SELECTED STATEMENTS OF INCOME DATA

12 Months Ended

Dec. 31, 2019

a.Research and development, net:


	Year Ended December 31,
	2019		2018		2017
Total costs	$	232,118	$	218,226	$	211,406
Less - grants and participations	(2,556)		(2,171)		(2,363)
Less - capitalization of software development costs	(35,844)		(32,225)		(27,936)

	$	193,718	$	183,830	$	181,107

b.Financial expenses and other, net:


	Year Ended December 31,
	2019		2018		2017
Financial income:
Interest and amortization/accretion of premium/discount on marketable securities, net	$	16,678	$	7,521	$	2,537
Exchange rates differences	—		—		241
Realized gain on marketable securities	—		—		—
Interest	3,855		3,778		1,149

	20,533		11,299		3,927
Financial expenses:
Interest	(11,683)		(11,204)		(9,580)
Debt issuance costs amortization	(2,083)		(1,813)		(6,943)
Exchangeable Senior Notes amortization of discount	(7,153)		(6,855)		(6,278)
Exchange rates differences	(1,832)		(430)		—
Other	(2,186)		(1,936)		(1,518)

	(24,937)		(22,238)		(24,319)

Other expenses, net	(40)		38		(19)

	$	(4,444)	$	(10,901)	$	(20,411)

c.Net earnings per share:

The following table sets forth the computation of basic and diluted net earnings per share:

1.Numerator:


	Year Ended December 31,
	2019		2018		2017
Net income to ordinary shareholders	$	185,904	$	159,338	$	143,291

2.Denominator (in thousands):


	Year Ended December 31,
	2019		2018		2017
Denominator for basic net earnings per share:
Weighted average number of shares	62,120		61,387		60,444
Effect of dilutive securities:
Add - employee stock options and RSU	1,682		1,785		1,675
Warrants issued in the exchangeable notes transaction	859		137		—

Denominator for diluted net earnings per share - adjusted weighted average shares	$	64,661	$	63,309	$	62,119