Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0001419612 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-36894 | |
Entity Registrant Name | SOLAREDGE TECHNOLOGIES, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 20-5338862 | |
Entity Address, Country | IL | |
Entity Address, City or Town | Herziliya Pituach | |
Entity Address, Address Line One | 1 HaMada Street | |
Entity Address, Postal Zip Code | 4673335 | |
City Area Code | 972 | |
Local Phone Number | (9) 957-6620 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Title of each class | Common stock, par value $0.0001 per share | |
Trading Symbol | SEDG | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Common Stock, Shares Outstanding | 51,211,402 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,048,109 | $ 223,901 |
Short-term bank deposits | 20,011 | 5,010 |
Restricted bank deposits | 2,242 | 27,558 |
Marketable securities | 110,585 | 91,845 |
Trade receivables, net of allowances of $6,690 and $2,473, respectively | 183,141 | 298,383 |
Prepaid expenses and other current assets | 83,866 | 115,268 |
Inventories, net | 297,027 | 170,798 |
Total current assets | 1,744,981 | 932,763 |
LONG-TERM ASSETS: | ||
Marketable securities | 21,003 | 119,176 |
Deferred tax assets, net | 10,678 | 16,298 |
Other long-term assets | 5,609 | 9,904 |
Property, plant and equipment, net | 257,717 | 176,963 |
Operating lease right-of-use assets, net | 36,965 | 35,858 |
Intangible assets, net | 68,122 | 74,008 |
Goodwill | 133,221 | 129,654 |
Total long-term assets | 533,315 | 561,861 |
Total assets | 2,278,296 | 1,494,624 |
CURRENT LIABILITIES: | ||
Trade payables, net | 122,106 | 157,148 |
Employees and payroll accruals | 50,814 | 47,390 |
Current maturities of bank loans and accrued interest | 15,642 | 15,673 |
Warranty obligations | 65,080 | 65,112 |
Deferred revenues and customers advances | 27,267 | 70,815 |
Accrued expenses and other current liabilities | 101,628 | 80,576 |
Total current liabilities | 382,537 | 436,714 |
LONG-TERM LIABILITIES: | ||
Convertible senior notes, net | 570,332 | |
Warranty obligations | 130,614 | 107,451 |
Deferred revenues | 109,439 | 89,982 |
Deferred tax liabilities, net | 5,195 | 4,461 |
Operating lease liabilities | 29,442 | 30,213 |
Other long-term liabilities | 18,700 | 14,133 |
Total long-term liabilities | 863,722 | 246,240 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2020 and December 31, 2019; issued: 51,207,310 and 49,081,457 shares as of September 30, 2020 and December 31, 2019, respectively; outstanding: 51,207,310 and 48,898,062 shares as of September 30, 2020 and December 31, 2019, respectively. | 5 | 5 |
Additional paid-in capital | 574,326 | 475,792 |
Accumulated other comprehensive loss | (2,643) | (1,809) |
Retained earnings | 460,349 | 337,682 |
Total stockholders' equity | 1,032,037 | 811,670 |
Total liabilities and stockholders' equity | $ 2,278,296 | $ 1,494,624 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances of trade receivable | $ 6,690 | $ 2,473 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 51,207,310 | 49,081,457 |
Common stock, outstanding shares | 51,207,310 | 48,898,062 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 338,095 | $ 410,556 | $ 1,101,164 | $ 1,007,437 |
Cost of revenues | 230,032 | 271,247 | 750,130 | 671,348 |
Gross profit | 108,063 | 139,309 | 351,034 | 336,089 |
Operating expenses: | ||||
Research and development | 40,817 | 30,747 | 115,610 | 86,451 |
Sales and marketing | 21,924 | 22,026 | 67,113 | 64,325 |
General and administrative | 14,928 | 12,214 | 45,077 | 37,590 |
Other operating expenses (income) | 8,305 | (4,900) | 8,305 | |
Total operating expenses | 77,669 | 73,292 | 222,900 | 196,671 |
Operating income | 30,394 | 66,017 | 128,134 | 139,418 |
