Mellanox Technologies 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 26, 2018
Document and Entity Information
Entity Registrant Name	Mellanox Technologies, Ltd.
Trading Symbol	MLNX
Entity Central Index Key	1,356,104
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,520,741
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 64,248	$ 62,473
Short-term investments	285,955	211,281
Accounts receivable, net	142,772	154,213
Inventories	105,049	64,657
Other current assets	14,675	14,295
Total current assets	612,699	506,919
Property and equipment, net	105,007	109,919
Severance assets	17,780	18,302
Intangible assets, net	194,540	228,195
Goodwill	473,916	472,437
Deferred taxes and other long-term assets	99,835	66,162
Total assets	1,503,777	1,401,934
Current liabilities:
Accounts payable	72,922	59,090
Accrued liabilities	100,426	114,058
Deferred revenue	20,326	23,485
Total current liabilities	193,674	196,633
Accrued severance	22,603	23,205
Deferred revenue	17,829	17,820
Term debt	0	72,761
Other long-term liabilities	35,768	34,067
Total liabilities	269,874	344,486
Commitments and Contingencies - (see Note 8)
Shareholders’ equity:
Ordinary shares: NIS 0.0175 par value, 200,000 shares authorized, 53,517 and 51,488 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	232	221
Additional paid-in capital	956,281	873,979
Accumulated other comprehensive income (loss)	(167)	1,618
Retained earnings	277,557	181,630
Total shareholders’ equity	1,233,903	1,057,448
Total liabilities and shareholders' equity	$ 1,503,777	$ 1,401,934

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - ₪ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Ordinary shares, par value (in NIS per share)	₪ 0.0175	₪ 0.0175
Ordinary shares, shares authorized (in shares)	200,000,000	200,000,000
Ordinary shares, shares issued (in shares)	53,517,000	51,488,000
Ordinary shares, shares outstanding (in shares)	53,517,000	51,488,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Total revenues	$ 279,211	$ 225,699	$ 798,673	$ 626,312
Cost of revenues	95,562	77,335	288,228	215,212
Gross profit	183,649	148,364	510,445	411,100
Operating expenses:
Research and development	92,930	90,916	266,508	271,755
Sales and marketing	36,344	37,829	111,511	111,696
General and administrative	13,895	13,039	54,046	38,034
Restructuring and impairment charges	947	0	10,308	0
Total operating expenses	144,116	141,784	442,373	421,485
Income (loss) from operations	39,533	6,580	68,072	(10,385)
Interest expense	(66)	(2,016)	(2,108)	(6,005)
Other income, net	1,112	956	2,283	2,466
Interest and other, net	1,046	(1,060)	175	(3,539)
Income (loss) before taxes on income	40,579	5,520	68,247	(13,924)
Provision for (benefit from) taxes on income	3,522	2,117	(23,179)	2,908
Net income (loss)	$ 37,057	$ 3,403	$ 91,426	$ (16,832)
Net income (loss) per share - basic (in USD per share)	$ 0.70	$ 0.07	$ 1.74	$ (0.34)
Net income (loss) per share - diluted (in USD per share)	$ 0.68	$ 0.07	$ 1.68	$ (0.34)
Shares used in computing net income (loss) per share:
Basic (in shares)	53,232	50,587	52,560	49,999
Diluted (in shares)	54,612	51,575	54,383	49,999

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 37,057	$ 3,403	$ 91,426	$ (16,832)
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on available-for-sale securities, net of tax	134	(11)	54	11
Change in unrealized gains (losses) on derivative contracts, net of tax	1,881	(2,689)	(1,839)	2,053
Other comprehensive income (loss), net of tax	2,015	(2,700)	(1,785)	2,064
Total comprehensive income (loss), net of tax	$ 39,072	$ 703	$ 89,641	$ (14,768)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 91,426	$ (16,832)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	77,455	76,564
Deferred income taxes	(27,973)	(704)
Share-based compensation	49,046	50,993
Gain on investments, net	(3,135)	(2,632)
Impairment and loss on disposal of property and equipment	2,806	0
Changes in assets and liabilities:
Accounts receivable	11,441	8,420
Inventories	(41,837)	2,349
Prepaid expenses and other assets	(128)	(5,802)
Accounts payable	13,661	(14,876)
Accrued liabilities and other liabilities	(4,273)	(3,104)
Net cash provided by operating activities	168,489	94,376
Cash flows from investing activities:
Purchase of severance-related insurance policies	(916)	(983)
Purchase of short-term investments	(228,229)	(139,861)
Proceeds from sales of short-term investments	53,809	95,414
Proceeds from maturities of short-term investments	102,935	31,008
Proceeds from sales of property and equipment	3,239	0
Purchase of property and equipment	(28,992)	(35,243)
Purchase of intangible assets	(6,512)	(1,836)
Purchase of investments in private companies	(7,500)	(13,500)
Acquisition, net of cash acquired	(7,379)	(872)
Net cash used in investing activities	(119,545)	(65,873)
Cash flows from financing activities:
Principal payments on term debt	(74,000)	(46,000)
Payments on capital lease and intangible asset financings	(6,519)	(5,969)
Proceeds from issuances of ordinary shares through employee equity incentive plans	33,267	25,102
Net cash used in financing activities	(47,252)	(26,867)
Net increase in cash, cash equivalents, and restricted cash	1,692	1,636
Cash, cash equivalents, and restricted cash at beginning of period	70,498	56,780
Cash, cash equivalents, and restricted cash at end of period	72,190	58,416
Supplemental disclosure of non-cash investing and financing activities
Intangible assets financed with debt	2,480	12,892
Unpaid additions to property and equipment	1,635	8,042
Transfer from inventory to property and equipment	$ 1,445	$ 1,565

