Significant Accounting Policies [Text Block] | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”). a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars: Most of the Company’s revenues are generated in U.S. dollars. In addition, a substantial portion of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Monetary accounts maintained in currencies other than the U.S. dollar are remeasured into dollars in accordance with ASC No. 830 30, The financial statements of the Company’s subsidiary – DSP Group Technologies GmbH whose functional currency is in Euro, has been translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the consolidated statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in changes in stockholders’ equity. Accumulated other comprehensive loss related to foreign currency translation adjustments, net amounted to $335 $327 December 31, 2019 2018, c. Principles of consolidation: The consolidated financial statements include the accounts of the Company. Intercompany transactions and balances have been eliminated in consolidation. d. Cash equivalents: Cash equivalents are short-term highly liquid investments, which are readily convertible to cash with original maturity of three e. Restricted deposits: Restricted deposits, which are deposits with original maturities of more than three one f. Short-term deposits: Bank deposits with original maturities of more than three one g. Marketable securities: The Company accounts for investments in debt securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 320 10, The Company classified all of its investments in marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) using the specific identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in financial income, net. Interest and dividends on securities are included in financial income, net. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and the entity’s expectations of sales and redemptions in the following year. The marketable securities are periodically reviewed for impairment. If management concludes that any of these investments are impaired, management determines whether such impairment is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period, and the Company’s intent to sell, or whether it is more likely than not not December 31, 2019, 2018 2017, not 3 h. Fair value of financial instruments: Cash and cash equivalents, restricted deposits, short-term deposits, trade receivables, trade payables and accrued liabilities approximate fair value due to short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 The Company accounts for certain assets and liabilities at fair value under ASC 820, The hierarchy below lists three one three Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Include other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no 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. i. Inventories: Inventories are stated at the lower of cost and net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company and its subsidiaries periodically evaluate the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its market value. Cost is determined as follows: Work in progress and finished products- on the basis of raw materials and manufacturing costs on an average basis. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors, including the following: historical usage rates and forecasted sales according to outstanding backlogs. Purchasing requirements and alternative usage are explored within these processes to mitigate inventory exposure. When recorded, the reserves are intended to reduce the carrying value of inventory to its net realizable value. Inventory of $7,464, $9,819 $9,422 December 31, 2019, 2018 2017, $382, $508 $468 may j. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Mainly % Computers and equipment 20 – 33 33 Office furniture and equipment 7 – 15 15 Leasehold improvements see below Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. Long-lived assets of the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not During the years ended December 31, 2019, 2018 2017, no The Company accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC No. 350 40, 350 40 2019, 2018 2017, not k. Goodwill and other intangible assets: The goodwill and certain other purchased intangible assets have been recorded as a result of the BoneTone acquisition and the acquisition of a private company in Asia. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not ASC 350 two first second second 350 first two not not Alternatively, ASC 350 first The Company performs an annual impairment test on December 31 The Company’s reporting units are consistent with the reportable segments identified in Note 17. Fair value is determined using discounted cash flows, market multiples and market capitalization. Significant estimates used in the methodologies include estimates of future cash-flows, future short-term and long-term growth rates, weighted average cost of capital and market multiples for the reporting unit. For the fiscal year ended December 31, 2019, 2018 2017, no Intangible assets that are not 5 6 may not If such asset is considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount of the assets and the fair value of the impaired asset. During the fiscal year ended December 31, 2019, 2018 2017, no l. Severance pay: DSP Group Ltd., the Company’s Israeli subsidiary (“DSP Israel”), has a liability for severance pay pursuant to Israeli law, based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. DSP Israel’s liability is fully provided for by monthly accrual and deposits with severance pay funds and insurance policies. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may The Company’s Korean subsidiary has a statutory liability for severance pay pursuant to Korean law based on the most recent monthly salary of its employees multiplied by the number of years of employment of such employees as of the balance sheet date for such employees. The Korean subsidiary’s liability is fully accrued. Severance expenses for the years ended December 31, 2019, 2018 2017, $1,685, $1,679 $1,666, m. Revenue recognition: The Company generates its revenues from sales of products. The Company sells its products through a direct sales force and through a network of distributors. The Company adopted ASC 606, 606 January 1, 2018, January 1, 2018 606, not 605” The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. In order to achieve that core principle, the Company applies the following five 1 2 3 4 5 ( 1 A contract is an agreement between two ( 1 At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The Company’s contracts with customers for the sale of products generally include one ( 2 The transaction price is the amount of consideration to which the Company is entitled in exchange for transferring goods to a customer. Generally, the Company does not ( 3 The Company allocates the transaction price to one ( 4 Revenue is recognized at a point in time when or as performance obligation is satisfied by transferring control of a promised good to a customer. Generally, control of an asset is transferred to the customer on delivery of the products. Under ASC 606, For information of disaggregated revenue per segment, please refer to Note 17. n. Warranty: The Company warrants its products against errors, defects and bugs for generally one may December 31, 2019, 2018 2017. o. Research and development costs, net: Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred. p. Government grants: Government grants received by the Company’s Israeli subsidiary are credited to the consolidated statements of income during the period in which the expenditure to which they relate is charged. Royalty and non royalty bearing grants from the Israeli Innovation Authority ("IIA") (formerly known as