Note 6 - Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2017

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

2018

-

2026.

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

2018

-

2020.

Aggregate minimum rental commitments under non-cancelable leases as of

December 

31,

2017

for the upcoming years were as follows:

	Payments Due By Period
2018	$	6,418
2019		5,561
2020		4,335
2021		4,561
2022		4,587
Thereafter		21,063
	$	46,525

Total rent expenses for the years ended

December 

31,

2017,

 

2016

and

2015

were

$4,075,

$3,258

and

$4,296,

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

December 31, 2017

was

$732.

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. As of

December 

31,

2017

and

2016,

deferred rent included

$941

and

$624,

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

$4,780

and

$5,377,

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%,

provided that the annual interest rate applicable to advances will

not

be lower than

4.10%.

As of

December 

31,

2017,

that rate amounted to

4.35%.

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

August 15, 2018

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,

2017,

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.