Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 0-27466 |
Entity Registrant Name | NICE LTD. |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 13 Zarchin Street |
Entity Address, Address Line Two | P.O. Box 690 |
Entity Address, City or Town | Ra’anana |
Entity Address, Postal Zip Code | 4310602 |
Entity Address, Country | IL |
Title of 12(b) Security | American Depositary Shares, each representingone Ordinary Share, par value oneNew Israeli Shekel per share |
Trading Symbol | NICE |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 62,398,221 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001003935 |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Current Fiscal Year End Date | --12-31 |
Business Contact [Member] | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 13 Zarchin Street |
Entity Address, Address Line Two | P.O. Box 690 |
Entity Address, City or Town | Ra’anana |
Entity Address, Postal Zip Code | 4310602 |
Entity Address, Country | IL |
Contact Personnel Name | Tali Mirsky |
City Area Code | 972 |
Local Phone Number | 9-7753151 |
Contact Personnel Email Address | tali.mirsky@nice.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 228,323 | $ 242,099 |
Short-term investments | 210,772 | 243,729 |
Trade receivables (net of allowance for doubtful accounts of $ 9,815 and $ 8,464 at December 31, 2019 and 2018, respectively) | 319,622 | 287,963 |
Prepaid expenses and other current assets | 116,972 | 87,450 |
Total current assets | 875,689 | 861,241 |
LONG-TERM ASSETS | ||
Long-term investments | 542,389 | 244,998 |
Other long-term assets | 124,034 | 74,042 |
Property and equipment, net | 141,647 | 140,338 |
Deferred tax assets | 30,513 | 12,309 |
Operating lease right-of-use assets | 106,196 | |
Other intangible assets, net | 411,019 | 508,232 |
Goodwill | 1,378,418 | 1,366,206 |
Total long-term assets | 2,734,216 | 2,346,125 |
Total assets | 3,609,905 | 3,207,366 |
CURRENT LIABILITIES | ||
Trade payables | 30,376 | 29,617 |
Deferred revenues and advances from customers | 245,792 | 221,387 |
Current maturities of operating leases | 21,519 | |
Exchangeable senior notes | 251,583 | 0 |
Accrued expenses and other liabilities | 391,685 | 373,908 |
Total current liabilities | 940,955 | 624,912 |
LONG-TERM LIABILITIES | ||
Deferred revenues and advances from customers | 26,045 | 35,112 |
Accrued severance pay | 14,596 | 15,986 |
Deferred tax liabilities | 52,509 | 44,140 |
Loan | 213,313 | 455,985 |
Operating leases | 103,490 | |
Other long-term liabilities | 1,731 | 14,618 |
Total long-term liabilities | 411,684 | 565,841 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY | ||
Common stock | 18,961 | 18,849 |
Additional paid-in capital | 1,568,035 | 1,499,986 |
Treasury stock | (554,146) | (527,417) |
Accumulated other comprehensive loss | (33,299) | (46,616) |
Retained earnings | 1,257,715 | 1,071,811 |
Total shareholders' equity | 2,257,266 | 2,016,613 |
Total liabilities and shareholders' equity | $ 3,609,905 | $ 3,207,366 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for current doubtful accounts receivable | $ 9,815 | $ 8,464 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock issued (in shares) | 74,774,827 | 74,367,450 |
Common stock outstanding (in shares) | 62,398,221 | 61,769,554 |
Treasury stock (in shares) | 12,376,606 | 12,597,896 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Total revenues | $ 1,573,912 | $ 1,444,519 | $ 1,332,152 |
Cost of revenues | |||
Total cost of revenues | 531,768 | 496,815 | 468,673 |
Gross profit | 1,042,144 | 947,704 | 863,479 |
Operating expenses | |||
Research and development, net | 193,718 | 183,830 | 181,107 |
Selling and marketing | 399,304 | 370,659 | 361,328 |
General and administrative | 168,022 | 153,323 | 129,071 |
Amortization of acquired intangibles | 42,383 | 42,276 | 41,902 |
Total operating expenses | 803,427 | 750,088 | 713,408 |
Operating income | 238,717 | 197,616 | 150,071 |
Financial expenses and other, net | 4,444 | 10,901 | 20,411 |
Income before taxes on income | 234,273 | 186,715 | 129,660 |
Taxes on income (tax benefit) | 48,369 | 27,377 | (13,631) |
Net income | $ 185,904 | $ 159,338 | $ 143,291 |
Basic earnings per share (in usd per share) | $ 2.99 | $ 2.60 | $ 2.37 |
Diluted earnings per share (in usd per share) | $ 2.88 | $ 2.52 | $ 2.31 |
Weighted average number of shares used in computing | |||
Basic earnings per share (in shares) | 62,120 | 61,387 | 60,444 |
Diluted earnings per share (in shares) | 64,661 | 63,309 | 62,119 |
Product | |||
Revenues | |||
Total revenues | $ 269,100 | $ 263,805 | $ 318,946 |
Cost of revenues | |||
Total cost of revenues | 22,926 | 31,065 | 51,065 |
Service | |||
Revenues | |||
Total revenues | 709,064 | 719,531 | 652,040 |
Cost of revenues | |||
Total cost of revenues | 218,990 | 229,671 | 225,020 |
Cloud | |||
Revenues | |||
Total revenues | 595,748 | 461,183 | 361,166 |
Cost of revenues | |||
Total cost of revenues | $ 289,852 | $ 236,079 | $ 192,588 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 185,904 | $ 159,338 | $ 143,291 |
Other comprehensive income (loss), net of tax | |||
Change in foreign currency translation adjustment | 2,458 | (9,261) | 13,529 |
Available-for-sale investments | |||
Change in net unrealized gains (losses) | 6,260 | (574) | (860) |
Less - reclassification adjustment for net gains (loss) realized and included in net income | (467) | (18) | 6 |
Available for sale net change | 5,793 | (592) | (854) |
Cash flow hedges | |||
Change in unrealized gains (losses) | 5,495 | ||
Change in unrealized gains (losses) | (8,630) | 6,821 | |
Less - reclassification adjustment for net gains (losses) realized and included in net income | (429) | ||
Less - reclassification adjustment for net gains (losses) realized and included in net income | 4,781 | (5,586) | |
Cash flow hedge net change | 5,066 | ||
Cash flow hedge net change | (3,849) | 1,235 | |
Total other comprehensive income (loss) | 13,317 | (13,702) | 13,910 |
Comprehensive income | $ 199,221 | $ 145,636 | $ 157,201 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Available for sale tax effect | $ (913) | $ 351 | $ (113) |
Cash flow hedge tax effect | $ (691) | ||
Cash flow hedge tax effect | $ 370 | $ 0 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated other comprehensive loss | Retained Earnings |
Balance at Dec. 31, 2016 | $ 1,511,332 | $ 18,280 | $ 1,317,539 | $ (488,573) | $ (46,824) | $ 710,910 |
Effect of adopting ASU 2016-09: Improvements to Employee Share-Based Payment Accounting | 8,116 | 1,908 | 6,208 | |||
Exercise of share options | 17,448 | 315 | 17,133 | |||
Stock-based compensation | 56,980 | 56,980 | ||||
Issuance of treasury shares under share-based compensation plan | 1,654 | (3,642) | 5,296 | |||
Equity components of exchangeable note | 30,895 | 30,895 | 0 | |||
Treasury shares purchased | (24,428) | (24,428) | ||||
Other comprehensive income (loss) | 13,910 | 13,910 | ||||
Equity awards assumed for acquisitions | 20,281 | |||||
Dividends | (9,637) | (9,637) | ||||
Net income | 143,291 | 143,291 | ||||
Balance at Dec. 31, 2017 | 1,749,561 | 18,595 | 1,420,813 | (507,705) | (32,914) | 850,772 |
Effect of adopting ASU 2014-09: "Revenue from Contracts with Customers (ASC 606)" | 61,701 | 61,701 | ||||
Exercise of share options | 16,397 | 254 | 16,143 | |||
Stock-based compensation | 67,223 | 67,223 | ||||
Issuance of treasury shares under share-based compensation plan | 2,598 | (4,976) | 7,574 | |||
Treasury shares purchased | (27,286) | (27,286) | ||||
Other comprehensive income (loss) | (13,702) | 0 | (13,702) | |||
Equity awards assumed for acquisitions | 783 | 783 | ||||
Net income | 159,338 | 159,338 | ||||
Balance at Dec. 31, 2018 | 2,016,613 | 18,849 | 1,499,986 | (527,417) | (46,616) | 1,071,811 |
Exercise of share options | 2,019 | 112 | 1,907 | |||
Stock-based compensation | 82,033 | 82,033 | ||||
Issuance of treasury shares under share-based compensation plan | 3,409 | (15,891) | 19,300 | |||
Treasury shares purchased | (46,029) | (46,029) | ||||
Other comprehensive income (loss) | 13,317 | 13,317 | ||||
Net income | 185,904 | 185,904 | ||||
Balance at Dec. 31, 2019 | $ 2,257,266 | $ 18,961 | $ 1,568,035 | $ (554,146) | $ (33,299) | $ 1,257,715 |
STATEMENTS OF CHANGES IN SHAR_2
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares issued under share-based compensation plans (in shares) | 556,655 | 203,575 | 147,347 |
Cash dividend paid (in usd per share) | $ 0 | $ 0 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 185,904 | $ 159,338 | $ 143,291 |
Adjustments required to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 173,230 | 157,142 | 156,301 |
Stock-based compensation | 80,864 | 67,223 | 56,980 |
Accrued severance pay, net | (1,964) | 1,020 | (788) |
Amortization of premium and discount and accrued interest on marketable securities | (53) | (598) | 646 |
Deferred taxes, net | (12,208) | (30,172) | (70,805) |
Increase (Decrease) in Operating Capital [Abstract] | |||
Trade receivables, net | (29,863) | (72,583) | 37,735 |
Prepaid expenses and other current assets | (76,180) | (29,852) | (6,839) |
Trade payables | 777 | (3,526) | 2,665 |
Accrued expenses and other liabilities | 31,730 | 48,095 | 25,541 |
Operating lease right-of-use assets, net | (19,104) | ||
Deferred revenues | 13,810 | 92,768 | 41,624 |
Long term liabilities | (311) | (1,024) | (5,169) |
Operating lease liabilities | (18,839) | ||
Amortization of discount on debt | 9,236 | 8,670 | 13,547 |
Other | (1,079) | 108 | (67) |
Net cash provided by operating activities | 374,158 | 396,609 | 394,662 |
Cash flows from investing activities | |||
Purchase of property and equipment | (27,293) | (31,442) | (39,889) |
Purchase of investments | (619,060) | (429,500) | (133,423) |
Proceeds from investments | 362,713 | 137,180 | 64,295 |
Payments for business and asset acquisitions, net of cash acquired | (25,972) | (104,776) | (76,027) |
Capitalization of internal use software costs | (34,679) | (32,225) | (27,936) |
Net cash used in investing activities | (344,291) | (460,763) | (212,980) |
Cash flows from financing activities | |||
Proceeds from issuance of shares upon exercise of options | 5,428 | 19,048 | 19,240 |
Purchase of treasury shares | (47,276) | (26,004) | (24,428) |
Dividends paid | 0 | 0 | (9,637) |
Capital lease payments | (816) | (876) | (137) |
Proceeds from issuance of exchangeable senior notes, net | 0 | 0 | 260,135 |
Repayment of loan | 0 | 0 | (260,000) |
Repayment of short-term debt | 0 | (8,436) | 0 |
Net cash used in financing activities | (42,664) | (16,268) | (14,827) |
Effect of exchange rate changes on cash | (979) | (5,781) | 4,421 |
Net change in cash and cash equivalents | (13,776) | (86,203) | 171,276 |
Cash and cash equivalents at the beginning of the year | 242,099 | 328,302 | 157,026 |
Cash and cash equivalents at the end of the year | 228,323 | 242,099 | 328,302 |
Cash paid during the year for | |||
Income taxes | 65,200 | 42,858 | 33,029 |
Interest | 11,493 | 12,319 | 7,910 |
Non-cash activities | |||
Decrease in other receivables with respect to exercise of share options | 0 | 53 | 138 |
Increase in accrued expenses and other liabilities with respect to purchase of treasury shares | $ 35 | $ 1,282 | $ 0 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2019 | |
GENERAL [Abstract] | |
GENERAL | GENERAL a. General: NICE Ltd. and its subsidiaries (the "Company") is a global enterprise cloud software leader, serving two main markets, Customer Engagement and Financial Crime and Compliance. The Company's core mission is to transform experiences to be extraordinary and trusted. The Company's software is used by customer service organizations of enterprises of all sizes and verticals, and by compliance and fraud-prevention groups in leading financial institutions. The Company help organizations transform customer experiences with solutions aimed at understanding consumer journeys, creating smarter hyper-personalized connections, managing omnichannel interactions and providing digital-centric self-service capabilities. The Company also help organizations transform their workforce experience with solutions aimed at engaging employees, optimizing operations and automating processes. Additionally, The Company help financial services organizations make experiences safer with solutions aimed at predicting needs and identifying risks to prevent money laundering and fraud, as well as ensuring compliance in real-time. NICE Ltd. is at the forefront of several industry technological disruptions: the growing maturity of analytics and AI, the adoption of cloud platforms by enterprises, the expansion of use of digital channels to communicate with customers, and the shift by financial institutions to integrated risk management solutions for end-to-end financial crime prevention. The Company's solutions form a comprehensive and unified portfolio based on its unique domain expertise for driving customer experience transformation and preventing financial crime as well as enhancing public safety. These solutions are built on innovative cloud platforms that are digital-first, integrating advanced analytics, AI and automation in a wide range of business applications. b. Acquisitions: 1. Acquisitions in 2019: During 2019, the Company acquired certain companies, accounted for a as business combination and an asset acquisition (see also note 2z). The financial results of the acquired companies are included in the Company’s consolidated financial statements, from their respective acquisition dates, and the results from each of these companies were not individually material to the Company’s consolidated financial statements. In the aggregate, the total preliminary purchase price for these acquisitions was approximately $26,671 in cash. The Company preliminary recorded $15,683 of identifiable intangible assets, based on their estimated fair values, and $14,480 of residual goodwill. The preliminary fair value estimates for the assets acquired assumed for these acquisitions completed during 2019 were based upon preliminary calculations and valuations, and the estimates and assumptions for these acquisitions are subject to change as the Company obtains additional information during the respective measurement periods (up to one year from the respective acquisition dates). 2. Acquisition of Mattersight Corporation in 2018: On August 20, 2018, the Company completed the acquisition of Mattersight Corporation ("Mattersight"), a leading provider of cloud based analytics for customer service organizations. The Company acquired Mattersight for total consideration of $105,053. Upon acquisition, Mattersight became a wholly-owned subsidiary of the Company. The acquisition was accounted for as a business combination. This method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The Company recorded core technology, customer relationships, customer backlog and goodwill in amount of $50,852; $7,757; $5,439 and $48,579, respectively. The estimated useful life of the core technology, customer relationships, and customer backlog are 5 to 7 years, 7 years, and 2 to 3 years, respectively. Goodwill generated from this business combination is attributed to synergies between the Company's and Mattersight's respective products and services. The goodwill is not deductible for income tax purposes. The fair value estimates of assets acquired and liabilities assumed from this acquisition were based on a preliminary valuation, which was finalized during 2019 as part of the measurement period. See Note 8 regarding changes during 2019. The results of Mattersight's operations have been included in the consolidated financial statements since August 20, 2018. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated statement of income. 3. Acquisitions in 2017: During 2017, the Company acquired certain companies. These acquisitions were not significant individually or in the aggregate. The financial results of the acquired companies are included in the Company's consolidated financial statements from their respective acquisition dates, and the results from each of these companies were not individually material to the Company's consolidated financial statements. In the aggregate, the total purchase price for these acquisitions was approximately $76,870. The Company preliminarily recorded $2,291 of net tangible liabilities and $51,015 of identifiable intangible assets, based on their estimated fair values, and $28,145 of residual goodwill. The fair value of assets acquired and liabilities assumed from those acquisitions were based on a preliminary valuation which was finalized during 2018 as part of the measurement period. See Note 8 regarding changes during 2018. 4. Acquisitions related costs: During 2019, 2018 and 2017, acquisition related costs amounted to $720, $1,249 and $970 respectively, and were included in general and administrative expenses. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of NICE Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. c. Principles of consolidation: Intercompany transactions and balances have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three e. Marketable securities: The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income. Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in accumulated other comprehensive income. f. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 5 - 14 Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. g. Internal use software costs: The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC 350-40, internal-use software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. h. Other intangible assets, net: Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 3 – 8 Customer relationships 3 - 7 Trademarks 2 - 12 Customer backlog 2 - 3 i. Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends. Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. In 2019, 2018 and 2017, no impairment charge was recognized. j. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. During the fourth quarter of each of the years presented, the Company performed a qualitative assessment for its reporting units and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. Accordingly, during the years 2019, 2018 and 2017, no impairment charge was recognized. k. Exchangeable senior notes: The Company applies ASC 815, "Derivative and Hedging" ("ASC 815"), and ASC 470, "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. l. Revenue recognition: The Company generates revenues from sales of software products, services and cloud, which include software license, software-as-a-service, network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and training. The Company sells its products directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users. Starting 2018, the Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). Under the standard, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company perform the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) there is an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services; (ii) the contract has commercial substance; and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intent to pay, which is based on a variety of factors, including the customer's historical payment experience. 2) Identify the performance obligations in the contract The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e., if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. In addition, the Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. 4) Allocate the transaction price to the performance obligations in the contract The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") out of the total consideration of the contract. The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. The Company typically establish SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. SSP for products and services can evolve over time due to changes in Nice Ltd. pricing practices that are influenced by intense competition, changes in demand for products and services, and economic factors, among others. For product where the SSP cannot be determined based on observable prices, given the same products are sold for a broad range of amounts (that is, the selling price is highly variable), the SSP included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to these product revenues. 5) Recognize revenue when (or as) the entity satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Software license revenues are recognized at the point in time when the software license is delivered and the customer obtains control of the asset. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Professional services revenues are recognized as services are performed. The Company derives its cloud revenues from subscription services, which are comprised of subscription fees from granting customers access to the Company’s cloud computing services and from network connectivity. Revenue from subscription services is recognized either ratably over the contract period or based on usage, and revenue from network connectivity is based on customer call usage and is recognized in the period the call is initiated. Deferred revenues, which represent a contract liability, represent unrecognized fees collected mostly for maintenance, cloud and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was approximately $226,500 for the year ended December 31, 2019. As of December 31, 2019, the aggregate amount of the total transaction price allocated in contracts with original duration greater than one year of the remaining performance obligations was approximately $943,500. As of December 31, 2019, the Company expects to recognize the majority of the revenue of remaining performance obligation over the next 24 months. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations pursuant to ASC 606. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of one year or less. m. Costs to Obtain Contracts: The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. The Company applies judgment in estimating the amortization period by taking into consideration customer contract terms, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization of sales commission expense is included in Selling and Marketing expenses in the accompanying consolidated statements of income. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Commission expense for the years 2019, 2018 and 2017 were $93,081; $76,776 and $92,166, respectively. n. Research and development costs: Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. o. Income taxes: To prepare our consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates, and in certain of these jurisdictions, it is calculated based on the Company assumptions as to its entitlement to various benefits under the applicable tax laws in the jurisdiction. The entitlement to such benefits depends upon the Company's compliance with the terms and conditions set out in these laws. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. p. Non-royalty grants: Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers located primarily in North America, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers and insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts is provided, based on the length of time the receivables are past due. The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S. Government Agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company entered into foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. r. Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expense for 2019, 2018 and 2017 amounted to $7,656, $13,453 and $9,862, respectively. The Company also has other liabilities for severance pay in other jurisdictions. The Company has a 401(k) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6%-8% of their eligible compensation but generally not greater than annual contribution of $19 in 2019, $18.5 in 2018 and $18 in 2017 (for certain employees over 50 years of age the maximum annual contribution is $25 per year in 2019, $24.5 in 2018 and $24 in 2017) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6-8% of their eligible compensation. In the years 2019, 2018 and 2017, the Company recorded an expense for matching contributions in the amount of $8,068; $7,732 and $7,044, respectively. s. Leases On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed it to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine its lease and non-lease components for car leases and to not recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with a term of twelve months or less. The Company recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Under Topic 842, The Company determines if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company consider only payments that are fixed and determinable at the time of commencement. As most of the Company leases do not provide an implicit rate, the Company use its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The ROU asset is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. t. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As the Company's intention and ability is to settle the convertible debt in cash, the potential issuance of shares related to the convertible debt does not affect diluted shares. As further described in Note 15, the Company entered into an exchangeable note hedge transaction and warrants transaction. While the exchangeable note hedge transaction is anti-dilutive and as such is not included in the computation of diluted earnings per share, the warrants transaction had dilutive effect and as such were included in the computation of the diluted earnings per share. The number of shares related to the outstanding exchangeable note hedge transaction is 3,457,475. The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 4,921; 108,617 and 62,319 for the years 2019, 2018 and 2017, respectively. u. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of stock base compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company account for forfeitures as they occur. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 14d The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. v. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities, exchangeable senior notes and foreign currency derivative contracts are classified within Level 2 (see Notes 3, 10 and 15). The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables and trade payables approximate their fair value due to the immediate or short-term maturities of these financial instruments. The carrying amount of the loan approximates its fair value due to the fact that the loan bears a variable interest rate. w. Legal contingencies: The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. x. Advertising expenses: Advertising expenses are charged to expense as incurred. Advertising expenses for the years 2019, 2018 and 2017 were $16,040; $13,527 and $13,543, respectively. y. Treasury shares: The Company repurchases its ordinary shares from time to time on the open market or in other transactions and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. z. Business combination: The Company applies the provisions of ASC 805, "Business Combination" and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of t |
SHORT-TERM AND LONG-TERM INVEST
SHORT-TERM AND LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM AND LONG-TERM INVESTMENTS | SHORT-TERM AND LONG-TERM INVESTMENTS Short-term and long-term investments include marketable securities in the amount of $735,717 and $488,727 as of December 31, 2019 and 2018, respectively and short-term bank deposits in the amounts of $17,444 as of December 31, 2019. The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2019 and 2018: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Corporate debentures $ 687,886 $ 457,944 $ 4,865 $ 190 $ (271) $ (1,993) $ 692,480 $ 456,141 U.S. Treasuries 23,182 21,943 82 — (2) (226) 23,262 21,717 U.S. Government Agencies 19,957 10,854 38 16 (20) (1) 19,975 10,869 $ 731,025 $ 490,741 $ 4,985 $ 206 $ (293) $ (2,220) $ 735,717 $ 488,727 The scheduled maturities of available-for-sale marketable securities as of December 31, 2019 are as follows: Amortized Estimated Due within one year $ 192,882 $ 193,328 Due after one year through five years 538,142 542,389 $ 731,025 $ 735,717 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2019 and 2018 are as indicated in the following tables: December 31, 2019 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 70,733 $ (117) $ 48,658 $ (154) $ 119,391 $ (271) U.S. Treasuries — — 5,005 (2) 5,005 (2) U.S. Government Agencies 10,974 (20) — — 10,974 (20) $ 81,707 $ (137) $ 53,663 $ (156) $ 135,370 $ (293) December 31, 2018 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 231,845 $ (754) $ 113,870 $ (1,239) $ 345,715 $ (1,993) U.S. Treasuries 14,926 (12) 6,791 (214) 21,717 (226) U.S. Government Agencies 7,932 (1) — — 7,932 (1) $ 254,703 $ (767) $ 120,661 $ (1,453) $ 375,364 $ (2,220) |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2019 2018 Government authorities $ 46,444 $ 30,369 Interest receivable 6,948 2,867 Prepaid expenses 56,008 45,671 Inventories 3,389 3,434 Other 4,183 5,109 $ 116,972 $ 87,450 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER LONG-TERM ASSETS | OTHER LONG-TERM ASSETS December 31, 2019 2018 Deferred commission costs $ 79,336 $ 57,675 Severance pay fund 13,201 12,575 Long-term deposits and other assets 31,497 3,792 $ 124,034 $ 74,042 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET December 31, 2019 2018 Cost: Computers and peripheral equipment $ 263,128 $ 253,325 Internal use software 105,297 69,452 Office furniture and equipment 13,180 13,060 Leasehold improvements 59,199 57,454 440,804 393,291 Accumulated depreciation: Computers and peripheral equipment 212,471 196,820 Internal use software 41,622 16,597 Office furniture and equipment 8,655 7,717 Leasehold improvements 36,409 31,819 299,157 252,953 Depreciated cost $ 141,647 $ 140,338 Depreciation expense totaled $60,174, $49,963 and $37,924 for the years 2019, 2018 and 2017, respectively. The Company recorded a reduction of $18,653 and $11,485 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use for the years ended December 31, 2019 and 2018, respectively. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | OTHER INTANGIBLE ASSETS, NET a. Definite-lived other intangible assets: December 31, 2019 2018 Original amounts: Core technology $ 577,692 $ 720,134 Customer relationships, backlog and distribution network 258,137 393,204 Trademarks 44,440 55,896 880,269 1,169,234 Accumulated amortization: Core technology 281,319 372,895 Customer relationships, backlog and distribution network 170,454 264,463 Trademarks 17,477 23,644 469,250 661,002 Other intangible assets, net $ 411,019 $ 508,232 b. Amortization expense amounted to $113,056, $107,179 and $118,377 for the years ended December 31, 2019, 2018 and 2017, respectively. c. Estimated amortization expense: For the year ended December 31, 2020 $ 107,543 2021 100,525 2022 81,351 2023 66,195 2024 50,110 Thereafter 5,295 $ 411,019 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Following the Company's acquisitions in 2019 and 2018, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2019 and 2018 are as follows: Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Total As of January 1, 2019 $ 1,103,091 $ 263,115 $ 1,366,206 Acquisitions (*) 9,176 — 9,176 Functional currency translation adjustments 2,413 623 3,036 As of December 31, 2019 $ 1,114,680 $ 263,738 $ 1,378,418 Year ended December 31, 2018 Customer Engagement Financial Crime and Compliance Total As of January 1, 2018 $ 1,053,922 $ 264,320 $ 1,318,242 Acquisitions (*) 54,203 — 54,203 Functional currency translation adjustments (5,034) (1,205) (6,239) As of December 31, 2018 $ 1,103,091 $ 263,115 $ 1,366,206 (*) Including adjustments of $(5,304) and $5,624, resulting from finalization of purchase price allocations with respect to 2019 and 2018, respectively. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2019 2018 Payroll and related expenses $ 179,291 $ 158,185 Accrued expenses 97,325 104,568 Government authorities 101,194 95,535 Other 13,875 15,620 $ 391,685 $ 373,908 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company's risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. ASC 815, "Derivatives and Hedging" ("ASC 815"), requires the Company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, an entity must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. As a result of adopting new accounting guidance discussed in Note 2, "Recently adopted accounting pronouncements", beginning January 1, 2019, gains and losses on derivatives instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that are attributable to a particular risk), are recorded in accumulated other comprehensive income (loss) and reclassified into in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. Prior to January 1, 2019, cash flow hedge ineffectiveness was separately measured and reported immediately in earnings. Cash flow hedge ineffectiveness was immaterial during 2018 and 2017. The Company entered into option and forward contracts to hedge a portion of anticipated New Israeli Shekel ("NIS"), Indian Rupee ("INR") and Philippine peso ("PHP") payroll and benefit payments as well as facilities related payments. These derivative instruments are designated as cash flow hedges, as defined by ASC 815 and accordingly are measured in fair value. These transactions are effective and, as a result, gain or loss on the derivative instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified as payroll expenses, facility expenses or finance expenses, respectively, at the time that the hedged income/expense is recorded. Notional amount Fair value December 31, December 31, 2019 2018 2019 2018 Option contracts to hedge payroll expenses ILS $ 16,204 $ 73,950 $ 294 $ (2,566) expenses INR 21,904 40,391 800 807 Option contracts to hedge facility expenses ILS 1,273 5,200 19 (137) expenses INR 2,006 3,874 80 80 Forward contracts to hedge payroll expenses ILS 67,139 53,500 1,333 (1,926) expenses INR 10,032 — 50 — expenses PHP 2,362 4,452 64 187 Forward contracts to hedge lease obligations PHP 4,921 — — — Forward contracts to hedge facility expenses ILS 2,546 — 67 — Forward contracts to hedge facility expenses PHP 433 628 12 28 $ 128,820 $ 181,995 $ 2,719 $ (3,527) The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. As of December 31, 2019, the Company expects to reclassify all of its unrealized gains and losses from accumulated other comprehensive income to earnings during the next twelve months. The fair value of the Company's outstanding derivative instruments at December 31, 2019 and 2018 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2019 2018 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ 1,194 $ 888 Foreign exchange forward contracts Prepaid expenses and other current assets 1,525 214 Derivative liabilities: Foreign exchange option contracts Accrued expenses and other liabilities — (2,703) Foreign exchange forward contracts Accrued expenses and other liabilities $ — $ (1,926) The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2019, 2018 and 2017 is summarized below: Amount of gain (loss) recognized in Year Ended December 31, 2019 2018 2017 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ 2,108 $ (6,059) $ 3,317 Option contracts 3,387 (2,571) 3,504 $ 5,495 $ (8,630) $ 6,821 Derivatives in foreign exchange cash flow hedging relationships: Amount of gain (loss) reclassified from other comprehensive income Year Ended December 31, Statements of income line item 2019 2018 2017 Option contracts to hedge payroll and facility expenses Cost of revenues and operating expenses $ 320 $ 66 $ (2,429) Forward contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and financial expenses (749) 4,715 (3,157) $ (429) $ 4,781 $ (5,586) |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company has entered into various non-cancelable operating lease agreements for certain of our office spaces and motor vehicles. The leases have original lease periods expiring between 2020 and 2037. The Company does not assume renewals in its determination of the lease term unless the renewals are considered as reasonably assured at lease commencement. The operating lease cost for the year ended December 31, 2019 was $22,528. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Operating cash flows from operating leases $ 23,404 New right-of-use assets obtained in exchange for operating lease obligations $ 4,975 Maturities of lease liabilities were as follows : Operating Leases 2020 $ 23,118 2021 20,003 2022 18,926 2023 11,951 2024 9,866 Thereafter 81,472 Total lease payments 165,336 Less imputed interest (40,327) Total $ 125,009 Supplemental balance sheet information related to leases was as follows: Year Ended December 31, 2019 Current maturities of operating leases $ 21,519 Long-term operating leases 103,490 Total operating lease liabilities $ 125,009 Weighted-average remaining operating lease term 10.70 Weighted-average discount rate of operating leases 4.95 % |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES a. Commitments: The Company is also obligated under certain agreements with its suppliers to purchase licenses and hosting services. These non-cancelable obligations as of December 31, 2019 are $65,374. b. Legal proceedings: From time to time the Company or its subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not believe it will have a material effect on its consolidated financial position, results of operations, or cash flows. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | TAXES ON INCOME a. Israeli taxation: 1. Corporate tax: Commencing 2012, NICE Ltd. and its Israeli subsidiary elected the Preferred Enterprise regime to apply under the Law for the Encouragement of Capital Investments (the "Investment Law"). The election is irrevocable. Under the Preferred Enterprise Regime, from 2015 through 2016, NICE Ltd. and its Israeli subsidiary's entire preferred income was subject to the tax rate of 16%. In December 2016, the Israeli Knesset passed a number of changes to the Investments Law regimes. These changes came into law in May 2017, retroactively effective beginning January 1, 2017, upon the passing into law of Regulations promulgated by the Finance Ministry to implement the "Nexus Principles" based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Such Regulations provide rules for implementation of the new beneficial Preferred Technology Enterprise tax regime. The Company believes it qualifies as a Preferred Technology Enterprise and accordingly is eligible for a tax rate of 12% on its preferred technology income, as defined in such regulations, beginning from tax year 2017 and onwards. The Company expects that it will continue to qualify as a Preferred Technology Enterprise in subsequent tax years. Income not eligible for Preferred Enterprise or Preferred Technology Enterprise benefits is taxed at the regular corporate tax rate, which is 23% in 2019, and was 23% in 2018 and 24% in 2017. Prior to 2012, most of NICE Ltd. and its Israeli subsidiary's income was exempt from tax or subject to reduced tax rates under the Investment Law. Upon distribution of exempt income, the distributing company was subject to reduced corporate tax rates ordinarily applicable to such income under the Investment Law. Currently, income subjected to a reduced tax rate under the Preferred Enterprise and Preferred Technology Enterprise Regime will be freely distributable as dividends, subject to a 20% withholding tax (or lower, under an applicable tax treaty). However, upon the distribution of a dividend from such Preferred Income to an Israeli company, no withholding tax will be imposed In September 2013, and pursuant to a temporary Israeli government tax relief, the Company made an election to pay reduced corporate tax on undistributed exempt income, generated under the Investment Law and accumulated by the company until December 31, 2011 and be entitled to distribute a dividend, without being required to pay additional corporate tax, from such income. NICE Ltd. duly released its and its Israeli subsidiary's tax-exempted income through 2011. In addition, under this election the Company was required to make and complete certain qualified investments in Israeli "industrial projects" (as defined in the Law), by December 31, 2018, which the Company believes it has done. Further to the election, NICE Ltd. no longer has a tax liability upon future distributions of its tax-exempted earnings, while the Israeli subsidiary may have a tax liability upon future distributions only with respect to its 2012 tax-exempted earnings. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, NICE Ltd. and its Israeli subsidiary calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. 3. Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969: NICE Ltd. and its Israeli subsidiary believe they currently qualify as an "Industrial Company" as defined by the above law and, as such, are entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of cost of purchased know-how and patents for tax purposes over 8 years. b. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. The Company's consolidated tax rate depends on the geographical mix of where its profits are earned. Primarily, in 2019, the Company's U.S. subsidiaries are subject to combined federal and state income taxes of approximately 25% and its subsidiaries in the U.K. and India are subject to corporation tax at a rate of approximately 19% and 18.5% respectively. Neither Israeli income taxes, foreign withholding taxes nor deferred income taxes were provided in relation to undistributed earnings of the Company's foreign subsidiaries. This is because the Company has the intent and ability to reinvest these earnings indefinitely in the foreign subsidiaries and therefore those earnings are continually redeployed in those jurisdictions. As of December 31, 2019, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $788,728 with a corresponding unrecognized deferred tax liability of $115,505. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. c. U.S. Tax Reform: On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "U.S. Tax Reform" or "TCJA"); a comprehensive tax legislation that includes significant changes to the taxation of business entities. These changes include several key tax provisions that might impact the Company, among others: (i) a permanent reduction to the statutory federal corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2018; (ii) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a modified territorial system (along with certain new rules designed to prevent erosion of the U.S. income tax base - "BEAT"); (iii) establishing immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing certain business deductions and credits; and (iv) providing a permanent deduction to corporations generating revenues from non-US markets (known as a deduction for foreign derived intangible income - "FDII"). The final impact of the TCJA may differ due to, among other things, possible changes in the interpretations and assumptions made by the Company as a result of additional information, additional guidance or finalization of law and regulations, that will be issued by the U.S. Department of Treasury, the IRS or other standard-setting bodies, and which may impact the Company's future financial statements; and will be accounted for when such guidance is issued. d. Net operating loss carryforward: As of December 31, 2019, the Company and certain of its subsidiaries had tax loss carry-forwards totaling in aggregate approximately $151,959 which can be carried forward and offset against taxable income. Approximately $73,011 of these carry-forward tax losses have no expiration date, with the balance expiring between 31.12.25 and 31.12.37. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. e. Deferred tax assets and liabilities: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Net operating losses carryforward and tax credits $ 31,254 $ 88,528 Intra-entity transfer of certain intangible assets ( *) 18,798 — Operating leases liabilities 24,398 — Share based payments 19,017 21,631 Research and development costs 3,645 3,473 Reserves, allowances and other 31,090 21,838 Deferred tax assets before valuation allowance 128,202 135,470 Valuation allowance (9,145) (11,211) Deferred tax assets 119,057 124,259 Deferred tax liabilities: Acquired intangibles (87,711) (126,318) Operating lease right-of-use assets (20,357) — Acquired deferred revenue (760) (2,033) Internal Use Software and other Fixed Assets (14,779) (15,677) Prepaid Compensation Expenses (17,446) (12,062) Deferred tax liabilities (141,053) (156,090) Deferred tax liabilities, net $ (21,996) $ (31,831) (*) During the year ended December 31, 2019, the Company completed an intra-entity transfer of certain intangible assets to a different tax jurisdiction. As a result of the transfer, the Company utilized net operating losses carried forward and consequently released the valuation allowance on certain deferred tax assets, incurred a tax expense on capital gain, released certain deferred tax liabilities and recorded a deferred tax asset. December 31, 2019 2018 Deferred tax assets $ 30,513 $ 12,309 Deferred tax liabilities (52,509) (44,140) Deferred tax liabilities, net $ (21,996) $ (31,831) The Company has provided valuation allowances in respect of certain deferred tax assets resulting from tax loss carry forwards and other reserves and allowances due to uncertainty concerning their realization. f. A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year Ended December 31, 2019 2018 2017 Income before taxes on income, as reported in the consolidated statements of income $ 234,273 $ 186,715 $ 129,660 Statutory tax rate in Israel 23.0 % 23.0 % 24.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (7.7) % (13.0) % (16.8) % Changes in valuation allowance 0.7 % — — % Earnings taxed under foreign law 17.9 % (1.8) % (4.6) % Tax settlements and other adjustments 5.8 % 7.0 % 14.3 % U.S. Tax Reform one-time adjustment (1.6) % (23.9) Intangible assets transfer (14.2) % Other (4.9) % 1.1 % (3.5) % Effective tax rate 20.6 % 14.7 % (10.5) % (*) The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits " status on net earnings per ordinary share is as follows: Year Ended December 31, 2019 2018 2017 Basic $ 0.29 $ 0.39 $ 0.36 Diluted $ 0.28 $ 0.38 $ 0.35 g. Income before taxes on income is comprised as follows: Year Ended December 31, 2019 2018 2017 Domestic $ 169,236 $ 193,664 $ 188,070 Foreign 65,037 (6,949) (58,410) $ 234,273 $ 186,715 $ 129,660 h. Taxes on income (tax benefit) are comprised as follows: Year Ended December 31, 2019 2018 2017 Current $ 60,586 $ 57,549 $ 57,174 Deferred (12,217) (30,172) (70,805) 48,369 27,377 (13,631) Domestic 8,614 29,947 27,673 Foreign 39,755 (2,570) (41,304) $ 48,369 $ 27,377 $ (13,631) Of which: Year Ended December 31, 2019 2018 2017 Domestic taxes: Current $ 29,075 $ 34,370 $ 22,808 Deferred (20,461) (4,423) 4,865 8,614 29,947 27,673 Foreign taxes: Current 31,196 23,179 34,366 Deferred 8,559 (25,749) (75,670) 39,755 (2,570) (41,304) Taxes on income (tax benefit) $ 48,369 $ 27,377 $ (13,631) i. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2019 2018 Uncertain tax positions, beginning of year $ 58,560 $ 43,984 Increases/(Decreases) in tax positions for prior years (3,443) 5,121 Increases in tax positions for current year 15,749 13,353 Settlements — (3,471) Expiry of the statute of limitations (5,982) (427) Uncertain tax positions, end of year $ 64,884 $ 58,560 All the Company's unrecognized tax benefits would, if recognized, reduce the Company's annual effective tax rate. The Company has further accrued $3,889 and $501 due to interest and penalties related to uncertain tax positions as of December 31, 2019 and 2018 respectively. During the course of 2019, upon receipt of an information letter, the Company's United Kingdom Subsidiary Group elected to register for the United Kingdom Profits Diversion Compliance Facility, covering the years 2015-2018. NICE Ltd. is currently in the process of routine Israeli income tax audits for the tax years 2014, 2015 and 2016. As of December 31, 2019, U.S. federal income tax returns filed by the Company or its subsidiaries for the tax years prior to 2016 are no longer subject to audit; and to the extent the Company or its subsidiaries generated net operating losses or tax credits in closed tax years, future use of the net operating loss or tax credit carry forward balance would be subject to examination within the relevant statute of limitations for the year in which it was utilized. The Company and its subsidiaries are still subject to other income tax audits for the tax years of 2011 through 2018. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY a. The Ordinary shares of the Company are traded on the Tel-Aviv Stock Exchange and its American Depositary Shares ("ADSs"), each representing one fully paid ordinary share, par value NIS 1.00 per share of the Company, are traded on NASDAQ. b. Share option plans: 2008 and 2016 Share Incentive Plan In June 2008 the Company adopted the 2008 Share Incentive Plan (the “2008 Plan”) and in February 2016 the Company adopted the 2016 Share Incentive Plan (the “2016 Plan”, and together with the 2008 Plan, the “Plans”). The Company adopted the Plans to provide incentives to employees, directors, consultants and/or contractors by rewarding performance and encouraging behavior that will improve the Company’s profitability. . Under each of the Plans, the Company's employees, directors, consultants and/or contractors may be granted any equity-related award, including: any type of an option to acquire the Company ordinary shares; share appreciation right; share and/or restricted share award (“RSA”); restricted stock unit (“RSU”) and/or other share unit; and/or other share-based award and/or other right or benefit under the Plans, including any such equity-related award that is a performance based award (each an “Award”). In regard to the 2008 Plan, please see the discussion below regarding performance-based awards beginning calendar year 2014. . Generally, under the terms of the Plans, unless determined otherwise by the administrator of the Plans, 25% of an Award granted becomes exercisable on the first anniversary of the date of grant and 6.25% becomes exercisable once every quarter during the subsequent three years. Specifically with respect to RSUs and options granted with an exercise price equal to the nominal value of an ordinary share (“par value options”), unless determined otherwise by the Board of Directors, 25% of the RSUs and the par value options granted become vested on each of the four consecutive annual anniversaries following the date of grant. . Certain executive officers are entitled to acceleration of vesting of Awards in the event of a change of control, subject to certain conditions. Awards with a vesting period expire six years after the date of grant. Pursuant to a resolution of the Company's Board of Directors dated February 4, 2014, options that are performance-based and that were granted during calendar year 2014 and thereafter shall expire seven years following the date of grant. The maximum number of shares that may be subject to Awards granted under each of the Plans is calculated each calendar year as 3% of the Company’s issued and outstanding share capital as of December 31 of the preceding calendar year (pursuant to an amendment of the 2016 Plan approved by the Board of Directors on October 2, 2019). Such amount is reset for each calendar year. Awards are non-transferable except by will or the laws of descent and distribution . Following an amendment made in December 2010 to the 2008 Plan and also applied under the 2016 Plan (the “2010 Amendment”), options granted under such plan are granted at an exercise price equal to the average of the closing prices of one ADR as quoted on the NASDAQ market during the 30 consecutive calendar days preceding the date of grant, unless determined otherwise by the administrator of the Plans (including par value options in some cases). Prior to the 2010 Amendment, the options were granted at an exercise price of not less than the fair market value of the ordinary shares on the date of the grant, subject to certain exceptions that could be approved by the Company's Board of Directors, including in some cases par value options. The Company’s Board of Directors also adopted an addendum to the Plans for Awards granted to residents of Israel (the "Addendum") and resolved to elect the "Capital Gains Route" (as defined in Section 102(b)(2)) of the Israeli Income Tax Ordinance-5721-1961 (“Tax Ordinance”) for the grant of Awards to Israeli grantees. There is also a U.S. addendum under each of the Plans that applies to non-qualified stock options for purposes of U.S. tax laws . During 2019, the Company granted 914,194 options and restricted share units under the 2016 Plan (which constituted 1.48% of the Company issued and outstanding share capital as of December 31, 2018). Pursuant to the terms of the acquisitions of, e-Glue Software Technologies Inc., Merced, Nexidia, inContact and Mattersight, the Company assumed or replaced unvested options, RSAs and RSUs and converted them or replaced them with the Company's options, RSAs and RSUs, as applicable, based on an agreed exchange ratio. Each assumed or replaced option, RSA and RSU is subject to the same terms and conditions, including vesting, exercisability and expiration, as originally applied to any such option, RSA and RSU immediately prior to the acquisition. The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2019, 2018 and 2017 was estimated using the following assumptions: 2019 2018 2017 Expected volatility 19.44%-21.54% 21.23%-21.83% 21.69%-22.90% Risk free interest rate 1.43%-2.55% 2.42%-3.04% 1.53%-2.00% Expected dividend — — —% Expected term (in years) 3.5 3.5 3.5 A summary of the Company's stock options activity and related information for the year ended December 31, 2019, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term Aggregate intrinsic Outstanding at January 1, 2019 1,184,847 19.82 4.47 104,731 Granted 368,375 17.86 Exercised 319,860 16.46 Cancelled 2,765 25.70 Forfeited 121,161 1.20 Outstanding at December 31, 2019 1,109,436 22.16 4.35 147,545 Exercisable at December 31, 2019 425,433 40.08 3.27 48,955 The weighted-average grant-date fair value of options granted during the years 2019, 2018 and 2017 was $121.21, $89.54 and $61.54, respectively. The total intrinsic value of options exercised during the years 2019, 2018 and 2017 was $87,872; $68,749 and $42,592, respectively. The options outstanding under the Company's stock option plans as of December 31, 2019 have been separated into ranges of exercise price as follows: Ranges of Options outstanding as of December 31, 2019 Weighted Weighted Options exercisable as of December 31, 2019 Weighted (Years) $ $ $ 0.29 810,121 4.56 0.28 197,163 0.28 $ 6.72-9.89 2,983 4.07 7.20 2,983 7.20 $ 12.45-17.72 398 0.66 14.86 398 14.86 $ 336.02-48.48 50,899 4.13 40.72 34,106 41.16 $ 54.95-80.76 143,780 2.85 71.32 134,079 71.05 $ 85.104-151.63 101,255 4.95 118.55 56,704 106.52 1,109,436 4.47 19.82 425,433 36.24 A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2019, is as follows: Number of RSU and RSA ( *) Outstanding at January 1, 2019 1,759,070 Granted 545,819 Vested (649,556) Forfeited (118,284) Outstanding at December 31, 2019 1,537,049 (*) NIS 1 par value which represents approximately $0.29 As of December 31, 2019, the total compensation cost related to nonvested awards not yet recognized was approximately $131,459, which is expected to be recognized over a period of up to four years. The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2019, 2018 and 2017, was comprised as follows: Year ended 2019 2018 2017 Cost of revenues $ 11,244 $ 11,000 $ 11,337 Research and development, net 9,239 7,363 9,038 Selling and marketing 26,650 27,455 23,107 General and administrative 34,897 21,405 13,498 Total stock-based compensation expenses $ 82,030 $ 67,223 $ 56,980 c. Treasury shares: On January 10, 2017, the Company's Board of Directors authorized a program to repurchase up to $150,000 of Company's issued and outstanding ordinary shares and ADRs. This share repurchase program commenced on April 7, 2017. On February 12, 2020, the Company's Board of Directors authorized an additional program to repurchase up to $200,000 of the Company's issued and outstanding ordinary shares and ADRs, following completion of the program approved in 2017. Repurchases may be made from time to time in the open market or in privately negotiated transactions in accordance with applicable securities laws and regulations. The timing and amount of the repurchase transactions will be determined by the Company's management and may depend on a variety of factors including market conditions, alternative investment opportunities and other considerations. These programs do not obligate the Company to acquire any particular amount of ordinary shares and ADRs and each program may be modified or discontinued at any time without prior notice. d. Dividends: On February 13, 2013, the Company announced that the Board of Directors had approved a dividend plan under which the Company paid quarterly cash dividends to holders of the Company's ordinary shares and ADRs subject to declaration by its Board of Directors. Under Israeli law, dividends may be paid only out of profits and other surplus (as defined in the law) as of the Company's most recent financial statements or as accrued over a period of two years, whichever is higher, provided that there is no reasonable concern that the dividend distribution will prevent the Company from meeting its existing and foreseeable obligations as they come due. On January 10, 2017, the Company announced that the Board of Directors had approved the termination of this dividend plan in connection with the Company's adoption of a capital return strategy to optimize the Company's long-term growth profile. Payment of future dividends, if any, will be at the discretion of the Company's Board of Directors and will depend on various factors, such as the Company's statutory profits, financial condition, operating results and current and anticipated cash needs. Under current Israeli regulations, any cash dividend in Israeli currency paid in respect of ordinary shares purchased by non-residents of Israel with non-Israeli currency may be freely repatriated in such non-Israeli currency, at the rate of exchange prevailing at the time of conversion. The total amount of annual dividend declared and paid in 2018 and 2017 was $0.00 per share and $0.16 per share, respectively. In 2019, no dividend was declared. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT In 2016, the Company entered into a Credit Agreement with certain lenders, according to which the following credit facilities were issued: 1) a loan of $475,000, and 2) a revolving credit loan of up to $75,000. The Credit Agreement contains a number of covenants and restrictions that, among other things and subject to certain agreed upon exceptions, require the Company and its subsidiaries to satisfy certain financial covenants and restrict the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, declare dividends or redeem or repurchase capital stock, prepay, redeem or purchase subordinated debt and amend or otherwise alter debt agreements, in each case, subject to certain agreed upon exceptions. A failure to comply with these covenants could permit the lenders under the Credit Agreement to declare all amounts borrowed under the Credit Agreement, together with accrued interest and fees, to be immediately due and payable. As of December 31, 2019, the Company was in compliance with all covenants and requirements outlined in the Credit Agreement. Loan On January 2017, the Company prepaid a principal amount of $260,000 which resulted in $5,300 amortization of debt issuance costs. In addition, the contractual principal payments for the loan have changed and the Company will pay the entire remaining principal of $215,000 at the final maturity date which is December 31, 2021. The loan bears interest through maturity at a variable rate based upon, at the Company's option every interest period, either (a) the LIBOR rate for Eurocurrency borrowing or (b) an Alternate Base Rate ("ABR"), which is the highest of (i) the administrative agent's prime rate, (ii) one-half of 1.00% in excess of the overnight U.S. Federal Funds rate, and (iii) 1.00% in excess of the one-month LIBOR), plus in each case, an applicable margin. The applicable margin for Eurocurrency loans ranges, based on the applicable total net leverage ratio, from 1.25% to 2.00% per annum and the applicable margin for ABR loans ranges, based on the applicable total net leverage ratio, from 0.25% to 1.00% per annum. Debt issuance costs of $10,158 attributable to the loan are amortized as interest expense over the contractual term of the loan using the effective interest rate. The carrying values of the liability's components are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2019 2018 Principal $ 215,000 $ 215,000 Less: Debt issuance costs, net of amortization (1,687) (2,692) Net liability carrying amount $ 213,313 $ 212,308 Interest expense related to the liability is reflected on the accompanying consolidated statements of income for the years ended: December 31, 2019 2018 Amortization of debt issuance costs $ 1,004 $ 794 Interest expense 7,676 7,083 Total interest expense recognized $ 8,680 $ 7,877 Effective interest rate 4.01 % 3.80 % Pursuant to the Credit Agreement, the Company has also been granted a revolving credit facility that entitles the Company to borrow up to $75,000 through December 2021 with interest payable on the borrowed amount set at the same terms as the term loan, as well as a quarterly commitment fee on unfunded amounts ranging from 0.25% to 0.5%, subject to the achievement of certain leverage levels. As of December 31, 2019, no amounts had been funded. Debt issuance costs of $1,667 attributable to the revolving credit loan are capitalized and amortized as interest expense over the contractual term of the agreement on a straight line basis. Exchangeable Senior Notes and Hedging Transactions Exchangeable Senior Notes In January 2017, the Company issued $287,500 aggregate principal amount of Exchangeable Senior Notes (the "Notes") due 2024. The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2024 Issuance date January 18, 2017 Maturity date January 15, 2024 Principal amount $ 287,500 Cash coupon rate (per annum) 1.25 % Conversion rate effective September 15, 2023 (per $1000 principal amount) 12.026 Effective conversion price effective September 15, 2023 (per ADS) $ 83.15 In the event that the last reported sale price of the company’s ADS for at least 20 Trading Days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the Exchange Price (“Share Price Condition”) or in the event of the satisfaction of certain other conditions, during set periods, as defined in the indenture governing the Notes, the holders of the exchangeable Senior Notes will have the option to exchange the Notes for (i) cash, (ii) ADSs or (iii) a combination thereof, at the Company's election. As of December 31, 2019, the Share Price Condition was triggered and accordingly, the net carrying amount of the Notes was reclassified into current liabilities. The Company may provide additional ADSs upon conversion if there is a "Make-Whole Fundamental Change" in the business as defined in the indenture governing the Notes. The Notes are not redeemable by the Company prior to the maturity date apart from certain cases as defined in the indenture governing the Notes. Debt issuance costs of $5,791 attributable to the Notes are amortized as interest expense over the contractual term of the loan using the effective interest rate. The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2019 2018 Principal $ 287,500 $ 287,500 Less: Debt issuance costs, net of amortization (3,735) (4,488) Unamortized discount (32,182) (39,335) Net liability carrying amount $ 251,583 $ 243,677 Equity component - net carrying value $ 51,176 $ 51,176 As of December 31, 2019, the estimated fair value of the Exchangeable Senior Notes, which the Company has classified as Level 2 financial instruments are $548,984. The estimated fair value was determined based on the quoted bid price of the Exchangeable Senior Notes in an over-the-counter market on the last trading day of the reporting period. As of December 31, 2019, the difference between the net carrying amount of the Exchangeable Senior Notes and estimated fair value represents the equity conversion value premium the market assigned to this Notes. Based on the closing price of our common stock on December 31, 2019, the if-converted value of the Exchangeable Senior Notes exceeded the principal amount. Interest is payable on the debentures semi-annually at the cash coupon rate; however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company's estimated nonconvertible debt borrowing rate at the time of issuance. Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows: Year Ended December 31, 2019 2018 Amortization of debt issuance costs $ 753 $ 694 Non-cash amortization of debt discount 7,153 6,855 Interest expense 3,594 3,594 Net liability carrying amount $ 11,500 $ 11,143 Effective interest rate 4.68 % 4.68 % Exchangeable notes hedge transactions In connection with the pricing of the Notes, the Company has entered into privately negotiated exchangeable note hedge transactions with some of the initial purchasers and/or their respective affiliates (the "Option Counterparties"). Subject to customary anti-dilution adjustments substantially similar to those applicable to the Notes, the exchangeable note hedge transactions cover partial number of ADSs that will initially underline the Notes. The note hedge transactions are expected generally to reduce potential dilution to the ADSs and/or cash payments the Company is required to make in excess of the principal amount, in each case, upon any exchange of the Notes. A portion of the call-options can be settled upon a surrender of the same amounts of Notes by a holder. Settlement can be done in cash, ADSs or a combination of both, at the Company's election. Concurrently with the Company's entry into the exchangeable note hedge transactions, the Company has entered into warrant transactions with the Option Counterparties relating to the same number of ADSs (3,457,475), with a strike price of $101.82 per ADS, subject to customary anti‑dilution adjustments. The warrants are exercisable for a period of three months as of the notes maturity date. U.S. GAAP requires measuring such transactions as equity components. The Company recorded a net decrease of $20,281 in additional paid-in capita l in 2017 at the initiation of the transaction. |
REPORTABLE SEGMENTS AND GEOGRAP
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION | REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION a. Reportable segments: ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is its Chief Executive Officer. Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,265,113 $ 308,799 $ — $ 1,573,912 Operating income $ 244,599 $ 124,742 $ (130,624) $ 238,717 Year ended December 31, Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,156,142 $ 288,377 $ — $ 1,444,519 Operating income $ 217,796 $ 109,464 $ (129,644) $ 197,616 Year ended December 31, 2017 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,051,350 $ 280,802 $ — $ 1,332,152 Operating income $ 175,247 $ 101,774 $ (126,950) $ 150,071 (1) Includes the results of companies which were acquired in the years 2019, 2018 and 2017 and are being integrated within the Customer Engagement segment. The following table presents property and equipment as of December 31, 2019 and 2018, based on operational segments: December 31, 2019 2018 Customer Engagement $ 126,538 $ 130,425 Financial Crime and Compliance 12,437 8,262 Non-allocated 2,672 1,651 $ 141,647 $ 140,338 b. Geographical information: Total revenues from external customers on the basis of the Company's geographical areas are as follows: Year Ended December 31, 2019 2018 2017 Americas, principally the US $ 1,234,549 $ 1,123,866 $ 1,035,871 EMEA (*) 212,252 202,521 186,268 Israel 3,950 4,402 3,693 Asia Pacific 123,161 113,730 106,320 $ 1,573,912 $ 1,444,519 $ 1,332,152 The following presents property and equipment as of December 31, 2019 and 2018, based on geographical areas: December 31, 2019 2018 Americas, principally the US $ 78,911 $ 90,333 EMEA (*) 3,886 2,947 Israel 51,011 40,076 Asia Pacific 7,839 6,982 $ 141,647 $ 140,338 (*) Includes Europe, the Middle East (excluding Israel) and Africa. |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement Related Disclosures [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | SELECTED STATEMENTS OF INCOME DATA 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS During 2020, the Company acquired two companies for a total consideration of approximately $53,000. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates:The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Financial statements in United States dollars | Financial statements in United States dollars: The currency of the primary economic environment in which the operations of NICE Ltd. and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of NICE Ltd. and certain subsidiaries. NICE Ltd. and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. |
Principles of consolidation | Principles of consolidation:Intercompany transactions and balances have been eliminated upon consolidation. |
Cash equivalents | Cash equivalents:Cash equivalents are short-term unrestricted highly liquid investments that are readily convertible into cash, with original maturities of three |
Marketable securities | Marketable securities: The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income. Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in accumulated other comprehensive income. |
Property and equipment, net | Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 5 - 14 Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. |
Internal use software costs | Internal use software costs:The Company capitalizes development costs incurred during the application development stage that are related to internal use technology that supports its cloud services. Under ASC 350-40, internal-use software is included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Costs incurred in the process of software production are charged to expenses as incurred. |
Other intangible assets, net | Other intangible assets, net: Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 3 – 8 Customer relationships 3 - 7 Trademarks 2 - 12 Customer backlog 2 - 3 |
Impairment of long-lived assets | Impairment of long-lived assets:The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant, and Equipment," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include any significant changes in the manner of the Company's use of the assets and significant negative industry or economic trends.Upon determination that the carrying value of a long-lived asset may not be recoverable based upon a comparison of aggregate undiscounted projected future cash flows to the carrying amount of the asset, an impairment charge is recorded for the excess of the carrying amount over fair value. |
Goodwill | Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, "Intangible - Goodwill and Other" ("ASC 350"), goodwill is not amortized, but rather is subject to an annual impairment test. ASC 350 requires goodwill to be tested for impairment at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. |
Exchangeable senior notes | Exchangeable senior notes:The Company applies ASC 815, "Derivative and Hedging" ("ASC 815"), and ASC 470, "Debt" ("ASC 470"). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company's nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. |