THE COMPANY AND SUMMARY OF SIGN

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Company Mellanox Technologies, Ltd., an Israeli corporation (the "Company" or "Mellanox"), was incorporated and commenced operations in March 1999. Mellanox is a supplier of high-performance interconnect products for computing, storage and communications applications. Principles of presentation The unaudited condensed consolidated financial statements include the Company's accounts as well as those of its wholly owned subsidiaries after the elimination of all intercompany balances and transactions. The unaudited condensed consolidated financial statements included in this quarterly report on Form 10-Q have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures contained in this quarterly report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a quarterly report on Form 10-Q and are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on February 16, 2018 . The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2018 or thereafter. Risks and uncertainties The Company is subject to all of the risks inherent in a company which operates in the dynamic and competitive semiconductor industry. Significant changes in any of the following areas could have a material adverse impact on the Company's financial position and results of operations: unpredictable volume or timing of customer orders; ordered product mix; the sales outlook and purchasing patterns of the Company's customers based on consumer demands and general economic conditions; loss of one or more of the Company's customers; decreases in the average selling prices of products or increases in the average cost of finished goods; the availability, pricing and timeliness of delivery of components used in the Company's products; reliance on a limited number of subcontractors to manufacture, assemble, package and production test the Company's products; the Company's ability to successfully develop, introduce and sell new or enhanced products in a timely manner; product obsolescence and the Company's ability to manage product transitions; the timing of announcements or introductions of new products by the Company's competitors; and the Company's ability to successfully integrate acquired businesses. Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The Company regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, allowances for price adjustments, investment valuation, warranty reserves, inventory reserves, share-based compensation expense, long-term asset valuations, useful lives of property, equipment, and intangibles, accounting for business combinations, goodwill and purchased intangible asset valuation, investments in privately-held companies, accounting and fair value of financial instruments and derivatives, deferred income tax asset valuation, uncertain tax positions, and litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results that the Company experiences may differ materially and adversely from the Company's original estimates. To the extent there are material differences between the estimates and actual results, the Company's future results of operations will be affected. Significant accounting policies Other than the changes discussed below, there have been no changes in the Company’s significant accounting policies that were disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on February 16, 2018 . On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers (ASC 606-10) , using the modified retrospective method. Prior to the adoption of ASC 606-10, the Company deferred the recognition of revenue and the cost of revenue from sales to distributors until the distributors reported that they had sold the products to their customers (known as “sell though” revenue recognition). Under ASC 606-10, the Company recognizes revenue on sales to all distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), net of estimated allowances for price adjustments. As a result of this adoption, the Company revised its accounting policy for revenue recognition as detailed below. Revenue Recognition The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer tangible products, extended warranty and post-contract customer support, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to rebates and adjustments to determine the net consideration to which the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling price. Revenue from tangible products is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. The revenues from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements, are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred. The Company's standard arrangements with its customers typically do not allow for rights of return. The Company maintains inventory, or hub arrangements with certain customers. Pursuant to these arrangements, the Company delivers products to a customer or a designated third party warehouse based upon the customer's projected needs, but does not recognize product revenue unless and until the customer reports it has removed the Company's product from the warehouse to be incorporated into its end products. A portion of the Company’s sales are made to distributors under agreements which contain price protection provisions. Revenue from sales to distributors is recognized upon shipment and transfer of control, net of estimated allowances for price adjustments. Frequently, distributors submit distribution price adjustment (“DPA”) claims to the Company to adjust the distributor’s cost from the standard price to the pre-approved lower price. After the Company verifies the DPA claim, a credit memo is issued to the distributor. The Company records an allowance for these unprocessed DPA claims and for estimated future DPA claims as a reduction of revenue and a reduction of accounts receivable. The allowance is recorded as a reduction to revenue in the same period that the related revenue is recorded and is calculated based on specific authorized DPA claims and an analysis of historical DPA claims, at the distributor level, over a period of time considered adequate to account for current pricing and business trends. Most of the Company’s distributors are entitled to a limited right of return related to stock rotation. Distributors have the right to return a limited amount of product not to exceed a percentage of distributor’s prior quarter's net purchases. However, a simultaneous, compensating order of equal or greater value must be placed by distributor within the same quarter of the return. Therefore, no stock rotation reserves are recorded. Restricted cash The Company maintains certain cash amounts that are restricted as to withdrawal or use over the long-term. The cash is securing bank guarantees primarily issued against long-term tenancy agreements. The long-term restricted cash balance of $7.9 million was reported in other long-term assets on the balance sheet as of September 30, 2018 , and was included in the ending balance of cash, cash equivalents and restricted cash in the statement of cash flows for the nine months ended September 30, 2018 . There was no restricted cash as of September 30, 2017 . The following table provides a reconciliation of the cash and cash equivalents balances reported on the balance sheets and the cash, cash equivalents and restricted cash balances reported in the statements of cash flows: September 30, 2018 2017 (In thousands) Cash and cash equivalents, as reported on the balance sheets $ 64,248 $ 58,416 Restricted cash in other long-term assets, as reported on the balance sheets 7,942 — Cash, cash equivalents, and restricted cash, as reported in the statements of cash flows $ 72,190 $ 58,416 Concentration of credit risk The following table summarizes the revenues from customers (including original equipment manufacturers) in excess of 10% of the total revenues: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dell Technologies Inc. ("Dell") 11 % * 12 % 11 % Hewlett Packard Enterprise ("HPE") * 12 % 12 % 13 % ____________________ * Less than 10% The following table summarizes accounts receivable balances in excess of 10% of total accounts receivable as of September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 HPE * 13 % ____________________ * Less than 10% Product warranty The following table provides changes in the product warranty accrual for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 (in thousands) Balance, beginning of the period $ 889 $ 1,474 New warranties issued during the period 1,441 1,128 Reversal of warranty reserves — (355 ) Settlements during the period (1,334 ) (1,082 ) Balance, end of the period 996 1,165 Less: long-term portion of product warranty liability (183 ) (189 ) Current portion, end of the period $ 813 $ 976 Net income (loss) per share The following table sets forth the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands, except per share data) Net income (loss) $ 37,057 $ 3,403 $ 91,426 $ (16,832 ) Basic and diluted shares: Weighted average ordinary shares outstanding 53,232 50,587 52,560 49,999 Effect of dilutive shares 1,380 988 1,823 — Shares used to compute diluted net income (loss) per share 54,612 51,575 54,383 49,999 Net income (loss) per share — basic $ 0.70 $ 0.07 $ 1.74 $ (0.34 ) Net income (loss) per share — diluted $ 0.68 $ 0.07 $ 1.68 $ (0.34 ) The Company excluded 0.2 million and 0.5 million potentially dilutive share options and restricted share units ("RSUs") from the computation of diluted net income per share for the three and nine months ended September 30, 2018 , respectively, 1.8 million potentially dilutive share options and RSUs from the computation of diluted net income per share for the three months ended September 30, 2017 , and 5.1 million outstanding share options and RSUs from the computation of diluted net loss per share for the nine months ended September 30, 2017 , because including them would have had an anti-dilutive effect. Adoption of new accounting principles In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The standard replaced the revenue recognition guidance in U.S. GAAP under Topic 605, and was required to be applied retrospectively to each prior period presented, or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional ASUs related to ASU No. 2014-09, collectively they are referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2018. The Company adopted the standard using the modified retrospective method. See Note 2, "Revenue" for details about the impact from adopting the new revenue standard and other required disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 amended various aspects of the recognition, measurement, presentation, and disclosure of financial instruments, and became effective for the Company beginning January 1, 2018. One aspect that may have a material impact on the Company's consolidated financial statements relates to the measurement of its equity investments in privately-held companies whose fair values are not readily determinable. With the election to use the measurement alternative (as opposed to fair value), the Company measures these equity investments at cost, less impairments, adjusted by observable price changes. No gain or loss was recorded in the nine months ended September 30, 2018 as a result of remeasuring the Company's equity investments in privately-held companies. Recent accounting pronouncements In August 2018, the FASB issued ASU No. 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. This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that are service contracts. This standard becomes effective for the Company beginning January 1, 2020. The Company is currently assessing the effect that this ASU will have on its consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. The standard provides an additional transition method that allows entities to apply the new leases standard at adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will elect this new transition method when it adopts ASU 2016-02 on January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. Early adoption of the standard is allowed. The standard becomes effective for the Company beginning January 1, 2019. The Company expects that the adoption of the standard will have a material impact on its consolidated balance sheets due to the recognition of the right-of-use assets and lease liabilities related to the Company's operating leases. In addition, a material portion of the Company's leases are denominated in currencies other than the U.S. Dollar, mainly in New Israeli Shekels ("NIS"). As a result, the associated lease liabilities will be remeasured using the current exchange rate in the future reporting periods, which may result in material foreign exchange gains or losses. The Company is currently reviewing its options to address this foreign exchange exposure. Other than the matters discussed above, the standard is not expected to have a material impact on the Company's results of operations or cash flows. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE On January 1, 2018 , the Company adopted ASC Topic 606-10 using the modified retrospective method and applied the standard to those contracts which were not completed as of January 1, 2018 . Results for reporting periods beginning after January 1, 2018 are presented under Topic 606-10, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. The Company recognized the cumulative effect of initially adopting Topic 606-10 as an adjustment to the opening balance of retained earnings as of January 1, 2018 . Distributor revenue was recognized using the sell-through method under Topic 605, while such revenue is recognized using the sell-in method under Topic 606-10, which primarily contributed to the adjustment to the opening balance of retained earnings as well as the impact of adoption disclosed in the tables below. The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606-10 were as follows: December 31, 2017 Adjustments January 1, 2018 (in thousands) Deferred revenue, short term $ 23,485 $ (4,501 ) $ 18,984 Retained earnings $ 181,630 $ 4,501 $ 186,131 In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated balance sheet as of September 30, 2018 was as follows: As Reported Impact of Adoption Amounts under Topic 605 (in thousands) Condensed Consolidated Balance Sheet Deferred revenue, short term $ 20,326 $ 10,550 $ 30,876 Retained earnings $ 277,557 $ (10,550 ) $ 267,007 In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated statement of operations and cash flows was as follows: Three Months Ended September 30, 2018 As Reported Impact of Adoption Amounts under Topic 605 (in thousands, except per share data) Condensed Consolidated Statement of Operations Total revenues $ 279,211 $ 550 $ 279,761 Cost of revenues 95,562 200 95,762 Net income $ 37,057 $ 350 $ 37,407 Earnings per share Basic $ 0.70 $ — $ 0.70 Diluted $ 0.68 $ — $ 0.68 Nine Months Ended September 30, 2018 As Reported Impact of Adoption Amounts under Topic 605 (in thousands, except per share data) Condensed Consolidated Statement of Operations Total revenues $ 798,673 $ (8,549 ) $ 790,124 Cost of revenues 288,228 (2,500 ) 285,728 Net income $ 91,426 $ (6,049 ) $ 85,377 Earnings per share Basic $ 1.74 $ (0.12 ) $ 1.62 Diluted $ 1.68 $ (0.11 ) $ 1.57 Condensed Consolidated Statement of Cash Flows Cash flows from operating activities: Net income $ 91,426 $ (6,049 ) $ 85,377 Accrued liabilities and other liabilities $ (4,273 ) $ 6,049 $ 1,776 Revenues by geographic region are as follows (prior period amounts have not been adjusted under the modified retrospective method): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) United States $ 93,566 $ 84,502 $ 291,222 $ 238,453 China 76,514 55,352 186,909 120,543 Europe 51,123 40,870 128,573 126,103 Other Americas 39,709 27,690 100,561 69,938 Other Asia 18,299 17,285 91,408 71,275 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312 The following tables represent our total revenues for the three and nine months ended September 30, 2018 and 2017 by product type and interconnect protocol (prior period amounts have not been adjusted under the modified retrospective method): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) ICs $ 46,397 $ 48,074 $ 103,918 $ 124,559 Boards 130,047 84,247 384,806 228,964 Switch systems 53,484 56,677 166,205 160,012 Cables, accessories and other 49,283 36,701 143,744 112,777 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) InfiniBand: EDR $ 51,658 $ 45,067 $ 166,923 $ 144,126 FDR 33,227 46,123 110,624 138,930 QDR/DDR/SDR 12,980 8,995 25,567 22,225 Total 97,865 100,185 303,114 305,281 Ethernet 175,517 110,673 469,935 278,173 Other 5,829 14,841 25,624 42,858 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312 The Company recognizes contract liabilities, or deferred revenues, when it receives advance payments from customers before performance obligations primarily related to extended warranty and post-contract customer support have been performed. Advance payments are received at the beginning of the service period and the related deferred revenues are reclassified to revenue ratably over the service period. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period. The Company expects to recognize the long-term portion of deferred revenue over the remaining service period of up to five years. The following table presents the significant changes in the deferred revenue balance during the nine months ended September 30, 2018 : (in thousands) Balance, beginning of the period $ 36,804 New performance obligations 21,305 Reclassification to revenue as a result of satisfying performance obligations (19,954 ) Balance, end of the period 38,155 Less: long-term portion of deferred revenue 17,829 Current portion, end of the period $ 20,326 Because all performance obligations in the Company’s contracts with customers, other than extended warranty and post-contract customer support, relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
BALANCE SHEET COMPONENTS	BALANCE SHEET COMPONENTS: September 30, 2018 December 31, 2017 (in thousands) Accounts receivable, net: Accounts receivable, gross $ 143,404 $ 154,845 Less: allowance for doubtful accounts (632 ) (632 ) $ 142,772 $ 154,213 Inventories: Raw materials $ 13,643 $ 12,656 Work-in-process 44,194 22,769 Finished goods 47,212 29,232 $ 105,049 $ 64,657 Other current assets: Prepaid expenses $ 4,969 $ 7,518 Derivative contracts receivable 23 982 VAT receivable 4,442 2,259 Other 5,241 3,536 $ 14,675 $ 14,295 Property and equipment, net: Computer, equipment, and software $ 177,037 $ 164,707 Furniture and fixtures 2,740 3,198 Leasehold improvements 49,889 47,262 229,666 215,167 Less: Accumulated depreciation and amortization (124,659 ) (105,248 ) $ 105,007 $ 109,919 Deferred taxes and other long-term assets: Equity investments in private companies $ 36,755 $ 29,255 Deferred taxes 52,536 24,563 Long-term restricted cash 7,942 8,025 Other assets 2,602 4,319 $ 99,835 $ 66,162 Accrued liabilities: Payroll and related expenses $ 60,705 $ 71,868 Accrued expenses 27,520 31,951 Intangible asset financings 5,564 6,915 Derivative contracts payable 900 17 Product warranty liability 813 706 Other 4,924 2,601 $ 100,426 $ 114,058 Other long-term liabilities: Income tax payable $ 28,143 $ 24,425 Deferred rent 2,545 2,220 Other 5,080 7,422 $ 35,768 $ 34,067

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS: Fair value hierarchy: The Company measures its cash equivalents and marketable securities at fair value. The Company’s cash equivalents are classified within Level 1. Cash equivalents are valued primarily using quoted market prices utilizing market observable inputs. The Company's investments in debt securities and certificates of deposits are classified within Level 2 as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes. In addition, foreign currency contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Level 3 valuation inputs include the Company's best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument's valuation. As of September 30, 2018 and December 31, 2017 , the Company did not have any assets or liabilities valued based on Level 3 valuations. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis: The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 : Level 1 Level 2 Total (in thousands) Money market funds $ 10,103 $ — $ 10,103 Certificates of deposit — 74,873 74,873 U.S. Government and agency securities — 36,170 36,170 Commercial paper — 45,438 45,438 Corporate bonds — 98,548 98,548 Municipal bonds — 9,688 9,688 Foreign government bonds — 21,238 21,238 10,103 285,955 296,058 Long-term restricted cash — 7,942 7,942 Derivative contracts — 23 23 Total financial assets $ 10,103 $ 293,920 $ 304,023 Derivative contracts — 900 900 Total financial liabilities $ — $ 900 $ 900 The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 : Level 1 Level 2 Total (in thousands) Money market funds $ 1,857 $ — $ 1,857 Certificates of deposit — 58,003 58,003 U.S. Government and agency securities — 43,872 43,872 Commercial paper — 27,029 27,029 Corporate bonds — 54,447 54,447 Municipal bonds — 15,169 15,169 Foreign government bonds — 12,761 12,761 1,857 211,281 213,138 Long-term restricted cash — 8,025 8,025 Derivative contracts — 982 982 Total financial assets $ 1,857 $ 220,288 $ 222,145 Derivative contracts — 17 17 Total financial liabilities $ — $ 17 $ 17 There were no transfers between Level 1 and Level 2 securities during the nine months ended September 30, 2018 and 2017 .

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	INVESTMENTS: Cash, cash equivalents and short-term investments: The short-term investments are classified as available-for-sale securities. The cash, cash equivalents and short-term investments at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 Amortized Unrealized Unrealized Estimated (in thousands) Cash and cash equivalents $ 54,122 $ 23 $ — $ 54,145 Money market funds 10,103 — — 10,103 Certificates of deposit 74,922 — (49 ) 74,873 U.S. Government and agency securities 36,260 — (90 ) 36,170 Commercial paper 45,482 1 (45 ) 45,438 Corporate bonds 98,863 — (315 ) 98,548 Municipal bonds 9,715 — (27 ) 9,688 Foreign government bonds 21,292 — (54 ) 21,238 Total 350,759 24 (580 ) 350,203 Less amounts classified as cash and cash equivalents (64,225 ) (23 ) — (64,248 ) Short-term investments $ 286,534 $ 1 $ (580 ) $ 285,955 December 31, 2017 Amortized Unrealized Unrealized Estimated (in thousands) Cash and cash equivalents $ 60,616 $ — $ — $ 60,616 Money market funds 1,857 — — 1,857 Certificates of deposit 58,039 — (36 ) 58,003 U.S. Government and agency securities 44,070 — (198 ) 43,872 Commercial paper 27,073 1 (45 ) 27,029 Corporate bonds 54,673 — (226 ) 54,447 Municipal bonds 15,227 — (58 ) 15,169 Foreign government bonds 12,809 — (48 ) 12,761 Total 274,364 1 (611 ) 273,754 Less amounts classified as cash and cash equivalents (62,473 ) — — (62,473 ) Short-term investments $ 211,891 $ 1 $ (611 ) $ 211,281 Interest income and gains on short-term investments, net were $1.5 million and 1.0 million for the three months ended September 30, 2018 and 2017 , respectively. Interest income and gains on short-term investments, net were $3.4 million and $2.8 million for the nine months ended September 30, 2018 and 2017 , respectively. At September 30, 2018 , gross unrealized losses on investments that were in a gross unrealized loss position for greater than 12 months were $0.2 million . These investments were not deemed to be other-than-temporarily impaired and the gross unrealized losses were recorded in other comprehensive income (loss) ("OCI"). The contractual maturities of short-term investments at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Amortized Estimated Amortized Estimated (in thousands) Due in less than one year $ 237,434 $ 237,055 $ 148,232 $ 147,921 Due in one to three years 49,100 48,900 63,659 63,360 $ 286,534 $ 285,955 $ 211,891 $ 211,281 Equity investments in privately-held companies: As of September 30, 2018 and December 31, 2017 , the Company held a total of $36.8 million and $29.3 million , respectively, in equity investments in privately-held companies. No gain or loss was recorded during the nine months ended September 30, 2018 as a result of remeasuring the Company's equity investments in privately-held companies.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS: The following table represents changes in the carrying amount of goodwill: Balance as of December 31, 2017 $ 472,437 Acquisitions 1,479 Balance as of September 30, 2018 $ 473,916 The carrying amounts of intangible assets as of September 30, 2018 were as follows: Gross Accumulated Net Useful Life (in thousands) (in years) Licensed technology $ 49,399 $ (26,499 ) $ 22,900 1-8 Developed technology 285,443 (154,643 ) 130,800 4-7 Customer relationships 69,776 (29,680 ) 40,096 4-9 Trade names 5,600 (4,856 ) 744 3 Total intangible assets $ 410,218 $ (215,678 ) $ 194,540 The carrying amounts of intangible assets as of December 31, 2017 were as follows: Gross Accumulated Net Useful Life (in thousands) (in years) Licensed technology $ 40,407 $ (16,478 ) $ 23,929 1-8 Developed technology 279,543 (122,414 ) 157,129 4-7 Customer relationships 69,776 (24,783 ) 44,993 4-9 Trade names 5,600 (3,456 ) 2,144 3 Total intangible assets $ 395,326 $ (167,131 ) $ 228,195 Amortization expense of intangible assets totaled approximately $15.7 million and $15.2 million for the three months ended September 30, 2018 and 2017 , respectively. Amortization expense of intangible assets totaled approximately $48.5 million and $45.3 million for the nine months ended September 30, 2018 and 2017 , respectively. The estimated future amortization expense from amortizable intangible assets is as follows: (in thousands) 2018 (remainder of the year) $ 17,048 2019 61,756 2020 54,372 2021 33,018 2022 11,950 Thereafter 16,396 Total $ 194,540

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES AND HEDGING ACTIVITIES	DERIVATIVES AND HEDGING ACTIVITIES: The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the NIS against the U.S. dollar that are associated with forecasted cash flows and existing assets and liabilities. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Fair Value of Derivative Contracts The fair value of derivative contracts in the unaudited condensed consolidated balance sheets at September 30, 2018 and December 31, 2017 were as follows: Other current assets Accrued liabilities Other current assets Accrued liabilities September 30, 2018 December 31, 2017 (in thousands) Derivatives designated as hedging instruments Currency forward and option contracts $ 23 $ 882 $ 980 $ — Derivatives not designated as hedging instruments Currency forward and option contracts $ — $ 18 $ 2 $ 17 Total derivatives $ 23 $ 900 $ 982 $ 17 The gross notional amounts of derivative contracts were NIS denominated. The notional amounts of outstanding derivative contracts in U.S. dollars at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (in thousands) Derivatives designated as hedging instruments Currency forward and option contracts $ 64,075 $ 52,380 Derivatives not designated as hedging instruments Currency forward and option contracts $ 38,599 $ 47,015 Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income The following table represents the unrealized gains (losses) of derivatives designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income as of September 30, 2018 and December 31, 2017 and their effect on OCI for the nine months ended September 30, 2018 : (in thousands) December 31, 2017 $ 925 Amount of loss recognized in OCI (effective portion) (4,528 ) Amount of loss reclassified from OCI to income (effective portion) 2,689 September 30, 2018 $ (914 ) Effect of Derivative Contracts on the Unaudited Condensed Consolidated Statement of Operations The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the three months ended September 30, 2018 and 2017 was as follows: Derivatives designated as hedging instruments Derivatives not designated as hedging instruments Three Months Ended September 30, Three Months Ended September 30, 2018 2017 2018 2017 (in thousands) Operating income (loss) $ (1,805 ) $ 1,976 $ — $ — Other income (loss) $ — $ — $ 66 $ (538 ) The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017 was as follows: Derivatives designated as hedging instruments Derivatives not designated as hedging instruments Nine Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Operating income (loss) $ (2,689 ) $ 5,791 $ — $ — Other income (loss) $ — $ — $ (2,638 ) $ 2,767

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: Commitments Leases At September 30, 2018 , future minimum payments under non-cancelable operating leases are as follows: (in thousands) 2018 (remainder of the year) $ 5,946 2019 23,263 2020 19,728 2021 17,108 2022 12,689 Thereafter 76,640 Total minimum lease payments $ 155,374 Purchase commitments At September 30, 2018 , the Company had the following non-cancelable purchase commitments: (in thousands) 2018 (remainder of the year) $ 120,545 2019 102,354 2020 2,096 2021 536 2022 261 Thereafter — $ 225,792 Other Commitments Operating lease On May 3, 2016, the Company entered into a lease agreement for additional office space expected to be built in Yokneam, Israel. The lease term expires 10 years after lease inception with no options to extend the lease term. The Company's occupancy of the additional office space and its obligation under the lease agreement was contingent on the lessor's attainment of stated milestones in the lease agreement. The estimated total future lease obligation is approximately $30.3 million . As of September 30, 2018 , substantially all of the contingencies have been resolved, and the future lease obligation has been included in the future minimum payments under non-cancelable operating leases as reported above. Royalty-bearing grants In April 2018, the Company entered into a settlement agreement with the Israeli Innovation Authority, formerly known as the Office of the Chief Scientist of Israel's Ministry of Economy and Industry (the "IIA"), which eliminated the future contingent royalty payment obligations of the Company (approximately $36.4 million at March 31, 2018) and the associated future interest payments. These obligations were related to the funding the Company received from the IIA prior to the date of the agreement under approved plans in accordance with the Israeli Law for Encouragement of Research, Development and Technological Innovation in Industry, 1984 and the regulations and rules of the IIA (the "R&D Law"). As part of the agreement, the Company paid approximately $9.3 million to the IIA and the expense was included in cost of revenues during the second quarter of 2018. The Company could be subject to the payment to the IIA of transfer fees or license fees, if the related know-how is transferred outside of Israel. Unrecognized tax benefits Due to the inherent uncertainty with respect to the timing of future cash outflows associated with the Company's unrecognized tax benefits, it is unable to reliably estimate the timing of cash settlement with the respective taxing authorities. As of September 30, 2018 , the Company's unrecognized tax benefits totaled $48.9 million , out of which an amount of $23.7 million would reduce the Company's income tax expense and effective tax rate, if recognized. Contingencies Legal proceedings The Company is involved in a variety of claims, suits, investigations and proceedings that arise from time to time in the ordinary course of its business, including actions with respect to contracts, intellectual property, taxation, employment, benefits, securities, personal injuries and other matters. The results of these proceedings in the ordinary course of business are not expected to have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. The Company records a liability when it believes that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, at least quarterly, developments in its legal matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Significant judgment is required to determine both the probability and the estimated amount of a loss or potential loss. The Company may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others: (i) if the damages sought are indeterminate; (ii) if proceedings are in the early stages; (iii) if there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) if there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) if there are significant factual issues to be determined or resolved; (vi) if the proceedings involve a large number of parties; (vii) if relevant law is unsettled or novel or untested legal theories are presented; or (viii) if the proceedings are taking place in jurisdictions where the laws are complex or unclear. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any.

SHARE INCENTIVE PLANS

SHARE INCENTIVE PLANS	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE INCENTIVE PLANS	SHARE INCENTIVE PLANS Stock Option Plans On July 25, 2018, the Company's shareholders approved the Mellanox Technologies, Ltd. Third Amended and Restated Global Share Incentive Plan (2006) (the “Third Restated Plan”), which constitutes an amendment and restatement of the Mellanox Technologies, Ltd. Second Amended and Restated Global Share Incentive Plan (2006) (the “Second Restated Plan”). The Third Restated Plan increased the ordinary shares reserved for issuance under the Second Restated Plan by 2,077,000 shares to 4,467,000 shares plus any shares subject to issued and outstanding awards under certain of the Company’s prior equity plans that expire, are cancelled or otherwise terminated after March 14, 2016, the effective date of the first amendment and restatement of the Global Share Incentive Plan (2006). The Third Restated Plan also implements certain additional amendments, including specifically providing for the grant of performance share units. Share option activity Share option activity under the Company's equity incentive plans in the nine months ended September 30, 2018 is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2017 1,110,061 $ 38.35 Options exercised (451,878 ) $ 23.05 Options canceled (20,522 ) $ 100.57 Outstanding at September 30, 2018 637,661 $ 47.19 The total pretax intrinsic value of options exercised in the nine months ended September 30, 2018 and 2017 was $25.5 million and $6.3 million , respectively. This intrinsic value represents the difference between the fair market value of the Company's ordinary shares on the date of exercise and the exercise price of each option. Based on the closing price of the Company's ordinary shares of $73.45 on September 28, 2018, the last trading day of the quarter ended September 30, 2018 , the total pretax intrinsic value of options outstanding at September 30, 2018 was $20.8 million . The total pretax intrinsic value of options outstanding at December 31, 2017 was $35.5 million . There were 636,308 and 1,107,712 options exercisable at September 30, 2018 and December 31, 2017 , respectively. The total pretax intrinsic value of exercisable options at September 30, 2018 was $20.7 million . The total pretax intrinsic value of exercisable options at December 31, 2017 was $35.4 million . Restricted share unit activity RSU activity under the Company's equity incentive plans in the nine months ended September 30, 2018 is set forth below: Restricted Share Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Non-vested restricted share units at December 31, 2017 3,414,705 $ 48.45 Restricted share units granted 1,640,018 $ 79.72 Restricted share units vested (1,087,426 ) $ 48.07 Restricted share units canceled (475,267 ) $ 51.02 Non-vested restricted share units at September 30, 2018 3,492,030 $ 62.90 The weighted average fair value of RSUs granted in the nine months ended September 30, 2018 and 2017 was $79.72 and $50.05 , respectively. The total intrinsic value of all outstanding RSUs as of September 30, 2018 and December 31, 2017 was $256.5 million and $220.9 million , respectively. The non-vested restricted share units at September 30, 2018 included 36,000 performance share units. Employee Stock Purchase Plan activity There were 490,123 and 568,876 shares purchased under the ESPP for the nine months ended September 30, 2018 and 2017 at an average price per share of $46.62 and $38.83 , respectively. Shares reserved for future issuance The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of September 30, 2018 : Number of Share options outstanding 637,661 Restricted share units outstanding 3,492,030 Shares authorized for future issuance 1,690,557 ESPP shares available for future issuance 2,935,346 Total shares reserved for future issuance as of September 30, 2018 8,755,594 Share-based compensation The Company accounts for share-based compensation expense based on the estimated fair value of the share equity awards as of the grant dates. The following weighted average assumptions were used to value ESPP shares issued pursuant to the Company's share incentive plans for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Dividend yield — % — % Expected volatility 24.9 % 24.6 % Risk free interest rate 2.36 % 1.20 % Expected life, years 0.5 0.5 The following table summarizes the distribution of total share-based compensation expense in the unaudited condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Cost of goods sold $ 515 $ 473 $ 1,341 $ 1,530 Research and development 10,395 10,811 26,909 29,799 Sales and marketing 4,645 4,336 11,890 11,684 General and administrative 3,601 2,940 8,906 7,980 Total share-based compensation expense $ 19,156 $ 18,560 $ 49,046 $ 50,993 At September 30, 2018 , there was $205.2 million of total unrecognized share-based compensation costs related to non-vested share-based compensation arrangements. The costs are expected to be recognized over a weighted average period of approximately 3.07 years .

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Gains (Losses) on Derivatives Designated as Hedging Instruments Total (in thousands) Balance at December 31, 2017 $ 693 $ 925 $ 1,618 Other comprehensive income/(loss) before reclassifications, net of taxes 50 (4,528 ) (4,478 ) Realized (gains)/losses reclassified from accumulated other comprehensive income 4 2,689 2,693 Net current-period other comprehensive income/(loss), net of taxes 54 (1,839 ) (1,785 ) Balance at September 30, 2018 $ 747 $ (914 ) $ (167 ) Balance at December 31, 2016 $ (236 ) $ (692 ) $ (928 ) Other comprehensive income/(loss) before reclassifications, net of taxes 5 7,844 7,849 Realized (gains)/losses reclassified from accumulated other comprehensive income 6 (5,791 ) (5,785 ) Net current-period other comprehensive income/(loss), net of taxes 11 2,053 2,064 Balance at September 30, 2017 $ (225 ) $ 1,361 $ 1,136 The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Realized (Gains)/Losses Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Operations Nine Months Ended September 30, 2018 2017 (in thousands) Realized (gains)/losses on derivatives designated as hedging instruments $ 2,689 $ (5,791 ) Cost of revenues and Operating expenses: 132 (329 ) Cost of revenues 304 (644 ) General and administrative 238 (566 ) Sales and marketing 2,015 (4,252 ) Research and development Realized (gains)/losses on available-for-sale securities 4 6 Other income, net Total reclassifications for the period $ 2,693 $ (5,785 ) Total

