o
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
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OR
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(Exact name of Registrant as specified in its charter)
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(Translation of Registrant’s name into English)
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(Jurisdiction of incorporation or organization)
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(Address of principal executive offices)
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(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
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Title of Each Class
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Name of Each Exchange
On Which Registered
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American Depositary Shares, each representing
one Ordinary Share, par value one
New Israeli Shekel per share
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NASDAQ Global Select Market
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(Title of Class)
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(Title of Class)
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PART I
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Page
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1
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26
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52
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53
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76
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100
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102
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104
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106
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126
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129
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PART II
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132
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132
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132
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Item 16.
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[Reserved]
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133
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133
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133
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134
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135
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136
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136
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136
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PART III
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137
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137
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138
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F-1
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Year Ended December 31,
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2011
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2012
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2013
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2014
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2015
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(U.S. dollars in thousands, except per share data)
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OPERATING DATA:
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Revenues
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Products
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$ | 258,165 | $ | 276,319 | $ | 280,140 | $ | 289,560 | $ | 317,900 | ||||||||||
Services
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412,789 | 482,552 | 541,375 | 582,435 | 608,967 | |||||||||||||||
Total revenues
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670,954 | 758,871 | 821,515 | 871,995 | 926,867 | |||||||||||||||
Cost of revenues
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Products
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68,894 | 78,878 | 69,335 | 63,919 | 66,363 | |||||||||||||||
Services
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180,771 | 215,519 | 230,279 | 239,592 | 237,219 | |||||||||||||||
Total cost of revenues
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249,665 | 294,397 | 299,614 | 303,511 | 303,582 | |||||||||||||||
Gross profit
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421,289 | 464,474 | 521,901 | 568,484 | 623,285 | |||||||||||||||
Operating expenses:
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Research and development, net
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87,270 | 103,818 | 115,431 | 123,141 | 128,485 | |||||||||||||||
Selling and marketing
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160,669 | 194,346 | 214,579 | 231,097 | 225,817 | |||||||||||||||
General and administrative
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94,414 | 94,654 | 86,467 | 83,360 | 90,349 | |||||||||||||||
Amortization of acquired intangible assets
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22,528 | 31,455 | 29,438 | 19,157 | 12,528 | |||||||||||||||
Restructuring expenses
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- | 1,870 | 527 | 5,435 | - | |||||||||||||||
Total operating expenses
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364,881 | 426,143 | 446,442 | 462,190 | 457,179 | |||||||||||||||
Operating income
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56,408 | 38,331 | 75,459 | 106,294 | 166,106 | |||||||||||||||
Financial income and other net
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10,625 | 8,268 | 3,927 | 3,765 | 5,304 | |||||||||||||||
Income before taxes on income
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67,033 | 46,599 | 79,386 | 110,059 | 171,410 | |||||||||||||||
Taxes on income (tax benefits)
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11,260 | (14,799 | ) | 26,915 | 9,909 | 30,832 | ||||||||||||||
Net income from continuing operations
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55,773 | 61,398 | 52,471 | 100,150 | 140,578 | |||||||||||||||
Discontinued operations:
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Gain on disposal and (loss) income from operations
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2,616 | 7,301 | 4,294 | 4,965 | 152,459 | |||||||||||||||
Taxes on income
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1,126 | 805 | 1,490 | 2,040 | 34,206 | |||||||||||||||
Net income on discontinued operations
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1,490 | 6,496 | 2,804 | 2,925 | 118,253 | |||||||||||||||
Net income
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57,263 | 67,894 | 55,275 | 103,075 | $ | 258,831 | ||||||||||||||
Basic earnings per share from continuing operations
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$ | 0.89 | $ | 1.01 | $ | 0.87 | $ | 1.69 | $ | 2.36 | ||||||||||
Basic earnings per share from discontinued operations
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$ | 0.02 | $ | 0.10 | $ | 0.05 | $ | 0.05 | $ | 1.99 | ||||||||||
Basic earnings per share
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$ | 0.91 | $ | 1.11 | $ | 0.92 | $ | 1.74 | $ | 4.35 | ||||||||||
Weighted average number of shares used in computing basic earnings per share (in thousands)
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62,924 | 60,905 | 60,388 | 59,362 | 59,552 | |||||||||||||||
Diluted earnings per share from continuing operations
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$ | 0.87 | $ | 0.99 | $ | 0.85 | $ | 1.64 | $ | 2.29 | ||||||||||
Diluted earnings per share from discontinued operations
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$ | 0.02 | $ | 0.10 | $ | 0.04 | $ | 0.05 | $ | 1.93 | ||||||||||
Diluted earnings per share
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$ | 0.89 | $ | 1.09 | $ | 0.89 | $ | 1.69 | $ | 4.22 | ||||||||||
Weighted average number of shares used in computing diluted earnings per share (in thousands)
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64,241 | 62,261 | 61,830 | 60,895 | 61,281 |
At December 31,
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2011
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2012
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2013
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2014
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2015
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BALANCE SHEET DATA*:
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Working capital
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$ | 163,398 | $ | 122,108 | $ | 61,023 | $ | 107,090 | $ | 256,089 | ||||||||||
Total assets
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1,575,344 | 1,649,676 | 1,646,030 | 1,632,952 | 1,849,613 | |||||||||||||||
Shareholders’ equity
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1,158,644 | 1,191,088 | 1,204,796 | 1,213,456 | 1,415,149 |
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•
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governmental controls and regulations, including import or export license requirements, trade protection measures and changes in tariffs;
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changes in applicable international and local laws, regulations and practices, including those related to trade compliance, anticorruption, data privacy and protection, tax, labor, employee benefits, customs, currency restrictions and other requirements;
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changes in foreign currency exchange rates;
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longer payment cycles in certain countries in our geographic areas of operations; and
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general difficulties in managing our global operations.
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·
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subject to limited exceptions, the judgment is final and non-appealable;
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the judgment was given by a court competent under the laws of the state in which the court is located and is otherwise enforceable in such state;
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the judgment was rendered by a court competent under the rules of private international law applicable in Israel;
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the laws of the state in which the judgment was given provides for the enforcement of judgments of Israeli courts;
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adequate service of process has been effected and the defendant has had a reasonable opportunity to present his arguments and evidence;
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the judgment and its enforcement are not contrary to the law, public policy, security or sovereignty of the State of Israel;
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the judgment was not obtained by fraud and does not conflict with any other valid judgment in the same matter between the same parties; and
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an action between the same parties in the same matter was not pending in any Israeli court at the time the lawsuit was instituted in the U.S. court.
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Quarterly variations in our operating results;
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Changes in expectations as to our future financial performance, including financial estimates by securities
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Perceptions of our company held by analysts and investors;
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Additions or departures of key personnel;
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Announcements related to dividends;
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Development of or disputes concerning our intellectual property rights;
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Announcements of technological innovations;
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Customer orders or new products by us or our competitors;
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Acquisitions or investments by us or by our competitors and partners;
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Currency exchange rate fluctuations;
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Earnings releases by us, our partners or our competitors;
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General financial, economic and market conditions;
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Political changes and unrest in regions, natural catastrophes;
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Market conditions in the industry and the general state of the securities markets, with particular emphasis on the technology and Israeli sectors of the securities markets; and
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General stock market volatility.
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Consumers demand better experiences across channels. Consumer behavior is significantly changing in terms of expectations and the way they interact with service providers. Consumers demand immediate, consistent and personalized experiences across all communication channels, including mobile apps, web, chat and over the phone. They easily and often traverse these channels depending on their task, location, time-of-day or even progress within a certain process. They view all of these channels as one, and organizations are expected to quickly adapt to the large verity of channels as well to view them in the same way their consumers do, offering a consistent experience across all channels.
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Proliferation of analytics as a main driver for successful customer engagement. Organizations are increasingly implementing a customer-centric strategy to get better visibility to their customers’ multi-channel journey with them. Organizations are now moving from simple Business Intelligence tools to focused decisioning and real-time action solutions – being proactive instead of reactive and predictive/prescriptive instead of descriptive. Front, as well as back, office functions seek to employ analytics to better optimize their operations. Organizations today are exploring cognitive engagement solutions, like interactive computing, predictive analytics and machine learning.
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Regulatory compliance is becoming an increasing consideration for customer service organizations. In many industries, including financial services, healthcare and utilities regulators are focusing attention on service and sales practices as well as handling customer complaints. Regulatory bodies such as the CFPB in the U.S. are directly imposing standards of care. Organizations are responding by deploying analytics software to monitor compliance adherence and alert to regulation violations in order to proactively avoid potential fines and penalties.
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Organizations look at Big Data technologies to analyze a wealth of consumer information, derive new business insight and act in real time. Structured and unstructured data, from millions of multi-channel interactions, open up an opportunity to gain deep insight regarding customer and employee intentions and behavioral patterns. Organizations keep looking for ways to elevate their usage of Big Data and advance from glimpses of interactions and transactions to a meaningful understanding of behaviors and to identify a customer’s underlying concerns. Furthermore, they strive to ensure compliance in real time, which is then translated into action and providing the best solution and accurate response.
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Preventing Financial Crime and Ensuring Compliance Stringent and evolving regulatory environment. Financial services regulators are calling for a fundamental change in the underlying culture of the entities that they regulate in order to send a strong message from the executive suite on down that protecting an institution, its customers, and its assets is of primary importance. Failings in corporate attitudes towards compliance are likely to continue to be a topic of great concern to financial services organizations. The need to ensure compliance with requirements for advanced technological solutions can be seen across customer interactions and financial services markets. Financial services organizations are increasingly being asked to document and prove to their regulators that the controls that are in place are working and effective. This is evidenced by substantial fines that have recently been levied against such institutions. Furthermore, the regulatory requirements are constantly evolving, requiring financial institutions to respond with solutions that are up to date with the latest modifications.
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An Unpredictable Threat Landscape Environment. The growing number of data breaches and cyber security incidents puts increasing amounts of personally identifiable information and sensitive data at risk of exposure. This information can be used to open accounts that can be used for laundering money, terrorist financing, account fraud, market manipulation, social engineering, and more. Such potential risks threaten an organization’s reputation, as well as create large financial exposures due to both losses as well as fines. In addition, the large volumes of data having to do with both internal and external threats place an enormous operational burden on organizations dealing with threats. Having the ability to aggregate, analyze, compare, and decision those incidents and cases increasingly points to the need for a robust and comprehensive way in which cases are handled by large financial services organizations.
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An Integrated Risk Management Platform. The growing complexity of risks and increasing magnitude of exposure, as well as the sophistication of financial criminals creates a growing need for single view of all risk, which allows organizations to aggregate the different detection signals and analyze them in light of the magnitude of exposure as well as the risk level. Financial institutions are seeking a single dashboard that can aggregate all such information from across the organization and present it to both operational people as well as to executives.
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Big Data technologies to capture and manage structured and unstructured data - Organizations generate and manage an ever-increasing amount of structured and unstructured data through a myriad of daily interactions and transactions. Consequently they are faced with a growing, unmet need to more accurately analyze and extract meaningful information from this data, in real time across multiple channels and sources and for a wide variety of business needs. As a result, organizations look for solutions to capture and manage structured and unstructured data in an integrated manner, derive meaningful insights and act proactively and preemptively.
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Real-time analytics capabilities – Deriving real-time insights over growing amounts of data is becoming essential for multiple business cases. Real-time analytics capabilities are adopted to operationalize Big Data and realize business value. These capabilities include:
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Customer interaction analytics for mining insights from multiple channels (such as phone, email, chat, social media, etc.), transactional data (usage, action taken in the account, etc.), and personal information (demographics, segmentations, etc.).
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Transactional analytics for preventing internal and external fraud, and for mitigating other forms of financial risk.
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Cloud technologies and SaaS business models – Cloud delivery is becoming increasingly popular in providing flexible and cost-effective deployment models for enterprise systems. These include SaaS, Infrastructure as a Service, Platform as a Service, Contact Center as a Service, and other cloud-based solutions. There are several market needs driving this trend, such as the pressure to continually improve operational efficiency and innovate, a reduced total cost of ownership (“TCO”), and the ease of implementation.
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Automation and Machine Learning - Smart and self-learning machines allow for the automated enhancement of real-time guidance and analytics-based insights (including speech and text analytics), behavior analytics and technique focused on profiling, trending and pattern detection.
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Covering all customer touch points by providing solutions implemented in the contact center, as well as solutions that benefit back office operations, retail branches, and self-service channels
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Understanding the voice of the customer, across all touch points, and taking action to address the needs of Customer Experience Officers and stakeholders in the marketing department.
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Driving customer experience in each channel, and across channels.
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Analyzing individual customer journeys and operationalizing the insights extracted to create business value in real-time for customer experience and marketing stakeholders.
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Optimizing employee engagement and performance, coupled with a better understanding of customer needs and how to address them.
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Delivering integrated financial crime and compliance solutions that help financial services organizations to identify issues faster and earlier.
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Providing solutions to many branches of the global financial services industry while constantly attempting to engage new customers, both in tier 1 financial services organizations and in smaller financial services organizations.
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Continuing to cross-sell and up-sell into our existing customer base around the world. Many of our customers, for instance, buy our solutions as part of their Financial Intelligence Unit strategy.
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Continuing to focus on tier-1 clients, providing them with solutions to meet their needs via both cloud and on-premise models.
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Leverage cloud and SaaS to expand the reach of our high-end solutions to tier-2 customers, which provide us an opportunity to significantly enhance our addressable market.
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Increasingly selling holistic solutions, combining Financial Crime and Compliance offerings with Customer Interactions offerings.
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Offering our solutions to verticals outside of the traditional financial services, such as energy, insurance, healthcare, industry regulators, government agencies, and alternative payments providers.
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Solution
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Description
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Compliance Recording
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Proactively captures and retains all customer interactions across multiple touch points to help ensure compliance with government regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), Security Exchange Commission Rule 17a-4, the Health Insurance Portability and Accountability Act, the Sarbanes–Oxley Act, the Payment Card Industry Data Security Standard, the Financial Services Authority and Medicare Improvements for Patients and Providers Act, as well as with internal policies. Compliance Recording is also an invaluable tool to resolve disputes, perform investigations and verify sales, as well as provide redundancy and disaster recovery capabilities to meet business continuity requirements.
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Contact Center Fraud Prevention
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Identifies fraudsters by their voice patterns, uncovers social engineering tactics and assesses call risk, as well as guides agents to appropriately handle high-risk interactions, and effectively open and manage an investigation ticket.
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Trading Floor Compliance Solutions
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Enables organizations to capture, monitor and analyze interactions and transactions in real time, in order to proactively minimize risks, detect potential regulatory breaches, counter fraudulent activities, and improve investigative capabilities. These solutions deliver comprehensive, integrated capabilities to effectively manage the complex, ongoing, high-risk exchange of interactions and transactions between traders, firms and their counterparties.
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Essential Compliance
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Enables trading floors to record and store transactions and interactions in any media, as well as securely manage and access archived material on demand and in a flexible manner. Essential Compliance helps financial and energy trading firms ensure compliance with the strict recordkeeping requirements of today’s regulatory environment.
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Communication Surveillance
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Monitors trading activity across trading turrets, fixed and mobile phones, email, text and instant messaging, chat and social media. It automatically detects potential risks and enables compliance officers to see emerging trends, so that compliance breaches and fraud can be averted. It also enables firms to meet the requirements of the regulatory environment established with the introduction of the Dodd-Frank Act, and related rules and regulations.
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Complaint Management
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Enables organizations to use analytics to identify interactions at risk, and manage the process of handling the complaint.
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Compliance and Script Adherence
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Operationalizes historical data analytics to quantify and measure current agent adherence. Monitors agent interactions, searches for any phrase, at any time, and utilizes the phrases in issue resolution and training exercises. Incorporates real-time monitoring and alerting to guide towards required behaviors. Knows which calls are contained in the audio and helps ensure reading for an audit.
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Solution
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Description
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Contact Center Recording
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Provides comprehensive call recording technology that adapts easily to the unique operational requirements of any contact center. It supports virtually any telephony environment and hybrid networks. This enables a seamless transition during technology migrations as the contact center grows and evolves. It supports thousands of concurrent IP streams in a single platform: capturing, forwarding streams in real time, recording and archiving. It also captures non-voice interactions such as video, chat and email, and stores them in a single recording platform, ensuring regulatory adherence and standardized cross-channel workforce optimization.
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Performance Management
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Maps enterprise business objectives to group and individual goals, and tracks and reports performance. It also automates critical managerial activities, including employee coaching, recognition, and performance improvement, allowing front-line managers to become more effective and efficient in developing their teams. Performance Management also includes unique capabilities, such as gamification, to engage and motivate and align employees around common business goals.
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Workforce Management
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Forecasts an organization’s interactions load, schedules agent shifts across multiple sites with appropriate skills to manage and optimize the level of customer service resources in multi-skilled environments. It measures agent and team performance, and provides real-time change management to proactively respond to changing conditions.
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Quality Management
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Automates quality assurance processes and selection of calls for evaluation based on performance data. The solution facilitates root-cause evaluation, with easy drill down to interactions missing their Key Performance Indicator targets. Quality improvement is thus managed across voice, email, chat, and social media channels.
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Interaction Analytics
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Analyzes large quantities of customer interactions across multiple channels to identify hot topics and root causes quickly, and to produce actionable insights. These insights are then leveraged to improve processes, increase sales, optimize marketing campaigns and reduce operational costs.
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Back Office Workforce Optimization
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Automates manual processes, integrates data from employees’ desktops, improves forecast accuracy, enables managers to view and manage resource capacity, and empowers employees to improve their own performance. It also provides tools to ensure regulatory compliance and accuracy, elevating the level of service customers receive across the entire enterprise.
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Real-time Authentication
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Leverages voice biometrics for authenticating customers in real time. The technology helps organizations to seamlessly enroll customers, expedites agent service, and significantly reduces the risk of fraud for all customers.
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Call Volume Optimization
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Leverages Big Data infrastructure and advanced predictive analytics to help organizations resolve customer needs in one contact, to predict and preempt follow-up calls, and to enable customers to effectively use self-service tools.
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Real-time Service Optimization-
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Automatically monitors agent activity in real time, enabling organizations to identify process bottlenecks and implement best practices. With this information, the solution navigates agents through complex processes using on-screen guidance, and automates routine tasks to shorten handle time and eliminate manual processing errors.
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Interactive Voice Response (“IVR”) Optimization
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The IVR Optimization solution enables customers to reduce customer effort by increasing IVR containment rate, reducing IVR repeat calls, agent transfers, drop-offs and deflections and dramatically improving call center efficiency.
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Robotic Automation
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Robotic solution for the automation of routine back office and contact center processes. Installed on virtual servers, these robots handle end-to-end processes, essentially performing any routine task which the human user would otherwise do manually.
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Solution
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Description
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Voice of the Customer (“VoC”)
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Collects and analyzes comprehensive data from multiple interaction touch points and channels; analyzes interactions in real time and provides guidance on the next-best-action; proactively engages customers for feedback immediately following an interaction; and leverages social media analytics to monitor social networks and address customer issues. This enables companies to drive operations and deliver insights across departments by incorporating the customer’s perspective.
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Real-time Customer Feedback
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Uses a unique, automated engagement mechanism to create a conversation with customers through their feedback channel of choice. Immediately following a retail, call center, or online experience, the solution reaches out for customer feedback from any touch point, including text message, email, IVR, mobile app, and online forms. It uses Natural Language Processing to accurately categorize verbatim comments and quickly locate the key drivers of customer satisfaction.
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Customer Journey Optimization
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Helps organizations optimize their overall customer interactions process across multiple touch points. The solution automatically constructs a cross-channel map of the customer journey, providing insights into trends and focus areas. It automatically assigns contact reasons to every interaction and reveals customer behavior patterns, helping to predict the customer’s next action and to respond accordingly. The solution highlights opportunities for self-service channel containment and offers real-time guidance for an improved customer experience.
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Customer Satisfaction
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Understands the business practices and behaviors that drive customer satisfaction. Simplifies the customer experience, through methods such as quicker caller identification. Attracts new customers by offering an easier path to service than the competition. Statistically determines which business processes and agent behaviors have the greatest impact on customer behavior.
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Cost Management
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Identifies the root cause of issues that cause long talk times or repeat calls. Understands technical calls and ensures agents follow the correct troubleshooting steps before issuing a service call. Determines gaps in workflow to eliminate redundant processes. Monitors problems resulting in high volumes and identify areas for more effective call routing.
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Customer Churn
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Analyzes historic defection data to create models for predicting future churn. Understands causes and effects of customer churn and how to design procedures to reduce the defection rate. Prioritizes at-risk customers based on search results combined with customer data. Collects information to refine retention marketing offers that are better tailored to customer types and demographics.
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Solution
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Description
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Incentive Compensation Management
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Provides the end-to-end ability to create, manage and distribute all aspects of a commissions program. It automates the process of commission, bonus and incentive administration, in support of any type of variable pay system that rewards employees for achieving targets aligned with the business strategy.
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Real-time Web Engagement
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Uses customer intelligence, predictive models and machine learning to make insightful, real-time decisions during customer interactions over the Web. The solution helps organizations improve customer retention, increase online conversion rates, and deliver better service by taking the next-best-action.
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Sales Effectiveness
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Helps organizations optimize their campaigns. Locates and quantifies specific events by building the right metrics to align with corporate objectives such as offers made versus up-sell opportunities. Correlates data points such as customer spend and purchase history to build predictive models, prioritizing customers with a propensity to buy and create the next-best offer. Identifies high-performing agents and base best practices off their behavior. Establishes thresholds and works with agents, measuring performance against sales driven metrics.
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Solution
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Description
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NICE Inform
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Assists public safety agencies and organizations across various industries to consolidate and chronologically manage multimedia incident information efficiently and effectively. It captures and processes event information from a variety of media: audio, video, text, Computer-Aided Dispatch systems, Geographic Information Systems, and others.
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Solution
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Description
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NICE Audio Recording
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Addresses the needs of command-and-control centers and air traffic control operations. The wide range of recording platforms automatically record, analyze, store, quickly retrieve and instantly replay Telephony, radio and IP voice calls. TDM and VoIP recordings can be used to ensure compliance with regulations, provide audio evidence, and manage and improve departmental quality and productivity.
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NICE Inform
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Helps emergency centers manage multimedia incident information efficiently and effectively. It captures available data, providing the facts as they unfold and increasing the likelihood that all vital evidence is available for review.
