SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Use of estimates |
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| Financial statements in United States dollars |
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| Principles of consolidation |
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| Cash equivalents |
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| Short-term bank deposits |
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| Trade Receivables |
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| Investments in marketable securities |
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| Property and equipment, net |
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| Leases |
The
weighted-average remaining lease term and discount rate were as follows:
Rent
expenses for the years ended December 31, 2025, 2024 and 2023, were $11.7,
$9.6
and $7.7
respectively.
The
Company has a lease that has not yet commenced, for its new campus site in Israel. The lease is expected to commence during fiscal 2026
with a lease term of approximately 83 years. As of December 31, 2025 the Company has prepaid lease payments in connection with
the land of Checkpoint Campus in the amount of $159.9.
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| Business combination |
The
Company applies the provisions of ASC 805, “Business Combination” and allocates the fair value of purchase consideration to
the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the
fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.
When
determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially
with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected
cash flows from acquired technology and acquired trademarks and tradenames from a market participant perspective, useful lives and discount
rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain
and unpredictable and, as a result, actual results may differ from estimates. Acquisition-related expenses are recognized separately from
the business combination and are expensed as incurred (see also Note 3).
During
the measurement period, which may extend for up to one year from the acquisition date, the Company may record adjustments to the provisional
fair values of the assets acquired and liabilities assumed, with a corresponding adjustment to goodwill. Upon the earlier of the end of
the measurement period or the final determination of the fair values of the assets acquired and liabilities assumed, any subsequent adjustments
are recorded in earnings. |
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| Goodwill |
Goodwill
has been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the
fair value of identifiable net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment
test.
ASC
No. 350, “Intangibles - Goodwill and other” (“ASC No. 350”) requires goodwill to be tested for impairment
at the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired.
ASC
No. 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill
impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment
testing is required. If it does result in a more likely than not indication of impairment, the quantitative goodwill impairment test is
performed. Alternatively, ASC No. 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly
to performing the quantitative goodwill impairment test. If the carrying
value of a reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess.
The
Company operates in
one operating segment, and this segment is the only reporting unit. The Company performs the quantitative goodwill impairment
test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present and compares the fair value
of the reporting unit with its carrying value.
During
the years 2025, 2024 and 2023, no
goodwill impairment losses have been identified. |
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| Intangible assets, net |
Intangible
assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1
to 20
years. These intangible assets consist of core technology, customer relationship, trademarks and trade names which are amortized over
their estimated useful lives. |
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| Impairment of long-lived assets including intangible assets subject to amortization and ROU assets |
The
Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment”,
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to
be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the assets exceeds the fair value of the assets. During the years 2025, 2024 and 2023, no impairment losses
have been identified. |
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| Manufacturing partner and supplier liabilities |
The
Company purchases manufactured products from its original design manufacture (“ODM”). The Company generally does not
own the manufactured products. ODM’s provide services of design, manufacture, orders fulfillment and support with a full turn-key
solution to meet the Company’s detailed requirements. If the actual demand is significantly lower than forecast, the Company records
a liability for its commitment in excess of the actual demand. As of December 31, 2025 and 2024, the Company has not accrued any
significant liability in respect with this exposure. |
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| Research and development costs |
Research
and development costs are charged to the consolidated statements of income as incurred. ASC No. 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, research and development costs are expensed as incurred. As of December 31, 2025 the Company has not capitalized
any significant costs. |
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| Revenue recognition |
The
Company derives its revenues mainly from sales of products and licenses, security subscriptions and software updates and maintenance.
The Company’s products are generally integrated with software that is essential to the functionality of the product. The Company
sells its products primarily through channel partners including distributors, resellers, OEMs (Original Equipment Manufacturers), system
integrators and MSSPs (Managed Security Service Providers), all of whom are generally considered end-users. The Company’s standard
payments terms are net 30 days, however there are cases where the Company extend the payment terms for longer periods. Shipping fees charged
to customers are reported as part of revenues.
The
Company’s security subscriptions provide customers with access to its suite of security solutions and is sold as a service. Security
subscription revenue also includes software licenses that are not distinct from the related software updates. Revenue related to the combined
performance obligation is recognized over the period the updates are delivered as the nature of the performance obligation is to provide
security over the contract term.