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES: As of September 30, 2018 and December 31, 2017 , the Company had gross unrecognized tax benefits of $48.9 million and $45.2 million , respectively. It is the Company’s policy to classify accrued interest and penalties as part of the unrecognized tax benefits and record the expense in the provision for income taxes. The amount of accrued interest and penalties related to unrecognized tax benefits totaled $ 2.6 million at September 30, 2018 and $1.6 million at December 31, 2017 . During the nine months ended September 30, 2018 , the Company released $26.1 million of valuation allowance against the deferred tax assets primarily related to net operating loss carryforwards ("NOLs") and tax credit carryforwards related to its U.S. subsidiaries. After the discontinuation of the Company’s 1550nm silicon photonics development activities in the first quarter of fiscal 2018, the Company expects its U.S. subsidiaries will have sufficient taxable income in the future to utilize the deferred tax assets before they expire. On December 22, 2017, the Tax Cuts and Jobs Acts was enacted into law. The new legislation contains several key tax provisions that will impact the Company. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, a one-time repatriation tax on accumulated foreign earnings, an elimination of U.S. federal income taxes on dividends from foreign subsidiaries, a limitation on the tax deductibility of interest expense, limitations to the deductibility of executive officers remuneration, and a change in rules related to uses and limitations of NOLs created in tax years beginning after December 31, 2017. The lower corporate income tax rate required the Company to remeasure its U.S. deferred tax assets and liabilities as of December 31, 2017 as well as reassess the realizability of its deferred tax assets and liabilities. ASC 740 requires the Company to recognize the effect of the tax law changes in the period of enactment. However, the SEC staff has issued SAB 118 which allowed the Company to record provisional amounts during a measurement period. The Company has concluded that a reasonable estimate could be developed for the effects of the tax reform, and recorded a provisional decrease to deferred tax assets of $3.2 million and corresponding decrease to the valuation allowance as of December 31, 2017. However, due to the fundamental changes of the tax law, the accounting complexity, and the expected ongoing guidance and accounting interpretations during the measurement period, the Company considers the accounting for the deferred tax remeasurement and other items to be incomplete. These effects have been included in the consolidated financial statements for the year ended December 31, 2017 as provisional amounts. During the measurement period, the Company might need to reflect adjustments to the provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts. No adjustments to the provisional amounts were recorded during the nine months ended September 30, 2018 . The measurement period will end when the Company obtains, prepares, and analyzes the information needed in order to complete the accounting requirements under ASC Topic 740 or on December 22, 2018, whichever is earlier. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. On August 21, 2018, the Internal Revenue Service issued Notice 2018-68 providing guidance regarding amendments to Section 162(m) of the Internal Revenue Code contained in the Tax Act (“IRS Guidance”), which limit tax deductions for compensation granted to certain executives. Our provision for income taxes for the three and nine months ended September 30, 2018 includes the impact of this tax deduction limitation. However, the impact is not material. As of September 30, 2018 , the 2014 through 2017 tax years are open and may be subject to potential examinations in the United States. The Company has NOLs in the United States from prior tax periods beginning in 2003 which may be subject to examination upon utilization in future tax periods. As of September 30, 2018 , the 2013 through 2017 tax years are open and may be subject to potential examinations in Denmark and Israel. As of September 30, 2018 , the income tax returns of the Company and one of its subsidiaries in Israel are under examination by the Israeli Income Tax Authorities for certain years from 2013 to 2015 . The Company's operations in Israel were granted "Approved Enterprise" status by the Investment Center in the Israeli Ministry of Economy and Industry and "Beneficiary Enterprise" status from the Israeli Income Tax Authority, which makes the Company eligible for tax benefits under the Israeli Law for Encouragement of Capital Investments, 1959 (the "Encouragement Law"). Under the terms of the Beneficiary Enterprise program, income that is attributable to the Company's operations in Yokneam, Israel, is exempt from income tax commencing fiscal year 2011 through 2021 . Income that is attributable to the Company's operations in Tel Aviv, Israel is subject to a reduced income tax rate (generally between 10.0% and the current corporate tax rate, depending on the percentage of foreign investment in the Company) commencing fiscal year 2013 through 2021 . The tax holiday has resulted in a cash tax savings of $18.7 million for the nine months ended September 30, 2018 , increasing diluted earnings per share by approximately $0.34 in the nine months ended September 30, 2018 . On June 14, 2017, the Israeli government legislated new regulations regarding the "Preferred Technological Enterprise" regime, under which a company that complies with the terms may be entitled to certain tax benefits. The Company expects that its operation in Israel will comply with the terms of the Preferred Technological Enterprise regime. Therefore, the Company may utilize the tax benefits under this regime after the end of the benefit period of its Approved and Beneficiary Enterprise statuses (i.e. from fiscal year 2022 onwards). Under the new legislation, the majority of the Company’s income from its operations in Yokneam, Israel, will be subject to a corporate rate of 7.5% , while the majority of the income from its operations in Tel-Aviv, Israel, will be subject to a corporate rate of 12.0% . The Company’s effective tax rate is highly dependent upon the geographic distribution of its worldwide earnings or losses, tax regulations and tax holiday benefits in Israel, and the effectiveness of the Company’s tax planning strategies. The Company’s effective tax rates were (34.0)% and (20.9)% for the nine months ended September 30, 2018 and 2017 , respectively. The difference between the Company’s effective tax rate and the 21.0% federal statutory rate for the nine months ended September 30, 2018 resulted primarily from the release of valuation allowance of $26.1 million against the deferred tax assets related to U.S. subsidiaries, the excess benefits of share-based compensation, the tax holiday in Israel and foreign earnings taxed at rates lower than the federal statutory rates, partially offset by the accrual of unrecognized tax benefits, interest and penalties associated with unrecognized tax positions, non-tax-deductible expenses such as share-based compensation and losses generated from subsidiaries without tax benefit. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous, and the Company is required to make many subjective assumptions and judgments regarding its income tax exposures. In addition, interpretations of and guidance surrounding income tax laws and regulations are subject to change over time. Any changes in the Company’s subjective assumptions and judgments could materially affect amounts recognized in its condensed consolidated balance sheets and statements of operations. At September 30, 2018 , the Company maintained a valuation allowance against deferred tax assets of certain subsidiaries. The Company assesses its ability to recover its deferred tax assets on an ongoing basis. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, the Company considers available positive and negative evidence including its recent cumulative losses, its ability to carry-back losses against prior taxable income and its projected financial results. The Company also considers, commensurate with its objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. A valuation allowance may be recorded in the event it is deemed to be more-likely-than-not that the deferred tax asset cannot be realized. Previously established valuation allowances may also be released in the event it is deemed to be more-likely-than-not that the deferred tax asset can be realized. Any release of valuation allowance will be recorded as a tax benefit which will positively impact the Company’s operating results. Management has determined on the basis of the quarterly assessment performed at September 30, 2018 , that these deferred tax assets are not more-likely-than-not to be realized.

OTHER INCOME, NET

OTHER INCOME, NET	9 Months Ended
	Sep. 30, 2018
Other Income and Expenses [Abstract]
OTHER INCOME, NET	OTHER INCOME, NET: Other income, net is summarized in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Interest income and gains on short-term investments, net $ 1,459 $ 1,018 $ 3,398 $ 2,846 Foreign exchange loss, net (300 ) (94 ) (878 ) (414 ) Other (47 ) 32 (237 ) 34 Other income, net $ 1,112 $ 956 $ 2,283 $ 2,466

TERM DEBT

TERM DEBT	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
TERM DEBT	TERM DEBT: In connection with the Company’s acquisition of EZchip, on February 22, 2016 , the Company and its wholly owned subsidiary, Mellanox Technologies, Inc., entered into a $280.0 million variable interest rate Term Debt note maturing February 21, 2019 . Debt issuance costs of $5.5 million on the Term Debt were being amortized to interest expense at the effective interest rate over the contractual term of the Term Debt. The Term Debt allowed for voluntary prepayments at any time and additional term loan borrowings under certain conditions. On April 30, 2018, the Company paid off all outstanding principal and interest related to the Term Debt. As a result, the unamortized debt issuance costs were fully amortized when the outstanding principal and interest were fully paid.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES: In connection with the discontinuation of its 1550nm silicon photonics development activities, the Company initiated a restructuring plan to wind down the business operations related to these activities, which primarily included terminating employees, exiting contracts with vendors, selling assets, and exiting facilities. The Company recorded no employee separation and severance costs during the three months ended September 30, 2018 , and recorded $3.5 million of such costs during the nine months ended September 30, 2018 . The Company has completed the employee termination activities, and does not expect additional costs related to employee terminations in future periods. The Company recorded no contract exit costs with vendors during the three months ended September 30, 2018 , and recorded $3.4 million of such costs during the nine months ended September 30, 2018 . The Company does not expect additional exit costs in future periods. The Company recorded no impairment charges or losses on disposal of assets during the three months ended September 30, 2018 , and recorded $2.4 million of such costs during the nine months ended September 30, 2018 . The Company does not expect additional losses on the disposal of assets in future periods. As of September 30, 2018 , the Company is still using the facilities related to the discontinued activities and therefore has not recorded any related restructuring charges. The Company expects to record up to $0.5 million of facility related charges in the fourth quarter of 2018.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS: On June 19, 2018, the Company entered into a settlement agreement (the “Settlement Agreement”) by and among the Company and Starboard Value LP and certain of its affiliates (“Starboard”), together holding, on such date, approximately 10.3 % of the Company’s outstanding ordinary shares. The Settlement Agreement provided for, among other things, the concurrent resignations of three members of the Company’s Board of Directors (the “Board”) and the concurrent appointment of two independent directors nominated by Starboard and one mutually agreed upon independent nominee to the Board. Starboard also agreed to terminate its proxy contest against the Company and withdraw its notice of shareholder nomination of individuals for election as directors at the Company's 2018 annual general meeting of shareholders. Furthermore, the Company agreed to reimburse Starboard for its reasonable, documented out-of-pocket fees and expenses (including legal expenses) incurred through the date of the Settlement Agreement in connection with Starboard’s interactions with the Company up to a maximum of $2.0 million . On July 11, 2018, the Company paid $2.0 million for such costs to Starboard.

THE COMPANY AND SUMMARY OF SI_2

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of presentation	Principles of presentation The unaudited condensed consolidated financial statements include the Company's accounts as well as those of its wholly owned subsidiaries after the elimination of all intercompany balances and transactions. The unaudited condensed consolidated financial statements included in this quarterly report on Form 10-Q have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end balance sheet data were derived from audited consolidated financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures contained in this quarterly report comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, for a quarterly report on Form 10-Q and are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on February 16, 2018 . The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2018 or thereafter.
Risks and uncertainties	Risks and uncertainties The Company is subject to all of the risks inherent in a company which operates in the dynamic and competitive semiconductor industry. Significant changes in any of the following areas could have a material adverse impact on the Company's financial position and results of operations: unpredictable volume or timing of customer orders; ordered product mix; the sales outlook and purchasing patterns of the Company's customers based on consumer demands and general economic conditions; loss of one or more of the Company's customers; decreases in the average selling prices of products or increases in the average cost of finished goods; the availability, pricing and timeliness of delivery of components used in the Company's products; reliance on a limited number of subcontractors to manufacture, assemble, package and production test the Company's products; the Company's ability to successfully develop, introduce and sell new or enhanced products in a timely manner; product obsolescence and the Company's ability to manage product transitions; the timing of announcements or introductions of new products by the Company's competitors; and the Company's ability to successfully integrate acquired businesses.
Use of estimates	Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The Company regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, allowances for price adjustments, investment valuation, warranty reserves, inventory reserves, share-based compensation expense, long-term asset valuations, useful lives of property, equipment, and intangibles, accounting for business combinations, goodwill and purchased intangible asset valuation, investments in privately-held companies, accounting and fair value of financial instruments and derivatives, deferred income tax asset valuation, uncertain tax positions, and litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results that the Company experiences may differ materially and adversely from the Company's original estimates. To the extent there are material differences between the estimates and actual results, the Company's future results of operations will be affected.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer tangible products, extended warranty and post-contract customer support, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to rebates and adjustments to determine the net consideration to which the Company expects to receive. As the Company’s standard payment terms are less than one year, the contracts have no significant financing component. The Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling price. Revenue from tangible products is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. The revenues from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements, are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred. The Company's standard arrangements with its customers typically do not allow for rights of return. The Company maintains inventory, or hub arrangements with certain customers. Pursuant to these arrangements, the Company delivers products to a customer or a designated third party warehouse based upon the customer's projected needs, but does not recognize product revenue unless and until the customer reports it has removed the Company's product from the warehouse to be incorporated into its end products. A portion of the Company’s sales are made to distributors under agreements which contain price protection provisions. Revenue from sales to distributors is recognized upon shipment and transfer of control, net of estimated allowances for price adjustments. Frequently, distributors submit distribution price adjustment (“DPA”) claims to the Company to adjust the distributor’s cost from the standard price to the pre-approved lower price. After the Company verifies the DPA claim, a credit memo is issued to the distributor. The Company records an allowance for these unprocessed DPA claims and for estimated future DPA claims as a reduction of revenue and a reduction of accounts receivable. The allowance is recorded as a reduction to revenue in the same period that the related revenue is recorded and is calculated based on specific authorized DPA claims and an analysis of historical DPA claims, at the distributor level, over a period of time considered adequate to account for current pricing and business trends. Most of the Company’s distributors are entitled to a limited right of return related to stock rotation. Distributors have the right to return a limited amount of product not to exceed a percentage of distributor’s prior quarter's net purchases. However, a simultaneous, compensating order of equal or greater value must be placed by distributor within the same quarter of the return. Therefore, no stock rotation reserves are recorded.
Restricted cash	Restricted cash The Company maintains certain cash amounts that are restricted as to withdrawal or use over the long-term. The cash is securing bank guarantees primarily issued against long-term tenancy agreements.
Adoption of new accounting principles and Recent accounting pronouncements	Adoption of new accounting principles In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The standard replaced the revenue recognition guidance in U.S. GAAP under Topic 605, and was required to be applied retrospectively to each prior period presented, or applied using a modified retrospective method with the cumulative effect recognized in the beginning retained earnings during the period of initial application. Subsequently, the FASB issued several additional ASUs related to ASU No. 2014-09, collectively they are referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2018. The Company adopted the standard using the modified retrospective method. See Note 2, "Revenue" for details about the impact from adopting the new revenue standard and other required disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 amended various aspects of the recognition, measurement, presentation, and disclosure of financial instruments, and became effective for the Company beginning January 1, 2018. One aspect that may have a material impact on the Company's consolidated financial statements relates to the measurement of its equity investments in privately-held companies whose fair values are not readily determinable. With the election to use the measurement alternative (as opposed to fair value), the Company measures these equity investments at cost, less impairments, adjusted by observable price changes. No gain or loss was recorded in the nine months ended September 30, 2018 as a result of remeasuring the Company's equity investments in privately-held companies. Recent accounting pronouncements In August 2018, the FASB issued ASU No. 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. This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that are service contracts. This standard becomes effective for the Company beginning January 1, 2020. The Company is currently assessing the effect that this ASU will have on its consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. The standard provides an additional transition method that allows entities to apply the new leases standard at adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will elect this new transition method when it adopts ASU 2016-02 on January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. Early adoption of the standard is allowed. The standard becomes effective for the Company beginning January 1, 2019. The Company expects that the adoption of the standard will have a material impact on its consolidated balance sheets due to the recognition of the right-of-use assets and lease liabilities related to the Company's operating leases. In addition, a material portion of the Company's leases are denominated in currencies other than the U.S. Dollar, mainly in New Israeli Shekels ("NIS"). As a result, the associated lease liabilities will be remeasured using the current exchange rate in the future reporting periods, which may result in material foreign exchange gains or losses. The Company is currently reviewing its options to address this foreign exchange exposure. Other than the matters discussed above, the standard is not expected to have a material impact on the Company's results of operations or cash flows. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures.