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Solution
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Description
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Enterprise Risk Case Manager
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Enables firms to better manage and mitigate organizational risk by providing a single view of risk across the business. It serves as a central platform for managing alerts, cases, investigations, link analysis, regulatory reporting, financial losses, oversight and more, across multiple lines of business, channels, products, and regions, turning them into actionable insights.
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Solution
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Description
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Suspicious Activity Monitoring
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Leverages transaction analytics to offer end-to-end coverage for detection, scoring, alerting, workflow processing and reporting of suspicious activity to make sure nothing slips through the cracks. It supports the full investigation life cycle and, with NICE’s integrated case management platform, improves staff productivity, helping meet regulatory obligations in a cost-efficient manner.
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Watch List Filtering
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Provides enterprise-wide customer and transaction screening against multiple watch lists, for end-to-end sanctions list coverage. It identifies and manages sanctioned or high-risk individuals and entities, with real-time name recognition capabilities, providing customers the ability to conduct accurate name matching to prevent non-compliance occurrences.
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Customer Due Diligence
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Provides integrated risk-based rating and continuous monitoring of accounts throughout the entire customer life-cycle, from initial applicant onboarding to periodic re-screening of existing customers. It is an open, flexible platform that can adapt to unique requirements across business segments, regions, and jurisdictions.
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CTR Processing and Automation
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Provides seamless automated Currency Transaction Reporting (“CTR”) processing to ensure compliance with U.S. Bank Secrecy Act standards, and to optimize CTR processes for efficiency and cost-effectiveness. This allows for the reduction in manual intervention and errors. Built-in validation tools and flexible capabilities enhance the quality and timeliness of completed reports while letting organizations adapt to changing regulatory and business needs.
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FATCA Compliance
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Helps U.S. and non-U.S. companies establish a structured FATCA program – from identifying U.S. owners and customers, and managing their documentation, to generating reports to meet United States Internal Revenue Service requirements. The solution enables complete life cycle assessment for FATCA-status identification, management and reporting, ensuring compliance while minimizing operational and customer impact.
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Solution
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Description
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Card Fraud
|
Enables card issuers, acquirers and processors to detect fraudulent transactions, whether ATM, PIN, signature point-of-sale, or without a physical card. The Actimize Digital & Mobile Wallet Fraud solution protects customers from digital account takeover, and protects companies from fraud liability and negative brand reputation. Monitors and protects a full range of wallet activity, including card/account provisioning, card present and not present purchases, person-to-person transfers, bill payments, and account-service events.
The Actimize Pre-Paid Card Fraud solution identifies and prevents fraud in the pre-paid sector. From ATM to point-of-sale (POS) and Card-Not-Present (CNP), all transactions can be identified, interdicted on and alerted in real time. Market leading profile based behavioral analytics takes into account all available transaction, reference and location data to provide holistic coverage of card and account takeover.
|
Remote Banking
|
Provides end-to-end protection against account takeover from online, mobile, IVR, and contact center transactions. Unique industry-leading analytic models accurately detect anomalies and patterns in real time and Actimize open analytics offer the flexibility to develop in-house models and strategies. A central “risk hub” enables the sharing of internal and third-party data from multiple channels for fraud and cyber detection, operations, and investigations. By accurately and efficiently coordinating customer lifetime value, transaction amounts and service history, the solution optimizes fraud prevention by offering greater insight into cross-channel authentication and facilitates interdiction strategies.
|
Commercial Banking
|
Specifically designed to address the complexities facing commercial banks, applying targeted analytics to identify fraudulent payments among the high volume of legitimate transactions processed by commercial clients each day. The solution protects payments from origination through approval and processing, allowing organizations to interdict in real time to address suspicious activity and ensure an excellent customer experience.
|
Employee Fraud
|
Offers advanced analytic monitoring capabilities and flexible configuration options to detect fraudulent employee activity and violation of corporate policy across the enterprise, business lines, and channels. Comprehensive investigation tools are supported by multichannel data ingest, multi-country data and policy requirement configurations, secure and auditable user access levels, and automated configurable workflows, enabling banks to efficiently sift through employee audit reports and build cases to support fraudulent employee activity.
|
Deposit Account Fraud
|
Helps institutions minimize deposit fraud losses by providing comprehensive account activity monitoring. The solution analyzes risk across silos of data and lines of business, consolidates suspicious activity notifications into account and customer level alerts, and allows real-time decisioning to safely accelerate fund availability and enhance customer satisfaction.
|
Solution
|
Description
|
Institutional Trade Surveillance
|
As a real-time, cloud-based, institutional trade surveillance solution, it provides scenario management for identifying market manipulation and abuse, fair dealings with customers, and insider trading across asset classes (such as equities, fixed income, swaps and futures). It includes specific tools for desk supervision, control room surveillance, and trade reporting practices, to ensure comprehensive oversight and sales and trading compliance.
By leveraging communication surveillance capabilities from NICE’s Customer Interactions business, customers benefit from holistic and integrated surveillance solutions that include trade, voice, email, chat and more.
|
Retail Trade Surveillance
|
Addresses organization-wide compliance across a broad range of retail sales practices relating to Know Your Customer (“KYC”) and Suitability requirements. It enables local and regional branch management to effectively delegate supervision across products and provides automated desk supervision, with electronic access and sign-off on individual trades.
|
Employee Trade Surveillance
|
Detects Conflicts of Interest and Rogue Trading. It completely automates the submission, review and approval process for employees’ personal trades, including post-trade reconciliation. It analyzes transactions against rules mapped to the organization’s employee trading policies and procedures.
|
Enterprise Conflicts Management
|
Offers a unified approach to maintain controls and detect conflicts of interest before they occur on a global, enterprise-wide scale. Enables organizations to effectively manage employee requests for personal trades by evaluating details of the proposed trade in real time and automatically determining if the request should be approved, rejected, or escalated to a supervisor for approval. The solution includes detection models that compare executions with the employee’s trade request history to determine whether the trade was pre-cleared and approved and to reconcile the trade details with the terms and conditions of the approved trade request.
|
Sales Practices and Suitability
|
Provides coverage for a broad range of sales practices and issues, helping firms meet current and future global regulatory requirements and ensure investment recommendations are consistent with each client’s investment objectives and suitability profiles. It also includes a comprehensive toolset to automate sales practice compliance processes. By automating oversight and supervision, firms can ensure consistency and maintain a consolidated audit trail, lowering regulatory risk while improving productivity and efficiency.
|
|
·
|
Proactive Health Checks – Technical experts perform system-level audits to ensure ongoing compliance with operational specifications.
|
|
·
|
Network Operations Center – A 24/7 function that proactively monitors NICE-hosted and customer-premises environments with triage, resolution and escalation of system alarms.
|
Name of Subsidiary
|
Country of Incorporation or Residence
|
|
Nice Systems Australia PTY Ltd.
|
Australia
|
|
NICE Systems Technologies Brasil LTDA
|
Brazil
|
|
NICE Systems Canada Ltd.
|
Canada
|
|
Nice Systems China Ltd.
|
China
|
|
Nice Systems S.A.R.L.
|
France
|
|
NICE Systems GmbH
|
Germany
|
|
NICE APAC Ltd.
|
Hong Kong
|
|
NICE Systems Kft
|
Hungary
|
|
Nice Interactive Solutions India Private Ltd.
|
India
|
|
Nice Technologies Ltd.
|
Ireland
|
|
Actimize Ltd.
|
Israel
|
|
Nice Japan Ltd.
|
Japan
|
|
NICE Technologies Mexico S.R.L.
|
Mexico
|
|
NICE Systems B.V.
|
Netherlands
|
|
Nice Systems (Singapore) Pte. Ltd.
|
Singapore
|
|
Nice Switzerland AG
|
Switzerland
|
|
Actimize UK Limited
|
United Kingdom
|
|
NICE Systems Technologies UK Limited
|
United Kingdom
|
|
NICE Systems UK Ltd.
|
United Kingdom
|
|
Actimize Inc.
|
United States
|
|
Nice Systems Inc.
|
United States
|
|
Nice Systems Latin America, Inc.
|
United States
|
|
Nice Systems Technologies Inc.
|
United States
|
|
·
|
Our North American headquarters in Paramus, New Jersey occupies approximately 34,416 square feet and includes training and lab facilities. We also have an additional office in New York, which occupies an aggregate of approximately 36,674 square feet. Both locations are used as office space. In 2016 we plan to consolidate our North American locations into new leased offices in Hoboken, New Jersey.
|
|
·
|
Our EMEA headquarters in Southampton, U.K., occupies approximately 11,151 square feet. We also have an additional office in London, which occupies approximately 22,504 square feet. Both locations are used as office space and include a lab; and
|
|
·
|
Our APAC headquarters in Singapore occupies approximately 7,788 square feet and is used as office space.
|
|
·
|
Our office in Denver, Colorado occupies approximately 27,063 square feet and is used as office space and includes a training facility and lab;
|
|
·
|
Our office in Richardson, Texas occupies approximately 37,564 square feet and is used as office space;
|
|
·
|
Our office in Pune, India occupies 26,878 square feet and includes a training center; and
|
|
·
|
Our office in the Netherlands occupies approximately 10,452 square feet and is used as office space and includes a test lab, and a production area.
|
|
·
|
Revenue recognition;
|
|
·
|
Allowance for doubtful accounts;
|
|
·
|
Impairment of long-lived assets;
|
|
·
|
Taxes on income;
|
|
·
|
Contingencies;
|
|
·
|
Business combination;
|
|
·
|
Stock-based compensation; and
|
|
·
|
Valuation of investments in marketable securities.
|
|
·
|
An initial qualitative assessment of the likelihood of impairment may be performed. If this indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test.
|
|
·
|
Under the first step of the impairment test, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform the second step of the two-step impairment test to measure the amount of the impairment.
|
|
·
|
Under the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment.
|
|
·
|
Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
|
|
·
|
Level 2 – Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
|
|
·
|
Level 3 – Valuations based on unobservable inputs which are supported by little or no market activity and significant to the overall fair value measurement.
|
2013
|
2014
|
2015
|
||||||||||
Revenues
|
||||||||||||
Products
|
34.1 | % | 33.2 | % | 34.3 | % | ||||||
Services
|
65.9 | 66.8 | 65.7 | |||||||||
100.0 | 100.0 | 100.0 | ||||||||||
Cost of revenues
|
||||||||||||
Products*
|
24.8 | 22.1 | 20.9 | |||||||||
Services*
|
42.5 | 41.1 | 38.9 | |||||||||
36.5 | 34.8 | 32.8 | ||||||||||
Gross profit
|
63.5 | 65.2 | 67.2 | |||||||||
Operating expenses
|
||||||||||||
Research and development, net
|
14.1 | 14.1 | 13.9 | |||||||||
Selling and marketing
|
26.1 | 26.5 | 24.4 | |||||||||
General and administrative
|
10.5 | 9.6 | 9.8 | |||||||||
Amortization of acquired intangibles
|
3.6 | 2.2 | 1.3 | |||||||||
Restructuring expenses
|
0.1 | 0.6 | 0.0 | |||||||||
Total operating expenses
|
54.3 | 53.0 | 49.3 | |||||||||
Operating income
|
9.2 | 12.2 | 17.9 | |||||||||
Financial income, net
|
0.5 | 0.5 | 0.7 | |||||||||
Other income (expenses), net
|
0.0 | (0.1 | ) | (0.1 | ) | |||||||
Income before taxes
|
9.7 | 12.6 | 18.5 | |||||||||
Taxes on income (Tax benefit)
|
3.3 | 1.1 | 3.3 | |||||||||
Net income from continuing operations
|
6.4 | 11.5 | 15.2 |
Discontinued operations
|
0.5 | 0.6 | 16.4 | |||||||||
Taxes on income on discontinued operations
|
0.2 | 0.2 | 3.7 |
Net income on discontinued operations
|
0.3 | 0.4 | 12.7 |
Net income
|
6.7 | 11.9 | 27.9 |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Product revenues
|
$ | 289.6 | $ | 317.9 | $ | 28.3 | 9.8 | % | ||||||||
Service revenues
|
582.4 | 609.0 | 26.6 | 4.6 | ||||||||||||
Total revenues
|
$ | 872.0 | $ | 926.9 | $ | 54.9 | 6.3 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
United States, Canada and Central and South America (“Americas”)
|
$ | 591.1 | $ | 630.1 | $ | 39.0 | 6.6 | % | ||||||||
Europe, the Middle East and Africa (“EMEA”)
|
189.2 | 196.9 | 7.7 | 4.1 | ||||||||||||
Asia-Pacific (“APAC”)
|
91.7 | 99.9 | 8.2 | 8.9 | ||||||||||||
Total revenues
|
$ | 872.0 | $ | 926.9 | $ | 54.9 | 6.3 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Cost of product revenues
|
$ | 63.9 | $ | 66.4 | $ | 2.5 | 3.9 | % | ||||||||
Cost of service revenues
|
239.6 | 237.2 | (2.4 | ) | (1.0 | ) | ||||||||||
Total cost of revenues
|
$ | 303.5 | $ | 303.6 | $ | 0.1 | 0.0 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Gross profit on product revenues
|
$ | 225.7 | $ | 251.5 | $ | 25.8 | 11.4 | % | ||||||||
as a percentage of product revenues
|
77.9 | % | 79.1 | % | ||||||||||||
Gross profit on service revenues
|
342.8 | 371.8 | 29.0 | 8.4 | % | |||||||||||
as a percentage of service revenues
|
58.9 | % | 61.0 | % | ||||||||||||
Total gross profit
|
$ | 568.5 | $ | 623.3 | $ | 54.8 | 9.6 | % | ||||||||
as a percentage of total revenues
|
65.2 | % | 67.2 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Research and development, net
|
$ | 123.1 | $ | 128.5 | $ | 5.4 | 4.4 | % | ||||||||
Selling and marketing
|
231.1 | 225.8 | (5.3 | ) | (2.3 | ) | ||||||||||
General and administrative
|
83.4 | 90.4 | 7.0 | 8.4 | ||||||||||||
Amortization of acquired intangible assets
|
19.2 | 12.5 | (6.7 | ) | (34.9 | ) | ||||||||||
Restructuring expenses
|
5.4 | 0.0 | (5.4 | ) | (100 | ) |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2014
|
2015
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Financial income, net
|
$ | 3.8 | $ | 5.7 | $ | 1.9 | 50 | % | ||||||||
Other expenses, net
|
0.0 | 0.4 | 0.4 | 100 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Product revenues
|
$ | 280.1 | $ | 289.6 | $ | 9.5 | 3.4 | % | ||||||||
Service revenues
|
541.4 | 582.4 | 41.0 | 7.6 | ||||||||||||
Total revenues
|
$ | 821.5 | $ | 872.0 | $ | 50.5 | 6.1 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Americas
|
$ | 540.4 | $ | 591.1 | $ | 50.7 | 9.4 | % | ||||||||
EMEA
|
188.3 | 189.2 | 0.9 | 0.5 | ||||||||||||
APAC
|
92.8 | 91.7 | (1.1 | ) | (1.2 | ) | ||||||||||
Total revenues
|
$ | 821.5 | $ | 872.0 | $ | 50.5 | 6.1 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Cost of product revenues
|
$ | 69.3 | $ | 63.9 | $ | (5.4 | ) | (7.8 | )% | |||||||
Cost of service revenues
|
230.3 | 239.6 | 9.3 | 4.0 | ||||||||||||
Total cost of revenues
|
$ | 299.6 | $ | 303.5 | $ | 3.9 | 1.3 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Gross profit on product revenues
|
$ | 210.8 | $ | 225.7 | $ | 14.9 | 7.0 | % | ||||||||
as a percentage of product revenues
|
75.2 | % | 77.9 | % | ||||||||||||
Gross profit on service revenues
|
311.1 | 342.8 | 31.7 | 10.2 | % | |||||||||||
as a percentage of service revenues
|
57.5 | % | 58.9 | % | ||||||||||||
Total gross profit
|
$ | 521.9 | $ | 568.5 | $ | 46.6 | 8.9 | % | ||||||||
as a percentage of total revenues
|
63.5 | % | 65.2 | % |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Research and development, net
|
$ | 115.4 | $ | 123.1 | $ | 7.7 | 6.7 | % | ||||||||
Selling and marketing
|
214.6 | 231.1 | 16.5 | 7.7 | ||||||||||||
General and administrative
|
86.5 | 83.4 | (3.1 | ) | (3.6 | ) | ||||||||||
Amortization of acquired intangible assets
|
29.4 | 19.2 | (10.2 | ) | (34.7 | ) | ||||||||||
Restructuring expenses
|
0.5 | 5.4 | 4.9 | 980.0 |
Years Ended December 31,
(U.S. dollars in millions)
|
||||||||||||||||
2013
|
2014
|
Dollar Change
|
Percentage Change
|
|||||||||||||
Financial income, net
|
$ | 4.0 | $ | 3.8 | $ | (0.2 | ) | (5.0 | )% | |||||||
Other expenses, net
|
(0.1 | ) | (0.0 | ) | 0.1 | (100 | )% |
Payments Due by Period
|
||||||||||||||||||||
Contractual Obligations
|
Total
|
Less than 1 year
|
1- 3 years
|
3-5 years
|
More than 5 years
|
|||||||||||||||
Operating Leases
|
68,580 | 15,743 | 24,033 | 17,603 | 11,201 | |||||||||||||||
Unconditional Purchase Obligations
|
19,619 | 13,083 | 6,536 | - | - | |||||||||||||||
Severance Pay*
|
17,952 | |||||||||||||||||||
Total Contractual Cash Obligations
|
106,151 | 28,826 | 30,569 | 17,603 | 11,201 | |||||||||||||||
Uncertain Income Tax Positions **
|
18,236 |
*
|
Severance pay relates to accrued obligations to employees as required under applicable labor laws. These obligations are payable only upon termination, retirement or death of the respective employees.
|
**
|
Uncertain income tax positions under ASC 740 are due upon settlement and we are unable to reasonably estimate the ultimate amount or timing of settlement. See Note 12(h) of our Consolidated Financial Statements for further information regarding our liability under ASC 740.
|
Amount of Commitment Expiration Per Period
|
||||||||||||||||||||
Other Commercial Commitments
|
Total Amounts Committed
|
Less than 1 year
|
1- 3 years
|
3-5 years
|
More than 5 years
|
|||||||||||||||
Guarantees – Continuing operations
|
3,159,420 | 3,109,011 | - | 50,410 | - | |||||||||||||||
Guarantees – Discontinued operations*
|
24,298,737 | 4,868,198 | 18,266,633 | 1,163,906 | - | |||||||||||||||
Total Guarantees
|
27,458,157 | 7,977,209 | 18,266,633 | 1,214,316 | - |
Name
|
Age
|
Position
|
Audit Committee Member
|
Compensation Committee Member
|
Internal Audit Committee Member
|
Mergers and Acquisitions Member
|
Nominations Committee Member
|
Outside Director*
|
David Kostman
|
51
|
Chairman of the Board of Directors
|
X
|
X
|
X
|
|||
Rimon Ben-Shaoul
|
71
|
Director
|
X
|
X
|
||||
Dan Falk
|
71
|
Director
|
X
|
X
|
X
|
X
|
X
|
X
|
Yocheved Dvir
|
63
|
Director
|
X
|
X
|
X
|
X
|
||
Yehoshua Ehrlich
|
66
|
Director
|
X
|
|||||
Leo Apotheker
|
62
|
Director
|
|
X
|
X
|
|||
Joe Cowan
|
67
|
Director
|
X
|
X
|
||||
Zehava Simon
|
57
|
Director
|
X
|
X
|
X
|
X
|
Name
|
Age
|
Position
|
Barak Eilam
|
40
|
Chief Executive Officer
|
Miki Migdal
|
55
|
President, Enterprise Product Group
|
Joseph Friscia
|
61
|
President, NICE-Actimize
|
Sarit Sagiv
|
47
|
Chief Financial Officer
|
Yechiam Cohen
|
59
|
Corporate Vice President, General Counsel and Corporate Secretary
|
Eran Porat
|
53
|
Corporate Vice President, Finance
|
Eran Liron
|
48
|
Executive Vice President, Marketing and Corporate Development
|
Tom Dziersk
|
52
|
President, NICE Americas
|
John O’Hara
|
57
|
President, NICE EMEA
|
Raghav Sahgal
|
53
|
President, NICE APAC
|
Christopher Wooten
|
50
|
Executive Vice President, Vertical Markets
|
Sigal Gill-more
|
46
|
Executive Vice President, Human Resources
|
|
(1)
|
Salary Costs. Salary Costs include gross salary, benefits and perquisites, including those mandated by applicable law which may include, to the extent applicable to each Covered Executive, payments, contributions and/or allocations for pension, severance, vacation, travel and accommodation, car or car allowance, medical insurances and risk insurances (e.g., life, disability, accidents), phone, convalescence pay, relocation, payments for social security, and other benefits consistent with the Company's guidelines.
|
|
(2)
|
Bonus Costs. Bonus Costs represent bonuses granted to the Covered Executive with respect to the year ended December 31, 2015, paid in accordance with the Company's performance-based bonus plan or as detailed in footnotes below.
|
|
(3)
|
Equity Costs. Represents the expense recorded in our financial statements for the year ended December 31, 2015, with respect to equity granted in 2015 and in previous years (if applicable). For assumptions and key variables used in the calculation of such amounts see note 13b of our audited consolidated financial statements.
|
i.
|
Barak Eilam – CEO. Salary Costs - $597; Bonus Costs - $960; Equity Costs - $1,368 expense recorded in 2015 for equity granted in 2015 and $1,539 expense recorded in 2015 for equity granted in previous years.
|
ii.
|
Thomas Dziersk – President, NICE Americas. Salary Costs - $470; Bonus Costs - $525; Equity Costs - $493 expense recorded in 2015 for equity granted in 2015 and $512 expense recorded in 2015 for equity granted in previous years.
|
iii.
|
Joseph Friscia – President, NICE Actimize. Salary Costs - $405; Bonus Costs - $600; Equity Costs - $370 expense recorded in 2015 for equity granted in 2015 and $341 expense recorded in 2015 for equity granted in previous years.
|
iv.
|
Raghav Sahgal – President, NICE APAC. Salary Costs - $493; Bonus Costs - $555; Equity Costs - $326 expense recorded in 2015 for equity granted in 2015 and $458 expense recorded in 2015 for equity granted in previous years.
|
v.
|
Christopher Wooten – EVP, NICE Vertical Markets. Salary Costs - $354; Bonus Costs - $691; Equity Costs - $308 expense recorded in 2015 for equity granted in 2015 and $259 expense recorded in 2015 for equity granted in previous years.
|
·
|
an employment relationship;
|
·
|
a business or professional relationship maintained on a regular basis;
|
·
|
control; and
|
·
|
service as an office holder.
|
·
|
the majority of shares voted at the meeting shall include at least a majority of the shares of non-controlling shareholders present at the meeting and voting on the matter (without taking into account the votes of the abstaining shareholders); or
|
·
|
the total number of shares of non-controlling shareholders voted against the election of the outside directors does not exceed two percent of the aggregate voting rights in the company.
|
At December 31,
|
||||||||||||
Category of Activity
|
2013
|
2014
|
2015* | |||||||||
Operations
|
110 | 108 | 86 | |||||||||
Customer Support
|
1,393 | 1,343 | 1,374 | |||||||||
Sales & Marketing
|
840 | 811 | 682 | |||||||||
Research & Development
|
865 | 890 | 801 | |||||||||
General & Administrative
|
368 | 361 | 352 | |||||||||
Total
|
3,576 | 3,513 | 3,316 | |||||||||
Geographic Location
|
||||||||||||
Israel
|
1,285 | 1,256 | 946 | |||||||||
Americas
|
1,365 | 1,344 | 1,263 | |||||||||
Europe
|
631 | 607 | 564 | |||||||||
Asia Pacific
|
295 | 306 | 543 | |||||||||
Total
|
3,576 | 3,513 | 3,316 |
Name and Address
|
Number of Shares
|
Percent of Shares Beneficially Owned (1)
|
||||||
Janus Capital Management LLC
151 Detroit Street
Denver, Colorado 80206, USA
|
3,826,621 | (2) | 6.4 | % | ||||
Psagot Investment House Ltd.
