XML 27 R33.htm IDEA: XBRL DOCUMENT
v3.20.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Taxes on Income | b.Loss before taxes on income is comprised as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Domestic |  | $ | (53,432 | ) |  | $ | (50,679 | ) |  | $ | (85,369) |
Foreign |  |  | (1,518 | ) |  |  | 16,766 |  |  |  | 1,553 |
Loss before taxes on income |  | $ | (54,950 | ) |  | $ | (33,913 | ) |  | $ | (83,816 | )
Schedule of Deferred Income Taxes | Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | December 31, |
|  | 2018 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforward |  | $ | 45,314 |  |  | $ | 34,400 |
Capital losses carry-forwards |  |  | 53 |  |  |  | 59 |
Operating lease tax assets |  |  |  |  |  |  | 11,376 |
Research and development expenses |  |  | 1,901 |  |  |  | 4,011 |
Depreciation difference |  |  | 1,680 |  |  |  | 2,074 |
Accrued employees costs |  |  | 2,176 |  |  |  | 3,057 |
Tax advances |  |  | - |  |  |  | 3,353 |
Intra-entity intellectual property transfer(1) |  |  | - |  |  |  | 3,516 |
Other |  |  | 964 |  |  |  | 468 |
Deferred tax assets, net before valuation allowance |  |  | 52,088 |  |  |  | 62,314 |
Valuation allowance |  |  | (44,607 | ) |  |  | (45,465) |
Deferred tax asset, net |  | $ | 7,481 |  |  | $ | 16,849 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  | $ | 306 |  |  | $ | 322 |
Operating lease tax liabilities |  |  |  |  |  |  | 11,376 |
Acquired Intangible assets |  |  | 5,556 |  |  |  | 1,945 |
Share-based compensation |  |  | 467 |  |  |  | 1,305 |
Other |  |  | 171 |  |  |  | 209 |
Deferred tax liabilities |  | $ | 6,500 |  |  | $ | 15,157 |
Deferred taxes are included in the consolidated balance sheets, as follows: |  |  |  |  |  |
Long-term receivables |  | $ | 1,583 |  |  | $ | 14,730 |
Long-term liabilities |  | $ | 602 |  |  | $ | 13,036 |
(1)During 2019, the Company completed an intra-entity transfer from US to Israel of certain intangible property (“IP”) rights associated with a subsidiary’s technology platform. This transfer resulted in an income tax expense for US tax purposes of approximately $15,000. As a result of the IP transfer, the Company utilized NOLs and consequently released the valuation allowance.
Schedule of Income Taxes | d.Income taxes are comprised as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Current |  | $ | 4,042 |  |  | $ | 4,188 |  |  | $ | 3,309 |
Deferred |  |  | (2,719 | ) |  |  | (981 | ) |  |  | (711) |
|  | $ | 1,323 |  |  | $ | 3,207 |  |  | $ | 2,598 |
Domestic |  | $ | 578 |  |  | $ | 1,140 |  |  | $ | (1,981) |
Foreign |  |  | 745 |  |  |  | 2,067 |  |  |  | 4,579 |
|  | $ | 1,323 |  |  | $ | 3,207 |  |  | $ | 2,598 |
Reconciliation of Effective Tax Rate to Statutory Rate | e.A reconciliation of the Company's theoretical income tax expense to actual income tax expense as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Loss before taxes on income |  | $ | (54,950 | ) |  | $ | (33,913 | ) |  | $ | (83,816) |
Statutory tax rate |  |  | 24 | % |  |  | 23 | % |  |  | 23 | %
Theoretical income tax expense |  |  | (13,188 | ) |  |  | (7,800 | ) |  |  | (19,278) |
Change in valuation allowance |  |  | 2,122 |  |  |  | (1,925 | ) |  |  | (1,821) |
Non-deductible option expenses |  |  | 8,528 |  |  |  | 12,609 |  |  |  | 20,882 |
Non-deductible expenses |  |  | 1,263 |  |  |  | 824 |  |  |  | 728 |
Tax adjustment in respect of different tax rate of foreign subsidiary |  |  | (1,679 | ) |  |  | (1,627 | ) |  |  | 2,894 |
Rate change impact |  |  | 3,099 |  |  |  | (174 | ) |  |  | (90) |
Intra-entity intellectual property transfer |  |  | - |  |  |  | - |  |  |  | 196 |
Foreign tax |  |  | 881 |  |  |  | 1,182 |  |  |  | 102 |
Other |  |  | 297 |  |  |  | 118 |  |  |  | (1,015) |
Income tax expense |  | $ | 1,323 |  |  | $ | 3,207 |  |  | $ | 2,598 |
Schedule of reconciliation of the opening and closing amounts of total unrecognized tax benefits | A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Opening balance |  | $ | 1,098 |  |  | $ | 1,378 |  |  | $ | 334 |
Increases (decrease) related to previous and current year tax positions |  |  | 280 |  |  |  | (1,044 | ) |  |  | 1,696 |
Closing balance |  | $ | 1,378 |  |  | $ | 334 |  |  | $ | 2,030 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration