Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
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 Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 137,151,930 |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Ordinary shares |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity File Number | 000-28584 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 5 Shlomo Kaplan Street Tel Aviv 6789159 |
Entity Address, City or Town | Israel |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 6789159 |
Entity Address, Country | IL |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 959 Skyway Road, Suite 300 |
Entity Address, City or Town | San Carlos |
Entity Address, Postal Zip Code | 94070 |
Entity Address, Country | US |
Local Phone Number | 628-2000 |
City Area Code | 650 |
Contact Personnel Name | John Slavitt, Esq |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 255.7 | $ 279.2 |
Short-term bank deposits | 214.5 | 0.6 |
Marketable securities | 1,217.5 | 1,300.1 |
Trade receivables, net | 540.8 | 495.8 |
Prepaid expenses and other assets | 50.1 | 58.5 |
Total current assets | 2,278.6 | 2,134.2 |
LONG-TERM ASSETS: | ||
Marketable securities | 2,311.9 | 2,368.8 |
Property and equipment, net | 88.1 | 87.7 |
Deferred tax asset, net | 34.4 | 55.3 |
Other intangible assets, net | 38.5 | 42.8 |
Goodwill | 1,002.2 | 981.9 |
Other assets | 85.5 | 94.2 |
Total long-term assets | 3,560.6 | 3,630.7 |
Total assets | 5,839.2 | 5,764.9 |
CURRENT LIABILITIES: | ||
Trade payables | 17.5 | 15.9 |
Employees and payroll accruals | 220.9 | 190.9 |
Deferred revenues | 1,108.6 | 1,011.9 |
Accrued expenses and other liabilities | 196.8 | 178 |
Total current liabilities | 1,543.8 | 1,396.7 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 373.3 | 374.8 |
Income tax accrual | 422.8 | 393.3 |
Other liabilities | 33.1 | 31.3 |
Total long-term liabilities | 829.2 | 799.4 |
Total liabilities | 2,373 | 2,196.1 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares, NIS 0.01 par value, 500.0 shares authorized at December 31, 2020 and 2019; 261.3 shares issued at December 31, 2020 and 2019; 137.2 and 145.5 shares outstanding at December 31, 2020 and 2019, respectively | 0.8 | 0.8 |
Additional paid-in capital | 2,028.4 | 1,770.3 |
Treasury shares at cost, 124.1 and 115.8 ordinary shares at December 31, 2020 and 2019, respectively | (9,319) | (8,092.7) |
Accumulated other comprehensive income | 40.7 | 21.7 |
Retained earnings | 10,715.3 | 9,868.7 |
Total shareholders' equity | 3,466.2 | 3,568.8 |
Total liabilities and shareholders' equity | $ 5,839.2 | $ 5,764.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 261,300,000 | 261,300,000 |
Ordinary shares, shares outstanding | 137,200,000 | 145,500,000 |
Treasury shares, shares | 124,100,000 | 115,800,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues: | ||||
Total revenues | $ 2,064.9 | $ 1,994.8 | $ 1,916.5 | |
Operating expenses: | ||||
Total cost of revenues | 226.5 | 215.4 | 201.4 | |
Research and development | 252.8 | 239.2 | 211.5 | |
Selling and marketing | 569.9 | 552.7 | 500.9 | |
General and administrative | 111.5 | 105.7 | 88.9 | |
Total operating expenses | 1,160.7 | 1,113 | 1,002.7 | |
Operating income | 904.2 | 881.8 | 913.8 | |
Financial income, net | 66.6 | 80.6 | 65.1 | |
Income before taxes on income | 970.8 | 962.4 | 978.9 | |
Taxes on income | 124.2 | 136.7 | 157.6 | |
Net income | $ 846.6 | $ 825.7 | $ 821.3 | |
Basic earnings per ordinary share | $ 6.03 | $ 5.48 | $ 5.24 | |
Diluted earnings per ordinary share | $ 5.96 | $ 5.43 | $ 5.15 | |
Products and licenses | ||||
Revenues: | ||||
Total revenues | $ 513.6 | $ 510.8 | $ 525.6 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 96.8 | 90.7 | 92 |
Security subscriptions | ||||
Revenues: | ||||
Total revenues | 671.1 | 610.3 | 542.3 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 26.4 | 24.6 | 17.7 |
Software updates and maintenance | ||||
Revenues: | ||||
Total revenues | 880.2 | 873.7 | 848.6 | |
Operating expenses: | ||||
Total cost of revenues | [1] | 96.7 | 94.5 | 88.9 |
Amortization of technology | ||||
Operating expenses: | ||||
Total cost of revenues | $ 6.6 | $ 5.6 | $ 2.8 | |
[1] | Not including amortization of technology shown separately. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 846.6 | $ 825.7 | $ 821.3 |
Change in unrealized gains (losses) on marketable securities: | |||
Unrealized gains (losses) arising during the period, net of tax | 21.2 | 45.8 | (9.8) |
Losses (gains) reclassified into earnings, net of tax | (3.4) | (0.6) | 1.4 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | 17.8 | 45.2 | (8.4) |
Change in unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during the period, net of tax | 6.4 | 2.2 | (4.6) |
Losses (gains) reclassified into earnings, net of tax | (5.2) | (1.2) | 4.1 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Total | 1.2 | 1 | (0.5) |
Other comprehensive income (loss), net of tax | 19 | 46.2 | (8.9) |
Comprehensive income | $ 865.6 | $ 871.9 | $ 812.4 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary shares | Additional paid-in capital | Treasury shares at cost | Accumulated other comprehensive income (loss) | Retained earnings |
Balance at Dec. 31, 2017 | $ 3,600.1 | $ 0.8 | $ 1,305.1 | $ (5,893.2) | $ (15.6) | $ 8,203 |
Cumulative-effect adjustment from adoption | ASC 606 | 19.1 | |||||
Cumulative-effect adjustment from adoption | Accounting Standards Update 2016-16 | (0.4) | |||||
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 353.6 | 201.2 | 152.4 | |||
Treasury shares at cost | (1,103.9) | (1,103.9) | ||||
Stock-based compensation | 89.3 | 89.3 | ||||
Other comprehensive income (loss), net of tax | (8.9) | (8.9) | ||||
Fair value of awards attributable to pre-acquisition services | 2.2 | 2.2 | ||||
Net income | 821.3 | 821.3 | ||||
Balance at Dec. 31, 2018 | 3,772.4 | 0.8 | 1,597.8 | (6,844.7) | (24.5) | 9,043 |
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 95.3 | 65.3 | 30 | |||
Treasury shares at cost | (1,278) | (1,278) | ||||
Stock-based compensation | 106.7 | 106.7 | ||||
Other comprehensive income (loss), net of tax | 46.2 | 46.2 | ||||
Fair value of awards attributable to pre-acquisition services | 0.5 | 0.5 | ||||
Net income | 825.7 | 825.7 | ||||
Balance at Dec. 31, 2019 | 3,568.8 | 0.8 | 1,770.3 | (8,092.7) | 21.7 | 9,868.7 |
Issuance of treasury shares under stock purchase plans, upon exercise of options and vesting of restricted stock units | 216.8 | 145.4 | 71.4 | |||
Treasury shares at cost | (1,297.7) | (1,297.7) | ||||
Stock-based compensation | 112.5 | 112.5 | ||||
Other comprehensive income (loss), net of tax | 19 | 19 | ||||
Fair value of awards attributable to pre-acquisition services | 0.2 | 0.2 | ||||
Net income | 846.6 | 846.6 | ||||
Balance at Dec. 31, 2020 | $ 3,466.2 | $ 0.8 | $ 2,028.4 | $ (9,319) | $ 40.7 | $ 10,715.3 |
STATEMENTS OF CHANGES IN SHAR_2
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury shares | 11.4 | 11.2 | 10.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 846.6 | $ 825.7 | $ 821.3 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property and equipment | 18.9 | 16.7 | 16.4 |
Amortization of premium and accretion of discount on marketable securities, net | 9.4 | 2 | 13.6 |
Realized loss (gain) on sale of marketable securities, net | (4.5) | (0.7) | 1.8 |
Amortization of intangible assets | 8.2 | 7.3 | 4.4 |
Stock-based compensation | 112.5 | 106.7 | 89.3 |
Deferred income tax expense | 10.5 | 9.5 | 16.8 |
Increase in trade receivables, net | (45) | (0.4) | (21.8) |
Decrease in prepaid expenses and other assets | 20.2 | 15.5 | 2 |
Increase (decrease) in trade payables | 1.6 | (4.8) | 6.6 |
Increase in employees and payroll accruals | 36.1 | 39.8 | 20.1 |
Increase in income tax accrual and accrued expenses and other liabilities | 46.1 | 34.6 | 28.3 |
Increase in deferred revenues | 95.2 | 48.7 | 145 |
Other | 5.2 | 3.7 | (0.2) |
Net cash provided by operating activities | 1,161 | 1,104.3 | 1,143.6 |
Cash flows from investing activities: | |||
Proceeds from short-term bank deposits | 4.9 | ||
Proceeds from maturity of marketable securities | 2,299.7 | 2,140.1 | 1,464.4 |
Proceeds from sale of marketable securities | 318.6 | 167.4 | 150.2 |
Investment in marketable securities | (2,460.2) | (2,188.9) | (1,767.5) |
Investment in short-term bank deposits | (213.9) | (5) | |
Cash paid in conjunction with acquisitions, net of acquired cash | (23.1) | (37.6) | (154.9) |
Purchase of property and equipment | (19.3) | (25.9) | (17.2) |
Net cash provided by (used in) investing activities | (98.2) | 60 | (330) |
Cash flows from financing activities: | |||
Proceeds from issuance of treasury shares upon exercise of options | 216.8 | 95.3 | 353.6 |
Purchase of treasury shares at cost | (1,297.7) | (1,278) | (1,103.9) |
Payments related to shares withheld for taxes | (5.4) | (6) | (4.7) |
Net cash used in financing activities | (1,086.3) | (1,188.7) | (755) |
Increase (decrease) in cash and cash equivalents | (23.5) | (24.4) | 58.6 |
Cash and cash equivalents at the beginning of the year | 279.2 | 303.6 | 245 |
Cash and cash equivalents at the end of the year | 255.7 | 279.2 | 303.6 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for taxes on income | 90.8 | 87.3 | 67.9 |
Non-cash investing activity | |||
Fair value of awards attributable to pre-acquisition services | 0.2 | 0.5 | $ 2.2 |
Operating lease liabilities arising from obtaining right of use assets | $ 10.3 | $ 33.4 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 2019 and 2018, approximately 39%, 37% and 36% of the Company’s revenues were derived from two channel partners, respectively. Revenues derived from one channel partner in 2020, 2019 and 2018 were 22%, 19% and 19%, respectively, and revenues derived from the other channel partner in 2020, 2019 and 2018 were 17%, 18%, and 17%, respectively, of the Company’s revenues in such years. Trade receivable balances from these two channel partners aggregated to $236.6 and $203.0 as of December 31, 2020 and 2019, respectively. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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 the Company and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar re-measured All transaction gains and losses from the 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 investment. e. Short-term bank deposits: Bank deposits with maturities of more than three months at investment but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values. f. Trade Receivables: Trade receivables are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, There was no cumulative effect from adoption on our consolidated financial statements. As of December 31, 2020 and 2019, trade receivable, net, were $540.8 and $495.8, respectively, and the allowances of trade receivable were insignificant. 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 and total write offs expenses during 2020, 2019 and 2018 were insignificant. g. 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 debt 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. On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, There was no cumulative effect from adoption on the Company’s consolidated financial statements. No credit losses were recorded for the year ended December 31, 2020, and there was no impairment charge for any unrealized losses in 2019 and 2018. h. 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 i. Leases: The company’s operating leases comprised of offices and equipment leases. On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, right-of-use non-lease ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases are generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Upon adoption, the Company recognized total ROU assets of $27.7, with corresponding liabilities of $27.7 on the consolidated balance sheets. The adoption did not impact the beginning retained earnings, or prior year consolidated statements of income and statements of cash flows. As of December 31, 2020 the Company recognized total ROU assets of $29.7, with corresponding liabilities Rent expenses for the years ended December 31, 2020, 2019 and 2018, were $13.1, $11.1 and $8.2 respectively. j. 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. k. 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 No. 2017-04, Prior to the adoption of ASU 2017-04, two-step The Company operates in one operating segment, and this segment is the 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 2020, 2019 and 2018, no impairment losses have been identified. l. 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. m. 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 2020, 2019 and 2018, no impairment losses have been identified. n. 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 , 2020 and 2019 , the Company has not accrued any significant liability in respect with this exposure. o. 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. p. 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 $1,011.9 and $980.2 for the year ended December 31, 2020 and December 31, 2019, respectively. Revenues expected to be recognized from remaining performance obligations were $1,679.8 and $1,560.3 as of December 31, 2020 and December 31, 2019, respectively. Of the balance as of December 31, 2020 the Company expects to recognize approximately $1,190.6 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 $6.9 and $4.6 as of December 31 , 2020 and 2019 , respectively, 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, 2020 and 2019, the amount of deferred commission was $18.1 and $20.2, respectively, , 2020 , 2019 and 2018 the Company recorded amortization expenses in connection with deferred commissions in the amount of $15.3, $13.1 and $11.2, respectively. 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. For information regarding disaggregated revenues, please refer to Note 14 below. q. 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. r. Severance pay: 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 sheets, as the Company is legally released from the obligation to employees once the required deposit amounts have been paid. s. Employee benefit plan: The Company has a 401(K) defined contribution plan covering certain employees in the U.S. The Company matches 50 t. 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. u. Advertising costs: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2020, 2019 and 2018, were $3.7, $5.2 and $3.1 respectively. v. 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 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. w. 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 sheets 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 Company entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As of December 31, 2020 and 2019, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting, in the notional amount of $396.2 and $342.3, 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 2020, 2019 and 2018 were $24.8, $16.7 and $(33.3), respectively. The fair value of the Company’s outstanding forward contracts at December 31, 2020 and 2019 was insignificant. 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, 2020 and 2019, the Company had outstanding forward contracts in the notional amount of $37.7 and $38.2, 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 sheets and reclassified to the statements of income in the period the related hedged items affect earnings. During 2020, 2019 and 2018 gains (losses) in the amount of $5.9, $1.3 and $(4.6), 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 , 2020 and 2019 was insignificant. x. 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 6.2 , and for 2020, 2019 and 2018, respectively. z. Fair value of financial instruments: The Company measures its investments in money market funds (classified as cash equivalents), short-term bank deposits, 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. aa. 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 ab. 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 ac. 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. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 3:- ACQUISITIONS On January 10, 2019, the Company completed the acquisition of all outstanding shares of ForceNock Ltd., a privately-held Israeli-based company. Founded in 2017, ForceNock developed a Web Application and API Protection (WAAP) technology, which utilizes machine learning, behavioral and reputation based security engines. On November 14, 2019, the Company completed the acquisition of all outstanding shares of Cymplify Security Ltd., a privately-held Israeli-based company, and a developer of a new IoT cyber security technology. On December 3, 2019, the Company completed the acquisition of all outstanding shares of Protego Inc., a privately-held US-based best-in-class On September 17, 2020 the Company completed the acquisition of all outstanding shares of Odo Security Ltd., a privately-held Israeli-based company, and a developer of a cloud-based, clientless Secure Access Service Edge (SASE) technology that delivers secure remote access. The purchase price for all the acquisitions mentioned was allocated to tangible and intangible assets acquired and liabilities assumed based on their respective fair values. In addition, the transactions included additional consideration related to compensation for post combination services which were recorded as prepaid expenses and other long term assets and will be recognized over the requisite service period. |
CASH AND CASH EQUIVALENTS, SHOR
CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | NOTE 4:- CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND MARKETABLE SECURITIES December 31, 2020 2019 Cash and cash equivalents: Cash $ 204.4 $ 182.0 Money market funds 14.5 28.2 Short term deposits 36.8 69.0 Total Cash and cash equivalents 255.7 279.2 Short-term bank deposits: 214.5 0.6 Marketable securities: Government and corporate debentures - fixed interest rate 2,626.9 3,008.9 Government-sponsored enterprises debentures 714.7 475.6 Government and corporate debentures - floating interest rate 187.8 184.4 Total Marketable securities 3,529.4 3,668.9 Total Cash and cash equivalents, short-term bank deposits and marketable securities $ 3,999.6 $ 3,948.7 The gross unrealized gains on the Company’s marketable securities were $51.4 and $29.0 as of December 31, 2020 and 2019, respectively. The gross unrealized losses on the Company’s marketable securities were insignificant as of December 31, 2020 and 2019. The following table classifies the Company’s marketable securities by contractual maturities: December 31, 2020 2019 Contractual maturity year: 2021 $ 1,217.5 $ 1,300.1 2022 1,053.4 1,041.9 2023 740.8 770.3 2024 351.0 372.1 2025 166.7 184.5 Total $ 3,529.4 $ 3,668.9 As of December 31, 2020 and 2019, interest receivable amounted to $19.5 and $24.4, respectively, and is included within prepaid expenses and other assets in the balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
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, short-term bank deposits, 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, 2020 2019 Fair value measurements using input type Fair value measurements using input type Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 14.5 $ - $ - $ 28.2 $ - $ 28.2 Short term deposits 36.8 - 36.8 69.0 - 69.0 Short-term bank deposits 214.5 - 214.5 0.6 - 0.6 Marketable securities: Government and corporate debentures - fixed interest rate - 2,626.9 2,626.9 - 3,008.9 3,008.9 Government-sponsored enterprises debentures - 714.7 714.7 - 475.6 475.6 Government and corporate debentures - floating interest rate - 187.8 187.8 - 184.4 184.4 Foreign currency derivative contracts - 2.5 2.5 - 0.7 0.7 Total financial assets $ 265.8 $ 3,531.9 $ 3,797.7 $ 97.8 $ 3,669.6 $ 3,767.4 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2020 2019 Cost: Computers and peripheral equipment $ 61.3 $ 58.1 Office furniture and equipment 8.4 7.6 Building 78.9 78.8 Leasehold improvements 26.4 20.7 175.0 165.2 Accumulated depreciation 86.9 77.5 Property and equipment, net $ 88.1 $ 87.7 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | NOTE 7:- GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill: 2020 2019 Balance as of January 1 $ 981.9 $ 950.5 Acquisitions 20.3 31.4 Balance as of December 31 $ 1,002.2 $ 981.9 b. Other intangible assets, net: Net other intangible assets consisted of the following: Useful December 31, Life 2020 2019 Original amount: Core technology 8 $ 55.4 $ 53.5 Trademarks and trade names 15 – 20 25.5 25.5 80.9 79.0 Accumulated amortization: Core technology 20.0 15.4 Trademarks and trade names 22.4 20.8 42.4 36.2 Other intangible assets, net: Core technology 35.4 38.1 Trademarks and trade names 3.1 4.7 $ 38.5 $ 42.8 Other intangible assets which were fully amortized as of the prior year, are disposed from the original amount and the accumulated amortization balances. Core technology and Trademarks and trade names have a weighted-average remaining useful lives of 3.4 and 2.2 years, respectively. The estimated future amortization expense of other intangible assets as of December 31, 2020 is as follows: 2021 $ 8.5 2022 7.4 2023 5.7 2024 5.4 2025 5.3 Thereafter 6.2 $ 38.5 |
DEFERRED REVENUES
DEFERRED REVENUES | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUES | NOTE 8:- DEFERRED REVENUES Deferred revenues consisted of the following: December 31, 2020 2019 Security subscriptions $ 678.5 $ 613.1 Software updates and maintenance 775.4 757.4 Other 28.0 16.2 $ 1,481.9 $ 1,386.7 The majority of the deferred revenues are recognized within one year or less and presented as current deferred revenues in the balance sheets. Substantially all of the remaining deferred revenues are presented as long term deferred revenues and are recognized for a period greater than one year and up to five years. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 9:- ACCRUED EXPENSES AND OTHER LIABILITIES The components of accrued expenses and other liabilities are as follows: December 31, 2020 2019 Accrued products and licenses costs $ 96.4 $ 88.6 Marketing expenses payable 7.1 6.3 Income tax payable 11.9 — Legal accrual 32.6 40.2 Other accrued expenses 48.8 42.9 $ 196.8 $ 178.0 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 10:- COMMITMENTS AND CONTINGENT LIABILITIES Litigations: 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, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 11:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax: 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 of 23 % . 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 and Preferred Technological Enterprise Regime will be freely distributable as dividends, subject to a 15% or 20% withholding tax (or lower rate for non Israeli resident shareholder, under an applicable tax treaty). However, upon the distribution of a dividend from Preferred Income and Technological Preferred Enterprise to an Israeli company, no 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. Company’s tax assessments through 2015 tax year are considered final. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, Check Point Ltd. and its Israeli subsidiaries calculate their tax liability in dollar according to certain orders. The tax liability, as calculated in dollar is translated into New Israeli Shekels according to the exchange rate as of December 31 st b. 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 $421.2 and unrecognized deferred tax liability related to such earning amounted to $76.2 as of December 31 , 2020 . c. 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, 2020 and 2019, the Company’s deferred taxes were in respect of the following: December 31, 2020 2019 Carry forward tax losses $ 81.5 $ 76.2 Employee stock based compensation 27.6 25.9 Deferred revenues 10.5 26.3 Other 39.1 41.2 Deferred tax assets before valuation allowance 158.7 169.6 Valuation allowance – mainly in respect to carryforward losses (59.2 ) (57.7 ) Deferred tax asset 99.5 111.9 Intangible assets (21.0 ) (16.9 ) Undistributed earnings of subsidiary (9.9 ) (9.9 ) Other (14.2 ) (10.2 ) Deferred tax liability (45.1 ) (37.0 ) Deferred tax asset, net $ 54.4 $ 74.9 *) As of December 31, 2020 and 2019 unrecognized tax benefit in the amounts of $20.0 and $19.6 was presented net from deferred tax asset. Through December 31, 2020, the U.S. subsidiaries had a U.S. federal loss carry-forward of approximately $331.3 expiring gradually beginning 2021, mainly resulting from tax benefits related to employees’ stock option exercises that can be carried forward and offset against taxable income. Through December 31, 2020, the U.S. subsidiaries had a U.S. state net loss carry forward of approximately $80.3, which expires between fiscal years 2021 and fiscal 2034, and is subject to limitations on their utilization. Through December 31, 2020, the U.S. subsidiaries had federal and states research and development tax credits of approximately $23.4, which expire between fiscal years 2021 and fiscal 2040 and are subject to limitations on their utilization. d. Income before taxes on income is comprised as follows: Year ended December 31, 2020 2019 2018 Domestic $ 896.8 $ 881.1 $ 902.3 Foreign 74.0 81.3 76.6 $ 970.8 $ 962.4 $ 978.9 e. Taxes on income are comprised of the following: Year ended December 31, 2020 2019 2018 Domestic taxes: Current $ 112.0 $ 111.9 $ 120.9 Deferred 0.8 2.0 11.1 112.8 113.9 132.0 Foreign taxes: Current 1.7 15.3 19.9 Deferred 9.7 7.5 5.7 11.4 22.8 25.6 Taxes on income $ 124.2 $ 136.7 $ 157.6 f. 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31 , 2020 2019 Beginning balance $ 412.9 $ 375.1 Increases related to tax positions taken during prior years 49.4 43.2 Decreases related to statute of limitations (72.8 ) (62.7 ) Increases related to tax positions taken during the current year 53.3 57.3 Ending balance $ *)442.8 $ *)412.9 *) As of December 31, 2020 and 2019 unrecognized tax benefit in the amounts of $20.0 and $19.6 was 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. The Company adjust the 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 $71.4 out of the unrecognized tax benefit liability will be adjusted within 12 months due to statute of limitations. During the years ended December 31, 2020, 2019 and 2018, the Company recorded $(0.6), $4.2 and $5.5, respectively for interest expense (income) related to uncertain tax positions. As of December 31 , 2020 and 2019 , the Company had accrued interest liability related to uncertain tax positions in the amounts of $34.3 and $34.9, respectively, which is included within income tax accrual on the balance sheets. The Company did not accrue penalties during the years ended December 31 , 2020 and 2019 . The Company files 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 throughout 2016 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. g. 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, 2020 2019 2018 Income before taxes as reported in the statements of $ 970.8 $ 962.4 $ 978.9 Statutory tax rate in Israel 23 % 23 % 23 % Decrease in taxes resulting from: Effect of “Preferred Enterprise” status *) (11 %) (11 % (9 % Others, net 1 % 2 % 2 % Effective tax rate 13 % 14 % 16 % *) Basic earnings per share amounts of the benefit $ 0.73 $ 0.66 $ 0.57 *) Diluted earnings per share amounts of the benefit $ 0.72 $ 0.65 $ 0.56 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 12:- 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 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 with purchases of up to $325 a quarter. On February 3, 2020 the Company announced the expansion of the Company’s on-going share repurchase program by an additional $2,000. Under the share repurchase program, as extended, the Company is authorized to continue to repurchase up to $325 each quarter. As of December 31, 2020, the Company repurchased ordinary shares for an aggregate amount of $10,485.5. During 2020, 2019 and 2018 the Company repurchased 11.4, 11.2, and 10.3 shares for an aggregate amount of $1,297.7, $1,278.0 and $1,103.9, respectively. c. Stock Options, RSUs and PSUs: 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 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 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 10 % of the sum of (i) the number of ordinary shares issued and outstanding on such date and (ii) the number of ordinary shares reserved and authorized under the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date (provided, however, that in no event shall the number of Reserved and Authorized Shares be less than the number of ordinary shares reserved and authorized under the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date). 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, 2020, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below: 2020 Stock Options outstanding 9.4 RSU outstanding 1.7 PSU outstanding * ) Ordinary shares available for issuance under the Equity Incentive Plans 3.7 Total Reserved and Authorized Shares as of December 31, 2020 14.8 *) Represents an amount lower than 0.1 As of December 31, 2020 the aggregate amount of shares, stock options, RSU and PSU outstanding is 148.3 . A summary of the Company’s stock option activity and related information is as follows: Options Weighted Aggregate 2020 Outstanding at beginning of year 10.7 $ 101.57 $ 122.4 Granted 1.1 $ 111.81 Exercised (2.3 ) $ 83.80 Forfeited (0.1 ) $ 110.30 Outstanding at December 31, 2020 9.4 $ 106.99 $ 244.3 Exercisable at December 31, 2020 5.5 $ 102.90 $ 164.1 The weighted average fair values at grant date of options granted for the years ended December 31, 2020, 2019 and 2018; with an exercise price equal to the market value at the date of grant were $22.0, $22.8 and $30.1 per share, respectively. The total intrinsic value of options exercised during the years 2020, 2019 and 2018 was $81.7, $25.4 and $297.5, respectively. The aggregate intrinsic value of the outstanding stock options at December 31, 2020 and 2019, represents the intrinsic value of 9.4 and outstanding options that are in-the-money as of such dates. As of December 31, 2020 all outstanding options are in-the-money. 5.8 outstanding options are out-of-the-money, A summary of the Company’s RSUs activity is as follows: Year ended December 31, 2020 Unvested at beginning of year 1.4 Granted 0.9 Vested (0.5 ) Forfeited (0.1 ) Unvested, December 31, 2020 1.7 The weighted average fair values at grant date of RSUs granted for the years ended December 31, 2020, 2019 and 2018 were $105.3, $113.3 and $101.2 per share, respectively. The total fair value of shares vested during the years 2020, 2019 and 2018 was $49.6, $47.0 and $32.3, respectively. As of December 31, 2020, the Company had approximately 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 , 0.5 ordinary shares are authorized for issuance under the US ESPP, and Commencing June 19 , 2019 the Pool of shares for the US ESPP was set on 0.8 shares and 2.0 ordinary shares are authorized for issuance under the rest of the world (ROW). As of December 31, 2020, 1.6 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 single 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 % 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 2020, 2019 and 2018, employees purchased , and ordinary shares at average prices of $ , $ and $ 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, 2020, 2019 and 2018, the Company recognized $10.2, $8.0 and $6.7, 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 income as follows: Year ended December 31, 2020 2019 2018 Cost of revenues $ 4.5 $ 4.4 $ 3.6 Research and development 23.5 18.9 17.6 Selling and marketing 36.8 28.8 20.8 General and administrative 47.7 54.6 47.3 $ 112.5 $ 106.7 $ 89.3 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13:- EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2020 2019 2018 Net income $ 846.6 $ 825.7 $ 821.3 Weighted average ordinary shares outstanding 140.5 150.6 156.6 Dilutive effect: Employee stock options, RSUs and PSUs 1.5 1.5 2.8 Diluted weighted average ordinary shares outstanding 142.0 152.1 159.4 Basic earnings per ordinary share $ 6.03 $ 5.48 $ 5.24 Diluted earnings per ordinary share $ 5.96 $ 5.43 $ 5.15 |
GEOGRAPHIC INFORMATION AND SELE
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA | NOTE 14:- 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 and property and equipment, net for the years ended December 31, 2020, 2019 and 2018, by geographic area: 1. Revenues based on the channel partners’ location: Year ended December 31, 2020 2019 2018 *) Americas $ 929.8 $ 912.7 $ 892.4 Europe, Middle East and Africa 891.4 849.9 809.0 Asia Pacific 243.7 232.2 215.1 $ 2,064.9 $ 1,994.8 $ 1,916.5 *) Starting 2019, Middle East and Africa are part of the “Europe Middle East and Africa” region, while before it was part of “Asia Pacific, Middle East and Africa” region. 2018 figures were reclassified to present the updated revenue distribution by geography. 2. Property and equipment, net: December 31, 2020 2019 Israel $ 76.8 $ 77.4 U.S. 5.4 5.8 Rest of the world 5.9 4.5 $ 88.1 $ 87.7 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, 2020, 2019 and 2018 by product lines: Year ended December 31, 2020 2019 2018 Product and licenses: Network security Gateways $ 472.4 $ 455.9 $ 468.5 Other *) 41.2 54.9 57.1 513.6 510.8 525.6 Security subscriptions 671.1 610.3 542.3 Software updates and maintenance 880.2 873.7 848.6 Total revenues $ 2,064.9 $ 1,994.8 $ 1,916.5 *) 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, 2020 2019 2018 Financial income: Interest income $ 78.2 $ 93.3 $ 88.5 Financial expense: Amortization of marketable securities premium and accretion of discount, net 9.4 2.0 13.6 Realized loss (gain) on sale of marketable securities, net (4.5 ) (0.7 ) 1.8 Foreign currency re-measurement 4.5 8.9 5.7 Others 2.2 2.5 2.3 11.6 12.7 23.4 $ 66.6 $ 80.6 $ 65.1 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 the Company and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, non-dollar 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 investment. |
Short-Term Bank Deposit | e. Short-term bank deposits: Bank deposits with maturities of more than three months at investment but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values. |
Trade Receivables | f. Trade Receivables: Trade receivables are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, There was no cumulative effect from adoption on our consolidated financial statements. As of December 31, 2020 and 2019, trade receivable, net, were $540.8 and $495.8, respectively, and the allowances of trade receivable were insignificant. 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 and total write offs expenses during 2020, 2019 and 2018 were insignificant. |
Investments in Marketable Securities | g. 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 debt 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. On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, There was no cumulative effect from adoption on the Company’s consolidated financial statements. No credit losses were recorded for the year ended December 31, 2020, and there was no impairment charge for any unrealized losses in 2019 and 2018. |
Property and equipment, net | h. 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 |
Leases | i. Leases: The company’s operating leases comprised of offices and equipment leases. On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, right-of-use non-lease ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases are generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Upon adoption, the Company recognized total ROU assets of $27.7, with corresponding liabilities of $27.7 on the consolidated balance sheets. The adoption did not impact the beginning retained earnings, or prior year consolidated statements of income and statements of cash flows. As of December 31, 2020 the Company recognized total ROU assets of $29.7, with corresponding liabilities Rent expenses for the years ended December 31, 2020, 2019 and 2018, were $13.1, $11.1 and $8.2 respectively. |
Business combination | j. 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 | k. 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 No. 2017-04, Prior to the adoption of ASU 2017-04, two-step The Company operates in one operating segment, and this segment is the 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 2020, 2019 and 2018, no impairment losses have been identified. |
Other Intangible Assets, Net | l. 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 | m. 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 2020, 2019 and 2018, no impairment losses have been identified. |
Manufacturing partner and supplier liabilities | n. 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 , 2020 and 2019 , the Company has not accrued any significant liability in respect with this exposure. |
Research and Development Costs | o. 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 | p. 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 $1,011.9 and $980.2 for the year ended December 31, 2020 and December 31, 2019, respectively. Revenues expected to be recognized from remaining performance obligations were $1,679.8 and $1,560.3 as of December 31, 2020 and December 31, 2019, respectively. Of the balance as of December 31, 2020 the Company expects to recognize approximately $1,190.6 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 $6.9 and $4.6 as of December 31 , 2020 and 2019 , respectively, 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, 2020 and 2019, the amount of deferred commission was $18.1 and $20.2, respectively, , 2020 , 2019 and 2018 the Company recorded amortization expenses in connection with deferred commissions in the amount of $15.3, $13.1 and $11.2, respectively. 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. For information regarding disaggregated revenues, please refer to Note 14 below. |
Cost of Revenues | q. 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 | r. Severance pay: 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 sheets, as the Company is legally released from the obligation to employees once the required deposit amounts have been paid. |
Employee Benefit Plan | s. Employee benefit plan: The Company has a 401(K) defined contribution plan covering certain employees in the U.S. The Company matches 50 |
Income Taxes | t. 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 | u. Advertising costs: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2020, 2019 and 2018, were $3.7, $5.2 and $3.1 respectively. |
Concentrations of Credit Risk | v. 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 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. |
Derivatives and Hedging | w. 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 sheets 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 Company entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As of December 31, 2020 and 2019, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting, in the notional amount of $396.2 and $342.3, 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 2020, 2019 and 2018 were $24.8, $16.7 and $(33.3), respectively. The fair value of the Company’s outstanding forward contracts at December 31, 2020 and 2019 was insignificant. 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, 2020 and 2019, the Company had outstanding forward contracts in the notional amount of $37.7 and $38.2, 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 sheets and reclassified to the statements of income in the period the related hedged items affect earnings. During 2020, 2019 and 2018 gains (losses) in the amount of $5.9, $1.3 and $(4.6), 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 , 2020 and 2019 was insignificant. |
Basic and Diluted Earnings per Share | x. 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 6.2 , and for 2020, 2019 and 2018, respectively. |
Accounting for stock-based compensation | y. 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 2020, 2019 and 2018 is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, Employee Stock Options 2020 2019 2018 Employee Stock Options Expected volatility 23.63% 20.78% 21.98% Risk-free interest rate 0.32% 1.98% 2.67% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 4.15 4.11 5.13 Employee Stock Purchase Plan Expected volatility 36.58% 18.59% 22.88% Risk-free interest rate 0.05% 0.8% 1.07% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 0.5 0.5 0.5 |
Fair Value of Financial Instruments | z. Fair value of financial instruments: The Company measures its investments in money market funds (classified as cash equivalents), short-term bank deposits, 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 | aa. 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 |
Treasury Shares | ab. 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 | ac. 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 2019 and 2018 is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, Employee Stock Options 2020 2019 2018 Employee Stock Options Expected volatility 23.63% 20.78% 21.98% Risk-free interest rate 0.32% 1.98% 2.67% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 4.15 4.11 5.13 Employee Stock Purchase Plan Expected volatility 36.58% 18.59% 22.88% Risk-free interest rate 0.05% 0.8% 1.07% Dividend yield 0.0% 0.0% 0.0% Expected term (years) 0.5 0.5 0.5 |
CASH AND CASH EQUIVALENTS, SH_2
CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | December 31, 2020 2019 Cash and cash equivalents: Cash $ 204.4 $ 182.0 Money market funds 14.5 28.2 Short term deposits 36.8 69.0 Total Cash and cash equivalents 255.7 279.2 Short-term bank deposits: 214.5 0.6 Marketable securities: Government and corporate debentures - fixed interest rate 2,626.9 3,008.9 Government-sponsored enterprises debentures 714.7 475.6 Government and corporate debentures - floating interest rate 187.8 184.4 Total Marketable securities 3,529.4 3,668.9 Total Cash and cash equivalents, short-term bank deposits and marketable securities $ 3,999.6 $ 3,948.7 |
Summary of Contractual Obligation, Fiscal Year Maturity | The following table classifies the Company’s marketable securities by contractual maturities: December 31, 2020 2019 Contractual maturity year: 2021 $ 1,217.5 $ 1,300.1 2022 1,053.4 1,041.9 2023 740.8 770.3 2024 351.0 372.1 2025 166.7 184.5 Total $ 3,529.4 $ 3,668.9 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Fair value measurements using input type Fair value measurements using input type Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 14.5 $ - $ - $ 28.2 $ - $ 28.2 Short term deposits 36.8 - 36.8 69.0 - 69.0 Short-term bank deposits 214.5 - 214.5 0.6 - 0.6 Marketable securities: Government and corporate debentures - fixed interest rate - 2,626.9 2,626.9 - 3,008.9 3,008.9 Government-sponsored enterprises debentures - 714.7 714.7 - 475.6 475.6 Government and corporate debentures - floating interest rate - 187.8 187.8 - 184.4 184.4 Foreign currency derivative contracts - 2.5 2.5 - 0.7 0.7 Total financial assets $ 265.8 $ 3,531.9 $ 3,797.7 $ 97.8 $ 3,669.6 $ 3,767.4 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | December 31, 2020 2019 Cost: Computers and peripheral equipment $ 61.3 $ 58.1 Office furniture and equipment 8.4 7.6 Building 78.9 78.8 Leasehold improvements 26.4 20.7 175.0 165.2 Accumulated depreciation 86.9 77.5 Property and equipment, net $ 88.1 $ 87.7 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Goodwill | a. Goodwill: 2020 2019 Balance as of January 1 $ 981.9 $ 950.5 Acquisitions 20.3 31.4 Balance as of December 31 $ 1,002.2 $ 981.9 |
Other Intangible Assets, Net | b. Other intangible assets, net: Net other intangible assets consisted of the following: Useful December 31, Life 2020 2019 Original amount: Core technology 8 $ 55.4 $ 53.5 Trademarks and trade names 15 – 20 25.5 25.5 80.9 79.0 Accumulated amortization: Core technology 20.0 15.4 Trademarks and trade names 22.4 20.8 42.4 36.2 Other intangible assets, net: Core technology 35.4 38.1 Trademarks and trade names 3.1 4.7 $ 38.5 $ 42.8 |
Estimated Future Amortization Expense of Other Intangible Assets | The estimated future amortization expense of other intangible assets as of December 31, 2020 is as follows: 2021 $ 8.5 2022 7.4 2023 5.7 2024 5.4 2025 5.3 Thereafter 6.2 $ 38.5 |
DEFERRED REVENUES (Tables)
DEFERRED REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenues | Deferred revenues consisted of the following: December 31, 2020 2019 Security subscriptions $ 678.5 $ 613.1 Software updates and maintenance 775.4 757.4 Other 28.0 16.2 $ 1,481.9 $ 1,386.7 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | The components of accrued expenses and other liabilities are as follows: December 31, 2020 2019 Accrued products and licenses costs $ 96.4 $ 88.6 Marketing expenses payable 7.1 6.3 Income tax payable 11.9 — Legal accrual 32.6 40.2 Other accrued expenses 48.8 42.9 $ 196.8 $ 178.0 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | As of December 31, 2020 and 2019, the Company’s deferred taxes were in respect of the following: December 31, 2020 2019 Carry forward tax losses $ 81.5 $ 76.2 Employee stock based compensation 27.6 25.9 Deferred revenues 10.5 26.3 Other 39.1 41.2 Deferred tax assets before valuation allowance 158.7 169.6 Valuation allowance – mainly in respect to carryforward losses (59.2 ) (57.7 ) Deferred tax asset 99.5 111.9 Intangible assets (21.0 ) (16.9 ) Undistributed earnings of subsidiary (9.9 ) (9.9 ) Other (14.2 ) (10.2 ) Deferred tax liability (45.1 ) (37.0 ) Deferred tax asset, net $ 54.4 $ 74.9 |
Schedule of Income Before Taxes | d. Income before taxes on income is comprised as follows: Year ended December 31, 2020 2019 2018 Domestic $ 896.8 $ 881.1 $ 902.3 Foreign 74.0 81.3 76.6 $ 970.8 $ 962.4 $ 978.9 |
Components of Income Tax Expense | e. Taxes on income are comprised of the following: Year ended December 31, 2020 2019 2018 Domestic taxes: Current $ 112.0 $ 111.9 $ 120.9 Deferred 0.8 2.0 11.1 112.8 113.9 132.0 Foreign taxes: Current 1.7 15.3 19.9 Deferred 9.7 7.5 5.7 11.4 22.8 25.6 Taxes on income $ 124.2 $ 136.7 $ 157.6 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows: December 31 , 2020 2019 Beginning balance $ 412.9 $ 375.1 Increases related to tax positions taken during prior years 49.4 43.2 Decreases related to statute of limitations (72.8 ) (62.7 ) Increases related to tax positions taken during the current year 53.3 57.3 Ending balance $ *)442.8 $ *)412.9 *) As of December 31, 2020 and 2019 unrecognized tax benefit in the amounts of $20.0 and $19.6 was presented net from deferred tax asset. |
Schedule of Effective Income Tax Reconciliation | g. 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, 2020 2019 2018 Income before taxes as reported in the statements of $ 970.8 $ 962.4 $ 978.9 Statutory tax rate in Israel 23 % 23 % 23 % Decrease in taxes resulting from: Effect of “Preferred Enterprise” status *) (11 %) (11 % (9 % Others, net 1 % 2 % 2 % Effective tax rate 13 % 14 % 16 % *) Basic earnings per share amounts of the benefit $ 0.73 $ 0.66 $ 0.57 *) Diluted earnings per share amounts of the benefit $ 0.72 $ 0.65 $ 0.56 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Number of Reserved and Authorized Shares Under the Equity Incentive Plans | As of December 31, 2020, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below: 2020 Stock Options outstanding 9.4 RSU outstanding 1.7 PSU outstanding * ) Ordinary shares available for issuance under the Equity Incentive Plans 3.7 Total Reserved and Authorized Shares as of December 31, 2020 14.8 *) Represents an amount lower than 0.1 |
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information is as follows: Options Weighted Aggregate 2020 Outstanding at beginning of year 10.7 $ 101.57 $ 122.4 Granted 1.1 $ 111.81 Exercised (2.3 ) $ 83.80 Forfeited (0.1 ) $ 110.30 Outstanding at December 31, 2020 9.4 $ 106.99 $ 244.3 Exercisable at December 31, 2020 5.5 $ 102.90 $ 164.1 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSUs activity is as follows: Year ended December 31, 2020 Unvested at beginning of year 1.4 Granted 0.9 Vested (0.5 ) Forfeited (0.1 ) Unvested, December 31, 2020 1.7 |
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 income as follows: Year ended December 31, 2020 2019 2018 Cost of revenues $ 4.5 $ 4.4 $ 3.6 Research and development 23.5 18.9 17.6 Selling and marketing 36.8 28.8 20.8 General and administrative 47.7 54.6 47.3 $ 112.5 $ 106.7 $ 89.3 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Net income $ 846.6 $ 825.7 $ 821.3 Weighted average ordinary shares outstanding 140.5 150.6 156.6 Dilutive effect: Employee stock options, RSUs and PSUs 1.5 1.5 2.8 Diluted weighted average ordinary shares outstanding 142.0 152.1 159.4 Basic earnings per ordinary share $ 6.03 $ 5.48 $ 5.24 Diluted earnings per ordinary share $ 5.96 $ 5.43 $ 5.15 |
GEOGRAPHIC INFORMATION AND SE_2
GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Revenue by Geographic Area | 1. Revenues based on the channel partners’ location: Year ended December 31, 2020 2019 2018 *) Americas $ 929.8 $ 912.7 $ 892.4 Europe, Middle East and Africa 891.4 849.9 809.0 Asia Pacific 243.7 232.2 215.1 $ 2,064.9 $ 1,994.8 $ 1,916.5 *) Starting 2019, Middle East and Africa are part of the “Europe Middle East and Africa” region, while before it was part of “Asia Pacific, Middle East and Africa” region. 2018 figures were reclassified to present the updated revenue distribution by geography. |
Property and Equipment, Net by Geographic Area | 2. Property and equipment, net: December 31, 2020 2019 Israel $ 76.8 $ 77.4 U.S. 5.4 5.8 Rest of the world 5.9 4.5 $ 88.1 $ 87.7 |
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, 2020, 2019 and 2018 by product lines: Year ended December 31, 2020 2019 2018 Product and licenses: Network security Gateways $ 472.4 $ 455.9 $ 468.5 Other *) 41.2 54.9 57.1 513.6 510.8 525.6 Security subscriptions 671.1 610.3 542.3 Software updates and maintenance 880.2 873.7 848.6 Total revenues $ 2,064.9 $ 1,994.8 $ 1,916.5 *) 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, 2020 2019 2018 Financial income: Interest income $ 78.2 $ 93.3 $ 88.5 Financial expense: Amortization of marketable securities premium and accretion of discount, net 9.4 2.0 13.6 Realized loss (gain) on sale of marketable securities, net (4.5 ) (0.7 ) 1.8 Foreign currency re-measurement 4.5 8.9 5.7 Others 2.2 2.5 2.3 11.6 12.7 23.4 $ 66.6 $ 80.6 $ 65.1 |
General - Additional Informatio
General - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Number of operating segments | 1 | ||
Number of Reportable segment | 1 | ||
Trade receivables | $ | $ 236.6 | $ 203 | |
Credit Concentration Risk | Revenue | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of revenue derived from distribution channels | 39.00% | 37.00% | 36.00% |
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% | 17.00% |
Credit Concentration Risk | Revenue | Second Channel Partner | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of revenue derived from distribution channels | 22.00% | 19.00% | 19.00% |
Summary of Annual Rate of Depre
Summary of Annual Rate of Depreciation on Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
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) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Segmentshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Jan. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of operating segments | Segment | 1 | |||
Goodwill impairment losses | $ 0 | $ 0 | $ 0 | |
Deferred revenue | 1,481,900,000 | 1,386,700,000 | ||
Revenue expected to be recognized from remaining performance obligations | 1,679.8 | 1,560.3 | ||
Revenue expected to be recognized from remaining performance obligations, 2019 | 1,190.6 | |||
Provision for estimated sales returns, rebates, stock rotations, and other customer rights | $ 6,900,000 | 4,600,000 | ||
Percentage of employee contributions contributed by employer towards employee benefit plan | 50.00% | |||
Maximum percentage of employee's eligible compensation | 6.00% | |||
Minimum percentage of tax benefit realized upon settlement | 50.00% | |||
Advertising expenses | $ 3,700,000 | $ 5,200,000 | $ 3,100,000 | |
Anti-dilutive shares excluded from computation of earnings per share amount | shares | 6,200,000 | 4,900,000 | 3,200,000 | |
Trade receivables, net | $ 540,800,000 | $ 495,800,000 | ||
Right of use assets | 29,700,000 | $ 27,700,000 | ||
Lease liabilities | $ 30,700,000 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | |||
Rent expenses | $ 13,100,000 | 11,100,000 | $ 8,200,000 | |
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 | 18,100,000 | 20,200,000 | ||
Amortisation of contracted capitalised costs | 15,300,000 | 13,100,000 | 11,200,000 | |
Accounting Standards Update 2016-02 | ||||
Significant Accounting Policies [Line Items] | ||||
Lease liabilities | $ 27,700,000 | |||
Security Subscriptions and Software Updates and Maintenance | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue | 1,011,900,000 | 980,200 | ||
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, notional amount | 396,200,000 | 342,300,000 | ||
Foreign Exchange Forward Contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, notional amount | 37,700,000 | 38,200,000 | ||
Foreign Exchange Forward Contracts | Financial Income | Not Designated as Hedging Instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, net gain (loss) | 24,800,000 | 16,700,000 | (33,300,000) | |
Foreign Exchange Forward Contracts | Operating Expenses | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, net gain (loss) | $ 5,900,000 | $ 1,300,000 | $ (4,600,000) | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 23.63% | 20.78% | 21.98% |
Risk-free interest rate | 0.32% | 1.98% | 2.67% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 4 years 1 month 24 days | 4 years 1 month 9 days | 5 years 1 month 17 days |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.58% | 18.59% | 22.88% |
Risk-free interest rate | 0.05% | 0.80% | 1.07% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (years) | 15 days | 15 days | 15 days |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Dome9 Security Ltd | |
Business Acquisition [Line Items] | |
Acquisition date | Jan. 10, 2019 |
Cash And Cash Equivalents, Sh_3
Cash And Cash Equivalents, Short-Term Bank Deposits And Marketable Securities - Schedule Of Cash And Cash Equivalents And Short Term Investments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Cash | $ 204.4 | $ 182 |
Money market funds | 14.5 | 28.2 |
Short term deposits | 36.8 | 69 |
Total Cash and cash equivalents | 255.7 | 279.2 |
