Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | CHKP |
Entity Registrant Name | CHECK POINT SOFTWARE TECHNOLOGIES LTD |
Entity Central Index Key | 0001015922 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 155,380,498 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 303,687 | $ 245,014 |
Short-term bank deposits | 5,450 | 450 |
Marketable securities | 1,442,642 | 1,165,266 |
Trade receivables, net | 495,390 | 472,223 |
Prepaid expenses and other current assets | 74,738 | 81,478 |
Total current assets | 2,321,907 | 1,964,431 |
LONG-TERM ASSETS: | ||
Marketable securities | 2,287,345 | 2,437,315 |
Property and equipment, net | 78,514 | 77,767 |
Deferred tax asset, net | 84,688 | 119,431 |
Other intangible assets, net | 40,967 | 18,395 |
Goodwill | 950,572 | 812,012 |
Other assets | 64,220 | 33,575 |
Total long-term assets | 3,506,306 | 3,498,495 |
Total assets | 5,828,213 | 5,462,926 |
CURRENT LIABILITIES: | ||
Trade payables | 20,763 | 12,222 |
Employees and payroll accruals | 156,958 | 139,848 |
Deferred revenues | 980,175 | 878,287 |
Accrued expenses and other current liabilities | 173,974 | 176,568 |
Total current liabilities | 1,331,870 | 1,206,925 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 357,779 | 308,286 |
Income tax accrual | 356,750 | 337,453 |
Accrued severance pay | 9,425 | 10,139 |
Total long-term liabilities | 723,954 | 655,878 |
Total liabilities | 2,055,824 | 1,862,803 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares, NIS 0.01 par value, 500,000,000 shares authorized at December 31, 2018 and 2017; 261,223,970 shares issued at December 31, 2018 and 2017; 155,380,498 and 159,034,688 shares outstanding at December 31, 2018 and 2017, respectively | 774 | 774 |
Additional paid-in capital | 1,597,800 | 1,305,130 |
Treasury shares at cost 105,843,472 and 102,189,282 ordinary shares at December 31, 2018 and 2017, respectively | (6,844,702) | (5,893,182) |
Accumulated other comprehensive loss | (24,497) | (15,634) |
Retained earnings | 9,043,014 | 8,203,035 |
Total shareholders' equity | 3,772,389 | 3,600,123 |
Total liabilities and shareholders' equity | $ 5,828,213 | $ 5,462,926 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 261,223,970 | 261,223,970 |
Ordinary shares, shares outstanding | 155,380,498 | 159,034,688 |
Treasury shares, shares | 105,843,472 | 102,189,282 |
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 | $ 1,916,475 | $ 1,854,658 | $ 1,741,301 | |
Operating expenses: | ||||
Total cost of revenues | 201,379 | 212,963 | 202,003 | |
Research and development | 211,523 | 192,386 | 178,372 | |
Selling and marketing | 500,854 | 433,427 | 420,526 | |
General and administrative | 88,945 | 91,965 | 88,130 | |
Total operating expenses | 1,002,701 | 930,741 | 889,031 | |
Operating income | 913,774 | 923,917 | 852,270 | |
Financial income, net | 65,066 | 47,029 | 44,402 | |
Income before taxes on income | 978,840 | 970,946 | 896,672 | |
Taxes on income | 157,535 | 168,023 | 171,825 | |
Net income | $ 821,305 | $ 802,923 | $ 724,847 | |
Basic earnings per ordinary share | $ 5.24 | $ 4.93 | $ 4.26 | |
Diluted earnings per ordinary share | $ 5.15 | $ 4.82 | $ 4.18 | |
Products and licenses | ||||
Revenues: | ||||
Total revenues | $ 525,557 | $ 559,026 | $ 572,964 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 91,949 | 104,210 | 105,967 |
Security subscriptions | ||||
Revenues: | ||||
Total revenues | 542,323 | 480,352 | 389,885 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 17,725 | 18,869 | 10,841 |
Software updates and maintenance | ||||
Revenues: | ||||
Total revenues | 848,595 | 815,280 | 778,452 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 88,894 | 87,700 | 83,011 |
Amortization of technology | ||||
Operating expenses: | ||||
Total cost of revenues | $ 2,811 | $ 2,184 | $ 2,184 | |
[1] | Not including amortization of technology shown separately below. |
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 | $ 821,305 | $ 802,923 | $ 724,847 |
Change in unrealized losses on marketable securities: | |||
Unrealized losses arising during the period, net of tax benefit of $2,783, $2,056 and $1,075, respectively | (9,757) | (6,537) | (2,793) |
Losses (gains) reclassified into earnings, net of tax expense (benefit) of $(416), $(41) and $728, respectively | 1,387 | 135 | (2,265) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | (8,370) | (6,402) | (5,058) |
Change in unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during the period, net of tax expenses (benefit) of $(624), $561 and $30, respectively | (4,574) | 4,114 | 159 |
Losses (gains) reclassified into earnings, net of tax expenses (benefit) of $(556), $559 and $19, respectively | 4,081 | (4,096) | (101) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Total | (493) | 18 | 58 |
Other comprehensive loss, net of tax | (8,863) | (6,384) | (5,000) |
Comprehensive income | $ 812,442 | $ 796,539 | $ 719,847 |
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] | |||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | $ 2,783 | $ 2,056 | $ 1,075 |
Reclassification of unrealized losses (gains) expense (benefit) on marketable securities to income, tax expense | (416) | (41) | 728 |
Unrealized gains (losses) on cash flow hedges, tax expense (benefit) | (624) | 561 | 30 |
Reclassification of unrealized losses (gains) on cash flow hedges to earnings, tax expense (benefit) | $ (556) | $ 559 | $ 19 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Share capital | Additional paid-in capital | Treasury shares at cost | Accumulated other comprehensive income (Loss) | Retained earnings |
Balance at Dec. 31, 2015 | $ 3,531,866 | $ 774 | $ 987,331 | $ (4,043,271) | $ (4,250) | $ 6,591,282 |
Excess Tax benefit from stock-based compensation | 17,380 | 17,380 | ||||
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 129,196 | 54,200 | 74,996 | |||
Treasury shares at cost | (987,897) | (987,897) | ||||
Stock-based compensation | 80,731 | 80,731 | ||||
Other comprehensive loss, net of tax | (5,000) | (5,000) | ||||
Net income | 724,847 | 724,847 | ||||
Balance at Dec. 31, 2016 | 3,491,123 | 774 | 1,139,642 | (4,956,172) | (9,250) | 7,316,129 |
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 127,518 | 69,206 | 58,312 | |||
Treasury shares at cost | (995,322) | (995,322) | ||||
Stock-based compensation | 93,515 | 93,515 | ||||
Other comprehensive loss, net of tax | (6,384) | (6,384) | ||||
Net income | 802,923 | 802,923 | ||||
Balance at Dec. 31, 2017 | 3,600,123 | 774 | 1,305,130 | (5,893,182) | (15,634) | 8,203,035 |
Cumulative-effect adjustment from adoption | Accounting Standards Update 2016-09 | 86,750 | 2,767 | 83,983 | |||
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 353,501 | 201,156 | 152,345 | |||
Treasury shares at cost | (1,103,865) | (1,103,865) | ||||
Stock-based compensation | 89,327 | 89,327 | ||||
Other comprehensive loss, net of tax | (8,863) | (8,863) | ||||
Fair value of awards attributable to pre-acquisition services | 2,187 | 2,187 | ||||
Net income | 821,305 | 821,305 | ||||
Balance at Dec. 31, 2018 | 3,772,389 | $ 774 | $ 1,597,800 | $ (6,844,702) | $ (24,497) | 9,043,014 |
Cumulative-effect adjustment from adoption | ASC 606 | 19,116 | 19,116 | ||||
Cumulative-effect adjustment from adoption | Accounting Standards Update 2016-16 | $ (442) | $ (442) |
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] | |||
Issuance of treasury shares under stock purchase plans, ordinary shares | 6,686,810 | 2,595,563 | 3,372,115 |
Issuance of treasury shares under stock purchase plans, ordinary shares withheld for taxes | 45,592 | 50,644 | 37,310 |
Treasury shares | 10,341,000 | 9,535,992 | 12,298,434 |
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 | $ 821,305 | $ 802,923 | $ 724,847 | |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 16,402 | 12,876 | 10,883 | |
Amortization of premium and accretion of discount on marketable securities, net | 13,560 | 20,012 | 23,388 | |
Realized loss (gain) on sale of marketable securities, net | 1,803 | 176 | (2,993) | |
Amortization of intangible assets | 4,386 | 3,760 | 3,853 | |
Stock-based compensation | 89,327 | 87,459 | 82,732 | |
Deferred income tax expense (benefit) | 16,263 | 64,630 | (32,594) | |
Excess tax benefit from stock-based compensation | (17,380) | |||
Decrease (increase) in accrued severance pay, net | (168) | 711 | 147 | |
Decrease (increase) in trade receivables, net | (21,826) | 6,284 | (67,744) | |
Decrease in prepaid expenses and other current assets and other assets | 1,984 | 5,615 | 11,234 | |
Increase (decrease) in trade payables | 6,636 | (7,795) | 2,184 | |
Increase (decrease) in employees and payroll accruals | 20,083 | (4,546) | 19,345 | |
Increase (decrease) in income tax accrual and accrued expenses and other current liabilities | [1] | 28,357 | (3,486) | 31,565 |
Increase in deferred revenues | 144,969 | 120,989 | 159,801 | |
Net cash provided by operating activities | 1,143,081 | 1,109,608 | 949,268 | |
Cash flows from investing activities: | ||||
Proceeds from maturity of marketable securities | 1,464,384 | 1,363,698 | 1,525,929 | |
Proceeds from sale of marketable securities | 150,235 | 66,101 | 235,252 | |
Proceeds from short-term bank deposits | 106,609 | |||
Investment in marketable securities | (1,767,549) | (1,686,445) | (1,746,931) | |
Investment in short-term bank deposits | (5,000) | (100,000) | ||
Cash paid in conjunction with acquisition, net of acquired cash | (154,902) | |||
Purchase of property and equipment | (17,149) | (28,784) | (24,050) | |
Net cash used in investing activities | (329,981) | (178,821) | (109,800) | |
Cash flows from financing activities: | ||||
Proceeds from issuance of treasury shares upon exercise of options | 353,501 | 127,518 | 129,196 | |
Purchase of treasury shares at cost | (1,103,865) | (995,322) | (987,897) | |
Payments related to shares withheld for taxes | [1] | (4,624) | (5,397) | (3,031) |
Excess tax benefit from stock-based compensation | 17,380 | |||
Net cash used in financing activities | (754,988) | (873,201) | (844,352) | |
Increase (decrease) in cash and cash equivalents | 58,112 | 57,586 | (4,884) | |
Cash and cash equivalents at the beginning of the year | 245,014 | 187,428 | 192,312 | |
Cash and cash equivalents at the end of the year | 303,687 | 245,014 | 187,428 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid during the year for taxes on income | 67,940 | $ 143,036 | $ 180,071 | |
Non-cash investing activity | ||||
Fair value of awards attributable to pre-acquisition services | $ 2,187 | |||
[1] | Payments related to shares withheld for taxes during the year ended December 31, 2016 were reclassified from operating activity to financing activity following ASU 2016-09 adoption. |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Check Point Software Technologies Ltd., an Israeli corporation (“Check Point Ltd.”), and subsidiaries (collectively, the “Company” or “Check Point”), develop, market and support wide range of products and services for IT security, by offering a multilevel security architecture that defends enterprises’ cloud, network and mobile device held information. The Company operates in one operating and reportable segment and its revenues are mainly derived from the sales of its network and data security products, including licenses, related software updates, maintenance and security subscriptions. The Company sells its products worldwide primarily through multiple distribution channels (“channel partners”), including distributors, resellers, system integrators, Original Equipment Manufacturers (“OEMs”) and Managed Security Service Providers (“MSPs”). b. During 2018, 2017 and 2016, approximately 36%, 36% and 37% of the Company’s revenues were derived from two channel partners. Revenues derived from one channel partner in 2018, 2017 and 2016 were 17%, 18% and 19%, respectively, and revenues derived from the other channel partner in 2018, 2017 and 2016 were 18%, 18%, and 18%, respectively, of the Company’s revenues in such years. Trade receivable balances from these two channel partners aggregated to $ 207,938 and $ 189,236 as of December 31, 2018 and 2017, respectively. |
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 are prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in United States dollars: Most of the Company’s revenues and costs are denominated in United States dollar (“dollar”). The Company’s management believes that the dollar is the primary currency of the economic environment in which Check Point Ltd. and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar re-measured re-measured c. Principles of consolidation: The consolidated financial statements include the accounts of Check Point Ltd. and subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible to cash and with original maturities of three months or less at acquisition. e. Short-term bank deposits: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values. f. Investments in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments - Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. The Company’s securities are reviewed for impairment in accordance with ASC 320-10-35. g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 33 - 50 Office furniture and equipment 10 - 20 Building 4 Leasehold improvements The shorter of term of the lease or the useful life of the asset h. 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 acquired technology and acquired trademarks and tradenames 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. i. Goodwill: Goodwill has been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, “Intangibles - Goodwill and other” (“ASC No. 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. ASC No. 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step two-step The Company operates in one operating segment, and this segment comprises its only reporting unit. The Company performs the first step of the quantitative goodwill impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present and compares the fair value of the reporting unit with its carrying value. During the years 2018, 2017 and 2016, no impairment losses have been identified. j. Other intangible assets, net: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 8 to 20 years. These intangible assets consist of core technology, trademarks and trade names which are amortized over their estimated useful lives on a straight-line basis. k. Impairment of long-lived assets including intangible assets subject to amortization: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years 2018, 2017 and 2016, no impairment indicators have been identified. l. Manufacturing partner and supplier liabilities: The Company purchases manufactured products from its original design manufacture (“ODM”). The Company generally does not own the manufactured products. ODM’s provide services of design, manufacture, orders fulfillment and support with a full turn-key m. Research and development costs: Research and development costs are charged to the statements of income as incurred. ASC No. 985-20, Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. n. Revenue recognition: The Company derives its revenues mainly from sales of products and licenses, security subscriptions and software updates and maintenance. The Company’s products are generally integrated with software that is essential to the functionality of the product. The Company sells its products primarily through channel partners including distributors, resellers, OEMs (Original Equipment Manufacturers), system integrators and MSPs (Managed Service Providers), all of whom are considered end-users. The Company’s security subscriptions provide customers with access to its suite of security solutions and is sold as a service. The Company’s software updates and maintenance provide customers with rights to unspecified software product upgrades released during the term of the agreement and include maintenance services to end-user The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies 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. Revenues from sales of products and licenses are recognized upon shipment when control of the promised goods is transferred to the customer, or upon electronic transfer of the Certificate Key to the Customer. Revenues from security subscriptions and from software updates and maintenance are recognized ratably over the term of the agreement. The Company’s arrangements typically contain various combinations of its products and licenses, security subscriptions and software updates and maintenance, which are distinct and are accounted for as a separate performance obligations. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price using the prices charged for a performance obligation when sold separately. Deferred revenues represent mainly the unrecognized revenue billed for security subscriptions and for software updates and maintenance. Such revenues are recognized ratably over the term of the related agreement. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $ 878,538 for the year ended December 31, 2018. Revenue expected to be recognized from remaining performance obligations was $ 1,557,552 as of December 31, 2018, of which the Company expects to recognize approximately $ 1,069,938 over the next 12 months and the remainder thereafter. The Company records a provision for estimated sales returns, rebates, stock rotations and other rights provided to customers on product and services based on historical sales returns, analysis of credit memo data, rebate plans, stock rotation arrangements and other known factors. This provision is accounted for as variable consideration that is deducted from revenue in the period in which the revenue is recognized. Such provision amounted to $ 8,491 as of December 31, 2018 and is included in accrued expenses and other current liabilities in the consolidated balance sheet. Under Topic 605, the provision of $ 8,978 as of December 31, 2017 was presented as a reduction to trade receivables. Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates are commensurate with the renewal commission rates. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of income. If the amortization period of those costs is one year or less, the costs are expensed as incurred. As of December 31, 2018 the amount of deferred commission was $22,623 and included in other long term assets. For information regarding disaggregated revenues, please refer to Note 15 below. o. Cost of revenues: Cost of products and licenses is comprised of cost of software and hardware production, manuals, packaging and shipping. Cost of security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and cost of customer support related to these services. Cost of software updates and maintenance is mainly comprised of cost of post-sale customer support. Amortization of technology is comprised of amortization of core technology assets which are used in the Company’s operations, and is presented separately as part of cost of revenues. p. Severance pay: The Company’s liability for severance pay for periods prior to January 1, 2007, is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Employees were entitled to one month’s salary for each year of employment, or a portion thereof. Until January 1, 2007, the Company’s liability was partially funded by monthly payments deposited with insurers; any unfunded amounts are covered by a provision established by the Company. The carrying value of deposited funds in respect to the severance liability for services prior to January 1, 2007, includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. Effective January 1, 2007, the Company’s agreements with employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay and no additional payments is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the required deposit amounts have been paid. Severance expenses for the years ended December 31, 2018, 2017 and 2016, were $ 11,267, $ 10,180 and $ 8,165 respectively. q. Employee benefit plan: 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 50%, but generally not greater than $ 18.5 per year (and an additional amount of $ 6 for employees aged 50 and over), of their annual compensation to the plan through salary deferrals, subject to statutory limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In 2018, 2017 and 2016, the Company’s matching contribution to the plan amounted to $ 4,163, $ 3,613 and $ 2,290 respectively. r. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined for temporary 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 amounts more likely than not to be realized. The Company accrues interest and indexation related to unrecognized tax benefits on its taxes on income. ASC No. 740 contains a two-step 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 related to unrecognized tax benefits in taxes on income. s. Advertising costs: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2018, 2017 and 2016, were $ 3,106, $ 1,764 and $ 3,127 respectively. t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and foreign currency derivative contracts. The majority of the Company’s cash and cash equivalents and short-term bank deposits are deposited in major banks in the U.S., Israel and Europe. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be withdrawn upon demand and therefore bear low risk. Marketable securities are held mainly by Check Point Ltd., the Company’s Singaporean subsidiary, Canadian subsidiary and the U.S. subsidiary, and are invested in securities denominated in U.S. dollar. The Company’s marketable securities consist of investments in government, corporate and government sponsored enterprises debentures. The Company’s investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company’s trade receivables are geographically dispersed and derived from sales to channel partners mainly in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for doubtful accounts based on factors that may affect a customers’ ability to pay, such as known disputes, age of the receivable balance and past experience. Allowance for doubtful accounts amounted to $ 1,033 and $ 1,911 as of December 31, 2018 and 2017, respectively. The Company writes off receivables when they are deemed uncollectible, having exhausted all collection efforts. Actual collection experience may not meet expectations and may result in increased bad debt expense. Bad debt expense (income) amounted to $ (878), $ (344) and $ 154 in 2018, 2017 and 2016, respectively. Total write offs during 2018, 2017 and 2016 amounted to $ 627, $ 29 and $ 0, respectively. u. Derivatives and hedging: The Company accounts for derivatives and hedging based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”). ASC No. 815 requires the Company to recognize all derivatives 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, as well as the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are designated as such, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in financial income, net. The Company entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As of December 31, 2018 and 2017, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting, in the notional amount of $ 337,498 and $ 338,053, respectively. The Company measured the fair value of the contracts in accordance with ASC No. 820, “Fair Value Measurement” (“ASC No. 820”) (classified as level 2 of the fair value hierarchy). The net gains (losses) resulting from these forward contracts recognized in financial income, net during 2018, 2017 and 2016 were $ (33,330), $ 25,086, and $ 1,822, respectively. The fair value of the Company’s outstanding forward contracts at December 31, 2018 and 2017 amounted to liabilities of $ 45 and $ 107, respectively. The Company entered into forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekel and in Euro. As of December 31, 2018 and 2017, the Company had outstanding forward contracts in the notional amount of $ 112,053 and $ 7,354, respectively. These contracts were for a period of up to twelve months. The Company measured the fair value of the contracts in accordance with ASC No. 820 (classified as level 2 of the fair value hierarchy). These contracts met the requirement for cash flow hedge accounting and, as such, gains (losses) on the contracts are recognized initially as component of Accumulated Other Comprehensive Income in the balance sheet and reclassified to the statement of income in the period the related hedged items affect earnings. Any gains or losses related to the ineffective portion of cash flow hedges are recorded immediately in financial income, net in the consolidated statements of income. During 2018, 2017 and 2016 gains (losses) in the amount of $ (4,637), $ 4,655 and $ 120, respectively, were reclassified when the related expenses were incurred and recognized in operating expenses. The fair value of the Company’s outstanding forward contracts at December 31, 2018 and 2017 amounted to $ (801) and $ 267, respectively, and are included in accrued expenses and other current liabilities and prepaid expenses and other current assets on the balance sheets. v. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares outstanding during the year, in accordance with ASC No. 260, “Earnings Per Share”. The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted earnings per share, since it would have an anti-dilutive effect, was 3,235,080, 1,640,329 and 4,232,063 for 2018, 2017 and 2016, respectively. w. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC No. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the grant date using an option-pricing model. The Company recognizes compensation expenses for the value of awards granted, based on the straight line method for service based awards and based on the accelerated method for performance-based awards. Compensation expense is recognized over the requisite service period of the awards. The Company recognizes forfeitures of awards as they occur. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock options awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, the most significant of which are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected term of the options. The Company has historically not paid dividends and has no plans to pay dividends in the foreseeable future. The fair value of options granted and Employee Stock Purchase Plan in 2018, 2017 and 2016 is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, Employee Stock Options 2018 2017 2016 Expected volatility 21.98% 22.20% 22.23% Risk-free interest rate 2.67% 1.71% 1.07% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 5.13 4.76 4.65 Employee Stock Purchase Plan Expected volatility 22.88% 18.21% 23.24% Risk-free interest rate 1.07% 0.50% 0.16% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 0.5 0.5 0.5 On January 1, 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09 (Topic 718) The impact of the adoption on the Company’s Consolidated Financial Statements was as follows: Forfeitures: The Company elected to change its accounting policy and account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect net of tax adjustment of $2,149, which decreased the January 1, 2017 opening retained earnings balance on the Consolidated Balance Sheets. Income tax accounting: ASU 2016-09 also ASU 2016-09 adoption, Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows prospectively from January 1, 2017. Prior periods have not been adjusted and are classified as financing activity. Cash flow presentation of employee taxes paid: The Company is required to classify as a financing activity in its statement of cash flows the cash paid to a tax authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation. The Company was required to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the payments related to shares withheld for taxes as an operating activity. x. Fair value of financial instruments: The Company measures its investments in money market funds (classified as cash equivalents), marketable securities and its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. y. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale The following table shows the components of accumulated other comprehensive income (loss), net of taxes, for the year ended December 31, 2018: Year ended December 31, 2018 Unrealized Unrealized Total Beginning balance $ (15,719 ) $ 85 $ (15,634 ) Other comprehensive loss before reclassifications (9,757 ) (4,574 ) (14,331 ) Amounts reclassified from accumulated other comprehensive income *) 1,387 **) 4,081 5,468 Net current-period other comprehensive loss (8,370 ) (493 ) (8,863 ) Ending balance $ (24,089 ) $ (408 ) $ (24,497 ) *) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized losses on marketable securities are included within financial income, net. **) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized gains on cash flow hedges are included mostly within research and development expenses as well as other operating expenses. z. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a separate component of shareholders’ equity. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance of treasury shares is accounted for in accordance with ASC No. 505-30 paid-in paid-in aa. 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. ab. Impact of recently issued accounting standards: The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), effective as of January 1, 2018, using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The main change related to incremental costs to obtain customer contracts, which primarily consist of sales commissions, due to the longer period of amortization. Under the previous accounting guidance, these costs were expensed as incurred. Under the new standard these costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates and renewal rates are the same. The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606 were as follows: Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Other Assets 33,575 25,488 59,063 Deferred tax asset, net 119,431 (6,372) 113,059 Retained earnings 8,203,035 19,116 8,222,151 The Company adopted Accounting Standards Update No. 2016-16, 2016-16), In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 2016-02 2018-11, The Company has elected to apply the guidance at the beginning of the period of adoption and not restate comparative periods. In addition, the Company elected the available practical expedients on adoption. The Company expects to record right-of-use In June 2016, the FASB issued Accounting Standards Update No. 2016-13 2016-13) 2016-13 2016-13 In January 2017, the FASB issued Accounting Standards Update No. 2017-04 2017-04) 2017-04 2017-04 In August 2017, the FASB issued ASU No. 2017-12 In June 2018, FASB issued ASU 2018-07 In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2018-15, 2018-15”). 