Sapiens International (SPNS) 20-F 25 Mar 21 2020 FY Annual report (foreign) Financial data

Document And Entity Information

Document And Entity Information	12 Months Ended
	Dec. 31, 2020shares
Document Information Line Items
Entity Registrant Name	SAPIENS INTERNATIONAL CORPORATION N.V.
Trading Symbol	SPNS
Document Type	20-F
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	54,661,699
Amendment Flag	false
Entity Central Index Key	0000885740
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	000-20181
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	Azrieli Center
Entity Address, Address Line Two	26 Harokmim St.
Entity Address, City or Town	Holon
Entity Address, Postal Zip Code	5885800
Entity Address, Country	IL
Contact Personnel Fax Number	972-3-790 2942
Title of 12(b) Security	Common Shares, par value €0.01 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Document Accounting Standard	U.S. GAAP
Business Contact
Document Information Line Items
Entity Address, Address Line One	Azrieli Center
Entity Address, Address Line Two	26 Harokmim St.
Entity Address, City or Town	Holon
Entity Address, Postal Zip Code	5885800
Entity Address, Country	IL
Contact Personnel Name	Roni Giladi
Contact Personnel Fax Number	+972-3-790 2942
City Area Code	972
Local Phone Number	3-790-2000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 152,561	$ 66,295
Short-term bank deposit	30,000
Investment in restricted deposit		22,890
Trade receivables (net of allowance for credit losses of $543 and $1,558 at December 31, 2019 and 2020, respectively)	48,623	34,615
Unbilled receivables and contract assets	16,786	15,606
Other receivables and prepaid expenses	19,388	7,817
Total current assets	267,358	147,223
LONG-TERM ASSETS:
Capitalized software development costs, net	24,362	23,953
Other intangible assets, net	74,953	34,035
Property and equipment, net	16,970	16,601
Goodwill	264,282	170,703
Severance pay fund	6,582	5,106
Operating lease right-of-use assets	54,390	49,539
Other long-term assets	5,264	5,261
Total long-term assets	446,803	305,198
Total assets	714,161	452,421
CURRENT LIABILITIES:
Trade payables	5,389	5,107
Employees and payroll accruals	40,494	26,710
Accrued expenses and other liabilities	34,625	33,864
Current maturities of Series B Debentures	19,796	9,898
Current maturities of operating lease liabilities	9,924	8,312
Deferred revenues	34,548	21,021
Total current liabilities	144,776	104,912
LONG-TERM LIABILITIES:
Series B Debentures, net of current maturities	98,676	58,850
Deferred tax liabilities	16,010	5,082
Other long-term liabilities	12,129	8,321
Long-term operating lease liabilities	48,773	43,394
Accrued severance pay	9,586	6,364
Redeemable non-controlling interest	517	0
Total long-term liabilities	185,691	122,011
COMMITMENTS AND CONTINGENT LIABILITIES
Share capital:
Common shares of € 0.01 par value: Authorized: 70,000,000 shares at December 31, 2018 and 2019; Issued: 52,310,300 and 52,488,172 shares at December 31, 2018 and 2019, respectively; Outstanding: 49,982,004 and 50,159,876 shares at December 31, 2018 and 2019, respectively	751	697
Additional paid-in capital	334,693	217,014
Treasury shares, at cost - 2,328,296 Common shares at December 31, 2019 and 2020	(9,423)	(9,423)
Accumulated other comprehensive income (loss)	11,026	(2,381)
Retained earnings	44,643	17,912
Total Sapiens International Corporation N.V. shareholders’ equity	381,690	223,819
Non-controlling interests	2,004	1,679
Total equity	383,694	225,498
Total liabilities and equity	$ 714,161	$ 452,421

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) $ in Thousands	Dec. 31, 2020USD ($)shares	Dec. 31, 2020€ / shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2019€ / shares
Statement of Financial Position [Abstract]
Trade receivables, net of allowance for doubtful accounts (in Dollars) | $	$ 1,558		$ 543
Common shares, par value (in Euro per share) | € / shares		€ 0.01		€ 0.01
Common shares, authorized	70,000,000		70,000,000
Common shares, issued	56,989,995		52,488,172
Common shares, outstanding	54,661,699		50,159,876
Treasury shares, shares	2,328,296		2,328,296

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenues	$ 382,903	$ 325,674	$ 289,707
Cost of revenues	226,929	196,153	180,138
Gross profit	155,974	129,521	109,569
Operating expenses:
Research and development	41,358	37,378	34,414
Selling, marketing, general and administrative	69,613	54,274	52,133
Total operating expenses	110,971	91,652	86,547
Operating income	45,003	37,869	23,022
Financial expense, net	3,805	2,768	3,991
Income before taxes on income	41,198	35,101	19,031
Taxes on income	7,041	8,610	5,031
Net income	34,157	26,491	14,000
Attributed to non-controlling interests	382	244	215
Net income attributable to Sapiens’ shareholders	$ 33,775	$ 26,247	$ 13,785
Basic (in Dollars per share)	$ 0.67	$ 0.53	$ 0.28
Diluted (in Dollars per share)	$ 0.65	$ 0.52	$ 0.28

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 34,157	$ 26,491	$ 14,000
Foreign currency translation adjustments	13,456	5,496	(8,370)
Total comprehensive income	47,613	31,987	5,630
Comprehensive income attributed to non-controlling interests	431	301	193
Comprehensive income attributable to Sapiens’ shareholders	$ 47,182	$ 31,686	$ 5,437

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Treasury shares	Accumulated other comprehensive income (loss)	(Accumulated deficit) Retained earnings	Non-controlling interests	Total
Balance at Dec. 31, 2017	$ 689	$ 221,175	$ (9,423)	$ 528	$ (12,926)	$ 831	$ 200,874
Balance (in Shares) at Dec. 31, 2017	49,758,434
Cumulative effect adjustment resulting from adoption of new accounting pronouncement, net					1,815		1,815
Stock-based compensation		1,796				146	1,942
Employee stock options exercised (cash and cashless)	$ 6	889					895
Employee stock options exercised (cash and cashless) (in Shares)	223,570
Expiration of redeemable non-controlling interests		1,036				317	1,353
Distribution of dividend		(9,978)				(47)	(10,025)
Other comprehensive income (loss)				(8,348)		(22)	(8,370)
Net income					13,785	215	14,000
Balance at Dec. 31, 2018	$ 695	214,918	(9,423)	(7,820)	2,674	1,440	202,484
Balance (in Shares) at Dec. 31, 2018	49,982,004
Stock-based compensation		1,318				87	1,405
Employee stock options exercised (cash and cashless)	$ 2	778					780
Employee stock options exercised (cash and cashless) (in Shares)	177,872
Distribution of dividend					(11,009)	(149)	(11,158)
Other comprehensive income (loss)				5,439		57	5,496
Net income					26,247	244	26,491
Balance at Dec. 31, 2019	$ 697	217,014	(9,423)	(2,381)	17,912	1,679	225,498
Balance (in Shares) at Dec. 31, 2019	50,159,876
Stock-based compensation		3,975				12	3,987
Employee stock options exercised (cash and cashless)	$ 11	5,039					5,050
Employee stock options exercised (cash and cashless) (in Shares)	603,519
Distribution of dividend					(7,044)		(7,044)
Other comprehensive income (loss)				13,407		49	13,456
Net income					33,775	382	34,157
Acquisition of minority interest		(29)				(118)	(147)
Proceeds from issuance of ordinary shares, net of issuance expenses	$ 43	108,694					108,737
Proceeds from issuance of ordinary shares, net of issuance expenses (in Shares)	3,898,304
Balance at Dec. 31, 2020	$ 751	$ 334,693	$ (9,423)	$ 11,026	$ 44,643	$ 2,004	$ 383,694
Balance (in Shares) at Dec. 31, 2020	54,661,699

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 34,157	$ 26,491	$ 14,000
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	23,383	19,138	19,862
Stock-based compensation	3,987	1,405	1,942
Accretion of discount on Series B Debentures	134	171	194
Impairment of right of use asset	351
Capital loss (gain) from sale of property and equipment	44	(40)
Net changes in operating assets and liabilities
Trade receivables, net, unbilled receivables and contract assets	(5,168)	10,514	(7,588)
Other operating assets	(2,049)	6,726	509
Deferred tax liabilities, net	(16)	(6,441)	(1,567)
Trade payables	(1,344)	(1,476)	(1,870)
Other operating liabilities	1,435	6,667	(174)
Deferred revenues	2,992	2,747	2,349
Accrued severance pay, net	349	255	43
Net cash provided by operating activities	58,255	66,157	27,700
Cash flows from investing activities:
Purchase of property and equipment	(2,633)	(11,474)	(1,914)
Proceeds from sale of property and equipment	12	834
Capitalized software development costs	(5,798)	(5,665)	(5,160)
Net cash paid for acquisitions (b)	(109,052)	(1,554)	(18,507)
Investment in deposits	(30,397)	(1,119)
Investment in restricted deposit on account of future acquisition	22,890	(22,890)
Acquisition of intellectual property rights	(2,810)
Net cash used in investing activities	(127,788)	(41,868)	(25,581)
Cash flows from financing activities:
Proceeds from employee stock options exercised	5,050	780	895
Receipt of short-term loan	20,000
Repayment of loans	(20,000)	(4)	(237)
Proceeds from issuance of Series B Debentures, net of issuance expenses	60,346
Repayment of Series B Debentures	(9,898)	(9,898)
Distribution of dividend	(7,044)	(11,009)	(9,978)
Acquisition of minority interests	(147)
Payments of contingent consideration	(538)	(374)	(61)
Dividend to non-controlling interest		(149)	(47)
Proceeds from issuance of ordinary shares, net of issuance expenses	108,737
Net cash provided by (used in) financing activities	156,506	(20,654)	(9,428)
Effect of exchange rate changes on cash	(707)	(1,968)	470
Increase (decrease) in cash, and cash equivalents	86,266	1,667	(6,839)
Cash, cash equivalents at beginning of year	66,295	64,628	71,467
Cash and cash equivalents at end of year	152,561	66,295	64,628
Supplemental cash flow activities:
Interest paid, net	5,439	2,481	2,067
Income taxes	16,330	6,397	2,853
Working capital, net (excluding cash and cash equivalents)	10,839	317	2,317
Other long-term assets	(9,577)	(412)	(186)
Other long-term liabilities	24,572	200	3,766
Redeemable non-controlling interests	450
Goodwill and other intangible assets	(135,336)	(1,659)	(24,404)
Net cash paid for acquisitions, total	(109,052)	(1,554)	(18,507)
Disposal of property			(155)
Net lease liabilities arising from obtaining right-of-use assets	1,861	19,125
Property and equipment purchase incurred but unpaid at period end	$ 490	$ 315	$ 76

General

General	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
GENERAL	NOTE 1:- GENERAL a. General: Sapiens International Corporation N.V. (“Sapiens”) and its subsidiaries (collectively, the “Company”), a member of the Formula Systems (1985) Ltd. (“Formula”) Group, is a global provider of software solutions for the insurance industry. The ultimate parent of the Company is Asseco Poland S.A. (“Asseco”), a Polish public company, traded on the Warsaw Stock Exchange. The Company’s expertise is reflected in its innovative software, solutions and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&P); workers’ compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modelling for both insurance and financial markets. The Company offers end to end solutions for insurers core, data & analytics and digital operations, as well as stand-alone solutions which help them optimize and maximize their current investment. The Company mainly operates in North America, Europe and Asia Pacific. In March 2020, the World Health Organization categorized the novel coronavirus (“COVID-19”) as a pandemic. The COVID-19 pandemic has rapidly changed market and economic conditions globally, impacting the Company’s customers, employees, as well the Company’ s business results of operations, although the COVID-19 has not had a material negative impact on the Company’s business to date. The Company remains focused on protecting the health and wellbeing of its employees and the communities in which it operates, while assuring the continuity of the Company’s business operations. b. Acquisitions in the current year: 1. Acquisition of Thor Denmark Holding ApS and its subsidiaries: On November 30, 2020 (“the TIA Acquisition Date”), the Company completed the acquisition of all of the outstanding shares of Thor Denmark Holding ApS (“TIA”), a leading vendor of digital software solutions. TIA offers comprehensive software solutions primarily for Property & Casualty insurers, as well as several innovative extension modules. Additionally, TIA offers a full scope of expert implementation, application management and hosting services, enabling insurers to execute their digital and business strategies. The purchase price amounted to $76,107 in cash, subject to net working capital adjustments. Acquisition related costs amounted to $719, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income. The results of TIA’s operations have been included in the consolidated financial statements from the TIA Acquisition Date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: Current assets (including cash of $2,292) $ 7,448 Goodwill 57,527 Intangible assets 29,946 Other long-term assets 4,255 Total assets acquired $ 99,176 Current liabilities $ 1,889 Deferred revenues 5,742 Deferred tax liabilities 7,181 Other long-term liabilities 8,257 Total liabilities acquired $ 23,069 Net assets acquired $ 76,107 The following table sets forth the components of intangible assets associated with the acquisition: Fair value Developed technology $ 10,517 Customer relationships 19,266 Backlog 163 Total intangible assets $ 29,946 The goodwill from the acquisition of TIA is primarily attributable to potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Unaudited pro forma condensed results of operations were not presented, since the acquisition did not meet the criteria set forth in SEC Regulation S-X Rule 11-01. 2. Acquisition of sum.cumo: On February 6, 2020 (the “sum.cumo Acquisition Date”), Sapiens completed the acquisition of all the outstanding shares of sum.cumo GmbH (“sum.cumo”), a German company, which services insurers in the DACH region, helping them to achieve digital transformation of set up their existing business models or to design entirely new business models based on pure digital processes. sum.cumo’s experts in consulting, user experience, marketing and technology enable the region’s insurers to launch highly automated platforms well suited for e-commerce and real-time processing of transactions. The purchase price totaled $ 22,487 The table below presents the fair value that was allocated to sum.cumo’s assets and liabilities based upon fair values as determined by the Company. Net assets (including cash of $ 981) $ 1,447 Intangible assets 9,730 Deferred tax liabilities (3,211 ) Goodwill 14,521 Net assets acquired $ 22,487 The goodwill from the acquisition of sum.cumo is primarily attributable to sales growth from future products, new customers and potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Unaudited pro forma condensed results of operations were not presented, since the acquisition did not meet the criteria set forth in SEC Regulation S-X Rule 11-01. 3. Acquisition of Delphi Technology Inc. and its subsidiary: On July 27, 2020 (the “Delphi Acquisition Date”), the Company completed the acquisition of Delphi Technology Inc. (“Delphi”), a leading vendor of software solutions for property & casualty (P&C) carriers, with a focus on the medical professional liability (MPL)/healthcare professional liability (HCPL) markets (sometimes referred to as “medical malpractice”). The total purchase price was $19,600 in cash. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. On April 22, 2020, Delphi applied for such aid in the form of U.S. Small Business Administration’s Paycheck Protection Program (“PPP Loan”) in the amount of $1,546. The PPP Loan is scheduled to mature on April 22, 2022, has a 1% interest rate, and is subject to the terms and conditions applicable to all loans made pursuant to the Paycheck Protection Program as administered by the U.S. Small Business Administration under the CARES Act. The PPP Loan was applied for by Delphi prior to the acquisition of the Company. The table below presents the fair value that was allocated to Delphi’s assets and liabilities based upon fair values as determined by the Company: Net liabilities (including cash of $ 6,265) $ (524 ) Intangible assets 7,562 Deferred tax liabilities, net (2,313 ) Goodwill 14,875 Net assets acquired $ 19,600 The goodwill from the acquisition of Delphi is primarily attributable to potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Unaudited pro forma condensed results of operations were not presented, since the acquisition did not meet the criteria set forth in SEC Regulation S-X Rule 11-01. 4. Acquisition of Tiful Gemel Ltd.: On June 1, 2020 (the “Tiful Gemel Acquisition Date”), Sapiens completed the acquisition of 75% of the outstanding shares of Tiful Gemel Ltd. (“Tiful Gemel”), an Israeli company which provides software solutions and managed services related to pension and provident funds in the Israeli market, for a total cash consideration of $1,281. In addition, under the share purchase agreement, the Company is committed to acquire the remainder of Tiful Gemel’s outstanding shares on June 1, 2023. Unaudited pro forma condensed results of operations were not presented, since the acquisition did not meet the criteria set forth in SEC Regulation S-X Rule 11-01. c. Acquisitions in previous years: 1. Acquisition of Cálculo S.A.U.: On September 27, 2019 (the “Acquisition Date”), Sapiens completed the acquisition of all outstanding shares of Cálculo S.A.U (“Cálculo”), a Spanish company of insurance consulting and managed services, and a core solution to the Spanish market, for a total cash consideration of $5,760 (of which $5,608 were paid in September 2019, and $152 was paid in the first half of 2020). In addition, the sellers and senior executives have performance-based payments relating to achievements of various targets over three years (2019-2021) of up to $1,700. Some of these payments are subject to continued employment, and therefore were not included in the purchase price. Acquisition related costs were immaterial. The results of Cálculo’s operations have been included in the consolidated financial statements from the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date: Net assets (including cash of $ 4,054) $ 4,101 Intangible assets 1,037 Goodwill 622 Net assets acquired $ 5,760 2. Acquisition of Adaptik Corporation: On March 7, 2018 (the “acquisition date”), Sapiens completed the acquisition of all outstanding shares of Adaptik Corporation (“Adaptik”), a New-Jersey company engaged in the development of software solutions for P&C insurers, (including policy administration, rating, billing, customer and task management and product design), for a total cash consideration of $18,179 (of which $17,979 was paid in March 2018 and $200 will be paid in March 2022). In addition, the seller has performance-based payments relating to achievements of revenue targets over three years (2018-2020) of up to $3,700, of which $1,300 was paid during 2019 and an additional $1,355 was paid during 2020. Such payments are subject to continued employment and therefore were not included in the purchase price. Acquisition related costs were approximately $300. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date: Net liabilities $ (2,697 ) Intangible assets 12,936 Deferred taxes (3,528 ) Goodwill 11,468 Net assets acquired $ 18,179 The result of Adaptik’s operations have been included in the consolidated financial statements since March 2018.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in United States (“U.S. GAAP”). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, value of intangible assets and goodwill, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar (“dollar”); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries’ transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders’ share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. According to the share purchase agreement of Tiful Gemel, the Company will purchase the remainder of Tiful Gemel’s outstanding shares on June 1, 2023 for $450. This resulted in classification of the mandatory redeemable noncontrolling interests associated with the acquisition of Tiful Gemel as a liability in the Company’s consolidated balance sheet. See Note 1.b.4 for further information related to the acquisition of Tiful Gemel. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at acquisition. e. Short-term bank deposits: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values. f. Investment in restricted deposit: As of December 31, 2019, the Company maintained a certain cash amount deposited in a trust in order to secure the acquisition of sum.cumo GmbH. Such deposit has been withdrawn and paid to Sum.Cumo GmbH shareholders as of the closing date on February 2020. g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter. h. Leases: Effective of January 1, 2019, the Company adopted Topic 842, which requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating leases. The Company adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing on the date of initial application. The Company elected to keep leases with an initial term of 12 months or less, which do not include an option to renew the lease agreement, off the balance sheet, and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct the use of the asset. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. Since all of the Company’s lease contracts do not meet any one of the criteria above, the Company concluded that all of its lease contracts should be classified as operation leases. ROU assets and liabilities are recognized on the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available on the commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Moreover, the ROU asset may also include initial direct costs, which are incremental costs of a lease that would not have been incurred if the lease had not been obtained. The Company uses the long-lived assets impairment guidance in Accounting Standards Codification (“ASC”) Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Offices The Company leases space for offices in various locations worldwide under operating leases. These contracts are considered as operating leases. Motor vehicles The Company leases motor vehicles. Each leasing contract is generally valid for a term of three years. These contracts are considered as operating leases presented in ROU assets. The Company elected the practical expedient to not separate lease and non-lease components from its leases. i. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Certain internal and external costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold Leased, or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized by the straight-line method over the estimated useful life of the software products (primarily seven years). j. Business combinations: The Company accounts for its business acquisitions in accordance with Accounting Standards Codification ASC No. 805, “Business Combinations”. The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible assets acquired is assigned based on the fair values as of the date of the acquisition. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies’ respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition Under ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business (“2017-01”), while first determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is not a business. k. Other intangible assets, net: Technology and patents acquired are amortized over their estimated useful life on a straight-line basis. The acquired customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized method. The average annual rates for other intangible assets are as follows: % Technology 13 - 50 Customer relationships 7 - 15 Patent 10 l. Impairment of long-lived assets: The Company’s long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 “Property, Plant, and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 provides examples of events or changes in circumstances that might indicate that impairment exists for a particular long-lived asset or asset group. Among those events and circumstances that the Company believes to be impairment indicators are: - A significant decrease in the market price of a long-lived asset (asset group) - A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During 2018 and 2019, no impairment losses have been identified. During 2020, the Company identified an impairment loss of $351 as outlined in Note 5. m. Goodwill: Goodwill is carried at cost and is not amortized but rather is tested for impairment at least annually or between annual tests in certain circumstances. Goodwill represents the excess of the purchase price in a business combination over the fair value of the identifiable tangible and intangible assets acquired. Under ASC 350, “Intangibles- Goodwill and Other” (“ASC 350”), goodwill is subject to an annual impairment test at December 31 of each year or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: L&P (Life & Pension), P&C (Property & Casualty), Decision and IPELS (Israel, Poland, Emerge, Latvia, Spain). ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If the Company elects not to use this option, or if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of a reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit would exceed its estimated fair value, the Company would have recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which was adopted as of January 1, 2020. For the years ended December 31, 2018, 2019 and 2020, no impairment of goodwill has been recorded. n. Revenue recognition: The Company implements the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 17 for further disclosures. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company determines revenue recognition through the following steps: - identification of the contract with a customer; - identification of the performance obligations in the contract; - determination of the transaction price; - allocation of the transaction price to the performance obligations in the contract; and - recognition of revenue when, or as, the Company satisfies a performance obligation. Most of the Company’s contracts contain multiple performance obligations. which are accounted for separately if they are distinct. On most occasions, the Company generates revenues from sales of software licenses which include significant implementation and customization services. Such software licenses and implementation and customization services are not considered distinct performance obligations and are accounted for as one performance obligation. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues from contracts (either fixed price or Time and Materials In addition, the Company has enforceable right to payment for performance completed to date. Accordingly, the Company recognizes revenue on such contracts over time, using the percentage of completion accounting method. The Company recognizes revenue and gross profit as the work is performed, based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses become probable, in the amount of the estimated loss on the entire contract. Determining the projected labor costs requires understanding the project-specific circumstances, including the specific terms and conditions of each complex contract, changes to the project schedule, and complexity of the project. When post implementation and consulting services do not involve significant customization, the Company accounts for such services as performance obligations satisfied over time and revenues are recognized as the services are provided. When the Company enters into a contract for the sale of software license which does not require significant implementation services, and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation, as the customer can benefit from the software on its own. The Company allocates the transaction price for each contract to each performance obligation identified in the contract based on the relative standalone selling price (SSP). The Company determines SSP for the purposes of allocating the transaction price to each performance obligation by considering several external and internal factors including, but not limited to, transactions where the specific performance obligation is sold separately, historical actual pricing practices and geographies in which the Company offers its services. If a specific performance obligation, such as the software license, is sold for a broad range of amounts (that is, the selling price is highly variable) or if the Company has not yet established a price for that good or service, and the good or service has not previously been sold on a standalone basis (that is, the selling price is uncertain), the Company applies the residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs with any residual amount of transaction price allocated to the remaining specific performance obligation. In addition to software license fees, contracts with customers may contain an agreement to provide for maintenance services. The Company considers the maintenance performance obligation as a distinct performance obligation that is satisfied over time, and recognized on a straight-line basis over the contractual period. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Sales commissions on initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and then amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and then amortized on a straight-line basis over the related contractual renewal period. If the expected amortization period is one-year or less, the company uses the practical expedient and the commission fee is expensed as incurred. Amortization expense related to these costs are included in sales, marketing, general and administrative expenses . o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest as financial expense and penalties as selling, marketing, general and administrative expenses. p. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, unbilled receivables and contract assets, and foreign currency derivative contracts. The Company’s cash and cash equivalents are invested in bank deposits mainly in dollars and NIS. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these banks deposits may be redeemed upon demand and therefore bear minimal risk. The Company’s trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Europe, and the rest of the world. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company’s non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist. q. Accrued severance pay and retirement plans: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company’s consolidated balance sheet. In addition, the Company signed a collective agreement with certain employees, according to which the Company’s contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company’s agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, whereas, the Company’s contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee’s monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter to severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years 2018, 2019 and 2020 amounted to $3,919 and $3,718 and $4,020, respectively. The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 2-3% if an employee contributed 6%. Such 401(k) employer match expense for the year 2018, 2019 and 2020 amounted to $854, $1,144 and $1,233, respectively. r. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”. s. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company uses the Binomial Lattice (“Binomial model”) option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, and the probability that the option will be exercised prior to the end of its contractual life. The company recognizes forfeitures of equity-based awards as they occur. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The fair value of each option granted in 2018 and 2019 and 2020 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2018 2019 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 30 .0%-31.7% 30 .5%-30.9% 31.0%-35.2% Risk-free interest rate 2.6 %- 3.1 1.6%-2.6% 0.4%-1.8% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company’s employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company. t. Fair value of financial instruments: ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company measures its foreign currency derivative instruments at fair value. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, accounts receivable, unbilled receivables and contract assets, other receivables and prepaid expenses and accounts payable approximate fair value due to the short-term maturities of such instruments. The following table presents liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2020: December 31, 2019 2020 Fair value measurement using input Level 2 Accrued expenses and other liabilities: Derivative instruments $ (67 ) $ (707 ) Total liabilities $ (67 ) $ (707 ) u. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company’s option and forward contracts do not qualify as hedging instruments under ASC 815, “Derivatives and hedging”. Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2018, 2019 and 2020, the Company entered into option contracts in the notional amounts of $40,871, $24,296 and $1,650, respectively, and in 2018, 2019 and 2020 the Company entered into forward contracts in the aggregate notional amounts of $17,731, $74,297 and $260,862, respectively, in order to protect against foreign currency fluctuations. As of December 31, 2018, 2019 and 2020, the Company had outstanding options and forward contracts, in the notional amount of $4,950, $15,384 and $3,866, respectively. In 2018, 2019 and 2020, the Company recorded income (expense) of $(869), $535 and $104 respectively, with respect to the above transactions, presented in the statements of income as part of financial expenses, net. v. Treasury shares: Repurchased common shares are held as treasury shares. The Company pres

Other Long-Term Assets

Other Long-Term Assets	12 Months Ended
	Dec. 31, 2020
Other Long Term Assets Disclosure [Abstract]
OTHER LONG-TERM ASSETS	NOTE 3:- OTHER LONG-TERM ASSETS December 31, 2019 2020 Deferred tax assets $ 2,808 $ 1,870 Long-term unbilled receivables 362 772 Other 2,091 2,622 $ 5,261 $ 5,264