Revenue recognition | Revenue recognition: The Company generates revenues from sales of software products, services and cloud, which include software license, software-as-a-service, network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and training. The Company sells its products directly through its sales force and indirectly through a global network of distributors, system integrators and strategic partners, all of whom are considered end-users. Starting 2018, the Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC 606"). Under the standard, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company perform the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) there is an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services; (ii) the contract has commercial substance; and (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intent to pay, which is based on a variety of factors, including the customer's historical payment experience. 2) Identify the performance obligations in the contract The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e., if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. Payment terms and conditions vary by contract type. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company determines its contracts generally to not include a significant financing component since the Company's selling prices are not subjected to billing terms nor is its purpose to receive financing from its customers or to provide customers with financing. In addition, the Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Revenue is measured based on the consideration specified in a contract with a customer, excluding taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. 4) Allocate the transaction price to the performance obligations in the contract The Company allocates the transaction price to each performance obligation identified based on its relative standalone selling price ("SSP") out of the total consideration of the contract. The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP taking into account available information such as geographic or regional specific factors, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. The Company typically establish SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. SSP for products and services can evolve over time due to changes in Nice Ltd. pricing practices that are influenced by intense competition, changes in demand for products and services, and economic factors, among others. For product where the SSP cannot be determined based on observable prices, given the same products are sold for a broad range of amounts (that is, the selling price is highly variable), the SSP included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to these product revenues. 5) Recognize revenue when (or as) the entity satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to the customer. Software license revenues are recognized at the point in time when the software license is delivered and the customer obtains control of the asset. Support and maintenance service revenues are recognized ratably over the term of the underlying maintenance contract term. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period of the renewal. Professional services revenues are recognized as services are performed. The Company derives its cloud revenues from subscription services, which are comprised of subscription fees from granting customers access to the Company’s cloud computing services and from network connectivity. Revenue from subscription services is recognized either ratably over the contract period or based on usage, and revenue from network connectivity is based on customer call usage and is recognized in the period the call is initiated. |
Costs to obtain contracts | Costs to Obtain Contracts:The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. The Company applies judgment in estimating the amortization period by taking into consideration customer contract terms, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization of sales commission expense is included in Selling and Marketing expenses in the accompanying consolidated statements of income. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Commission expense for the years 2019, 2018 and 2017 were $93,081; $76,776 and $92,166, respectively. |
Research and development costs | Research and development costs:Research and development costs (net of grants and capitalized expenses) incurred in the process of software production are charged to expenses as incurred. |
Income taxes | Income taxes: To prepare our consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates, and in certain of these jurisdictions, it is calculated based on the Company assumptions as to its entitlement to various benefits under the applicable tax laws in the jurisdiction. The entitlement to such benefits depends upon the Company's compliance with the terms and conditions set out in these laws. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets and deferred tax liabilities are presented under long-term assets and long-term liabilities, respectively. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. |
Non-royalty grants | Non-royalty grants:Non-royalty bearing grants from the Government of Israel for funding research and development projects are recognized at the time the Company is entitled to such grants on the basis of the related costs incurred and recorded as a deduction from research and development expenses. |
Concentrations of credit risk | Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents are invested in deposits and money market funds, mainly in dollars with major international banks. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are derived from sales to customers located primarily in North America, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers and insures certain of its receivables with a credit insurance company. A general allowance for doubtful accounts is provided, based on the length of time the receivables are past due. The Company's marketable securities include investment in corporate debentures, U.S. Treasuries and U.S. Government Agencies. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company entered into foreign currency forward and option contracts intended to protect cash flows resulting from payroll and facilities related expenses against the volatility in value of forecasted non-dollar currency. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. See Note 10 for additional information. |
Severance pay | Severance pay: The Israeli Severance Pay Law-1963 (the "Severance Pay Law") generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain circumstances. The Company makes ongoing deposits into Israeli employees' pension plans to fund their severance liabilities. According to Section 14 of the Severance Pay Law, the Company deposits for employees employed by the Company since May 1, 2009 are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities for employees employed by the Company prior to May 1, 2009, as well as employees with special contractual arrangements, are provided for in the financial statements based upon the latest monthly salary multiplied by the number of years of employment. Severance pay expense for 2019, 2018 and 2017 amounted to $7,656, $13,453 and $9,862, respectively. The Company also has other liabilities for severance pay in other jurisdictions. The Company has a 401(k) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 6%-8% of their eligible compensation but generally not greater than annual contribution of $19 in 2019, $18.5 in 2018 and $18 in 2017 (for certain employees over 50 years of age the maximum annual contribution is $25 per year in 2019, $24.5 in 2018 and $24 in 2017) of their total annual compensation to the plan through salary deferrals, subject to IRS limits. The Company matches 50% of employee contributions to the plan up to a limit of 6-8% of their eligible compensation. In the years 2019, 2018 and 2017, the Company recorded an expense for matching contributions in the amount of $8,068; $7,732 and $7,044, respectively. |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allowed it to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine its lease and non-lease components for car leases and to not recognize a lease liability and a right-of-use (“ROU”) asset on the balance sheet for leases with a term of twelve months or less. The Company recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. |
Basic and diluted net earnings per share | Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". As the Company's intention and ability is to settle the convertible debt in cash, the potential issuance of shares related to the convertible debt does not affect diluted shares. |
Accounting for stock-based compensation | Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of stock base compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company recognizes compensation expenses for the value of its awards, which have graded vesting, based on the accelerated attribution method over the requisite service period of each of the awards. The Company account for forfeitures as they occur. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Federal Reserve zero-coupon bonds with an equivalent term; and the expected dividend rate (an annualized dividend yield) is based on the per share dividend declared by the Company's Board of Directors. For information on the Company's dividend payments, see Note 14d The Company measures the fair value of restricted stock based on the market value of the underlying shares at the date of grant. The fair value of certain performance share units with market-based performance conditions granted under the employee equity plan was estimated on the grant date using the Monte Carlo valuation methodology. |
Fair value of financial instruments | Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The Company measures its investments in money market funds classified as cash equivalents, marketable securities and its foreign currency derivative contracts at fair value. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The Company's marketable securities, exchangeable senior notes and foreign currency derivative contracts are classified within Level 2 (see Notes 3, 10 and 15). The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables and trade payables approximate their fair value due to the immediate or short-term maturities of these financial instruments. The carrying amount of the loan approximates its fair value due to the fact that the loan bears a variable interest rate. |
Legal contingencies | Legal contingencies:The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. |
Advertising expenses | Advertising expenses:Advertising expenses are charged to expense as incurred. |
Treasury shares | Treasury shares:The Company repurchases its ordinary shares from time to time on the open market or in other transactions and holds such shares as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. The Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. |
Business combination | Business combination: The Company applies the provisions of ASC 805, "Business Combination" and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected cash flows from customer relationships, acquired technology and acquired trademarks from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. |
Comprehensive income | Comprehensive income:The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments and unrealized gains and losses on available for sale marketable securities and changes in foreign currency translation adjustments. |
Recently adopted accounting standards and recently issued accounting standards, not yet adopted | Recently adopted accounting standards: The Company adopted ASU No. 2016-02 as of January 1, 2019, using the modified retrospective transition method of applying the new standard at the adoption date. Therefore, upon adoption, the Company recognized and measured leases without revising comparative period information or disclosures. Upon adoption, the Company recognized total right of use (“ROU”) assets of $120.6 million, with corresponding lease liabilities of $139.2 million on our consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption did not impact the beginning balance of retained earnings, or prior year consolidated statements of income and statements of cash flows. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies – Leases Liability above and Note 11 - Leases. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” amending the eligibility criteria for hedged items and transactions to expand an entity’s ability to hedge nonfinancial and financial risk components. The new guidance eliminates the requirement to separately measure and present hedge ineffectiveness and aligns the presentation of hedge gains and losses with the underlying hedge item. The new guidance also simplifies the hedge documentation and hedge effectiveness assessment requirements. The amended presentation and disclosure requirements must be adopted on a prospective basis, while any amendments to cash flow and net investment hedge relationships that exist on the date of adoption must be applied on a “modified retrospective” basis, meaning a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the year of adoption . The new guidance was effective on January 1, 2019 and the adoption did not have a material impact on the Company's consolidated financial statements. ac. Recently issued accounting standards, not yet adopte d: In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (ASC 326)" ("ASU 2016-13"). The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be of greater use to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company's consolidated financial statemen ts. In January 2017, the FASB issued ASU 2017-04 "Intangibles - Goodwill and Other (ASC 350): Simplifying the Accounting for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 eliminates step 2 of the goodwill impairment test, which requires the calculation of the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of ASU 2017-04 is not expected to have a significant impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The new standard requires capitalization of the implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalization costs incurred to develop or obtain internal-use software. The new standard also requires presenting the capitalized implementation costs and their related amortization and cash flows on the financial statements in consistent with the prepaid amounts and fees related to the associated cloud computing arrangement. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the module or component of the cloud computing arrangement that is a service contract is ready for its intended use. The standard will be effective for the Company beginning on January 1, 2020, with early adoption permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. The adoption of ASU 2018-15 is not expected to have a significant impact on the Company's consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Depreciation Rates | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual periods ranges: Years Computers and peripheral equipment 3 - 5 Internal use software 3 Office furniture and equipment 5 - 14 |
Schedule of Other Intangible Assets Depreciation Rates | Other intangible assets are amortized over their estimated useful lives using the straight-line method, at the following annual periods ranges: Years Core technology 3 – 8 Customer relationships 3 - 7 Trademarks 2 - 12 Customer backlog 2 - 3 |
Schedule of Accumulated Other Comprehensive Income, Net | The following tables show the components of accumulated other comprehensive income, net of taxes, as of December 31, 2019 and 2018: Year ended December 31, 2019 Unrealized gains (losses) on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,662) $ (2,715) $ (42,239) $ (46,616) Other comprehensive income before reclassifications 6,260 5,495 2,458 14,213 Amounts reclassified from accumulated other comprehensive loss (467) (429) — (896) Net current-period other comprehensive income 5,793 5,066 2,458 13,317 Ending balance $ 4,131 $ 2,351 $ (39,781) $ (33,299) Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gains (losses) on cash flow hedges Foreign currency translation adjustment Total Beginning balance $ (1,070) $ 1,134 $ (32,978) $ (32,914) Other comprehensive loss before reclassifications (574) (8,630) (9,261) (18,483) Amounts reclassified from accumulated other comprehensive income (loss) (18) 4,781 — 4,781 Net current-period other comprehensive loss (592) (3,849) (9,261) (13,702) Ending balance $ (1,662) $ (2,715) $ (42,239) $ (46,616) |
SHORT-TERM AND LONG-TERM INVE_2
SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities | The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2019 and 2018: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (Level 2 within the fair value hierarchy) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Corporate debentures $ 687,886 $ 457,944 $ 4,865 $ 190 $ (271) $ (1,993) $ 692,480 $ 456,141 U.S. Treasuries 23,182 21,943 82 — (2) (226) 23,262 21,717 U.S. Government Agencies 19,957 10,854 38 16 (20) (1) 19,975 10,869 $ 731,025 $ 490,741 $ 4,985 $ 206 $ (293) $ (2,220) $ 735,717 $ 488,727 |
Scheduled Maturities of Available-for-Sale Marketable Securities | The scheduled maturities of available-for-sale marketable securities as of December 31, 2019 are as follows: Amortized Estimated Due within one year $ 192,882 $ 193,328 Due after one year through five years 538,142 542,389 $ 731,025 $ 735,717 |
Schedule of Unrealized Losses and Fair Values | Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2019 and 2018 are as indicated in the following tables: December 31, 2019 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 70,733 $ (117) $ 48,658 $ (154) $ 119,391 $ (271) U.S. Treasuries — — 5,005 (2) 5,005 (2) U.S. Government Agencies 10,974 (20) — — 10,974 (20) $ 81,707 $ (137) $ 53,663 $ (156) $ 135,370 $ (293) December 31, 2018 Investments with continuous unrealized losses for less than 12 months Investments with continuous unrealized losses for 12 months or greater Total Investments with continuous unrealized losses Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Corporate debentures $ 231,845 $ (754) $ 113,870 $ (1,239) $ 345,715 $ (1,993) U.S. Treasuries 14,926 (12) 6,791 (214) 21,717 (226) U.S. Government Agencies 7,932 (1) — — 7,932 (1) $ 254,703 $ (767) $ 120,661 $ (1,453) $ 375,364 $ (2,220) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of prepaid expenses and other current assets | December 31, 2019 2018 Government authorities $ 46,444 $ 30,369 Interest receivable 6,948 2,867 Prepaid expenses 56,008 45,671 Inventories 3,389 3,434 Other 4,183 5,109 $ 116,972 $ 87,450 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | December 31, 2019 2018 Deferred commission costs $ 79,336 $ 57,675 Severance pay fund 13,201 12,575 Long-term deposits and other assets 31,497 3,792 $ 124,034 $ 74,042 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | December 31, 2019 2018 Cost: Computers and peripheral equipment $ 263,128 $ 253,325 Internal use software 105,297 69,452 Office furniture and equipment 13,180 13,060 Leasehold improvements 59,199 57,454 440,804 393,291 Accumulated depreciation: Computers and peripheral equipment 212,471 196,820 Internal use software 41,622 16,597 Office furniture and equipment 8,655 7,717 Leasehold improvements 36,409 31,819 299,157 252,953 Depreciated cost $ 141,647 $ 140,338 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Definite-Lived Other Intangible Assets | Definite-lived other intangible assets: December 31, 2019 2018 Original amounts: Core technology $ 577,692 $ 720,134 Customer relationships, backlog and distribution network 258,137 393,204 Trademarks 44,440 55,896 880,269 1,169,234 Accumulated amortization: Core technology 281,319 372,895 Customer relationships, backlog and distribution network 170,454 264,463 Trademarks 17,477 23,644 469,250 661,002 Other intangible assets, net $ 411,019 $ 508,232 |