2018-15 internal-use internal-use |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 3:- ACQUISITION On October 23, 2018, the Company completed the acquisition of all outstanding shares of Dome9 Security Ltd, a privately-held Israeli-based company and its wholly-owned subsidiary in the United States. Under the acquisition method of accounting, the purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their respective fair values. In addition, the transaction included additional consideration related to compensation for post combination services which was recorded as prepaid expenses and other long term assets and will be recognized over the requisite service period. The Company accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table: Amount Goodwill $ 138,560 Core technology 26,958 Net liabilities assumed (4,498) Total $ 161,020 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4:- MARKETABLE SECURITIES Marketable securities with contractual maturities of up to one year are as follows: December 31, 2018 2017 Amortized Gross Gross Fair value Amortized Gross Gross Fair value Government and corporate debentures - fixed interest rate $1,203,258 $ 9 $(5,017) $1,198,249 $ 1,026,555 $ 48 $ (1,698 ) $ 1,024,905 Government-sponsored enterprises debentures 231,699 6 (1,200) 230,505 112,951 1 (275 ) 112,677 Government and corporate debentures - floating interest rate 13,902 - (15) 13,887 27,681 14 (11 ) 27,684 $1,448,859 $ 15 $(6,232) $1,442,642 $ 1,167,187 $ 63 $ (1,984 ) $ 1,165,266 Marketable securities with contractual maturities of over one year through five years are as follows: December 31, 2018 2017 Amortized cost Gross Gross Fair value Amortized Gross Gross Fair value Government and corporate $1,819,541 $1,089 $(21,630) $1,799,001 $ 1,985,849 $ 384 $ (15,204 ) $ 1,971,029 Government-sponsored 383,190 278 (4,092 ) 379,376 424,619 - (4,687 ) 419,932 Government and corporate debentures - floating interest rate 109,878 1 (910 ) 108,969 46,247 134 (27 ) 46,354 $ 2,312,609 $ 1,368 $ (26,632 ) $ 2,287,345 $ 2,456,715 $ 518 $ (19,918 ) $ 2,437,315 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: December 31, 2018 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Government and corporate $ 807,274 $ (4,369 ) $ 1,852,625 $ (22,278 ) $ 2,659,899 $ (26,647 ) Government-sponsored 40,213 (79 ) 429,101 (5,213 ) 469,315 (5,292 ) Government and corporate 115,511 (917 ) 5,380 (7 ) 120,892 (925 ) $ 962,999 $ (5,366 ) $ 2,287,106 $ (27,498 ) $ 3,250,06 $ (32,864 ) December 31, 2017 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Government and corporate $ 1,647,125 $ (7,318 ) $ 1,063,690 $ (9,585 ) $ 2,710,815 $ (16,903 ) Government-sponsored 236,403 (1,281 ) 294,986 (3,681 ) 531,389 (4,962 ) Government and corporate 27,810 (37 ) - - 27,810 (37 ) $ 1,911,338 $ (8,636 ) $ 1,358,676 $ (13,266 ) $ 3,270,014 $ (21,902 ) As of December 31, 2018 and 2017, interest receivable amounted to $ 22,940 and $ 19,871, respectively, and is included within prepaid expenses and other current assets in the balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5:- FAIR VALUE MEASUREMENTS In accordance with ASC No. 820, the Company measures its money market funds, marketable securities and foreign currency derivative contracts at fair value. Money market funds and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates: December 31, 2018 Fair value measurements using input type Level 1 Level 2 Total Cash equivalents: Money market funds $ 50,230 - $ 50,230 Marketable securities: Government and corporate debentures - fixed interest rate - 2,997,250 2,997,250 Government-sponsored enterprises debentures - 609,881 609,881 Government and corporate debentures - floating interest rate - 122,856 122,856 Foreign currency derivative contracts - 846 846 Total financial assets $ 50,230 $ 3,730,833 $ 3,781,063 December 31, 2017 Fair value measurements using input type Level 1 Level 2 Total Cash equivalents: Money market funds $ 58,344 $ - $ 58,344 Marketable securities: Government and corporate debentures - fixed interest rate - 2,995,934 2,995,934 Government-sponsored enterprises debentures - 532,609 532,609 Government and corporate debentures - floating interest rate - 74,038 74,038 Foreign currency derivative contracts - 160 160 Total financial assets $ 58,344 $ 3,602,741 $ 3,661,085 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2018 2017 Cost: Computers and peripheral equipment $ 51,389 $ 61,343 Office furniture and equipment 6,838 7,934 Building 78,121 74,209 Leasehold improvements 11,081 10,511 147,429 153,997 Accumulated depreciation 68,915 76,230 Property and equipment, net $ 78,514 $ 77,767 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | NOTE 7:- GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill: Amount Balance as of December 31, 2017 $ 812,012 Acquisition 138,560 Balance as of December 31, 2018 $ 950,572 b. Other intangible assets, net: Net other intangible assets consisted of the following: Useful December 31, Life 2018 2017 Original amount: Core technology 8 $ 44,422 $ 17,464 Trademarks and trade names 15 – 20 25,520 25,520 69,942 42,984 Accumulated amortization: Core technology 9,737 6,927 Trademarks and trade names 19,238 17,662 28,975 24,589 Other intangible assets, net: Core technology 34,685 10,537 Trademarks and trade names 6,282 7,858 $ 40,967 $ 18,395 The estimated future amortization expense of other intangible assets as of December 31, 2018 is as follows: 2019 $ 7,104 2020 6,888 2021 6,888 2022 5,738 2023 4,122 Thereafter 10,227 $ 40,967 |
EMPLOYEES AND PAYROLL ACCRUALS
EMPLOYEES AND PAYROLL ACCRUALS | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
EMPLOYEES AND PAYROLL ACCRUALS | NOTE 8:- EMPLOYEES AND PAYROLL ACCRUALS As of December 31, 2018 and 2017, employees and payroll accruals include a benefit of certain related parties since 2002 until 2007 in a total amount of $ 654 and $ 1,194 respectively. |
DEFERRED REVENUES
DEFERRED REVENUES | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUES | NOTE 9:- DEFERRED REVENUES Deferred revenues consisted of the following: December 31, 2018 2017 Security subscriptions $ 554,215 $ 476,261 Software updates and maintenance 765,899 702,786 Other 17,840 7,526 $ 1,337,954 $ 1,186,573 The majority of the deferred revenues are recognized within one year or less and presented as current deferred revenues in the balance sheet. The remaining deferred revenues which are recognized for a period above one year and up to eight years are shown as long term deferred revenues. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 10:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2018 2017 Accrued products and licenses costs 74,487 70,252 Marketing expenses payable 10,083 16,373 Legal accrual 46,529 53,607 Other accrued expenses 42,875 36,336 $ 173,974 $ 176,568 |
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: Certain facilities of the Company are rented under operating lease agreements, which expire on various dates, the latest of which is in 2027. The Company recognizes rent expense under such arrangements on a straight-line basis. Aggregate minimum lease commitments under non-cancelable 2019 $ 7,844 2020 6,857 2021 5,200 2022 4,215 2023 3,669 Thereafter 2,656 $ 30,441 Rent expenses for the years ended December 31, 2018, 2017 and 2016, were $ 8,174, $ 11,098 and $ 10,097 respectively. b. Litigations: The Company operates its business in various countries, and accordingly attempts to utilize an efficient operating model to structure its tax payments based on the laws in the countries in which the Company operates. This can cause disputes between the Company and various tax authorities in different parts of the world. Further, the Company is the defendant in various lawsuits, including employment-related litigation claims, construction claims and other legal proceedings in the normal course of its business. Litigation and governmental proceedings can be expensive, lengthy and disruptive to normal business operations, and can require extensive management attention and resources, regardless of their merit. While the Company intends to defend the aforementioned matters vigorously, it believes that a loss in excess of its accrued liability with respect to these claims is not probable. |
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: The Company elected to apply the Preferred Enterprise regime under the Law for the Encouragement of Capital Investment (the “Investment Law”) as of 2012 tax year. The election is irrevocable. Under the Preferred Enterprise regime, a preferred income of an Enterprise located in the center of Israel is subject to tax rate of 16%. Pursuant to Amendment 73 to the Investment Law adopted in 2017, a Company located in the Center of Israel that meets the conditions for “Preferred Technological Enterprises”, is subject to tax rate of 12% tax rate. The Company believes it meets those conditions. Income not eligible for Preferred Enterprise benefits is taxed at a regular rate, as follows: 2018 – 23%, 2017 – 24% and for 2016 – 25%. Prior to 2012, most of the Company’s income was exempt from tax or subject to reduced tax rates under the Investment Law. Upon distribution of exempt income, the distributing company will be subject to corporate reduced tax rates ordinarily applicable to such income under the Investment Law. Reduced income under the Investment Law including the Preferred Enterprise Regime will be freely distributable as dividends, subject to a 15%/20% withholding tax (or lower, under an applicable tax treaty). However, upon the distribution of a dividend from Preferred Income and Technological Preferred Enterprise to an Israeli company, no withholding tax will be remitted. 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 (“Trapped Earnings”) 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 five-year period. A company that has elected to apply the temporary tax relief cannot withdraw from its election. The Company has elected to apply the temporary tax relief by the respective date and believes it meets those conditions. The Company’s tax assessments through 2015 tax year are considered final. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, Check Point Ltd. calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into New Israeli Shekels according to the exchange rate as of December 31st of each year. b. Tax Reform in U.S: On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. At December 31, 2017, the Company re-measured re-measurement c. Income taxes of non-Israeli Non-Israeli The Company does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely or if distributed, no tax liability will be imposed. Undistributed earnings of foreign subsidiaries that are not distributed amounted to $ 357,298 and unrecognized deferred tax liability related to such earning amounted to $ 60,811 as of December 31, 2018. d. Deferred tax assets and liabilities: Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2018 and 2017, the Company’s deferred taxes were in respect of the following: December 31, 2018 2017 Carry forward tax losses $ 90,099 $ 106,481 Employee stock based compensation 19,275 25,117 Deferred revenues 22,153 19,200 Other 53,243 53,848 Deferred tax assets before valuation allowance 184,770 204,646 Valuation allowance – mainly in respect to carryforward losses (55,745 ) (60,703 ) Deferred tax asset 129,025 143,943 Intangible assets (11,335 ) (8,862 ) Undistributed earnings of subsidiary (9,925 ) (9,925 ) Other (4,663 ) (274 ) Deferred tax liability (25,923 ) (19,061 ) Deferred tax asset, net $ 103,102 $ 124,882 Through December 31, 2018, the U.S. subsidiaries had a U.S. federal loss carry-forward of approximately $395,236 expiring beginning 2020, mainly resulting from tax benefits related to employees’ stock option exercises that can be carried forward and offset against taxable income. Through December 31, 2018, the U.S. subsidiaries had a U.S. state net loss carry forward of approximately $96,380, which expire between fiscal 2020 and fiscal 2034, and are subject to limitations on their utilization. Through December 31, 2018, the U.S. subsidiaries had research and development tax credits of approximately $20,270, which expire between fiscal 2019 and fiscal 2038 and are subject to limitations on their utilization. e. Income before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 902,235 $ 923,744 $ 862,554 Foreign 76,605 47,202 34,118 $ 978,840 $ 970,946 $ 896,672 f. Taxes on income are comprised of the following: Year ended December 31, 2018 2017 2016 Current $ 140,800 $ 101,902 $ 194,149 Deferred 16,735 66,121 (22,324 ) $ 157,535 $ 168,023 $ 171,825 Domestic $ 132,027 $ 112,615 $ 166,152 Foreign 25,508 55,408 5,673 $ 157,535 $ 168,023 $ 171,825 Year ended December 31, 2018 2017 2016 Domestic taxes: Current $ 120,876 $ 94,340 $ 175,522 Deferred 11,151 18,275 (9,370 ) 132,027 112,615 166,152 Foreign taxes: Current 19,925 7,562 18,627 Deferred 5,583 47,846 (12,954 ) 25,508 55,408 5,673 Taxes on income $ 157,535 $ 168,023 $ 171,825 g. A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31, 2018 2017 Beginning balance $ 342,904 $ 306,677 Increases related to tax positions taken during prior years 745 46,520 Decreases related to expiration of statute of limitations - (41,022 ) Increases related to tax positions taken during the current year 31,514 30,729 Ending balance $ 375,163 *) $ 342,904 *) *) As of December 31, 2018 and 2017 unrecognized tax benefit in the amounts of $18,413 and $5,451 were presented net from deferred tax asset. Substantially all the balance of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. We adjust our unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires or when new information is available. There is a reasonable possibility that $ 56,702 out of our unrecognized tax benefit liability will be adjusted within 12 months due to the expiration of a statute of limitations. During the years ended December 31, 2018, 2017 and 2016, the Company recorded $ 5,547, $ 4,168 and $ 6,025, respectively for interest expense related to uncertain tax positions. As of December 31, 2018 and 2017, the Company had accrued interest liability related to uncertain tax positions in the amounts of $ 30,766 and $ 25,219, respectively, which is included within income tax accrual on the balance sheets. The Company did not accrue penalties during the years ended December 31, 2018 and 2017. The Company’s U.S. subsidiaries file federal and state income tax returns in the U.S. All of the U.S subsidiaries’ tax years are subject to examination by the U.S. federal and most U.S. state tax authorities due to their carry-forward tax losses and overall credit carry-forward position, except for Check Point Software Technologies Inc. that the assessment statue period for tax years 2005 through 2014 have expired. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income in the period in which such determination is made. h. Reconciliation of the theoretical tax expenses: Reconciliation between the theoretical tax expenses, assuming all income is taxed at the statutory rate in Israel and the actual income tax as reported in the statements of income is as follows: Year ended December 31, 2018 2017 2016 Income before taxes as reported in the statements of income $ 978,839 $ 970,946 $ 896,672 Statutory tax rate in Israel 23% 24% 25% Decrease in taxes resulting from: Effect of “Preferred Enterprise” status *) (9% ) (11% ) (5% ) Decrease in US deferred tax due to US tax rate change - 4% - Others, net 2% - (1% ) Effective tax rate 16% 17% 19% *) Basic earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status $ 0.57 $ 0.68 $ 0.26 Diluted earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status $ 0.56 $ 0.66 $ 0.26 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13:- SHAREHOLDERS’ EQUITY a. General: Ordinary shares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. Dividends declared on ordinary shares will be paid in New Israeli Shekels. Dividends paid to shareholders outside Israel will be converted into U.S. dollars, on the basis of the exchange rate prevailing at the date of payment. b. Share repurchase: On July 25, 2018, the Company announced an extension and increase to its share repurchase plan. Under the updated plan, the Company may repurchase up to an additional $ 2,000,000 with purchases of up to $ 325,000 a quarter. As of December 31, 2018, the Company repurchased ordinary shares for an aggregate amount of $ 7,909,889. During 2018, 2017 and 2016 the Company repurchased 10,341,000, 9,535,992, and 12,298,434 shares for an aggregate amount of $ 1,103,865, $ 995,322 and $ 987,897, respectively. c. Stock Options, RSU’s and PSU’s: In 2005, the Company adopted two new equity incentive plans, which were subsequently amended in January 2014 and in July 2018: the 2005 United States Equity Incentive Plan and the 2005 Israel Equity Incentive Plan together are referred to as the Equity Incentive Plans. Under the Equity Incentive Plans, the Company may grant options to employees, officers and directors at an exercise price equal to at least the fair market value of the ordinary shares at the date of grant and are granted for periods not to exceed seven years. The Company grants under the Equity Incentive Plans options, Restricted Stock Units (“RSUs”) and Performance RSUs (“PSUs”) and can also grant a variety of other equity incentives. Options granted under the Equity Incentive Plans generally vest over a period of four years of employment. Options, RSUs and PSUs that are cancelled or forfeited before expiration become available for future grants. The number of PSUs granted to sales employees is equal to the amount of compensation earned (based on the employee’s level) divided by the fair value of the ordinary share at the grant date. RSUs and PSUs vest over a four year period of employment from the grant date. PSUs are subject to certain performance criteria; accordingly, compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. Under the Equity Incentive Plans, the Company’s non-employee The number of “Reserved and Authorized Shares” under the Equity Plans shall equal the sum of (i) the number of ordinary shares reserved and authorized under the Equity Incentive Plans for outstanding options, RSUs, PSUs and other awards granted under the Equity Incentive Plans as of such date, and (ii) the number of ordinary shares reserved, authorized and available for issuance under the Equity Incentive Plans on such date. As of December 31, 2018, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below: 2018 Number in Stock Options outstanding 8,542 RSU outstanding 1,293 PSU outstanding 85 Ordinary shares available for issuance under the Equity Incentive Plans 6,610 Total Reserved and Authorized Shares as of December 31, 2018 16,530 A summary of the Company’s stock option activity and related information is as follows: Options in Weighted Aggregate 2018 Outstanding at beginning of year 13,142 $75.97 $381,022 Granted 2,048 $109.26 Exercised (6,041) $59.16 Forfeited (607) $84.15 Outstanding at December 31, 2018 8,542 $95.26 101,203 Exercisable at December 31, 2018 4,007 $87.37 70,507 The weighted average fair values at grant date of options granted for the years ended December 31, 2018, 2017 and 2016; with an exercise price equal to the market value at the date of grant were $ 30.14, $ 25.00 and $ 17.14, respectively. The total intrinsic value of options exercised during the years 2018, 2017 and 2016 was $297,477, $ 95,707 and $ 112,989, respectively. A summary of the Company’s RSUs activity is as follows: Year ended December 31, 2018 Number in thousands Unvested at beginning of year 893 Granted 932 Vested (318) Forfeited (214) Unvested the end of the year 1,293 The weighted average fair values at grant date of RSUs granted for the years ended December 31, 2018, 2017 and 2016 were $101.2, $ 103.5 and $ 80.73, respectively. The total fair value of shares vested during the years 2018, 2017 and 2016 was $32,279, $35,824 and $ 22,772, respectively. A summary of the Company’s PSUs activity is as follows: Year ended December 31, 2018 Number in thousands Unvested at beginning of year 175 Vested (65) Forfeited (25) Unvested the end of the year 85 The weighted average fair values at grant date of PSUs granted for the year ended December 31, 2018, 2017 and 2016 were $ 0, $ 104.38 and $ 82.01, respectively. The total fair value of shares vested during 2018 was $ 6,354, during 2017 was $ 6,241, and during 2016 was $ 3,056. As of December 31, 2018, the Company had approximately $ 189,964 of unrecognized compensation expense related to non-vested non-vested d. Employee Stock Purchase Plan (“ESPP”): In 1996, the Company adopted an ESPP, which was subsequently amended in 2015. According to the amendments, commencing the purchase period that begins February 1, 2017, 500,000 ordinary shares are authorized for issuance under the US ESPP and 1,000,000 ordinary shares are authorized for issuance under the rest of the world (ROW) ESPP. As of December 31, 2018, 828,441 ordinary shares had been issued under the amended ESPP plan. Eligible employees may use up to 15% of their salaries to purchase ordinary shares but no more than 1,250 shares per participant on any purchase date. The ESPP is implemented through an offering every six months. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date. During 2018, 2017 and 2016, employees purchased 308,920, 346,241 and 311,257 ordinary shares at average prices of $ 87.584, $ 73.47 and $ 66.08 per share, respectively. In accordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost. For the years ended December 31, 2018, 2017 and 2016, the Company recognized $ 6,654, $ 6,656 and $ 5,432, respectively, of compensation expense in connection with the ESPP. e. Stock-Based Compensation Stock-based compensation expense related to stock options, RSUs and PSUs is included in the consolidated statements of operations as follows (in thousands): Year ended December 31, 2018 2017 2016 Cost of revenues $ 3,545 $ 2,741 $ 2,153 Research and development 17,644 16,233 12,718 Selling and marketing 20,800 18,278 19,168 General and administrative 47,337 50,207 48,693 $ 89,326 $ 87,459 $ 82,732 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14:- EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2018 2017 2016 Net income $ 821,305 $ 802,923 $ 724,847 Weighted average ordinary shares outstanding (in thousands) 156,632 162,720 170,155 Dilutive effect: Employee stock options, RSUs and PSUs (in thousands) 2,815 3,942 3,141 Diluted weighted average ordinary shares outstanding (in thousands) 159,447 166,662 173,296 Basic earnings per ordinary share $ 5.24 $ 4.93 $ 4.26 Diluted earnings per ordinary share $ 5.15 $ 4.82 $ 4.18 |
GEOGRAPHIC INFORMATION AND SELE
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA | NOTE 15:- GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA a. Summary information about geographical areas: The Company operates in one reportable segment (see Note 1 for a brief description of the Company’s business). The total revenues are attributed to geographic areas based on the location of the Company’s channel partners which are considered as end customers, as well as direct customers of the Company. The following table presents total revenues for the years ended December 31, 2018, 2017 and 2016, and property and equipment, net as of December 31, 2018 and 2017, by geographic area: 1. Revenues based on the channel partners’ location: Year ended December 31, 2018 2017 2016 Americas, principally U.S. $ 892,426 $ 871,297 $ 847,458 Europe 717,205 674,987 627,524 Asia-Pacific, Middle-East and Africa 306,844 308,374 266,319 $ 1,916,475 $ 1,854,658 $ 1,741,301 2. Property and equipment, net: December 31, 2018 2017 Israel $ 71,641 $ 71,655 U.S. 3,463 2,782 Rest of the world 3,410 3,330 $ 78,514 $ 77,767 b. Summary information about product lines: The Company’s products can be classified by three main product lines. The following table presents total revenues for the years ended December 31, 2018, 2017 and 2016 by product lines: Year ended December 31, 2018 2017 2016 Product and licenses: Network security Gateways $ 468,509 $ 506,057 $ 516,254 Other *) 57,048 52,969 56,710 525,557 559,026 572,964 Security subscriptions 542,323 480,352 389,885 Software updates and maintenance 848,595 815,280 778,452 Total revenues $ 1,916,475 $ 1,854,658 $ 1,741,301 *) Comprised of Endpoint security, Mobile security and Security management products, each comprising of less than 10% of products and licenses revenues. c. Financial income, net: Year ended December 31, 2018 2017 2016 Financial income: Interest income $ 88,475 $ 74,900 $ 69,425 Realized gain on sale of marketable securities, net - - 2,993 88,475 74,900 72,418 Financial expense: Amortization of marketable securities premium and accretion of discount, net 13,560 20,012 23,388 Realized loss on sale of marketable securities, net 1,803 176 - Foreign currency re-measurement 5,719 5,555 2,658 Others 2,327 2,128 1,970 23,409 27,871 28,016 $ 65,066 $ 47,029 $ 44,402 |
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 revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial Statements in United States Dollars | b. Financial statements in United States dollars: Most of the Company’s revenues and costs are denominated in United States dollar (“dollar”). The Company’s management believes that the dollar is the primary currency of the economic environment in which Check Point Ltd. and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar re-measured re-measured |
Principles of Consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of Check Point Ltd. and subsidiaries. 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 to cash and with original maturities of three months or less at acquisition. |
Short-Term Bank Deposit | e. Short-term bank deposits: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values. |
Investments in Marketable Securities | f. Investments in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments - Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. The Company’s securities are reviewed for impairment in accordance with ASC 320-10-35. |
Property and equipment, net | g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 33 - 50 Office furniture and equipment 10 - 20 Building 4 Leasehold improvements The shorter of term of the lease or the useful life of the asset |
Business combination | h. 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 acquired technology and acquired trademarks and tradenames 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. |
Goodwill | i. Goodwill: Goodwill has been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, “Intangibles - Goodwill and other” (“ASC No. 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. ASC No. 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step two-step The Company operates in one operating segment, and this segment comprises its only reporting unit. The Company performs the first step of the quantitative goodwill impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present and compares the fair value of the reporting unit with its carrying value. During the years 2018, 2017 and 2016, no impairment losses have been identified. |
Other Intangible Assets, Net | j. Other intangible assets, net: Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 8 to 20 years. These intangible assets consist of core technology, trademarks and trade names which are amortized over their estimated useful lives on a straight-line basis. |
Impairment of long-lived assets including intangible assets subject to amortization | k. Impairment of long-lived assets including intangible assets subject to amortization: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years 2018, 2017 and 2016, no impairment indicators have been identified. |
Manufacturing partner and supplier liabilities | l. Manufacturing partner and supplier liabilities: The Company purchases manufactured products from its original design manufacture (“ODM”). The Company generally does not own the manufactured products. ODM’s provide services of design, manufacture, orders fulfillment and support with a full turn-key |
Research and Development Costs | m. Research and development costs: Research and development costs are charged to the statements of income as incurred. ASC No. 985-20, Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. |
Revenue Recognition | n. Revenue recognition: The Company derives its revenues mainly from sales of products and licenses, security subscriptions and software updates and maintenance. The Company’s products are generally integrated with software that is essential to the functionality of the product. The Company sells its products primarily through channel partners including distributors, resellers, OEMs (Original Equipment Manufacturers), system integrators and MSPs (Managed Service Providers), all of whom are considered end-users. The Company’s security subscriptions provide customers with access to its suite of security solutions and is sold as a service. The Company’s software updates and maintenance provide customers with rights to unspecified software product upgrades released during the term of the agreement and include maintenance services to end-user The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies 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. Revenues from sales of products and licenses are recognized upon shipment when control of the promised goods is transferred to the customer, or upon electronic transfer of the Certificate Key to the Customer. Revenues from security subscriptions and from software updates and maintenance are recognized ratably over the term of the agreement. The Company’s arrangements typically contain various combinations of its products and licenses, security subscriptions and software updates and maintenance, which are distinct and are accounted for as a separate performance obligations. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price using the prices charged for a performance obligation when sold separately. Deferred revenues represent mainly the unrecognized revenue billed for security subscriptions and for software updates and maintenance. Such revenues are recognized ratably over the term of the related agreement. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $ 878,538 for the year ended December 31, 2018. Revenue expected to be recognized from remaining performance obligations was $ 1,557,552 as of December 31, 2018, of which the Company expects to recognize approximately $ 1,069,938 over the next 12 months and the remainder thereafter. The Company records a provision for estimated sales returns, rebates, stock rotations and other rights provided to customers on product and services based on historical sales returns, analysis of credit memo data, rebate plans, stock rotation arrangements and other known factors. This provision is accounted for as variable consideration that is deducted from revenue in the period in which the revenue is recognized. Such provision amounted to $ 8,491 as of December 31, 2018 and is included in accrued expenses and other current liabilities in the consolidated balance sheet. Under Topic 605, the provision of $ 8,978 as of December 31, 2017 was presented as a reduction to trade receivables. Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates are commensurate with the renewal commission rates. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of income. If the amortization period of those costs is one year or less, the costs are expensed as incurred. As of December 31, 2018 the amount of deferred commission was $22,623 and included in other long term assets. For information regarding disaggregated revenues, please refer to Note 15 below. |
