FORM 20-F - Check Point

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share amounts)
NOTE 12:- SHAREHOLDERS’ EQUITY (Cont.)
NOTE 13:- EARNINGS PER SHARE
The repurchase programs have no time limit and may be suspended from time to time or
discontinued. Under the above programs, the Company repurchased during 2007, 2008 and
2009 approximately 9.02, 10.9 and 7.81 million shares, respectively, at a total cost of
$ 209,757, $ 239,542 and $ 202,285, respectively. The average purchase price per share
during 2007, 2008 and 2009 was $ 23.26, $ 21.95 and $ 25.89, respectively. Such
purchases of Ordinary shares are accounted for as treasury stock and result in a reduction
of shareholders’ equity. As of December 31, 2009, there is approximately $ 31,411
remaining out of the $400,000 authorized under the share repurchase program in 2008. On
January 27, 2010, a sixth program was announced, and authorized the repurchase of up to
$250,000 of Ordinary shares.
Through December 31, 2009, the Company reissued 21,555,289 of its repurchased
Ordinary shares in consideration for the exercise of stock options and restricted shares by
employees and for shares issued under the ESPP.
The following table sets forth the computation of basic and diluted earnings per share:
F-49
Years ended December 31,
2007 2008 2009
Net income $ 281,064 $ 323,966 $ 357,523
Weighted average Ordinary shares outstanding
(in thousands) 222,548 214,361 209,371
Dilutive effect:
Employee stock options and RSUs (in
thousands) 2,894 2,307 2,837
Diluted weighted average Ordinary shares
outstanding (in thousands) 225,442 216,668 212,208
Basic earnings per Ordinary share $ 1.26 $ 1.51 $ 1.71
Diluted earnings per Ordinary share $ 1.25 $ 1.50 $ 1.68
NOTE 14:- GEOGRAPHIC INFORMATION AND SELECTED STATEMENTS OF INCOME DATA
a. Summary information about geographical areas:
The Company operates in one reportable segment (see Note 1 for a brief description of the
Company’s business). The total revenues are attributed to geographic areas based on the
location of the Company’s channel partners which are considered as end customers, as
well as direct customers of the Company.
The following present total revenues for the years ended December 31, 2007, 2008 and
2009, and long-lived assets as of December 31, 2008 and 2009, by geographic area: