Note 6 - Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 6: - COMMITMENTS AND CONTINGENT LIABILITIES

a. Liens:

The Company has several liens granted to financial institutions mainly to secure various operating lease agreements in connection with its office space.

b. Lease Commitments:

The Company rents its facilities in all locations under operating leases with lease periods expiring from

2016

-

2026.

The lease agreements of VSL include extension options. VSL leases cars for its employees under operating lease agreements expiring at various dates from

2017

-

2019.

Aggregate minimum rental commitments under non-cancelable leases as of

December

 

31,

2016

for the upcoming years were as follows:

	Payments Due By Period
2017	$	4,703
2018		4,355
2019		4,423
2020		3,456
2021		3,466
Thereafter		13,035
	$	33,438

Total rent expenses for the years ended

December

 

31,

2016,

 

2015

and

2014

were

$3,258,

$4,296

and

$2,986,

respectively. The total minimum rent to be received in the future under the non-cancelable sublease as of

December

31,

2016

was

$1,509.

For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date of possession of the property to the end of the initial lease term. The Company records any differences between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain leases

(“tenant

allowances”) are recognized on a straight-line basis as a reduction to rent from the date of possession of the property through the end of the initial lease term. The Company records the unamortized portion of

tenant

allowances as a part of deferred rent, in current liabilities or other long-term liabilities, as appropriate. At

December

 

31,

2016

and

2015,

deferred rent included

$624

and

$514,

respectively, in current liabilities in the Company’s consolidated balance sheets, and deferred rent included

$5,377

and

$5,366,

respectively, in long-term liabilities in the Company’s consolidated balance sheets.

On

March

 

31,

2014,

the Company entered into a promissory note and related security documents with Bank Leumi USA. The Company

may

borrow up to

$7,000

against certain of its accounts receivable outstanding amount, based on several conditions, at an annual interest rate of the Wall Street Journal Prime Rate less

0.15%.

As of

December

 

31,

2016,

that rate amounted to

3.60%.

This promissory note enables the Company,

among other things,

to engage in foreign currency hedging transactions with Bank Leumi USA to manage exposure to foreign currency risk without restricted cash requirements. The Company

may

borrow under the promissory note until

May

 

15,

2017

at which time the principal sum of each such loan, together with accrued and unpaid interest payable, will become due and payable. As of

December

 

31,

2016,

the Company had

no

balance outstanding under the promissory note. As part of the transaction, the Company granted the lender a security interest in its personal property, excluding intellectual property and other intangible assets. The promissory note also contains customary events of default.