Cost of Revenues | o. Cost of revenues: Cost of products and licenses is comprised of cost of software and hardware production, manuals, packaging and shipping. Cost of security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and cost of customer support related to these services. Cost of software updates and maintenance is mainly comprised of cost of post-sale customer support. Amortization of technology is comprised of amortization of core technology assets which are used in the Company’s operations, and is presented separately as part of cost of revenues. |
Severance Pay | p. Severance pay: The Company’s liability for severance pay for periods prior to January 1, 2007, is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Employees were entitled to one month’s salary for each year of employment, or a portion thereof. Until January 1, 2007, the Company’s liability was partially funded by monthly payments deposited with insurers; any unfunded amounts are covered by a provision established by the Company. The carrying value of deposited funds in respect to the severance liability for services prior to January 1, 2007, includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. Effective January 1, 2007, the Company’s agreements with employees in Israel, are under Section 14 of the Severance Pay Law, 1963. The Company’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay and no additional payments is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the required deposit amounts have been paid. Severance expenses for the years ended December 31, 2018, 2017 and 2016, were $ 11,267, $ 10,180 and $ 8,165 respectively. |
Employee Benefit Plan | q. Employee benefit plan: 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 50%, but generally not greater than $ 18.5 per year (and an additional amount of $ 6 for employees aged 50 and over), of their annual compensation to the plan through salary deferrals, subject to statutory limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In 2018, 2017 and 2016, the Company’s matching contribution to the plan amounted to $ 4,163, $ 3,613 and $ 2,290 respectively. |
Income Taxes | r. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined for temporary 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 amounts more likely than not to be realized. The Company accrues interest and indexation related to unrecognized tax benefits on its taxes on income. ASC No. 740 contains a two-step 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 related to unrecognized tax benefits in taxes on income. |
Advertising Costs | s. Advertising costs: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2018, 2017 and 2016, were $ 3,106, $ 1,764 and $ 3,127 respectively. |
Concentrations of Credit Risk | t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and foreign currency derivative contracts. The majority of the Company’s cash and cash equivalents and short-term bank deposits are deposited in major banks in the U.S., Israel and Europe. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be withdrawn upon demand and therefore bear low risk. Marketable securities are held mainly by Check Point Ltd., the Company’s Singaporean subsidiary, Canadian subsidiary and the U.S. subsidiary, and are invested in securities denominated in U.S. dollar. The Company’s marketable securities consist of investments in government, corporate and government sponsored enterprises debentures. The Company’s investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company’s trade receivables are geographically dispersed and derived from sales to channel partners mainly in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for doubtful accounts based on factors that may affect a customers’ ability to pay, such as known disputes, age of the receivable balance and past experience. Allowance for doubtful accounts amounted to $ 1,033 and $ 1,911 as of December 31, 2018 and 2017, respectively. The Company writes off receivables when they are deemed uncollectible, having exhausted all collection efforts. Actual collection experience may not meet expectations and may result in increased bad debt expense. Bad debt expense (income) amounted to $ (878), $ (344) and $ 154 in 2018, 2017 and 2016, respectively. Total write offs during 2018, 2017 and 2016 amounted to $ 627, $ 29 and $ 0, respectively. |
Derivatives and Hedging | u. Derivatives and hedging: The Company accounts for derivatives and hedging based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”). ASC No. 815 requires the Company to recognize all derivatives 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, as well as the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are designated as such, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in financial income, net. The Company entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As of December 31, 2018 and 2017, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting, in the notional amount of $ 337,498 and $ 338,053, respectively. The Company measured the fair value of the contracts in accordance with ASC No. 820, “Fair Value Measurement” (“ASC No. 820”) (classified as level 2 of the fair value hierarchy). The net gains (losses) resulting from these forward contracts recognized in financial income, net during 2018, 2017 and 2016 were $ (33,330), $ 25,086, and $ 1,822, respectively. The fair value of the Company’s outstanding forward contracts at December 31, 2018 and 2017 amounted to liabilities of $ 45 and $ 107, respectively. The Company entered into forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekel and in Euro. As of December 31, 2018 and 2017, the Company had outstanding forward contracts in the notional amount of $ 112,053 and $ 7,354, respectively. These contracts were for a period of up to twelve months. The Company measured the fair value of the contracts in accordance with ASC No. 820 (classified as level 2 of the fair value hierarchy). These contracts met the requirement for cash flow hedge accounting and, as such, gains (losses) on the contracts are recognized initially as component of Accumulated Other Comprehensive Income in the balance sheet and reclassified to the statement of income in the period the related hedged items affect earnings. Any gains or losses related to the ineffective portion of cash flow hedges are recorded immediately in financial income, net in the consolidated statements of income. During 2018, 2017 and 2016 gains (losses) in the amount of $ (4,637), $ 4,655 and $ 120, respectively, were reclassified when the related expenses were incurred and recognized in operating expenses. The fair value of the Company’s outstanding forward contracts at December 31, 2018 and 2017 amounted to $ (801) and $ 267, respectively, and are included in accrued expenses and other current liabilities and prepaid expenses and other current assets on the balance sheets. |
Basic and Diluted Earnings per Share | v. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares outstanding during the year, in accordance with ASC No. 260, “Earnings Per Share”. The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted earnings per share, since it would have an anti-dilutive effect, was 3,235,080, 1,640,329 and 4,232,063 for 2018, 2017 and 2016, respectively. |
Accounting for stock-based compensation | w. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC No. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the grant date using an option-pricing model. The Company recognizes compensation expenses for the value of awards granted, based on the straight line method for service based awards and based on the accelerated method for performance-based awards. Compensation expense is recognized over the requisite service period of the awards. The Company recognizes forfeitures of awards as they occur. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock options awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, the most significant of which are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected term of the options. The Company has historically not paid dividends and has no plans to pay dividends in the foreseeable future. The fair value of options granted and Employee Stock Purchase Plan in 2018, 2017 and 2016 is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, Employee Stock Options 2018 2017 2016 Expected volatility 21.98% 22.20% 22.23% Risk-free interest rate 2.67% 1.71% 1.07% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 5.13 4.76 4.65 Employee Stock Purchase Plan Expected volatility 22.88% 18.21% 23.24% Risk-free interest rate 1.07% 0.50% 0.16% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 0.5 0.5 0.5 On January 1, 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09 (Topic 718) The impact of the adoption on the Company’s Consolidated Financial Statements was as follows: Forfeitures: The Company elected to change its accounting policy and account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect net of tax adjustment of $2,149, which decreased the January 1, 2017 opening retained earnings balance on the Consolidated Balance Sheets. Income tax accounting: ASU 2016-09 also ASU 2016-09 adoption, Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows prospectively from January 1, 2017. Prior periods have not been adjusted and are classified as financing activity. Cash flow presentation of employee taxes paid: The Company is required to classify as a financing activity in its statement of cash flows the cash paid to a tax authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation. The Company was required to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the payments related to shares withheld for taxes as an operating activity. |
Fair Value of Financial Instruments | x. Fair value of financial instruments: The Company measures its investments in money market funds (classified as cash equivalents), marketable securities and its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Comprehensive Income | y. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale The following table shows the components of accumulated other comprehensive income (loss), net of taxes, for the year ended December 31, 2018: Year ended December 31, 2018 Unrealized Unrealized Total Beginning balance $ (15,719 ) $ 85 $ (15,634 ) Other comprehensive loss before reclassifications (9,757 ) (4,574 ) (14,331 ) Amounts reclassified from accumulated other comprehensive income *) 1,387 **) 4,081 5,468 Net current-period other comprehensive loss (8,370 ) (493 ) (8,863 ) Ending balance $ (24,089 ) $ (408 ) $ (24,497 ) *) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized losses on marketable securities are included within financial income, net. **) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized gains on cash flow hedges are included mostly within research and development expenses as well as other operating expenses. |
Treasury Shares | z. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a separate component of shareholders’ equity. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance of treasury shares is accounted for in accordance with ASC No. 505-30 paid-in paid-in |
Legal Contingencies | aa. 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. |
Impact of Recently Issued Accounting Standards | ab. Impact of recently issued accounting standards: The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), effective as of January 1, 2018, using the modified retrospective transition method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The main change related to incremental costs to obtain customer contracts, which primarily consist of sales commissions, due to the longer period of amortization. Under the previous accounting guidance, these costs were expensed as incurred. Under the new standard these costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates and renewal rates are the same. The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606 were as follows: Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Other Assets 33,575 25,488 59,063 Deferred tax asset, net 119,431 (6,372) 113,059 Retained earnings 8,203,035 19,116 8,222,151 The Company adopted Accounting Standards Update No. 2016-16, 2016-16), In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 2016-02 2018-11, The Company has elected to apply the guidance at the beginning of the period of adoption and not restate comparative periods. In addition, the Company elected the available practical expedients on adoption. The Company expects to record right-of-use In June 2016, the FASB issued Accounting Standards Update No. 2016-13 2016-13) 2016-13 2016-13 In January 2017, the FASB issued Accounting Standards Update No. 2017-04 2017-04) 2017-04 2017-04 In August 2017, the FASB issued ASU No. 2017-12 In June 2018, FASB issued ASU 2018-07 In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2018-15, 2018-15”). 2018-15 internal-use internal-use |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Annual Rate of Depreciation on Property and Equipment | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 33 - 50 Office furniture and equipment 10 - 20 Building 4 Leasehold improvements The shorter of term of the lease or the useful life of the asset |
Weighted Average Assumptions Used to Estimate the Fair Value of Employee Stock Purchase Plans | The fair value of options granted and Employee Stock Purchase Plan in 2018, 2017 and 2016 is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, Employee Stock Options 2018 2017 2016 Expected volatility 21.98% 22.20% 22.23% Risk-free interest rate 2.67% 1.71% 1.07% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 5.13 4.76 4.65 Employee Stock Purchase Plan Expected volatility 22.88% 18.21% 23.24% Risk-free interest rate 1.07% 0.50% 0.16% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 0.5 0.5 0.5 |
