SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 10:-        SHAREHOLDERS' EQUITY

The Company's shares are listed for trade on the NASDAQ National Market under the symbol "RDWR".

a. Rights of shares:

Ordinary Shares:

The Ordinary Shares confer upon the holders the right to receive notice to participate and vote in shareholders meetings of the Company and to receive dividend, if declared.

b. Treasury stock:

In April 2014 the Company's Board of Directors authorized the repurchase of up to an aggregate of $ 40,000 of the Company's Ordinary Shares in the open market, subject to normal trading restrictions or in privately negotiated transactions. The plan expired on April 28, 2015. In April 2015, the Company’s Board of Directors authorized a new plan for the repurchase of up to an aggregate amount of $ 40,000 of the Company’s Ordinary Shares in the open market, subject to normal trading restrictions, or in privately negotiated transactions. This plan will expire on April 30, 2016. During 2014 and 2015 the Company purchased a total of 887,855 and 2,824,772 of its Ordinary Shares for total consideration of $ 15,169 and $ 52,896, respectively. Total consideration for the purchase of these Ordinary Shares was recorded as Treasury stock, at cost, as part of shareholders' equity.

c. Dividends:

Dividends, if any, will be paid in NIS. Dividends paid to shareholders outside Israel may be converted to U.S. dollars on the basis of the exchange rate prevailing at the date of the conversion. The Company does not intend to pay cash dividends in the foreseeable future.

d. Stock Option Plans:

The Company has two stock option plans, the Company's Key Employee Share Incentive Plan (1997) as amended and restated and the Directors and Consultants Option Plan ("the Stock Option Plans"). Under the Stock Option Plans, options may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The exercise price per share under the Stock Option Plans was generally not less than the market price of an Ordinary Share at the date of grant. The options expire 5.2 years from the grant date. The options vest primarily over four years. Each option is exercisable for one Ordinary Share. Any options, which are forfeited or not exercised before expiration, become available for future grants.

Pursuant to the Stock Option Plans, the Company reserved for issuance 26,301,748 Ordinary Shares. As of December 31, 2015, an aggregate of 466,926 Ordinary Shares of the Company were still available for future grants.

On February 1, 2010, the Company's Board of Directors adopted an additional addendum to the share option plan allowing the allocation of short-term options to grantees who are not residents of Israel or the United States, with a grant price of 90% of the closing market price of the shares on the NASDAQ on the date of grant of a respective option award. As of December 31, 2015, 1,000,000 Ordinary Shares have been reserved for option grants under this addendum. As of December 31, 2015, an aggregate of 763,306 Ordinary Shares of the Company, under this addendum, were still available for future grants.

Restricted Shares Units ("RSUs"):

In addition to granting stock options, since 2013, the Company started to routinely grant Restricted Stock Units ("RSUs") under the 1997 Plan. RSUs vest primarily over a four years period of employment. RSUs that are cancelled or forfeited become available for future grants.

Employee Stock Purchase Plan ("ESPP"):

On February 1, 2010 the Company's Board of Directors adopted the 2010 Employee Share Purchase Plan ("ESPP"), which provides for the issuance of a maximum of 2,000,000 Ordinary Shares. Pursuant to the ESPP, eligible employees (including only Israeli and United States residents) could have up to 10% of their net income withheld, up to certain maximums, to be used to purchase the Company's Ordinary Shares. The ESPP is implemented with overlapping one year Offering Periods, each one consisting of two purchases, once in every six-month period. The price of each Ordinary Share purchased under the ESPP is equal to 90% of the closing price for the shares on the respective Offering Date.

As of December 31, 2015, 1,744,440 Ordinary Shares are available for issuance under future ESPP. During 2015 and 2014, there was no offering under the ESPP.

A summary of employees and directors option activity under the Company's Stock Option Plans as of December 31, 2015 is as follows:

	Number of options			Weighted-average exercise price		Weighted- average remaining contractual term  (in years)		Aggregate intrinsic value
Outstanding at January 1, 2015		4,702,920			15.54		3.22		30,474
Granted		1,562,000			18.96
Exercised		(600,393	)		14.57
Expired		(160,000	)		16.92
Forfeited		(302,866	)		17.76
Outstanding at December 31, 2015		5,201,661			16.51		3.06		2,748
Exercisable at December 31, 2015		1,791,130			15.32		1.91		1,578
Vested and expected to vest at December 31, 2015		4,878,629			16.44		2.99		2,655

The aggregate intrinsic value of options outstanding at December 31, 2015, represents intrinsic value of 2,581,163 outstanding options that are in-the-money as of December 31, 2015.

The aggregate intrinsic value of options exercisable at December 31, 2015 represents intrinsic value of 1,035,702 outstanding options that are in-the-money as of December 31, 2015.

The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2014 and 2015 was $ 5.02, $ 5.42 and $ 5.29, respectively.

As of December 31, 2015, there was approximately $ 9,866 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.60 years. Total grant-date fair value of vested options for the year ended December 31, 2015 was approximately $ 9,696.

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:

Outstanding							Exercisable
			Weighted
			average		Weighted				Weighted
Ranges of			remaining		average				average
exercise	Number of		contractual		exercise		Number of		exercise
price	options		life (years)		price		options		price
$12.18-14.74		1,861,208		2.98		13.91		863,792		13.56
$15.09-19.30		2,557,703		2.67		16.69		927,338		16.96
$20.62-23.66		782,750		4.53		22.10		-		-
		5,201,661						1,791,130

The following table summarizes information relating to RSUs, as well as changes to such awards during 2015:

	Year ended December 31,
	2015
	Number in thousands
Outstanding at January 1, 2015		462,354
Granted		536,395
Vested		(76,729	)
Forfeited		(103,656	)
Outstanding as of December 31, 2015		818,364

As of December 31, 2015, there was approximately $ 10,600 of total unrecognized compensation costs related to non-vested RSUs granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.75 years.

The weighted-average grant date fair value of RSUs granted during the year ended December 31, 2015 was $ 18.36.

Stock-based compensation was recorded in the following items within the consolidated statements of income:

	Year ended December 31,
	2013		2014		2015
Cost of sales	$	53	$	79	$	141
Research and development		1,562		1,421		2,456
Selling and marketing		2,552		2,950		4,098
General and administrative		1,207		2,932		2,634
Total expenses	$	5,374	$	7,382	$	9,329