Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Deferred Income Taxes

e. Deferred income taxes

Provided in respect of the following:

	December 31
	2017			2016
	$ in thousands
Deferred tax assets:
Carryforward tax losses		32,085			51,883
Research and development costs		9,601			4,518
Employee related benefits		6,746			3,631
Other		6,658			3,130
Deferred tax assets before valuation allowance		55,090			63,162
Valuation allowance*		(10,257	)		(43,422	)
Deferred tax assets		44,833			19,741
Deferred tax liabilities:
Undistributed earnings of subsidiaries		(5,847	)		(3,394	)
Intangible assets		(10,365	)		(10,899	)
Deferred tax liabilities		(16,212	)		(14,293	)
Deferred tax assets, net		28,621			5,448

Summary of Deferred Tax Assets and Liabilities

	December 31
	2017			2016
	$ in thousands
Deferred tax assets		43,157			19,840
Deferred tax liabilities		(14,536	)		(14,392	)
Deferred tax assets, net		28,621			5,448

Changes in Valuation Allowance

* The changes in the valuation allowance are comprised as follows:

	Year ended December 31
	2017			2016			2015
	$ in thousands
Balance at beginning of year		43,422			50,325			45,694
Additions (reductions) during the year		(33,165	)		(6,904	)		4,631
Balance at end of year		10,257			43,422			50,325

Taxes on Income Included in Statements of Operations

f. Taxes on income included in the statements of operations

As follows:

	Year ended December 31
	2017			2016			2015
	$ in thousands
Current:
Israeli		13,080			485			(66	)
Non-Israeli		20,541			18,545			15,898
		33,621			19,030			15,832
Deferred:
Israeli		(10,867	)		2,993			596
Non-Israeli		(21,666	)		(5,715	)		(2,640	)
		(32,533	)		(2,722	)		(2,044	)
Total taxes on incomes		1,088			16,308			13,788

Reconciliation of Theoretical Provision for Income Tax

Following is a reconciliation of the theoretical provision for income tax, assuming all income is taxed at the statutory corporate tax rate applicable to Israeli corporations, and the actual tax on income:

	Year ended December 31
	2017			2016			2015
	$ in thousands
Income before taxes on income		131,975			95,903			71,119
Statutory tax rate in Israel		24	%		25	%		26.5	%
Theoretical provision for income taxes on the above amount		31,674			23,976			18,847
Increase (decrease) in taxes resulting from:
Effect of Benefited, Approved and Preferred Enterprise benefits		(12,020	)		1,332			1,196
Effect of different tax rates applicable in foreign jurisdictions		(7,958	)		(8,524	)		(5,641	)
Permanent differences		102			1,244			(305	)
Net change in tax reserves		16,473			635			(4,564)
Losses carry forward incurred (utilized) for which a valuation allowance was provided		(8,476	)		(2,808	)		4,631
Reduction of valuation allowance as a result of remeasurement		(18,778	)
Other		71			453			(376	)
Actual taxes on income		1,088			16,308			13,788

Summary of Income Before Taxes on Income

g. Income before taxes on income

As follows:

	Year ended December 31
	2017		2016		2015
	$ in thousands
Israeli		1,669		8,603		77
Non-Israeli		130,306		87,300		71,042
		131,975		95,903		71,119

Roll-forward of Total Amounts of Company's Unrecognized Tax Benefits

Following is a roll-forward of the total amounts of the Company’s unrecognized tax benefits at the beginning and the end of the years ended on December 31, 2017, 2016 and 2015 (excluding interest and penalties):

	Year ended December 31
	2017			2016			2015
	$ in thousands
Balance at beginning of year		14,954			14,404			18,687
Increases in unrecognized tax benefits as a result of tax positions taken during the year		14,462			375			1,478
Increase in unrecognized tax benefits as a result of tax positions taken during prior years		6,455			547			974
Decreases in unrecognized tax benefits as a result of statute of limitations expirations and tax audits		(4,882	)		(372	)		(6,735	)
Balance at end of year (*)(**)		30,989			14,954			14,404

(*) Of which approximately $2.9 at December 31, 2017, $6.3 million at December 31, 2016 and $0.1 million at December 31, 2015 are classified as short-term liabilities.

(**) As of December 31, 2017, 2016 and 2015, unrecognized tax benefit in an amounts of approximately $6.5 million, $1.2 million and $1.0 million, respectively were presented net from deferred tax asset.