TAXES ON INCOME (Tables)

12 Months Ended

Dec. 31, 2021

Components of Deferred Tax Assets and Liabilities

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2021 and 2020, the Company’s deferred taxes were in respect of the following:


	December 31,
	2021			2020

Carry forward tax losses	$	83.7		$	81.5
Employee share based compensation		29.2			27.6
Deferred revenues		5.6			10.5
Tax credits		23.9			23.2
Other		23.5			15.9


Deferred tax assets before valuation allowance		165.9			158.7
Valuation allowance – mainly in respect to carryforward losses		(56.7	)		(59.2	)


Deferred tax asset		109.2			99.5

Intangible assets		(31.3	)		(21.0	)
Undistributed earnings of subsidiary		(9.9	)		(9.9	)
Other		(1.7	)		(14.2	)


Deferred tax liability		(42.9	)		(45.1	)


Deferred tax asset, net	$	66.3		$	54.4

*) As of December 31, 2021 and 2020 unrecognized tax benefit in the amounts of $14.6 and $20.0 was presented net from deferred tax asset.

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows:


	December 31,
	2021			2020

Beginning balance	$	442.8		$	412.9
Increases related to tax positions taken during prior years		47.2			49.4
Decreases related to statute of limitations		(77.2	)		(72.8	)
Increases related to tax positions taken during the current year		56.7			53.3


Ending balance	$	*) 469.5		$	*)442.8

Schedule of Effective Income Tax Reconciliation

Reconciliation of the theoretical tax expenses:

Reconciliation between the theoretical tax expenses, assuming all income is taxed at the statutory rate in Israel and the actual income tax as reported in the statements of income is as follows:


	Year ended December 31,
	2021			2020			2019

Income before taxes as reported in the statements of income	$	949.6		$	970.8		$	962.4


Statutory tax rate in Israel		23	%		23	%		23	%

Decrease in taxes resulting from:
Effect of “Preferred Enterprise” status *)		(11	%)		(11	%)		(11	%)
Others, net		2	%		1	%		2	%


Effective tax rate		14	%		13	%		14	%


*) Basic earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status	$	0.80		$	0.73		$	0.66


*) Diluted earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status	$	0.80		$	0.72		$	0.65