The
Company’s software updates and maintenance provide customers with rights to unspecified software product upgrades released during
the term of the agreement and include maintenance services to end-user customers, through primarily telephone access to technical support
personnel as well as hardware support services. The Company may also provide professional services to its customers.
The
Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company
identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates
the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance
obligation.
The
Company’s arrangements typically contain various combinations of its products and licenses, security subscriptions, software updates
and maintenance, and professional services, which are distinct and are accounted for as separate performance obligations. The Company
allocates the transaction price to each performance obligation based on its relative standalone selling price. Standalone selling prices
are typically estimated based on observable transaction when the underlying goods or services are sold on a standalone basis.
Revenues
from sales of products and licenses are recognized when control of the promised goods is transferred to the customer, or upon electronic
transfer of the Certificate Key to the Customer. Revenues from security subscriptions and from software updates and maintenance are recognized
ratably over the term of the agreement since these services generally have a consistent continuous pattern of transfer to a customer during
the contract period. Revenues from professional services are recognized over time, based on customer usage, which the Company believes
best depicts the transfer of services to the customers. In instances where performance obligations do not have observable standalone sales,
the Company utilizes available information that may include market conditions, pricing strategies, and other observable inputs.
Deferred
revenues represent mainly the unrecognized revenue billed to customers for security subscriptions and for software updates and maintenance.
Such revenues are recognized ratably over the term of the related agreement. The amount of revenues recognized in the period that was
included in the opening deferred revenues balance was $1,471.3 and
$1,413.8 for
the years ended December 31, 2025 and December 31, 2024, respectively.
Revenues
expected to be recognized from remaining performance obligations were $2,728.3
and $2,516.1
as of December 31, 2025 and December 31, 2024, respectively. Of the balance as of December 31, 2025 the Company expects
to recognize approximately $1,670.1
over the next 12 months and the remainder will be recognized over a period of two to five years thereafter.
The
Company records a provision for estimated sales returns, rebates, stock rotations and other rights provided to customers on product and
services based on historical sales returns, analysis of credit memo data, rebate plans, stock rotation arrangements and other known factors.
This provision is accounted for as variable consideration that is deducted from revenue in the period in which the revenue is recognized.
Such provision amounted to $10.8
and $13.6
as of December 31, 2025 and 2024, respectively, and is included in accrued expenses and other liabilities in the consolidated balance
sheets.
Sales
commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a
customer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts
as initial commission rates are commensurate with the renewal commission rates. Amortization expense is included in sales and marketing
expenses in the consolidated statements of income. If the amortization period of those costs is one year or less, the costs are expensed
as incurred. As of December 31, 2025 and 2024, the amount of deferred commission was $28.9
and $41.5,
respectively, and is included in other short term and other long term assets on the balance sheets. During the years ended on December 31,
2025, 2024 and 2023 the Company recorded amortization expenses in connection with deferred commissions in the amount of $17.7,
$15.3
and $10.6,
respectively.
In
instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally
do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with
simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers
with financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less
for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently
remitted to governmental entities.
For
information regarding disaggregated revenues, please refer to Note 16 below. |
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| Cost of revenues |
Cost
of products and licenses is comprised of cost of software and hardware production, manuals, packaging and shipping.
Cost
of security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and costs of customer support
related to these services.
Cost
of software updates and maintenance is mainly comprised of cost of post-sale customer support and professional services.
Amortization
of technology is comprised of amortization of core technology assets which are used in the Company’s operations, and is presented
separately as part of cost of revenues. |
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| Severance pay |
Effective
January 1, 2007, the Company’s agreements with employees in Israel, are under Section 14 of the Severance Pay Law, 1963.
The Company’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based
on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay
and no additional payments is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of
the employee for such obligation are not stated on the balance sheets, as the Company is legally released from the obligation to employees
once the required deposit amounts have been paid. |
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| Employee benefit plan |
The
Company has a 401(K) defined contribution plan covering certain employees in the U.S. The Company matches 50%
of employee contributions to the plan up to a limit of 6%
of their eligible compensation. The Company’s matching contribution to the plan were insignificant for the years ended December 31,
2025, 2024 and 2023. |
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| Income taxes |
The
Company accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC
No. 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined for temporary
differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce
deferred tax assets to amounts more likely than not to be realized. The Company accrues interest and indexation related to unrecognized
tax benefits on its taxes on income.
