TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Provision for Income Taxes

b. The provision for income taxes is as follows:

	Year ended December 31,
	2011			2012			2013
Domestic taxes:
Current	$	1,452		$	727		$	(37	)
Deferred		(1,024	)		(742	)		(1,127	)
Foreign taxes:
Current		2,899			1,993			2,016
Deferred		(419	)		84			(64	)
	$	2,908		$	2,062		$	788
Income (loss) before taxes on income:
Domestic	$	542		$	(1,651	)	$	(4,315	)
Foreign		20,928			17,398			11,788
	$	21,470		$	15,747		$	7,473

Reconciliation Between Company's Effective Tax Rate and U.S. Statutory Rate

c. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate:

	Year ended December 31,
	2011			2012			2013
Income before taxes on income	$	21,470		$	15,747		$	7,473
Theoretical tax at U.S. statutory rate-		7,515			5,511			2,541
Foreign income taxes at rates other than U.S. rate		(5,622	)		(3,957	)		(2,610	)
Subpart F		221			529			633
Non-deductible items		355			346			169
Valuation allowance		(545	)		(380	)		(111	)
Other, net		984			13			166
Taxes on income	$	2,908		$	2,062		$	788
Effective tax rate		14	%		13	%		11	%

Deferred Taxes on Income

Significant components of the Company’s deferred tax assets are as follows:

	As at December 31,
	2012			2013
Deferred tax assets
Operating loss carryforward	$	8,498		$	8,544
Accrued expenses		414			490
Temporary differences related to R&D expenses		992			1,045
Equity-based compensation		1,435			2,085
Other		639			774
Total gross deferred tax assets		11,978			12,938
Valuation allowance		(8,735	)		(8,526	)
Net deferred tax assets	$	3,243		$	4,412
Deferred tax liabilities
Other	$	200		$	73
Total gross deferred tax liabilities	$	200		$	73
Net deferred tax assets (*)	$	3,043		$	4,339

(*) Net deferred tax for the year ended December 31, 2012 from domestic and foreign jurisdictions was $1,851 and $1,192, respectively.

Net deferred tax for the year ended December 31, 2013 from domestic and foreign jurisdictions was $2,999 and $1,340, respectively.

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits based on the provisions of FASB ASC No. 740 is as follows:

	Year ended December 31,
	2012			2013
Beginning of year	$	3,054		$	3,520
Additions for current year tax positions		187			116
Additions for prior year’s tax positions		614			—
Reductions for prior year’s tax positions		(335	)		(73	)
Balance at December 31	$	3,520		$	3,563