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 4:- PROPERTY AND EQUIPMENT, NET December 31, 2019 2020 Cost: Computers and peripheral equipment $ 41,648 $ 43,313 Office furniture and equipment 8,618 9,805 Buildings and leasehold improvements 9,405 10,457 59,671 63,575 Accumulated depreciation: Computers and peripheral equipment 35,841 37,294 Office furniture and equipment 4,440 5,067 Buildings and leasehold improvements 2,789 4,244 43,070 46,605 Depreciated cost $ 16,601 $ 16,970 Depreciation expense totaled $3,766, $3,470 and $4,698 for the years 2018, 2019 and 2020, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2020
Disclosure Text Block [Abstract]
LEASES	NOTE 5:- LEASES The Company leases substantially all of its office space and vehicles under operating leases. The Company’s leases have original lease periods expiring between 2021 and 2030. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancellable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. The Company has several leased offices in the United States, with expiry dates varying between 2021 and 2030, with no renewal options. In June 2012, the Company entered into a lease agreement for new corporate offices in Holon, Israel. The lease expires in January 2024, with an option by the Company to extend for an additional 5-year term. The Company deemed this option as reasonably certain to be renewed. As of December 2020, in connection with the Company’s intention to sublease part of the offices in Holon, the Company recorded an impairment of $351 related to this leased space. In April 2019, the Company entered into a lease agreement for a new office in Bangalore, India. The lease expires in April 2029, with an option by the Company to extend for an additional 5-year term. The company deemed this option as not-reasonably certain to be renewed. On January 30, 2020, the Company (via its wholly-owned subsidiary, Sapiens Technologies (1982) India Private Limited) entered into a second lease agreement to lease additional floors of office space in Bangalore, India. The agreement has a commencement date of January 1, 2021, and is in effect until March 31, 2029, with a termination option exercisable at December 31, 2023. During January 2020, the Company secured a lease deposit of approximately $1 million in order to execute the lease agreement. Following the outbreak of COVID-19 and before the actual commencement date of the lease agreement, the Company decided not to occupy the additional floors of offices in Bangalore, India as a result of an expected slow-down in its expansion plan of its offshore activities in India. As a result, this contract was deemed as a loss contingency and resulted in a one-time charge of $2,155. The loss contingency charge was included in selling, marketing, general and administrative expenses in the Company’s consolidated statement of income. Furthermore, as of December 31, 2020, the Company had an additional operating lease that had not yet commenced of $294. This operating lease is expected to commence in the first quarter of 2021 with a lease term through 2023. Under Topic 842, all leases with durations greater than 12 months, including non-cancellable operating leases, are now recognized on the balance sheet. The aggregated present value of lease agreements is recorded as a long-term asset titled ROU asset. The corresponding lease liabilities are classified between operating lease liabilities which are current and long-term. The components of operating lease costs were as follows: Year ended December 31, 2019 2020 Operating lease cost $ 5,260 $ 8,144 Variable lease cost 3,920 4,150 Short-term lease cost 177 422 Total lease costs $ 9,357 $ 12,716 The following is a summary of weighted average remaining lease terms and discount rates for all of the Company’s operating leases: December 31, 2020 Weighted average remaining lease term (years) 7.26 Weighted average discount rate 4.45 % Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2019 and 2020, respectively, was $8,651 and $9,886 (included in cash flows from operating activities). Maturities of lease liabilities are as follows: 2021 $ 10,113 2022 11,216 2023 9,076 2024 7,863 2025 7,638 2026 and thereafter 24,080 Total undiscounted cash flows 69,986 Less imputed interest 11,289 Present value of lease liabilities $ 58,697

Capitalized Software Developmen

Capitalized Software Development Costs, Net	12 Months Ended
	Dec. 31, 2020
Research and Development [Abstract]
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET	NOTE 6:- CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET The changes in capitalized software development costs for the years ended December 31, 2019 and 2020 were as follows: Year ended 2019 2020 Balance at the beginning of the year $ 22,434 $ 23,953 Capitalization 5,665 5,798 Amortization (5,668 ) (6,558 ) Functional currency translation adjustments 1,522 1,169 Balance at year end $ 23,953 $ 24,362 Amortization of capitalized software development costs for 2018, 2019 and 2020, was $4,859, $5,668 and $6,558, respectively. Amortization expense is included in cost of revenues.

Other Intangible Assets, Net

Other Intangible Assets, Net	12 Months Ended
	Dec. 31, 2020
Other Intangible Assets, Net [Abstract]
OTHER INTANGIBLE ASSETS, NET	NOTE 7:- OTHER INTANGIBLE ASSETS, NET a. Other intangible assets, net, are comprised of the following: Weighted average remaining useful life (years) December 31, 2019 2020 Original amounts: Customer relationships 8.5 $ 23,409 $ 59,482 Technology 4.6 52,555 70,813 Patent 3.5 1,389 1,493 77,353 131,788 Accumulated amortization: Customer relationships 14,673 18,827 Technology 27,891 37,050 Patent 754 958 43,318 56,835 Other intangible assets, net $ 34,035 $ 74,953 In October 2020, the Company purchased a perpetual software license, which includes a permission to use the licensor’s source code and intellectual property rights, for a total consideration of $2,810. This purchase was included in the technology under other intangible assets. b. Amortization of other intangible assets was $11,237, $10,000 and $12,127 for 2018, 2019 and 2020, respectively. c. Estimated amortization expense for future periods: 2021 $ 15,906 2022 12,386 2023 12,025 2024 9,110 2025 and thereafter 25,526 $ 74,953

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	NOTE 8:- GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 are as follows: Year ended 2019 2020 Balance at the beginning of the year $ 166,094 $ 170,703 Acquisitions 622 87,438 Functional currency translation adjustments 3,987 6,141 Balance at year end $ 170,703 $ 264,282

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2020
Accrued Expenses and Other Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	NOTE 9:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2019 2020 Government authorities $ 13,675 $ 10,348 Accrued interest – Series B Debentures 1,167 - Accrued expenses and other liabilities 19,022 24,277 $ 33,864 $ 34,625

Series B Debentures, Net of Cur

Series B Debentures, Net of Current Maturities	12 Months Ended
	Dec. 31, 2020
Series B Debentures, Net of Current Maturities [Abstract]
SERIES B DEBENTURES, NET OF CURRENT MATURITIES	NOTE 10:- SERIES B DEBENTURES, NET OF CURRENT MATURITIES December 31, 2019 2020 Series B Debentures $ 69,287 $ 118,778 Less: Current maturities (9,898 ) (19,796 ) Less: Unamortized debt discounts and issuance costs (539 ) (306 ) $ 58,850 $ 98,676 In September 2017, the Company issued Series B Debentures in the aggregate principal amount of NIS 280 million (approximately $79.2 million), linked to US dollars, payable in eight equal annual payments of $9,898, on January 1 of each of the years 2019 through 2026. The outstanding principal amount of the Series B Debentures will bear a fixed interest rate of 3.37% per annum, payable on January 1 and July 1 of each of the years 2018 through 2025, with one final interest payment on January 1, 2026. Debt discount and issuance costs were approximately $956, allocated to the Series B Debentures discount and are amortized as financial expenses over the term of the Series B Debentures due in 2026. In June 2020, the Company expanded the Series B Debentures issuance and raised an additional NIS 210 million (approximately $60.3 million) linked to US dollars, payable in six equal annual payments of $9,898, on January 1 of each of the years 2021 through 2026. The outstanding principal amount of the Series B Debentures will bear a fixed interest rate of 3.37% per annum, payable on January 1 and July 1 of each of the years 2020 through 2025, with one final interest payment on January 1, 2026. Debt premium and issuance costs, net, were approximately $80, allocated to the Series B Debentures discount and are amortized as financial expenses over the term of the Series B Debentures due in 2026. Following the raise of the additional NIS 210 million in Series B Debentures, a $20,000 short-term bank loan taken on March 18, 2020, from a commercial bank was fully repaid on June 9, 2020. The Series B Debentures are listed for trading on the Tel-Aviv Stock Exchange. The Series B Debentures are unsecured and non-convertible. The Series B Debentures interest may be increased in the event that the debentures’ rating is downgraded below a certain level. The Company has undertaken to maintain a number of conditions and limitations on the manner in which it operates its business, including limitations on its ability to undergo a change of control, distribute dividends, incur a floating charge on the Company’s assets, or undergo an asset sale or other change that results in a fundamental change in the Company’s operations. In accordance with the indenture for the Series B Debentures, the Company is required to meet the following financial covenants: (1) Target shareholders’ equity (excluding minority interest)- above $120 million – as of December 31, 2020, total shareholders’ equity was approximately $382 million; and (2) Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65% - as of December 31, 2020 the ratio of net financial indebtedness to net capitalization was (9.75)%. (3) Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5. As of December 31, 2020, the Target ratio of net financial indebtedness to EBITDA was (0.47). As of December 31, 2020, Sapiens is in compliance with all of its financial covenants. During the years ended December 31, 2019 and 2020, the Company recorded $2,336 and $3,180, respectively of interest expense and $171 and $134, respectively of amortization of debt issuance costs, premium and discount in respect of the Series B Debentures. As of December 31, 2019, and 2020, the estimated fair value of the Company’s Series B Debentures was $70,593 and $122,760, respectively. The fair value was determined based on the closing trading price of the Series B Debentures as of the last day of trading for the period. The fair value of the Series B Debentures is considered a Level 2 measurement as they are not actively traded.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES a. Sapiens Technologies (1982) Ltd. (“Sapiens Technologies”), a subsidiary incorporated in Israel, was partially financed under programs sponsored by the Israel Innovation Authority (“IIA”), formerly the Office of the Chief Scientist, for the support of certain research and development activities conducted in Israel. In exchange for participation in the programs by the IIA, the Company agreed to pay 3.5% of total net consolidated license and The royalties will be paid up to a maximum amount equaling 100%-150% of the grants provided by the IIA, linked to the dollar, and for grants received after January 1, 1999, bear annual interest at a rate based on LIBOR. Royalty expense amounted to $414, $471 and $494 in 2018, 2019 and 2020, respectively, and are included in cost of revenues. As of December 31, 2020, the Company had a contingent liability to pay royalties of up to $6,014. b. The Company provided bank guarantees in the amount of $899 as security for the rent to be paid for its leased offices. The bank guarantees are valid through February 2021 and thereafter will be renewed for the same amount through February 2022. As of December 31, 2020, the Company provided bank guarantees of $291 as security for the performance of various contracts with customers and suppliers. c. In accordance with the indenture for the Series B Debentures, the Company is required to meet certain financial covenants. See Note 10 above. d. Contingent purchase obligations As part of the Company’s acquisitions in recent years, the Company has several contingent earn-out obligations depending on retention and performance criteria. Refer to Note 1 for further information.

Taxes on Income

Taxes on Income	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
TAXES ON INCOME	NOTE 12:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax rates in Israel: Taxable income of Israeli companies was generally subject to corporate tax at the rate of was 23% in 2020 and 2019. However, the effective tax rate payable by a company that derives from profits that are subjected to Preferred Enterprise, Preferred Technological Enterprise regime or / and Special Preferred Technological Enterprise regime (as discussed below) may be materially lower. 2. Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 (“the Law”): The Israeli parliament enacted a reform to the Investment Law, effective January 2011 (which was amended in August 2013). According to the reform, a flat rate tax applies to companies eligible for the “Preferred Enterprise” status. In order to be eligible for Preferred Enterprise status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive factor for the gross domestic product. Benefits granted to a Preferred Enterprise include reduced tax rates. As part of Economic Efficiency Law (Legislative Amendments for Accomplishment of Budgetary Targets for Budget Years 2017-2018), 5777-2016, the tax rate is 16% for all other Areas other than Area A (which was 9% from 2016 onward). As of December 31, 2015, some of the Company Israeli subsidiaries filed a notice to the Israeli tax authorities to apply for the new benefits under the 2011 Amendment and therefore and subject to the amended tax rate of 16%, which was used for 2014-2016 tax years. New Amendment- Preferred Technology Enterprise (“PTE”): In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the 2017 Amendment”) was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the “Nexus Principles” based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues of the group companies is less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. A PTE that acquires Benefited Intangible Assets from a foreign company for more than NIS 200 million after January 1, 2017, will be eligible for 12% reduce tax rate on capital gain upon sale of the Benefited Intangible Assets. The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a Special PTE (an enterprise for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion) and will thereby enjoy a reduced corporate tax rate of 6% on PTI regardless of the company’s geographic location within Israel. In addition, a Special PTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefited Intangible Assets” to a related foreign company if the Benefited Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign company on or after January 1, 2017. Starting 2017 under Amendment 73 to the Investment Law, part of the Company’s taxable income in Israel were entitled to a preferred 12% tax rate. Since 2019, under Special PTE the tax rate for part of the Company’s taxable income in Israel has been reduced to a 6% corporate tax rate. 3. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, some of the Company’s Israeli subsidiaries calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31 of each year for tax purposes only. b. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. Deferred income taxes were provided in relation to undistributed earnings of non-Israeli subsidiaries, which the Company intends to distribute in the near future. The Company intends to permanently reinvest undistributed earnings in the foreign subsidiaries in which earnings arose, in the vast majority of its subsidiaries. If the earnings, for which deferred taxes were not provided, were distributed in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and non-Israeli withholding taxes. The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2020 was $22,155 and the amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that were essentially permanent in duration as of December 31, 2020 was $2,952. c. Tax Reform - United States of America: The U.S. Tax Cuts and Jobs Act of 2017 (“TCJA”) was approved by US Congress on December 20, 2017 and signed into law by then-US President Donald J. Trump on December 22, 2017. This legislation makes complex and significant changes to the U.S. Internal Revenue Code. Such changes include a reduction in the corporate tax rate and limitations on certain corporate deductions and credits, among other changes. The TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. In addition, the TCJA makes certain changes to the depreciation rules and implements new limits on the deductibility of certain expenses and deduction. The TCJA introduced the rules for tax on the global intangible low-taxed income (“GILTI”) on foreign income in excess of a deemed return on tangible assets of foreign corporations. One of our subsidiaries is subject to GILTI. d. Net operating losses carryforwards: As of December 31, 2020, certain subsidiaries had tax loss carryforwards totaling approximately $30,187. Most of these carryforward tax losses have no expiration date. e. Deferred tax assets and liabilities: Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Significant components of the Company deferred tax assets and liabilities are as follows: December 31, 2019 2020 Deferred tax assets: Net operating losses carryforwards $ 7,792 $ 8,701 Research and development 2,312 1,514 Lease liability 10,161 9,441 Reserves and allowances 7,140 5,523 Other 1,011 2,041 Deferred tax assets before valuation allowance 28,416 27,220 Valuation allowance (6,797 ) (8,057 ) Deferred tax assets 21,619 19,163 Deferred tax liabilities: Capitalized software development costs (4,011 ) (3,428 ) Lease right-of-use asset (10,161 ) (9,441 ) Acquired intangibles (8,107 ) (17,498 ) Property and equipment (415 ) (380 ) Undistributed earnings (921 ) (1,302 ) Other (278 ) (1,254 ) Deferred tax liabilities (23,893 ) (33,303 ) Deferred tax liabilities, net $ (2,274 ) $ (14,140 ) December 31, 2019 2020 Deferred tax assets, net $ 2,808 $ 1,870 Deferred tax liabilities, net (5,082 ) (16,010 ) Deferred tax liabilities, net $ (2,274 ) $ (14,140 ) Deferred tax assets, net, are included in other long-term assets. Deferred tax liabilities, net, are included in other long-term liabilities. The Company has provided valuation allowances in respect of certain deferred tax assets resulting from operating losses carry forwards and other reserves and allowances due to uncertainty concerning realization of these deferred tax assets. f. Income before taxes on income is comprised as follows: Year ended 2018 2019 2020 Domestic (Israel) $ 17,149 $ 34,303 $ 34,037 Foreign 1,882 798 7,161 $ 19,031 $ 35,101 $ 41,198 g. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income for an Israeli company, and the actual tax expense as reported in the statements of income is as follows: Year ended 2018 2019 2020 Income before taxes on income, as reported in the statements of income $ 19,031 $ 35,101 $ 41,198 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income $ 4,377 $ 8,073 $ 9,476 Increase (decrease) in taxes resulting from: Effect of foreign tax rates 315 231 (85 ) Effect of benefited tax rates (1,233 ) (2,557 ) (5,426 ) Carryforward tax losses and other temporary differences for which valuation allowance was provided (utilized) (1,067 ) 783 558 Non-deductible expenses 1,276 549 1,722 Increase in uncertain tax positions, net 1,653 1,889 755 Others (290 ) (358 ) 41 Taxes on income, as reported in the statements of income $ 5,031 $ 8,610 $ 7,041 h. Taxes on income are comprised as follows: Year ended 2018 2019 2020 Current $ 6,839 $ 14,733 $ 7,543 Deferred (1,808 ) (6,123 ) (502 ) $ 5,031 $ 8,610 $ 7,041 Year ended 2018 2019 2020 Domestic (Israel) $ 4,081 $ 3,639 3,695 Foreign 950 4,971 3,346 $ 5,031 $ 8,610 $ 7,041 i. Uncertain tax benefits: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2019 2020 Balance at the beginning of the year $ 3,946 $ 5,835 Acquisition of subsidiaries - 1,057 Increase in tax positions 1,999 2,487 Decrease in tax positions (110 ) (1,733 ) Balance at the end of the year $ 5,835 $ 7,646 As of December 31, 2019, and 2020, accrued interest related to unrecognized tax benefits amounted to $1,039 and $1,748, respectively. Although the Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement, there is no assurance that the final tax outcome of its tax audits will not be different from that which is reflected in the Company’s income tax provisions. Such differences could have a material effect on the Company’s income tax provision, cash flow from operating activities and net income in the period in which such determination is made. Tax assessments filed by part of the Company’s Israeli subsidiaries through the year ended December 31, 2015, are considered to be final. The Company is currently under audit in several jurisdictions for the tax years 2015 and onwards. Timing of the resolution of audits is highly uncertain and therefore, as of December 31, 2020, the Company cannot estimate the change in unrecognized tax benefits resulting from these audits within the next 12 months.