ASC
No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate
the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is
more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution
of any related appeals or litigation processes.
The
second step is to measure the tax benefit as the largest amount that is more than 50%
(cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits
in taxes on income. |
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| Advertising costs |
Advertising
costs are expensed as incurred. Advertising expenses for the years ended December 31, 2025, 2024 and 2023, were $11.9,
$12.5
and $7.6
respectively. |
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| Concentrations of credit risk |
Financial
instruments that could potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents,
short-term bank deposits, marketable securities, trade receivables and foreign currency derivative contracts.
The
majority of the Company’s cash and cash equivalents and short-term bank deposits are deposited in major banks in the U.S., Israel
and Europe. Deposits in the U.S. may be in excess of federal insured limits and are not insured in other jurisdictions. Generally, these
investments may be redeemed upon demand or at maturity, and the Company believes that the financial institutions that hold the Company’s
cash deposits are financially sound and, accordingly, bear minimal risk. Marketable securities are held mainly by Check Point Ltd., the
Company’s Canadian subsidiary and the U.S. subsidiary, and are invested in securities denominated mainly in US dollar.
The
Company’s marketable securities consist mainly of investments in government, corporate and government sponsored enterprises debentures.
The Company’s investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type
of investment, or issuer, thereby reducing credit risk concentrations.
The
Company’s trade receivables are geographically dispersed and the majority is derived from sales to channel partners mainly in the
United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit
evaluation and account monitoring procedures.
The
Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement.
The Company seeks to mitigate such risk by entering into such derivatives with financial institutions with Investment Grade credit rating.
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| Derivatives and hedging |
The
Company accounts for derivatives and hedging based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”).
ASC No. 815 requires the Company to recognize all derivatives on the balance sheets at fair value. The accounting for changes in
the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a
hedging relationship, as well as the type of hedging relationship. For those derivative instruments that are designated and qualify as
hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash
flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are designated
as such, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change
in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive
income until the hedged item is recognized in earnings.
The
Company entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As
of December 31, 2025 and 2024, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting,
in the notional amount of $196.0
and $253.6,
respectively. The Company measured the fair value of the contracts in accordance with ASC No. 820, “Fair Value Measurement”
(“ASC No. 820”) (classified as level 2 of the fair value hierarchy). The net gain (losses) resulting from these forward
contracts recognized in financial income, net during 2025, 2024 and 2023 were $30.3,
$(5.6)
and $(6.2),
respectively. The change in fair value of the Company’s outstanding forward contracts vs. the notional amounts at December 31, 2025
and 2024 was insignificant.
The
Company entered into forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related
expenses denominated in New Israeli Shekel, in Euro, and in British Pound. As of December 31, 2025 and 2024, the Company had outstanding
forward contracts for payroll and related expenses in the notional amount of $328.7
and $359.4,
respectively. These contracts were for a period of up to twelve months.
The
Company measured the fair value of the contracts in accordance with ASC No. 820 (classified as level 2 of the fair value hierarchy).
These contracts met the requirement for cash flow hedge accounting and, as such, gains (losses) on the contracts are recognized initially
as component of Accumulated Other Comprehensive Income in the balance sheets and reclassified to the consolidated statements of
income in the period the related hedged items affect earnings.
During
2025, 2024 and 2023 gains (losses) were reclassified when the related expenses were incurred and recognized in the operating expenses
as follow:
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| Basic and diluted earnings per share |
Basic
earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings
per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary
shares outstanding during the year, in accordance with ASC No. 260, “Earnings Per Share”.
The
total weighted average number of shares related to the outstanding options, RSUs, PSUs and the Note to purchase the Company’s Ordinary
shares, excluded from the calculations of diluted earnings per share, since it would have an anti-dilutive effect, was 1,057,165,
90,092
and 1,319,235
for 2025, 2024 and 2023, respectively.
The number above for 2025 represents shares underlying the Convertible Notes that were excluded from the computation of diluted earnings per share, as their effect was anti-dilutive for the period. As the principal amount of the Convertible Notes are required to be cash settled, only the amount by which the conversion value exceeds the aggregate principal amount of the Convertible Notes is considered in the diluted earnings per share computation. |
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| Accounting for stock-based compensation |
The
Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC
No. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the grant date
using an option-pricing model.
The
Company recognizes compensation expenses for the value of awards granted, based on the straight line method for service based graded vesting
awards and based on the accelerated method for performance-based graded vesting awards. Compensation expense is recognized over the
requisite service period of the awards. The Company recognizes forfeitures of awards as they occur.
The
Company selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock
options awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value
of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, the most significant of which
are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical
stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options.
The
Company determines the grant‑date fair value of its RSUs and PSUs based on the closing market price of its ordinary shares on the
date of grant.
The
expected term of options granted is based upon historical experience and represents the period of time between when the options are granted
and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent
term to the expected term of the options. The Company has historically not paid dividends and has no plans to pay dividends in the foreseeable
future.
The
fair value of options granted and Employee Stock Purchase Plan in 2025, 2024 and 2023 is estimated at the date of grant using the following
weighted average assumptions:
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| Fair value of financial instruments |
The
Company measures its investments in money market funds (classified as cash equivalents), short-term bank deposits, marketable securities
and its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy
is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:
The
fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when
measuring fair value.
The
carrying value of trade receivables, prepaid expenses and other assets, trade payables, employees and payroll accruals, and accrued expenses
and other liabilities approximate fair value due to the short-term maturities of these instruments.
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| Comprehensive income |
The
Company accounts for comprehensive income in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive income
generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions
to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative
instruments and unrealized gains and losses on available-for-sale debt securities. |
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| Treasury shares |
The
Company repurchases its ordinary shares from time to time on the open market and holds such shares as treasury shares. The Company presents
the cost to repurchase treasury stock as a separate component of shareholders’ equity.
The
Company reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance
of treasury shares is accounted for in accordance with ASC No. 505-30 whereby gains are credited to additional paid-in capital and
losses are charged to additional paid-in capital to the extent that previous net gains are included therein; otherwise to retained earnings.
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| Legal contingencies |
The
Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its
potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably
estimated, the Company accrues a liability for the estimated loss. |
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| Convertible Senior Notes and Capped Call Transactions |
The
Convertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) are accounted for in accordance
with ASC Subtopic 470, "Debt" and ASC 815 "Derivatives and Hedging". The Company records the Notes at amortized cost as a single unit
of account on the consolidated balance sheet, since they were not issued at a substantial premium and do not contain bifurcated embedded
derivatives. The carrying value of the liability is represented by the face amount of the Notes, less debt issuance costs, adjusted for
any amortization of issuance costs. Issuance costs are being amortized as interest expense over the term of the Convertible Notes, using
the effective interest rate method.
Capped
call transactions (“Capped Call Transactions” or “Capped Calls”) entered into in connection with the offering
of the Notes are separate transactions and are not part of the terms of the Notes. The Capped Calls are considered indexed to the Company’s
own stock and are equity-classified. Accordingly, they are recorded within equity. The cost incurred in connection with the Capped Calls
was recorded as a reduction to additional paid-in capital. |
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| Recently adopted Accounting Pronouncements |
In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public
entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income
taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025, and applied the new disclosure
requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect the new disclosure
requirements. See Note 12 in the accompanying notes to the consolidated financial statements for further detail.
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| Recently Issued Accounting Pronouncements, not yet adopted |
In
November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic
220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense
categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning
after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently
evaluating the impact of adopting ASU 2024-03.
In
July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses for Accounts Receivable
and Contract Assets, which provides a practical expedient when estimating expected credit losses for current accounts receivable and current
contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The practical expedient
assumes that current conditions as of the balance sheet date do not change for the remaining life of the assets. The guidance is effective
for the Company for the first quarter beginning January 1, 2026, with early adoption permitted. The Company is currently evaluating the
impact of adopting ASU 2025-05.
In
September 2025, the FASB issued ASU 2025-06, Intangible - Goodwill and Other Internal-Use Software (Subtopic 350-40), Targeted Improvements
to the Accounting for Internal-Use Software, which modernizes the accounting guidance for costs to develop software for internal use.
It removes the previous development stage model and introduces a more judgment-based approach. The guidance is effective for the Company
for the first quarter beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adopting
ASU 2025-06.
In
November 2025, the FASB issued ASU 2025-09 to amend the guidance in Derivatives and Hedging (Topic 815). The update provides targeted
improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional
flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. The guidance is effective for
fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating
the impact on its financial statement disclosures. |
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