14 Ahad Ha’am Street
Tel Aviv 65142, Israel
|
3,645,806 | (3) | 6.1 | % | ||||
IDB Development Corporation Ltd.
The Triangular Tower, 44th floor, 3 Azrieli Center, Tel Aviv 67023, Israel
|
3,481,910 | (4) | 5.9 | % | ||||
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, Massachusetts 02199
|
3,356,795 | (5) | 5.5 | % | ||||
Migdal Insurance & Financial Holdings Ltd.
4 Efal Street; P.O. Box 3063 Petach Tikva 49512, Israel
|
3,245,107 | (6) | 5.4 | % | ||||
Harel Insurance Investments & Financial Services Ltd.
Harel House
3 Abba Hillel Street
Ramat Gan 52118, Israel
|
3,198,207 | (7) | 5.4 | % |
Item 9.
|
The Offer and Listing.
|
ADSs
|
||||||||
High
|
Low
|
|||||||
Annual
|
||||||||
2011
|
38.49 | 27.17 | ||||||
2012
|
40.04 | 29.51 | ||||||
2013
|
42.12 | 33.63 | ||||||
2014
|
51.75 | 37.08 | ||||||
2015
|
68.38 | 47.95 | ||||||
Quarterly
|
||||||||
Quarterly 2014
|
||||||||
First Quarter
|
$ | 45.00 | $ | 37.79 | ||||
Second Quarter
|
46.07 | 37.08 | ||||||
Third Quarter
|
41.55 | 37.84 | ||||||
Fourth Quarter
|
51.75 | 38.60 | ||||||
Quarterly 2015
|
||||||||
First Quarter
|
$ | 61.92 | $ | 47.95 | ||||
Second Quarter
|
68.38 | 58.15 | ||||||
Third Quarter
|
67.56 | 53.06 | ||||||
Fourth Quarter
|
64.92 | 54.54 | ||||||
Quarterly 2016
|
||||||||
First Quarter (through March 22, 2016)
|
65.06 | 54.12 | ||||||
Monthly
|
||||||||
September 2015
|
$ | 61.32 | $ | 53.06 | ||||
October 2015
|
62.50 | 54.54 | ||||||
November 2015
|
64.92 | 60.00 | ||||||
December 2015
|
63.00 | 56.55 | ||||||
January 2016
|
60.58 | 55.10 | ||||||
February 2016
|
63.62 | 54.12 | ||||||
March 2016 (through March 22, 2016)
|
65.06 | 59.34 |
Ordinary Shares
|
||||||||||||||||
High
|
Low
|
|||||||||||||||
NIS
|
$
|
NIS
|
$
|
|||||||||||||
Annual
|
||||||||||||||||
2011
|
139.00 | 37.45 | 97.25 | 27.12 | ||||||||||||
2012
|
150.00 | 38.82 | 117.80 | 30.29 | ||||||||||||
2013
|
149.10 | 42.21 | 122.10 | 33.27 | ||||||||||||
2014
|
203.30 | 51.94 | 130.60 | 36.90 | ||||||||||||
2015
|
262.6 | 68.76 | 189.4 | 47.95 | ||||||||||||
Quarterly 2014
|
||||||||||||||||
First Quarter
|
155.00 | 44.45 | 133.70 | 36.90 | ||||||||||||
Second Quarter
|
158.70 | 45.71 | 130.60 | 37.73 | ||||||||||||
Third Quarter
|
152.30 | 41.74 | 132.70 | 37.70 | ||||||||||||
Fourth Quarter
|
203.30 | 51.94 | 145.20 | 38.85 | ||||||||||||
Quarterly 2015
|
||||||||||||||||
First Quarter
|
246.7 | 61.58 | 189.4 | 47.95 | ||||||||||||
Second Quarter
|
262.6 | 68.76 | 228.8 | 58.25 | ||||||||||||
Third Quarter
|
259.0 | 67.93 | 209.3 | 53.35 | ||||||||||||
Fourth Quarter
|
252.0 | 64.86 | 211.1 | 54.99 | ||||||||||||
Quarterly 2016
|
||||||||||||||||
First Quarter (through March 22, 2016)
|
250.7 | 65.00 | 207.2 | 53.29 | ||||||||||||
Monthly
|
||||||||||||||||
September 2015
|
240.8 | 61.66 | 209.3 | 53.35 | ||||||||||||
October 2015
|
241.9 | 62.30 | 211.1 | 54.99 | ||||||||||||
November 2015
|
252.0 | 64.86 | 231.2 | 59.42 | ||||||||||||
December 2015
|
244.3 | 62.85 | 217.6 | 56.27 | ||||||||||||
January 2016
|
239.0 | 60.34 | 216.9 | 55.09 | ||||||||||||
February 2016
|
249.5 | 63.08 | 207.2 | 53.29 | ||||||||||||
March 2016 (through March 22, 2016)
|
250.7 | 65.00 | 233.2 | 59.88 |
·
|
the securities issued amount to 20% or more of the company’s outstanding voting rights before the issuance;
|
·
|
some or all of the consideration is other than cash or listed securities or the transaction is not on market terms; and
|
·
|
the transaction will increase the relative holdings of a shareholder that holds five percent or more of the company’s outstanding share capital or voting rights or that will cause any person to become, as a result of the issuance, a holder of more than five percent of the company’s outstanding share capital or voting rights.
|
·
|
any amendment to the articles of association;
|
·
|
an increase of the company’s authorized share capital;
|
·
|
a merger; or
|
·
|
approval of interested party transactions which require shareholder approval.
|
·
|
a violation of his duty of care to us or to another person,
|
·
|
a breach of his duty of loyalty to us, provided that the office holder acted in good faith and had reasonable grounds to assume that his act would not prejudice our interests,
|
·
|
a financial obligation imposed upon him for the benefit of another person,
|
·
|
a payment which the office holder is obligated to make to an injured party as set forth in Section 52(54)(a)(1)(a) of the Israeli Securities Law, 5728-1968, as amended (the "Securities Law") and Litigation Expenses (as defined below) that the office holder incurred in connection with a proceeding under Chapters H'3, H'4 or I'1 of the Securities Law, and
|
·
|
any other event, occurrence or circumstance in respect of which we may lawfully insure an office holder.
|
·
|
a monetary liability imposed on or incurred by an office holder pursuant to a judgment in favor of another person, including a judgment imposed on such office holder in a settlement or in an arbitration decision that was approved by a court of law;
|
·
|
reasonable Litigation Expenses, expended by the office holder as a result of an investigation or proceeding instituted against him by a competent authority, provided that such investigation or proceeding concluded without the filing of an indictment against him and either (A) concluded without the imposition of any financial liability in lieu of criminal proceedings or (B) concluded with the imposition of a financial liability in lieu of criminal proceedings but relates to a criminal offense that does not require proof of criminal intent (mens rea) or in connection with a financial sanction;
|
·
|
“conclusion of a proceeding without filing an indictment” in a matter in which a criminal investigation has been instigated and “financial liability in lieu of a criminal proceeding,” have the meaning ascribed to them under the Israeli Companies Law. The term “Litigation Expenses” shall include, without limitation, attorneys’ fees and all other costs, expenses and obligations paid or incurred by an office holder in connection with investigating, defending, being a witness or participating in (including on appeal), or preparing to defend, be a witness or participate in any claim or proceeding relating to any matter for which indemnification may be provided;
|
·
|
reasonable Litigation Expenses, which the office holder incurred or with which the office holder was charged by a court of law, in a proceeding brought against the office holder, by the Company, on its behalf or by another person, or in a criminal prosecution in which the office holder was acquitted, or in a criminal prosecution in which the office holder was convicted of an offense that does not require proof of criminal intent (mens rea);
|
·
|
a payment which the office holder is obligated to make to an injured party as set forth in Section 52(54)(a)(1)(a) of the Securities Law, and Litigation Expenses that the office holder incurred in connection with a proceeding under Chapters H'3, H'4 or I'1 of the Securities Law; and
|
·
|
any other event, occurrence or circumstance in respect of which we may lawfully indemnify an office holder.
|
·
|
a breach by the office holder of his duty of loyalty unless, with respect to insurance coverage or indemnification, the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice the company;
|
·
|
a breach by the office holder of his duty of care if the breach was done intentionally or recklessly (other than if solely done in negligence);
|
·
|
any act or omission done with the intent to derive an illegal personal benefit; or
|
·
|
a fine, civil fine or ransom levied on an Office Holder, or a financial sanction imposed upon an Office Holder under Israeli Law.
|
|
·
|
A reduced corporate tax rate for industrial enterprises, provided that more than 25% of their annual income is derived from export. In 2015, the reduced tax rate was 9% for preferred income derived from industrial facilities located in development area A and 16% for those located elsewhere in Israel. These tax rates are scheduled to remain at the same level for the 2016 tax year.
|
|
·
|
The reduced tax rates are no longer contingent upon making a minimum qualifying investment in productive assets.
|
|
·
|
A definition of “preferred income” was introduced into the Investments Law to include certain types of income that are generated by the Israeli production activity of a Preferred Enterprise.
|
|
·
|
A reduced dividend withholding tax rate of 15% for the tax year 2013, and 20% for the tax year 2014 and thereafter applies to dividends paid from preferred income to both Israeli and non-Israeli investors, with an exemption from such withholding tax applying to dividends paid to an Israeli company.
|
|
·
|
A special tax benefits route will be granted to certain industrial enterprises entitling them to a reduced tax rate of 5% for preferred income derived from industrial facilities located in development area A and 8% for those located elsewhere in Israel, provided certain threshold requirements are met and such enterprise can demonstrate its significant contribution to Israel’s economy and promotion of national market objectives.
|
|
·
|
deductions over an eight-year period for purchases of know-how and patents;
|
|
·
|
deductions over a three-year period of expenses involved with the issuance and listing of shares on a stock market;
|
|
·
|
the right to elect, under specified conditions, to file a consolidated tax return with other related Israeli Industrial Companies; and
|
|
·
|
accelerated depreciation rates on equipment and buildings.
|
|
·
|
dealers or traders in securities, currencies or notional principal contracts;
|
|
·
|
financial institutions;
|
|
·
|
insurance companies;
|
|
·
|
real estate investment trusts;
|
|
·
|
banks;
|
|
·
|
investors subject to the alternative minimum tax;
|
|
·
|
tax-exempt organizations;
|
|
·
|
regulated investment companies;
|
|
·
|
investors that actually or constructively own 10 percent or more of our voting shares;
|
|
·
|
investors that will hold the ADSs as part of a hedging or conversion transaction or as a position in a straddle or a part of a synthetic security or other integrated transaction for U.S. Federal income tax purposes;
|
|
·
|
investors that are treated as partnerships or other pass through entities for U.S. Federal income tax purposes and persons who hold the ADSs through partnerships or other pass through entities;
|
|
·
|
investors whose functional currency is not the U.S. dollar; and
|
|
·
|
expatriates or former long-term residents of the United States.
|
|
·
|
an individual who is a citizen or a resident of the United States;
|
|
·
|
a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;
|
|
·
|
an estate whose income is subject to U.S. Federal income tax regardless of its source; or
|
|
·
|
a trust if:
|
|
(a)
|
a court within the United States is able to exercise primary supervision over administration of the trust; and
|
|
(b)
|
one or more United States persons have the authority to control all substantial decisions of the trust.
|
|
·
|
a U.S. holder would be required to allocate income recognized upon receiving certain dividends or gain recognized upon the disposition of ADSs ratably over its holding period for such ADSs,
|
|
·
|
the amount allocated to each year during which we are considered a PFIC other than the year of the dividend payment or disposition would be subject to tax at the highest individual or corporate tax rate, as the case may be, and an interest charge would be imposed with respect to the resulting tax liability allocated to each such year,
|
|
·
|
the amount allocated to the year of the dividend payment or disposition would be taxable as ordinary income, and
|
|
·
|
a U.S. holder would be required to make an annual return on IRS Form 8621 regarding distributions received and gain realized with respect to ADSs, and additionally recently promulgated regulations impose an additional annual filing requirement for U.S. holders who are shareholders of a PFIC.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Functional currencies
|
||||||||||||||||||||||||||||||||||||
(In U.S. dollars in millions)
|
||||||||||||||||||||||||||||||||||||
USD
|
GBP
|
EUR
|
CAD
|
MXN
|
CHF
|
AUD
|
BRL
|
Other currencies
|
||||||||||||||||||||||||||||
Foreign curren-cies
|
||||||||||||||||||||||||||||||||||||
USD
|
- | 22.7 | 14.5 | 1.6 | 0.1 | (0.5 | ) | 1.1 | (1.0 | ) | - | |||||||||||||||||||||||||
GBP
|
26.6 | - | 1.0 | - | - | 0.1 | - | - | - | |||||||||||||||||||||||||||
EUR
|
(4.0 | ) | 25.0 | - | - | - | (0.1 | ) | - | - | - | |||||||||||||||||||||||||
CAD
|
1.6 | 2.2 | 1.2 | - | - | - | - | - | - | |||||||||||||||||||||||||||
AUD
|
1.9 | 0.3 | 0.5 | - | - | - | - | - | - | |||||||||||||||||||||||||||
MXN
|
1.9 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
CHF
|
0.7 | 0.6 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
JPY
|
(0.6 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
INR
|
(0.6 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
SGD
|
(3.5 | ) | - | 0.2 | - | - | - | - | - | - | ||||||||||||||||||||||||||
HKD
|
(3.0 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
ILS
|
0.4 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other currencies
|
- | 0.3 | - | - | - | - | 0.2 | - | (1.7 | ) |
New Israeli Shekel
|
Other currencies
|
Total
|
||||||||||
(In U.S. dollars in millions)
|
||||||||||||
Less than 1 year
|
6.24 | 0.08 | 6.32 | |||||||||
1-3 years
|
9.99 | 0.04 | 10.03 | |||||||||
3-5 years
|
9.99 | - | 9.99 | |||||||||
Over 5 years
|
9.15 | - | 9.15 | |||||||||
Total
|
35.37 | 0.12 | 35.49 |
Amortized Cost
|
Estimated fair value
|
|||||||||||||||||||||||||||||||||||||||
Up to
1 year
|
1-3
years
|
4-5 years
|
6-10 years
|
Total
|
Up to 1 year
|
1-3 years
|
4-5 years
|
6-10 years
|
Total
|
|||||||||||||||||||||||||||||||
Corporate debentures
|
59.0 | 259.1 | 134.4 | - | 452.6 | 59.0 | 257.7 | 133.7 | - | 450.5 | ||||||||||||||||||||||||||||||
U.S. treasuries
|
- | - | - | 7.0 | 7.0 | - | - | - | 6.8 | 6.8 | ||||||||||||||||||||||||||||||
U.S. govern-ment agencies
|
- | 2.0 | 3.0 | - | 5.0 | - | 2.0 | 3.0 | - | 5.0 | ||||||||||||||||||||||||||||||
Total
|
59.0 | 261.1 | 137.4 | 7.0 | 464.6 | 59.0 | 259.7 | 136.7 | 6.8 | 462.3 |
Description of Securities Other than Equity Securities.
|
|
·
|
a fee of $1.50 per ADR for transfers of certificated or direct registration ADRs;
|
|
·
|
a fee of up to $0.05 per ADS for any cash distribution made pursuant to the deposit agreement;
|
|
·
|
a fee of up to $0.05 per ADS per calendar year (or portion thereof) for services performed by the depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against holders of ADRs as of the record date or record dates set by the depositary during each calendar year and shall be payable in the manner described in the next succeeding provision);
|
|
·
|
a fee for the reimbursement of such fees, charges and expenses as are incurred by the depositary or any of its agents (including, without limitation, the custodian and expenses incurred on behalf of holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the shares or other deposited securities, the sale of securities (including, without limitation, deposited securities), the delivery of deposited securities or otherwise in connection with the depositary's or its custodian's compliance with applicable law, rule or regulation (which fees and charges shall be assessed on a proportionate basis against holders as of the record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash distributions);
|
|
·
|
stock transfer or other taxes and other governmental charges;
|
|
·
|
cable, telex and facsimile transmission and delivery charges incurred at the request of an ADR holder in connection with the deposit or delivery of shares;
|
|
·
|
transfer or registration fees for the registration of transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited securities;
|
|
·
|
in connection with the conversion of foreign currency into U.S. dollars, the fees, expenses and other charges charged by JPMorgan Chase Bank, N.A. or its agent (which may be a division, branch or affiliate) so appointed in connection with such conversion; and
|
|
·
|
fees of any division, branch or affiliate of the depositary utilized by the depositary to direct, manage or execute any public or private sale of securities under the deposit agreement.
|
Services Rendered
|
2014 Fees
|
2015 Fees
|
||||||
Audit (1)
|
$ | 691,000 | $ | 676,865 | ||||
Audit-related (2)
|
$ | 72,000 | $ | 76,787 | ||||
Tax (3)
|
$ | 399,000 | $ | 146,645 | ||||
Total
|
$ | 1,162,000 | $ | 900,297 |
(1)
|
Audit fees are for audit services for each of the years shown in this table, including fees associated with the annual audit for 2015 (including audit in accordance with section 404 of the Sarbanes-Oxley Act) and certain procedures regarding our quarterly financial results submitted on Form 6-K, consultations concerning financial accounting and various accounting issues and performance of local statutory audits.
|
(2)
|
Audit-related fees relate to assurance and associated services that traditionally are performed by the independent auditor, including: due diligence investigations and audit services provided in connection with other statutory or regulatory filings.
|
(3)
|
Tax fees are for professional services rendered by our auditors for tax compliance, tax advice on actual or contemplated transactions, tax consulting associated with international transfer prices and global mobility of employees.
|
Period
|
(a) Total number of shares purchased
|
(b) Average price paid per share
|
(c) Total number of shares purchased as part of publicly announced plans or programs
|
(d) Maximum number (or approximately dollar value) of shares that may yet be purchased under the plans or programs
|
||||||||||||
(In U.S. dollars, except share amounts)
|
||||||||||||||||
January 1 – January 31
|
3,417 | 47.99 | 3,417 | 23,401,540 | ||||||||||||
February 1 - February 28
|
- | - | - | 23,401,540 | ||||||||||||
March 1 - March 31
|
122,601 | 59.73 | 122,601 | 16,078,382 | ||||||||||||
April 1 - April 30
|
183,071 | - | 183,071 | 5,187,292 | ||||||||||||
May 1 - May 31
|
- | - | - | 105,187,292 | ||||||||||||
June 1 - June 30
|
- | - | - | 105,187,292 | ||||||||||||
July 1 - July 31
|
- | - | - | 105,187,292 | ||||||||||||
August 1 - August 31
|
195,096 | 62.31 | 195,096 | 93,030,803 | ||||||||||||
September 1 - September 30
|
298,054 | 59.84 | 298,054 | 75,196,688 | ||||||||||||
October 1 - October 31
|
- | - | - | 75,196,688 | ||||||||||||
November 1 - November 30
|
134,068 | 62.52 | 134,068 | 66,814,194 | ||||||||||||
December 1 - December 31
|
198,208 | 58.58 | 198,208 | 55,203,027 | ||||||||||||
Total
|
1,134,515 | 60.26 | 1,134,515 |
Item 19.
|
Exhibits.
|
Exhibit No.
|
Description
|
||
1.1
|
Amended and Restated Memorandum of Association, as approved on December 21, 2006 (English translation) (filed as Exhibit 1.1 to NICE-Systems Ltd.’s Annual Report on Form 20-F filed with the SEC on June 13, 2007, and incorporated herein by reference).
|
||
1.2
|
Amended and Restated Articles of Association, as amended on July 9, 2015.
|
||
2.1
|
Form of Share Certificate (filed as Exhibit 4.1 to Amendment No. 1 to NICE-Systems Ltd.’s Registration Statement on Form F-1 (Registration No. 333-99640) filed with the SEC on December 29, 1995, and incorporated herein by reference).
|
||
2.2
|
Form of Deposit Agreement including Form of ADR Certificate (filed as Exhibit 1 to NICE-Systems Ltd.’s Registration Statement on Form F-6 (Registration No. 333-203623) filed with the SEC on April 24, 2015, and incorporated herein by reference).
|
||
4.1
|
NICE Systems Ltd. 2003 Stock Option Plan, as amended (filed as Exhibit 4.4 to NICE-System Ltd.’s Annual Report on Form 20-F (File No. 000-27466) filed with the SEC on April 6, 2009, and incorporated herein by reference).
