XML 62 R32.htm IDEA: XBRL DOCUMENT v3.19.1
TAXES ON INCOME (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Deferred Income Taxes
Significant components of the Company's deferred tax liabilities and assets are as follows:

     
December 31,
  
     
2018
    
2017
  
1.
Provided in respect of the following:
            
               
 
Carryforward tax losses and credits *)
  
$
41,561
    
$
38,918
  
 
Property, equipment and intangibles
    
904
      
1,484
  
 
Deferred revenues
    
823
      
2,224
  
 
Research and development costs
    
804
      
1,716
  
 
Other
    
7,202
      
7,435
  
                   
 
Gross deferred tax assets
    
51,294
      
51,777
  
                   
 
Valuation allowance
    
(40,943
)
    
(44,882
)
                   
 
Net deferred tax assets
    
10,351
      
6,895
  
                   
 
Gross deferred tax liabilities
                
 
Property, equipment and intangibles
    
(3,208
)
    
(3,098
)
 
Subsidy income
    
(3,574
)
    
(3,093
)
 
Other
    
(22
)
    
(829
)
                   
 
Gross deferred tax liabilities
    
(6,804
)
    
(7,020
)
                   
 
Net deferred tax assets (liabilities)
  
$
3,547
    
$
(125
)
                   
 
*)  The amounts are shown after reduction for unrecognized tax benefits of $ 1,989 as of December 31, 2018.
Schedule of Deferred Taxes Included in Consolidated Balance Sheets
2.
Deferred taxes are included in the consolidated balance sheets, as follows:
                
                   
 
Long term assets
  
$
4,127
    
$
861
  
 
Long term liabilities
  
$
(580
)
  
$
(986
Reconciliation of Statutory Tax Rate to Effective Tax Rate
Reconciling items between the statutory tax rate of the Company and the actual taxes on income (tax benefit):
 
   
Year ended
December 31,
  
   
2018
    
2017
    
2016
  
Income (loss) before taxes on income from continuing operations , as reported in the consolidated statements of income (loss)
  
$
16,986
    
$
6,554
    
$
(4,088
)
                         
Statutory tax rate
    
23.0
%
    
24.0
%
    
25.0
%
                         
Theoretical taxes on income (tax benefit)
  
$
3,907
    
$
1,573
    
$
(1,022
)
Currency differences
    
3,089
      
(3,225
)
    
(2,174
)
Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status
    
345
      
2,849
      
(5,580
)
Changes in valuation allowance
    
(3,939
)
    
(3,343
)
    
11,832
  
Loss from liquidation of subsidiaries *)
    
(8,930
)
    
-
      
-
  
Forfeiture of carryforward tax losses
    
-
      
622
      
261
  
Exempt subsidy income (loss)
    
394
      
(2,646
)
    
(4,224
)
U.S. Tax Cuts and Jobs Acts effect
    
56
      
2,138
      
-
  
Nondeductible expenses and other differences
    
3,655
      
1,785
      
2,159
  
                         
   
$
(1,423
)
  
$
(247
)
  
$
1,252
  
 
*) In 2018 the Company’s Dutch subsidiary liquidated some of its subsidiaries and consequently recognized losses for tax purposes. These losses can be offset from taxable income in future periods under the tax regulations in the Netherlands. The Company does not expect these losses to be realized in the foreseeable future and respectively provided a full valuation allowance.
Schedule of Taxes on Income
Taxes on income (tax benefit) included in the consolidated statements of income (loss):
 
   
Year ended
December 31,
  
   
2018
    
2017
    
2016
  
                   
Current
  
$
2,249
    
$
(436
)
  
$
1,248
  
Deferred
    
(3,672
)
    
189
      
4
  
                         
   
$
(1,423
)
  
$
(247
)
  
$
1,252
  
                         
Domestic
  
$
610
    
$
768
    
$
555
  
Foreign
    
(2,033
)
    
(1,015
)
    
697
  
                         
   
$
(1,423
)
  
$
(247
)
  
$
1,252
Schedule of Income (Loss) Before Taxes on Income
Income (loss) before taxes on income (tax benefit) from continuing operations:
 
   
Year ended
December 31,
  
   
2018
    
2017
    
2016
  
                   
Domestic
  
$
6,596
    
$
1,289
    
$
(8,056
)
Foreign
    
10,390
      
5,265
      
3,968
  
                         
   
$
16,986
    
$
6,554
    
$
(4,088
)
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
 
   
December 31,
  
   
2018
    
2017
  
             
Balance at beginning of year
  
$
129
    
$
776
  
Settlements with tax authorities
    
-
      
(718
)
Reductions for prior years' tax position
    
-
      
(58
)
Additions for prior years' tax position
    
1,809
      
129
  
Additions for current years' tax position
    
296
      
-
  
                 
Balance at the end of year *)
  
$
2,234
    
$
129
  

*) The amount for the year ended December 31, 2018 includes $1,989 of unrecognized tax benefits which are presented as a reduction from deferred tax assets, see Note 10d.