Components of Accumulated Other Comprehensive Income (Loss) | The following table shows the components of accumulated other comprehensive income (loss), net of taxes, for the year ended December 31, 2018: Year ended December 31, 2018 Unrealized Unrealized Total Beginning balance $ (15,719 ) $ 85 $ (15,634 ) Other comprehensive loss before reclassifications (9,757 ) (4,574 ) (14,331 ) Amounts reclassified from accumulated other comprehensive income *) 1,387 **) 4,081 5,468 Net current-period other comprehensive loss (8,370 ) (493 ) (8,863 ) Ending balance $ (24,089 ) $ (408 ) $ (24,497 ) *) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized losses on marketable securities are included within financial income, net. **) The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized gains on cash flow hedges are included mostly within research and development expenses as well as other operating expenses. |
Schedule of New Accounting Pronouncements and Changes In Accounting Principles | The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606 were as follows: Balance at December 31, 2017 Adjustments Balance at January 1, 2018 Other Assets 33,575 25,488 59,063 Deferred tax asset, net 119,431 (6,372) 113,059 Retained earnings 8,203,035 19,116 8,222,151 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Business Combination and Allocated the Purchase Consideration to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values | The Company accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table: Amount Goodwill $ 138,560 Core technology 26,958 Net liabilities assumed (4,498) Total $ 161,020 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities with Contractual Maturities | Marketable securities with contractual maturities of up to one year are as follows: December 31, 2018 2017 Amortized Gross Gross Fair value Amortized Gross Gross Fair value Government and corporate debentures - fixed interest rate $1,203,258 $ 9 $(5,017) $1,198,249 $ 1,026,555 $ 48 $ (1,698 ) $ 1,024,905 Government-sponsored enterprises debentures 231,699 6 (1,200) 230,505 112,951 1 (275 ) 112,677 Government and corporate debentures - floating interest rate 13,902 - (15) 13,887 27,681 14 (11 ) 27,684 $1,448,859 $ 15 $(6,232) $1,442,642 $ 1,167,187 $ 63 $ (1,984 ) $ 1,165,266 Marketable securities with contractual maturities of over one year through five years are as follows: December 31, 2018 2017 Amortized cost Gross Gross Fair value Amortized Gross Gross Fair value Government and corporate $1,819,541 $1,089 $(21,630) $1,799,001 $ 1,985,849 $ 384 $ (15,204 ) $ 1,971,029 Government-sponsored 383,190 278 (4,092 ) 379,376 424,619 - (4,687 ) 419,932 Government and corporate debentures - floating interest rate 109,878 1 (910 ) 108,969 46,247 134 (27 ) 46,354 $ 2,312,609 $ 1,368 $ (26,632 ) $ 2,287,345 $ 2,456,715 $ 518 $ (19,918 ) $ 2,437,315 |
Investments with Continuous Unrealized Losses | Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: December 31, 2018 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Government and corporate $ 807,274 $ (4,369 ) $ 1,852,625 $ (22,278 ) $ 2,659,899 $ (26,647 ) Government-sponsored 40,213 (79 ) 429,101 (5,213 ) 469,315 (5,292 ) Government and corporate 115,511 (917 ) 5,380 (7 ) 120,892 (925 ) $ 962,999 $ (5,366 ) $ 2,287,106 $ (27,498 ) $ 3,250,06 $ (32,864 ) December 31, 2017 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Government and corporate $ 1,647,125 $ (7,318 ) $ 1,063,690 $ (9,585 ) $ 2,710,815 $ (16,903 ) Government-sponsored 236,403 (1,281 ) 294,986 (3,681 ) 531,389 (4,962 ) Government and corporate 27,810 (37 ) - - 27,810 (37 ) $ 1,911,338 $ (8,636 ) $ 1,358,676 $ (13,266 ) $ 3,270,014 $ (21,902 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on Recurring Basis | The Company’s financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates: December 31, 2018 Fair value measurements using input type Level 1 Level 2 Total Cash equivalents: Money market funds $ 50,230 - $ 50,230 Marketable securities: Government and corporate debentures - fixed interest rate - 2,997,250 2,997,250 Government-sponsored enterprises debentures - 609,881 609,881 Government and corporate debentures - floating interest rate - 122,856 122,856 Foreign currency derivative contracts - 846 846 Total financial assets $ 50,230 $ 3,730,833 $ 3,781,063 December 31, 2017 Fair value measurements using input type Level 1 Level 2 Total Cash equivalents: Money market funds $ 58,344 $ - $ 58,344 Marketable securities: Government and corporate debentures - fixed interest rate - 2,995,934 2,995,934 Government-sponsored enterprises debentures - 532,609 532,609 Government and corporate debentures - floating interest rate - 74,038 74,038 Foreign currency derivative contracts - 160 160 Total financial assets $ 58,344 $ 3,602,741 $ 3,661,085 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | December 31, 2018 2017 Cost: Computers and peripheral equipment $ 51,389 $ 61,343 Office furniture and equipment 6,838 7,934 Building 78,121 74,209 Leasehold improvements 11,081 10,511 147,429 153,997 Accumulated depreciation 68,915 76,230 Property and equipment, net $ 78,514 $ 77,767 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Goodwill | a. Goodwill: Amount Balance as of December 31, 2017 $ 812,012 Acquisition 138,560 Balance as of December 31, 2018 $ 950,572 |
Other Intangible Assets, Net | Net other intangible assets consisted of the following: Useful December 31, Life 2018 2017 Original amount: Core technology 8 $ 44,422 $ 17,464 Trademarks and trade names 15 – 20 25,520 25,520 69,942 42,984 Accumulated amortization: Core technology 9,737 6,927 Trademarks and trade names 19,238 17,662 28,975 24,589 Other intangible assets, net: Core technology 34,685 10,537 Trademarks and trade names 6,282 7,858 $ 40,967 $ 18,395 |
Estimated Future Amortization Expense of Other Intangible Assets | The estimated future amortization expense of other intangible assets as of December 31, 2018 is as follows: 2019 $ 7,104 2020 6,888 2021 6,888 2022 5,738 2023 4,122 Thereafter 10,227 $ 40,967 |
DEFERRED REVENUES (Tables)
DEFERRED REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenues | Deferred revenues consisted of the following: December 31, 2018 2017 Security subscriptions $ 554,215 $ 476,261 Software updates and maintenance 765,899 702,786 Other 17,840 7,526 $ 1,337,954 $ 1,186,573 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | December 31, 2018 2017 Accrued products and licenses costs 74,487 70,252 Marketing expenses payable 10,083 16,373 Legal accrual 46,529 53,607 Other accrued expenses 42,875 36,336 $ 173,974 $ 176,568 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Minimum Lease Commitments | Aggregate minimum lease commitments under non-cancelable 2019 $ 7,844 2020 6,857 2021 5,200 2022 4,215 2023 3,669 Thereafter 2,656 $ 30,441 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | As of December 31, 2018 and 2017, the Company’s deferred taxes were in respect of the following: December 31, 2018 2017 Carry forward tax losses $ 90,099 $ 106,481 Employee stock based compensation 19,275 25,117 Deferred revenues 22,153 19,200 Other 53,243 53,848 Deferred tax assets before valuation allowance 184,770 204,646 Valuation allowance – mainly in respect to carryforward losses (55,745 ) (60,703 ) Deferred tax asset 129,025 143,943 Intangible assets (11,335 ) (8,862 ) Undistributed earnings of subsidiary (9,925 ) (9,925 ) Other (4,663 ) (274 ) Deferred tax liability (25,923 ) (19,061 ) Deferred tax asset, net $ 103,102 $ 124,882 |
Schedule of Income Before Taxes | e. Income before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 902,235 $ 923,744 $ 862,554 Foreign 76,605 47,202 34,118 $ 978,840 $ 970,946 $ 896,672 |
Components of Income Tax Expense | f. Taxes on income are comprised of the following: Year ended December 31, 2018 2017 2016 Current $ 140,800 $ 101,902 $ 194,149 Deferred 16,735 66,121 (22,324 ) $ 157,535 $ 168,023 $ 171,825 Domestic $ 132,027 $ 112,615 $ 166,152 Foreign 25,508 55,408 5,673 $ 157,535 $ 168,023 $ 171,825 Year ended December 31, 2018 2017 2016 Domestic taxes: Current $ 120,876 $ 94,340 $ 175,522 Deferred 11,151 18,275 (9,370 ) 132,027 112,615 166,152 Foreign taxes: Current 19,925 7,562 18,627 Deferred 5,583 47,846 (12,954 ) 25,508 55,408 5,673 Taxes on income $ 157,535 $ 168,023 $ 171,825 |
Reconciliation Of Unrecognized Tax Benefits | g. A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31, 2018 2017 Beginning balance $ 342,904 $ 306,677 Increases related to tax positions taken during prior years 745 46,520 Decreases related to expiration of statute of limitations - (41,022 ) Increases related to tax positions taken during the current year 31,514 30,729 Ending balance $ 375,163 *) $ 342,904 *) *) As of December 31, 2018 and 2017 unrecognized tax benefit in the amounts of $18,413 and $5,451 were presented net from deferred tax asset. |
Schedule of Effective Income Tax Reconciliation | Reconciliation between the theoretical tax expenses, assuming all income is taxed at the statutory rate in Israel and the actual income tax as reported in the statements of income is as follows: Year ended December 31, 2018 2017 2016 Income before taxes as reported in the statements of income $ 978,839 $ 970,946 $ 896,672 Statutory tax rate in Israel 23% 24% 25% Decrease in taxes resulting from: Effect of “Preferred Enterprise” status *) (9% ) (11% ) (5% ) Decrease in US deferred tax due to US tax rate change - 4% - Others, net 2% - (1% ) Effective tax rate 16% 17% 19% *) Basic earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status $ 0.57 $ 0.68 $ 0.26 Diluted earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status $ 0.56 $ 0.66 $ 0.26 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Number of Reserved and Authorized Shares Under the Equity Incentive Plans | As of December 31, 2018, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below: 2018 Number in Stock Options outstanding 8,542 RSU outstanding 1,293 PSU outstanding 85 Ordinary shares available for issuance under the Equity Incentive Plans 6,610 Total Reserved and Authorized Shares as of December 31, 2018 16,530 |
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information is as follows: Options in Weighted Aggregate 2018 Outstanding at beginning of year 13,142 $75.97 $381,022 Granted 2,048 $109.26 Exercised (6,041) $59.16 Forfeited (607) $84.15 Outstanding at December 31, 2018 8,542 $95.26 101,203 Exercisable at December 31, 2018 4,007 $87.37 70,507 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSUs activity is as follows: Year ended December 31, 2018 Number in thousands Unvested at beginning of year 893 Granted 932 Vested (318) Forfeited (214) Unvested the end of the year 1,293 |
Summary of Performance Stock Units Activity | A summary of the Company’s PSUs activity is as follows: Year ended December 31, 2018 Number in thousands Unvested at beginning of year 175 Vested (65) Forfeited (25) Unvested the end of the year 85 |
Stock-based Compensation Expense Related to Stock Options, RSUs and PSUs | Stock-based compensation expense related to stock options, RSUs and PSUs is included in the consolidated statements of operations as follows (in thousands): Year ended December 31, 2018 2017 2016 Cost of revenues $ 3,545 $ 2,741 $ 2,153 Research and development 17,644 16,233 12,718 Selling and marketing 20,800 18,278 19,168 General and administrative 47,337 50,207 48,693 $ 89,326 $ 87,459 $ 82,732 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2018 2017 2016 Net income $ 821,305 $ 802,923 $ 724,847 Weighted average ordinary shares outstanding (in thousands) 156,632 162,720 170,155 Dilutive effect: Employee stock options, RSUs and PSUs (in thousands) 2,815 3,942 3,141 Diluted weighted average ordinary shares outstanding (in thousands) 159,447 166,662 173,296 Basic earnings per ordinary share $ 5.24 $ 4.93 $ 4.26 Diluted earnings per ordinary share $ 5.15 $ 4.82 $ 4.18 |
GEOGRAPHIC INFORMATION AND SE_2
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Summary of Revenue by Geographic Area | 1. Revenues based on the channel partners’ location: Year ended December 31, 2018 2017 2016 Americas, principally U.S. $ 892,426 $ 871,297 $ 847,458 Europe 717,205 674,987 627,524 Asia-Pacific, Middle-East and Africa 306,844 308,374 266,319 $ 1,916,475 $ 1,854,658 $ 1,741,301 |
Property and Equipment, Net by Geographic Area | 2. Property and equipment, net: December 31, 2018 2017 Israel $ 71,641 $ 71,655 U.S. 3,463 2,782 Rest of the world 3,410 3,330 $ 78,514 $ 77,767 |
Total Revenues by Product Lines | b. Summary information about product lines: The Company’s products can be classified by three main product lines. The following table presents total revenues for the years ended December 31, 2018, 2017 and 2016 by product lines: Year ended December 31, 2018 2017 2016 Product and licenses: Network security Gateways $ 468,509 $ 506,057 $ 516,254 Other *) 57,048 52,969 56,710 525,557 559,026 572,964 Security subscriptions 542,323 480,352 389,885 Software updates and maintenance 848,595 815,280 778,452 Total revenues $ 1,916,475 $ 1,854,658 $ 1,741,301 *) Comprised of Endpoint security, Mobile security and Security management products, each comprising of less than 10% of products and licenses revenues. |
Summary of Financial Income, Net | c. Financial income, net: Year ended December 31, 2018 2017 2016 Financial income: Interest income $ 88,475 $ 74,900 $ 69,425 Realized gain on sale of marketable securities, net - - 2,993 88,475 74,900 72,418 Financial expense: Amortization of marketable securities premium and accretion of discount, net 13,560 20,012 23,388 Realized loss on sale of marketable securities, net 1,803 176 - Foreign currency re-measurement 5,719 5,555 2,658 Others 2,327 2,128 1,970 23,409 27,871 28,016 $ 65,066 $ 47,029 $ 44,402 |
General - Additional Informatio
General - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Number of operating segments | 1 | ||
Number of Reportable segment | 1 | ||
Trade receivables | $ | $ 207,938 | $ 189,236 | |
Credit Concentration Risk | Revenue | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of revenue derived from distribution channels | 36.00% | 36.00% | 37.00% |
Credit Concentration Risk | Revenue | First Channel Partner | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of revenue derived from distribution channels | 17.00% | 18.00% | 19.00% |
Credit Concentration Risk | Revenue | Second Channel Partner | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of revenue derived from distribution channels | 18.00% | 18.00% | 18.00% |
Summary of Annual Rate of Depre
Summary of Annual Rate of Depreciation on Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 4.00% |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | The shorter of term of the lease or the useful life of the asset |
Minimum | Computers and peripheral equipment | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 33.00% |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 10.00% |