|
||
4.2
|
Actimize Ltd. 2003 Omnibus Stock Option and Restricted Stock Incentive Plan (filed as Exhibit 4.4 to NICE-System Ltd.’s Registration Statement on Form S-8 (Registration No. 333-145981) filed with the SEC on September 11, 2007, and incorporated herein by reference).
|
||
4.3
|
NICE Systems Ltd. 2016 Share Incentive Plan.
|
||
4.4
|
NICE Systems Ltd. 2008 Share Incentive Plan, as amended (filed as Exhibit 99.1 to NICE’s Immediate Report on Form 6-K filed with the SEC on May 28, 2015, and incorporated herein by reference).
|
||
4.5
|
e-Glue Software Technologies, Inc. 2004 Stock Option Plan, as amended (filed as Exhibit 4.4 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-168100) filed with the SEC on July 14, 2010, and incorporated herein by reference).
|
||
4.6
|
Fizzback Group (Holdings) Limited Employee Share Option Scheme (filed as Exhibit 4.4 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-177510) filed with the SEC on October 26, 2011, and incorporated herein by reference).
|
||
4.7
|
Merced Systems, Inc. 2001 Stock Plan (filed as Exhibit 4.4 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-179408) filed with the SEC on February 7, 2012, and incorporated herein by reference).
|
||
4.8
|
Merced Systems, Inc. 2011 Stock Plan (filed as Exhibit 4.5 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-179408) filed with the SEC on February 7, 2012, and incorporated herein by reference).
|
||
4.9
|
The Causata Inc. Executive Share Option Scheme (filed as Exhibit 4.4 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-191176) filed with the SEC on September 16, 2013, and incorporated herein by reference).
|
||
4.10
|
Causata Inc. 2010 Stock Plan (filed as Exhibit 4.5 to NICE-Systems Ltd.’s Registration Statement on Form S-8 (Registration No. 333-191176) filed with the SEC on September 16, 2013, and incorporated herein by reference).
|
||
4.11
|
NICE System Ltd.’s Executives & Directors Compensation Policy (filed as Annex A in Exhibit 99.1 of NICE’s Immediate Report on Form 6-K filed with the SEC on June 1, 2015 and incorporated herein by reference).
|
8.1
|
List of significant subsidiaries.
|
|
12.1
|
Certification by the Chief Executive Officer of NICE-Systems Ltd., pursuant to Section 302 of the Sarbanes-Oxley Act 2002.
|
|
12.2
|
Certification by the Chief Financial Officer of NICE-Systems Ltd., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
13.1
|
Certification by the Chief Executive Officer of NICE-Systems Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
13.2
|
Certification by the Chief Financial Officer of NICE-Systems Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
15.1
|
Consent of Kost, Forer, Gabbay & Kasierer, a member of Ernst & Young Global.
|
|
101
|
The following financial information from NICE-Systems Ltd.’s Annual Report on Form 20-F for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at December 31, 2015 and 2014; (ii) Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013; (iii) Statements of Changes in Shareholders’ Equity and Comprehensive Income for the years ended December 31, 2015, 2014, and 2013; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014, and 2013; and (v) Notes to Consolidated Financial Statements.
|
Page
|
|
F-2 - F-4
|
|
F-5 - F-6
|
|
F-7
|
|
F-8
|
|
F-9 - F-10
|
|
F-11 - F-12
|
|
F-13 - F-51
|
Kost Forer Gabbay & Kasierer
3 Aminadav St.
Tel-Aviv 6706703, Israel
|
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com
|
Tel-Aviv, Israel
|
KOST FORER GABBAY & KASIERER
|
March 23, 2016
|
A Member of Ernst & Young Global
|
Kost Forer Gabbay & Kasierer
3 Aminadav St.
Tel-Aviv 6706703, Israel
|
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com
|
Kost Forer Gabbay & Kasierer
3 Aminadav St.
Tel-Aviv 6706703, Israel
|
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com
|
Tel-Aviv, Israel
|
KOST FORER GABBAY & KASIERER
|
March 23, 2016
|
A Member of Ernst & Young Global
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 325,931 | $ | 187,497 | ||||
Short-term investments
|
99,195 | 65,744 | ||||||
Trade receivables (net of allowance for doubtful accounts of $ 5,315 and $ 4,900 at December 31, 2015 and 2014, respectively)
|
177,323 | 155,628 | ||||||
Prepaid expenses and other current assets
|
43,561 | 40,257 | ||||||
Current assets of discontinued operations
|
9,142 | 36,351 | ||||||
Total current assets
|
655,152 | 485,477 | ||||||
LONG-TERM ASSETS:
|
||||||||
Long-term investments
|
403,249 | 246,721 | ||||||
Other long-term assets
|
17,175 | 18,921 | ||||||
Property and equipment, net
|
39,213 | 40,170 | ||||||
Deferred tax assets
|
14,130 | 18,853 | ||||||
Other intangible assets, net
|
69,582 | 109,799 | ||||||
Goodwill
|
651,112 | 659,657 | ||||||
Long-term assets of discontinued operations
|
- | 53,354 | ||||||
Total long-term assets
|
1,194,461 | 1,147,475 | ||||||
Total assets
|
$ | 1,849,613 | $ | 1,632,952 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$ | 11,719 | $ | 9,088 | ||||
Deferred revenues and advances from customers
|
151,345 | 122,528 | ||||||
Accrued expenses and other liabilities
|
223,255 | 192,414 | ||||||
Current liabilities of discontinued operations
|
12,744 | 54,357 | ||||||
Total current liabilities
|
399,063 | 378,387 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
17,952 | 18,830 | ||||||
Deferred tax liabilities
|
15,040 | 14,176 | ||||||
Long-term liabilities of discontinued operations
|
2,409 | 8,103 | ||||||
Total long-term liabilities
|
35,401 | 41,109 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital-
|
||||||||
Ordinary shares of NIS 1 par value:
|
||||||||
Authorized: 125,000,000 shares at December 31, 2015 and 2014; Issued: 71,158,401 and 69,749,722 shares at December 31, 2015 and 2014, respectively; Outstanding: 59,526,506 and 59,252,342 shares at December 31, 2015 and 2014, respectively
|
17,977 | 17,615 | ||||||
Additional paid-in capital
|
1,234,206 | 1,171,424 | ||||||
Treasury shares at cost - 11,633,783 and 10,499,268 Ordinary shares at December 31, 2015 and 2014, respectively
|
(445,021 | ) | (376,637 | ) | ||||
Accumulated other comprehensive loss
|
(24,205 | ) | (10,546 | ) | ||||
Retained earnings
|
632,192 | 411,600 | ||||||
Total shareholders' equity
|
1,415,149 | 1,213,456 | ||||||
Total liabilities and shareholders' equity
|
$ | 1,849,613 | $ | 1,632,952 |
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Revenues:
|
||||||||||||
Products
|
$ | 317,900 | $ | 289,560 | $ | 280,140 | ||||||
Services
|
608,967 | 582,435 | 541,375 | |||||||||
Total revenues
|
926,867 | 871,995 | 821,515 | |||||||||
Cost of revenues:
|
||||||||||||
Products
|
66,363 | 63,919 | 69,335 | |||||||||
Services
|
237,219 | 239,592 | 230,279 | |||||||||
Total cost of revenues
|
303,582 | 303,511 | 299,614 | |||||||||
Gross profit
|
623,285 | 568,484 | 521,901 | |||||||||
Operating expenses:
|
||||||||||||
Research and development, net
|
128,485 | 123,141 | 115,431 | |||||||||
Selling and marketing
|
225,817 | 231,097 | 214,579 | |||||||||
General and administrative
|
90,349 | 83,360 | 86,467 | |||||||||
Amortization of acquired intangibles
|
12,528 | 19,157 | 29,438 | |||||||||
Restructuring expenses
|
- | 5,435 | 527 | |||||||||
Total operating expenses
|
457,179 | 462,190 | 446,442 | |||||||||
Operating income
|
166,106 | 106,294 | 75,459 | |||||||||
Financial income and other, net
|
5,304 | 3,765 | 3,927 | |||||||||
Income before taxes on income
|
171,410 | 110,059 | 79,386 | |||||||||
Taxes on income
|
(30,832 | ) | (9,909 | ) | (26,915 | ) | ||||||
Net income from continuing operations
|
$ | 140,578 | $ | 100,150 | $ | 52,471 | ||||||
Discontinued operations:
|
||||||||||||
Gain on disposal and income (loss) from operations
|
152,459 | 4,965 | 4,294 | |||||||||
Taxes on income
|
(34,206 | ) | (2,040 | ) | (1,490 | ) | ||||||
Net income on discontinued operations
|
118,253 | 2,925 | 2,804 | |||||||||
Net income
|
$ | 258,831 | $ | 103,075 | $ | 55,275 | ||||||
Basic earnings per share from continuing operations
|
$ | 2.36 | $ | 1.69 | $ | 0.87 | ||||||
Basic earnings per share from discontinued operations
|
$ | 1.99 | $ | 0.05 | $ | 0.05 | ||||||
Basic earnings per share
|
$ | 4.35 | $ | 1.74 | $ | 0.92 | ||||||
Diluted earnings per share from continuing operations
|
$ | 2.29 | $ | 1.64 | $ | 0.85 | ||||||
Diluted earnings per share from discontinued operations
|
$ | 1.93 | $ | 0.05 | $ | 0.04 | ||||||
Diluted earnings per share
|
$ | 4.22 | $ | 1.69 | $ | 0.89 | ||||||
Weighted average number of shares used in computing:
|
||||||||||||
Basic earnings per share
|
59,552 | 59,362 | 60,388 | |||||||||
Diluted earnings per share
|
61,281 | 60,895 | 61,830 |
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Net income
|
$ | 258,831 | $ | 103,075 | $ | 55,275 | ||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Change in foreign currency translation adjustment
|
(14,602 | ) | (17,972 | ) | 4,906 | |||||||
Available- for- sale investments:
|
||||||||||||
Change in net unrealized gains (losses)
|
(2,081 | ) | 259 | (3,503 | ) | |||||||
Less - reclassification adjustment for net gains realized and included in net income
|
(32 | ) | (16 | ) | - | |||||||
Net change (net of tax effect of ($338), $117, and ($ 519))
|
(2,113 | ) | 243 | (3,503 | ) | |||||||
Cash flow hedges:
|
||||||||||||
Change in unrealized gains
|
(954 | ) | (6,770 | ) | 985 | |||||||
Less - reclassification adjustment for net gains realized and included in net income
|
4,010 | 1,552 | (2,181 | ) | ||||||||
Net change
|
3,056 | (5,218 | ) | (1,196 | ) | |||||||
Total other comprehensive income (loss)
|
(13,659 | ) | (22,947 | ) | 207 | |||||||
Comprehensive income
|
$ | 245,172 | $ | 80,128 | $ | 55,482 |
Share
capital
|
Additional
paid-in
capital
|
Treasury shares
|
Accumulated other comprehensive income (loss)
|
Retained earnings
|
Total
shareholders'
equity
|
|||||||||||||||||||
Balance as of January 1, 2015
|
$ | 17,615 | $ | 1,171,424 | $ | (376,637 | ) | $ | (10,546 | ) | $ | 411,600 | $ | 1,213,456 | ||||||||||
Exercise of share options
|
362 | 26,736 | - | - | - | 27,098 | ||||||||||||||||||
Stock-based compensation
|
- | 28,451 | - | - | - | 28,451 | ||||||||||||||||||
Excess tax benefit from share-based payment
arrangements
|
- | 7,595 | - | - | - | 7,595 | ||||||||||||||||||
Treasury shares purchased
|
- | - | (68,384 | ) | - | - | (68,384 | ) | ||||||||||||||||
Other comprehensive loss
|
- | - | - | (13,659 | ) | - | (13,659 | ) | ||||||||||||||||
Dividends paid ($ 0.64 per share)
|
- | - | - | - | (38,239 | ) | (38,239 | ) | ||||||||||||||||
Net income
|
- | - | - | - | 258,831 | 258,831 | ||||||||||||||||||
Balance as of December 31, 2015
|
$ | 17,977 | $ | 1,234,206 | $ | (445,021 | ) | $ | (24,205 | ) | $ | 632,192 | $ | 1,415,149 |
Share
capital
|
Additional
paid-in
capital
|
Treasury shares
|
Accumulated other comprehensive income (loss)
|
Retained earnings
|
Total
shareholders'
equity
|
|||||||||||||||||||
Balance as of January 1, 2014
|
$ | 17,212 | $ | 1,112,367 | $ | (283,851 | ) | $ | 12,401 | $ | 346,667 | $ | 1,204,796 | |||||||||||
Issuance of shares of ESPP
|
3 | 433 | - | - | - | 436 | ||||||||||||||||||
Exercise of share options
|
400 | 27,605 | - | - | - | 28,005 | ||||||||||||||||||
Stock-based compensation
|
- | 29,814 | - | - | - | 29,814 | ||||||||||||||||||
Excess tax benefit from share-based payment
arrangements
|
- | 1,205 | - | - | - | 1,205 | ||||||||||||||||||
Treasury shares purchased
|
- | - | (92,786 | ) | - | - | (92,786 | ) | ||||||||||||||||
Other comprehensive loss
|
- | - | - | (22,947 | ) | - | (22,947 | ) | ||||||||||||||||
Dividends paid ($ 0.64 per share)
|
- | - | - | - | (38,142 | ) | (38,142 | ) | ||||||||||||||||
Net income
|
- | - | - | - | 103,075 | 103,075 | ||||||||||||||||||
Balance as of December 31, 2014
|
$ | 17,615 | $ | 1,171,424 | $ | (376,637 | ) | $ | (10,546 | ) | $ | 411,600 | $ | 1,213,456 |
Share
capital
|
Additional
paid-in
capital
|
Treasury shares
|
Accumulated other comprehensive income
|
Retained earnings
|
Total
shareholders'
equity
|
|||||||||||||||||||
Balance as of January 1, 2013
|
$ | 16,666 | $ | 1,045,733 | $ | (203,907 | ) | $ | 12,194 | $ | 320,402 | $ | 1,191,088 | |||||||||||
Issuance of shares of ESPP
|
6 | 777 | - | - | - | 783 | ||||||||||||||||||
Exercise of share options
|
523 | 38,395 | - | - | - | 38,918 | ||||||||||||||||||
Restricted shares vesting in respect of Merced
acquisition
|
17 | (17 | ) | - | - | - | - | |||||||||||||||||
Stock-based compensation
|
- | 26,307 | - | - | - | 26,307 | ||||||||||||||||||
Excess tax benefit from share-based payment
arrangements
|
- | 1,172 | - | - | - | 1,172 | ||||||||||||||||||
Treasury shares purchased
|
- | - | (79,944 | ) | - | - | (79,944 | ) | ||||||||||||||||
Other comprehensive income
|
- | - | - | 207 | - | 207 | ||||||||||||||||||
Dividends paid ($ 0.48 per share)
|
- | - | - | - | (29,010 | ) | (29,010 | ) | ||||||||||||||||
Net income
|
- | - | - | - | 55,275 | 55,275 | ||||||||||||||||||
Balance as of December 31, 2013
|
$ | 17,212 | $ | 1,112,367 | $ | (283,851 | ) | $ | 12,401 | $ | 346,667 | $ | 1,204,796 |
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 258,831 | $ | 103,075 | $ | 55,275 | ||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
57,964 | 73,349 | 91,355 | |||||||||
Stock-based compensation
|
28,451 | 29,814 | 26,307 | |||||||||
Equity in losses of affiliated company
|
537 | 565 | - | |||||||||
Revaluation of earn out liability
|
- | (4,002 | ) | - | ||||||||
Excess tax benefit from share-based payment arrangements
|
(7,595 | ) | (1,205 | ) | (1,172 | ) | ||||||
Accrued severance pay, net
|
104 | (207 | ) | (43 | ) | |||||||
Amortization of premium and discount and accrued interest on marketable securities
|
2,799 | 2,071 | 4,234 | |||||||||
Deferred taxes, net
|
10,576 | (27,785 | ) | (17,275 | ) | |||||||
Changes in operating assets and liabilities:
|
||||||||||||
Trade receivables, net
|
(56,363 | ) | 4,807 | (34,569 | ) | |||||||
Prepaid expenses and other current assets
|
(1,482 | ) | 1,956 | (1,612 | ) | |||||||
Trade payables
|
2,166 | (13,781 | ) | 5,057 | ||||||||
Accrued expenses and other liabilities
|
40,896 | 10,319 | 1,782 | |||||||||
Deferred revenues
|
54,914 | 3,424 | (4,551 | ) | ||||||||
Gain on disposal of discontinued operations
|
(147,334 | ) | - | - | ||||||||
Other
|
269 | (131 | ) | (513 | ) | |||||||
Net cash provided by operating activities
|
244,733 | 182,269 | 124,275 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Purchase of property and equipment
|
(16,596 | ) | (16,722 | ) | (20,226 | ) | ||||||
Investment in marketable securities
|
(247,593 | ) | (74,188 | ) | (145,885 | ) | ||||||
Proceeds from maturity of marketable securities
|
65,123 | 43,411 | 162,521 | |||||||||
Proceeds from sale and call of marketable securities
|
27,419 | 2,403 | 791 | |||||||||
Proceeds from short-term bank deposits
|
- | 107,327 | 54,422 | |||||||||
Investment in short-term bank deposits
|
(40,000 | ) | (69,500 | ) | (60,500 | ) | ||||||
Payments for business acquisitions, net of cash acquired and investments in affiliates
|
(1,500 | ) | (748 | ) | (23,911 | ) | ||||||
Capitalization of software development costs
|
(1,380 | ) | (908 | ) | (1,038 | ) | ||||||
Proceeds upon the realization of investment in affiliate
|
- | - | 683 | |||||||||
Proceeds from sale of discontinued operations
|
186,134 | - | - | |||||||||
Net cash used in investing activities
|
(28,393 | ) | (8,925 | ) | (33,143 | ) |
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from issuance of shares upon exercise of options and ESPP
|
27,532 | 29,526 | 38,381 | |||||||||
Purchase of treasury shares
|
(68,384 | ) | (94,267 | ) | (79,447 | ) | ||||||
Dividends paid
|
(38,239 | ) | (38,142 | ) | (29,010 | ) | ||||||
Excess tax benefit from share-based payment arrangements
|
7,595 | 1,205 | 1,172 | |||||||||
Earn out payments related to acquisitions
|
(297 | ) | (158 | ) | (280 | ) | ||||||
Net cash used in financing activities
|
(71,793 | ) | (101,836 | ) | (69,184 | ) | ||||||
Effect of exchange rate changes on cash
|
(6,113 | ) | (3,556 | ) | (999 | ) | ||||||
Increase in cash and cash equivalents
|
138,434 | 67,952 | 20,949 | |||||||||
Cash and cash equivalents at the beginning of the year
|
187,497 | 119,545 | 98,596 | |||||||||
Cash and cash equivalents at the end of the year
|
$ | 325,931 | $ | 187,497 | $ | 119,545 | ||||||
Supplemental disclosure of cash flows activities:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Income taxes
|
$ | 53,646 | $ | 32,854 | $ | 43,862 | ||||||
Interest
|
$ | 107 | $ | 116 | $ | 336 | ||||||
Non-cash activities:
|
||||||||||||
Net change in accrued liability with respect to treasury shares
|
$ | - | $ | (1,481 | ) | $ | 497 | |||||
Net change in other receivables with respect to exercise of share options
|
$ | 434 | $ | 1,085 | $ | (1,320 | ) |
NOTE 1:-
|
GENERAL
|
|
a.
|
General:
|
|
b.
|
Acquisitions in prior years:
|
|
c.
|
Discontinued operations
|
NOTE 1:-
|
GENERAL
|
Year ended
December 31,
|
||||||||||||
(* 2015
|
2014
|
2013
|
||||||||||
Revenue
|
$ | 68,672 | $ | 139,644 | $ | 127,769 | ||||||
Cost of sales
|
26,956 | 72,073 | 65,333 | |||||||||
Operating expenses
|
36,307 | 62,041 | 58,142 | |||||||||
Operating income
|
5,409 | 5,530 | 4,294 | |||||||||
Other expenses, net
|
284 | 565 | - | |||||||||
Gain on disposal of the discontinued operations
|
147,334 | - | - | |||||||||
Income before taxes on income
|
152,459 | 4,965 | 4,294 | |||||||||
Taxes on income
|
34,206 | 2,040 | 1,490 | |||||||||
Total net income on discontinued operations
|
$ | 118,253 | $ | 2,925 | $ | 2,804 |
NOTE 1:-
|
GENERAL (cont.)
|
Year ended
December 31,
|
||||||||
2015
|
2014
|
|||||||
Trade receivables
|
$ | 5,224 | $ | 25,977 | ||||
Prepaid expenses and other current assets
|
3,893 | 7,159 | ||||||
Long Term Investments
|
- | 5,509 | ||||||
Severance pay fund
|
- | 4,997 | ||||||
Deferred taxes
|
- | 5,296 | ||||||
Goodwill
|
- | 35,122 | ||||||
Other classes of assets
|
25 | 5,645 | ||||||
Total assets of discontinued operations
|
9,142 | 89,705 | ||||||
Trade payables
|
- | 2,822 | ||||||
Accrued expenses and other liabilities
|
12,698 | 28,813 | ||||||
Deferred revenue
|
- | 22,722 | ||||||
Accrued severance pay
|
- | 5,463 | ||||||
Other classes of liabilities
|
2,455 | 2,640 | ||||||
Total liabilities of discontinued operations
|
$ | 15,153 | $ | 62,460 |
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES
|
|
a.
|
Use of estimates:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
b.
|
Financial statements in United States dollars:
|
|
c.
|
Principles of consolidation:
|
|
d.
|
Cash equivalents:
|
|
e.
|
Marketable securities:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
f.
|
Inventories:
|
|
g.
|
Property and equipment, net:
|
%
|
|
Computers and peripheral equipment
|
20-33
|
Office furniture and equipment
|
6 - 20
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
h.
|
Other intangible assets, net:
|
%
|
|
Core technology
|
18
|
Customer relationships and distribution network
|
13
|
Capitalized software development costs (see m below)
|
33
|
|
i.
|
Impairment of long-lived assets:
|
|
j.
