Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2015

Deferred income taxes

Provided in respect of the following:

	December 31
	2015			2014
	$ in thousands
Provision for vacation		779			801
Accrued severance pay		2,783			2,860
Carryforward tax losses		59,049			57,426
Research and development costs		5,570			5,280
Taxes on undistributed income		(3,082	)		(2,148	)
Intangible assets		(14,022	)		(19,135	)
Other		2,409			1,705
		53,488			46,789
Less - valuation allowance*		50,325			45,694
		3,163			1,095

Changes in Valuation Allowance

The changes in the valuation allowance are comprised as follows:

	Year ended December 31
	2015		2014			2013
	$ in thousands
Balance at beginning of year		45,694		48,228			51,595
Addition (reductions) during the year		4,631		(2,534	)		(3,367	)
Balance at end of year		50,325		45,694			48,228

Deferred Taxes Included in Balance Sheets

Deferred taxes are included in the balance sheets as follows:

	December 31
	2015		2014
	$ in thousands
Assets:
Current deferred income taxes				8,213
Non-current deferred income taxes		20,147		13,067
		20,147		21,280
Liability:
Non-current deferred income taxes		16,984		20,185
		3,163		1,095

Taxes on Income Included in Statements of Operations

Taxes on income included in the statements of operations

As follows:

	Year ended December 31
	2015			2014			2013
	$ in thousands
Current:
Israeli		(66	)		(665	)		(78	)
Non-Israeli		15,898			4,652			8,563
		15,832			3,987			8,485

Deferred:
Israeli		596			954			255
Non-Israeli		(2,640	)		(1,522	)		(1,813	)
		(2,044	)		(568	)		(1,558	)
Total income taxes expenses		13,788			3,419			6,927

Reconciliation of Theoretical Tax Expense

Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the statutory corporate tax rate applicable to Israeli corporations, and the actual tax expense:

	Year ended December 31
	2015			2014			2013
	$ in thousands
Income from continuing operations before taxes on income*		71,119			39,100			46,340
Theoretical tax expense on the above amount		18,847			10,362			11,585
Different tax rate arising from approved enterprises		1,196			1,278			(1,365	)
		20,043			11,640			10,220
Increase (decrease) in taxes resulting from:
Different tax rates applicable to non-Israeli subsidiaries		(10,205	)		(5,784	)		(199	)
Permanent differences, including difference between the basis of
measurement of income reported for tax purposes and the basis of
measurement of income for financial reporting-net		(305	)		228			(443	)
Other		(376	)		(131	)		716
Net change in valuation allowance		4,631			(2,534	)		(3,367	)
Actual tax expense		13,788			3,419			6,927

Taxable in Israel		77			(7,746	)		4,390
Taxable outside Israel		71,042			46,846			41,950
		71,119			39,100			46,340

Roll-forward of Total Amounts of Company's Unrecognized Tax Benefits

Following is a roll-forward of the total amounts of the Company’s unrecognized tax benefits at the beginning and the end of the years ending on December 31, 2015, 2014 and 2013 (excluding interest and penalties):

	Year ended December 31
	2015			2014			2013
	$ in thousands
Balance at beginning of year		18,687			19,633			19,016
Increase in unrecognized tax benefits as a result of tax positions taken during the year		1,478			1,412			2,376
Increase (decrease) in unrecognized tax benefits as a result of tax positions taken during prior years		974						(869	)
Decrease in unrecognized tax benefits as a result of statute of limitation expirations and tax audits		(6,735	)		(2,358	)		(890	)
Balance at end of year *		14,404			18,687			19,633

Of which $118,000 at December 31, 2015, $5,275,000 at December 31, 2014 and $3,274,000 at December 31, 2013 are classified as short term liabilities.