Equity

Equity	12 Months Ended
	Dec. 31, 2020
Stockholders' Equity Note [Abstract]
EQUITY	NOTE 13:- EQUITY a. The common shares of the Company are traded on the NASDAQ and on the Tel-Aviv Stock Exchange. Common shares confer upon their holders voting rights, the right to receive cash dividends and the right to share in excess assets upon liquidation of the Company. On October 20, 2020, the Company completed a secondary public offering of its ordinary shares on the NASDAQ. The Company issued 3,898,304 shares at a price of $29.50 per share before issuance expenses and underwriting discounts. The total proceeds from the issuance amounted to $108,737, net of issuance expenses of $509. b. Share Incentive Plan: In 2011, the Company’s board of directors approved its 2011 Share Incentive Plan (the “2011 Plan”) pursuant to which the Company’s employees, directors, officers, consultants, advisors, suppliers, business partners, customers and any other person or entity whose services are considered valuable are eligible to receive awards of share options, restricted shares, restricted share units and other share-based awards. Options granted under the 2011 Plan may be exercised for a period of up to six years from the date of grant and become exercisable in four equal, annual installments, beginning with the first anniversary of the date of the grant, or pursuant to such other schedule as may provide in the option agreement. The total number of Common Shares available under the 2011 Plan was set at 8,000,000. Upon the approval of the 2011 Plan, the board of directors determined that no further awards would be issued under the Company’s previously existing share incentive plans. As of December 31, 2020, 2,610,136 common shares of the Company were available for future grant under the 2011 Plan. Any options granted under the 2011 Plan which are forfeited, cancelled, terminated or expired, will become available for future grant under the 2011 Plan. In March 2018, the Company’s Board of Directors approved a re-pricing of some of the Company’s stock options held by some of the Company’s senior employees. As a result of the re-pricing, 170,000 stock options at an exercise price range of $ 11.5 $ 12.2 $ 10.0 A summary of the stock option activities in 2020 is as follows: Year ended December 31, 2020 Amount of options Weighted Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding at January 1, 2020 1,869,412 10.25 3.21 $ 23,838 Granted 315,000 26.28 Exercised (603,519 ) 8.63 Expired and forfeited (118,411 ) 11.15 Outstanding at December 31, 2020 1,462,482 14.26 3.17 24,019 Vested and expected to vest 1,462,482 14.26 3.17 24,019 Exercisable at December 31, 2020 732,209 10.59 2.29 $ 14,092 The weighted average grant date fair values of the options granted during the years ended December 31, 2018, 2019 and 2020 were $3.43, $4.24 and $7.99, respectively. The total intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 was $1,641, $2,301 and $11,658, respectively. The options outstanding under the Company’s stock option plans as of December 31, 2020 have been separated into ranges of exercise prices as follows: Weighted Options Weighted Options Average outstanding Average Weighted Exercisable Exercise as of remaining average as of price of Ranges of December 31, contractual exercise December 31, Options exercise price 2020 Term price 2020 Exercisable (Years) $ $ 1.12 8,408 0.41 1.12 8,408 1.12 8.31-10.07 280,324 1.73 9.17 207,133 9.15 11.07-11.09 682,500 2.81 11.09 426,250 11.09 11.85-15.46 176,250 3.27 12.75 90,418 12.41 24.29-25.4 235,000 5.13 25.12 - - 31.96 80,000 5.60 31.96 - - 1,462,482 3.17 14.26 732,209 10.59 The total equity-based compensation expenses related to all of the Company’s equity-based awards, recognized for the years ended December 31, 2018 , 2019 and 2020, was $1,942, $1,405 and $3,987 respectively. Such expenses are recorded as part selling, marketing, general and administrative expenses in the Company’s consolidated statements of income. A summary of the RSU activities in the six months ended December 31, 2020 is as follows: Amount of options Weighted Average Grant-Date Fair Value Unvested at January 1, 2020 - - Granted 238,005 24.45 Unvested at December 31, 2020 238,005 24.45 In connection with the Company’s acquisition of sum.cumo, on February 6, 2020 (see Note 1b), the Company issued an aggregate of 173,005 RSUs to certain employees of sum.cumo in connection with the acquisition. The value of these grants was not included in the purchase price of sum.cumo, since their vesting is subject to both continued employment and other performance criteria. The Company recorded compensation costs related to RSUs of $2,143 for the year ended December 31, 2020, which were included in Selling, marketing, general and administrative expenses in the Company’s consolidated statements of income. c. As of December 31, 2020, there was $6,454 of total unrecognized compensation cost related to non-vested options and RSUs, which is expected to be recognized over a weighted-average period of 1.76 years. d. Dividend: On May 14, 2020, the Company’s extraordinary general meeting of shareholders approved the distribution of a cash dividend of $0.14 per common share for a total amount of $7,044 that was paid during June and July 2020.

Related Parties Transactions

Related Parties Transactions	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	NOTE 14:- RELATED PARTIES TRANSACTIONS Agreements with controlling shareholder and its affiliates: The Company has in effect services agreements with certain companies that are affiliated with Formula, Sapiens’ parent company (most recently since December 23, 2014 and thereafter), and Asseco, Sapiens’ ultimate parent company, pursuant to which the Company has received services amounting to approximately $4,455, $6,005 and $8,523, in aggregate for the years ended December 31, 2018, 2019 and 2020. In addition, during the years ended December 31, 2018, 2019 and 2020, the Company purchased from those affiliated companies an aggregate of approximately $320, $194 and $267 of hardware and software. On August 18, 2015, Sapiens completed the acquisition from Asseco Poland S.A. (“Asseco”) of all issued and outstanding shares of Sapiens Software Solutions (Poland) Sp. z o.o. (formerly “Insseco Sp. z o.o.”) (“Sapiens Poland”). Asseco is the ultimate parent company of Sapiens, through its holdings in Formula. Under the share purchase agreement for that acquisition, Asseco committed to assign all customer contracts to Sapiens Poland that relate to the intellectual property that the Company acquired as part of the acquisition. In the event that Asseco cannot obtain the consent of any customer to the assignment of its contract to Sapiens Poland, Asseco will hold that customer’s contract in trust for the benefit of Sapiens Poland. During the years ended December 31, 2018, 2019 and 2020, Asseco provided back office and professional services and fixed assets to Sapiens Poland in an amount totaling approximately $980, $676 and $521, respectively. As of December 31, 2019, and 2020, the Company had trade payables balances due to its related parties in amount of approximately $1,640 and $1,908, respectively. In addition, as of December 31, 2019 and 2020, the Company had trade receivables balances due from its related parties in amount of approximately $770 and $1,241, respectively.

Basic and Diluted Net Earnings

Basic and Diluted Net Earnings Per Share	12 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
BASIC AND DILUTED NET EARNINGS PER SHARE	NOTE 15:- BASIC AND DILUTED NET EARNINGS PER SHARE Year ended 2018 2019 2020 Numerator (thousands): Net income attributed to Sapiens’ shareholders $ 13,785 $ 26,247 $ 33,775 Denominator (thousands): Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 49,827 50,031 51,208 Stock options and RSU 279 622 951 Denominator for diluted net earnings per share - adjusted weighted average number of shares 50,106 50,653 52,159 The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 1,369,514, 0 and 200,000 for the years 2018, 2019 and 2020, respectively.

Geographic Information

Geographic Information	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
GEOGRAPHIC INFORMATION	NOTE 16:- GEOGRAPHIC INFORMATION a. The Company operates in a single reportable segment as a provider of software solutions. See Note 1 for a brief description of the Company’s business. The data below is presented in accordance with ASC 280, “Segment Reporting”. b. Geographic information: The following table sets forth revenues by country based on the billing address of the customer. Other than as shown below, no other country accounted for more than 10% of the Company’s revenues during the years ended December 31, 2018, 2019 and 2020. Year ended 2018 2019 2020 1. Revenues: North America*) $ 136,477 $ 163,565 $ 187,258 Europe**) 128,513 133,851 172,660 Rest of the world 24,717 28,258 22,985 $ 289,707 $ 325,674 $ 382,903 *) Revenues from North America consist primarily of revenues from the United States, except for $649, $476 and $571 of revenues derived from Canada during the years ended December 31, 2018, 2019 and 2020, respectively. **) Revenues from Europe include UK, Israel and other European countries. Revenues from the United Kingdom (UK) amounted to $38,815, $41,051 and $40,828 during the years ended December 31, 2018, 2019 and 2020, respectively. December 31, 2019 2020 2. Long-lived assets, including property and equipment, net and operating lease right-of-use assets: Israel $ 28,396 $ 27,944 North America 7,741 8,245 APAC 23,437 20,871 Europe 6,566 14,300 $ 66,140 $ 71,360 c. Major customer data: For the years ended December 31, 2018, 2019 and 2020, no single customer contributed more than 10% to the Company’s total revenues.

Revenue

Revenue	12 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 17:- REVENUE Remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The aggregate amount of consideration allocated to performance obligations either not satisfied or partially unsatisfied was approximately $192 million as of December 31, 2020. The Company expects to recognize approximately 73% in 2021 from remaining performance obligations as of December 31, 2020, and the remainder thereafter . Disaggregation of revenue The following table provides information about disaggregated revenue by type of contract, and timing of revenue recognition (in thousands): Years ended 2019 2020 Project implementation phase: Revenues from pre-production implementation projects $ 121,986 $ 142,247 Revenues from post-production implementation projects 203,688 240,656 Total $ 325,674 $ 382,903 Contract balances: The following table provides information about trade receivables, unbilled receivables, contract assets and contract liabilities (deferred revenues) from contracts with customers (in thousands): December 31, 2019 2020 Trade receivables (net of allowance for credit losses of $543 and $1,558 at December 31, 2019 and 2020, respectively) 34,615 48,623 Short-term unbilled receivables *) 9,511 9,301 Long-term unbilled receivables *) 362 772 Contract assets **) 6,095 7,485 Deferred revenues (short-term contract liabilities) 21,021 34,548 Long-term deferred revenues (long-term contract liabilities) ***) 216 524 Both trade receivables and deferred revenues (short-term contract liabilities) increased during 2020 as a result of business combinations of $6,784 and $15,875, respectively. (*) Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations. (**) Contract assets relate to unbilled receivables, which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time. (***) Included in other long-term liabilities in the consolidated balance sheets No impairment loss was recognized in respect of the Company’s outstanding contract assets during the years ended December 31, 2019 and 2020. During the year ended December 31, 2020, the Company recognized $20,029 that was included in deferred revenues (short-term contract liability) balance at December 31, 2019.