Short-term bank deposits | 214.5 | 0.6 |
Marketable securities: | ||
Total Marketable securities | 3,529.4 | 3,668.9 |
Total Cash and cash equivalents, short-term bank deposits and marketable securities | 3,999.6 | 3,948.7 |
Government And Corporate Debentures Fixed Interest Rate [Member] | ||
Marketable securities: | ||
Total Marketable securities | 2,626.9 | 3,008.9 |
Government Sponsored Enterprises Debentures [Member] | ||
Marketable securities: | ||
Total Marketable securities | 714.7 | 475.6 |
Government And Corporate Debentures Floating Interest Rate [Member] | ||
Marketable securities: | ||
Total Marketable securities | $ 187.8 | $ 184.4 |
Cash And Cash Equivalents, Sh_4
Cash And Cash Equivalents, Short-Term Bank Deposits And Marketable Securities- Contractual Obligation Fiscal Year Maturity (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||
2021 | $ 1,217.5 | $ 1,300.1 |
2022 | 1,053.4 | 1,041.9 |
2023 | 740.8 | 770.3 |
2024 | 351 | 372.1 |
2025 | 166.7 | 184.5 |
Total | $ 3,529.4 | $ 3,668.9 |
Cash And Cash Equivalents, Sh_5
Cash And Cash Equivalents, Short-Term Bank Deposits And Marketable Securities- Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized gains on the marketable securities | $ 51.4 | $ 29 |
Prepaid Expenses and Other Current Assets [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest receivable | $ 19.5 | $ 24.4 |
Financial Assets Measured at Fa
Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term bank deposits | $ 214.5 | $ 0.6 |
Foreign currency derivative contracts | 2.5 | 0.7 |
Total financial assets | 3,797.7 | 3,767.4 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 28.2 |
Government And Corporate Debentures Fixed Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,626.9 | 3,008.9 |
Government And Corporate Debentures Floating Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 187.8 | 184.4 |
Short term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 36.8 | 69 |
Government Sponsored Enterprises Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 714.7 | 475.6 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term bank deposits | 214.5 | 0.6 |
Total financial assets | 265.8 | 97.8 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 14.5 | 28.2 |
Fair Value, Inputs, Level 1 | Short term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 36.8 | 69 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 2.5 | 0.7 |
Total financial assets | 3,531.9 | 3,669.6 |
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 | 2,626.9 | 3,008.9 |
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 | 187.8 | 184.4 |
Fair Value, Inputs, Level 2 | Government Sponsored Enterprises Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 714.7 | $ 475.6 |
Property and Equipment Net (Det
Property and Equipment Net (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $ 26.4 | $ 20.7 |
Property and equipment, gross | 175 | 165.2 |
Accumulated depreciation | 86.9 | 77.5 |
Property and equipment, net | 88.1 | 87.7 |
Computers and peripheral equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 61.3 | 58.1 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8.4 | 7.6 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 78.9 | $ 78.8 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance as of January 1 | $ 981.9 | $ 950.5 |
Acquisitions | 20.3 | 31.4 |
Balance as of December 31 | $ 1,002.2 | $ 981.9 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 80.9 | $ 79 |
Accumulated amortization | 42.4 | 36.2 |
Other intangible assets, net | $ 38.5 | $ 42.8 |
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 | $ 55.4 | $ 53.5 |
Accumulated amortization | 20 | 15.4 |
Other intangible assets, net | 35.4 | 38.1 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 25.5 | 25.5 |
Accumulated amortization | 22.4 | 20.8 |
Other intangible assets, net | $ 3.1 | $ 4.7 |
Trademarks and trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 15 months | |
Trademarks and trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible assets | 20 months |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Core Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets weighted-average remaining useful lives | 3 years 4 months 24 days |
Trademarks and Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets weighted-average remaining useful lives | 2 years 2 months 12 days |
Estimated Future Amortization E
Estimated Future Amortization Expense of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2021 | $ 8.5 | |
2022 | 7.4 | |
2023 | 5.7 | |
2024 | 5.4 | |
2025 | 5.3 | |
Thereafter | 6.2 | |
Other intangible assets, net | $ 38.5 | $ 42.8 |
Deferred Revenues (Detail)
Deferred Revenues (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 1,481.9 | $ 1,386.7 |
Security subscriptions | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 678.5 | 613.1 |
Software updates and maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 775.4 | 757.4 |
Other | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 28 | $ 16.2 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued products and licenses costs | $ 96.4 | $ 88.6 |
Marketing expenses payable | 7.1 | 6.3 |
Income tax payable | 11.9 | |
Legal accrual | 32.6 | 40.2 |
Other accrued expenses | 48.8 | 42.9 |
Accrued expenses and other liabilities total | $ 196.8 | $ 178 |
Taxes On Income - Additional In
Taxes On Income - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Corporate tax rate | 23.00% | ||
Undistributed earnings of foreign subsidiaries | $ 421,200,000 | ||
Unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 76,200,000 | ||
Unrecognized tax benefit liability adjusted within 12 months | 71,400,000 | ||
Uncertain tax positions interest expense | (600,000) | $ 4,200,000 | $ 5,500,000 |
Uncertain tax positions accrued interest | 34,300,000 | 34,900,000 | |
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 Federal | |||
Operating Loss Carryforwards [Line Items] | |||
U.S. loss carry forward | $ 331,300,000 | ||
Operating loss carry forward expiration years | 2021 | ||
U S State | |||
Operating Loss Carryforwards [Line Items] | |||
U.S. loss carry forward | $ 80,300,000 | ||
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 | 2021 | ||
Research And Development Tax Credit | |||
Operating Loss Carryforwards [Line Items] | |||
U.S. loss carry forward | $ 23,400,000 | ||
Research And Development Tax Credit | Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carry forward expiration years | 2040 | ||
Research And Development Tax Credit | Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carry forward expiration years | 2021 | ||
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 Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Carry forward tax losses | $ 81.5 | $ 76.2 |
Employee stock based compensation | 27.6 | 25.9 |
Deferred revenues | 10.5 | 26.3 |
Other | 39.1 | 41.2 |
Deferred tax assets before valuation allowance | 158.7 | 169.6 |
Valuation allowance - mainly in respect to carryforward losses | (59.2) | (57.7) |
Deferred tax asset | 99.5 | 111.9 |
Intangible assets | (21) | (16.9) |
Undistributed earnings of subsidiary | (9.9) | (9.9) |
Other | (14.2) | (10.2) |
Deferred tax liability | (45.1) | (37) |
Deferred tax asset, net | $ 54.4 | $ 74.9 |
Income Before Taxes (Detail)
Income Before Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 896.8 | $ 881.1 | $ 902.3 |
Foreign | 74 | 81.3 | 76.6 |
Income before taxes as reported in the statements of income | $ 970.8 | $ 962.4 | $ 978.9 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Expense Benefit [Line Items] | |||
Taxes on income | $ 124.2 | $ 136.7 | $ 157.6 |
Domestic Tax Authority | |||
Income Tax Expense Benefit [Line Items] | |||
Current | 112 | 111.9 | 120.9 |
Deferred | 0.8 | 2 | 11.1 |
Domestic | 112.8 | 113.9 | 132 |
U.S. | |||
Income Tax Expense Benefit [Line Items] | |||
Foreign taxes, Current | 1.7 | 15.3 | 19.9 |
Foreign taxes, Deferred | 9.7 | 7.5 | 5.7 |
Foreign | $ 11.4 | $ 22.8 | $ 25.6 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Income Tax Disclosure [Abstract] | ||||
Beginning balance | $ 412.9 | [1] | $ 375.1 | |
Increases related to tax positions taken during prior years | 49.4 | 43.2 | ||
Decreases related to statute of limitations | (72.8) | (62.7) | ||
Increases related to tax positions taken during the current year | 53.3 | 57.3 | ||
Ending balance | [1] | $ 442.8 | $ 412.9 | |
[1] | As of December 31, 2020 and 2019 unrecognized tax benefit in the amounts of $20.0 and $19.6 was presented net from deferred tax asset. |
Reconciliation of Unrecognize_2
Reconciliation of Unrecognized Tax Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit | $ 20 | $ 19.6 |
Effective Income Tax Reconcilia
Effective Income Tax Reconciliation (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Tax Disclosure [Abstract] | ||||
Income before taxes as reported in the statements of income | $ 970.8 | $ 962.4 | $ 978.9 | |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% | |
Effect of "Preferred Enterprise" status | [1] | (11.00%) | (11.00%) | (9.00%) |
Others, net | 1.00% | 2.00% | 2.00% | |
Effective tax rate | 13.00% | 14.00% | 16.00% | |