Office of the Chief Scientist) for funding certain approved research and development projects are recognized at the time when the Company’s Israeli subsidiary is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses, net. The Company recorded grants in the amount of $1,635, $1,678 $1,528 December 31, 2019 2018 2017, The Company’s Israeli subsidiary is obligated to pay royalties amounting to 5% may not may not third not may may not six three third q. Equity-based compensation: At December 31, 2019, two may one no may one 13. The Company accounts for equity-based compensation in accordance with ASC No. 718, No. 718” No. 718 The Company recognizes compensation expenses for the value of its awards granted based on the accelerated attribution method, rather than a straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. FASB ASC No. 718 The Company selected the lattice option pricing model as the most appropriate fair value method for its equity-based awards and values options and stock appreciation rights (“SARs”) based on the market value of the underlying shares on the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected term of the equity-based award. Expected volatility is calculated based upon actual historical stock price movements. The expected term of the equity-based award granted is based upon historical experience and represents the period of time that the award granted is expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not no With respect to the Company’s employee stock purchase plan, the Company selected the Monte Carlo pricing model as the most appropriate fair value method. A majority of the Company’s equity awards until 2012 2013, The fair value of each restricted stock unit (“RSU”) is based on the market value of the underlying share on the date of grant. r. Basic and diluted income (loss) per share: Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per share further includes the dilutive effect of stock options, SARs and RSUs outstanding during the year, all in accordance with ASC No. 260, The total weighted average number of shares related to the outstanding stock options, SARs and RSUs excluded from the calculation of diluted net income per share due to their anti-dilutive effect was 1,419,612, 1,317,197 1,378,282 December 31, 2019, 2018 2017, s. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, Deferred tax liabilities and assets are classified as non-current based on the adopting of Accounting Standards Update (“ASU”) 2015 17, The Company accounts for uncertain tax positions in accordance with ASC 740, two first not second 50% The Company includes interest related to tax issues as part of income tax expense in its consolidated financial statements. The Company records any applicable penalties related to tax issues within the income tax provision. t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted deposits, short-term deposits, trade receivables and marketable securities. The majority of cash and cash equivalents and short-term deposits of the Company are invested in dollar deposits with major U.S., European and Israeli banks. Deposits in U.S. banks may not may The Company’s marketable securities consist of investment-grade corporate bonds and U.S. government-sponsored enterprise (“GSE”) securities. As of December 31, 2019, $87,024, $86,958, $66. A significant portion of the products of the Company is sold to original equipment manufacturers of consumer electronics products. The customers of the Company are located primarily in Japan, Hong Kong, Taiwan, China, Korea, Europe and the United States. The Company performs ongoing credit evaluations of their customers. A specific allowance for doubtful accounts is determined, based on management’s estimates and historical experience. Under certain circumstances, the Company may December 31, 2019 2018, no The Company has no u. Derivative instruments: The Company accounts for derivatives and hedging based on ASC No.815, No. 815 For derivative instruments that are designated and qualify as a cash flows hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and rent payments in New Israeli Shekel (“NIS”) during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and rent of its Israeli facilities denominated in NIS for a period of one 12 The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the years ended December 31, 2019, 2018 2017 Gains (losses) on derivatives Year ended December 31, 201 9 2018 2017 Foreign exchange forward contracts and put and call options $ 108 $ (19 ) $ 163 Gains (losses) on derivatives reclassified Year ended December 31, Location 201 9 2018 2017 Foreign exchange forward contracts and put and call options Operating expenses $ 105 $ (16 ) $ 172 As of December 31, 2019, no As of December 31, 2018, $3,600. As of December 31, 2017, no v. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC No. 220, The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for 2019: Unrealized gains (losses) on available- for-sale marketable securities Unrealized gains (losses) on Cash Flow Hedges Unrealized gains (losses) on components of defined benefit plans Unrealized gains (losses) on foreign currency translation Total January 1, 2019 $ (1,633 ) $ (3 ) $ (361 ) $ (327 ) $ (2,324 ) Other comprehensive income (loss) before reclassifications 1,494 108 (141 ) (10 ) 1,451 Losses (gains) reclassified from accumulated other comprehensive income (loss) 73 (105 ) 16 - (16 ) Net current period other comprehensive income (loss) 1,567 3 (125 ) (10 ) 1,435 December 31, 2019 $ (66 ) $ - $ (486 ) $ (337 ) $ (889 ) The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for 2019: Details about Accumulated Other Comprehensive Income Components Losses (gains) reclassified from accumulated other comprehensive income Affected Line Item in the Statement of Income (Loss) Losses on available-for-sale marketable securities $ 73 Financial income, net - Provision for income taxes 73 Total, net of income taxes Gains on cash flow hedges (83 ) Research and development (8 ) Sales and marketing (14 ) General and administrative (105 ) Total, before income taxes - Provision for income taxes (105 ) Total, net of income taxes Losses on components of defined benefit plans 11 Research and development 5 Sales and marketing 16 Total, before income taxes - Provision for income taxes 16 Total, net of income taxes Total reclassifications for the period (16 ) Total, net of income taxes w. Treasury stock at cost The Company repurchases its common stock from time to time on the open market or in other transactions and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of stockholders’ equity. From time to time, the Company reissues treasury stock under its employee stock purchase plan and equity incentive plans, upon purchases or exercises of equity awards under the plans. When treasury stock is reissued, the Company accounts for the re-issuance in accordance with ASC No. 505 30, x. Operating leases: Effective as of January 1, 2019, 842 842” 1 2 3 Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one no not not Some leases include one Some of the leases contain variable lease payments, including payments based on the Consumer Price Index (CPI). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. Additional payments based on changes in CPI are recorded as a period expense when incurred. As most of the Company's leases do not third may y. Recently issued and adopted accounting pronouncements: On January 1, 2019, 842 January 1, 2019 842, not 840. not January 1, 2019. 12 842, January 1, 2019, $12,500 $12,500. not z. Recently issued accounting pronouncements not In August 2018, 2018 15, 350 40 December 15, 2019, not In August 2018, 2018 14—Compensation—Retirement 715 20 December 15, 2020, In June 2016, 2016 13, 2016 13” 2016 13 January 1, 2020, not |