Schedule of Estimated Amortization Expense | Estimated amortization expense: For the year ended December 31, 2020 $ 107,543 2021 100,525 2022 81,351 2023 66,195 2024 50,110 Thereafter 5,295 $ 411,019 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Following the Company's acquisitions in 2019 and 2018, as described in Note 1b, the changes in the carrying amount of goodwill allocated to reportable segments for the years ended December 31, 2019 and 2018 are as follows: Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Total As of January 1, 2019 $ 1,103,091 $ 263,115 $ 1,366,206 Acquisitions (*) 9,176 — 9,176 Functional currency translation adjustments 2,413 623 3,036 As of December 31, 2019 $ 1,114,680 $ 263,738 $ 1,378,418 Year ended December 31, 2018 Customer Engagement Financial Crime and Compliance Total As of January 1, 2018 $ 1,053,922 $ 264,320 $ 1,318,242 Acquisitions (*) 54,203 — 54,203 Functional currency translation adjustments (5,034) (1,205) (6,239) As of December 31, 2018 $ 1,103,091 $ 263,115 $ 1,366,206 (*) Including adjustments of $(5,304) and $5,624, resulting from finalization of purchase price allocations with respect to 2019 and 2018, respectively. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | December 31, 2019 2018 Payroll and related expenses $ 179,291 $ 158,185 Accrued expenses 97,325 104,568 Government authorities 101,194 95,535 Other 13,875 15,620 $ 391,685 $ 373,908 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Notional and Fair Value Amounts of Outstanding Derivative Instruments | Notional amount Fair value December 31, December 31, 2019 2018 2019 2018 Option contracts to hedge payroll expenses ILS $ 16,204 $ 73,950 $ 294 $ (2,566) expenses INR 21,904 40,391 800 807 Option contracts to hedge facility expenses ILS 1,273 5,200 19 (137) expenses INR 2,006 3,874 80 80 Forward contracts to hedge payroll expenses ILS 67,139 53,500 1,333 (1,926) expenses INR 10,032 — 50 — expenses PHP 2,362 4,452 64 187 Forward contracts to hedge lease obligations PHP 4,921 — — — Forward contracts to hedge facility expenses ILS 2,546 — 67 — Forward contracts to hedge facility expenses PHP 433 628 12 28 $ 128,820 $ 181,995 $ 2,719 $ (3,527) |
Schedule of Fair Value of Derivative Instruments by Balance Sheet Location | The fair value of the Company's outstanding derivative instruments at December 31, 2019 and 2018 is summarized below: Fair value of derivative instruments December 31, Balance sheet line item 2019 2018 Derivative assets: Foreign exchange option contracts Prepaid expenses and other current assets $ 1,194 $ 888 Foreign exchange forward contracts Prepaid expenses and other current assets 1,525 214 Derivative liabilities: Foreign exchange option contracts Accrued expenses and other liabilities — (2,703) Foreign exchange forward contracts Accrued expenses and other liabilities $ — $ (1,926) |
Schedule of Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income | The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive income for the years ended December 31, 2019, 2018 and 2017 is summarized below: Amount of gain (loss) recognized in Year Ended December 31, 2019 2018 2017 Derivatives in foreign exchange cash flow hedging relationships: Forward contracts $ 2,108 $ (6,059) $ 3,317 Option contracts 3,387 (2,571) 3,504 $ 5,495 $ (8,630) $ 6,821 Derivatives in foreign exchange cash flow hedging relationships: Amount of gain (loss) reclassified from other comprehensive income Year Ended December 31, Statements of income line item 2019 2018 2017 Option contracts to hedge payroll and facility expenses Cost of revenues and operating expenses $ 320 $ 66 $ (2,429) Forward contracts to hedge payroll and facility expenses Cost of revenues, operating expenses and financial expenses (749) 4,715 (3,157) $ (429) $ 4,781 $ (5,586) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Operating cash flows from operating leases $ 23,404 New right-of-use assets obtained in exchange for operating lease obligations $ 4,975 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows : Operating Leases 2020 $ 23,118 2021 20,003 2022 18,926 2023 11,951 2024 9,866 Thereafter 81,472 Total lease payments 165,336 Less imputed interest (40,327) Total $ 125,009 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Year Ended December 31, 2019 Current maturities of operating leases $ 21,519 Long-term operating leases 103,490 Total operating lease liabilities $ 125,009 Weighted-average remaining operating lease term 10.70 Weighted-average discount rate of operating leases 4.95 % |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Net operating losses carryforward and tax credits $ 31,254 $ 88,528 Intra-entity transfer of certain intangible assets ( *) 18,798 — Operating leases liabilities 24,398 — Share based payments 19,017 21,631 Research and development costs 3,645 3,473 Reserves, allowances and other 31,090 21,838 Deferred tax assets before valuation allowance 128,202 135,470 Valuation allowance (9,145) (11,211) Deferred tax assets 119,057 124,259 Deferred tax liabilities: Acquired intangibles (87,711) (126,318) Operating lease right-of-use assets (20,357) — Acquired deferred revenue (760) (2,033) Internal Use Software and other Fixed Assets (14,779) (15,677) Prepaid Compensation Expenses (17,446) (12,062) Deferred tax liabilities (141,053) (156,090) Deferred tax liabilities, net $ (21,996) $ (31,831) (*) During the year ended December 31, 2019, the Company completed an intra-entity transfer of certain intangible assets to a different tax jurisdiction. As a result of the transfer, the Company utilized net operating losses carried forward and consequently released the valuation allowance on certain deferred tax assets, incurred a tax expense on capital gain, released certain deferred tax liabilities and recorded a deferred tax asset. December 31, 2019 2018 Deferred tax assets $ 30,513 $ 12,309 Deferred tax liabilities (52,509) (44,140) Deferred tax liabilities, net $ (21,996) $ (31,831) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year Ended December 31, 2019 2018 2017 Income before taxes on income, as reported in the consolidated statements of income $ 234,273 $ 186,715 $ 129,660 Statutory tax rate in Israel 23.0 % 23.0 % 24.0 % Preferred Enterprise / Preferred Technology Enterprise benefits (*) (7.7) % (13.0) % (16.8) % Changes in valuation allowance 0.7 % — — % Earnings taxed under foreign law 17.9 % (1.8) % (4.6) % Tax settlements and other adjustments 5.8 % 7.0 % 14.3 % U.S. Tax Reform one-time adjustment (1.6) % (23.9) Intangible assets transfer (14.2) % Other (4.9) % 1.1 % (3.5) % Effective tax rate 20.6 % 14.7 % (10.5) % (*) The effect of the benefit resulting from the "Preferred Enterprise/Preferred Technology Enterprise benefits " status on net earnings per ordinary share is as follows: |
Schedule of Effect on Benefit Resulting from "Preferred Enterprise" Status on Net Earnings Per Ordinary Share | Year Ended December 31, 2019 2018 2017 Basic $ 0.29 $ 0.39 $ 0.36 Diluted $ 0.28 $ 0.38 $ 0.35 |
Schedule of Income Before Income Taxes on Income | Income before taxes on income is comprised as follows: Year Ended December 31, 2019 2018 2017 Domestic $ 169,236 $ 193,664 $ 188,070 Foreign 65,037 (6,949) (58,410) $ 234,273 $ 186,715 $ 129,660 |
Schedule of Taxes on Income (Tax Benefit) | Taxes on income (tax benefit) are comprised as follows: Year Ended December 31, 2019 2018 2017 Current $ 60,586 $ 57,549 $ 57,174 Deferred (12,217) (30,172) (70,805) 48,369 27,377 (13,631) Domestic 8,614 29,947 27,673 Foreign 39,755 (2,570) (41,304) $ 48,369 $ 27,377 $ (13,631) Of which: Year Ended December 31, 2019 2018 2017 Domestic taxes: Current $ 29,075 $ 34,370 $ 22,808 Deferred (20,461) (4,423) 4,865 8,614 29,947 27,673 Foreign taxes: Current 31,196 23,179 34,366 Deferred 8,559 (25,749) (75,670) 39,755 (2,570) (41,304) Taxes on income (tax benefit) $ 48,369 $ 27,377 $ (13,631) |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2019 2018 Uncertain tax positions, beginning of year $ 58,560 $ 43,984 Increases/(Decreases) in tax positions for prior years (3,443) 5,121 Increases in tax positions for current year 15,749 13,353 Settlements — (3,471) Expiry of the statute of limitations (5,982) (427) Uncertain tax positions, end of year $ 64,884 $ 58,560 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Assumptions Used to Determine Fair Value of Options Granted | The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2019, 2018 and 2017 was estimated using the following assumptions: 2019 2018 2017 Expected volatility 19.44%-21.54% 21.23%-21.83% 21.69%-22.90% Risk free interest rate 1.43%-2.55% 2.42%-3.04% 1.53%-2.00% Expected dividend — — —% Expected term (in years) 3.5 3.5 3.5 |
Schedule of Stock Option Activity | A summary of the Company's stock options activity and related information for the year ended December 31, 2019, is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term Aggregate intrinsic Outstanding at January 1, 2019 1,184,847 19.82 4.47 104,731 Granted 368,375 17.86 Exercised 319,860 16.46 Cancelled 2,765 25.70 Forfeited 121,161 1.20 Outstanding at December 31, 2019 1,109,436 22.16 4.35 147,545 Exercisable at December 31, 2019 425,433 40.08 3.27 48,955 |
Schedule of Options Outstanding by Exercise Price Range | The options outstanding under the Company's stock option plans as of December 31, 2019 have been separated into ranges of exercise price as follows: Ranges of Options outstanding as of December 31, 2019 Weighted Weighted Options exercisable as of December 31, 2019 Weighted (Years) $ $ $ 0.29 810,121 4.56 0.28 197,163 0.28 $ 6.72-9.89 2,983 4.07 7.20 2,983 7.20 $ 12.45-17.72 398 0.66 14.86 398 14.86 $ 336.02-48.48 50,899 4.13 40.72 34,106 41.16 $ 54.95-80.76 143,780 2.85 71.32 134,079 71.05 $ 85.104-151.63 101,255 4.95 118.55 56,704 106.52 1,109,436 4.47 19.82 425,433 36.24 |
Schedule of Restricted Stock Units Activity | A summary of the Company's RSU and the Company's RSA activities and related information for the year ended December 31, 2019, is as follows: Number of RSU and RSA ( *) Outstanding at January 1, 2019 1,759,070 Granted 545,819 Vested (649,556) Forfeited (118,284) Outstanding at December 31, 2019 1,537,049 |
Schedule of Allocated Share-Based Compensation Expense | The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2019, 2018 and 2017, was comprised as follows: Year ended 2019 2018 2017 Cost of revenues $ 11,244 $ 11,000 $ 11,337 Research and development, net 9,239 7,363 9,038 Selling and marketing 26,650 27,455 23,107 General and administrative 34,897 21,405 13,498 Total stock-based compensation expenses $ 82,030 $ 67,223 $ 56,980 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Component of Debt Liability Carrying Values | The carrying values of the liability's components are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2019 2018 Principal $ 215,000 $ 215,000 Less: Debt issuance costs, net of amortization (1,687) (2,692) Net liability carrying amount $ 213,313 $ 212,308 |
Schedule of Liability Interest Expense | Interest expense related to the liability is reflected on the accompanying consolidated statements of income for the years ended: December 31, 2019 2018 Amortization of debt issuance costs $ 1,004 $ 794 Interest expense 7,676 7,083 Total interest expense recognized $ 8,680 $ 7,877 Effective interest rate 4.01 % 3.80 % Interest expense related to the Notes is reflected on the accompanying consolidated statements of income as follows: Year Ended December 31, 2019 2018 Amortization of debt issuance costs $ 753 $ 694 Non-cash amortization of debt discount 7,153 6,855 Interest expense 3,594 3,594 Net liability carrying amount $ 11,500 $ 11,143 Effective interest rate 4.68 % 4.68 % |
Schedule of Outstanding Exchangeable Note | In January 2017, the Company issued $287,500 aggregate principal amount of Exchangeable Senior Notes (the "Notes") due 2024. The following table summarizes some key facts and terms regarding the outstanding Notes: Due 2024 Issuance date January 18, 2017 Maturity date January 15, 2024 Principal amount $ 287,500 Cash coupon rate (per annum) 1.25 % Conversion rate effective September 15, 2023 (per $1000 principal amount) 12.026 Effective conversion price effective September 15, 2023 (per ADS) $ 83.15 |
Schedule of Carrying Values | The carrying values of the liability and equity components of the Notes are reflected in the Company's accompanying consolidated balance sheets as follows: December 31, 2019 2018 Principal $ 287,500 $ 287,500 Less: Debt issuance costs, net of amortization (3,735) (4,488) Unamortized discount (32,182) (39,335) Net liability carrying amount $ 251,583 $ 243,677 Equity component - net carrying value $ 51,176 $ 51,176 |
REPORTABLE SEGMENTS AND GEOGR_2
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information of The Company's Reportable Segments | Year ended December 31, 2019 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,265,113 $ 308,799 $ — $ 1,573,912 Operating income $ 244,599 $ 124,742 $ (130,624) $ 238,717 Year ended December 31, Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,156,142 $ 288,377 $ — $ 1,444,519 Operating income $ 217,796 $ 109,464 $ (129,644) $ 197,616 Year ended December 31, 2017 Customer Engagement Financial Crime and Compliance Not Total Revenues $ 1,051,350 $ 280,802 $ — $ 1,332,152 Operating income $ 175,247 $ 101,774 $ (126,950) $ 150,071 (1) Includes the results of companies which were acquired in the years 2019, 2018 and 2017 and are being integrated within the Customer Engagement segment. |
Schedule of Long-Lived Assets by Operational Segments | The following table presents property and equipment as of December 31, 2019 and 2018, based on operational segments: December 31, 2019 2018 Customer Engagement $ 126,538 $ 130,425 Financial Crime and Compliance 12,437 8,262 Non-allocated 2,672 1,651 $ 141,647 $ 140,338 |
Schedule of Total Revenues from External Customers by Geographical Areas | Total revenues from external customers on the basis of the Company's geographical areas are as follows: Year Ended December 31, 2019 2018 2017 Americas, principally the US $ 1,234,549 $ 1,123,866 $ 1,035,871 EMEA (*) 212,252 202,521 186,268 Israel 3,950 4,402 3,693 Asia Pacific 123,161 113,730 106,320 $ 1,573,912 $ 1,444,519 $ 1,332,152 |
Schedule of Long-Lived Assets by Geographical Areas | The following presents property and equipment as of December 31, 2019 and 2018, based on geographical areas: December 31, 2019 2018 Americas, principally the US $ 78,911 $ 90,333 EMEA (*) 3,886 2,947 Israel 51,011 40,076 Asia Pacific 7,839 6,982 $ 141,647 $ 140,338 |
SELECTED STATEMENTS OF INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement Related Disclosures [Abstract] | |
Schedule of Research and Development Costs, Net | 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 |
Schedule of Financial Income (Expenses) and Other, Net | 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) |
Schedule of Computation of 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 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) $ in Thousands | Aug. 20, 2018USD ($) | Dec. 31, 2019USD ($)market | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Number of main markets | market | 2 | |||
Goodwill | $ 1,378,418 | $ 1,366,206 | $ 1,318,242 | |
Purchase price | 76,870 | |||
Net tangible liabilities | 2,291 | |||
Identifiable intangible assets | 51,015 | |||
Amount of goodwill | 28,145 | |||
Acquisition costs | 720 | $ 1,249 | $ 970 | |
Mattersight | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 48,579 | |||
Consideration transferred in acquisition | 105,053 | |||
Mattersight | Core Technology | ||||
Business Acquisition [Line Items] | ||||
Assets acquired and liabilities assumed through business combination | $ 50,852 | |||
Mattersight | Core Technology | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 5 years | |||
Mattersight | Core Technology | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 7 years | |||
Mattersight | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Assets acquired and liabilities assumed through business combination | $ 7,757 | |||
Estimated useful life | 7 years | |||
Mattersight | Customer Backlog | ||||
Business Acquisition [Line Items] | ||||
Assets acquired and liabilities assumed through business combination | $ 5,439 | |||
Mattersight | Customer Backlog | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 2 years | |||
Mattersight | Customer Backlog | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 3 years | |||
Series of Individually Immaterial Business And Asset Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Business combination and asset acquisition consideration transferred | 26,671 | |||
Intangible assets identified | 15,683 | |||
Goodwill | $ 14,480 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash equivalents maturities, months | 3 months | |||
Impairment charge | $ 0 | $ 0 | $ 0 | |
Deferred revenue recognized | 226,500,000 | |||
Commission expense | 93,081,000 | 76,776,000 | 92,166,000 | |
Severance pay expense | $ 7,656,000 | 13,453,000 | 9,862,000 | |
Employees over 50 years of age minimum annual contribution per year | 6.00% | |||
Employees over 50 years of age maximum annual contribution per year | 8.00% | |||
Employee contribution amount, max per year | $ 19,000 | 18,500 | 18,000 | |
Employees over 50 years of age maximum annual contribution per year | $ 25,000 | 24,500 | 24,000 | |
Employer matching contribution percentage | 50.00% | |||
Contribution expense | $ 8,068,000 | 7,732,000 | 7,044,000 | |
Advertising expenses | 16,040,000 | $ 13,527,000 | $ 13,543,000 | |
Operating lease right-of-use assets | 106,196,000 | |||
Operating lease liability | $ 125,009,000 | |||
Exchangeable Note Hedge | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Anti-dilutive securities excluded in computation of diluted earnings per share (in shares) | 3,457,475 | |||
Employee Stock Option | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Anti-dilutive securities excluded in computation of diluted earnings per share (in shares) | 4,921 | 108,617 | 62,319 | |
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 120,600,000 | |||
Operating lease liability | $ 139,200,000 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Employer matching contribution percentage | 6.00% | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Employer matching contribution percentage | 8.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computers and peripheral equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Computers and peripheral equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Internal use software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 14 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Intangible Assets Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Core technology | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Core technology | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Customer relationships | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Customer relationships | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Trademarks | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Trademarks | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 12 years |
Customer backlog | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Customer backlog | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Performance Obligations) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 943,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation expected timing of satisfaction period | 24 months |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (46,616) | $ (32,914) | |
Other comprehensive income (loss) before reclassifications | 14,213 | (18,483) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (896) | 4,781 | |
Total other comprehensive income (loss) | 13,317 | (13,702) | $ 13,910 |
Ending balance | (33,299) | (46,616) | (32,914) |
Unrealized gains (losses) on marketable securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,662) | (1,070) | |
Other comprehensive income (loss) before reclassifications | 6,260 | (574) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (467) | (18) | |
Total other comprehensive income (loss) | 5,793 | (592) | |
Ending balance | 4,131 | (1,662) | (1,070) |
Unrealized gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (2,715) | 1,134 | |
Other comprehensive income (loss) before reclassifications | 5,495 | (8,630) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (429) | 4,781 | |
Total other comprehensive income (loss) | 5,066 | (3,849) | |
Ending balance | 2,351 | (2,715) | 1,134 |
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (42,239) | (32,978) | |
Other comprehensive income (loss) before reclassifications | 2,458 | (9,261) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Total other comprehensive income (loss) | 2,458 | (9,261) | |
Ending balance | $ (39,781) | $ (42,239) | $ (32,978) |
SHORT-TERM AND LONG-TERM INVE_3
SHORT-TERM AND LONG-TERM INVESTMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities | $ 735,717 | $ 488,727 |
Short-term bank deposits | $ 17,444 |
SHORT-TERM AND LONG-TERM INVE_4
SHORT-TERM AND LONG-TERM INVESTMENTS (Summary of Amortized Costs, Gross Unrealized Gains and Losses and Estimated Fair Values of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 731,025 | $ 490,741 |
Gross unrealized gains | 4,985 | 206 |
Gross unrealized losses | (293) | (2,220) |
Estimated fair value (Level 2 within the fair value hierarchy) | 735,717 | 488,727 |
Fair Value, Inputs, Level 2 | Corporate debentures | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 687,886 | 457,944 |
Gross unrealized gains | 4,865 | 190 |
Gross unrealized losses | (271) | (1,993) |
Estimated fair value (Level 2 within the fair value hierarchy) | 692,480 | 456,141 |
Fair Value, Inputs, Level 2 | U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 23,182 | 21,943 |
Gross unrealized gains | 82 | 0 |
Gross unrealized losses | (2) | (226) |
Estimated fair value (Level 2 within the fair value hierarchy) | 23,262 | 21,717 |
Fair Value, Inputs, Level 2 | U.S. Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 19,957 | 10,854 |
Gross unrealized gains | 38 | 16 |
Gross unrealized losses | (20) | (1) |
Estimated fair value (Level 2 within the fair value hierarchy) | $ 19,975 | $ 10,869 |
SHORT-TERM AND LONG-TERM INVE_5
SHORT-TERM AND LONG-TERM INVESTMENTS (Scheduled Maturities of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due within one year | $ 192,882 | |
Amortized cost, due after one year through five years | 538,142 | |
Amortized cost | 731,025 | $ 490,741 |
Estimated fair value, due within one year | 193,328 | |
Estimated fair value, due after one year through five years | 542,389 | |
Available-for-sale total | $ 735,717 | $ 488,727 |
SHORT-TERM AND LONG-TERM INVE_6
SHORT-TERM AND LONG-TERM INVESTMENTS (Summary of Continuous Unrealized Losses and Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | $ 81,707 | $ 254,703 |
Unrealized losses, less than 12 months | (137) | (767) |
Fair value,12 months or greater | 53,663 | 120,661 |
Unrealized losses, 12 months or greater | (156) | (1,453) |
Fair value, Total | 135,370 | 375,364 |
Unrealized losses, Total | (293) | (2,220) |
Corporate debentures | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 70,733 | 231,845 |
Unrealized losses, less than 12 months | (117) | (754) |
Fair value,12 months or greater | 48,658 | 113,870 |
Unrealized losses, 12 months or greater | (154) | (1,239) |
Fair value, Total | 119,391 | 345,715 |
Unrealized losses, Total | (271) | (1,993) |
U.S. Treasuries | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 0 | 14,926 |
Unrealized losses, less than 12 months | 0 | (12) |
Fair value,12 months or greater | 5,005 | 6,791 |
Unrealized losses, 12 months or greater | (2) | (214) |
Fair value, Total | 5,005 | 21,717 |
Unrealized losses, Total | (2) | (226) |
U.S. Government Agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value, less than 12 months | 10,974 | 7,932 |
Unrealized losses, less than 12 months | (20) | (1) |
Fair value,12 months or greater | 0 | 0 |
Unrealized losses, 12 months or greater | 0 | 0 |
Fair value, Total | 10,974 | 7,932 |
Unrealized losses, Total | $ (20) | $ (1) |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Schedule of Other Receivables and Prepaid Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets [Abstract] | ||
Government authorities | $ 46,444 | $ 30,369 |
Interest receivable | 6,948 | 2,867 |
Prepaid expenses | 56,008 | 45,671 |
Inventories | 3,389 | 3,434 |
Other | 4,183 | 5,109 |
Prepaid expenses and other current assets | $ 116,972 | $ 87,450 |
OTHER LONG-TERM ASSETS (Schedul
OTHER LONG-TERM ASSETS (Schedule of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deferred commission costs | $ 79,336 | $ 57,675 |
Severance pay fund | 13,201 | 12,575 |
Long-term deposits and other assets | 31,497 | 3,792 |
Other long-term assets | $ 124,034 | $ 74,042 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 440,804 | $ 393,291 |
Accumulated depreciation | 299,157 | 252,953 |
Depreciated cost | 141,647 | 140,338 |
Computers and peripheral equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 263,128 | 253,325 |
Accumulated depreciation | 212,471 | 196,820 |
Internal use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 105,297 | 69,452 |
Accumulated depreciation | 41,622 | 16,597 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 13,180 | 13,060 |
Accumulated depreciation | 8,655 | 7,717 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 59,199 | 57,454 |
Accumulated depreciation | $ 36,409 | $ 31,819 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 60,174 | $ 49,963 | $ 37,924 |
Equipment and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Reduction in costs | 18,653 | 11,485 | |
Reduction in accumulated depreciation | $ 18,653 | $ 11,485 |
OTHER INTANGIBLE ASSETS, NET (S
OTHER INTANGIBLE ASSETS, NET (Schedule of Definite-Lived Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | $ 880,269 | $ 1,169,234 |
Accumulated amortization | 469,250 | 661,002 |
Other intangible assets, net | 411,019 | 508,232 |
Core technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 577,692 | 720,134 |
Accumulated amortization | 281,319 | 372,895 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 258,137 | 393,204 |
Accumulated amortization | 170,454 | 264,463 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 44,440 | 55,896 |
Accumulated amortization | $ 17,477 | $ 23,644 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 42,383 | $ 42,276 | $ 41,902 |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 113,056 | $ 107,179 | $ 118,377 |
OTHER INTANGIBLE ASSETS, NET _2
OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2020 | $ 107,543 |
2021 | 100,525 |
2022 | 81,351 |
2023 | 66,195 |
2024 | 50,110 |
Thereafter | 5,295 |
Estimated amortization expense | $ 411,019 |
GOODWILL (Schedule of Goodwill)
GOODWILL (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | $ 1,366,206 | $ 1,318,242 |
Acquisitions | 9,176 | 54,203 |
Functional currency translation adjustments | 3,036 | (6,239) |
Ending balance, as of December 31 | 1,378,418 | 1,366,206 |
Customer Engagement | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 1,103,091 | 1,053,922 |
Acquisitions | 9,176 | 54,203 |
Functional currency translation adjustments | 2,413 | (5,034) |
Ending balance, as of December 31 | 1,114,680 | 1,103,091 |
Financial Crime and Compliance | ||
Goodwill [Line Items] | ||
Beginning balance, as of January 1 | 263,115 | 264,320 |
Acquisitions | 0 | 0 |
Functional currency translation adjustments | 623 | (1,205) |
Ending balance, as of December 31 | $ 263,738 | $ 263,115 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
inContact | ||
Adjusted goodwill | $ (5,304) | $ 5,624 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 179,291 | $ 158,185 |
Accrued expenses | 97,325 | 104,568 |
Government authorities | 101,194 | 95,535 |
Other | 13,875 | 15,620 |
Accrued expenses and other liabilities | $ 391,685 | $ 373,908 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional amount | $ 128,820 | $ 181,995 |
Fair value | 2,719 | (3,527) |
Option Contracts To Hedge Payroll Expenses ILS | ||
Derivative [Line Items] | ||
Notional amount | 16,204 | 73,950 |
Option Contracts To Hedge Payroll Expenses ILS | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 294 | (2,566) |
Option Contracts To Hedge Payroll Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 21,904 | 40,391 |
Option Contracts To Hedge Payroll Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 800 | 807 |
Option Contracts to Hedge Facility Expenses ILS | ||
Derivative [Line Items] | ||
Notional amount | 1,273 | 5,200 |
Option Contracts to Hedge Facility Expenses ILS | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 19 | (137) |
Option Contracts to Hedge Facility Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 2,006 | 3,874 |
Option Contracts to Hedge Facility Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 80 | 80 |
Forward Contracts to Hedge Payroll Expenses ILS | ||
Derivative [Line Items] | ||
Notional amount | 67,139 | 53,500 |
Forward Contracts to Hedge Payroll Expenses ILS | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 1,333 | (1,926) |
Forward Contracts to Hedge Payroll Expenses INR | ||
Derivative [Line Items] | ||
Notional amount | 10,032 | 0 |
Forward Contracts to Hedge Payroll Expenses INR | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 50 | 0 |
Forward Contracts to Hedge Payroll Expenses PHP | ||
Derivative [Line Items] | ||
Notional amount | 2,362 | 4,452 |
Forward Contracts to Hedge Payroll Expenses PHP | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 64 | 187 |
Forward contracts to hedge lease obligations PHP | ||
Derivative [Line Items] | ||
Notional amount | 4,921 | 0 |
Forward contracts to hedge lease obligations PHP | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 0 | 0 |
Forward contracts to hedge facility expenses ILS | ||
Derivative [Line Items] | ||
Notional amount | 2,546 | 0 |
Forward contracts to hedge facility expenses ILS | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | 67 | 0 |
Forward Contracts to Hedge Facility Expenses PHP | ||
Derivative [Line Items] | ||
Notional amount | 433 | 628 |
Forward Contracts to Hedge Facility Expenses PHP | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Fair value | $ 12 | $ 28 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Expenses And Other Liabilities | Foreign Exchange Option | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 0 | $ (2,703) |
Accrued Expenses And Other Liabilities | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative liabilities | 0 | (1,926) |
Foreign Exchange Option | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative assets | 1,194 | 888 |
Foreign Exchange Forward | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Derivative assets | $ 1,525 | $ 214 |
DERIVATIVE INSTRUMENTS (Effect
DERIVATIVE INSTRUMENTS (Effect of Derivative Instruments in Cash Flow Hedging Relationship on Income and Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | $ 5,495 | ||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | $ (8,630) | $ 6,821 | |
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | 429 | ||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | (4,781) | 5,586 | |
Foreign Exchange Option | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | 3,387 | ||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | (2,571) | 3,504 | |
Foreign Exchange Option | Cost Of Revenues, Operating Expenses and Discontinued Operations | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | 320 | ||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | 66 | (2,429) | |
Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | 2,108 | ||
Amount of gain (loss) recognized in other comprehensive income on derivative, net of tax (effective portion) | (6,059) | 3,317 | |
Foreign Exchange Forward | Cost of revenues | |||
Derivative [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | $ (749) | ||
Amount of gain (loss) reclassified from other comprehensive income into income (expenses), net of tax (effective portion) | $ 4,715 | $ (3,157) |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 22,528 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 23,404 |
New right-of-use assets obtained in exchange for operating lease obligations | $ 4,975 |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2020 | $ 23,118 |
2021 | 20,003 |
2022 | 18,926 |
2023 | 11,951 |
2024 | 9,866 |
Thereafter | 81,472 |
Total lease payments | 165,336 |
Less imputed interest | (40,327) |
Total | $ 125,009 |
LEASES (Schedule of Supplemen_2
LEASES (Schedule of Supplemental Balance Sheet Information) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Current maturities of operating leases | $ 21,519 |
Long-term operating leases | 103,490 |
Total operating lease liabilities | $ 125,009 |
Weighted-average remaining operating lease term | 10 years 8 months 12 days |
Weighted-average discount rate of operating leases | 4.95% |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Other Commitments) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Agreements With Suppliers To Purchase Licenses And Hosting Services | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Non-cancelable obligations | $ 65,374 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)installment | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Tax rate | 23.00% | 23.00% | 24.00% |
Federal and state income taxes rate | 25.00% | ||
Tax loss carry-forwards | $ 151,959 | ||
Tax loss carry-forwards that have no expiration date | 73,011 | ||
Accrued interest related to income tax uncertainties | $ 3,889 | $ 501 | |
Encouragement of Industry | |||
Income Tax Examination [Line Items] | |||
Number of annual installments for deduction of public offering expenses | installment | 3 | ||
Amortization period of purchased know-how and patents | 8 years | ||
Non-Israeli Subsidiaries | |||
Income Tax Examination [Line Items] | |||
Undistributed earnings | $ 788,728 | ||
Unrecognized deferred tax liability | $ 115,505 | ||
From 2015 through 2016 | The election | |||
Income Tax Examination [Line Items] | |||
Tax rate | 16.00% | ||
2017 and thereafter | The election | |||
Income Tax Examination [Line Items] | |||
Tax rate | 12.00% | ||
2019 | Income not eligible for Preferred Enterprise benefits | |||
Income Tax Examination [Line Items] | |||
Tax rate | 23.00% | ||
2018 | Income not eligible for Preferred Enterprise benefits | |||
Income Tax Examination [Line Items] | |||
Tax rate | 23.00% | ||
2017 | Income not eligible for Preferred Enterprise benefits | |||
Income Tax Examination [Line Items] | |||
Tax rate | 24.00% | ||
2012 | |||
Income Tax Examination [Line Items] | |||
Tax rate | 20.00% |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses carryforward and tax credits | $ 31,254 | $ 88,528 |
Intra-entity transfer of certain intangible assets (*) | 18,798 | 0 |
Operating leases liabilities | 24,398 | |
Share based payments | 19,017 | 21,631 |
Research and development costs | 3,645 | 3,473 |
Reserves, allowances and other | 31,090 | 21,838 |
Deferred tax assets before valuation allowance | 128,202 | 135,470 |
Valuation allowance | (9,145) | (11,211) |
Deferred tax assets | 119,057 | 124,259 |
Deferred tax liabilities: | ||
Acquired intangibles | (87,711) | (126,318) |
Operating lease right-of-use assets | (20,357) | |
Acquired deferred revenue | (760) | (2,033) |
Internal Use Software and other Fixed Assets | (14,779) | (15,677) |
Prepaid Compensation Expenses | (17,446) | (12,062) |
Deferred tax liabilities | (141,053) | (156,090) |
Deferred tax liabilities, net | (21,996) | (31,831) |
Deferred tax assets | 30,513 | 12,309 |
Deferred tax liabilities | $ (52,509) | $ (44,140) |
TAXES ON INCOME (Schedule of Ef
TAXES ON INCOME (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income, as reported in the consolidated statements of income | $ 234,273 | $ 186,715 | $ 129,660 |
Statutory tax rate in Israel | 23.00% | 23.00% | 24.00% |
Preferred Enterprise / Preferred Technology Enterprise benefits | (7.70%) | (13.00%) | (16.80%) |