[1] | Basic earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status $ 0.73 $ 0.66 $ 0.57 Diluted earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status $ 0.72 $ 0.65 $ 0.56 |
Effective Income Tax Reconcil_2
Effective Income Tax Reconciliation (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Basic earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status | $ 0.73 | $ 0.66 | $ 0.57 |
Diluted earnings per share amounts of the benefit resulting from the "Technological preferred or Preferred Enterprise" status | $ 0.72 | $ 0.65 | $ 0.56 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 03, 2020 | Jul. 25, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate ordinary shares repurchase | $ 10,485.5 | |||||
Shares repurchase, shares | 11,400,000 | 11,200,000 | 10,300,000 | |||
Shares repurchase, value | $ 1,297,700,000 | $ 1,278,000,000 | $ 1,103,900,000 | |||
Weighted average fair value granted under options | $ 22 | $ 22.8 | $ 30.1 | |||
Total intrinsic value of options exercised | $ 81,700,000 | $ 25,400,000 | $ 297,500,000 | |||
Weighted average fair value of stock units granted | $ 105.3 | $ 113.3 | $ 101.2 | |||
Total fair value of restricted stock units vested | $ 49,600 | $ 47,000 | $ 32,300 | |||
Unrecognized compensation expense | $ 207,700,000 | |||||
Unrecognized compensation expense expected period of recognition (in years) | 1 year 9 months 29 days | |||||
Options to purchase ordinary shares reserved for issuance | 14,800 | |||||
Share based compensation aggregate amount including options and units aggregate value outstanding | $ 148,300,000 | |||||
Share based compensation arrangement by share based payment award options outstanding intrinsic value | $ 244,300,000 | $ 122,400,000 | ||||
Options In The Money | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award options nonvested number of shares | 9,400,000 | 4,900,000 | ||||
Options Out Of Money | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award options nonvested number of shares | 5,800,000 | |||||
Share based compensation arrangement by share based payment award options outstanding intrinsic value | $ 0 | |||||
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 | $ 2,000,000 | ||||
Authorized amount under share repurchase programs | $ 325,000 | $ 325,000 | ||||
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 | 1,600,000 | |||||
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 | 400,000 | 300,000 | 300,000 | |||
Average price per share purchased by employees | $ 95.4 | $ 95.2 | $ 87.6 | |||
Compensation expense recognized | $ 10,200 | $ 8,000 | $ 6,700 | |||
US ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options to purchase ordinary shares reserved for issuance | 500,000 | |||||
Number of shares available under ESPP | 800,000 | |||||
Rest of the World ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options to purchase ordinary shares reserved for issuance | 2,000,000 | |||||
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] | ||||||
Share based compensation arrangement by share based payment award equity instruments other than options non vested number | 1,700 | 1,400 | ||||
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] | ||||||
Share based compensation arrangement by share based payment award equity instruments other than options non vested number | [1] | |||||
Performance Stock Units PSU | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award equity instruments other than options non vested number | 100 | |||||
[1] | Represents an amount lower than 0.1 |
Number of Reserved and Authoriz
Number of Reserved and Authorized Shares Under the Equity Incentive Plans (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options outstanding | 9,400 | 10,700 | |
Ordinary shares available for issuance under the Equity Incentive Plans | 3.7 | ||
Total Reserved and Authorized Shares as of December 31, 2019 | 14,800 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock unit outstanding | 1,700 | 1,400 | |
Performance Stock Units PSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock unit outstanding | [1] | ||
[1] | Represents an amount lower than 0.1 |
Stock Option Activity and Relat
Stock Option Activity and Related Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options, Outstanding at beginning of year | 10,700 | |
Options, Granted | 1,100 | |
Options, Exercised | (2,300) | |
Options, Forfeited | (100) | |
Outstanding at December 31, 2020 | 9,400 | |
Options, Exercisable at December 31, 2020 | 5,500 | |
Weighted average exercise price, Outstanding at beginning of year | $ 101.57 | |
Weighted average exercise price, Granted | 111.81 | |
Weighted average exercise price, Exercised | 83.80 | |
Weighted average exercise price, Forfeited | 110.30 | |
Weighted average exercise price, Outstanding at December 31, 2020 | 106.99 | |
Weighted average exercise price, Exercisable at December 31, 2020 | $ 102.90 | |
Aggregate intrinsic value, Outstanding | $ 244.3 | $ 122.4 |
Aggregate intrinsic value, Exercisable as of December 31, 2020 | $ 164.1 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of year | 1,400 |
Granted | 900 |
Vested | (500) |
Forfeited | (100) |
Unvested the end of the year | 1,700 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation Expense Related to Stock Options, RSUs and PSUs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 112.5 | $ 106.7 | $ 89.3 |
Cost of Revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 4.5 | 4.4 | 3.6 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 23.5 | 18.9 | 17.6 |
Selling and Marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 36.8 | 28.8 | 20.8 |
General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 47.7 | $ 54.6 | $ 47.3 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net income | $ 846.6 | $ 825.7 | $ 821.3 |
Weighted average ordinary shares outstanding | 140.5 | 150.6 | 156.6 |
Employee stock options, RSUs and PSUs | 1.5 | 1.5 | 2.8 |
Diluted weighted average ordinary shares outstanding | 142 | 152.1 | 159.4 |
Basic earnings per ordinary share | $ 6.03 | $ 5.48 | $ 5.24 |
Diluted earnings per ordinary share | $ 5.96 | $ 5.43 | $ 5.15 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Schedule Of Geographical Information [Line Items] | ||||
Total revenues | $ 2,064.9 | $ 1,994.8 | $ 1,916.5 | |
Americas | ||||
Schedule Of Geographical Information [Line Items] | ||||
Total revenues | 929.8 | 912.7 | 892.4 | |
Europe Middle East and Africa | ||||
Schedule Of Geographical Information [Line Items] | ||||
Total revenues | 891.4 | 849.9 | 809 | |
Asia Pacific | ||||
Schedule Of Geographical Information [Line Items] | ||||
Total revenues | $ 243.7 | $ 232.2 | $ 215.1 | |
[1] | Starting 2019, Middle East and Africa are part of the “Europe Middle East and Africa” region, while before it was part of “Asia Pacific, Middle East and Africa” region. 2018 figures were reclassified to present the updated revenue distribution by geography. |
Property and Equipment, Net by
Property and Equipment, Net by Geographic Area (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | $ 88.1 | $ 87.7 |
Israel | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | 76.8 | 77.4 |
U.S. | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | 5.4 | 5.8 |
Rest of World | ||
Schedule Of Geographical Information [Line Items] | ||
Property and equipment, net | $ 5.9 | $ 4.5 |
Geographic Information and Se_3
Geographic Information and Selected Statements of Income Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Product | |
Segment Reporting [Abstract] | |
Number of main product lines | 3 |
Revenues by Product Lines (Deta
Revenues by Product Lines (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 2,064.9 | $ 1,994.8 | $ 1,916.5 | |
Network Security Gateways | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 472.4 | 455.9 | 468.5 | |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | [1] | 41.2 | 54.9 | 57.1 |
Products and licenses | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 513.6 | 510.8 | 525.6 | |
Security subscriptions | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 671.1 | 610.3 | 542.3 | |
Software updates and maintenance | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 880.2 | $ 873.7 | $ 848.6 | |
[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, 2020 | |
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 Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortization of marketable securities premium and accretion of discount, net | $ 9.4 | $ 2 | $ 13.6 |
Realized loss (gain) on sale of marketable securities, net | (4.5) | (0.7) | 1.8 |
Financial income, net | 66.6 | 80.6 | 65.1 |
Financial Income | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Interest income | 78.2 | 93.3 | 88.5 |
Financial Expense | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortization of marketable securities premium and accretion of discount, net | 9.4 | 2 | 13.6 |
Realized loss (gain) on sale of marketable securities, net | (4.5) | (0.7) | 1.8 |
Foreign currency re-measurement loss | 4.5 | 8.9 | 5.7 |
Others | 2.2 | 2.5 | 2.3 |
Total financial expense | $ 11.6 | $ 12.7 | $ 23.4 |