Selected Statements of Operatio

Selected Statements of Operations Data	12 Months Ended
	Dec. 31, 2020
Selected Statements of Operations Data [Abstract]
SELECTED STATEMENTS OF OPERATIONS DATA	NOTE 18:- SELECTED STATEMENTS OF OPERATIONS DATA a. Research and development expenses, net: Year ended 2018 2019 2020 Total costs $ 39,574 $ 43,043 $ 47,156 Less - capitalized software development costs (5,160 ) (5,665 ) (5,798 ) Research and development expenses, net $ 34,414 $ 37,378 $ 41,358 b. Financial expense, net Year ended 2018 2019 2020 Financial income: Interest $ 181 $ 382 $ 380 Foreign currency translation 867 991 1,312 Derivatives gains - 565 721 1,048 1,938 2,413 Financial expenses: Foreign currency translation, bank charges and other 1,059 1,646 1,299 Interest 3,225 3,030 4,302 Derivatives losses 755 30 617 (5,039 ) (4,706 ) (6,218 ) Financial expense, net $ (3,991 ) $ (2,768 ) $ (3,805 )

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Use of estimates:	a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, value of intangible assets and goodwill, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Financial statements in United States dollars:	b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar (“dollar”); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries’ transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders’ share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company.
Principles of consolidation:	c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders’ share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. According to the share purchase agreement of Tiful Gemel, the Company will purchase the remainder of Tiful Gemel’s outstanding shares on June 1, 2023 for $450. This resulted in classification of the mandatory redeemable noncontrolling interests associated with the acquisition of Tiful Gemel as a liability in the Company’s consolidated balance sheet. See Note 1.b.4 for further information related to the acquisition of Tiful Gemel.
Cash equivalents:	d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at acquisition.
Short-term bank deposits:	e. Short-term bank deposits: Bank deposits with maturities of more than three months at acquisition but less than one year are included in short-term bank deposits. Such deposits are stated at cost which approximates fair values.
Investment in restricted deposit:	f. Investment in restricted deposit: As of December 31, 2019, the Company maintained a certain cash amount deposited in a trust in order to secure the acquisition of sum.cumo GmbH. Such deposit has been withdrawn and paid to Sum.Cumo GmbH shareholders as of the closing date on February 2020.
Property and equipment, net:	g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter.
Leases:	h. Leases: Effective of January 1, 2019, the Company adopted Topic 842, which requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating leases. The Company adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing on the date of initial application. The Company elected to keep leases with an initial term of 12 months or less, which do not include an option to renew the lease agreement, off the balance sheet, and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct the use of the asset. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. Since all of the Company’s lease contracts do not meet any one of the criteria above, the Company concluded that all of its lease contracts should be classified as operation leases. ROU assets and liabilities are recognized on the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available on the commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Moreover, the ROU asset may also include initial direct costs, which are incremental costs of a lease that would not have been incurred if the lease had not been obtained. The Company uses the long-lived assets impairment guidance in Accounting Standards Codification (“ASC”) Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Offices The Company leases space for offices in various locations worldwide under operating leases. These contracts are considered as operating leases. Motor vehicles The Company leases motor vehicles. Each leasing contract is generally valid for a term of three years. These contracts are considered as operating leases presented in ROU assets. The Company elected the practical expedient to not separate lease and non-lease components from its leases.
Research and development costs:	i. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Certain internal and external costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold Leased, or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized by the straight-line method over the estimated useful life of the software products (primarily seven years).
Business combinations:	j. Business combinations: The Company accounts for its business acquisitions in accordance with Accounting Standards Codification ASC No. 805, “Business Combinations”. The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible assets acquired is assigned based on the fair values as of the date of the acquisition. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies’ respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition Under ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business (“2017-01”), while first determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is not a business.
Other intangible assets, net:	k. Other intangible assets, net: Technology and patents acquired are amortized over their estimated useful life on a straight-line basis. The acquired customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized method. The average annual rates for other intangible assets are as follows: % Technology 13 - 50 Customer relationships 7 - 15 Patent 10
Impairment of long-lived assets:	l. Impairment of long-lived assets: The Company’s long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 “Property, Plant, and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 provides examples of events or changes in circumstances that might indicate that impairment exists for a particular long-lived asset or asset group. Among those events and circumstances that the Company believes to be impairment indicators are: - A significant decrease in the market price of a long-lived asset (asset group) - A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During 2018 and 2019, no impairment losses have been identified. During 2020, the Company identified an impairment loss of $351 as outlined in Note 5.
Goodwill:	m. Goodwill: Goodwill is carried at cost and is not amortized but rather is tested for impairment at least annually or between annual tests in certain circumstances. Goodwill represents the excess of the purchase price in a business combination over the fair value of the identifiable tangible and intangible assets acquired. Under ASC 350, “Intangibles- Goodwill and Other” (“ASC 350”), goodwill is subject to an annual impairment test at December 31 of each year or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: L&P (Life & Pension), P&C (Property & Casualty), Decision and IPELS (Israel, Poland, Emerge, Latvia, Spain). ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If the Company elects not to use this option, or if the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company prepares a quantitative analysis to determine whether the carrying value of a reporting unit exceeds its estimated fair value. If the carrying value of a reporting unit would exceed its estimated fair value, the Company would have recognizes an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which was adopted as of January 1, 2020. For the years ended December 31, 2018, 2019 and 2020, no impairment of goodwill has been recorded.
Revenue recognition:	n. Revenue recognition: The Company implements the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 17 for further disclosures. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company determines revenue recognition through the following steps: - identification of the contract with a customer; - identification of the performance obligations in the contract; - determination of the transaction price; - allocation of the transaction price to the performance obligations in the contract; and - recognition of revenue when, or as, the Company satisfies a performance obligation. Most of the Company’s contracts contain multiple performance obligations. which are accounted for separately if they are distinct. On most occasions, the Company generates revenues from sales of software licenses which include significant implementation and customization services. Such software licenses and implementation and customization services are not considered distinct performance obligations and are accounted for as one performance obligation. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues from contracts (either fixed price or Time and Materials In addition, the Company has enforceable right to payment for performance completed to date. Accordingly, the Company recognizes revenue on such contracts over time, using the percentage of completion accounting method. The Company recognizes revenue and gross profit as the work is performed, based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses become probable, in the amount of the estimated loss on the entire contract. Determining the projected labor costs requires understanding the project-specific circumstances, including the specific terms and conditions of each complex contract, changes to the project schedule, and complexity of the project. When post implementation and consulting services do not involve significant customization, the Company accounts for such services as performance obligations satisfied over time and revenues are recognized as the services are provided. When the Company enters into a contract for the sale of software license which does not require significant implementation services, and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation, as the customer can benefit from the software on its own. The Company allocates the transaction price for each contract to each performance obligation identified in the contract based on the relative standalone selling price (SSP). The Company determines SSP for the purposes of allocating the transaction price to each performance obligation by considering several external and internal factors including, but not limited to, transactions where the specific performance obligation is sold separately, historical actual pricing practices and geographies in which the Company offers its services. If a specific performance obligation, such as the software license, is sold for a broad range of amounts (that is, the selling price is highly variable) or if the Company has not yet established a price for that good or service, and the good or service has not previously been sold on a standalone basis (that is, the selling price is uncertain), the Company applies the residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs with any residual amount of transaction price allocated to the remaining specific performance obligation. In addition to software license fees, contracts with customers may contain an agreement to provide for maintenance services. The Company considers the maintenance performance obligation as a distinct performance obligation that is satisfied over time, and recognized on a straight-line basis over the contractual period. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Sales commissions on initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and then amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and then amortized on a straight-line basis over the related contractual renewal period. If the expected amortization period is one-year or less, the company uses the practical expedient and the commission fee is expensed as incurred. Amortization expense related to these costs are included in sales, marketing, general and administrative expenses .
Income taxes:	o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest as financial expense and penalties as selling, marketing, general and administrative expenses.
Concentrations of credit risks:	p. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, unbilled receivables and contract assets, and foreign currency derivative contracts. The Company’s cash and cash equivalents are invested in bank deposits mainly in dollars and NIS. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these banks deposits may be redeemed upon demand and therefore bear minimal risk. The Company’s trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Europe, and the rest of the world. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company’s non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist.
Accrued severance pay and retirement plans:	q. Accrued severance pay and retirement plans: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company’s consolidated balance sheet. In addition, the Company signed a collective agreement with certain employees, according to which the Company’s contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company’s agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, whereas, the Company’s contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee’s monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter to severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years 2018, 2019 and 2020 amounted to $3,919 and $3,718 and $4,020, respectively. The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 2-3% if an employee contributed 6%. Such 401(k) employer match expense for the year 2018, 2019 and 2020 amounted to $854, $1,144 and $1,233, respectively.
Basic and diluted net earnings per share:	r. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”.
Stock-based compensation:	s. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company uses the Binomial Lattice (“Binomial model”) option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, and the probability that the option will be exercised prior to the end of its contractual life. The company recognizes forfeitures of equity-based awards as they occur. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The fair value of each option granted in 2018 and 2019 and 2020 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2018 2019 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 30 .0%-31.7% 30 .5%-30.9% 31.0%-35.2% Risk-free interest rate 2.6 %- 3.1 1.6%-2.6% 0.4%-1.8% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company’s employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company.
Fair value of financial instruments:	t. Fair value of financial instruments: ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company measures its foreign currency derivative instruments at fair value. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, accounts receivable, unbilled receivables and contract assets, other receivables and prepaid expenses and accounts payable approximate fair value due to the short-term maturities of such instruments. The following table presents liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2020: December 31, 2019 2020 Fair value measurement using input Level 2 Accrued expenses and other liabilities: Derivative instruments $ (67 ) $ (707 ) Total liabilities $ (67 ) $ (707 )
Derivatives and hedging:	u. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company’s option and forward contracts do not qualify as hedging instruments under ASC 815, “Derivatives and hedging”. Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2018, 2019 and 2020, the Company entered into option contracts in the notional amounts of $40,871, $24,296 and $1,650, respectively, and in 2018, 2019 and 2020 the Company entered into forward contracts in the aggregate notional amounts of $17,731, $74,297 and $260,862, respectively, in order to protect against foreign currency fluctuations. As of December 31, 2018, 2019 and 2020, the Company had outstanding options and forward contracts, in the notional amount of $4,950, $15,384 and $3,866, respectively. In 2018, 2019 and 2020, the Company recorded income (expense) of $(869), $535 and $104 respectively, with respect to the above transactions, presented in the statements of income as part of financial expenses, net.
Treasury shares:	v. Treasury shares: Repurchased common shares are held as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity.
Comprehensive income (loss):	w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”. Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The components of accumulated other comprehensive income (loss), of $(2,381) and $11,026 at December 31, 2019 and 2020, respectively, are mainly comprised from foreign currency translation differences.
Trade Receivables and Allowances:	x. Trade Receivables and Allowances: Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses for the allowance for doubtful accounts in respect of trade receivables and unbilled receivables based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. Estimated credit loss allowance is recorded as general and administrative expenses on the Company’s consolidated statements of income. As of December 31, 2020, $ 48,623
Recently adopted accounting pronouncements:	y. Recently adopted accounting pronouncements: On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, the Company changed its impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including trade receivables. The adoption by the Company of the new guidance did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 of the goodwill impairment test, which requires the calculation of the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with it carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted ASU 2017-04 as of January 1, 2020 with no material impact on its consolidated financial statements.
Recently issued accounting pronouncements:	z. Recently issued accounting pronouncements: In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. ASU 2019-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2020. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

General (Tables)

General (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of estimated fair values of the assets acquired and liabilities	Current assets (including cash of $2,292) $ 7,448 Goodwill 57,527 Intangible assets 29,946 Other long-term assets 4,255 Total assets acquired $ 99,176 Current liabilities $ 1,889 Deferred revenues 5,742 Deferred tax liabilities 7,181 Other long-term liabilities 8,257 Total liabilities acquired $ 23,069 Net assets acquired $ 76,107
Schedule of components of intangible assets associated with acquisition	Fair value Developed technology $ 10,517 Customer relationships 19,266 Backlog 163 Total intangible assets $ 29,946
Schedule of assets and liabilities based upon fair values as determined	Net assets (including cash of $ 981) $ 1,447 Intangible assets 9,730 Deferred tax liabilities (3,211 ) Goodwill 14,521 Net assets acquired $ 22,487 Net liabilities (including cash of $ 6,265) $ (524 ) Intangible assets 7,562 Deferred tax liabilities, net (2,313 ) Goodwill 14,875 Net assets acquired $ 19,600 Net assets (including cash of $ 4,054) $ 4,101 Intangible assets 1,037 Goodwill 622 Net assets acquired $ 5,760 Net liabilities $ (2,697 ) Intangible assets 12,936 Deferred taxes (3,528 ) Goodwill 11,468 Net assets acquired $ 18,179

Significant Accounting Polici_2

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of property plant and equipment useful life	% Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5
Schedule of weighted average annual rates for other intangible assets	% Technology 13 - 50 Customer relationships 7 - 15 Patent 10
Schedule of fair value of each option granted	Year ended December 31, 2018 2019 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 30 .0%-31.7% 30 .5%-30.9% 31.0%-35.2% Risk-free interest rate 2.6 %- 3.1 1.6%-2.6% 0.4%-1.8%
Schedule of liabilities measured at fair value	December 31, 2019 2020 Fair value measurement using input Level 2 Accrued expenses and other liabilities: Derivative instruments $ (67 ) $ (707 ) Total liabilities $ (67 ) $ (707 )

Other Long-Term Assets (Tables)

Other Long-Term Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Other Long Term Assets Disclosure [Abstract]
Schedule of other long-term assets	December 31, 2019 2020 Deferred tax assets $ 2,808 $ 1,870 Long-term unbilled receivables 362 772 Other 2,091 2,622 $ 5,261 $ 5,264

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	December 31, 2019 2020 Cost: Computers and peripheral equipment $ 41,648 $ 43,313 Office furniture and equipment 8,618 9,805 Buildings and leasehold improvements 9,405 10,457 59,671 63,575 Accumulated depreciation: Computers and peripheral equipment 35,841 37,294 Office furniture and equipment 4,440 5,067 Buildings and leasehold improvements 2,789 4,244 43,070 46,605 Depreciated cost $ 16,601 $ 16,970

