printmgr file

More documents

Recommendations

Info

CHECK POINT SOFTWARE FORM 20-F DFN ON-BOA ˆ200FDMqk04d==nK76Š 200FDMqk04d==nK7 RR Donnelley ProFile wcrdoc1 10.10 WCRjacis0in 26-Mar-2012 14:39 EST 229899 FIN 16 1* PAL 09-Apr-2012 13:21 EST CURR PS IFV 1C CHECK POINT SOFTWARE TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) future undiscounted cash flows the asset (or asset group) is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During 2009, 2010 and 2011, no impairment loss was recorded. In determining the fair values of long-lived assets for purpose of measuring impairment, the Company’s assumptions include those that market participants will consider in valuations of similar assets. i. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805, “Business Combinations”. ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. The ASC also requires the fair value of acquired in-process research and development (“IPR&D”) to be recorded as an indefinite life intangible asset (subject to impairment) until the research and developments efforts are either completed or abandoned, and restructuring and acquisition-related costs to be expensed as incurred. Any excess of the fair value of net assets acquired over the purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and acquired income tax positions are to be recognized in earnings. j. Research and development costs: Research and development costs are charged to the statement of income as incurred. ASC 985-20, “Software- Costs of Software to Be Sold, Leased, or Marketed”, requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. k. Revenue recognition: The Company derives its revenues mainly from products, licenses, combined hardware and software products, software updates and maintenance and subscriptions. The Company’s products are generally integrated with software that is essential to the functionality of the equipment. The Company sells its products primarily through channel partners including distributors, resellers, OEMs, system integrators and MSPs, all of whom are considered end-users. The Company also sells its products directly to end users primarily through its web site. Starting January 1, 2011 the Company adopted the guidance of ASU 2009-14, Certain Arrangements That Include Software Elements, (amendments to FASB ASC Topic 985, Software) (“ASU 2009-14”) and ASU 2009-13, Multiple-Deliverable Revenue Arrangements, (amendments to FASB ASC Topic 605, Revenue Recognition) (“ASU 2009-13”). ASU 2009-14 removes tangible products from the scope of software revenue guidance and provides guidance on determining whether software deliverables in an arrangement that includes a tangible product are covered by the scope of the software revenue guidance. ASU 2009-13 requires entities to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy. The amendment F-16
CHECK POINT SOFTWARE FORM 20-F DFN ON-BOA ˆ200FDMqk04elZMNh"Š 200FDMqk04elZMNh RR Donnelley ProFile wcrdoc1 10.10.12 WCRjacis0in 26-Mar-2012 16:39 EST 229899 FIN 17 2* PAL 09-Apr-2012 13:21 EST CURR PS PMT 1C CHECK POINT SOFTWARE TECHNOLOGIES LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) eliminates the residual method of revenue allocation and requires revenue to be allocated using the relative selling price method. As such, the Company prospectively applied these provisions to all revenue arrangements entered into or materially modified after January 1, 2011. This guidance does not generally change the units of accounting for the Company’s revenue transactions. Most products and services qualify as separate units of accounting and the revenue is recognized when the applicable revenue recognition criteria are met. While certain of the Company’s bundled products are now accounted for following ASC 605, the impact of the adoption of these standards was immaterial. As a result of the adoption of ASU 2009-14, starting January 1, 2011 the Company applies ASC No. 605, “Revenue Recognition” to products that include software updates and maintenance and subscription. Revenues from these bundled arrangements are separated into their various elements following ASU 2009-13 and are recognized for each element when persuasive evidence of an arrangement exists, the product or software license has been delivered, there are no uncertainties surrounding product acceptance, there are no significant future performance obligations, the amounts are fixed or determinable and collection of the amount is considered probable. Revenues for arrangements with payment terms extending beyond customary payment terms are considered not to be fixed or determinable, in which case revenue is deferred and recognized when payments become due from the customer or are actually collected, provided that all other revenue recognition criteria have been met. The Company’s revenue recognition policies provide that when a sales arrangement contains multiple elements, such as software and non-software components that function together to deliver the product’s essential functionality, the Company allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”), if available, third party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE or TPE is available. The Company applied software revenue recognition guidance, ASC 985-605, “Software Revenue Recognition”, to all transactions entered into prior to January 1, 2011 involving the sale of software products and hardware products that include software and to all software arrangements since January 1, 2011. Product and software license revenue is recognized when persuasive evidence of an arrangement exists, the software license has been delivered, there are no uncertainties surrounding product acceptance, there are no significant future performance obligations, the license fees are fixed or determinable and collection of the license fee is considered probable. For hardware transactions where software is essential to the functionality of the appliance, the Company did not separate the license fee and did not apply separate accounting guidance to the hardware and software elements. Fees for arrangements with payment terms extending beyond customary payment terms are considered not to be fixed or determinable, in which case revenue is deferred and recognized when payments become due from the customer or are actually collected, provided that all other revenue recognition criteria have been met. As required by ASC 985-605, the Company determined the value of the arrangement components (the delivered elements) of its multiple-element arrangements using the residual method when VSOE of fair value exists for the undelivered elements of the support and maintenance agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue. F-17
Page 1 and 2:
CHECK POINT SOFTWARE FORM 20-F DFN
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56: CHECK POINT SOFTWARE FORM 20-F DFN
Page 99 and 100: F-9 STATEMENTS OF CHANGES IN SHAREH
Page 105: CHECK POINT SOFTWARE FORM 20-F DFN
Page 139: CHECK POINT SOFTWARE FORM 20-F DFN
show all

printmgr file

Create successful ePaper yourself

Delete template?

Save as template?