THE COMPANY AND SUMMARY OF SI_3

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of cash and cash equivalents	The following table provides a reconciliation of the cash and cash equivalents balances reported on the balance sheets and the cash, cash equivalents and restricted cash balances reported in the statements of cash flows: September 30, 2018 2017 (In thousands) Cash and cash equivalents, as reported on the balance sheets $ 64,248 $ 58,416 Restricted cash in other long-term assets, as reported on the balance sheets 7,942 — Cash, cash equivalents, and restricted cash, as reported in the statements of cash flows $ 72,190 $ 58,416
Reconciliation of cash and cash equivalents to cash, cash equivalents and restricted cash	The following table provides a reconciliation of the cash and cash equivalents balances reported on the balance sheets and the cash, cash equivalents and restricted cash balances reported in the statements of cash flows: September 30, 2018 2017 (In thousands) Cash and cash equivalents, as reported on the balance sheets $ 64,248 $ 58,416 Restricted cash in other long-term assets, as reported on the balance sheets 7,942 — Cash, cash equivalents, and restricted cash, as reported in the statements of cash flows $ 72,190 $ 58,416
Schedule of revenues and accounts receivable from customers	The following table summarizes the revenues from customers (including original equipment manufacturers) in excess of 10% of the total revenues: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dell Technologies Inc. ("Dell") 11 % * 12 % 11 % Hewlett Packard Enterprise ("HPE") * 12 % 12 % 13 % ____________________ * Less than 10% The following table summarizes accounts receivable balances in excess of 10% of total accounts receivable as of September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 HPE * 13 % ____________________ * Less than 10%
Schedule of changes in the entity's liability for product warranty	The following table provides changes in the product warranty accrual for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 (in thousands) Balance, beginning of the period $ 889 $ 1,474 New warranties issued during the period 1,441 1,128 Reversal of warranty reserves — (355 ) Settlements during the period (1,334 ) (1,082 ) Balance, end of the period 996 1,165 Less: long-term portion of product warranty liability (183 ) (189 ) Current portion, end of the period $ 813 $ 976
Schedule of computation of basic and diluted net income per share	The following table sets forth the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands, except per share data) Net income (loss) $ 37,057 $ 3,403 $ 91,426 $ (16,832 ) Basic and diluted shares: Weighted average ordinary shares outstanding 53,232 50,587 52,560 49,999 Effect of dilutive shares 1,380 988 1,823 — Shares used to compute diluted net income (loss) per share 54,612 51,575 54,383 49,999 Net income (loss) per share — basic $ 0.70 $ 0.07 $ 1.74 $ (0.34 ) Net income (loss) per share — diluted $ 0.68 $ 0.07 $ 1.68 $ (0.34 )

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of new accounting pronouncements and changes in accounting principles	The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606-10 were as follows: December 31, 2017 Adjustments January 1, 2018 (in thousands) Deferred revenue, short term $ 23,485 $ (4,501 ) $ 18,984 Retained earnings $ 181,630 $ 4,501 $ 186,131 In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated balance sheet as of September 30, 2018 was as follows: As Reported Impact of Adoption Amounts under Topic 605 (in thousands) Condensed Consolidated Balance Sheet Deferred revenue, short term $ 20,326 $ 10,550 $ 30,876 Retained earnings $ 277,557 $ (10,550 ) $ 267,007 In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated statement of operations and cash flows was as follows: Three Months Ended September 30, 2018 As Reported Impact of Adoption Amounts under Topic 605 (in thousands, except per share data) Condensed Consolidated Statement of Operations Total revenues $ 279,211 $ 550 $ 279,761 Cost of revenues 95,562 200 95,762 Net income $ 37,057 $ 350 $ 37,407 Earnings per share Basic $ 0.70 $ — $ 0.70 Diluted $ 0.68 $ — $ 0.68 Nine Months Ended September 30, 2018 As Reported Impact of Adoption Amounts under Topic 605 (in thousands, except per share data) Condensed Consolidated Statement of Operations Total revenues $ 798,673 $ (8,549 ) $ 790,124 Cost of revenues 288,228 (2,500 ) 285,728 Net income $ 91,426 $ (6,049 ) $ 85,377 Earnings per share Basic $ 1.74 $ (0.12 ) $ 1.62 Diluted $ 1.68 $ (0.11 ) $ 1.57 Condensed Consolidated Statement of Cash Flows Cash flows from operating activities: Net income $ 91,426 $ (6,049 ) $ 85,377 Accrued liabilities and other liabilities $ (4,273 ) $ 6,049 $ 1,776
Disaggregation of revenue	Revenues by geographic region are as follows (prior period amounts have not been adjusted under the modified retrospective method): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) United States $ 93,566 $ 84,502 $ 291,222 $ 238,453 China 76,514 55,352 186,909 120,543 Europe 51,123 40,870 128,573 126,103 Other Americas 39,709 27,690 100,561 69,938 Other Asia 18,299 17,285 91,408 71,275 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312 The following tables represent our total revenues for the three and nine months ended September 30, 2018 and 2017 by product type and interconnect protocol (prior period amounts have not been adjusted under the modified retrospective method): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) ICs $ 46,397 $ 48,074 $ 103,918 $ 124,559 Boards 130,047 84,247 384,806 228,964 Switch systems 53,484 56,677 166,205 160,012 Cables, accessories and other 49,283 36,701 143,744 112,777 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) InfiniBand: EDR $ 51,658 $ 45,067 $ 166,923 $ 144,126 FDR 33,227 46,123 110,624 138,930 QDR/DDR/SDR 12,980 8,995 25,567 22,225 Total 97,865 100,185 303,114 305,281 Ethernet 175,517 110,673 469,935 278,173 Other 5,829 14,841 25,624 42,858 Total revenue $ 279,211 $ 225,699 $ 798,673 $ 626,312
Changes in deferred revenue balances	The following table presents the significant changes in the deferred revenue balance during the nine months ended September 30, 2018 : (in thousands) Balance, beginning of the period $ 36,804 New performance obligations 21,305 Reclassification to revenue as a result of satisfying performance obligations (19,954 ) Balance, end of the period 38,155 Less: long-term portion of deferred revenue 17,829 Current portion, end of the period $ 20,326

BALANCE SHEET COMPONENTS (Table

BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Schedule of balance sheet components	September 30, 2018 December 31, 2017 (in thousands) Accounts receivable, net: Accounts receivable, gross $ 143,404 $ 154,845 Less: allowance for doubtful accounts (632 ) (632 ) $ 142,772 $ 154,213 Inventories: Raw materials $ 13,643 $ 12,656 Work-in-process 44,194 22,769 Finished goods 47,212 29,232 $ 105,049 $ 64,657 Other current assets: Prepaid expenses $ 4,969 $ 7,518 Derivative contracts receivable 23 982 VAT receivable 4,442 2,259 Other 5,241 3,536 $ 14,675 $ 14,295 Property and equipment, net: Computer, equipment, and software $ 177,037 $ 164,707 Furniture and fixtures 2,740 3,198 Leasehold improvements 49,889 47,262 229,666 215,167 Less: Accumulated depreciation and amortization (124,659 ) (105,248 ) $ 105,007 $ 109,919 Deferred taxes and other long-term assets: Equity investments in private companies $ 36,755 $ 29,255 Deferred taxes 52,536 24,563 Long-term restricted cash 7,942 8,025 Other assets 2,602 4,319 $ 99,835 $ 66,162 Accrued liabilities: Payroll and related expenses $ 60,705 $ 71,868 Accrued expenses 27,520 31,951 Intangible asset financings 5,564 6,915 Derivative contracts payable 900 17 Product warranty liability 813 706 Other 4,924 2,601 $ 100,426 $ 114,058 Other long-term liabilities: Income tax payable $ 28,143 $ 24,425 Deferred rent 2,545 2,220 Other 5,080 7,422 $ 35,768 $ 34,067

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of the fair value hierarchy of the Company's financial assets and liabilities measured at fair value	The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 : Level 1 Level 2 Total (in thousands) Money market funds $ 10,103 $ — $ 10,103 Certificates of deposit — 74,873 74,873 U.S. Government and agency securities — 36,170 36,170 Commercial paper — 45,438 45,438 Corporate bonds — 98,548 98,548 Municipal bonds — 9,688 9,688 Foreign government bonds — 21,238 21,238 10,103 285,955 296,058 Long-term restricted cash — 7,942 7,942 Derivative contracts — 23 23 Total financial assets $ 10,103 $ 293,920 $ 304,023 Derivative contracts — 900 900 Total financial liabilities $ — $ 900 $ 900 The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 : Level 1 Level 2 Total (in thousands) Money market funds $ 1,857 $ — $ 1,857 Certificates of deposit — 58,003 58,003 U.S. Government and agency securities — 43,872 43,872 Commercial paper — 27,029 27,029 Corporate bonds — 54,447 54,447 Municipal bonds — 15,169 15,169 Foreign government bonds — 12,761 12,761 1,857 211,281 213,138 Long-term restricted cash — 8,025 8,025 Derivative contracts — 982 982 Total financial assets $ 1,857 $ 220,288 $ 222,145 Derivative contracts — 17 17 Total financial liabilities $ — $ 17 $ 17

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of cash, cash equivalents and short-term investments	The short-term investments are classified as available-for-sale securities. The cash, cash equivalents and short-term investments at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 Amortized Unrealized Unrealized Estimated (in thousands) Cash and cash equivalents $ 54,122 $ 23 $ — $ 54,145 Money market funds 10,103 — — 10,103 Certificates of deposit 74,922 — (49 ) 74,873 U.S. Government and agency securities 36,260 — (90 ) 36,170 Commercial paper 45,482 1 (45 ) 45,438 Corporate bonds 98,863 — (315 ) 98,548 Municipal bonds 9,715 — (27 ) 9,688 Foreign government bonds 21,292 — (54 ) 21,238 Total 350,759 24 (580 ) 350,203 Less amounts classified as cash and cash equivalents (64,225 ) (23 ) — (64,248 ) Short-term investments $ 286,534 $ 1 $ (580 ) $ 285,955 December 31, 2017 Amortized Unrealized Unrealized Estimated (in thousands) Cash and cash equivalents $ 60,616 $ — $ — $ 60,616 Money market funds 1,857 — — 1,857 Certificates of deposit 58,039 — (36 ) 58,003 U.S. Government and agency securities 44,070 — (198 ) 43,872 Commercial paper 27,073 1 (45 ) 27,029 Corporate bonds 54,673 — (226 ) 54,447 Municipal bonds 15,227 — (58 ) 15,169 Foreign government bonds 12,809 — (48 ) 12,761 Total 274,364 1 (611 ) 273,754 Less amounts classified as cash and cash equivalents (62,473 ) — — (62,473 ) Short-term investments $ 211,891 $ 1 $ (611 ) $ 211,281
Schedule of contractual maturities of short-term investments	The contractual maturities of short-term investments at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Amortized Estimated Amortized Estimated (in thousands) Due in less than one year $ 237,434 $ 237,055 $ 148,232 $ 147,921 Due in one to three years 49,100 48,900 63,659 63,360 $ 286,534 $ 285,955 $ 211,891 $ 211,281