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2020
Disclosure Text Block [Abstract]
Schedule of operating lease costs	Year ended December 31, 2019 2020 Operating lease cost $ 5,260 $ 8,144 Variable lease cost 3,920 4,150 Short-term lease cost 177 422 Total lease costs $ 9,357 $ 12,716
Schedule of weighted average remaining lease terms and discount rates	December 31, 2020 Weighted average remaining lease term (years) 7.26 Weighted average discount rate 4.45 %
Schedule of maturities of lease liabilities	2021 $ 10,113 2022 11,216 2023 9,076 2024 7,863 2025 7,638 2026 and thereafter 24,080 Total undiscounted cash flows 69,986 Less imputed interest 11,289 Present value of lease liabilities $ 58,697

Capitalized Software Developm_2

Capitalized Software Development Costs, Net (Tables)	12 Months Ended
	Dec. 31, 2020
Research and Development [Abstract]
Schedule of changes in capitalized software development costs	Year ended 2019 2020 Balance at the beginning of the year $ 22,434 $ 23,953 Capitalization 5,665 5,798 Amortization (5,668 ) (6,558 ) Functional currency translation adjustments 1,522 1,169 Balance at year end $ 23,953 $ 24,362

Other Intangible Assets, Net (T

Other Intangible Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2020
Other Intangible Assets, Net [Abstract]
Schedule of other intangible assets, net	Weighted average remaining useful life (years) December 31, 2019 2020 Original amounts: Customer relationships 8.5 $ 23,409 $ 59,482 Technology 4.6 52,555 70,813 Patent 3.5 1,389 1,493 77,353 131,788 Accumulated amortization: Customer relationships 14,673 18,827 Technology 27,891 37,050 Patent 754 958 43,318 56,835 Other intangible assets, net $ 34,035 $ 74,953
Schedule of other Intangible assets future amortization expense	2021 $ 15,906 2022 12,386 2023 12,025 2024 9,110 2025 and thereafter 25,526 $ 74,953

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of carrying amount of goodwill	Year ended 2019 2020 Balance at the beginning of the year $ 166,094 $ 170,703 Acquisitions 622 87,438 Functional currency translation adjustments 3,987 6,141 Balance at year end $ 170,703 $ 264,282

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Accrued Expenses and Other Liabilities [Abstract]
Schedule of accrued expenses and other liabilities	December 31, 2019 2020 Government authorities $ 13,675 $ 10,348 Accrued interest – Series B Debentures 1,167 - Accrued expenses and other liabilities 19,022 24,277 $ 33,864 $ 34,625

Series B Debentures, Net of C_2

Series B Debentures, Net of Current Maturities (Tables)	12 Months Ended
	Dec. 31, 2020
Disclosure of Series B Debentures, Net of Current Maturities [Abstract]
Schedule of series B debentures, net of current maturities	December 31, 2019 2020 Series B Debentures $ 69,287 $ 118,778 Less: Current maturities (9,898 ) (19,796 ) Less: Unamortized debt discounts and issuance costs (539 ) (306 ) $ 58,850 $ 98,676

Taxes on Income (Tables)

Taxes on Income (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets and liabilities	December 31, 2019 2020 Deferred tax assets: Net operating losses carryforwards $ 7,792 $ 8,701 Research and development 2,312 1,514 Lease liability 10,161 9,441 Reserves and allowances 7,140 5,523 Other 1,011 2,041 Deferred tax assets before valuation allowance 28,416 27,220 Valuation allowance (6,797 ) (8,057 ) Deferred tax assets 21,619 19,163 Deferred tax liabilities: Capitalized software development costs (4,011 ) (3,428 ) Lease right-of-use asset (10,161 ) (9,441 ) Acquired intangibles (8,107 ) (17,498 ) Property and equipment (415 ) (380 ) Undistributed earnings (921 ) (1,302 ) Other (278 ) (1,254 ) Deferred tax liabilities (23,893 ) (33,303 ) Deferred tax liabilities, net $ (2,274 ) $ (14,140 ) December 31, 2019 2020 Deferred tax assets, net $ 2,808 $ 1,870 Deferred tax liabilities, net (5,082 ) (16,010 ) Deferred tax liabilities, net $ (2,274 ) $ (14,140 )
Schedule of income before income taxes	Year ended 2018 2019 2020 Domestic (Israel) $ 17,149 $ 34,303 $ 34,037 Foreign 1,882 798 7,161 $ 19,031 $ 35,101 $ 41,198
Schedule of effective income tax rate reconciliation	Year ended 2018 2019 2020 Income before taxes on income, as reported in the statements of income $ 19,031 $ 35,101 $ 41,198 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income $ 4,377 $ 8,073 $ 9,476 Increase (decrease) in taxes resulting from: Effect of foreign tax rates 315 231 (85 ) Effect of benefited tax rates (1,233 ) (2,557 ) (5,426 ) Carryforward tax losses and other temporary differences for which valuation allowance was provided (utilized) (1,067 ) 783 558 Non-deductible expenses 1,276 549 1,722 Increase in uncertain tax positions, net 1,653 1,889 755 Others (290 ) (358 ) 41 Taxes on income, as reported in the statements of income $ 5,031 $ 8,610 $ 7,041
Schedule of taxes on income	Year ended 2018 2019 2020 Current $ 6,839 $ 14,733 $ 7,543 Deferred (1,808 ) (6,123 ) (502 ) $ 5,031 $ 8,610 $ 7,041 Year ended 2018 2019 2020 Domestic (Israel) $ 4,081 $ 3,639 3,695 Foreign 950 4,971 3,346 $ 5,031 $ 8,610 $ 7,041
Schedule of unrecognized tax benefits	December 31, 2019 2020 Balance at the beginning of the year $ 3,946 $ 5,835 Acquisition of subsidiaries - 1,057 Increase in tax positions 1,999 2,487 Decrease in tax positions (110 ) (1,733 ) Balance at the end of the year $ 5,835 $ 7,646

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2020
Stockholders' Equity Note [Abstract]
Schedule of stock option activities	Year ended December 31, 2020 Amount of options Weighted Weighted average remaining contractual life (in years) Aggregate intrinsic value Outstanding at January 1, 2020 1,869,412 10.25 3.21 $ 23,838 Granted 315,000 26.28 Exercised (603,519 ) 8.63 Expired and forfeited (118,411 ) 11.15 Outstanding at December 31, 2020 1,462,482 14.26 3.17 24,019 Vested and expected to vest 1,462,482 14.26 3.17 24,019 Exercisable at December 31, 2020 732,209 10.59 2.29 $ 14,092
Schedule of options outstanding under stock option plans	Weighted Options Weighted Options Average outstanding Average Weighted Exercisable Exercise as of remaining average as of price of Ranges of December 31, contractual exercise December 31, Options exercise price 2020 Term price 2020 Exercisable (Years) $ $ 1.12 8,408 0.41 1.12 8,408 1.12 8.31-10.07 280,324 1.73 9.17 207,133 9.15 11.07-11.09 682,500 2.81 11.09 426,250 11.09 11.85-15.46 176,250 3.27 12.75 90,418 12.41 24.29-25.4 235,000 5.13 25.12 - - 31.96 80,000 5.60 31.96 - - 1,462,482 3.17 14.26 732,209 10.59
Schedule of restricted stock unit activities	Amount of options Weighted Average Grant-Date Fair Value Unvested at January 1, 2020 - - Granted 238,005 24.45 Unvested at December 31, 2020 238,005 24.45

Basic and Diluted Net Earning_2

Basic and Diluted Net Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	Year ended 2018 2019 2020 Numerator (thousands): Net income attributed to Sapiens’ shareholders $ 13,785 $ 26,247 $ 33,775 Denominator (thousands): Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 49,827 50,031 51,208 Stock options and RSU 279 622 951 Denominator for diluted net earnings per share - adjusted weighted average number of shares 50,106 50,653 52,159

Geographic Information (Tables)

Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Schedule of revenues by country based	Year ended 2018 2019 2020 1. Revenues: North America*) $ 136,477 $ 163,565 $ 187,258 Europe**) 128,513 133,851 172,660 Rest of the world 24,717 28,258 22,985 $ 289,707 $ 325,674 $ 382,903
Schedule of property and equipment	December 31, 2019 2020 2. Long-lived assets, including property and equipment, net and operating lease right-of-use assets: Israel $ 28,396 $ 27,944 North America 7,741 8,245 APAC 23,437 20,871 Europe 6,566 14,300 $ 66,140 $ 71,360

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenue	Years ended 2019 2020 Project implementation phase: Revenues from pre-production implementation projects $ 121,986 $ 142,247 Revenues from post-production implementation projects 203,688 240,656 Total $ 325,674 $ 382,903
Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities	December 31, 2019 2020 Trade receivables (net of allowance for credit losses of $543 and $1,558 at December 31, 2019 and 2020, respectively) 34,615 48,623 Short-term unbilled receivables *) 9,511 9,301 Long-term unbilled receivables *) 362 772 Contract assets **) 6,095 7,485 Deferred revenues (short-term contract liabilities) 21,021 34,548 Long-term deferred revenues (long-term contract liabilities) ***) 216 524

Selected Statements of Operat_2

Selected Statements of Operations Data (Tables)	12 Months Ended
	Dec. 31, 2020
Disclosure of Selected Statements of Operations Data [Abstract]
Schedule of research and development expenses, net	Year ended 2018 2019 2020 Total costs $ 39,574 $ 43,043 $ 47,156 Less - capitalized software development costs (5,160 ) (5,665 ) (5,798 ) Research and development expenses, net $ 34,414 $ 37,378 $ 41,358
Schedule of financial income, net	Year ended 2018 2019 2020 Financial income: Interest $ 181 $ 382 $ 380 Foreign currency translation 867 991 1,312 Derivatives gains - 565 721 1,048 1,938 2,413 Financial expenses: Foreign currency translation, bank charges and other 1,059 1,646 1,299 Interest 3,225 3,030 4,302 Derivatives losses 755 30 617 (5,039 ) (4,706 ) (6,218 ) Financial expense, net $ (3,991 ) $ (2,768 ) $ (3,805 )

General (Details)

General (Details) - USD ($) $ in Thousands	Jul. 02, 2020	Mar. 07, 2018	Mar. 31, 2022	Nov. 20, 2020	Jul. 27, 2020	Apr. 22, 2020	Sep. 27, 2019	Mar. 31, 2018	Dec. 31, 2020	Jun. 30, 2020
General (Details) [Line Items]
Purchase price in cash				$ 76,107	$ 19,600				$ 22,487
Business combination, acquisition related costs				$ 719	$ 299
Aggregate of shares issued (in Shares)									173,005
Valued total amount									$ 4,400
Performance-based payments, description	On June 1, 2020 (the “Tiful Gemel Acquisition Date”), Sapiens completed the acquisition of 75% of the outstanding shares of Tiful Gemel Ltd. (“Tiful Gemel”), an Israeli company which provides software solutions and managed services related to pension and provident funds in the Israeli market, for a total cash consideration of $1,281. In addition, under the share purchase agreement, the Company is committed to acquire the remainder of Tiful Gemel’s outstanding shares on June 1, 2023. Unaudited pro forma condensed results of operations were not presented, since the acquisition did not meet the criteria set forth in SEC Regulation S-X Rule 11-01.						In addition, the sellers and senior executives have performance-based payments relating to achievements of various targets over three years (2019-2021) of up to $1,700.
Proceeds from loan receive						$ 1,546
Maturity date						Apr. 22, 2022
Interest rate						1.00%
Acquisition of outstanding percentage	75.00%
Business combination, consideration cash, total	$ 1,281						$ 5,760
Cash paid							$ 5,608			$ 152
Sum.cumo [Member]
General (Details) [Line Items]
Performance-based payments, description									In addition, sum.cumo’s senior executives have retention-based payments over three years (2020-2023) of up to approximately $2,800. These payments are subject to continued employment, and therefore were not included in the purchase price. Acquisition related costs amounted to $561, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income
Adaptik Corporation [Member]
General (Details) [Line Items]
Business combination, acquisition related costs		$ 300
Performance-based payments, description		In addition, the seller has performance-based payments relating to achievements of revenue targets over three years (2018-2020) of up to $3,700, of which $1,300 was paid during 2019 and an additional $1,355 was paid during 2020.
Business combination, consideration cash, total		$ 18,179						$ 17,979
Forecast [Member] | Adaptik Corporation [Member]
General (Details) [Line Items]
Business combination, consideration cash, total			$ 200

General (Details) - Schedule of

General (Details) - Schedule of estimated fair values of the assets acquired and liabilities - StoneRiver [Member] $ in Thousands	Dec. 31, 2020USD ($)
Business Acquisition [Line Items]
Current assets (including cash of $2,292)	$ 7,448
Goodwill	57,527
Intangible assets	29,946
Other long-term assets	4,255
Total assets acquired	99,176
Current liabilities	1,889
Deferred revenues	5,742
Deferred tax liabilities	7,181
Other long-term liabilities	8,257
Total liabilities acquired	23,069
Net assets acquired	$ 76,107

General (Details) - Schedule _2

General (Details) - Schedule of components of intangible assets associated with acquisition $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 29,946
Developed technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	10,517
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	19,266
Backlog [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 163

General (Details) - Schedule _3

General (Details) - Schedule of assets and liabilities based upon fair values as determined $ in Thousands	Dec. 31, 2020USD ($)
General (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items]
Net assets	$ 1,447
Intangible assets	9,730
Deferred taxes	(3,211)
Goodwill	14,521
Net assets acquired	22,487
Knowledge Price [Member]
General (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items]
Intangible assets	7,562
Deferred taxes	(2,313)
Goodwill	14,875
Net assets acquired	19,600
Net liabilities	(524)
Cálculo [Member]
General (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items]
Net assets	4,101
Intangible assets	1,037
Goodwill	622
Net assets acquired	5,760
Adaptik Corporation [Member]
General (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items]
Intangible assets	12,936
Deferred taxes	(3,528)
Goodwill	11,468
Net assets acquired	18,179
Net liabilities	$ (2,697)

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant Accounting Policies (Details) [Line Items]
Impairment loss	$ 351
Severance expense	$ 4,020	$ 3,718	$ 3,919
Retirement savings plan, description	The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 2-3% if an employee contributed 6%.
Employer match expense	$ 1,233	1,144	854
Derivative, gain (loss) on derivative, net, total	104	535	(869)
Accumulated other comprehensive income (loss), net of tax	11,026	(2,381)
Trade receivables		48,623
Trade receivables, allowance for doubtful accounts	1,558	543	1,558
Options Strategies Contracts [Member]
Significant Accounting Policies (Details) [Line Items]
Derivative, notional amount	1,650	24,296	40,871
Options and Forward Contracts [Member]
Significant Accounting Policies (Details) [Line Items]
Outstanding option notional amount	$ 3,866	15,384	4,950
Vehicles [Member]
Significant Accounting Policies (Details) [Line Items]
Useful life	3 years
Software Development [Member]
Significant Accounting Policies (Details) [Line Items]
Useful life	7 years
Forward Contracts [Member]
Significant Accounting Policies (Details) [Line Items]
Notional amounts	$ 260,862	$ 74,297	$ 17,731

Significant Accounting Polici_4

Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life	12 Months Ended
	Dec. 31, 2020
Computers and peripheral equipment [Member] | Minimum [Member]
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items]
Estimated useful lives of the assets	20.00%
Computers and peripheral equipment [Member] | Maximum [Member]
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items]
Estimated useful lives of the assets	33.00%
Office furniture and equipment [Member] | Minimum [Member]
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items]
Estimated useful lives of the assets	6.00%
Office furniture and equipment [Member] | Maximum [Member]
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items]
Estimated useful lives of the assets	33.00%
Buildings [Member]
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items]
Estimated useful lives of the assets	2.50%

Significant Accounting Polici_5

Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets	12 Months Ended
	Dec. 31, 2020
Technology [Member] | Minimum [Member]
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items]
Weighted average annual rate other intangible assets	13.00%
Technology [Member] | Maximum [Member]
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items]
Weighted average annual rate other intangible assets	50.00%
Customer relationships [Member] | Minimum [Member]
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items]
Weighted average annual rate other intangible assets	7.00%
Customer relationships [Member] | Maximum [Member]
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items]
Weighted average annual rate other intangible assets	15.00%
Patent [Member]
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items]
Weighted average annual rate other intangible assets	10.00%

Significant Accounting Polici_6

Significant Accounting Policies (Details) - Schedule of fair value of each option granted - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items]
Contractual life	6 years	6 years	6 years
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items]
Expected exercise factor (in Dollars per share)	$ 2	$ 2	$ 2
Expected volatility (weighted average)	31.00%	30.50%	30.00%
Risk-free interest rate	0.40%	1.60%	2.60%
Maximum [Member]
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items]
Expected exercise factor (in Dollars per share)	$ 2.8	$ 2.8	$ 2.8
Expected volatility (weighted average)	35.20%	30.90%	31.70%
Risk-free interest rate	1.80%	2.60%	3.10%

Significant Accounting Polici_7

Significant Accounting Policies (Details) - Schedule of liabilities measured at fair value - Fair value measurement using input Level 2 [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued expenses and other liabilities:
Derivative instruments	$ (707)	$ (67)
Total liabilities	$ (707)	$ (67)

Other Long-Term Assets (Details

Other Long-Term Assets (Details) - Schedule of other long-term assets - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Schedule of other long-term assets [Abstract]
Deferred tax assets		$ 1,870	$ 2,808
Long-term unbilled receivables	[1]	772	362
Other		2,622	2,091
Total other long term assets		$ 5,264	$ 5,261
[1]	Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations.

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation	$ 4,698	$ 3,470	$ 3,766

Property and Equipment, Net (_2

Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Cost:
Cost	$ 63,575	$ 59,671
Accumulated depreciation:
Accumulated depreciation	46,605	43,070
Depreciated cost	16,970	16,601
Computers and peripheral equipment [Member]
Cost:
Cost	43,313	41,648
Accumulated depreciation:
Accumulated depreciation	37,294	35,841
Office furniture and equipment [Member]
Cost:
Cost	9,805	8,618
Accumulated depreciation:
Accumulated depreciation	5,067	4,440
Buildings and leasehold improvements [Member]
Cost:
Cost	10,457	9,405
Accumulated depreciation:
Accumulated depreciation	$ 4,244	$ 2,789

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Jan. 31, 2020	Dec. 31, 2019	Apr. 30, 2019	Jun. 30, 2012
Leases (Details) [Line Items]
Operating lease, description	The Company’s leases have original lease periods expiring between 2021 and 2030.
Impairment charges	$ 351
Lease deposit		$ 1,000
Loss contingency	2,155
Additional operating lease	294
Operating lease liabilities	9,924		$ 8,312
Leases [Member]
Leases (Details) [Line Items]
Operating lease liabilities	$ 9,886		$ 8,651
Israel
Leases (Details) [Line Items]
Lease term					5 years
India
Leases (Details) [Line Items]
Lease term				5 years

Leases (Details) - Schedule of

Leases (Details) - Schedule of operating lease costs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Schedule of operating lease costs [Abstract]
Operating lease cost	$ 8,144	$ 5,260
Variable lease cost	4,150	3,920
Short-term lease cost	422	177
Total lease costs	$ 12,716	$ 9,357

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of weighted average remaining lease terms and discount rates	Dec. 31, 2020
Schedule of weighted average remaining lease terms and discount rates [Abstract]
Weighted average remaining lease term (years)	7 years 3 months 3 days
Weighted average discount rate	4.45%

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands	Dec. 31, 2020USD ($)
Schedule of maturities of lease liabilities [Abstract]
2021	$ 10,113
2022	11,216
2023	9,076
2024	7,863
2025	7,638
2026 and thereafter	24,080
Total undiscounted cash flows	69,986
Less imputed interest	11,289
Present value of lease liabilities	$ 58,697

Capitalized Software Developm_3

Capitalized Software Development Costs, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Research and Development [Abstract]
Amortization of capitalized software development costs	$ 6,558	$ 5,668	$ 4,859

Capitalized Software Developm_4

Capitalized Software Development Costs, Net (Details) - Schedule of changes in capitalized software development costs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of changes in capitalized software development costs [Abstract]
Balance at the beginning of the year	$ 23,953	$ 22,434
Capitalization	5,798	5,665
Amortization	(6,558)	(5,668)	$ (4,859)
Functional currency translation adjustments	1,169	1,522
Balance at year end	$ 24,362	$ 23,953	$ 22,434

Other Intangible Assets, Net (D

Other Intangible Assets, Net (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Intangible Assets, Net [Abstract]
Total consideration	$ 2,810
Amortization of Other Intangible Assets		$ 12,127	$ 10,000	$ 11,237

Other Intangible Assets, Net _2

Other Intangible Assets, Net (Details) - Schedule of other intangible assets, net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible asset, Gross	$ 131,788	$ 77,353
Intangible assets, Accumulated amortization	56,835	43,318
Other intangible assets, net	$ 74,953	34,035
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life (years)	8 years 6 months
Intangible asset, Gross	$ 59,482	23,409
Intangible assets, Accumulated amortization	$ 18,827	14,673
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life (years)	4 years 7 months 6 days
Intangible asset, Gross	$ 70,813	52,555
Intangible assets, Accumulated amortization	$ 37,050	27,891
Patent [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining useful life (years)	3 years 6 months
Intangible asset, Gross	$ 1,493	1,389
Intangible assets, Accumulated amortization	$ 958	$ 754

Other Intangible Assets, Net _3

Other Intangible Assets, Net (Details) - Schedule of other Intangible assets future amortization expense - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of other Intangible assets future amortization expense [Abstract]
2021	$ 15,906
2022	12,386
2023	12,025
2024	9,110
2025 and thereafter	25,526
Other intangible assets amortization expense	$ 74,953	$ 34,035

Goodwill (Details) - Schedule o

Goodwill (Details) - Schedule of carrying amount of goodwill - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at the beginning of the year	$ 170,703	$ 166,094
Acquisitions	87,438	622
Functional currency translation adjustments	6,141	3,987
Balance at year end	$ 264,282	$ 170,703

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - Schedule of accrued expenses and other liabilities - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued Expenses and Other Liabilities [Abstract]
Government authorities	$ 10,348	$ 13,675
Accrued interest – Series B Debentures		1,167
Accrued expenses and other liabilities	24,277	19,022
Accrued expenses and other liabilities	$ 34,625	$ 33,864

Series B Debentures, Net of C_3

Series B Debentures, Net of Current Maturities (Details) $ in Thousands, ₪ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2020ILS (₪)	Mar. 18, 2020USD ($)	Mar. 18, 2020ILS (₪)	Sep. 30, 2017ILS (₪)
Series B Debentures, Net of Current Maturities (Details) [Line Items]
Principal amount	$ 60,300	$ 79,200			₪ 210			₪ 280
Annual payments	$ 9,898			$ 9,898
Interest rate percentage	3.37%				3.37%
Debt discount and issuance costs	$ 80
Debentures, fair value			$ 122,760	70,593
Series B Debentures [Member]
Series B Debentures, Net of Current Maturities (Details) [Line Items]
Interest rate percentage		3.37%						3.37%
Debt discount and issuance costs		$ 956
Commercial bank was fully repaid						$ 20,000	₪ 210
Debt instrument, covenant description			In accordance with the indenture for the Series B Debentures, the Company is required to meet the following financial covenants: (1) Target shareholders’ equity (excluding minority interest)- above $120 million – as of December 31, 2020, total shareholders’ equity was approximately $382 million; and (2) Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65% - as of December 31, 2020 the ratio of net financial indebtedness to net capitalization was (9.75)%. (3) Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5. As of December 31, 2020, the Target ratio of net financial indebtedness to EBITDA was (0.47). As of December 31, 2020, Sapiens is in compliance with all of its financial covenants.
Interest expense			$ 3,180	2,336
Amortization of debt issuance costs			$ 134	$ 171

Series B Debentures, Net of C_4

Series B Debentures, Net of Current Maturities (Details) - Schedule of series B debentures, net of current maturities - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of series B debentures, net of current maturities [Abstract]
Series B Debentures	$ 118,778	$ 69,287
Less: Current maturities	(19,796)	(9,898)
Less: Unamortized debt discounts and issuance costs	(306)	(539)
Total	$ 98,676	$ 58,850

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingent Liabilities (Details) [Line Items]
Percentage of total net consolidated license and maintenance revenue	3.50%
Percentage of net consolidated consulting services revenue	0.35%
Royalty expense	$ 494	$ 471	$ 414
Contingent liability to pay royalties	6,014
Bank guarantees amount for leased offices	899
Bank guarantees amount for customers and suppliers	$ 291
Minimum [Member]
Commitments and Contingent Liabilities (Details) [Line Items]
Percentage of royalties to paid grants received	100.00%
Maximum [Member]
Commitments and Contingent Liabilities (Details) [Line Items]
Percentage of royalties to paid grants received	150.00%

Taxes on Income (Details)

Taxes on Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015
Taxes on Income (Details) [Line Items]
Income tax rate percentage	23.00%	23.00%	23.00%
Description of tax benefits	As part of Economic Efficiency Law (Legislative Amendments for Accomplishment of Budgetary Targets for Budget Years 2017-2018), 5777-2016, the tax rate is 16% for all other Areas other than Area A (which was 9% from 2016 onward).				As of December 31, 2015, some of the Company Israeli subsidiaries filed a notice to the Israeli tax authorities to apply for the new benefits under the 2011 Amendment and therefore and subject to the amended tax rate of 16%, which was used for 2014-2016 tax years.
Benefit regime for preferred technology enterprises, description	Amendment, with total consolidated revenues of the group companies is less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. A PTE that acquires Benefited Intangible Assets from a foreign company for more than NIS 200 million after January 1, 2017, will be eligible for 12% reduce tax rate on capital gain upon sale of the Benefited Intangible Assets.			The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a Special PTE (an enterprise for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion) and will thereby enjoy a reduced corporate tax rate of 6% on PTI regardless of the company’s geographic location within Israel. In addition, a Special PTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefited Intangible Assets” to a related foreign company if the Benefited Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign company on or after January 1, 2017. Starting 2017 under Amendment 73 to the Investment Law, part of the Company’s taxable income in Israel were entitled to a preferred 12% tax rate. Since 2019, under Special PTE the tax rate for part of the Company’s taxable income in Israel has been reduced to a 6% corporate tax rate.
Undistributed earnings of foreign subsidiaries	$ 22,155
Unrecognized deferred tax liability for temporary differences related to investments	2,952
Loss carryforwards	30,187
Accrued interest of unrecognized tax benefits	$ 1,748	$ 1,039
Isreal [Member]
Taxes on Income (Details) [Line Items]
Tax rate percentage	12.00%
Maximum [Member]
Taxes on Income (Details) [Line Items]
Income tax rate percentage			35.00%
Minimum [Member]
Taxes on Income (Details) [Line Items]
Income tax rate percentage			21.00%

Taxes on Income (Details) - Sch

Taxes on Income (Details) - Schedule of deferred tax assets and liabilities - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of deferred tax assets and liabilities [Abstract]
Net operating losses carryforwards	$ 8,701	$ 7,792
Research and development	1,514	2,312
Lease liability	9,441	10,161
Reserves and allowances	5,523	7,140
Other	2,041	1,011
Deferred tax assets before valuation allowance	27,220	28,416
Valuation allowance	(8,057)	(6,797)
Deferred tax assets	19,163	21,619
Capitalized software development costs	(3,428)	(4,011)
Lease right-of-use asset	(9,441)	(10,161)
Acquired intangibles	(17,498)	(8,107)
Property and equipment	(380)	(415)
Undistributed earnings	(1,302)	(921)
Other	(1,254)	(278)
Deferred tax liabilities	(33,303)	(23,893)
Deferred tax liabilities, net	(14,140)	(2,274)
Deferred tax assets, net	1,870	2,808
Deferred tax liabilities, net	(16,010)	(5,082)
Deferred tax liabilities, net	$ (14,140)	$ (2,274)

Taxes on Income (Details) - S_2

Taxes on Income (Details) - Schedule of income before income taxes - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of income before income taxes [Abstract]
Domestic (Israel)	$ 34,037	$ 34,303	$ 17,149
Foreign	7,161	798	1,882
Income before taxes on income	$ 41,198	$ 35,101	$ 19,031

