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Segment Geographical Information and Major Customers

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

NOTE 18:-

SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

a.

The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and none proprietary software technology) and IT professional services.

The Company evaluates segment performance based on revenues and operating income of each segment. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. This data is presented in accordance with ASC 280, "Segment Reporting."

Headquarters' general and administrative costs have not been allocated between the different segments.

Software services

The Company develops markets, sells and supports a proprietary and none proprietary application platform, software applications, business and process integration solutions and related services.

IT professional services

The Company offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services.

There are no significant transactions between the two segments.

b.

The following is information about reported segment results of operation:

		Software services				IT professional services				Unallocated expense				Total
2017

Total revenues		$	77,100			$	181,040			$	-			$	258,140
Expenses			63,649				164,558				3,977				232,184

Segment operating income (loss)		$	13,451			$	16,482			$	(3,977	)		$	25,956

Depreciation and amortization		$	9,242			$	4,100			$	269			$	13,611

		Software services				IT professional services				Unallocated expense				Total
2018

Total revenues		$	81,332			$	203,043			$	-			$	284,375
Expenses			63,902				183,985				4,790				252,677

Segment operating income (loss)		$	17,430			$	19,058			$	(4,790	)		$	31,698

Depreciation and amortization		$	8,727			$	3,611			$	226			$	12,564

2019

Total revenues		$	86,140			$	239,490			$	-			$	325,630
Expenses			71,825				216,842				3,311				291,978

Segment operating income (loss)		$	14,315			$	22,648			$	(3,311	)		$	33,652

Depreciation and amortization		$	8,799			$	5,059			$	167			$	14,025

c.

The Company's business is divided into the following geographic areas: United States, Israel, Europe, Japan and other regions. Total revenues are attributed to geographic areas based on the location of the customers.

The following table presents total revenues classified according to geographical destination for the years ended December 31, 2017, 2018 and 2019:

		Year ended December 31,
		2019				2018				2017

United States		$	158,095			$	137,066			$	123,113
Israel			124,523				103,850				91,917
Europe			25,788				28,257				26,635
Japan			12,499				9,797				9,253
Other			4,725				5,405				7,222

		$	325,630			$	284,375			$	258,140

d.

The Company's long-lived assets are located as follows:

		December 31,
		2019				2018

Israel		$	108,608			$	100,206
United States			68,989				30,222
Japan			6,406				5,082
Other			3,248				2,800
Europe			3,103				1,247

		$	190,354			$	139,557

e.

The Company does not allocate its assets to its reportable segments; accordingly, asset information by reportable segments is not presented.

f.

In 2017, 2018 and 2019, the Company had one major customer, included in the IT professional services segment, which accounted for 13%, 13% and 9% of the group revenues, respectively.