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table represents changes in the carrying amount of goodwill: Balance as of December 31, 2017 $ 472,437 Acquisitions 1,479 Balance as of September 30, 2018 $ 473,916
Schedule of carrying amounts of intangible assets	The carrying amounts of intangible assets as of September 30, 2018 were as follows: Gross Accumulated Net Useful Life (in thousands) (in years) Licensed technology $ 49,399 $ (26,499 ) $ 22,900 1-8 Developed technology 285,443 (154,643 ) 130,800 4-7 Customer relationships 69,776 (29,680 ) 40,096 4-9 Trade names 5,600 (4,856 ) 744 3 Total intangible assets $ 410,218 $ (215,678 ) $ 194,540 The carrying amounts of intangible assets as of December 31, 2017 were as follows: Gross Accumulated Net Useful Life (in thousands) (in years) Licensed technology $ 40,407 $ (16,478 ) $ 23,929 1-8 Developed technology 279,543 (122,414 ) 157,129 4-7 Customer relationships 69,776 (24,783 ) 44,993 4-9 Trade names 5,600 (3,456 ) 2,144 3 Total intangible assets $ 395,326 $ (167,131 ) $ 228,195
Schedule of estimated future amortization expense from amortizable intangible assets	The estimated future amortization expense from amortizable intangible assets is as follows: (in thousands) 2018 (remainder of the year) $ 17,048 2019 61,756 2020 54,372 2021 33,018 2022 11,950 Thereafter 16,396 Total $ 194,540

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of fair value of derivative contracts	The fair value of derivative contracts in the unaudited condensed consolidated balance sheets at September 30, 2018 and December 31, 2017 were as follows: Other current assets Accrued liabilities Other current assets Accrued liabilities September 30, 2018 December 31, 2017 (in thousands) Derivatives designated as hedging instruments Currency forward and option contracts $ 23 $ 882 $ 980 $ — Derivatives not designated as hedging instruments Currency forward and option contracts $ — $ 18 $ 2 $ 17 Total derivatives $ 23 $ 900 $ 982 $ 17
Schedule of notional amounts of outstanding derivative positions	The notional amounts of outstanding derivative contracts in U.S. dollars at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (in thousands) Derivatives designated as hedging instruments Currency forward and option contracts $ 64,075 $ 52,380 Derivatives not designated as hedging instruments Currency forward and option contracts $ 38,599 $ 47,015
Schedule of designated derivative contracts as cash flow hedges and their impact on OCI	The following table represents the unrealized gains (losses) of derivatives designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income as of September 30, 2018 and December 31, 2017 and their effect on OCI for the nine months ended September 30, 2018 : (in thousands) December 31, 2017 $ 925 Amount of loss recognized in OCI (effective portion) (4,528 ) Amount of loss reclassified from OCI to income (effective portion) 2,689 September 30, 2018 $ (914 )
Effect of derivative contracts on the condensed consolidated statement of operations	The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the three months ended September 30, 2018 and 2017 was as follows: Derivatives designated as hedging instruments Derivatives not designated as hedging instruments Three Months Ended September 30, Three Months Ended September 30, 2018 2017 2018 2017 (in thousands) Operating income (loss) $ (1,805 ) $ 1,976 $ — $ — Other income (loss) $ — $ — $ 66 $ (538 ) The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017 was as follows: Derivatives designated as hedging instruments Derivatives not designated as hedging instruments Nine Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Operating income (loss) $ (2,689 ) $ 5,791 $ — $ — Other income (loss) $ — $ — $ (2,638 ) $ 2,767

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum payments under non-cancelable operating leases	At September 30, 2018 , future minimum payments under non-cancelable operating leases are as follows: (in thousands) 2018 (remainder of the year) $ 5,946 2019 23,263 2020 19,728 2021 17,108 2022 12,689 Thereafter 76,640 Total minimum lease payments $ 155,374
Purchase commitment, excluding long-term commitment	At September 30, 2018 , the Company had the following non-cancelable purchase commitments: (in thousands) 2018 (remainder of the year) $ 120,545 2019 102,354 2020 2,096 2021 536 2022 261 Thereafter — $ 225,792

SHARE INCENTIVE PLANS (Tables)

SHARE INCENTIVE PLANS (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of share option awards activity under equity incentive plans	Share option activity under the Company's equity incentive plans in the nine months ended September 30, 2018 is set forth below: Options Outstanding Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2017 1,110,061 $ 38.35 Options exercised (451,878 ) $ 23.05 Options canceled (20,522 ) $ 100.57 Outstanding at September 30, 2018 637,661 $ 47.19
Summary of restricted share units activity	RSU activity under the Company's equity incentive plans in the nine months ended September 30, 2018 is set forth below: Restricted Share Units Outstanding Number of Shares Weighted Average Grant Date Fair Value Non-vested restricted share units at December 31, 2017 3,414,705 $ 48.45 Restricted share units granted 1,640,018 $ 79.72 Restricted share units vested (1,087,426 ) $ 48.07 Restricted share units canceled (475,267 ) $ 51.02 Non-vested restricted share units at September 30, 2018 3,492,030 $ 62.90
Summary of ordinary shares reserved for future issuance under equity incentive plans	The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of September 30, 2018 : Number of Share options outstanding 637,661 Restricted share units outstanding 3,492,030 Shares authorized for future issuance 1,690,557 ESPP shares available for future issuance 2,935,346 Total shares reserved for future issuance as of September 30, 2018 8,755,594
Schedule of weighted average assumptions used to value share options granted	The following weighted average assumptions were used to value ESPP shares issued pursuant to the Company's share incentive plans for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Dividend yield — % — % Expected volatility 24.9 % 24.6 % Risk free interest rate 2.36 % 1.20 % Expected life, years 0.5 0.5
Summary of the distribution of total share-based compensation expense	The following table summarizes the distribution of total share-based compensation expense in the unaudited condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Cost of goods sold $ 515 $ 473 $ 1,341 $ 1,530 Research and development 10,395 10,811 26,909 29,799 Sales and marketing 4,645 4,336 11,890 11,684 General and administrative 3,601 2,940 8,906 7,980 Total share-based compensation expense $ 19,156 $ 18,560 $ 49,046 $ 50,993

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Summary of the changes in accumulated balances of other comprehensive income (loss)	The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Gains (Losses) on Derivatives Designated as Hedging Instruments Total (in thousands) Balance at December 31, 2017 $ 693 $ 925 $ 1,618 Other comprehensive income/(loss) before reclassifications, net of taxes 50 (4,528 ) (4,478 ) Realized (gains)/losses reclassified from accumulated other comprehensive income 4 2,689 2,693 Net current-period other comprehensive income/(loss), net of taxes 54 (1,839 ) (1,785 ) Balance at September 30, 2018 $ 747 $ (914 ) $ (167 ) Balance at December 31, 2016 $ (236 ) $ (692 ) $ (928 ) Other comprehensive income/(loss) before reclassifications, net of taxes 5 7,844 7,849 Realized (gains)/losses reclassified from accumulated other comprehensive income 6 (5,791 ) (5,785 ) Net current-period other comprehensive income/(loss), net of taxes 11 2,053 2,064 Balance at September 30, 2017 $ (225 ) $ 1,361 $ 1,136
Reclassification out of accumulated other comprehensive income	The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2018 and 2017 : Realized (Gains)/Losses Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Operations Nine Months Ended September 30, 2018 2017 (in thousands) Realized (gains)/losses on derivatives designated as hedging instruments $ 2,689 $ (5,791 ) Cost of revenues and Operating expenses: 132 (329 ) Cost of revenues 304 (644 ) General and administrative 238 (566 ) Sales and marketing 2,015 (4,252 ) Research and development Realized (gains)/losses on available-for-sale securities 4 6 Other income, net Total reclassifications for the period $ 2,693 $ (5,785 ) Total

OTHER INCOME, NET (Tables)

OTHER INCOME, NET (Tables)	9 Months Ended
	Sep. 30, 2018
Other Income and Expenses [Abstract]
Schedule of other income, net	Other income, net is summarized in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Interest income and gains on short-term investments, net $ 1,459 $ 1,018 $ 3,398 $ 2,846 Foreign exchange loss, net (300 ) (94 ) (878 ) (414 ) Other (47 ) 32 (237 ) 34 Other income, net $ 1,112 $ 956 $ 2,283 $ 2,466

THE COMPANY AND SUMMARY OF SI_4

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Restricted cash narrative) (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Long-term restricted cash	$ 7,942,000	$ 8,025,000	$ 0

THE COMPANY AND SUMMARY OF SI_5

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Restricted cash) (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents, as reported on the balance sheets	$ 64,248,000	$ 62,473,000	$ 58,416,000
Restricted cash in other long-term assets, as reported on the balance sheets	7,942,000	8,025,000	0
Cash, cash equivalents, and restricted cash, as reported in the statements of cash flows	$ 72,190,000	$ 70,498,000	$ 58,416,000	$ 56,780,000

THE COMPANY AND SUMMARY OF SI_6

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration of credit risk) (Details) - Customer Concentration Risk	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Dell Technologies Inc. (Dell) | Sales revenue, net
Concentration Risk [Line Items]
Percentage of consolidated revenue by major customer	11.00%		12.00%	11.00%
Hewlett Packard Enterprise (HPE) | Sales revenue, net
Concentration Risk [Line Items]
Percentage of consolidated revenue by major customer		12.00%	12.00%	13.00%
Hewlett Packard Enterprise (HPE) | Accounts receivable
Concentration Risk [Line Items]
Percentage of consolidated revenue by major customer					13.00%

THE COMPANY AND SUMMARY OF SI_7

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Product warranty) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Changes in the entity's liability for product warranty
Balance, beginning of the period	$ 889	$ 1,474
New warranties issued during the period	1,441	1,128
Reversal of warranty reserves	0	(355)
Settlements during the period	(1,334)	(1,082)
Balance, end of the period	996	1,165
Less: long-term portion of product warranty liability	(183)	(189)
Current portion, end of the period	$ 813	$ 976	$ 706

THE COMPANY AND SUMMARY OF SI_8

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ 37,057	$ 3,403	$ 91,426	$ (16,832)
Basic and diluted shares:
Weighted average ordinary shares outstanding (in shares)	53,232	50,587	52,560	49,999
Effect of dilutive shares	$ 1,380	$ 988	$ 1,823	$ 0
Shares used to compute diluted net income (loss) per share (in shares)	54,612	51,575	54,383	49,999
Net income (loss) per share - basic (in USD per share)	$ 0.70	$ 0.07	$ 1.74	$ (0.34)
Net income (loss) per share - diluted (in USD per share)	$ 0.68	$ 0.07	$ 1.68	$ (0.34)
Share options and restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	200	1,800	500	5,100

REVENUE (Cumulative effect of c

REVENUE (Cumulative effect of changes for Topic 606 made to balance sheet) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	$ 20,326	$ 18,984	$ 23,485
Retained earnings	277,557	186,131	181,630
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	30,876		23,485
Retained earnings	267,007		$ 181,630
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	10,550	(4,501)
Retained earnings	$ (10,550)	$ 4,501

REVENUE (Impact to Balance Shee

REVENUE (Impact to Balance Sheet) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	$ 20,326	$ 18,984	$ 23,485
Retained earnings	277,557	186,131	181,630
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	30,876		23,485
Retained earnings	267,007		$ 181,630
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenue, short term	10,550	(4,501)
Retained earnings	$ (10,550)	$ 4,501

REVENUE (Impact to Statement of

REVENUE (Impact to Statement of Operations and Cash Flow) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Consolidated Statement of Operations
Total revenues	$ 279,211	$ 225,699	$ 798,673	$ 626,312
Cost of revenues	95,562	77,335	288,228	215,212
Net income	$ 37,057	$ 3,403	$ 91,426	$ (16,832)
Earnings per share
Basic (in USD per share)	$ 0.70	$ 0.07	$ 1.74	$ (0.34)
Diluted (in USD per share)	$ 0.68	$ 0.07	$ 1.68	$ (0.34)
Cash flows from operating activities:
Accrued liabilities and other liabilities			$ (4,273)	$ (3,104)
Calculated under Revenue Guidance in Effect before Topic 606
Condensed Consolidated Statement of Operations
Total revenues	$ 279,761		790,124
Cost of revenues	95,762		285,728
Net income	$ 37,407		$ 85,377
Earnings per share
Basic (in USD per share)	$ 0.70		$ 1.62
Diluted (in USD per share)	$ 0.68		$ 1.57
Cash flows from operating activities:
Accrued liabilities and other liabilities			$ 1,776
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Condensed Consolidated Statement of Operations
Total revenues	$ 550		(8,549)
Cost of revenues	200		(2,500)
Net income	$ 350		$ (6,049)
Earnings per share
Basic (in USD per share)	$ 0		$ (0.12)
Diluted (in USD per share)	$ 0		$ (0.11)
Cash flows from operating activities:
Accrued liabilities and other liabilities			$ 6,049

