XML 55 R39.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAX (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Taxes |
Taxes on income included in the statements of income:
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Income taxes (tax benefit): |  |  |  |  |  |  |  |  |
Current taxes: |  |  |  |  |  |  |  |  |
In Israel |  |  | 6,251 |  |  |  | 5,581 |  |  |  | 6,279 |
Outside Israel |  |  | 10,308 |  |  |  | 10,303 |  |  |  | 6,089 |
|  |  | 16,559 |  |  |  | 15,884 |  |  |  | 12,368 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | (1,982 | ) |  |  | 91 |  |  |  | (121 | )
Outside Israel |  |  | (169 | ) |  |  | (1,179 | ) |  |  | 206 |
|  |  | (2,151 | ) |  |  | (1,088 | ) |  |  | 85 |
Taxes in respect of prior years: |  |  |  |  |  |  |  |  |  |  |  |
In Israel (*) |  |  | 1,775 |  |  |  | 81 |  |  |  | 369 |
Outside Israel (**) |  |  | 1,522 |  |  |  | - |  |  |  | - |
|  |  | 3,297 |  |  |  | 81 |  |  |  | 369 |
|  |  | 17,705 |  |  |  | 14,877 |  |  |  | 12,822 |
(*) During November 2017, the Company has received from the Israeli tax authority ("ITA") tax assessments for the years 2013-2015 amounting to approximately NIS 11 million (approximately US$ 3 million). An amount of NIS 7.2 million (approximately US$ 2 million) due to the timing differences related to the deduction of certain expenses for tax purposes, which was agreed to be deducted in the coming years. The Company recorded an amount of NIS 6.2 million (approximately US$ 1.8 million) as tax expense related to prior periods and a deferred tax benefit in a similar amount. As part of the above tax assessment, the Company was required to pay the ITA an amount of NIS 1.8 million (approximately US$ 0.5 million) as interest expense. Such amount was recognized as part of financing income, net. (**)During November 2017, one of our subsidiaries in Brazil has received from the Brazilian tax authority ("RFB") a tax assessments for the years 2012-2014 amounting to BRL 10.3 million (approximately US$ 3.1 million), mainly due to an undetectable expenses. Accordingly, our subsidiary recorded an amount of BRL 4.8 million (approximately US$ 1.5 million) as tax expense related to prior periods. As part of the above tax assessment our subsidiary was required to pay an amount of BRL 3.6 million (approximately US$ 1.1 million) as penalty and BRL 1.7 (approximately US$ 0.5 million) as interest expense.
Schedule of Income Tax Reconciliation |
The following is reconciliation between the theoretical tax on pretax income, at the applicable Israeli tax rate, and the tax expense reported in the financial statements:
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Pretax income |  |  | 55,546 |  |  |  | 50,054 |  |  |  | 41,833 |
Statutory tax rate |  |  | 24 | % |  |  | 25 | % |  |  | 26.5 | %
Tax computed at the ordinary tax rate |  |  | 13,331 |  |  |  | 12,514 |  |  |  | 11,086 |
Nondeductible expenses (income) |  |  | (815 | ) |  |  | 766 |  |  |  | 526 |
Losses in respect of which no deferred taxes were generated (including changes in valuation allowance) |  |  | 243 |  |  |  | (151 | ) |  |  | 831 |
Deductible financial expenses recorded to other comprehensive income |  |  | (113 | ) |  |  | 90 |  |  |  | (439 | )
Tax adjustment in respect of different tax rates |  |  | 3,119 |  |  |  | 2,040 |  |  |  | 1,411 |
Taxes in respect of withholding at the source from royalties and dividends |  |  | 542 |  |  |  | 95 |  |  |  | 78 |
Adjustment in respect of tax rate deriving from “approved enterprises” |  |  | (436 | ) |  |  | (501 | ) |  |  | (405 | )
Others |  |  | 1,834 |  |  |  | 24 |  |  |  | (266 | )
|  |  | 17,705 |  |  |  | 14,877 |  |  |  | 12,822 |
Summary of Deferred Taxes | Composition:
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2017 |  |  | 2016 |
Deferred taxes |  |  |  |  |  |
Provision for employee related obligations |  |  | 276 |  |  |  | 166 |
Provision for legal obligation and other |  |  | 6,262 |  |  |  | 3,868 |
Provision for employee related obligations |  |  | 849 |  |  |  | 771 |
Carry forward tax losses and foreign tax credit |  |  | 3,600 |  |  |  | 3,600 |
Temporary differences, net |  |  | 887 |  |  |  | 1,185 |
|  |  | 11,874 |  |  |  | 9,590 |
Valuation allowance |  |  | (3,476 | ) |  |  | (3,276 | )
|  |  | 8,398 |  |  |  | 6,314 |
Schedule of Income Before Income Taxes |
Income before income taxes is composed as follows:
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
The Company and its Israeli subsidiaries |  |  | 22,138 |  |  |  | 22,634 |  |  |  | 23,987 |
Non-Israeli subsidiaries |  |  | 33,408 |  |  |  | 27,420 |  |  |  | 17,846 |
|  |  | 55,546 |  |  |  | 50,054 |  |  |  | 41,833 |
Changes in Unrecognized Tax Benefits | Reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands) |  | US dollars |
Balance at January 1, 2015 |  |  | 421 |
Decrease related tax positions of prior years |  |  | (419 | )
Translations differences related to the current year |  |  | (2 | )
Balance at December 31, 2017, 2016 and 2015 |  |

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://www.xbrl.org/2003/role/presentationRef -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://www.xbrl.org/2003/role/presentationRef -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://www.xbrl.org/2003/role/presentationRef -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://www.xbrl.org/2003/role/presentationRef -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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=96868398&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -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