|
Goodwill:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
k.
|
Revenue recognition:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
l.
|
Research and development and software development costs:
|
|
m.
|
Income taxes:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
n.
|
Non-royalty grants:
|
|
o.
|
Concentrations of credit risk:
|
|
p.
|
Severance pay:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
q.
|
Basic and diluted net earnings per share:
|
|
r.
|
Accounting for stock-based compensation:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
s.
|
Fair value of financial instruments:
|
|
·
|
Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
|
|
·
|
Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
|
|
·
|
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
t.
|
Legal contingencies:
|
|
u.
|
Advertising expenses:
|
|
v.
|
Treasury shares:
|
|
w.
|
Comprehensive income:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
Year ended December 31, 2015
|
||||||||||||||||
Unrealized gains (losses) on marketable securities
|
Unrealized gains (losses) on cash flow hedges
|
Foreign currency translation adjustment
|
Total
|
|||||||||||||
Beginning balance
|
$ | 183 | $ | (3,625 | ) | $ | (7,104 | ) | $ | (10,546 | ) | |||||
Other comprehensive income (loss) before reclassifications
|
(2,081 | ) | (954 | ) | (14,602 | ) | (17,637 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income
|
(32 | ) | 4,010 | - | 3,978 | |||||||||||
Net current-period other comprehensive income (loss)
|
(2,113 | ) | 3,056 | (14,602 | ) | (13,659 | ) | |||||||||
Ending balance
|
$ | ( 1,930 | ) | $ | (569 | ) | $ | (21,706 | ) | $ | (24,205 | ) |
Year ended December 31, 2014
|
||||||||||||||||
Unrealized gains (losses) on marketable securities
|
Unrealized gains (losses) on cash flow hedges
|
Foreign currency translation adjustment
|
Total
|
|||||||||||||
Beginning balance
|
$ | (60 | ) | $ | 1,593 | $ | 10,868 | $ | 12,401 | |||||||
Other comprehensive income (loss) before reclassifications
|
259 | (6,770 | ) | (17,972 | ) | (24,483 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income
|
(16 | ) | 1,552 | - | 1,536 | |||||||||||
Net current-period other comprehensive income (loss)
|
243 | (5,218 | ) | (17,972 | ) | (22,947 | ) | |||||||||
Ending balance
|
$ | 183 | $ | (3,625 | ) | $ | (7,104 | ) | $ | (10,546 | ) |
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
|
x.
|
Recently issued accounting standards:
|
NOTE 2:-
|
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
NOTE 3:-
|
SHORT-TERM AND LONG-TERM INVESTMENTS
|
Amortized cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Estimated fair value
|
|||||||||||||||||||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||||||||
Level 2:
|
||||||||||||||||||||||||||||||||
Corporate debentures
|
$ | 452,556 | $ | 305,046 | $ | 267 | $ | 1,326 | $ | 2,338 | $ | 711 | $ | 450,485 | $ | 305,661 | ||||||||||||||||
U.S. Agencies
|
4,999 | - | 3 | - | 2 | - | 5,000 | - | ||||||||||||||||||||||||
U.S. Treasuries
|
7,010 | 7,011 | - | - | 197 | 207 | 6,813 | 6,804 | ||||||||||||||||||||||||
$ | 464,565 | $ | 312,057 | $ | 270 | $ | 1,326 | $ | 2,537 | $ | 918 | $ | 462,298 | $ | 312,465 |
Amortized
|
Estimated
|
|||||||
cost
|
fair value
|
|||||||
Due within one year
|
58,998 | 59,049 | ||||||
Due after one year through five years
|
398,557 | 396,436 | ||||||
Due after six years through ten years
|
7,010 | 6,813 | ||||||
464,565 | 462,298 |
NOTE 3:-
|
SHORT-TERM AND LONG-TERM INVESTMENTS (Cont.)
|
December 31, 2015
|
||||||||||||||||||||||||
Investments with continuous unrealized
losses for less than 12 months
|
Investments with continuous unrealized
losses for 12 months or greater
|
Total Investments with continuous unrealized losses
|
||||||||||||||||||||||
Fair
value
|
Unrealized losses
|
Fair
value
|
Unrealized losses
|
Fair
value
|
Unrealized losses
|
|||||||||||||||||||
Corporate debentures
|
$ | 242,545 | $ | (1,750 | ) | $ | 113,581 | $ | (588 | ) | $ | 356,126 | $ | (2,338 | ) | |||||||||
U.S. Agencies
|
1,997 | (3 | ) | - | - | 1,997 | (3 | ) | ||||||||||||||||
U.S. treasuries
|
- | - | 6,813 | (196 | ) | 6,813 | (196 | ) | ||||||||||||||||
$ | 244,542 | $ | (1,753 | ) | $ | 120,394 | $ | (784 | ) | $ | 364,936 | $ | (2,537 | ) |
December 31, 2014
|
||||||||||||||||||||||||
Investments with continuous unrealized
losses for less than 12 months
|
Investments with continuous unrealized
losses for 12 months or greater
|
Total Investments with continuous unrealized losses
|
||||||||||||||||||||||
Fair
value
|
Unrealized losses
|
Fair
value
|
Unrealized losses
|
Fair
value
|
Unrealized losses
|
|||||||||||||||||||
Corporate debentures
|
$ | 47,575 | $ | (189 | ) | 86,950 | $ | (522 | ) | $ | 134,525 | $ | (711 | ) | ||||||||||
U.S. treasuries
|
- | - | 6,804 | (207 | ) | 6,804 | (207 | ) | ||||||||||||||||
$ | 47,575 | $ | (189 | ) | $ | 93,754 | $ | (729 | ) | $ | 141,329 | $ | (918 | ) |
NOTE 4:-
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Government authorities
|
$ | 21,821 | $ | 18,082 | ||||
Interest receivable
|
2,597 | 1,782 | ||||||
Prepaid expenses
|
10,385 | 11,084 | ||||||
Inventories
|
6,198 | 6,969 | ||||||
Other
|
2,560 | 2,340 | ||||||
$ | 43,561 | $ | 40,257 |
NOTE 5:-
|
OTHER LONG-TERM ASSETS
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Severance pay fund
|
$ | 15,857 | $ | 17,246 | ||||
Long-term deposits
|
1,318 | 1,675 | ||||||
$ | 17,175 | $ | 18,921 |
NOTE 6:-
|
PROPERTY AND EQUIPMENT, NET
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cost:
|
||||||||
Computers and peripheral equipment
|
$ | 118,326 | $ | 109,266 | ||||
Office furniture and equipment
|
8,537 | 11,355 | ||||||
Leasehold improvements
|
29,106 | 28,809 | ||||||
155,969 | 149,430 | |||||||
Accumulated depreciation:
|
||||||||
Computers and peripheral equipment
|
95,056 | 86,794 | ||||||
Office furniture and equipment
|
6,372 | 8,684 | ||||||
Leasehold improvements
|
15,328 | 13,782 | ||||||
116,756 | 109,260 | |||||||
Depreciated cost
|
$ | 39,213 | $ | 40,170 |
NOTE 7:-
|
OTHER INTANGIBLE ASSETS, NET
|
|
a.
|
Definite-lived other intangible assets:
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Original amounts:
|
||||||||
Core technology
|
$ | 257,434 | $ | 262,065 | ||||
Customer relationships and distribution network
|
182,768 | 185,488 | ||||||
Capitalized software development costs
|
7,829 | 6,516 | ||||||
Trademarks
|
12,252 | 12,542 | ||||||
Covenant not to compete
|
9,981 | 10,119 | ||||||
470,264 | 476,730 | |||||||
Accumulated amortization:
|
||||||||
Core technology
|
210,627 | 186,726 | ||||||
Customer relationships and distribution network
|
161,863 | 151,948 | ||||||
Capitalized software development costs
|
5,959 | 5,596 | ||||||
Trademarks
|
12,252 | 12,542 | ||||||
Covenant not to compete
|
9,981 | 10,119 | ||||||
400,682 | 366,931 | |||||||
Other intangible assets, net
|
$ | 69,582 | $ | 109,799 |
|
b.
|
Amortization expense amounted to $40,055, $50,738 and $67,566 for the years ended December 31, 2015, 2014 and 2013, respectively.
|
|
c.
|
The Company recorded a reduction of $0 and $3,270 to the original amounts and accumulated amortization of fully amortized other intangible assets for the years ended December 31, 2015 and 2014, respectively.
|
|
d.
|
Estimated amortization expense:
|
For the year ended December 31,
|
||||
2016
|
31,494 | |||
2017
|
26,059 | |||
2018
|
7,309 | |||
2019
|
4,384 | |||
2020
|
336 | |||
69,582 |
NOTE 8:-
|
GOODWILL
|
Year ended
December 31, 2015
|
||||||||||||
Customer Interactions Solutions
|
Financial Crime and Compliance Solutions
|
Total
|
||||||||||
As of January 1, 2015
|
$ | 392,228 | $ | 267,429 | $ | 659,657 | ||||||
Functional currency translation adjustments
|
(7,420 | ) | (1,125 | ) | (8,545 | ) | ||||||
As of December 31, 2015
|
$ | 384,808 | $ | 266,304 | $ | 651,112 |
Year ended
December 31, 2014
|
||||||||||||
Customer Interactions Solutions
|
Financial Crime and Compliance Solutions
|
Total
|
||||||||||
As of January 1, 2014
|
$ | 401,345 | $ | 268,821 | $ | 670,166 | ||||||
Functional currency translation adjustments
|
(9,117 | ) | (1,392 | ) | (10,509 | ) | ||||||
As of December 31, 2014
|
$ | 392,228 | $ | 267,429 | $ | 659,657 |
NOTE 9:-
|
ACCRUED EXPENSES AND OTHER LIABILITIES
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Employees and payroll accruals
|
$ | 109,995 | $ | 82,113 | ||||
Accrued expenses
|
61,958 | 46,872 | ||||||
Government authorities
|
50,001 | 57,849 | ||||||
Other
|
1,301 | 5,580 | ||||||
$ | 223,255 | $ | 192,414 |
NOTE 10:-
|
DERIVATIVE INSTRUMENTS
|
Notional amount
|
Fair value
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Level 2:
|
||||||||||||||||
Option contracts to hedge payroll expenses
|
$ | 110,000 | $ | 102,450 | $ | (566 | ) | $ | (4,133 | ) | ||||||
Option contracts to hedge facilities expenses
|
5,018 | 5,837 | 1 | 19 | ||||||||||||
$ | 115,018 | $ | 108,287 | $ | (565 | ) | $ | (4,114 | ) |
NOTE 10:-
|
DERIVATIVE INSTRUMENTS (Cont.)
|
Fair value of derivative instruments
|
|||||||||
December 31,
|
|||||||||
Balance sheet line item
|
2015
|
2014
|
|||||||
Derivative assets:
|
|||||||||
Foreign exchange option contracts
|
Other receivables and prepaid expenses
|
$ | 1 | $ | 19 | ||||
Derivative liabilities:
|
|||||||||
Foreign exchange option contracts
|
Accrued expenses and other liabilities
|
$ | (566 | ) | $ | (4,133 | ) |
Amount of gain (loss) recognized in OCI
on derivative (effective portion)
|
||||||||||||
Year ended December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Derivatives in cash flow hedging relationship:
|
||||||||||||
Foreign exchange option contracts
|
$ | 954 | $ | 6,770 | $ | (5,296 | ) | |||||
Foreign exchange forward contracts
|
- | - | 4,311 | |||||||||
$ | 954 | $ | 6,770 | $ | (985 | ) |
Amount of gain (loss) reclassified from OCI into income (expenses) (effective portion)
|
|||||||||||||
Year ended December 31,
|
|||||||||||||
Statements of income line item
|
2015
|
2014
|
2013
|
||||||||||
Option contracts
|
Cost of revenues, operating expenses and discontinued operations
|
$ | 4,010 | $ | 1,552 | $ | (6,491 | ) | |||||
Forward contracts
|
Financial income
|
- | - | 4,310 | |||||||||
$ | 4,010 | $ | 1,552 | $ | (2,181 | ) |
NOTE 11:-
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
|
a.
|
Lease commitments:
|
|
1.
|
The Company's office space and office equipment are rented under several operating leases.
|
2016
|
$ | 14,883 | ||
2017
|
12,438 | |||
2018
|
11,420 | |||
2019
|
9,034 | |||
2020
|
8,569 | |||
2021 and thereafter
|
11,201 | |||
$ | 67,545 |
|
2.
|
The Company leases its motor vehicles under cancelable operating lease agreements.
|
|
b.
|
Other commitments:
|
NOTE 11:-
|
COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)
|
|
c.
|
Legal proceedings:
|
|
1.
|
Following the divestiture of one of the Company business units, the buyer of such business unit made certain demands and allegations, claiming indemnification pursuant to the sale agreement between the Company and such buyer. The parties corresponded regarding these claims, and the Company has denied all demands and allegations made by the buyer. If the parties fail to reach a negotiated resolution, the buyer may initiate legal proceedings against the Company to enforce its indemnification claims. If such buyer is successful in such proceedings, it will result in a reduction of the consideration under the sale agreement within the discontinued operation. At this preliminary stage the Company cannot estimate the probability of a favorable or unfavorable outcome in this dispute.
|
|
2.
|
From time to time the Company or its subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not believe it will have a material effect on its consolidated financial position, results of operations, or cash flows.
|
NOTE 12:-
|
TAXES ON INCOME
|
|
a.
|
Israeli taxation:
|
|
1.
|
Corporate tax:
|
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
2.
|
Foreign Exchange Regulations:
|
|
3.
|
Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969:
|
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
b.
|
Income taxes on non-Israeli subsidiaries:
|
|
c.
|
Net operating loss carryforward:
|
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
d.
|
Deferred tax assets and liabilities:
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Deferred tax assets:
|
||||||||
Net operating losses carryforward and tax credits
|
$ | 16,809 | $ | 19,351 | ||||
Share based payments
|
8,958 | 8,808 | ||||||
Research and development costs
|
3,562 | 11,939 | ||||||
Reserves, allowances and other
|
5,272 | 10,013 | ||||||
Deferred tax assets before valuation allowance
|
34,601 | 50,111 | ||||||
Valuation allowance
|
(7,347 | ) | (7,981 | ) | ||||
Deferred tax assets
|
27,254 | 42,130 | ||||||
Deferred tax liabilities:
|
||||||||
Acquired intangibles
|
(28,164 | ) | (37,453 | ) | ||||
Deferred tax assets (liabilities), net
|
$ | (910 | ) | $ | 4,677 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Long-term deferred tax assets
|
$ | 14,130 | $ | 18,853 | ||||
Long-term deferred tax liabilities
|
(15,040 | ) | (14,176 | ) | ||||
Deferred tax assets (liabilities), net
|
$ | (910 | ) | $ | 4,677 |
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
e.
|
A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows:
|
Year ended December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Income before taxes on income, as reported in the consolidated statements of income
|
$ | 171,410 | $ | 110,059 | $ | 79,386 | ||||||
Statutory tax rate in Israel
|
26.5 | % | 26.5 | % | 25 | % | ||||||
Approved, Privileged and Preferred Enterprise benefits *)
|
(6.1 | )% | (4.1 | )% | 11.8 | % | ||||||
Changes in valuation allowance
|
(0.4 | )% | (2.2 | )% | (1.0 | )% | ||||||
Earnings taxed under foreign law
|
(4.0 | )% | (4.8 | )% | (13.8 | )% | ||||||
Tax Settlements and other adjustments
|
1.1 | % | (7.0 | )% | 10.4 | % | ||||||
Other
|
0.9 | % | 0.6 | % | 1.5 | % | ||||||
Effective tax rate
|
18.0 | % | 9.0 | % | 33.9 | % |
|
*)
|
The effect of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status (including the expense related to the election to release previously tax-exempted earnings under the Order described in Note 12(a)(1) above) on net earnings per ordinary share is as follows:
|
Year ended December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Basic
|
$ | 0.18 | $ | 0.08 | $ | (0.16 | ) | |||||
Diluted
|
$ | 0.17 | $ | 0.07 | $ | (0.15 | ) |
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
f.
|
Income before taxes on income is comprised as follows:
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Domestic
|
$ | 122,952 | $ | 67,192 | $ | 53,270 | ||||||
Foreign
|
48,458 | 42,867 | 26,116 | |||||||||
$ | 171,410 | $ | 110,059 | $ | 79,386 |
|
g.
|
Taxes on income are comprised as follows:
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Current
|
$ | 23,978 | $ | 37,694 | $ | 44,200 | ||||||
Deferred
|
6,854 | (27,785 | ) | (17,285 | ) | |||||||
$ | 30,832 | $ | 9,909 | $ | 26,915 | |||||||
Domestic
|
$ | 24,812 | $ | 2,337 | $ | 29,410 | ||||||
Foreign
|
6,020 | 7,572 | (2,495 | ) | ||||||||
$ | 30,832 | $ | 9,909 | $ | 26,915 |
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Domestic taxes:
|
||||||||||||
Current
|
$ | 14,860 | $ | 16,351 | $ | 30,530 | ||||||
Deferred
|
9,952 | (14,014 | ) | (1,120 | ) | |||||||
$ | 24,812 | $ | 2,337 | $ | 29,410 | |||||||
Foreign taxes:
|
||||||||||||
Current
|
$ | 9,118 | $ | 21,343 | $ | 13,670 | ||||||
Deferred
|
(3,098 | ) | (13,771 | ) | (16,165 | ) | ||||||
$ | 6,020 | $ | 7,572 | $ | (2,495 | ) | ||||||
Taxes on income
|
$ | 30,832 | $ | 9,909 | $ | 26,915 |
NOTE 12:-
|
TAXES ON INCOME (Cont.)
|
|
h.
|
Uncertain tax positions:
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Uncertain tax positions, beginning of year
|
$ | 18,561 | $ | 33,158 | ||||
Increases in tax positions for prior years
|
110 | 2,521 | ||||||
Increases in tax positions for current year
|
5,085 | 5,277 | ||||||
Settlements
|
(2,173 | ) | (20,887 | ) | ||||
Expiry of the statute of limitations
|
(3,347 | ) | (1,508 | ) | ||||
Uncertain tax positions, end of year
|
$ | 18,236 | $ | 18,561 |
NOTE 13:-
|
SHAREHOLDERS' EQUITY
|
|
a.
|
The ordinary shares of the Company are traded on the Tel-Aviv Stock Exchange and its American Depositary Shares ("ADS's") are traded on NASDAQ.
|
|
b.
|
Share option plans:
|
NOTE 13:-
|
SHAREHOLDERS' EQUITY (Cont.)
|
2015
|
2014
|
2013
|
||||
Expected volatility
|
23.02%-27.55%
|
27.47%-28.08%
|
27.5%-30.0%
|
|||
Weighted average volatility
|
25.17%
|
27.72%
|
28.8%
|
|||
Risk free interest rate
|
0.76%-1.18%
|
0.8%-1.2%
|
0.4%-0.9%
|
|||
Expected dividend
|
0%-1.29%
|
0%-1.61%
|
0%-1.7%
|
|||
Expected term (in years)
|
3.5-3.5
|
3.4
|
3.3-3.4
|
NOTE 13:-
|
SHAREHOLDERS' EQUITY (Cont.)
|
Number of options
|
Weighted-average exercise price
|
Weighted- average remaining contractual term (in years)
|
Aggregate intrinsic
value
|
|||||||||||||
Outstanding at January 1, 2015
|
3,580,793 | 23.54 | 4.39 | 97,061 | ||||||||||||
Granted
|
865,801 | 28.47 | ||||||||||||||
Exercised
|
(1,108,649 | ) | 24.38 | |||||||||||||
Forfeited
|
(575,224 | ) | 23.19 | |||||||||||||
Cancelled
|
(11,137 | ) | 15.47 | |||||||||||||
Outstanding at December 31, 2015
|
2,751,584 | 24.59 | 4.19 | 90,058 | ||||||||||||
Exercisable at December 31, 2015
|
849,528 | 25.50 | 3.25 | 27,030 |
Weighted
|
||||||||||||||||||||||
Options
|
Weighted
|
Options
|
average
|
|||||||||||||||||||
outstanding
|
average
|
Weighted
|
exercisable
|
exercise
|
||||||||||||||||||
as of
|
remaining
|
average
|
as of
|
price of
|
||||||||||||||||||
Ranges of
|
December 31,
|
contractual
|
exercise
|
December 31,
|
options
|
|||||||||||||||||
exercise price
|
2015
|
term
|
price
|
2015
|
exercisable
|
|||||||||||||||||
(Years)
|
$
|
$
|
||||||||||||||||||||
$ | 0.26 | 1,080,208 | 4.42 | 0.26 | 237,165 | 0.26 | ||||||||||||||||
$ | 0.69 | 6,361 | 3.69 | 0.69 | 6,361 | 0.69 | ||||||||||||||||
$ | 4.24-6.00 | 3,381 | 0.48 | 5.16 | 3,381 | 5.16 | ||||||||||||||||
$ | 6.87-9.64 | 736 | 2.57 | 9.08 | 736 | 9.08 | ||||||||||||||||
$ | 10.69-15.96 | 14,422 | 2.98 | 16.61 | 14,422 | 13.61 | ||||||||||||||||
$ | 17.72-26.09 | 9,552 | 2.53 | 20.88 | 9,552 | 20.88 | ||||||||||||||||
$ | 28.21-40.32 | 1,188,524 | 3.63 | 36.72 | 562,911 | 35.88 | ||||||||||||||||
$ | 49.08-65.41 | 448,400 | 5.26 | 52.00 | 15,000 | 65.41 | ||||||||||||||||
2,751,584 | 4.19 | 24.59 | 849,528 | 25.50 |
NOTE 13:-
|
SHAREHOLDERS' EQUITY (Cont.)
|
Number of RSU & RSA*
|
||||
Outstanding at January 1, 2015
|
771,565 | |||
Issued
|
376,367 | |||
Vested
|
(300,030 | ) | ||
Forfeited
|
(94,697 | ) | ||
Outstanding at December 31, 2015
|
753,205 |
|
*)
|
NIS 1 par value which represents approximately $0.26
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Cost of revenues
|
$ | 3,712 | $ | 4,472 | $ | 4,421 | ||||||
Research and development, net
|
2,161 | 2,483 | 2,795 | |||||||||
Selling and marketing
|
11,266 | 12,361 | 9,383 | |||||||||
General and administrative
|
10,521 | 9,224 | 8,449 | |||||||||
Total stock-based compensation expenses
|
$ | 27,660 | $ | 28,540 | $ | 25,048 |
|
c.
|
Employee Stock Purchase Plan:
|
NOTE 13:-
|
SHAREHOLDERS' EQUITY (Cont.)
|
|
d.
|
Treasury shares:
|
|
e.
|
Dividends:
|
NOTE 14:-
|
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION
|
|
a.
|
Reportable segments:
|
Year ended December 31, 2015
|
||||||||||||||||
Customer Interactions Solutions (1)
|
Financial Crime and Compliance solutions
|
Not
allocated
|
Total
|
|||||||||||||
Revenues
|
$ | 688,060 | $ | 238,807 | $ | - | $ | 926,867 | ||||||||
Operating income
|
$ | 206,994 | $ | 73,131 | $ | (114,019 | ) | $ | 166,106 |
Year ended December 31, 2014
|
||||||||||||||||
Customer Interactions Solutions (1)
|
Financial Crime and Compliance solutions
|
Not
allocated
|
Total
|
|||||||||||||
Revenues
|
$ | 674,797 | $ | 197,198 | $ | - | $ | 871,995 | ||||||||
Operating income
|
$ | 151,051 | $ | 46,878 | $ | (91,635 | ) | $ | 106,294 |
Year ended December 31, 2013
|
||||||||||||||||
Customer Interactions Solutions (1)
|
Financial Crime and Compliance solutions
|
Not
allocated
|
Total
|
|||||||||||||
Revenues
|
$ | 658,467 | $ | 163,048 | $ | - | $ | 821,515 | ||||||||
Operating income
|
$ | 135,465 | $ | 29,449 | $ | (89,455 | ) | $ | 75,459 |
|
(1)
|
Includes the results of a certain operation which was formerly part of the Security Solutions segment which was retained following the above mentioned divestiture and integrated within the Customer Interactions Solutions.
|
NOTE 14:-
|
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Cont.)
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Customer Interactions Solutions
|
$ | 23,327 | $ | 24,183 | ||||
Financial Crime and Compliance Solutions
|
11,013 | 10,572 | ||||||
Non-allocated
|
4,873 | 5,415 | ||||||
$ | 39,213 | $ | 40,170 |
|
b.
|
Geographical information:
|
Year ended December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Americas, principally the US
|
$ | 630,096 | $ | 591,147 | $ | 540,449 | ||||||
EMEA *)
|
192,640 | 184,092 | 183,187 | |||||||||
Israel
|
4,231 | 5,092 | 5,089 | |||||||||
Asia Pacific
|
99,900 | 91,664 | 92,790 | |||||||||
$ | 926,867 | $ | 871,995 | $ | 821,515 |
December 31,
|
||||||||
2015
|
2014
|
|||||||
Americas, principally the US
|
$ | 10,385 | $ | 11,072 | ||||
EMEA *)
|
4,458 | 4,101 | ||||||
Israel
|
20,813 | 23,137 | ||||||
Asia Pacific
|
3,557 | 1,860 | ||||||
$ | 39,213 | $ | 40,170 |
|
*)
|
Includes Europe, the Middle East (excluding Israel) and Africa.
|
NOTE 15:-
|
SELECTED STATEMENTS OF INCOME DATA
|
|
a.
|
Research and development expenses, net:
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Total costs
|
$ | 132,039 | $ | 125,952 | $ | 117,939 | ||||||
Less - grants and participations
|
(2,174 | ) | (2,455 | ) | (2,063 | ) | ||||||
Less - capitalization of software development costs
|
(1,380 | ) | (356 | ) | (445 | ) | ||||||
$ | 128,485 | $ | 123,141 | $ | 115,431 |
|
b.
|
Restructuring expense:
|
|
c.
|
Financial income and other, net:
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Financial income:
|
||||||||||||
Interest and amortization/accretion of premium/discount on marketable securities
|
$ | 6,844 | $ | 5,268 | $ | 4,802 | ||||||
Realized gain on marketable securities
|
32 | 16 | - | |||||||||
Interest
|
430 | 349 | 1,505 | |||||||||
7,306 | 5,633 | 6,307 | ||||||||||
Financial expenses:
|
||||||||||||
Interest
|
(66 | ) | (73 | ) | (182 | ) | ||||||
Foreign currency translation
|
(731 | ) | (685 | ) | (822 | ) | ||||||
Other
|
(780 | ) | (1,107 | ) | (1,266 | ) | ||||||
(1,577 | ) | (1,865 | ) | (2,270 | ) | |||||||
Other expenses, net
|
(425 | ) | (3 | ) | (110 | ) | ||||||
$ | 5,304 | $ | 3,765 | $ | 3,927 |
NOTE 15:-
|
SELECTED STATEMENTS OF INCOME DATA (Cont.)
|
|
d.
|
Net earnings per share:
|
|
1.
|
Numerator:
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Net income from continuing operations available to ordinary shareholders
|
$ | 140,578 | $ | 100,150 | $ | 52,471 | ||||||
Net income from discontinued operations available to ordinary shareholders
|
118,253 | 2,925 | 2,804 | |||||||||
Net income to ordinary shareholders
|
$ | 258,831 | $ | 103,075 | $ | 55,275 |
|
2.
|
Denominator (in thousands):
|
Year ended
December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Denominator for basic net earnings per share -
|
||||||||||||
Weighted average number of shares
|
59,552 | 59,362 | 60,388 | |||||||||
Effect of dilutive securities:
|
||||||||||||
Add - employee stock options and RSU
|
1,729 | 1,533 | 1,442 | |||||||||
Denominator for diluted net earnings per share - adjusted weighted average shares
|
61,281 | 60,895 | 61,830 |
NOTE 16:-
|
SUBSEQUENT EVENTS
|
NICE-SYSTEMS LTD.
|
|||
By: |
/s/ Barak Eilam
|
||
Barak Eilam
|
|||
Chief Executive Officer
|
51.
|
Indemnity and Insurance
|
3.
|
Administration:
|
Name of Subsidiary
|
Country of Incorporation or Residence
|
|
Nice Systems Australia PTY Ltd.
|
Australia
|
|
NICE Systems Technologies Brasil LTDA
|
Brazil
|
|
NICE Systems Canada Ltd.
|
Canada
|
|
Nice Systems China Ltd.
|
China
|
|
Nice Systems S.A.R.L.
|
France
|
|
NICE Systems GmbH
|
Germany
|
|
NICE APAC Ltd.
|
Hong Kong
|
|
NICE Systems Kft
|
Hungary
|
|
Nice Interactive Solutions India Private Ltd.
|
India
|
|
Nice Technologies Ltd.
|
Ireland
|
|
Actimize Ltd.
|
Israel
|
|
Nice Japan Ltd.
|
Japan
|
|
NICE Technologies Mexico S.R.L.
|
Mexico
|
|
NICE Systems B.V.
|
Netherlands
|
|
Nice Systems (Singapore) Pte. Ltd.
|
Singapore
|
|
Nice Switzerland AG
|
Switzerland
|
|
Actimize UK Limited
|
United Kingdom
|
|
NICE Systems Technologies UK Limited
|
United Kingdom
|
|
NICE Systems UK Limited
|
United Kingdom
|
|
Actimize Inc.
|
United States
|
|
Nice Systems Inc.
|
United States
|
|
Nice Systems Latin America, Inc.
|
United States
|
|
Nice Systems Technologies Inc.
|
United States
|
|
1.
|
I have reviewed this annual report on Form 20-F of NICE-Systems Ltd.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
|
4.
|
The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the company and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.
|
By:
|
/s/ Barak Eilam
|
|
Barak Eilam
Chief Executive Officer
|
|
1.
|
I have reviewed this annual report on Form 20-F of NICE-Systems Ltd.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
|
4.
|
The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.
|
By:
|
/s/ Sarit Sagiv
|
|
Sarit Sagiv
Chief Financial Officer
|
By:
|
/s/ Barak Eilam
|
|
Barak Eilam
President and Chief Executive Officer
|
By:
|
/s/ Sarit Sagiv
|
|
Sarit Sagiv
Chief Financial Officer
|
/s/ KOST, FORER, GABBAY & KASIERER
|
|
KOST, FORER, GABBAY & KASIERER
A Member of Ernst & Young Global
|
Document and Entity Information |
12 Months Ended |
---|---|
Dec. 31, 2015
shares
| |
Document And Entity Information | |
Entity Registrant Name | NICE SYSTEMS LTD |
Entity Central Index Key | 0001003935 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer | Yes |
Is Entity a Voluntary Filer | No |
Is Entity's Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 59,526,506 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands |
Dec. 31, 2015
USD ($)
shares
|
Dec. 31, 2015
₪ / shares
|
Dec. 31, 2014
USD ($)
shares
|
Dec. 31, 2014
₪ / shares
|
---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||
Trade receivables, allowance for doubtful accounts | $ | $ 5,315 | $ 4,900 | ||
Ordinary shares, par value | ₪ / shares | ₪ 1 | ₪ 1 | ||
Ordinary shares, authorized | 125,000,000 | 125,000,000 | ||
Ordinary shares, issued | 71,158,401 | 69,749,722 | ||
Ordinary shares, outstanding | 59,526,506 | 59,252,342 | ||
Treasury shares | 11,633,783 | 10,499,268 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 258,831 | $ 103,075 | $ 55,275 |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation adjustment | (14,602) | (17,972) | 4,906 |
Available- for- sale investments: | |||
Change in net unrealized gains (losses) | (2,081) | 259 | $ (3,503) |
Less - reclassification adjustment for net gains realized and included in net income | (32) | (16) | |
Net change (net of tax effect of ($338), $117, and ($ 519)) | (2,113) | 243 | $ (3,503) |
Cash flow hedges: | |||
Change in unrealized gains | (954) | (6,770) | 985 |
Less - reclassification adjustment for net gains realized and included in net income | 4,010 | 1,552 | (2,181) |
Net change | 3,056 | (5,218) | (1,196) |
Total other comprehensive income (loss) | (13,659) | (22,947) | 207 |
Comprehensive income | $ 245,172 | $ 80,128 | $ 55,482 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Tax effect | $ (338) | $ 117 | $ (519) |
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Share capital [Member] |
Additional paid-in capital [Member] |
Treasury Stock [Member] |
Accumulated other comprehensive income (loss) [Member] |
Retained earnings [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2012 | $ 16,666 | $ 1,045,733 | $ (203,907) | $ 12,194 | $ 320,402 | $ 1,191,088 |
Issuance of shares of ESPP | 6 | 777 | 783 | |||
Exercise of share options | 523 | 38,395 | 38,918 | |||
Restricted shares vesting in respect of Merced acquisition | 17 | (17) | ||||
Stock-based compensation | 26,307 | 26,307 | ||||
Excess tax benefit from share-based payment arrangements | 1,172 | 1,172 | ||||
Treasury shares purchased | (79,944) | (79,944) | ||||
Other comprehensive income (loss) | 207 | 207 | ||||
Dividends paid | (29,010) | (29,010) | ||||
Net income | 55,275 | 55,275 | ||||
Balance at Dec. 31, 2013 | 17,212 | 1,112,367 | (283,851) | 12,401 | 346,667 | 1,204,796 |
Issuance of shares of ESPP | 3 | 433 | 436 | |||
Exercise of share options | 400 | 27,605 | 28,005 | |||
Stock-based compensation | 29,814 | 29,814 | ||||
Excess tax benefit from share-based payment arrangements | 1,205 | 1,205 | ||||
Treasury shares purchased | (92,786) | (92,786) | ||||
Other comprehensive income (loss) | (22,947) | (22,947) | ||||
Dividends paid | (38,142) | (38,142) | ||||
Net income | 103,075 | 103,075 | ||||
Balance at Dec. 31, 2014 | 17,615 | 1,171,424 | (376,637) | (10,546) | 411,600 | 1,213,456 |
Exercise of share options | 362 | 26,736 | 27,098 | |||
Stock-based compensation | 28,451 | 28,451 | ||||
Excess tax benefit from share-based payment arrangements | 7,595 | 7,595 | ||||
Treasury shares purchased | (68,384) | (68,384) | ||||
Other comprehensive income (loss) | (13,659) | (13,659) | ||||
Dividends paid | (38,239) | (38,239) | ||||
Net income | 258,831 | 258,831 | ||||
Balance at Dec. 31, 2015 | $ 17,977 | $ 1,234,206 | $ (445,021) | $ (24,205) | $ 632,192 | $ 1,415,149 |
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividend paid, per share | $ 0.16 | $ 0.64 | $ 0.64 | $ 0.48 |
GENERAL |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GENERAL [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GENERAL |
NICE is a leading global enterprise software provider that enables organizations to improve customer experience, drive business performance, ensure compliance and fight financial crime. The Company helps companies understand their customers and predict their needs, optimize their workforce to drive greater efficiency, and identify suspicious behaviour to prevent financial crime. The Company does this by capturing customer interactions and transactions across multiple channels and sources. The Company then applies best-in-class analytics to this data to provide real-time insight and uncover intent. The Company solutions allow organizations to operationalize this insight and embed it within their workflows and daily business processes.
The Company operates in two areas: Customer Interactions Solutions and Financial Crime and Compliance Solutions.
On August 12, 2013, the Company completed the acquisition of Causata Inc. ("Causata"), a provider of real-time Big Data analytics. The Company acquired Causata for total consideration of $22,666 comprised of $21,352 in cash and $1,314 representing the fair value of a potential earn out based on performance milestones amounting to a maximum additional payment of $2,000. The Company recorded technology, customer relationship, goodwill and deferred tax asset related to carryforward losses in amounts of $10,474, $2,001, $8,598 and $6,765, respectively. Technology and customer relationship are amortized over a period of 5 years.
During 2014, the Company has revalued the fair value of liability for earn out related to certain prior years acquisitions. As a result, an income of $4,002 was recorded within general and administrative expenses in the statement of income.
During 2015 and 2014, the Company didnt record any acquisition related costs. During 2013 acquisition related costs amounted to $508, and were included mainly in general and administrative expenses.
During 2015, the Company divested its Physical Security as well as its Cyber and Intelligence operations, which were a major part of the Security Solutions segment, to allow it to focus on its core markets as part of the execution of its long-term strategy.
On July 1, 2015 the Company completed the sale of the Cyber and Intelligence operation to Elbit Systems for a total consideration of $151,583, comprised of $111,583 in cash and $40,000 earn out based on future business performance.
The Cyber and Intelligence operation offers solutions which provide law enforcement agencies, intelligence organizations and signal intelligence agencies with tools for generating intelligence from communications.
The sale resulted in a capital gain of $101,847, which was presented as part of the net income on discontinued operations in the consolidated statements of income for the year ended December 31, 2015.
On September 18, 2015, the Company completed the sale of the Physical Security operation to Battery Ventures for a total consideration of $92,475, comprised of $74,551 in cash, note receivable of $2,924 and up to $15,000 earn out based on future business performance.
The Physical Security operation provides video surveillance technologies and capabilities to security-aware organizations.
The sale resulted in a gain of $45,487, which was presented as part of the net income on discontinued operations in the consolidated statements of income for the year ended December 31, 2015.
The carrying amount used in determining the gain on disposal of the operations included goodwill in the amount of $35,554. The amount of goodwill that was included in that carrying amount was based on the relative fair values of the disposed operations and the portion of the operation that was retained within the segment.
Following the sale, Physical Security's and Intelligence's results of operations and statement of financial position balances are disclosed as a discontinued operation, including the resulting gain from sales. All prior periods comparable results of operation, assets and liabilities have been retroactively included in discontinued operations.
The results of the discontinued operations including prior periods' comparable results, assets and liabilities which have been retroactively included in discontinued operations as separate line items in the statements of income and balance sheets are presented below:
*) Represent the results of the discontinued operations until their disposal.
Depreciation expense totaled $724, $1,058 and $1,244 for the years 2015, 2014 and 2013, respectively.
Amortization expense totaled $4,362, $1,804 and $2,799 for the years 2015, 2014 and 2013, respectively.
The major classes of assets and liabilities that were classified as discontinued operations were:
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SIGNIFICANT ACCOUNTING POLICIES |
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SIGNIFICANT ACCOUNTING POLICIES |
The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP").
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.
The currency of the primary economic environment in which the operations of NICE and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE and certain subsidiaries.
NICE and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate.
For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity.
Intercompany transactions and balances have been eliminated upon consolidation.
Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three months or less at acquisition.
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date.
Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income.
The Company's securities are reviewed for impairment in accordance with ASC 320-10-65. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in other comprehensive income (loss).
Inventories are stated at the lower of cost or market value. The cost of raw materials is determined by the "standard cost" method, and the cost of finished goods on the basis of costs charged by third party manufacturer. The cost of work-in-progress related to long-term contracts includes materials, subcontractors and other direct costs.
Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and discontinued products and for market prices lower than cost, if any. At the point of the loss recognition, a new lower cost basis for that inventory is established. In addition, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. Inventory write-downs for 2015, 2014 and 2013 were $1,896, $603 and $1,767, respectively, and have been included in cost of revenues.
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:
Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter.
Intangible assets are amortized over their estimated useful lives using the straight-line method, at the following weighted average annual rates:
The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends.
Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2015, 2014 and 2013, no impairment charge was recognized.
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other," ("ASC 350") goodwill is not amortized, but rather is subject to an annual impairment test.
ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value.
ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test.
The Company operates in operation-based segments, which also comprise its reporting units: Customer Interactions Solutions and Financial Crime and Compliance Solutions. During the fourth quarter of 2015 and 2014 the Company performed a qualitative assessment for its reporting units and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required.
During the fourth quarter of 2013 the Company performed qualitative assessment for the Customer Interactions Solutions reporting unit and concluded that the qualitative assessment did not result in a more likely than not indication of impairment. For the Financial Crime and Compliance Solutions reporting unit, the Company elected to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. The Company performed the first step of the quantitative goodwill impairment test and concluded that the fair value of the reporting unit exceeded its carrying value.
During the years 2015, 2014 and 2013, no impairment charge was recognized.
The Company generates revenues from sales of software products, services, which include support and maintenance, implementation, configuration, project management, consulting, training, hosting and SaaS, as well as hardware sales. The Company sells its products directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users.
The basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Revenues from sales of software products are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. In transactions where a customer's contractual terms include a provision for customer acceptance, revenues are recognized either when such acceptance has been obtained or as the acceptance provision has lapsed.
For multiple element arrangements within the scope of software revenue recognition guidance, revenues are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. Under the residual method, the Company defers revenue for the fair value of its undelivered elements and recognizes revenue for the remainder of the arrangement fee attributable to the elements initially delivered in the arrangement when the basic criteria in ASC 985-605 have been met. Any discount in the arrangement is allocated to the delivered element. Revenues from maintenance and professional services are recognized ratably over the contractual period and as services are performed, respectively.
For arrangements that contain both software and non-software components that function together to deliver the products' essential functionality, the Company allocates revenue to each element based on its relative selling price. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables. The selling price for a deliverable is based on its VSOE, if available, third party evidence ("TPE"), if VSOE is not available, or best estimated selling price ("BESP"), if neither VSOE nor TPE are available. The Company establishes VSOE of fair value using the price charged for a deliverable when sold separately. When VSOE cannot be established, the Company attempts to establish fair value of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company's go-to-market strategy differs from that of its peers and the Company's offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products' selling prices are on a standalone basis. Therefore, the Company is typically not able to determine TPE. The BESP price is established considering several external and internal factors including, but not limited to, historical sales, pricing practices and geographies in which the Company offers its products. The determination of the BESP is subject to discretion.
The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Establishment of VSOE of fair value of professional services is based on the price charged when these services are sold separately.
Revenues from fixed price contracts that require significant customization, integration and installation are recognized based on ASC 605-35, "Construction-Type and Production-Type Contracts", using the percentage-of-completion method of accounting based on the ratio of costs related to contract performance incurred to date to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact.
The Company also generates sales from SaaS offerings which provide its customers access to certain of its software within a cloud-based IT environment that the Company manages and offers to customers on a subscription basis. Revenues for the Company's SaaS offerings are recognized ratably over the contract term commencing with the date its service is made available to customers and all other revenue recognition criteria have been satisfied.
To assess the probability of collection for revenue recognition, the Company has a credit policy that determines the credit limit that reflects an amount that is deemed probably collectible for each customer. These credit limits are reviewed and revised periodically on the basis of new customer financial statements information, credit insurance data and payment performance.
The Company maintains a provision for product returns which is estimated based on the Company's past experience and is deducted from revenues. As of December 31, 2015 and 2014, the provision for product returns amounted to $3,281 and $1,990, respectively.
Deferred revenues and advances from customers include advances and payments received from customers, for which revenue has not yet been recognized.
Research and development costs (net of grants) incurred in the process of software production are charged to expenses as incurred. Certain software development costs are capitalized under ASC 985-20, Costs of Software to be Sold, Leased or Marketed, and under ASC350-40, Internal-Use Software.
Costs incurred to develop software to be sold are capitalized after technological feasibility is established. Based on the Company's product development process, technological feasibility is established upon completion of a detailed program design. During the years ended on December 31, 2015, 2014 and 2013 the Company capitalized costs incurred to develop software to be sold in the amounts of $0, $356 and $445, respectively.
For SaaS offerings within a cloud-based IT environment, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. During the years ended on December 31, 2015, 2014 and 2013 the Company capitalized costs related to SaaS offerings in the amounts of $1,380, $0 and $0 respectively.
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized.
The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement.
The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income.
Non-royalty bearing grants from the Government of Israel and the European Union for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses.
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts.
The Company's cash and cash equivalents are invested in deposits mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk.
The Company's trade receivables are derived from sales to customers located primarily in North America, EMEA and APAC. The Company performs ongoing credit evaluations of its customers and insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts is provided, based on the length of time the receivables are past due.
The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S government agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations.
The Company entered into forward contracts, and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10.
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual.
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies.
The Company's agreements with employees in Israel, who joined the Company since May 1, 2009, are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be instead of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid.
The Company also has other liabilities for severance pay in other jurisdictions.
Severance pay expense for 2015, 2014 and 2013 amounted to $8,936, $11,229 and $9,131, respectively.
The Company has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6% of their eligible compensation, but generally not greater than annual payment of $18 in 2015, $17.5 in 2014 and 2013 (for certain employees over 50 years of age the maximum annual contribution is $24 in 2015, and $23 per year in 2014 and 2013) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In the years 2015, 2014 and 2013, the Company recorded an expense for matching contributions in the amount of $4,310, $3,922 and $3,791, respectively.
Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share".
The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 561,621, 743,100 and 586,367 for the years 2015, 2014 and 2013, respectively.
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income.
The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures.
The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 13e.
The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant.
The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The hierarchy is broken down into three levels based on the inputs as follows:
The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3.
The Company's marketable securities and foreign currency derivative contracts are classified within Level 2 (see Notes 3 and 10).
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the short-term maturities of such instruments.
The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss.
Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2015, 2014 and 2013 were $7,986 $7,827 and $8,778, respectively.
The Company repurchases its ordinary shares from time to time on the open market or in other transactions and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity.
The Company accounts for comprehensive income in accordance with ASC No. 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available for sale marketable securities and changes in foreign currency translation adjustments.
The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2015 and 2014:
In April 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 states that only disposals representing strategic shifts in operations that have, or will have, a major effect on an entity's operations should be reported as discontinued operations when any of the following occurs: the component of an entity or group of components of an entity is classified as held for sale, the component of an entity or group of components of an entity is disposed of by sale, or the component of an entity or group of components of an entity is disposed of other than by sale. A strategic shift could include a disposal of (i) a separate major line of business, (ii) a separate major geographic area of operations, (iii) a major equity method investment, or (iv) other major parts of an entity. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014, which is effective for the Company for the year ended December 31, 2015. The Company has considered the sale of Cyber and Intelligence and Physical Security operations as a strategic shift and accordingly implemented this guidance on its consolidated financial position and results of operations.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 allows the Company to use either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which defers the effective date of ASU 2014-09 by one year to fiscal years beginning after December 15, 2017 (our fiscal year 2018), including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption of the update on its consolidated financial statements, implementing accounting system changes related to the adoption and considering additional disclosures requirements.
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective beginning in the first quarter of fiscal year 2018, though early adoption is permitted. The Company has early-adopted the ASU as of December 31, 2015 and its statement of financial position as of this date reflects the revised classification of current deferred tax assets and liabilities as noncurrent. There is no other impact on the Companys financial statements of early-adopting the ASU. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the 2014 balance sheet: a $20,958 decrease to current deferred tax assets, a $11,819 increase to noncurrent deferred tax asset, a $33 decrease to current deferred tax liability, and a decrease of $9,106 million to noncurrent deferred tax liability. |
SHORT-TERM AND LONG-TERM INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM AND LONG-TERM INVESTMENTS |
Short-term and long-term investments include marketable securities in the amount of $462,298 and $312,465 as of December 31, 2015 and 2014, respectively and short-term bank deposits in the amounts of $40,146 and $0 as of December 31, 2015 and 2014, respectively.
The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2015 and 2014:
The scheduled maturities of available-for-sale marketable securities as of December 31, 2015 were as follows:
Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2015 and 2014 were as indicated in the following tables:
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PREPAID EXPENSES AND OTHER CURRENT ASSETS |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expense and Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
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OTHER LONG-TERM ASSETS |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LONG-TERM ASSETS |
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PROPERTY AND EQUIPMENT, NET |
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Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, NET |
Depreciation expense totaled $15,575, $17,688 and $16,619 for the years 2015, 2014 and 2013, respectively.
The Company recorded a reduction of $9,615 and $2,211 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use for the years ended December 31, 2015 and 2014, respectively. |
OTHER INTANGIBLE ASSETS, NET |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INTANGIBLE ASSETS, NET |
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GOODWILL |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL |
Following the disposal of certain Security Solutions segment operations, as described on Note 1c, the changes in the carrying amount of goodwill allocated to reportable segments, for the years ended December 31, 2015 and 2014 are as follows:
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ACCRUED EXPENSES AND OTHER LIABILITIES |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES |
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DERIVATIVE INSTRUMENTS |
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General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS |
The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates.
ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the line item associated with the hedged transaction in the period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item representing the ineffective portion of the derivative, if any, is recognized in financial income (expense) in the period of change.
The Company entered into option contracts to hedge a portion of anticipated New Israeli Shekel ("NIS") payroll and benefit payments as well as facilities related payments. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured in fair value. These transactions are effective and, as a result, gain or loss on the derivative instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified as payroll expenses or finance expenses, respectively, at the time that the hedged income/expense is recorded.
The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2015, the Company expects to reclassify all of its unrealized gains and losses from accumulated other comprehensive income to earnings during the next twelve months.
The fair value of the Company's outstanding derivative instruments at December 31, 2015 and 2014 is summarized below:
The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2015, 2014 and 2013 is summarized below:
Derivative in foreign exchange cash flow hedging relationship:
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COMMITMENTS AND CONTINGENT LIABILITIES |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES |
The Company leases office space, office equipment and various motor vehicles under operating leases.
Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, were as follows:
Rent expenses for the years 2015, 2014 and 2013 were approximately $ 15,880, $ 18,594 and $ 18,218, respectively.
The minimum payment under these operating leases, upon cancellation of these lease agreements was $ 1,035 as of December 31, 2015.
Lease expenses for motor vehicles for the years 2015, 2014 and 2013 were $ 5,103, $ 3,774 and $ 3,959, respectively.
The Company is obligated under certain agreements with its suppliers to purchase goods and, under an agreement with its manufacturing subcontractor, to purchase projected inventory and excess inventory. Non-cancelable obligations, net of provisions, as of December 31, 2015, were $555. These obligations are expected to be fulfilled during 2015.
The Company is also obligated under certain agreements with its suppliers to purchase licenses and hosting services. These non-cancelable obligations as of December 31, 2015, were $18,148.
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TAXES ON INCOME |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TAXES ON INCOME |
Commencing 2012, NICE and its Israeli subsidiary elected the Preferred Enterprise regime to apply under the Law for the Encouragement of Capital Investment (the Investment Law). The Company's entire preferred income is subject to the tax rates as follows: 2013 12.5%, 2014 and thereafter - 16%. The election is irrevocable.
Income not eligible for Preferred Enterprise benefits is taxed at a regular rate, which was 26.5% in 2015 and 2014 and 25% for 2013. In January 2016, the Amendment of the Income Tax Ordinance (No. 216), 2016, was published and set the reduction of the corporate tax, starting in 2016 and onward, from 26.5% to 25%.
Prior to 2012, most of the Companys and its Israeli subsidiary's income was exempt from tax or subject to reduced tax rates under the Investment Law. Upon distribution of exempt income, the distributing company was subject to corporate reduced tax rates ordinarily applicable to such income under the Investment Law. Reduced income under the Investment Law including the Preferred Enterprise Regime will be freely distributable as dividends, subject to a 15%-20% withholding tax (or lower, under an applicable tax treaty). However, upon the distribution of a dividend from Preferred Income to an Israeli company, no withholding tax will be remitted.
Pursuant to a temporary tax relief initiated by the Israeli government, a company that elected by November 11, 2013 to pay a reduced corporate tax rate as set forth in the temporary tax relief with respect to undistributed exempt income generated under the Investment Law accumulated by the company until December 31, 2011 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 election did not require the actual distribution of these previously tax-exempted earnings.
In September 2013, the Company made the election and duly released all of NICE and its Israeli subsidiarys tax-exempted income through 2011 related to their various pre 2012 programs under the Investment Law. As a result of the election and the related settlement of a routine multi-year tax audit, the Company recorded an expense of $19,200 and paid an amount of approximately $32,000. The Company has also committed to make certain investments in "industrial projects" (as defined in the Law) no later than December 31, 2017. The Company believes that this commitment has already been fulfilled during 2013 as part of its existing investment plans. Further to the election, NICE no longer has a tax liability upon future distributions of its tax-exempted earnings, while the Israeli subsidiary has a tax liability upon future distributions only with respect to its 2012 tax-exempted earnings.
Under the Foreign Exchange Regulations, NICE and its Israeli subsidiary calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into New Israeli Shekels according to the exchange rate as of December 31st of each year.
NICE is an "Industrial Company" as defined by the above law and, as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of cost of purchased know-how and patents for tax purposes over 8 years.
Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. The Companys consolidated tax rate depends on the geographical mix of where its profits are earned. Primarily, the Companys U.S. subsidiaries are subject to federal and state income taxes of approximately 37% and its subsidiaries in the U.K. are subject to corporation tax at a rate of approximately 20%. Neither Israeli income taxes, foreign withholding taxes nor deferred income taxes were provided in relation to undistributed earnings of the Company's foreign subsidiaries. This is because the Company has the intent and ability to reinvest these earnings indefinitely in the foreign subsidiaries and therefore those earnings are continually redeployed in those jurisdictions. As of December 31, 2015, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $247,301 with a corresponding unrecognized deferred tax liability of $51,709. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes.
As of December 31, 2015, certain subsidiaries had tax loss carry-forwards totaling approximately $86,600 which can be carried forward and offset against taxable income with expiration dates ranging from 2016 and onwards. Approximately $67,300 of these carry-forward tax losses have no expiration date. The balance expires between 2016 and 2032.
Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses increasing taxes before utilization.
Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:
The Company has provided valuation allowances in respect of certain deferred tax assets resulting from tax loss carry forwards and other reserves and allowances due to uncertainty concerning realization of these deferred tax assets.
Of which:
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
All the Company's unrecognized tax benefits would, if recognized, reduce the Company's annual effective tax rate. The Company has further accrued $239 due to interest related to uncertain tax positions as of December 31, 2015.
During 2015, prior tax years in the US and the United Kingdom were closed by way of the expiration of the statute of limitations and settlements reached with those tax authorities through routine tax audits. The Israeli subsidiary is currently in the process of routine Israeli income tax audits for the tax years 2012 through 2013. As of December 31, 2015, the Company is still subject to further Israeli income tax audits for the tax years of 2013 through 2015, to U.S. federal income tax audits for the tax years of 2012 through 2015 and to other income tax audits for the tax years of 2010 through 2015. |
SHAREHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY |
In June 2008, the Company adopted the 2008 Share Incentive Plan ("the 2008 Plan"), to provide incentives to employees, directors, consultants and/or contractors by rewarding performance and encouraging behavior that will improve the Company's profitability. Under the 2008 Plan, the Company's employees, directors, consultants and/or contractors may be granted any equity-related award, including any type of an option to acquire the Company's ordinary shares and/or share appreciation right and/or share and/or restricted share and/or restricted share unit and/or other share unit and/or other share-based award and/or other right or benefit under the 2008 Plan (each an "Award").
Generally, under the terms of the 2008 Plan, 25% of an Award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. Specifically with respect to restricted share units and options granted with an exercise price equal to the nominal value of an ordinary share ("par value options"), unless determined otherwise by the Board of Directors, 25% of the restricted share units granted and par value options granted become vested on each of the four consecutive annual anniversaries following the date of grant. Awards with a vesting period expire six years after the date of grant. Pursuant to a resolution of the Company's Board of Directors dated February 4, 2014, options that are performance-based and are granted during calendar year 2014 and thereafter, shall expire seven years following the date of grant. The 2008 Plan provides that the maximum number of shares that may be subject to Awards granted under the 2008 Plan shall be an amount per calendar year, equal to 3.5% of the Company's issued and outstanding share capital as of December 31 of the preceding calendar year. Such amount is reset for each calendar year.
In December 2010, the Company amended the 2008 Plan, such that options are granted at an exercise price equal to the average of the closing prices of one ordinary share, as quoted on the NASDAQ market, during the 30 consecutive calendar days preceding the date of grant, unless determined otherwise by the administrator of the 2008 Plan (including in some cases par value options). Prior to the amendment of the 2008 Plan that occurred in 2010, the options to acquire ordinary shares were granted at an exercise price of not less than the fair market value of the ordinary shares on the date of the grant, subject to certain exceptions which could be determined by the Company's Board of Directors, including in some cases par value options. Further, when the Company distributes cash dividends, the exercise price for each option outstanding, for certain employees, prior to the distribution is reduced by an amount equal to the gross amount of the dividend per share distributed, provided that the exercise price shall not be reduced below the nominal value of the ordinary shares of the Company.
Pursuant to the terms of the acquisitions of Actimize Ltd., e-Glue Software Technologies Inc., Fizzback, Merced and Causata, the Company assumed or replaced unvested options, Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") and converted them or replaced them with NICE options, RSAs and RSUs, as applicable, based on an agreed exchange ratio. Each assumed or replaced option, RSA and RSU is subject to the same terms and conditions, including vesting, exercisability and expiration, as originally applied to any such option, RSA and RSU immediately prior to the acquisition.
The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2015, 2014 and 2013 was estimated using the following assumptions:
A summary of the Company's stock options activity and related information for the year ended December 31, 2015, is as follows:
The weighted-average grant-date fair value of options granted during the years 2015, 2014 and 2013 was $32.58, $19.69 and $18.24, respectively.
The total intrinsic value of options exercised during the years 2015, 2014 and 2013 was $40,519, $ 35,028 and $24,949, respectively.
The options outstanding under the Company's stock option plans as of December 31, 2015 have been separated into ranges of exercise price as follows:
A summary of the Company's Restricted Stock Awards ("RSA") and the Company's Restricted Stock Units ("RSU") activities and related information for the year ended December 31, 2015, is as follows:
As of December 31, 2015, there was approximately $50,227 of unrecognized compensation expense related to non-vested stock options and restricted stock awards, expected to be recognized up to four years.
The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2015, 2014 and 2013, was comprised as follows:
Under the Employee Stock Purchase Plan ("ESPP") Eligible employee were entitled to between 2% to 10% of their earnings being withheld (under certain limitations) for the purposes of purchasing ordinary shares. Under the ESPP, the price of ordinary shares purchased was equal to 95% of the fair market value of the ordinary shares. Pursuant to a resolution of the Company's Board of Directors, the Company's Employee Stock Purchase Plan has been terminated, and is no longer in effect as of January 1, 2014.
During 2014 and 2013, employees purchased 11,196 and 23,478 shares at average prices of $0, $38.91 and $33.36 per share, respectively.
On February 15, 2011, November 2, 2011, October 31, 2012 and February 4, 2014 the Company's Board of Directors authorized a program to repurchase up to $100,000 at each time (total of up to $400,000) of the Company's issued and outstanding ordinary shares and ADRs. Repurchases may be made from time to time in the open market or in privately negotiated transactions and will be in accordance with applicable securities laws and regulations. The timing and amount of the repurchase transactions will be determined by management and may depend on a variety of factors, including market conditions, alternative investment opportunities and other considerations. The programs do not obligate the Company to acquire any particular amount of ordinary shares and ADRs and the program may be modified or discontinued at any time without prior notice.
On February 13, 2013, the Company announced that the Board of Directors had approved a dividend policy under which the Company intended to pay quarterly cash dividends to holders of its ordinary shares and ADRs subject to declaration by the Board. Under Israeli law, dividends may be paid only out of total accumulated retained profits and other surplus (as defined in the law) as of the most recent financial statements or as accrued over a period of the last two years, whichever is higher, provided that there is no reasonable concern that the dividend distribution will prevent the Company from meeting its existing and foreseeable obligations as they come due. Dividends are generally declared and paid in U.S. dollars, although the Company may pay such dividends in Israeli currency.
The total amount of annual dividend declared and paid in 2015 and 2014 was $0.64 per share. Subsequent to the balance sheet date, the Company declared and paid an additional dividend of $0.16 per share in respect of the fourth quarter of 2015. |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION |
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Companys chief operating decision maker is its Chief Executive Officer.
During 2015, the Company divested its Physical Security as well as its Cyber and Intelligence operations, which were a major part of the Security Solutions segment, to allow it to focus on its core markets as part of the execution of its long-term strategy. Following this divestiture, the Company operates in the following operation-based segments: Customer Interactions Solutions provide data driven insights that enable businesses to deliver consistent and personalized experience to customers, and Financial Crime and Compliance Solutions provide real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management.
The following presents long-lived assets of December 31, 2015 and 2014, based on operational segments:
Total revenues from external customers on the basis of the Company's geographical areas are as follows:
The following presents long-lived assets of December 31, 2015 and 2014, based on geographical areas:
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SELECTED STATEMENTS OF INCOME DATA |
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Income Statement Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SELECTED STATEMENTS OF INCOME DATA |
During 2013 and 2014, the Company initiated restructuring plans to reduce its operating costs and improve profitability. The plan included restructuring of the Companys workforce in certain geographies and consolidation of facilities which resulted in restructuring charges in the amount of $527 and $5,435 in the years ended December 2013 and 2014, respectively.
The following table sets forth the computation of basic and diluted net earnings per share:
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SUBSEQUENT EVENTS |
12 Months Ended | ||
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Dec. 31, 2015 | |||
Subsequent Events [Abstract] | |||
SUBSEQUENT EVENTS |
On March 22, 2016, the Company completed the acquisition of Nexidia Inc., a leading provider of advanced customer analytics. The Company acquired Nexidia for total consideration of approximately $135.0 million in cash. The acquisition will allow the Company to offer a combined offering, featuring analytics capabilities with accuracy, scalability and performance, enabling organizations to expand their analytics usage in critical business use cases.
On March 11, 2016, NICE completed the acquisition of Voiceprint International, Inc., a provider of workforce optimization software and services for enterprises, contact centers, first responders and trading floors.
In accordance with the adoption of a dividend policy announced on February 13, 2013, as described on Note 13e, the Company announced on February 24, 2016 a declaration of a cash dividend of $0.16 per share for the fourth quarter of 2015 that was paid on March 9, 2016. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. |
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Financial statements in United States dollars |
The currency of the primary economic environment in which the operations of NICE and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE and certain subsidiaries.
NICE and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate.
For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. |
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Principles of consolidation |
Intercompany transactions and balances have been eliminated upon consolidation. |
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Cash equivalents |
Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three months or less at acquisition. |
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Marketable securities |
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date.
Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income.
The Company's securities are reviewed for impairment in accordance with ASC 320-10-65. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in other comprehensive income (loss). |
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Inventories |
Inventories are stated at the lower of cost or market value. The cost of raw materials is determined by the "standard cost" method, and the cost of finished goods on the basis of costs charged by third party manufacturer. The cost of work-in-progress related to long-term contracts includes materials, subcontractors and other direct costs.
Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and discontinued products and for market prices lower than cost, if any. At the point of the loss recognition, a new lower cost basis for that inventory is established. In addition, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. Inventory write-downs for 2015, 2014 and 2013 were $1,896, $603 and $1,767, respectively, and have been included in cost of revenues. |
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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:
Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. |
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Other intangible assets, net |
Intangible assets are amortized over their estimated useful lives using the straight-line method, at the following weighted average annual rates:
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Impairment of long-lived assets |
The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends.
Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2015, 2014 and 2013, no impairment charge was recognized. |
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Goodwill |
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other," ("ASC 350") goodwill is not amortized, but rather is subject to an annual impairment test.
ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value.
ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test.
The Company operates in operation-based segments, which also comprise its reporting units: Customer Interactions Solutions and Financial Crime and Compliance Solutions. During the fourth quarter of 2015 and 2014 the Company performed a qualitative assessment for its reporting units and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required.
During the fourth quarter of 2013 the Company performed qualitative assessment for the Customer Interactions Solutions reporting unit and concluded that the qualitative assessment did not result in a more likely than not indication of impairment. For the Financial Crime and Compliance Solutions reporting unit, the Company elected to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. The Company performed the first step of the quantitative goodwill impairment test and concluded that the fair value of the reporting unit exceeded its carrying value.
During the years 2015, 2014 and 2013, no impairment charge was recognized. |
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Revenue recognition |
The Company generates revenues from sales of software products, services, which include support and maintenance, implementation, configuration, project management, consulting, training, hosting and SaaS, as well as hardware sales. The Company sells its products directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users.
The basis for the Company's software revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, "Software-Revenue Recognition." Revenues from sales of software products are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable and collectability is probable. In transactions where a customer's contractual terms include a provision for customer acceptance, revenues are recognized either when such acceptance has been obtained or as the acceptance provision has lapsed.
For multiple element arrangements within the scope of software revenue recognition guidance, revenues are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. Under the residual method, the Company defers revenue for the fair value of its undelivered elements and recognizes revenue for the remainder of the arrangement fee attributable to the elements initially delivered in the arrangement when the basic criteria in ASC 985-605 have been met. Any discount in the arrangement is allocated to the delivered element. Revenues from maintenance and professional services are recognized ratably over the contractual period and as services are performed, respectively.
For arrangements that contain both software and non-software components that function together to deliver the products' essential functionality, the Company allocates revenue to each element based on its relative selling price. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables. The selling price for a deliverable is based on its VSOE, if available, third party evidence ("TPE"), if VSOE is not available, or best estimated selling price ("BESP"), if neither VSOE nor TPE are available. The Company establishes VSOE of fair value using the price charged for a deliverable when sold separately. When VSOE cannot be established, the Company attempts to establish fair value of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company's go-to-market strategy differs from that of its peers and the Company's offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products' selling prices are on a standalone basis. Therefore, the Company is typically not able to determine TPE. The BESP price is established considering several external and internal factors including, but not limited to, historical sales, pricing practices and geographies in which the Company offers its products. The determination of the BESP is subject to discretion.
The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Establishment of VSOE of fair value of professional services is based on the price charged when these services are sold separately.
Revenues from fixed price contracts that require significant customization, integration and installation are recognized based on ASC 605-35, "Construction-Type and Production-Type Contracts", using the percentage-of-completion method of accounting based on the ratio of costs related to contract performance incurred to date to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact.
The Company also generates sales from SaaS offerings which provide its customers access to certain of its software within a cloud-based IT environment that the Company manages and offers to customers on a subscription basis. Revenues for the Company's SaaS offerings are recognized ratably over the contract term commencing with the date its service is made available to customers and all other revenue recognition criteria have been satisfied.
To assess the probability of collection for revenue recognition, the Company has a credit policy that determines the credit limit that reflects an amount that is deemed probably collectible for each customer. These credit limits are reviewed and revised periodically on the basis of new customer financial statements information, credit insurance data and payment performance.
The Company maintains a provision for product returns which is estimated based on the Company's past experience and is deducted from revenues. As of December 31, 2015 and 2014, the provision for product returns amounted to $3,281 and $1,990, respectively.
Deferred revenues and advances from customers include advances and payments received from customers, for which revenue has not yet been recognized. |
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Research and development and software development costs |
Research and development costs (net of grants) incurred in the process of software production are charged to expenses as incurred. Certain software development costs are capitalized under ASC 985-20, Costs of Software to be Sold, Leased or Marketed, and under ASC350-40, Internal-Use Software.
Costs incurred to develop software to be sold are capitalized after technological feasibility is established. Based on the Company's product development process, technological feasibility is established upon completion of a detailed program design. During the years ended on December 31, 2015, 2014 and 2013 the Company capitalized costs incurred to develop software to be sold in the amounts of $0, $356 and $445, respectively.
For SaaS offerings within a cloud-based IT environment, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. During the years ended on December 31, 2015, 2014 and 2013 the Company capitalized costs related to SaaS offerings in the amounts of $1,380, $0 and $0 respectively. |
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Income taxes |
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized.
The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement.
The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. |
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Non-royalty grants |
Non-royalty bearing grants from the Government of Israel and the European Union for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. |
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Concentrations of credit risk |
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts.
The Company's cash and cash equivalents are invested in deposits mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk.
The Company's trade receivables are derived from sales to customers located primarily in North America, EMEA and APAC. The Company performs ongoing credit evaluations of its customers and insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts is provided, based on the length of time the receivables are past due.
The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S government agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations.
The Company entered into forward contracts, and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10.
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Severance pay |
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual.
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies.
The Company's agreements with employees in Israel, who joined the Company since May 1, 2009, are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be instead of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid.
The Company also has other liabilities for severance pay in other jurisdictions.
Severance pay expense for 2015, 2014 and 2013 amounted to $8,936, $11,229 and $9,131, respectively.
The Company has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6% of their eligible compensation, but generally not greater than annual payment of $18 in 2015, $17.5 in 2014 and 2013 (for certain employees over 50 years of age the maximum annual contribution is $24 in 2015, and $23 per year in 2014 and 2013) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6% of their eligible compensation. In the years 2015, 2014 and 2013, the Company recorded an expense for matching contributions in the amount of $4,310, $3,922 and $3,791, respectively.
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Basic and diluted net earnings per share |
Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share".
The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 561,621, 743,100 and 586,367 for the years 2015, 2014 and 2013, respectively. |
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Accounting for stock-based compensation |
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income.
The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures.
The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 13e.
The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. |
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Fair value of financial instruments |
The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The hierarchy is broken down into three levels based on the inputs as follows:
The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3.
The Company's marketable securities and foreign currency derivative contracts are classified within Level 2 (see Notes 3 and 10).
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term bank deposits, trade receivables and trade payables, approximate their fair value due to the short-term maturities of such instruments. |
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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. |
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Advertising expenses |
Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2015, 2014 and 2013 were $7,986 $7,827 and $8,778, respectively. |
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Treasury shares |
The Company repurchases its ordinary shares from time to time on the open market or in other transactions and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. |
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Comprehensive income |
The Company accounts for comprehensive income in accordance with ASC No. 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available for sale marketable securities and changes in foreign currency translation adjustments.
The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2015 and 2014:
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Recently issued accounting standards |
In April 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 states that only disposals representing strategic shifts in operations that have, or will have, a major effect on an entity's operations should be reported as discontinued operations when any of the following occurs: the component of an entity or group of components of an entity is classified as held for sale, the component of an entity or group of components of an entity is disposed of by sale, or the component of an entity or group of components of an entity is disposed of other than by sale. A strategic shift could include a disposal of (i) a separate major line of business, (ii) a separate major geographic area of operations, (iii) a major equity method investment, or (iv) other major parts of an entity. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014, which is effective for the Company for the year ended December 31, 2015. The Company has considered the sale of Cyber and Intelligence and Physical Security operations as a strategic shift and accordingly implemented this guidance on its consolidated financial position and results of operations.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 allows the Company to use either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which defers the effective date of ASU 2014-09 by one year to fiscal years beginning after December 15, 2017 (our fiscal year 2018), including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption of the update on its consolidated financial statements, implementing accounting system changes related to the adoption and considering additional disclosures requirements.
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective beginning in the first quarter of fiscal year 2018, though early adoption is permitted. The Company has early-adopted the ASU as of December 31, 2015 and its statement of financial position as of this date reflects the revised classification of current deferred tax assets and liabilities as noncurrent. There is no other impact on the Companys financial statements of early-adopting the ASU. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the 2014 balance sheet: a $20,958 decrease to current deferred tax assets, a $11,819 increase to noncurrent deferred tax asset, a $33 decrease to current deferred tax liability, and a decrease of $9,106 million to noncurrent deferred tax liability. |
GENERAL (Tables) |
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Schedule of discontinued operations |
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Schedule of assets and liabilities classified as discontinued operations |
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SIGNIFICANT ACCOUNTING POLICIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment Depreciation Rates |
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Schedule of Other Intangible Assets Depreciation Rates |
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Schedule of Accumulated Other Comprehensive Income, Net |
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SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities |
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Scheduled Maturities of Available-for-Sale Marketable Securities |
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Schedule of Unrealized Losses and Fair Values |
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expense and Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of prepaid expenses and other current assets |
|
OTHER LONG-TERM ASSETS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Long-Term Assets |
|
PROPERTY AND EQUIPMENT, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment |
|
OTHER INTANGIBLE ASSETS, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Definite-Lived Other Intangible Assets |
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Schedule of Estimated Amortization Expense |
|
GOODWILL (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill |
|
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Expenses and Other Liabilities |
|
DERIVATIVE INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional and Fair Value Amounts of Outstanding Derivative Instruments |
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Schedule of Fair Value of Derivative Instruments by Balance Sheet Location |
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Schedule of Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income |
.
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COMMITMENTS AND CONTINGENT LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases |
|
TAXES ON INCOME (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities |
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Schedule of Effective Income Tax Rate Reconciliation |
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Schedule of Income Before Income Tax, Domestic and Foreign |
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Schedule of Taxes on Income |
Of which:
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Schedule of Reconciliation of Unrecognized Tax Benefits |
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SHAREHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used to Determine Fair Value of Options Granted |
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Schedule of Stock Option Activity |
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Schedule of Options Outstanding by Exercise Price Range |
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Schedule of Restricted Stock Units Activity |
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Schedule of Allocated Share-Based Compensation Expense |
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REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information of The Company's Reportable Segments |
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Schedule of Long-Lived Assets by Operational Segments |
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Schedule of Total Revenues from External Customers by Geographical Areas |
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Schedule of Long-Lived Assets by Geographical Areas |
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SELECTED STATEMENTS OF INCOME DATA (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Statement Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Research and Development Costs, Net |
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Schedule of Financial Income and Other, Net |
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Schedule of Computation of Net Earnings Per Share |
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GENERAL (Schedule Of Results of the Discontinued Operations) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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GENERAL [Abstract] | |||
Revenue | $ 68,672 | $ 1,396,444 | $ 127,769 |
Cost of sales | 26,956 | 72,073 | 65,333 |
Operating expenses | 36,307 | 62,041 | 58,142 |
Operating income | 5,409 | 5,530 | $ 4,294 |
Other expenses, net | 284 | $ 565 | |
Gain on disposal of the discontinued operations | 147,334 | ||
Income before taxes on income | 152,459 | $ 4,965 | $ 4,294 |
Taxes on income | 34,206 | 2,040 | 1,490 |
Total net income on discontinued operations | $ 118,253 | $ 2,925 | $ 2,804 |
GENERAL (Schedule of Assets and Liabilities Discontinued Operations) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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GENERAL [Abstract] | ||
Trade receivables | $ 5,224 | $ 25,977 |
Prepaid expenses and other current assets | $ 3,893 | 7,159 |
Long Term Investments | 5,509 | |
Severance pay fund | 4,997 | |
Deferred taxes | 5,296 | |
Goodwill | 35,122 | |
Other classes of assets | $ 25 | 5,645 |
Total assets of discontinued operations | $ 9,142 | 89,705 |
Trade payables | 2,822 | |
Accrued expenses and other liabilities | $ 12,698 | 28,813 |
Deferred revenue | 22,722 | |
Accrued severance pay | 5,463 | |
Other classes of liabilities | $ 2,455 | 2,640 |
Total liabilities of discontinued operations | $ 15,153 | $ 62,460 |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation Rates) (Details) |
12 Months Ended |
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Dec. 31, 2015 | |
Computers and Peripheral Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 20.00% |
Computers and Peripheral Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment depreciation rate | 20.00% |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Intangible Assets Depreciation Rates) (Details) |
12 Months Ended |
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Dec. 31, 2015 | |
Core Technology [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 18.00% |
Customer Relationships and Distribution Network [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 13.00% |
Capitalized Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Other intangible assets amortization rate | 33.00% |
SHORT-TERM AND LONG-TERM INVESTMENTS (Scheduled Maturities of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due within one year | $ 58,998 | |
Amortized cost, due after one year through five years | 398,557 | |
Amortized cost, due after six years through ten years | 7,010 | |
Estimated fair value, due within one year | 59,049 | |
Estimated fair value, due after one year through five years | 396,436 | |
Estimated fair value, due after six years through ten years | 6,813 | |
Amortized cost, total | 464,565 | |
Estimated fair value, total | $ 462,298 | $ 312,465 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Schedule of Other Receivables and Prepaid Expenses) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Prepaid Expense and Other Assets [Abstract] | ||
Government authorities | $ 21,821 | $ 18,082 |
Interest receivable | 2,597 | 1,782 |
Prepaid expenses | 10,385 | 11,084 |
Inventories | 6,198 | 6,969 |
Other | 2,560 | 2,340 |
Prepaid expenses and other current assets | $ 43,561 | $ 40,257 |
OTHER LONG-TERM ASSETS (Schedule of Other Long-Term Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Other Assets, Noncurrent Disclosure [Abstract] | ||
Severance pay fund | $ 15,857 | $ 17,246 |
Long-term deposits | 1,318 | 1,675 |
Other long-term assets | $ 17,175 | $ 18,921 |
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | $ 155,969 | $ 149,430 | |
Accumulated depreciation | 116,756 | 109,260 | |
Depreciated cost | 39,213 | 40,170 | |
Depreciation expense | 15,575 | 17,688 | $ 16,619 |
Computers and Peripheral Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 118,326 | 109,266 | |
Accumulated depreciation | 95,056 | 86,794 | |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 8,537 | 11,355 | |
Accumulated depreciation | 6,372 | 8,684 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 29,106 | 28,809 | |
Accumulated depreciation | 15,328 | 13,782 | |
Equipment and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Reduction in costs | 9,615 | 9,615 | |
Reduction in accumulated depreciation | $ 2,211 | $ 2,211 |
OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 12,528 | $ 19,157 | $ 29,438 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 40,055 | 50,738 | $ 67,566 |
Reduction to original amounts of intangible assets | 0 | 0 | |
Reduction to accumulated amortization | $ 3,270 | $ 3,270 |
OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2016 | $ 31,494 |
2017 | 26,059 |
2018 | 7,309 |
2019 | 4,384 |
2020 | 336 |
Estimated amortization expense | $ 69,582 |
GOODWILL (Schedule of Goodwill) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
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Goodwill [Line Items] | ||
Beginning balance, as of January 1 | $ 659,657 | $ 670,166 |
Functional currency translation adjustments | (8,545) | (10,509) |
Ending balance, as of December 31 | 651,112 | 659,657 |
Customer Interactions Solutions [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 392,228 | 401,345 |
Functional currency translation adjustments | (7,420) | (9,117) |
Ending balance, as of December 31 | 384,808 | 392,228 |
Financial Crime And Compliance Solutions [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 267,429 | 268,821 |
Functional currency translation adjustments | (1,125) | (1,392) |
Ending balance, as of December 31 | $ 266,304 | $ 267,429 |
ACCRUED EXPENSES AND OTHER LIABILITIES (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 109,995 | $ 82,113 |
Accrued expenses | 61,958 | 46,872 |
Government authorities | 50,001 | 57,849 |
Other | 1,301 | 5,580 |
Accrued expenses and other liabilities | $ 223,255 | $ 192,414 |
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivative [Line Items] | ||
Notional amount | $ 115,018 | $ 108,287 |
Fair value | (565) | (4,114) |
Option Contracts To Hedge Payroll Expenses [Member] | Fair Value Inputs Level2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 110,000 | 102,450 |
Fair value | (566) | (4,133) |
Option Contracts to Hedge Facilities Expenses [Member] | Fair Value Inputs Level2 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 5,018 | 5,837 |
Fair value | $ 1 | $ 19 |
DERIVATIVE INSTRUMENTS (Schedule of Outstanding Derivative Instruments) (Details) - Foreign Exchange Option [Member] - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Other Receivables And Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Derivative assets | $ 1 | $ 19 |
Accrued Expenses And Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ (566) | $ (4,133) |
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Lease commitments: | |||
Rent expenses | $ 15,880 | $ 18,594 | $ 18,218 |
Minimum payment under operating leases upon cancellation | 1,035 | ||
Lease expense related to motor vehicles lease contracts | 5,103 | $ 3,774 | $ 3,959 |
Agreements With Suppliers To Purchase Goods [Member] | |||
Lease commitments: | |||
Non-cancelable obligations | 555 | ||
Agreements With Suppliers To Purchase Licenses And Hosting Services [Member] | |||
Lease commitments: | |||
Non-cancelable obligations | $ 18,148 |
COMMITMENTS AND CONTINGENT LIABILITIES (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 14,883 |
2017 | 12,438 |
2018 | 11,420 |
2019 | 9,034 |
2020 | 8,569 |
2021 and thereafter | 11,201 |
Operating leases, future minimum payments | $ 67,545 |
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Net operating losses carryforward and tax credits | $ 16,809 | $ 19,351 |
Share based payments | 8,958 | 8,808 |
Research and development costs | 3,562 | 11,939 |
Reserves, allowances and other | 5,272 | 10,013 |
Deferred tax assets before valuation allowance | 34,601 | 50,111 |
Valuation allowance | (7,347) | (7,981) |
Deferred tax assets | 27,254 | 42,130 |
Deferred tax liabilities: | ||
Acquired intangibles | (28,164) | (37,453) |
Deferred tax assets (liabilities), net | (910) | 4,677 |
Long-term deferred tax assets | 14,130 | 18,853 |
Long-term deferred tax liabilities | $ (15,040) | $ (14,176) |
TAXES ON INCOME (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Taxes on Income [Line Items] | |||||
Income before taxes on income, as reported in the consolidated statements of income | $ 171,410 | $ 110,059 | $ 79,386 | ||
Statutory tax rate in Israel | 26.50% | 26.50% | 25.00% | ||
Approved, Privileged and Preferred Enterprise benefits | [1] | (6.10%) | (4.10%) | 11.80% | |
Changes in valuation allowance | (0.40%) | (2.20%) | (1.00%) | ||
Earnings taxed under foreign law | (4.00%) | (4.80%) | (13.80%) | ||
Tax Settlements and other adjustments | 1.10% | (7.00%) | 10.40% | ||
Other | 0.90% | 0.60% | 1.50% | ||
Effective tax rate | 18.00% | 9.00% | 33.90% | ||
Basic | $ 4.35 | $ 1.74 | $ 0.92 | ||
Diluted | 4.22 | 1.69 | 0.89 | ||
Approved And Privileged Enterprise [Member] | |||||
Taxes on Income [Line Items] | |||||
Basic | 0.18 | 0.08 | (0.16) | ||
Diluted | $ 0.17 | $ 0.07 | $ (0.15) | ||
|
TAXES ON INCOME (Schedule of Income before Income Tax, Domestic And Foreign) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Taxes on Income [Line Items] | |||
Income before taxes on income | $ 171,410 | $ 110,059 | $ 79,386 |
Domestic Country [Member] | |||
Taxes on Income [Line Items] | |||
Income before taxes on income | 122,952 | 67,192 | 53,270 |
Foreign Country [Member] | |||
Taxes on Income [Line Items] | |||
Income before taxes on income | $ 48,458 | $ 42,867 | $ 26,116 |
TAXES ON INCOME (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Taxes on Income [Line Items] | ||||
Current | $ 23,978 | $ 37,694 | $ 44,200 | |
Deferred | 6,854 | (27,785) | (17,285) | |
Domestic | 24,812 | 2,337 | 29,410 | |
Foreign | 6,020 | 7,572 | (2,495) | |
Taxes on income | $ 19,200 | 30,832 | 9,909 | 26,915 |
Domestic Country [Member] | ||||
Taxes on Income [Line Items] | ||||
Current | 14,860 | 16,351 | 30,530 | |
Deferred | 9,952 | (14,014) | (1,120) | |
Taxes on income | 24,812 | 2,337 | 29,410 | |
Foreign Country [Member] | ||||
Taxes on Income [Line Items] | ||||
Current | 9,118 | 21,343 | 13,670 | |
Deferred | (3,098) | (13,771) | (16,165) | |
Taxes on income | $ 6,020 | $ 7,572 | $ (2,495) |
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||
Uncertain tax positions, beginning of year | $ 18,561 | $ 33,158 |
Increases in tax positions for prior years | 110 | 2,521 |
Increases in tax positions for current year | 5,085 | 5,277 |
Settlements | (2,173) | (20,887) |
Expiry of the statute of limitations | (3,347) | (1,508) |
Uncertain tax positions, end of year | $ 18,236 | $ 18,561 |
SHAREHOLDERS' EQUITY (Schedule of Option Fair Value Assumptions) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 23.02% | 27.47% | 27.50% |
Expected volatility, maximum | 27.55% | 28.08% | 30.00% |
Weighted average volatility | 25.17% | 27.72% | 28.80% |
Risk free interest rate, minimum | 0.76% | 0.80% | 0.40% |
Risk free interest rate, maximum | 1.18% | 1.20% | 0.90% |
Expected term (in years) | 3 years 4 months 24 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 3 years 6 months | 3 years 3 months 18 days | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend | 1.29% | 1.61% | 1.70% |
Expected term (in years) | 3 years 6 months | 3 years 4 months 24 days |
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Units Activity) (Details) - Restricted Stock Awards And Restricted Stock Units [Member] |
12 Months Ended |
---|---|
Dec. 31, 2015
shares
| |
Number of RSU and RSA | |
Outstanding at January 1, 2015 | 771,565 |
Issued | 376,367 |
Vested | (300,030) |
Forfeited | (94,697) |
Outstanding at December 31, 2015 | 753,205 |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Financial Information of The Company's Reportable Segments) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 926,867 | $ 871,995 | $ 821,515 |
Operating income (loss) | 166,106 | 106,294 | 75,459 |
Customer Interactions Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 688,060 | 674,797 | 658,467 |
Operating income (loss) | 206,994 | 15,105 | 135,465 |
Financial Crime And Compliance Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 238,807 | 197,198 | 163,048 |
Operating income (loss) | $ 73,131 | $ 46,878 | $ 29,449 |
Not Allocated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Operating income (loss) | $ (114,019) | $ (91,635) | $ (89,455) |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 39,213 | $ 40,170 |
Customer Interactions Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 23,327 | 24,183 |
Financial Crime And Compliance Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 11,013 | 10,572 |
Not Allocated [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 4,873 | $ 5,415 |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Total Revenues from External Customers by Geographical Areas) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 926,867 | $ 871,995 | $ 821,515 | ||
UNITED STATES | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 630,096 | 591,147 | 540,449 | ||
EMEA [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 192,640 | 184,092 | 183,187 | |
ISRAEL | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 4,231 | 5,092 | 5,089 | ||
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 99,900 | $ 91,664 | $ 92,790 | ||
|
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets by Geographical Areas) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
||
---|---|---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | $ 39,213 | $ 40,170 | ||
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | 10,385 | 11,072 | ||
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | [1] | 4,458 | 4,101 | |
ISRAEL | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | 20,813 | 23,137 | ||
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | $ 3,557 | $ 1,860 | ||
|
SELECTED STATEMENTS OF INCOME DATA (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement Related Disclosures [Abstract] | |||
Restructuring charges | $ 5,435 | $ 527 |
SELECTED STATEMENTS OF INCOME DATA (Schedule of Research and Development Costs, Net) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement Related Disclosures [Abstract] | |||
Total costs | $ 132,039 | $ 125,952 | $ 117,939 |
Less - grants and participations | (2,174) | (2,455) | (2,063) |
Less - capitalization of software development costs | (1,380) | (356) | (445) |
Research and development, net | $ 128,485 | $ 123,141 | $ 115,431 |
SELECTED STATEMENTS OF INCOME DATA (Schedule of Financial Income and Other, Net) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement Related Disclosures [Abstract] | |||
Interest and amortization/accretion of premium/discount on marketable securities | $ 6,844 | $ 5,268 | $ 4,802 |
Realized gain on marketable securities | 32 | 16 | |
Interest | 430 | 349 | $ 1,505 |
Financial income, net | 7,306 | 5,633 | 6,307 |
Interest | (66) | (73) | (182) |
Foreign currency translation | (731) | (685) | (822) |
Other | (780) | (1,107) | (1,266) |
Financial expenses, net | (1,577) | (1,865) | (2,270) |
Other income (expenses), net | (425) | (3) | (110) |
Financial income and other, net | $ 5,304 | $ 3,765 | $ 3,927 |
SELECTED STATEMENTS OF INCOME DATA (Schedule of Net Earnings Per Share) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement Related Disclosures [Abstract] | |||
Net income from continuing operations available to ordinary shareholders | $ 140,578 | $ 100,150 | $ 52,471 |
Net income from discontinued operations available to ordinary shareholders | 118,253 | 2,925 | 2,804 |
Numerator - Net income available to ordinary shareholders | $ 258,831 | $ 103,075 | $ 55,275 |
Denominator for basic net earnings per share - Weighted average number of shares | 59,552 | 59,362 | 60,388 |
Add-employee stock options and RSU | 1,729 | 1,533 | 1,442 |
Denominator for diluted net earnings per share - adjusted weighted average shares | 61,281 | 60,895 | 61,830 |
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 09, 2016 |
Mar. 22, 2016 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Subsequent Event [Line Items] | ||||||
Dividend paid, per share | $ 0.16 | $ 0.64 | $ 0.64 | $ 0.48 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend paid, per share | $ 0.16 | |||||
Subsequent Event [Member] | Nexidia [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition amount | $ 135,000 |
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