REVENUE (Revenue by Geographic

REVENUE (Revenue by Geographic Location) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 279,211	$ 225,699	$ 798,673	$ 626,312
United States
Disaggregation of Revenue [Line Items]
Total revenues	93,566	84,502	291,222	238,453
China
Disaggregation of Revenue [Line Items]
Total revenues	76,514	55,352	186,909	120,543
Europe
Disaggregation of Revenue [Line Items]
Total revenues	51,123	40,870	128,573	126,103
Other Americas
Disaggregation of Revenue [Line Items]
Total revenues	39,709	27,690	100,561	69,938
Other Asia
Disaggregation of Revenue [Line Items]
Total revenues	$ 18,299	$ 17,285	$ 91,408	$ 71,275

REVENUE (Revenue by Product Typ

REVENUE (Revenue by Product Type) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 279,211	$ 225,699	$ 798,673	$ 626,312
ICs
Disaggregation of Revenue [Line Items]
Total revenues	46,397	48,074	103,918	124,559
Boards
Disaggregation of Revenue [Line Items]
Total revenues	130,047	84,247	384,806	228,964
Switch systems
Disaggregation of Revenue [Line Items]
Total revenues	53,484	56,677	166,205	160,012
Cables, accessories and other
Disaggregation of Revenue [Line Items]
Total revenues	$ 49,283	$ 36,701	$ 143,744	$ 112,777

REVENUE (Revenue by Interconnec

REVENUE (Revenue by Interconnect Protocol) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 279,211	$ 225,699	$ 798,673	$ 626,312
Remaining service period			remaining service period of up to five years
InfiniBand:
Disaggregation of Revenue [Line Items]
Total revenues	97,865	100,185	$ 303,114	305,281
EDR
Disaggregation of Revenue [Line Items]
Total revenues	51,658	45,067	166,923	144,126
FDR
Disaggregation of Revenue [Line Items]
Total revenues	33,227	46,123	110,624	138,930
QDR/DDR/SDR
Disaggregation of Revenue [Line Items]
Total revenues	12,980	8,995	25,567	22,225
Ethernet
Disaggregation of Revenue [Line Items]
Total revenues	175,517	110,673	469,935	278,173
Other
Disaggregation of Revenue [Line Items]
Total revenues	$ 5,829	$ 14,841	$ 25,624	$ 42,858

REVENUE (Contract Liabilities)

REVENUE (Contract Liabilities) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Change in Contract with Customer, Asset and Liability [Roll Forward]
Balance, beginning of the period	$ 36,804
New performance obligations	21,305
Reclassification to revenue as a result of satisfying performance obligations	(19,954)
Balance, end of period	38,155
Less: long-term portion of deferred revenue	17,829		$ 17,820
Current portion, end of the period	$ 20,326	$ 18,984	$ 23,485

BALANCE SHEET COMPONENTS (Detai

BALANCE SHEET COMPONENTS (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Accounts receivable, net:
Accounts receivable, gross	$ 143,404,000	$ 154,845,000
Less: allowance for doubtful accounts	(632,000)	(632,000)
Accounts receivable, net	142,772,000	154,213,000
Inventories:
Raw materials	13,643,000	12,656,000
Work-in-process	44,194,000	22,769,000
Finished goods	47,212,000	29,232,000
Inventories	105,049,000	64,657,000
Other current assets:
Prepaid expenses	4,969,000	7,518,000
Derivative contracts receivable	23,000	982,000
VAT receivable	4,442,000	2,259,000
Other	5,241,000	3,536,000
Other current assets	14,675,000	14,295,000
Property and equipment, net:
Property and equipment, gross	229,666,000	215,167,000
Less: Accumulated depreciation and amortization	(124,659,000)	(105,248,000)
Property and equipment, net	105,007,000	109,919,000
Deferred taxes and other long-term assets:
Equity investments in private companies	36,755,000	29,255,000
Deferred taxes	52,536,000	24,563,000
Long-term restricted cash	7,942,000	8,025,000	$ 0
Other assets	2,602,000	4,319,000
Deferred taxes and other long-term assets	99,835,000	66,162,000
Accrued liabilities:
Payroll and related expenses	60,705,000	71,868,000
Accrued expenses	27,520,000	31,951,000
Intangible asset financings	5,564,000	6,915,000
Derivative contracts payable	900,000	17,000
Product warranty liability	813,000	706,000	$ 976,000
Other	4,924,000	2,601,000
Accrued liabilities	100,426,000	114,058,000
Other long-term liabilities:
Income tax payable	28,143,000	24,425,000
Deferred rent	2,545,000	2,220,000
Other	5,080,000	7,422,000
Other long-term liabilities	35,768,000	34,067,000
Computer, equipment, and software
Property and equipment, net:
Property and equipment, gross	177,037,000	164,707,000
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	2,740,000	3,198,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	$ 49,889,000	$ 47,262,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Fair value, measurements, recurring basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financial assets measured at fair value
Investments	$ 296,058	$ 213,138
Long-term restricted cash	7,942	8,025
Derivative contracts		982
Total financial assets	304,023	222,145
Derivative contracts	900	17
Total financial liabilities	900	17
Money market funds
Financial assets measured at fair value
Investments	10,103	1,857
Certificates of deposit
Financial assets measured at fair value
Investments	74,873	58,003
U.S. Government and agency securities
Financial assets measured at fair value
Investments	36,170	43,872
Commercial paper
Financial assets measured at fair value
Investments	45,438	27,029
Corporate bonds
Financial assets measured at fair value
Investments	98,548	54,447
Municipal bonds
Financial assets measured at fair value
Investments	9,688	15,169
Foreign government bonds
Financial assets measured at fair value
Investments	21,238	12,761
Level 1
Financial assets measured at fair value
Investments	10,103	1,857
Long-term restricted cash	0	0
Derivative contracts		0
Total financial assets	10,103	1,857
Derivative contracts	0	0
Total financial liabilities	0	0
Level 1 | Money market funds
Financial assets measured at fair value
Investments	10,103	1,857
Level 1 | Certificates of deposit
Financial assets measured at fair value
Investments	0	0
Level 1 | U.S. Government and agency securities
Financial assets measured at fair value
Investments	0	0
Level 1 | Commercial paper
Financial assets measured at fair value
Investments	0	0
Level 1 | Corporate bonds
Financial assets measured at fair value
Investments	0	0
Level 1 | Municipal bonds
Financial assets measured at fair value
Investments	0	0
Level 1 | Foreign government bonds
Financial assets measured at fair value
Investments	0	0
Level 2
Financial assets measured at fair value
Investments	285,955	211,281
Long-term restricted cash	7,942	8,025
Derivative contracts		982
Total financial assets	293,920	220,288
Derivative contracts	900	17
Total financial liabilities	900	17
Level 2 | Money market funds
Financial assets measured at fair value
Investments	0	0
Level 2 | Certificates of deposit
Financial assets measured at fair value
Investments	74,873	58,003
Level 2 | U.S. Government and agency securities
Financial assets measured at fair value
Investments	36,170	43,872
Level 2 | Commercial paper
Financial assets measured at fair value
Investments	45,438	27,029
Level 2 | Corporate bonds
Financial assets measured at fair value
Investments	98,548	54,447
Level 2 | Municipal bonds
Financial assets measured at fair value
Investments	9,688	15,169
Level 2 | Foreign government bonds
Financial assets measured at fair value
Investments	21,238	$ 12,761
Derivative Financial Instruments, Assets [Member]
Financial assets measured at fair value
Derivative contracts	23
Derivative Financial Instruments, Assets [Member] | Level 1
Financial assets measured at fair value
Derivative contracts	0
Derivative Financial Instruments, Assets [Member] | Level 2
Financial assets measured at fair value
Derivative contracts	$ 23

INVESTMENTS (Schedule of cash,

INVESTMENTS (Schedule of cash, cash equivalents and short-term investments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Amortized Cost
Amortized Cost	$ 350,759		$ 350,759		$ 274,364
Short-term investments	286,534		286,534		211,891
Unrealized Gains	(24)		(24)		(1)
Unrealized gains, Short-term investments	1		1		1
Unrealized Losses	(580)		(580)		(611)
Unrealized loss, Short-term investments	580		580		611
Estimated Fair Value
Short term investments, Estimated fair value	350,203		350,203		273,754
Short-term investments	285,955		285,955		211,281
Interest income and gains on short-term investments, net	1,459	$ 1,018	3,398	$ 2,846
Unrealized losses, greater than 12 months	200		200
Cash and cash equivalents
Amortized Cost
Amortized Cost	54,122		54,122		60,616
Unrealized Gains	(23)		(23)		0
Unrealized Losses	0		0		0
Estimated Fair Value
Short term investments, Estimated fair value	54,145		54,145		60,616
Money market funds
Amortized Cost
Amortized Cost	10,103		10,103		1,857
Unrealized Gains	0		0		0
Unrealized Losses	0		0		0
Estimated Fair Value
Short term investments, Estimated fair value	10,103		10,103		1,857
Certificates of deposit
Amortized Cost
Amortized Cost	74,922		74,922		58,039
Unrealized Gains	0		0		0
Unrealized Losses	(49)		(49)		(36)
Estimated Fair Value
Short term investments, Estimated fair value	74,873		74,873		58,003
U.S. Government and agency securities
Amortized Cost
Amortized Cost	36,260		36,260		44,070
Unrealized Gains	0		0		0
Unrealized Losses	(90)		(90)		(198)
Estimated Fair Value
Short term investments, Estimated fair value	36,170		36,170		43,872
Commercial paper
Amortized Cost
Amortized Cost	45,482		45,482		27,073
Unrealized Gains	(1)		(1)		(1)
Unrealized Losses	(45)		(45)		(45)
Estimated Fair Value
Short term investments, Estimated fair value	45,438		45,438		27,029
Corporate bonds
Amortized Cost
Amortized Cost	98,863		98,863		54,673
Unrealized Gains	0		0		0
Unrealized Losses	(315)		(315)		(226)
Estimated Fair Value
Short term investments, Estimated fair value	98,548		98,548		54,447
Municipal bonds
Amortized Cost
Amortized Cost	9,715		9,715		15,227
Unrealized Gains	0		0		0
Unrealized Losses	(27)		(27)		(58)
Estimated Fair Value
Short term investments, Estimated fair value	9,688		9,688		15,169
Foreign government bonds
Amortized Cost
Amortized Cost	21,292		21,292		12,809
Unrealized Gains	0		0		0
Unrealized Losses	(54)		(54)		(48)
Estimated Fair Value
Short term investments, Estimated fair value	21,238		21,238		12,761
Cash and cash equivalents
Amortized Cost
Amortized Cost	64,225		64,225		62,473
Unrealized Gains	(23)		(23)		0
Unrealized Losses	0		0		0
Estimated Fair Value
Short term investments, Estimated fair value	$ 64,248		$ 64,248		$ 62,473

INVESTMENTS (Fair value due by

INVESTMENTS (Fair value due by period) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost
Due in less than one year	$ 237,434	$ 148,232
Due in one to three years	49,100	63,659
Amortized Cost	286,534	211,891
Estimated Fair Value
Due in less than one year	237,055	147,921
Due in one to three years	48,900	63,360
Estimated Fair Value	285,955	211,281
Equity investments in private companies	$ 36,755	$ 29,255

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 472,437
Acquisitions	1,479
Goodwill, ending balance	$ 473,916

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS (Schedule of Carrying Amounts of Intangible Assets) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 410,218	$ 395,326
Accumulated Amortization	(215,678)	(167,131)
Net Carrying Value	194,540	228,195
Licensed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	49,399	40,407
Accumulated Amortization	(26,499)	(16,478)
Net Carrying Value	22,900	23,929
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	285,443	279,543
Accumulated Amortization	(154,643)	(122,414)
Net Carrying Value	130,800	157,129
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	69,776	69,776
Accumulated Amortization	(29,680)	(24,783)
Net Carrying Value	40,096	44,993
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	5,600	5,600
Accumulated Amortization	(4,856)	(3,456)
Net Carrying Value	$ 744	$ 2,144
Useful life	3 years	3 years
Minimum | Licensed technology
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year	1 year
Minimum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Useful life	4 years	4 years
Minimum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	4 years	4 years
Maximum | Licensed technology
Finite-Lived Intangible Assets [Line Items]
Useful life	8 years	8 years
Maximum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Useful life	7 years	7 years
Maximum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	9 years	9 years

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 15.7	$ 15.2	$ 48.5	$ 45.3

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remainder of the year)	$ 17,048
2,019	61,756
2,020	54,372
2,021	33,018
2,022	11,950
Thereafter	16,396
Net Carrying Value	$ 194,540	$ 228,195

DERIVATIVES AND HEDGING ACTIV_3

DERIVATIVES AND HEDGING ACTIVITIES (Fair Value of Derivative Contracts and Notional Amounts) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivatives designated as hedging instruments
Notional Disclosures [Abstract]
Currency forward and option contracts	$ 64,075	$ 52,380
Derivatives not designated as hedging instruments
Notional Disclosures [Abstract]
Currency forward and option contracts	38,599	47,015
Currency forward and option contracts | Accrued liabilities
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, liabilities	900	17
Currency forward and option contracts | Accrued liabilities | Derivatives designated as hedging instruments
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, liabilities	882	0
Currency forward and option contracts | Accrued liabilities | Derivatives not designated as hedging instruments
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, liabilities	18	17
Currency forward and option contracts | Other current assets
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, assets	23	982
Currency forward and option contracts | Other current assets | Derivatives designated as hedging instruments
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, assets	23	980
Currency forward and option contracts | Other current assets | Derivatives not designated as hedging instruments
Derivative, Fair Value, Net [Abstract]
Currency forward contracts, assets	$ 0	$ 2

DERIVATIVES AND HEDGING ACTIV_4

DERIVATIVES AND HEDGING ACTIVITIES (Effect of Derivatives Designated as Hedging Instruments on AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Balance of designated derivative contracts as cash flow hedges and their impact on OCI
Balance at the beginning of the period			$ 1,618
Amount of loss recognized in OCI (effective portion)	$ 1,881	$ (2,689)	(1,839)	$ 2,053
Balance at the end of the period	(167)		(167)
Derivatives designated as hedging instruments
Balance of designated derivative contracts as cash flow hedges and their impact on OCI
Balance at the beginning of the period			925
Amount of loss recognized in OCI (effective portion)			(4,528)
Amount of loss reclassified from OCI to income (effective portion)			2,689
Balance at the end of the period	$ (914)		$ (914)

DERIVATIVES AND HEDGING ACTIV_5

DERIVATIVES AND HEDGING ACTIVITIES (Effective of Contracts on Statement of Operations) (Details) - Realized (Gains)/Losses Reclassified from Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivatives designated as hedging instruments | Operating income (loss)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on derivatives	$ (1,805)	$ 1,976	$ (2,689)	$ 5,791
Derivatives designated as hedging instruments | Other income (loss)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on derivatives	0	0	0	0
Derivatives not designated as hedging instruments | Operating income (loss)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on derivatives	0	0	0	0
Derivatives not designated as hedging instruments | Other income (loss)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on derivatives	$ 66	$ (538)	$ (2,638)	$ 2,767

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	May 03, 2016
Future minimum payments under non-cancelable operating leases
2018 (remainder of the year)		$ 5,946
2,019		23,263
2,020		19,728
2,021		17,108
2,022		12,689
Thereafter		76,640
Total minimum lease payments		155,374
Purchase commitments
2018 (remainder of the year)		120,545
2,019		102,354
2,020		2,096
2,021		536
2,022		261
Thereafter		0
Amount of non-cancelable purchase commitments		225,792
Loss Contingencies [Line Items]
Length of operating lease term (in years)					10 years
Accrued royalties			$ 36,400
Unrecognized tax benefits		48,900		$ 45,200
Unrecognized tax benefits that would impact effective tax rate		23,700
Yokneam
Loss Contingencies [Line Items]
Present value of capital lease obligations		$ 30,300
Settlement Agreement With Israeli Innovative Authority
Loss Contingencies [Line Items]
Settlement agreement expense	$ 9,300

SHARE INCENTIVE PLANS (Stock Op

SHARE INCENTIVE PLANS (Stock Option Plans) (Details) - shares	Jul. 25, 2018	Sep. 30, 2018
Share incentive plans
Common stock, capital shares reserved for future issuance (in shares)		8,755,594
Third Restated Plan
Share incentive plans
Number of additional shares authorized (in shares)	4,467,000
Common stock, capital shares reserved for future issuance (in shares)	2,077,000

SHARE INCENTIVE PLANS (Summary

SHARE INCENTIVE PLANS (Summary of Share Option Awards Activity Under Equity Incentive Plans) (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 28, 2018	Dec. 31, 2017
Number of Shares
Options outstanding at the beginning of the period (in shares)	1,110,061
Options exercised (in shares)	(451,878)
Options canceled (in shares)	(20,522)
Options outstanding at the end of the period (in shares)	637,661
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in USD per share)	$ 38.35
Options exercised (in USD per share)	23.05
Options canceled (in USD per share)	100.57
Options outstanding at the end of the period (in USD per share)	$ 47.19
Pretax intrinsic value of options exercised	$ 25.5	$ 6.3
Share price (in USD per share)			$ 73.45
Pretax intrinsic value of options outstanding	$ 20.8			$ 35.5
Options, exercisable, number (in shares)	636,308			1,107,712
Pretax intrinsic value of exercisable options	$ 20.7			$ 35.4

SHARE INCENTIVE PLANS (Summar_2

SHARE INCENTIVE PLANS (Summary of Restricted Share Units Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Restricted Share Units Outstanding
Number of Shares
Non vested restricted share units at the beginning of the period (in shares)	3,414,705
Restricted share units granted (in shares)	1,640,018
Restricted share units vested (in shares)	(1,087,426)
Restricted share units canceled (in shares)	(475,267)
Non vested restricted share units at the end of the period (in shares)	3,492,030
Weighted Average Grant Date Fair Value
Non vested restricted share units at the beginning of the period (in USD per share)	$ 48.45
Restricted share units granted (in USD per share)	79.72	$ 50.05
Restricted share units vested (in USD per share)	48.07
Restricted share units cancelled (in USD per share)	51.02
Non vested restricted share units at the end of the period (in USD per share)	$ 62.90
Total intrinsic value of all outstanding restricted share units	$ 256.5		$ 220.9
Performance Shares
Number of Shares
Non vested restricted share units at the end of the period (in shares)	36,000

SHARE INCENTIVE PLANS (Employee

SHARE INCENTIVE PLANS (Employee Stock Purchase Plan activity) (Details) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock issued during period, employee stock ownership plan (in shares)	490,123	568,876
Average price per share (in USD per share)	$ 46.62	$ 38.83

SHARE INCENTIVE PLANS (Shares R

SHARE INCENTIVE PLANS (Shares Reserved, ESPP Assumptions) (Details) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Number of Shares
Share options outstanding (in shares)	637,661
Shares authorized for future issuance (in shares)	1,690,557
Common stock, capital shares reserved for future issuance (in shares)	8,755,594
Restricted Share Units Outstanding
Number of Shares
Restricted share units outstanding (in shares)	3,492,030		3,414,705
Employee stock
Number of Shares
Shares authorized for future issuance (in shares)	2,935,346
Weighted average assumptions
Dividend yield	0.00%	0.00%
Expected volatility	24.90%	24.60%
Risk free interest rate	2.36%	1.20%
Expected life, years	6 months	6 months

SHARE INCENTIVE PLANS (Share-Ba

SHARE INCENTIVE PLANS (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based compensation expense
Allocated share-based compensation expense	$ 19,156	$ 18,560	$ 49,046	$ 50,993
Total unrecognized share-based compensation costs related to non-vested awards	205,200		$ 205,200
Weighted average period for recognition of unrecognized share-based compensation costs (in years)			3 years 26 days
Cost of goods sold
Share-based compensation expense
Allocated share-based compensation expense	515	473	$ 1,341	1,530
Research and development
Share-based compensation expense
Allocated share-based compensation expense	10,395	10,811	26,909	29,799
Sales and marketing
Share-based compensation expense
Allocated share-based compensation expense	4,645	4,336	11,890	11,684
General and administrative
Share-based compensation expense
Allocated share-based compensation expense	$ 3,601	$ 2,940	$ 8,906	$ 7,980

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Summary of the changes in accumulated balances of other comprehensive income (loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 1,057,448
Other comprehensive income/(loss) before reclassifications, net of taxes			(4,478)	$ 7,849
Realized (gains)/losses reclassified from accumulated other comprehensive income			2,693	(5,785)
Other comprehensive income (loss), net of tax	$ 2,015	$ (2,700)	(1,785)	2,064
Ending balance	1,233,903		1,233,903
Unrealized Gains (Losses) on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			693	(236)
Other comprehensive income/(loss) before reclassifications, net of taxes			50	5
Realized (gains)/losses reclassified from accumulated other comprehensive income			4	6
Other comprehensive income (loss), net of tax			54	11
Ending balance	747	(225)	747	(225)
Unrealized Gains (Losses) on Derivatives Designated as Hedging Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			925	(692)
Other comprehensive income/(loss) before reclassifications, net of taxes			(4,528)	7,844
Realized (gains)/losses reclassified from accumulated other comprehensive income			2,689	(5,791)
Other comprehensive income (loss), net of tax			(1,839)	2,053
Ending balance	(914)	1,361	(914)	1,361
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			1,618	(928)
Ending balance	$ (167)	$ 1,136	$ (167)	$ 1,136

ACCUMULATED OTHER COMPREHENSI_4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassification out of accumulated other comprehensive income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassifications out of accumulated other comprehensive income
Cost of revenues	$ (95,562)	$ (77,335)	$ (288,228)	$ (215,212)
General and administrative	(13,895)	(13,039)	(54,046)	(38,034)
Sales and marketing	(36,344)	(37,829)	(111,511)	(111,696)
Research and development	(92,930)	(90,916)	(266,508)	(271,755)
Other income, net	$ 1,112	$ 956	2,283	2,466
Total reclassifications for the period			2,693	(5,785)
Realized (Gains)/Losses Reclassified from Accumulated Other Comprehensive Income (Loss) | Realized (gains)/losses on derivatives designated as hedging instruments
Reclassifications out of accumulated other comprehensive income
Cost of revenues and Operating expenses			2,689	(5,791)
Cost of revenues			132	(329)
General and administrative			304	(644)
Sales and marketing			238	(566)
Research and development			2,015	(4,252)
Realized (Gains)/Losses Reclassified from Accumulated Other Comprehensive Income (Loss) | Realized (gains)/losses on available-for-sale securities
Reclassifications out of accumulated other comprehensive income
Other income, net			$ 4	$ 6

INCOME TAXES (Details)

INCOME TAXES (Details)	Jun. 14, 2017	Sep. 30, 2018USD ($)subsidiary$ / shares	Sep. 30, 2017	Dec. 31, 2017USD ($)
Income Tax Disclosure [Line Items]
Unrecognized tax benefits		$ 48,900,000		$ 45,200,000
Unrecognized tax benefits, income tax penalties and interest accrued		2,600,000		1,600,000
Release of valuation allowance against deferred tax assets		26,100,000
Provisional decrease to deferred tax assets		$ 0		$ 3,200,000
Effective income tax rate, percent		(34.00%)	(20.90%)
Israel Tax Authority
Income Tax Disclosure [Line Items]
Income tax holiday, income tax benefits (in usd per share) | $ / shares		$ 0.34
Tel Aviv | Israel Tax Authority
Income Tax Disclosure [Line Items]
Effective income tax rate, percent	12.00%
Yokneam | Israel Tax Authority
Income Tax Disclosure [Line Items]
Effective income tax rate, percent	7.50%
Israel Tax Authority
Income Tax Disclosure [Line Items]
Income tax holiday, aggregate dollar amount		$ 18,700,000
Israel Tax Authority | Israel Tax Authority
Income Tax Disclosure [Line Items]
Number of subsidiaries | subsidiary		1
Israel Tax Authority | Tel Aviv
Income Tax Disclosure [Line Items]
Income tax holiday reduced income tax rate after second year of tax holiday		10.00%

OTHER INCOME, NET (Details)

OTHER INCOME, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Income and Expenses [Abstract]
Interest income and gains on short-term investments, net	$ 1,459	$ 1,018	$ 3,398	$ 2,846
Foreign exchange loss, net	(300)	(94)	(878)	(414)
Other	(47)	32	(237)	34
Other income, net	$ 1,112	$ 956	$ 2,283	$ 2,466

TERM DEBT (Details)

TERM DEBT (Details)	Feb. 22, 2016USD ($)
Debt Disclosure [Abstract]
Debt instrument, face amount	$ 280,000,000
Debt issuance costs	$ 5,500,000

RESTRUCTURING CHARGES (Details)

RESTRUCTURING CHARGES (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Employee separation and severance costs
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	$ 0	$ 3.5
Contract termination
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	0	3.4
Disposal of assets
Restructuring Cost and Reserve [Line Items]
Restructuring and impairment charges	0	2.4
Facility closing costs
Restructuring Cost and Reserve [Line Items]
Restructuring cost, expected remaining cost	$ 0.5	$ 0.5

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	Jul. 11, 2018USD ($)	Jun. 19, 2018USD ($)board_memberdirector
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling interest		10.30%
Investee | Starboard Value, LP | Settlement Agreement
Related Party Transaction [Line Items]
Number of resignations from the board | board_member		3
Number of appointed directors to the board | director		2
Number of independent nominees to the board | board_member		1
Maximum reimbursement | $		$ 2,000,000
Costs paid to related party | $	$ 2,000,000