INCOME TAXES |
|
a. |
Taxes on income (tax benefit) are comprised as follows:
|
|
|
Three months ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Current period taxes
|
|
$
|
4,895
|
|
|
$
|
7,001
|
|
Deferred tax income, net and others
|
|
|
(973
|
)
|
|
|
(1,339
|
)
|
|
|
|
|
|
|
|
|
|
Taxes on income
|
|
$
|
3,922
|
|
|
$
|
5,662
|
|
|
b. |
Deferred income taxes:
|
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company’s deferred tax liabilities and assets are as follows:
|
|
As of March 31, 2019
|
|
|
As of December 31, 2018
|
|
|
|
(Unaudited)
|
|
|
|
|
Deferred tax assets, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and Development carryforward expenses
|
|
$
|
8,751
|
|
|
$
|
9,482
|
|
Carryforward tax losses
|
|
|
5,384
|
|
|
|
4,155
|
|
Stock based compensation expenses
|
|
|
3,571
|
|
|
|
3,160
|
|
Inventory Impairment
|
|
|
1,299
|
|
|
|
1,471
|
|
Allowance and other reserves
|
|
|
6,675
|
|
|
|
4,340
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
$
|
25,680
|
|
|
$
|
22,608
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, net:
|
|
|
|
|
|
|
|
|
Purchase price allocation adjustments
|
|
|
(19,635
|
)
|
|
|
(9,408
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax liabilities
|
|
$
|
(19,635
|
)
|
|
$
|
(9,408
|
)
|
|
|
|
|
|
|
|
|
|
Recorded as:
|
|
|
|
|
|
|
|
|
Deferred tax assets, net
|
|
$
|
14,589
|
|
|
$
|
14,699
|
|
Deferred tax liabilities, net
|
|
|
(8,544
|
)
|
|
|
(1,499
|
)
|
Net deferred tax assets
|
|
$
|
6,045
|
|
|
$
|
13,200
|
|
|
c. |
Uncertain tax positions:
|
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1,
|
|
$
|
8,499
|
|
|
$
|
579
|
|
Increases related to current year tax positions
|
|
|
1,033
|
|
|
|
8,499
|
|
Decreases related to prior year tax positions
|
|
|
-
|
|
|
|
(579
|
)
|
|
|
$
|
9,532
|
|
|
$
|
8,499 |
|