Taxes on Income (Details) - S_3

Taxes on Income (Details) - Schedule of effective income tax rate reconciliation - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of effective income tax rate reconciliation [Abstract]
Income before taxes on income, as reported in the statements of income	$ 41,198	$ 35,101	$ 19,031
Statutory tax rate in Israel	23.00%	23.00%	23.00%
Theoretical taxes on income	$ 9,476	$ 8,073	$ 4,377
Effect of foreign tax rates	(85)	231	315
Effect of benefited tax rates	(5,426)	(2,557)	(1,233)
Carryforward tax losses and other temporary differences for which valuation allowance was provided (utilized)	558	783	(1,067)
Non-deductible expenses	1,722	549	1,276
Increase in uncertain tax positions, net	755	1,889	1,653
Others	41	(358)	(290)
Taxes on income, as reported in the statements of income	$ 7,041	$ 8,610	$ 5,031

Taxes on Income (Details) - S_4

Taxes on Income (Details) - Schedule of taxes on income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of taxes on income [Abstract]
Current	$ 7,543	$ 14,733	$ 6,839
Deferred	(502)	(6,123)	(1,808)
Taxes on income	7,041	8,610	5,031
Domestic (Israel)	3,695	3,639	4,081
Foreign	3,346	4,971	950
Taxes on income	$ 7,041	$ 8,610	$ 5,031

Taxes on Income (Details) - S_5

Taxes on Income (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Schedule of unrecognized tax benefits [Abstract]
Balance at the beginning of the year	$ 5,835	$ 3,946
Acquisition of subsidiaries	1,057
Increase in tax positions	2,487	1,999
Decrease in tax positions	(1,733)	(110)
Balance at the end of the year	$ 7,646	$ 5,835

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 06, 2020	Oct. 20, 2020	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	May 14, 2020
Equity (Details) [Line Items]
Proceeds from issuance		$ 108,737
Net of issuance expenses		$ 509
Re-pricing stock options (in Shares)			141,229
Stock options at an exercise price (in Dollars per share)			$ 10	$ 14.26
Total equity-based compensation expense				$ 3,987	$ 1,405	$ 1,942
Issuance of aggregate RSUs shares (in Shares)	173,005
Compensation costs related to RSUs				2,143
Total unrecognized compensation cost related to non-vested options				$ 6,454
Weighted-average period				1 year 9 months 3 days
Cash dividend per common share (in Dollars per share)							$ 0.14
Cash dividend total amount							$ 7,044
IPO [Member]
Equity (Details) [Line Items]
Shares issued (in Shares)		3,898,304
Shares issued price per share (in Dollars per share)		$ 29.50
2011 Plan [Member]
Equity (Details) [Line Items]
Total number of common shares available (in Shares)				8,000,000
Director [Member]
Equity (Details) [Line Items]
Re-pricing stock options (in Shares)			170,000
Exercise price range minimum (in Dollars per share)			$ 11.5
Exercise price range maximum (in Dollars per share)			$ 12.2
Director [Member] | 2011 Plan [Member]
Equity (Details) [Line Items]
Common shares available for future grant (in Shares)				2,610,136
Employees and Directors [Member]
Equity (Details) [Line Items]
Weighted average grant date fair values of options granted (in Dollars per share)				$ 7.99	$ 4.24	$ 3.43
Total intrinsic value of options exercised				$ 11,658	$ 2,301	$ 1,641

Equity (Details) - Schedule of

Equity (Details) - Schedule of stock option activities - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2020	Dec. 31, 2020
Schedule of stock option activities [Abstract]
Number of Options, Outstanding, Beginning balance	1,869,412	1,869,412
Weighted-Average Exercise Price, Outstanding, Beginning balance	$ 10.25	$ 10.25
Weighted-Average Remaining Contractual Term (in years), Outstanding, Beginning balance	3 years 2 months 15 days
Aggregate Intrinsic Value, Outstanding, Beginning balance	$ 23,838	$ 23,838
Number of Options, Granted		315,000
Weighted-Average Exercise Price, Granted		$ 26.28
Number of Options, Exercised		(603,519)
Weighted-Average Exercise Price, Exercised		$ 8.63
Number of Options, Expired and forfeited		(118,411)
Weighted-Average Exercise Price, Expired and forfeited		$ 11.15
Number of Options, Ending balance		1,462,482
Weighted-Average Exercise Price, Ending balance		$ 14.26
Weighted-Average Remaining Contractual Term, Ending balance		3 years 2 months 1 day
Aggregate Intrinsic Value, Ending balance		$ 24,019
Number of Options, Vested and expected to vest		1,462,482
Weighted-Average Exercise Price, Vested and expected to vest		$ 14.26
Weighted-Average Remaining Contractual Term, Vested		3 years 2 months 1 day
Aggregate Intrinsic Value, Vested		$ 24,019
Number of Options, Exercisable		732,209
Weighted-Average Exercise Price, Exercisable		$ 10.59
Weighted-Average Remaining Contractual Term, Exercisable		2 years 3 months 14 days
Aggregate Intrinsic Value, Exercisable		$ 14,092

Equity (Details) - Schedule o_2

Equity (Details) - Schedule of options outstanding under stock option plans - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2018
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding as of December 31, 2020 (in Shares)	1,462,482	1,869,412
Weighted Average remaining contractual Term	3 years 2 months 1 day
Weighted average exercise price	$ 14.26		$ 10
Options Exercisable as of December 31, 2020 (in Shares)	732,209
Weighted Average Exercise price of Options Exercisable	$ 10.59
1.12 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price	$ 1.12
Options outstanding as of December 31, 2020 (in Shares)	8,408
Weighted Average remaining contractual Term	4 months 28 days
Weighted average exercise price	$ 1.12
Options Exercisable as of December 31, 2020 (in Shares)	8,408
Weighted Average Exercise price of Options Exercisable	$ 1.12
8.31-10.07 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price, minimum	8.31
Ranges of exercise price, maximum	$ 10.07
Options outstanding as of December 31, 2020 (in Shares)	280,324
Weighted Average remaining contractual Term	1 year 8 months 23 days
Weighted average exercise price	$ 9.17
Options Exercisable as of December 31, 2020 (in Shares)	207,133
Weighted Average Exercise price of Options Exercisable	$ 9.15
11.07-11.09 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price, minimum	11.07
Ranges of exercise price, maximum	$ 11.09
Options outstanding as of December 31, 2020 (in Shares)	682,500
Weighted Average remaining contractual Term	2 years 9 months 21 days
Weighted average exercise price	$ 11.09
Options Exercisable as of December 31, 2020 (in Shares)	426,250
Weighted Average Exercise price of Options Exercisable	$ 11.09
11.85-15.46 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price, minimum	11.85
Ranges of exercise price, maximum	$ 15.46
Options outstanding as of December 31, 2020 (in Shares)	176,250
Weighted Average remaining contractual Term	3 years 3 months 7 days
Weighted average exercise price	$ 12.75
Options Exercisable as of December 31, 2020 (in Shares)	90,418
Weighted Average Exercise price of Options Exercisable	$ 12.41
24.29-25.4 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price, minimum	24.29
Ranges of exercise price, maximum	$ 25.4
Options outstanding as of December 31, 2020 (in Shares)	235,000
Weighted Average remaining contractual Term	5 years 1 month 17 days
Weighted average exercise price	$ 25.12
Options Exercisable as of December 31, 2020 (in Shares)
Weighted Average Exercise price of Options Exercisable
31.96 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Ranges of exercise price	$ 31.96
Options outstanding as of December 31, 2020 (in Shares)	80,000
Weighted Average remaining contractual Term	5 years 7 months 6 days
Weighted average exercise price	$ 31.96
Options Exercisable as of December 31, 2020 (in Shares)
Weighted Average Exercise price of Options Exercisable

Equity (Details) - Schedule o_3

Equity (Details) - Schedule of restricted stock unit activities - RSU [Member]	12 Months Ended
	Dec. 31, 2020$ / sharesshares
Equity (Details) - Schedule of restricted stock unit activities [Line Items]
Amount of options, Unvested | shares
Weighted Average Grant-Date Fair Value, Unvested | $ / shares
Amount of options, Granted | shares	238,005
Weighted Average Grant-Date Fair Value, Granted | $ / shares	$ 24.45
Amount of options, Unvested | shares	238,005
Weighted Average Grant-Date Fair Value, Unvested | $ / shares	$ 24.45

Related Parties Transactions (D

Related Parties Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Parties Transactions (Details) [Line Items]
Received services amount	$ 8,523	$ 6,005	$ 4,455
Asseco provided back office and professional services and fixed assets	521	676	980
Due to related parties	1,908	1,640
Due from related parties	770	1,241
Hardware and Software [Member]
Related Parties Transactions (Details) [Line Items]
Purchased from affiliated companies	$ 267	$ 194	$ 320

Basic and Diluted Net Earning_3

Basic and Diluted Net Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Diluted net earnings per share	200,000	0	1,369,514

Basic and Diluted Net Earning_4

Basic and Diluted Net Earnings Per Share (Details) - Schedule of earnings per share, basic and diluted - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of earnings per share, basic and diluted [Abstract]
Net income attributed to Sapiens’ shareholders (in Dollars)	$ 33,775	$ 26,247	$ 13,785
Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock	51,208	50,031	49,827
Stock options and RSU	951	622	279
Denominator for diluted net earnings per share - adjusted weighted average number of shares	52,159	50,653	50,106

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Geographic Information (Details) [Line Items]
Revenues	$ 382,903	$ 325,674	$ 289,707
Sales [Member]
Geographic Information (Details) [Line Items]
Percentage of revenues from major customers	10.00%	10.00%	10.00%
CANADA
Geographic Information (Details) [Line Items]
Revenues	$ 571	$ 476	$ 649
UK, Israel and Other European [Member]
Geographic Information (Details) [Line Items]
Revenues	$ 40,828	$ 41,051	$ 38,815

Geographic Information (Detai_2

Geographic Information (Details) - Schedule of revenues by country based - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Geographic Information (Details) - Schedule of revenues by country based [Line Items]
Revenues		$ 382,903	$ 325,674	$ 289,707
North America [Member]
Geographic Information (Details) - Schedule of revenues by country based [Line Items]
Revenues	[1]	187,258	163,565	136,477
Europe [Member]
Geographic Information (Details) - Schedule of revenues by country based [Line Items]
Revenues	[2]	172,660	133,851	128,513
Rest of the world [Member]
Geographic Information (Details) - Schedule of revenues by country based [Line Items]
Revenues		$ 22,985	$ 28,258	$ 24,717
[1]	Revenues from North America consist primarily of revenues from the United States, except for $649, $476 and $571 of revenues derived from Canada during the years ended December 31, 2018, 2019 and 2020, respectively.
[2]	Revenues from Europe include UK, Israel and other European countries. Revenues from the United Kingdom (UK) amounted to $38,815, $41,051 and $40,828 during the years ended December 31, 2018, 2019 and 2020, respectively.

Geographic Information (Detai_3

Geographic Information (Details) - Schedule of property and equipment - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Geographic Information (Details) - Schedule of property and equipment [Line Items]
Property and equipment	$ 71,360	$ 66,140
ISRAEL
Geographic Information (Details) - Schedule of property and equipment [Line Items]
Property and equipment	27,944	28,396
North America [Member]
Geographic Information (Details) - Schedule of property and equipment [Line Items]
Property and equipment	8,245	7,741
APAC [Member]
Geographic Information (Details) - Schedule of property and equipment [Line Items]
Property and equipment	20,871	23,437
Europe [Member]
Geographic Information (Details) - Schedule of property and equipment [Line Items]
Property and equipment	$ 14,300	$ 6,566

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue (Details) [Line Items]
Performance obligation	$ 192,000
Percentage of remaining performance obligations	73.00%
Short-term contract liabilities, description	Both trade receivables and deferred revenues (short-term contract liabilities) increased during 2020 as a result of business combinations of $6,784 and $15,875, respectively.
Revenues	$ 382,903	$ 325,674	$ 289,707
Deferred Revenues [Member]
Revenue (Details) [Line Items]
Revenues	$ 20,029

Revenue (Details) - Schedule of

Revenue (Details) - Schedule of disaggregated revenue - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total	$ 382,903	$ 325,674	$ 289,707
Revenues from pre-production implementation projects [Member]
Disaggregation of Revenue [Line Items]
Total	142,247	121,986
Revenues from post-production implementation projects [Member]
Disaggregation of Revenue [Line Items]
Total	$ 240,656	$ 203,688

Revenue (Details) - Schedule _2

Revenue (Details) - Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities [Abstract]
Trade receivables (net of allowance for credit losses of $543 and $1,558 at December 31, 2019 and 2020, respectively)		$ 48,623	$ 34,615
Short-term unbilled receivables	[1]	9,301	9,511
Long-term unbilled receivables	[1]	772	362
Contract assets	[2]	7,485	6,095
Deferred revenues (short-term contract liabilities)		34,548	21,021
Long-term deferred revenues (long-term contract liabilities)	[3]	$ 524	$ 216
[1]	Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations.
[2]	Contract assets relate to unbilled receivables, which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time.
[3]	Included in other long-term liabilities in the consolidated balance sheets

Revenue (Details) - Schedule _3

Revenue (Details) - Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities [Abstract]
Allowance for credit losses	$ 1,558	$ 543

Selected Statements of Operat_3

Selected Statements of Operations Data (Details) - Schedule of research and development expenses, net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of research and development expenses, net [Abstract]
Total costs	$ 47,156	$ 43,043	$ 39,574
Less - capitalized software development costs	(5,798)	(5,665)	(5,160)
Research and development expenses, net	$ 41,358	$ 37,378	$ 34,414

Selected Statements of Operat_4

Selected Statements of Operations Data (Details) - Schedule of financial income, net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial income:
Interest	$ 380	$ 382	$ 181
Foreign currency translation	1,312	991	867
Derivatives gains	721	565
Financial income, Total	2,413	1,938	1,048
Financial expenses:
Foreign currency translation, bank charges and other	1,299	1,646	1,059
Interest	4,302	3,030	3,225
Derivatives losses	617	30	755
Financial expenses, Total	(6,218)	(4,706)	(5,039)
Financial expense, net	$ (3,805)	$ (2,768)	$ (3,991)