Changes in valuation allowance | 0.70% | 0.00% | 0.00% |
Earnings taxed under foreign law | 17.90% | (1.80%) | (4.60%) |
Tax settlements and other adjustments | 5.80% | 7.00% | 14.30% |
U.S. Tax Reform one-time adjustment | (1.60%) | (23.90%) | |
Intangible assets transfer | (14.20%) | ||
Other | (4.90%) | 1.10% | (3.50%) |
Effective tax rate | 20.60% | 14.70% | (10.50%) |
TAXES ON INCOME (Schedule of _2
TAXES ON INCOME (Schedule of Effect on Benefit Resulting from "Preferred Enterprise" Status on Net Earnings Per Ordinary Share) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Entity Information [Line Items] | |||
Basic earnings per share (in usd per share) | $ 2.99 | $ 2.60 | $ 2.37 |
Diluted earnings per share (in usd per share) | 2.88 | 2.52 | 2.31 |
Approved, Privileged and Preferred Enterprise | |||
Entity Information [Line Items] | |||
Basic earnings per share (in usd per share) | 0.29 | 0.39 | 0.36 |
Diluted earnings per share (in usd per share) | $ 0.28 | $ 0.38 | $ 0.35 |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income before Income Tax, Domestic And Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Income before taxes on income | $ 234,273 | $ 186,715 | $ 129,660 |
Domestic | |||
Income Tax Examination [Line Items] | |||
Income before taxes on income | 169,236 | 193,664 | 188,070 |
Foreign | |||
Income Tax Examination [Line Items] | |||
Income before taxes on income | $ 65,037 | $ (6,949) | $ (58,410) |
TAXES ON INCOME (Schedule of Ta
TAXES ON INCOME (Schedule of Taxes on Income) (Current and Deferred) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Current | $ 60,586 | $ 57,549 | $ 57,174 |
Deferred | (12,217) | (30,172) | (70,805) |
Taxes on income (tax benefit) | 48,369 | 27,377 | (13,631) |
Domestic | 8,614 | 29,947 | 27,673 |
Foreign | 39,755 | (2,570) | (41,304) |
Domestic | |||
Income Tax Examination [Line Items] | |||
Current | 29,075 | 34,370 | 22,808 |
Deferred | (20,461) | (4,423) | 4,865 |
Taxes on income (tax benefit) | 8,614 | 29,947 | 27,673 |
Foreign | |||
Income Tax Examination [Line Items] | |||
Current | 31,196 | 23,179 | 34,366 |
Deferred | 8,559 | (25,749) | (75,670) |
Taxes on income (tax benefit) | $ 39,755 | $ (2,570) | $ (41,304) |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Uncertain tax positions, beginning of year | $ 58,560 | $ 43,984 |
Decreases in tax positions for prior years | (3,443) | |
Increases in tax positions for prior years | 5,121 | |
Increases in tax positions for current year | 15,749 | 13,353 |
Settlements | 0 | (3,471) |
Expiry of the statute of limitations | (5,982) | (427) |
Uncertain tax positions, end of year | $ 64,884 | $ 58,560 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 12, 2020 | Jan. 10, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of consecutive calendar days preceding option grant date used in calculating the average closing price of one american depository share | 30 days | |||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit | $ 131,459 | |||||
Unrecognized compensation expense related to non-vested stock options and restricted stock unit, expected to be recognized, years | 4 years | |||||
Cash dividend paid (in usd per share) | $ 0 | $ 0 | $ 0.16 | |||
Dividends declared (in usd per share) | $ 0 | 0 | 0.16 | |||
Treasury Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 150,000 | |||||
Treasury Stock | Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 200,000 | |||||
2016 Share Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of stock options exercisable after one year from grant date | 25.00% | |||||
Percentage of stock options exercisable, quarterly | 6.25% | |||||
Vesting period | 3 years | |||||
Percentage of restricted share units that vest annually | 25.00% | |||||
Expiration period | 6 years | |||||
Percentage of entity's issued and outstanding share capital used to determine maximum number of shares subject to awards granted | 3.00% | |||||
Options and restricted shares granted (in shares) | 914,194 | |||||
Price of options, as a percent of fair market value of ordinary shares | 1.48% | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options and restricted shares granted (in shares) | 368,375 | |||||
Weighted-average grant-date fair value, options granted (in usd per share) | $ 121.21 | $ 89.54 | $ 61.54 | |||
Total intrinsic value, options exercised | $ 87,872 | $ 68,749 | $ 42,592 | |||
Performance Shares | 2016 Share Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 7 years |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Option Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |||
Expected volatility, minimum | 19.44% | 21.23% | 21.69% |
Expected volatility, maximum | 21.54% | 21.83% | 22.90% |
Risk free interest rate, minimum | 1.43% | 2.42% | 1.53% |
Risk free interest rate, maximum | 2.55% | 3.04% | 2.00% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 3 years 6 months | 3 years 6 months | 3 years 6 months |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance (in shares) | 1,184,847 | |
Granted (in shares) | 368,375 | |
Exercised (in shares) | 319,860 | |
Cancelled (in shares) | 2,765 | |
Forfeited (in shares) | 121,161 | |
Ending balance (in shares) | 1,109,436 | 1,184,847 |
Exercisable (in shares) | 425,433 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning balance (in usd per share) | $ 19.82 | |
Granted (in usd per share) | 17.86 | |
Exercised (in usd per share) | 16.46 | |
Cancelled (in usd per share) | 25.70 | |
Forfeited (in usd per share) | 1.20 | |
Ending balance (in usd per share) | 22.16 | $ 19.82 |
Exercisable (in usd per share) | $ 40.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding at December 31 | 4 years 4 months 6 days | 4 years 5 months 19 days |
Exercisable | 3 years 3 months 7 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 104,731 | |
Outstanding at December 31 | 147,545 | $ 104,731 |
Exercisable | $ 48,955 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule of Options Outstanding by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | shares | 1,109,436 |
Weighted average remaining contractual term (years) | 4 years 5 months 19 days |
Weighted average exercise price (in usd per share) | $ 19.82 |
Options Exercisable (in shares) | shares | 425,433 |
Weighted average exercise price of options exercisable (in usd per share) | $ 36.24 |
0.29 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 0.29 |
Range of exercise price, upper (in usd per share) | $ 0.29 |
Options outstanding (in shares) | shares | 810,121 |
Weighted average remaining contractual term (years) | 4 years 6 months 21 days |
Weighted average exercise price (in usd per share) | $ 0.28 |
Options Exercisable (in shares) | shares | 197,163 |
Weighted average exercise price of options exercisable (in usd per share) | $ 0.28 |
6.72-9.89 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 6.72 |
Range of exercise price, upper (in usd per share) | $ 9.89 |
Options outstanding (in shares) | shares | 2,983 |
Weighted average remaining contractual term (years) | 4 years 25 days |
Weighted average exercise price (in usd per share) | $ 7.20 |
Options Exercisable (in shares) | shares | 2,983 |
Weighted average exercise price of options exercisable (in usd per share) | $ 7.20 |
12.45-17.72 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 12.45 |
Range of exercise price, upper (in usd per share) | $ 17.72 |
Options outstanding (in shares) | shares | 398 |
Weighted average remaining contractual term (years) | 7 months 28 days |
Weighted average exercise price (in usd per share) | $ 14.86 |
Options Exercisable (in shares) | shares | 398 |
Weighted average exercise price of options exercisable (in usd per share) | $ 14.86 |
336.02-48.48 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 336.02 |
Range of exercise price, upper (in usd per share) | $ 48.48 |
Options outstanding (in shares) | shares | 50,899 |
Weighted average remaining contractual term (years) | 4 years 1 month 17 days |
Weighted average exercise price (in usd per share) | $ 40.72 |
Options Exercisable (in shares) | shares | 34,106 |
Weighted average exercise price of options exercisable (in usd per share) | $ 41.16 |
54.95-80.76 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 54.95 |
Range of exercise price, upper (in usd per share) | $ 80.76 |
Options outstanding (in shares) | shares | 143,780 |
Weighted average remaining contractual term (years) | 2 years 10 months 6 days |
Weighted average exercise price (in usd per share) | $ 71.32 |
Options Exercisable (in shares) | shares | 134,079 |
Weighted average exercise price of options exercisable (in usd per share) | $ 71.05 |
85.104-151.63 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, lower (in usd per share) | 85.104 |
Range of exercise price, upper (in usd per share) | $ 151.63 |
Options outstanding (in shares) | shares | 101,255 |
Weighted average remaining contractual term (years) | 4 years 11 months 12 days |
Weighted average exercise price (in usd per share) | $ 118.55 |
Options Exercisable (in shares) | shares | 56,704 |
Weighted average exercise price of options exercisable (in usd per share) | $ 106.52 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Units Activity) (Details) - Restricted Stock Awards And Restricted Stock Units | 12 Months Ended |
Dec. 31, 2019₪ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | 1,759,070 |
Granted (in shares) | 545,819 |
Vested (in shares) | (649,556) |
Forfeited (in shares) | (118,284) |
Ending balance (in shares) | 1,537,049 |
Par value NIS (in usd per share) | ₪ / shares | ₪ 1 |
Par value USD (in usd per share) | ₪ / shares | ₪ 0.29 |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 82,030 | $ 67,223 | $ 56,980 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 11,244 | 11,000 | 11,337 |
Research and development, net | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 9,239 | 7,363 | 9,038 |
Selling and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 26,650 | 27,455 | 23,107 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 34,897 | $ 21,405 | $ 13,498 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | Dec. 31, 2021 | Nov. 13, 2016 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 14, 2016 |
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 1,667,000 | ||||||
Exchange price threshold percentage for 20 trading days out of 30 consecutive trading days | 130.00% | ||||||
Adjustments to additional paid in capital, other | $ 783,000 | $ 20,281,000 | |||||
Fair Value, Inputs, Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | $ 548,984,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum revolving credit loan amount | $ 75,000 | ||||||
Member Units | |||||||
Debt Instrument [Line Items] | |||||||
Number of exchangeable note shares (in shares) | 3,457,475 | ||||||
Strike price (in usd per share) | $ 101.82 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 5,791,000 | ||||||
Term Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 215,000,000 | $ 475,000,000 | |||||
Prepaid principal amount | $ 260,000,000 | ||||||
Debt issuance costs | $ 5,300,000 | 10,158,000 | |||||
Term Debt | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal amount | $ 215,000,000 | ||||||
Term Debt | Senior Notes | Member Units | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 75,000,000 | ||||||
Term Debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.25% | ||||||
Term Debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Term Debt | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable rate | 1.00% | ||||||
Term Debt | Federal Funds Effective Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable rate | 1.00% | ||||||
Term Debt | Eurocurrency loans ranges | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Total net leverage ratio | 1.25% | ||||||
Term Debt | Eurocurrency loans ranges | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Total net leverage ratio | 2.00% | ||||||
Term Debt | ABR loans ranges | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Total net leverage ratio | 0.25% | ||||||
Term Debt | ABR loans ranges | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Total net leverage ratio | 1.00% |
DEBT (Schedule of Component of
DEBT (Schedule of Component of Term Debt Liability Carrying Values) (Details) - Term Debt - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 215,000 | $ 215,000 |
Less: Debt issuance costs, net of amortization | (1,687) | (2,692) |
Net carrying amount | $ 213,313 | $ 212,308 |
DEBT (Schedule of Liability Int
DEBT (Schedule of Liability Interest Expense) (Details) - Term Debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Amortization of debt issuance costs | $ 1,004 | $ 794 |
Interest expense | 7,676 | 7,083 |
Total interest expense recognized | $ 8,680 | $ 7,877 |
Effective interest rate | 4.01% | 3.80% |
DEBT (Schedule of Outstanding E
DEBT (Schedule of Outstanding Exchangeable) (Details) - Exchangeable Notes | 1 Months Ended |
Jan. 31, 2017USD ($)$ / shares | |
Debt Instrument [Line Items] | |
Principal amount | $ | $ 287,500,000 |
Cash coupon rate (per annum) | 1.25% |
Conversion rate effective September 15, 2023 (per $1000 principal amount) | 0.012026 |
Effective conversion price effective September 15, 2023 (per ADS) (in usd per share) | $ / shares | $ 83.15 |
DEBT (Schedule of Carrying Valu
DEBT (Schedule of Carrying Values) (Details) (USD $) - Exchangeable Notes - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2017 |
Debt Instrument [Line Items] | |||
Principal | $ 287,500,000 | $ 287,500,000 | $ 287,500,000 |
Less: Debt issuance costs, net of amortization | (3,735,000) | (4,488,000) | |
Unamortized discount | (32,182,000) | (39,335,000) | |
Net liability carrying amount | 251,583,000 | 243,677,000 | |
Equity component - net carrying value | $ 51,176,000 | $ 51,176,000 |
DEBT (Schedule of Interest Expe
DEBT (Schedule of Interest Expense Related) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Non-cash amortization of debt discount | $ 9,236 | $ 8,670 | $ 13,547 |
Exchangeable Notes | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 753 | 694 | |
Non-cash amortization of debt discount | 7,153 | 6,855 | |
Interest expense | 3,594 | 3,594 | |
Total interest expense recognized | $ 11,500 | $ 11,143 | |
Effective interest rate | 4.68% | 4.68% |
REPORTABLE SEGMENTS AND GEOGR_3
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Financial Information of The Company's Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,573,912 | $ 1,444,519 | $ 1,332,152 |
Operating income (loss) | 238,717 | 197,616 | 150,071 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating income (loss) | (130,624) | (129,644) | (126,950) |
Customer Engagement | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,265,113 | 1,156,142 | 1,051,350 |
Operating income (loss) | 244,599 | 217,796 | 175,247 |
Financial Crime and Compliance | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 308,799 | 288,377 | 280,802 |
Operating income (loss) | $ 124,742 | $ 109,464 | $ 101,774 |
REPORTABLE SEGMENTS AND GEOGR_4
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 141,647 | $ 140,338 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,672 | 1,651 |
Customer Engagement | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 126,538 | 130,425 |
Financial Crime and Compliance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 12,437 | $ 8,262 |
REPORTABLE SEGMENTS AND GEOGR_5
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Total Revenues from External Customers by Geographical Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,573,912 | $ 1,444,519 | $ 1,332,152 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,234,549 | 1,123,866 | 1,035,871 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 212,252 | 202,521 | 186,268 |
ISRAEL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,950 | 4,402 | 3,693 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 123,161 | $ 113,730 | $ 106,320 |
REPORTABLE SEGMENTS AND GEOGR_6
REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 141,647 | $ 140,338 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 78,911 | 90,333 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,886 | 2,947 |
ISRAEL | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 51,011 | 40,076 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 7,839 | $ 6,982 |
SELECTED STATEMENTS OF INCOME_3
SELECTED STATEMENTS OF INCOME DATA (Schedule of Research and Development Costs, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Related Disclosures [Abstract] | |||
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) |
Research and development, net | $ 193,718 | $ 183,830 | $ 181,107 |
SELECTED STATEMENTS OF INCOME_4
SELECTED STATEMENTS OF INCOME DATA (Schedule of Financial Income and Other, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Related Disclosures [Abstract] | |||
Interest and amortization/accretion of premium/discount on marketable securities, net | $ 16,678 | $ 7,521 | $ 2,537 |
Exchange rates differences | 0 | 0 | 241 |
Realized gain on marketable securities | 0 | 0 | 0 |
Interest | 3,855 | 3,778 | 1,149 |
Financial income | 20,533 | 11,299 | 3,927 |
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) | 0 |
Other | (2,186) | (1,936) | (1,518) |
Financial expense | (24,937) | (22,238) | (24,319) |
Other expenses, net | (40) | 38 | (19) |
Financial income and other, net | $ (4,444) | $ (10,901) | $ (20,411) |
SELECTED STATEMENTS OF INCOME_5
SELECTED STATEMENTS OF INCOME DATA (Schedule of Net Earnings Per Share) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Related Disclosures [Abstract] | |||
Net income to ordinary shareholders | $ 185,904 | $ 159,338 | $ 143,291 |
Weighted average number of shares | 62,120 | 61,387 | 60,444 |
Effect of dilutive securities: Add - employee stock options and RSU (in shares) | 1,682 | 1,785 | 1,675 |
Warrants issued in the exchangeable notes transaction (in shares) | 859 | 137 | 0 |
Denominator for diluted net earnings per share - adjusted weighted average shares (in shares) | 64,661 | 63,309 | 62,119 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event $ in Thousands | 3 Months Ended |
Apr. 06, 2020USD ($)business | |
Subsequent Event [Line Items] | |
Number of businesses acquired | business | 2 |
2020 Business Acquisitions | |
Subsequent Event [Line Items] | |
Consideration transferred in acquisition | $ | $ 53,000 |