Check Point Software Technologies Ltd., an Israeli corporation (“Check Point Ltd.”), and subsidiaries (collectively, the “Company” or “Check Point”), develop, market and support wide range of products and services for IT security, by offering a multilevel security architecture that defends enterprises’ cloud, network and mobile device held information.

The Company operates in one operating and reportable segment and its revenues are mainly derived from the sales of its network and data security products, including licenses, related software updates, maintenance and security subscriptions. The Company sells its products worldwide primarily through multiple distribution channels (“channel partners”), including distributors, resellers, system integrators, Original Equipment Manufacturers (“OEMs”) and Managed Security Service Providers (“MSPs”).

During 2020, 2019 and 2018, approximately 39%, 37% and 36% of the Company’s revenues were derived from two channel partners, respectively. Revenues derived from one channel partner in 2020, 2019 and 2018 were 22%, 19% and 19%, respectively, and revenues derived from the other channel partner in 2020, 2019 and 2018 were 17%, 18%, and 17%, respectively, of the Company’s revenues in such years. Trade receivable balances from these two channel partners aggregated to $236.6 and $203.0 as of December 31, 2020 and 2019, respectively.