{"url_path":"/sec/chkp/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL INFORMATION","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1015922/0001178913-26-001932-index.html","accession_number":"0001178913-26-001932","cik":"0001015922","ticker":"CHKP","issuer_name":"CHECK POINT SOFTWARE TECHNOLOGIES LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1015922/0001178913-26-001932-index.html","primary_entity_key":"0001015922","primary_entity_name":"CHECK POINT SOFTWARE TECHNOLOGIES LTD"},"word_count":607,"has_tables":true,"body_markdown":"ITEM 8.       \nFINANCIAL INFORMATION\n\n \n\nConsolidated Financial Statements\n\n \n\nYou can find our financial statements in “Item 18 –\nFinancial Statements”.\n\n \n\nDividend policy\n\n \n\nWe currently do not intend to distribute any amounts as dividend\nin the near-term. During 2013, we entered into a settlement agreement with the Israel Tax Authority, resulting in the full release of\nthe profits we generated under the Israeli Law for the Encouragement of Capital Investments (the “Investment Law”) through\nthe year ended December 31, 2011 (known in Israel as “trapped profits”), provided that in accordance with the Investment\nLaw and the regulations thereunder, during the five years commencing 2013, we were obligated to meet certain conditions which included\ninvestment in (i) production assets (as defined therein), (ii) research and development activities in Israel and (iii) employment\npayments for certain new employees (other than office holders) added after 2011. We believe we met those conditions. For amounts that\nwill be distributed as dividends from the non-trapped earnings, we will be exempt from additional taxes.\n\n \n\nLegal Proceedings\n\n \n\nWe operate our business in various countries and accordingly\nattempt to utilize an efficient operating model to structure our tax payments based on the laws in the jurisdictions in which we operate.\nThe breadth of our operations can cause disputes between us and various tax authorities in different parts of the world. In particular,\nfollowing audits of the Company’s 2016–2020 corporate tax returns, the Israeli Tax Authority (the “ITA”) issued\norders for the years 2016 through 2019 challenging our positions on several issues and demanded the payment of additional taxes in the\naggregate amount of NIS 536 million (approximately $158 million), not including an amount of NIS 476 million (approximately $140 million)\nrelated to expenses that will be deductible in future years, with respect of these four tax years (these amounts include interest and\nindexation up to the tax settlement’s payment date, i.e. 31 July 2025). On November 29, 2023, the Company filed an appeal to the\nDistrict Court of Tel Aviv against these orders.\n\n \n\nIn addition, the ITA issued tax assessment for the 2020 tax year\nin which it demanded the payment of additional taxes in the aggregate amount of NIS 94 million (approximately $28 million), not including\nan amount of NIS 106 million (approximately $31 million) related to expenses that will be deductible in future years, with respect to\nthe 2020 tax year (these amounts include interest and indexation up to the tax settlement’s payment date, i.e. 31 July 2025). On\nDecember 31, 2023 we submitted a tax appeal against the 2020 tax assessment to the ITA.\n\n \n\nOn July 15, 2025, the Company and the ITA entered into a settlement\nagreement under which the Company agreed to pay total additional taxes of NIS 223.2 million (approximately $66 million) in respect of\nthe 2016–2020 tax years, which was ratified by the District Court of Tel Aviv on July 16, 2025.  The Company settled the tax\ndemand payment to the ITA on July 31, 2025. The settlement fully and finally resolves all tax matters between the Company and the ITA\nrelating to the 2016-2020 tax years.\n\n \n\nWe are the defendant in various other lawsuits, including employment-related\nlitigation claims, lease termination claims and other legal proceedings in the normal course of our business. Litigation and governmental\nproceedings can be expensive, lengthy and disruptive to normal business operations, and can require extensive management attention and\nresources, regardless of their merit. While we currently intend to defend the aforementioned matters vigorously, we cannot predict the\nresults of complex legal proceedings, and an unfavorable resolution of a lawsuit or proceeding could materially adversely affect our business,\nresults of operations and financial condition.\n\n55"}