Maximum | Computers and peripheral equipment | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 50.00% |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 20.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)Segmentshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Jan. 01, 2017USD ($) |
Significant Accounting Policies [Line Items] | ||||||
Number of operating segments | Segment | 1 | |||||
Goodwill impairment losses | $ 0 | $ 0 | $ 0 | |||
Deferred revenue | 1,337,954,000 | 1,186,573,000 | ||||
Revenue expected to be recognized from remaining performance obligations | 1,557,552,000 | |||||
Revenue expected to be recognized from remaining performance obligations, 2019 | 1,069,938,000 | |||||
Provision for estimated sales returns, rebates, stock rotations, and other customer rights | 8,491,000 | 8,978,000 | ||||
Severance expenses | $ 11,267,000 | 10,180,000 | 8,165,000 | |||
Maximum percentage of annual compensation contributed by employees towards employee benefit plan | 50.00% | |||||
Maximum amount contributed by employees toward employee benefit plan | $ 18,500 | |||||
Additional amount contributed by employees aged 50 and over towards employee benefit plan | $ 6,000 | |||||
Percentage of employee contributions contributed by employer towards employee benefit plan | 50.00% | |||||
Maximum percentage of employee's eligible compensation | 6.00% | |||||
Contributions by employer | $ 4,163,000 | 3,613,000 | 2,290,000 | |||
Minimum percentage of tax benefit realized upon settlement | 50.00% | |||||
Advertising expenses | $ 3,106,000 | 1,764,000 | 3,127,000 | |||
Allowance for doubtful accounts | 1,033,000 | 1,911,000 | ||||
Bad debt expense (income) | (878,000) | (344,000) | 154,000 | |||
Write off of bad debts | $ 627,000 | $ 29,000 | $ 0 | |||
Anti-dilutive shares excluded from computation of earnings per share amount | shares | 3,235,080 | 1,640,329 | 4,232,063 | |||
Manufacturing partner and supplier liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Significant costs associated with exposure | $ 0 | $ 0 | ||||
Other Long Term Assets | ||||||
Significant Accounting Policies [Line Items] | ||||||
Deferred commission | 22,623,000 | |||||
Accounting Standards Update 2016-16 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative effect on retained earnings | $ (442,000) | |||||
Accounting Standards Update 2016-09 | Retained earnings | Forfeitures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative-effect net of tax adjustment to increase (decrease) retained earnings | $ (2,149,000) | |||||
Accounting Standards Update 2016-09 | Retained earnings | Income Tax Accounting | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative-effect net of tax adjustment to increase (decrease) retained earnings | $ 86,132,000 | |||||
Security Subscriptions and Software Updates and Maintenance | ||||||
Significant Accounting Policies [Line Items] | ||||||
Deferred revenue | 878,538,000 | |||||
Subsequent Event | Accounting Standards Update 2016-02 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Right-of-use leased assets | $ 27,000,000 | |||||
Lease liabilities | $ 27,000,000 | |||||
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative, notional amount | 337,498,000 | 338,053,000 | ||||
Gains (losses) from derivatives not designated as hedge | 45,000 | 107,000 | ||||
Foreign Exchange Forward Contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative, notional amount | 112,053,000 | 7,354,000 | ||||
Other comprehensive income, gain (loss) on outstanding forward contracts | (801,000) | 267,000 | ||||
Foreign Exchange Forward Contracts | Financial Income | Not Designated as Hedging Instrument | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative, net gain (loss) | (33,330,000) | 25,086,000 | $ 1,822,000 | |||
Foreign Exchange Forward Contracts | Operating Expenses | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative, net gain (loss) | $ (4,637,000) | $ 4,655,000 | $ 120,000 | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of intangible assets | 8 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of intangible assets | 20 years |
Weighted Average Assumptions of
Weighted Average Assumptions of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 21.98% | 22.20% | 22.23% |
Risk-free interest rate | 2.67% | 1.71% | 1.07% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 5 years 1 month 17 days | 4 years 9 months 3 days | 4 years 7 months 24 days |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 22.88% | 18.21% | 23.24% |
Risk-free interest rate | 1.07% | 0.50% | 0.16% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 6 months | 6 months | 6 months |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (15,634) | |
Other comprehensive loss before reclassifications | (14,331) | |
Amounts reclassified from accumulated other comprehensive income | 5,468 | |
Net current-period other comprehensive loss | (8,863) | |
Ending balance | (24,497) | |
Unrealized gains (losses) on marketable securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (15,719) | |
Other comprehensive loss before reclassifications | (9,757) | |
Amounts reclassified from accumulated other comprehensive income | 1,387 | [1] |
Net current-period other comprehensive loss | (8,370) | |
Ending balance | (24,089) | |
Unrealized gains (losses) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 85 | |
Other comprehensive loss before reclassifications | (4,574) | |
Amounts reclassified from accumulated other comprehensive income | 4,081 | [2] |
Net current-period other comprehensive loss | (493) | |
Ending balance | $ (408) | |
[1] | The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized losses on marketable securities are included within financial income, net. | |
[2] | The reclassification out of accumulated other comprehensive income during the year ended December 31, 2018 for realized gains on cash flow hedges are included mostly within research and development expenses as well as other operating expenses. |
Schedule of New Accounting Pron
Schedule of New Accounting Pronouncements and Changes In Accounting Principles (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 64,220 | $ 59,063 | $ 33,575 |
Deferred tax asset, net | 84,688 | 113,059 | 119,431 |
Retained earnings | $ 9,043,014 | 8,222,151 | $ 8,203,035 |
Accounting Standards Update 2014-09 | Adjustments Due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | 25,488 | ||
Deferred tax asset, net | (6,372) | ||
Retained earnings | $ 19,116 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Dome9 Security Ltd | |
Business Acquisition [Line Items] | |
Acquisition date | Oct. 23, 2018 |
Acquisition - Summary of Busine
Acquisition - Summary of Business Combination and Allocated the Purchase Consideration to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Oct. 23, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 950,572 | $ 812,012 | |
Dome9 Security Ltd | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 138,560 | ||
Core technology | 26,958 | ||
Net liabilities assumed | (4,498) | ||
Total | $ 161,020 |
Marketable Securities with Cont
Marketable Securities with Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost up to one year | $ 1,448,859 | $ 1,167,187 |
Gross unrealized gains up to one year | 15 | 63 |
Gross unrealized losses up to one year | (6,232) | (1,984) |
Fair value up to one year | 1,442,642 | 1,165,266 |
Amortized cost, over one year through five years | 2,312,609 | 2,456,715 |
Gross unrealized gains, over one year through five years | 1,368 | 518 |
Gross unrealized losses, over one year through five years | (26,632) | (19,918) |
Fair value, over one year through five years | 2,287,345 | 2,437,315 |
Government And Corporate Debentures Fixed Interest Rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost up to one year | 1,203,258 | 1,026,555 |
Gross unrealized gains up to one year | 9 | 48 |
Gross unrealized losses up to one year | (5,017) | (1,698) |
Fair value up to one year | 1,198,249 | 1,024,905 |
Amortized cost, over one year through five years | 1,819,541 | 1,985,849 |
Gross unrealized gains, over one year through five years | 1,089 | 384 |
Gross unrealized losses, over one year through five years | (21,630) | (15,204) |
Fair value, over one year through five years | 1,799,001 | 1,971,029 |
Government Sponsored Enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost up to one year | 231,699 | 112,951 |
Gross unrealized gains up to one year | 6 | 1 |
Gross unrealized losses up to one year | (1,200) | (275) |
Fair value up to one year | 230,505 | 112,677 |
Amortized cost, over one year through five years | 383,190 | 424,619 |
Gross unrealized gains, over one year through five years | 278 | |
Gross unrealized losses, over one year through five years | (4,092) | (4,687) |
Fair value, over one year through five years | 379,376 | 419,932 |
Government And Corporate Debentures Floating Interest Rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost up to one year | 13,902 | 27,681 |
Gross unrealized gains up to one year | 14 | |
Gross unrealized losses up to one year | (15) | (11) |
Fair value up to one year | 13,887 | 27,684 |
Amortized cost, over one year through five years | 109,878 | 46,247 |
Gross unrealized gains, over one year through five years | 1 | 134 |
Gross unrealized losses, over one year through five years | (910) | (27) |
Fair value, over one year through five years | $ 108,969 | $ 46,354 |
Investments with Continuous Unr
Investments with Continuous Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | $ 962,999 | $ 1,911,338 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (5,366) | (8,636) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 2,287,106 | 1,358,676 |
Investments with continuous unrealized losses for 12 months or greater, Unrealized losses | (27,498) | (13,266) |
Total Investments with continuous unrealized losses, Fair Value | 325,006 | 3,270,014 |
Total Investments with continuous unrealized losses, Unrealized losses | (32,864) | (21,902) |
Government And Corporate Debentures Fixed Interest Rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 807,274 | 1,647,125 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (4,369) | (7,318) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 1,852,625 | 1,063,690 |
Investments with continuous unrealized losses for 12 months or greater, Unrealized losses | (22,278) | (9,585) |
Total Investments with continuous unrealized losses, Fair Value | 2,659,899 | 2,710,815 |
Total Investments with continuous unrealized losses, Unrealized losses | (26,647) | (16,903) |
Government Sponsored Enterprises Debentures | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 40,213 | 236,403 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (79) | (1,281) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 429,101 | 294,986 |
Investments with continuous unrealized losses for 12 months or greater, Unrealized losses | (5,213) | (3,681) |
Total Investments with continuous unrealized losses, Fair Value | 469,315 | 531,389 |
Total Investments with continuous unrealized losses, Unrealized losses | (5,292) | (4,962) |
Government And Corporate Debentures Floating Interest Rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 115,511 | 27,810 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (917) | (37) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 5,380 | |
Investments with continuous unrealized losses for 12 months or greater, Unrealized losses | (7) | |
Total Investments with continuous unrealized losses, Fair Value | 120,892 | 27,810 |
Total Investments with continuous unrealized losses, Unrealized losses | $ (925) | $ (37) |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Interest receivable | $ 22,940 | $ 19,871 |
Financial Assets Measured at Fa
Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $ 846 | $ 160 |
Total financial assets | 3,781,063 | 3,661,085 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,230 | 58,344 |
Government And Corporate Debentures Fixed Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,997,250 | 2,995,934 |
Government And Corporate Debentures Floating Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 122,856 | 74,038 |
Government Sponsored Enterprises Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 609,881 | 532,609 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 50,230 | 58,344 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,230 | 58,344 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 846 | 160 |
Total financial assets | 3,730,833 | 3,602,741 |
Fair Value, Inputs, Level 2 | Government And Corporate Debentures Fixed Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,997,250 | 2,995,934 |
Fair Value, Inputs, Level 2 | Government And Corporate Debentures Floating Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 122,856 | 74,038 |
Fair Value, Inputs, Level 2 | Government Sponsored Enterprises Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 609,881 | $ 532,609 |
Property and Equipment Net (Det
Property and Equipment Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $ 11,081 | $ 10,511 |
Property and equipment, gross | 147,429 | 153,997 |
Accumulated depreciation | 68,915 | 76,230 |
Property and equipment, net | 78,514 | 77,767 |
Computers and peripheral equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 51,389 | 61,343 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,838 | 7,934 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 78,121 | $ 74,209 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, beginning of the year | $ 812,012 |
Acquisitions | 138,560 |
Goodwill, end of the year | $ 950,572 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 69,942 | $ 42,984 |
Accumulated amortization | 28,975 | 24,589 |
Other intangible assets, net | $ 40,967 | 18,395 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 8 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 20 years | |
Core Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 8 years | |
Original amount | $ 44,422 | 17,464 |
Accumulated amortization | 9,737 | 6,927 |
Other intangible assets, net | 34,685 | 10,537 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 25,520 | 25,520 |
Accumulated amortization | 19,238 | 17,662 |
Other intangible assets, net | $ 6,282 | $ 7,858 |
Trademarks and trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 15 years | |
Trademarks and trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 20 years |
Estimated Future Amortization E
Estimated Future Amortization Expense of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2019 | $ 7,104 | |
2020 | 6,888 | |
2021 | 6,888 | |
2022 | 5,738 | |
2023 | 4,122 | |
Thereafter | 10,227 | |
Other intangible assets, net | $ 40,967 | $ 18,395 |
Employees And Payroll Accruals
Employees And Payroll Accruals - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Employee and payroll accruals related to payroll accrued for the benefit of certain related parties, years 2002 to 2007 | $ 654 | $ 1,194 |
Deferred Revenues (Detail)
Deferred Revenues (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 1,337,954 | $ 1,186,573 |
Security subscriptions | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 554,215 | 476,261 |
Software updates and maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 765,899 | 702,786 |
Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 17,840 | $ 7,526 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued products and licenses costs | $ 74,487 | $ 70,252 |
Marketing expenses payable | 10,083 | 16,373 |
Legal accrual | 46,529 | 53,607 |
Other accrued expenses | 42,875 | 36,336 |
Accrued expenses and other liabilities total | $ 173,974 | $ 176,568 |
Commitments And Contingent Li_3
Commitments And Contingent Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease agreements, expiring year | 2027 | ||
Rent expenses | $ 8,174 | $ 11,098 | $ 10,097 |
Aggregate Minimum Lease Commitm
Aggregate Minimum Lease Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases, Operating [Abstract] | |
2019 | $ 7,844 |
2020 | 6,857 |
2021 | 5,200 |
2022 | 4,215 |
2023 | 3,669 |
Thereafter | 2,656 |
Operating leases, total | $ 30,441 |
Taxes On Income - Additional In
Taxes On Income - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2010 | |
Operating Loss Carryforwards [Line Items] | |||||
Corporate tax rate | 23.00% | 24.00% | 25.00% | ||
Corporate tax rate | 23.00% | 24.00% | 25.00% | ||
Tax benefit related to re-measurement of deferred tax balance | $ 41,084,000 | ||||
Undistributed earnings of foreign subsidiaries | $ 357,298,000 | ||||
Unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 60,811,000 | ||||
Unrecognized tax benefit liability adjusted within 12 months | 56,702,000 | ||||
Uncertain tax positions interest expense | 5,547,000 | 4,168,000 | $ 6,025,000 | ||
Uncertain tax positions accrued interest | 30,766,000 | 25,219,000 | |||
Penalties accrued | $ 0 | $ 0 | |||
Maximum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Dividend income tax rate | 20.00% | ||||
Minimum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Dividend income tax rate | 15.00% | ||||
U.S. | |||||
Operating Loss Carryforwards [Line Items] | |||||
Corporate tax rate | 35.00% | ||||
U.S. | Scenario, Plan | |||||
Operating Loss Carryforwards [Line Items] | |||||
Corporate tax rate | 21.00% | ||||
U S Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. loss carry forward | $ 395,236,000 | ||||
Operating loss carry forward expiration years | 2020 | ||||
U S State | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. loss carry forward | $ 96,380,000 | ||||
U S State | Maximum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carry forward expiration years | 2034 | ||||
U S State | Minimum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carry forward expiration years | 2020 | ||||
Research And Development Tax Credit | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. loss carry forward | $ 20,270,000 | ||||
Research And Development Tax Credit | Maximum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carry forward expiration years | 2038 | ||||
Research And Development Tax Credit | Minimum | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carry forward expiration years | 2019 | ||||
Tax Year 2012 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Enacted effective income tax rate | 16.00% | ||||
Technological Preferred Enterprise | |||||
Operating Loss Carryforwards [Line Items] | |||||
Enacted effective income tax rate | 12.00% |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Carry forward tax losses | $ 90,099 | $ 106,481 |
Employee stock based compensation | 19,275 | 25,117 |
Deferred revenues | 22,153 | 19,200 |
Other | 53,243 | 53,848 |
Deferred tax assets before valuation allowance | 184,770 | 204,646 |
Valuation allowance - mainly in respect to carryforward losses | (55,745) | (60,703) |
Deferred tax asset | 129,025 | 143,943 |
Intangible assets | (11,335) | (8,862) |
Undistributed earnings of subsidiary | (9,925) | (9,925) |
Other | (4,663) | (274) |
Deferred tax liability | (25,923) | (19,061) |
Deferred tax asset, net | $ 103,102 | $ 124,882 |
Income Before Taxes (Detail)
Income Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 902,235 | $ 923,744 | $ 862,554 |
Foreign | 76,605 | 47,202 | 34,118 |
Income before taxes as reported in the statements of income | $ 978,840 | $ 970,946 | $ 896,672 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense Benefit [Line Items] | |||
Current | $ 140,800 | $ 101,902 | $ 194,149 |
Deferred | 16,735 | 66,121 | (22,324) |
Taxes on income | 157,535 | 168,023 | 171,825 |
Domestic | 132,027 | 112,615 | 166,152 |
Foreign | 25,508 | 55,408 | 5,673 |
Taxes on income | 157,535 | 168,023 | 171,825 |
Domestic Tax Authority | |||
Income Tax Expense Benefit [Line Items] | |||
Current | 120,876 | 94,340 | 175,522 |
Deferred | 11,151 | 18,275 | (9,370) |
Domestic | 132,027 | 112,615 | 166,152 |
U.S. | |||
Income Tax Expense Benefit [Line Items] | |||
Foreign taxes, Current | 19,925 | 7,562 | 18,627 |
Foreign taxes, Deferred | 5,583 | 47,846 | (12,954) |
Foreign | $ 25,508 | $ 55,408 | $ 5,673 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 342,904 | $ 306,677 |
Increases related to tax positions taken during prior years | 745 | 46,520 |
Decreases related to expiration of statute of limitations | (41,022) | |
Increases related to tax positions taken during the current year | 31,514 | 30,729 |
Ending balance | $ 375,163 | $ 342,904 |
Reconciliation of Unrecognize_2
Reconciliation of Unrecognized Tax Benefits (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit | $ 18,413 | $ 5,451 |
Effective Income Tax Reconcilia
Effective Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Income before taxes as reported in the statements of income | $ 978,840 | $ 970,946 | $ 896,672 | |
Statutory tax rate in Israel | 23.00% | 24.00% | 25.00% | |
Effect of "Preferred Enterprise" status | [1] | (9.00%) | (11.00%) | (5.00%) |
Decrease in US deferred tax due to US tax rate change | 4.00% | |||
Others, net | 2.00% | (1.00%) | ||
Effective tax rate | 16.00% | 17.00% | 19.00% | |
[1] | Basic earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status $ 0.57 $ 0.68 $ 0.26 Diluted earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status $ 0.56 $ 0.66 $ 0.26 |
Effective Income Tax Reconcil_2
Effective Income Tax Reconciliation (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Basic earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status | $ 0.57 | $ 0.68 | $ 0.26 |
Diluted earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status | $ 0.56 | $ 0.66 | $ 0.26 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 25, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate ordinary shares repurchase | $ 7,909,889,000 | |||
Shares repurchase, shares | 10,341,000 | 9,535,992 | 12,298,434 | |
Shares repurchase, value | $ 1,103,865,000 | $ 995,322,000 | $ 987,897,000 | |
Weighted average fair value granted under options | $ 30.14 | $ 25 | $ 17.14 | |
Total intrinsic value of options exercised | $ 297,477,000 | $ 95,707,000 | $ 112,989,000 | |
Total fair value of restricted stock units vested | 32,279,000 | 35,824,000 | 22,772,000 | |
Unrecognized compensation expense | $ 189,964,000 | |||
Unrecognized compensation expense expected period of recognition (in years) | 1 year 11 months 15 days | |||
Options to purchase ordinary shares reserved for issuance | 16,530,000 | |||
Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized amount under share repurchase programs per quarter | $ 2,000,000,000 | |||
Authorized amount under share repurchase programs | $ 325,000,000 | |||
Shares repurchase, value | $ 1,103,865,000 | $ 995,322,000 | $ 987,897,000 | |
Frequency of periodic stock repurchases | Quarter | |||
Two Thousand Five Equity Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum period options granted to employees, officers and directors (in years) | 7 years | |||
Reserved and Authorized Shares, percent of ordinary shares issued and outstanding at year end | 10.00% | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares issued | 828,441 | |||
Percentage of salary to purchase Ordinary shares | 15.00% | |||
Ordinary shares per employee, maximum | 1,250 | |||
Price of Ordinary shares purchased under ESPP, percentage of lower of fair market value of Ordinary share on subscription date of each offering period or on purchase date | 85.00% | |||
Purchase of Ordinary shares by employees | 308,920 | 346,241 | 311,257 | |
Average price per share purchased by employees | $ 87.584 | $ 73.470 | $ 66.080 | |
Compensation expense recognized | $ 6,654,000 | $ 6,656,000 | $ 5,432,000 | |
US ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase ordinary shares reserved for issuance | 500,000 | |||
Rest of the World ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase ordinary shares reserved for issuance | 1,000,000 | |||
Stock Options | Two Thousand Five Equity Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value of stock units granted | $ 101.20 | $ 103.50 | $ 80.73 | |
Restricted Stock Units (RSUs) | Two Thousand Five Equity Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Performance Stock Units PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value of stock units granted | $ 0 | $ 104.38 | $ 82.01 | |
Total fair value of restricted stock units vested | $ 6,354,000 | $ 6,241,000 | $ 3,056,000 |
Number of Reserved and Authoriz
Number of Reserved and Authorized Shares Under the Equity Incentive Plans (Detail) - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options outstanding | 8,542 | 13,142 |
Ordinary shares available for issuance under the Equity Incentive Plans | 6,610 | |
Total Reserved and Authorized Shares as of December 31, 2018 | 16,530 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock unit outstanding | 1,293 | 893 |
Performance Stock Units PSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock unit outstanding | 85 | 175 |
Stock Option Activity and Relat
Stock Option Activity and Related Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options, Outstanding at beginning of year | 13,142 | |
Options, Granted | 2,048 | |
Options, Exercised | (6,041) | |
Options, Forfeited | (607) | |
Options, Outstanding at December 31, 2018 | 8,542 | |
Options, Exercisable at December 31, 2018 | 4,007 | |
Weighted average exercise price, Outstanding at beginning of year | $ 75.97 | |
Weighted average exercise price, Granted | 109.26 | |
Weighted average exercise price, Exercised | 59.16 | |
Weighted average exercise price, Forfeited | 84.15 | |
Weighted average exercise price, Outstanding at December 31, 2018 | 95.26 | |
Weighted average exercise price, Exercisable at December 31, 2018 | $ 87.37 | |
Aggregate intrinsic value, Outstanding | $ 101,203 | $ 381,022 |
Aggregate intrinsic value, Exercisable as of December 31, 2018 | $ 70,507 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of year | 893 |
Granted | 932 |
Vested | (318) |
Forfeited | (214) |
Unvested the end of the year | 1,293 |
Summary of Performance Stock Un
Summary of Performance Stock Units Activity (Detail) - Performance Stock Units PSU shares in Thousands | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of year | 175 |
Vested | (65) |
Forfeited | (25) |
Unvested the end of the year | 85 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation Expense Related to Stock Options, RSUs and PSUs (Detail) - 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 | $ 89,327 | $ 87,459 | $ 82,732 |
Cost of Revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 3,545 | 2,741 | 2,153 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 17,644 | 16,233 | 12,718 |
Selling and Marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 20,800 | 18,278 | 19,168 |
General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 47,337 | $ 50,207 | $ 48,693 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 821,305 | $ 802,923 | $ 724,847 |
Weighted average ordinary shares outstanding (in thousands) | 156,632 | 162,720 | 170,155 |
Employee stock options, RSUs and PSUs (in thousands) | 2,815 | 3,942 | 3,141 |
Diluted weighted average ordinary shares outstanding (in thousands) | 159,447 | 166,662 | 173,296 |
Basic earnings per ordinary share | $ 5.24 | $ 4.93 | $ 4.26 |
Diluted earnings per ordinary share | $ 5.15 | $ 4.82 | $ 4.18 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Geographical Information [Line Items] | |||
Total revenues | $ 1,916,475 | $ 1,854,658 | $ 1,741,301 |
Americas Principally U S | |||
Schedule Of Geographical Information [Line Items] | |||
Total revenues | 892,426 | 871,297 | 847,458 |
Europe | |||
Schedule Of Geographical Information [Line Items] | |||
Total revenues | 717,205 | 674,987 | 627,524 |
Asia-Pacific, Middle-East and Africa | |||
Schedule Of Geographical Information [Line Items] | |||
Total revenues | $ 306,844 | $ 308,374 | $ 266,319 |
Property and Equipment, Net by
Property and Equipment, Net by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | $ 78,514 | $ 77,767 |
Israel | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | 71,641 | 71,655 |
U.S. | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | 3,463 | 2,782 |
Rest of World | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | $ 3,410 | $ 3,330 |
Geographic Information and Se_3
Geographic Information and Selected Statements of Income Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Product | |
Segment Reporting [Abstract] | |
Number of main product lines | 3 |
Revenues by Product Lines (Deta
Revenues by Product Lines (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 1,916,475 | $ 1,854,658 | $ 1,741,301 | |
Network Security Gateways | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 468,509 | 506,057 | 516,254 | |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | [1] | 57,048 | 52,969 | 56,710 |
Products and licenses | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 525,557 | 559,026 | 572,964 | |
Security subscriptions | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 542,323 | 480,352 | 389,885 | |
Software updates and maintenance | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 848,595 | $ 815,280 | $ 778,452 | |
[1] | Comprised of Endpoint security, Mobile security and Security management products, each comprising of less than 10% of products and licenses revenues. |
Revenues by Product Lines (Pare
Revenues by Product Lines (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Products and Licenses Revenues | Product Concentration Risk | Other | |
Revenue from External Customer [Line Items] | |
Concentration Risk, Percentage | 10.00% |
Financial Income, Net (Detail)
Financial Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortization of marketable securities premium and accretion of discount, net | $ 13,560 | $ 20,012 | $ 23,388 |
Realized gain (loss) loss on sale of marketable securities, net | (1,803) | (176) | 2,993 |
Financial income, net | 65,066 | 47,029 | 44,402 |
Financial Income | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Interest income | 88,475 | 74,900 | 69,425 |
Realized gain (loss) loss on sale of marketable securities, net | 2,993 | ||
Total financial income | 88,475 | 74,900 | 72,418 |
Financial Expense | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortization of marketable securities premium and accretion of discount, net | 13,560 | 20,012 | 23,388 |
Realized gain (loss) loss on sale of marketable securities, net | (1,803) | (176) | |
Foreign currency re-measurement loss | 5,719 | 5,555 | 2,658 |
Others | 2,327 | 2,128 | 1,970 |
Total financial expense | $ 23,409 | $ 27,871 | $ 28,016 |