | $ 116,920 |
Denominator for basic net earnings per share - Weighted average number of shares | 61,387 | 60,444 | 59,667 |
Effect of dilutive securities: Add - employee stock options and RSU | 1,785 | 1,675 | 1,368 |
Warrants issued in the exchangeable notes transaction | 137 | ||
Denominator for diluted net earnings per share - adjusted weighted average shares | 63,309 | 62,119 | 61,035 |