RETALIX LTD.

RETALIX LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 12 – SUPPLEMENTARY BALANCE SHEET INFORMATION (continued):
c. Long-term receivables:
1) Long-term receivables are composed as follows:
F-44
December 31,
2005
U.S. $ in
thousands
Long-term loans to employees 2) 63
Long-term trade receivables 2,754
Less - Unamortized discount* (200)
* The discount is based on imputed interest of 4%.
2) Long-term loans to employees granted by the Company are linked to the Israeli CPI and bear interest at an annual rate of
2% to 4%. Repayment dates are up to four years from the date of grant.
NOTE 13 – DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS:
a. Concentrations of credit risks - allowance for doubtful accounts:
All of the Group’s cash and cash equivalents, and marketable securities as of December 31, 2005 and 2004 were deposited with
major Israeli, U.K., U.S. ,Italian and Australian banks and with an investment management firm. Such securities represent
mainly highly rated corporations. The Group is of the opinion that the credit risk in respect of these balances is remote.
Most of the Group’s revenues are derived from a large number of customers. Consequently, the exposure to credit risks relating
to trade receivables is limited. The Group performs ongoing credit evaluations of its customers and generally does not require
collateral. An appropriate allowance for doubtful accounts is included in accounts receivable..
2,617
The allowance for doubtful accounts is determined for specific debts which are doubtful of collection.
b. Fair value of financial instruments:
The fair value of the financial instruments included in the working capital of the Group is usually identical or close to their
carrying value. The fair value of long-term receivables, long-term loans and other long-term liabilities also approximates the
carrying value, since they bear interest at rates close to the prevailing market rates. The amounts funded in respect of employee
rights are stated at fair value.