Financial expenses (income), net | (15,765) | 17,023 | (10,725) | 22,401 |
Income before income taxes | 46,159 | 48,994 | 138,859 | 117,017 |
Income taxes | 2,408 | 7,270 | 16,192 | 24,405 |
Net income | 43,751 | 41,724 | 122,667 | 92,612 |
Net loss (income) attributable to Non-controlling interests | (97) | 1,159 | ||
Net income attributable to SolarEdge Technologies, Inc. | $ 43,751 | $ 41,627 | $ 122,667 | $ 93,771 |
Net basic earnings per share of common stock attributable to SolarEdge Technologies, Inc. | $ 0.87 | $ 0.86 | $ 2.46 | $ 1.97 |
Net diluted earnings per share of common stock attributable to SolarEdge Technologies, Inc. | $ 0.83 | $ 0.81 | $ 2.33 | $ 1.87 |
Weighted average number of shares used in computing net basic earnings per share of common stock | 50,529,691 | 48,195,020 | 49,842,399 | 47,637,023 |
Weighted average number of shares used in computing net diluted earnings per share of common stock | 53,144,188 | 51,081,594 | 52,623,675 | 49,935,638 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 43,751 | $ 41,724 | $ 122,667 | $ 92,612 |
Available-for-sale securities: | ||||
Changes in unrealized gains (losses), net of tax | (210) | 17 | 556 | 872 |
Reclassification adjustments for losses included in net income | 91 | |||
Net change | (210) | 17 | 556 | 963 |
Cash flow hedges: | ||||
Changes in unrealized gains, net of tax | 85 | 966 | ||
Reclassification adjustments for gains included in net income | (531) | (966) | ||
Net change | (446) | |||
Foreign currency translation adjustments, net | 1,455 | (2,478) | (1,390) | (3,795) |
Total other comprehensive income (loss) | 799 | (2,461) | (834) | (2,832) |
Comprehensive income | 44,550 | 39,263 | 121,833 | 89,780 |
Comprehensive loss attributable to Non-controlling interests | 286 | 590 | ||
Comprehensive income attributable to SolarEdge Technologies, Inc. | $ 44,550 | $ 39,549 | $ 121,833 | $ 90,370 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional paid in capital [Member] | Accumulated other comprehensive loss [Member] | Retained earnings [Member] | Total | Non-controlling interests [Member] | Stockholders Equity | |
Balance at Dec. 31, 2018 | $ 5 | $ 371,794 | $ (524) | $ 191,133 | $ 562,408 | $ 8,318 | $ 570,726 | |
Balance (in shares) at Dec. 31, 2018 | 46,052,802 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | [1] | 309 | 309 | 309 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 254,515 | |||||||
Equity based compensation expenses to employees and nonemployee | 9,704 | 9,704 | 9,704 | |||||
Issuance of Common stock upon business combination | [1] | 34,601 | 34,601 | 34,601 | ||||
Issuance of Common stock upon business combination, shares | 1,194,046 | |||||||
Non-controlling interests related to business combination | 67,734 | 67,734 | ||||||
Change in non-controlling interests | 977 | 977 | (2,964) | (1,987) | ||||
Other comprehensive income (loss) adjustments | (696) | (696) | (849) | (1,545) | ||||
Net income | 19,016 | 19,016 | (1,041) | 17,975 | ||||
Balance at Mar. 31, 2019 | $ 5 | 417,385 | (1,220) | 210,149 | 626,319 | 71,198 | 697,517 | |
Balance (in shares) at Mar. 31, 2019 | 47,501,363 | |||||||
Balance at Dec. 31, 2018 | $ 5 | 371,794 | (524) | 191,133 | 562,408 | 8,318 | 570,726 | |
Balance (in shares) at Dec. 31, 2018 | 46,052,802 | |||||||
Change in non-controlling interests | 67,089 | |||||||
Net income | 93,771 | |||||||
Balance at Sep. 30, 2019 | $ 5 | 450,459 | (3,356) | 284,904 | 732,012 | 5,176 | 737,188 | |
Balance (in shares) at Sep. 30, 2019 | 48,576,288 | |||||||
Balance at Mar. 31, 2019 | $ 5 | 417,385 | (1,220) | 210,149 | 626,319 | 71,198 | 697,517 | |
Balance (in shares) at Mar. 31, 2019 | 47,501,363 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | 3,455 | 3,455 | 3,455 | |||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 466,062 | |||||||
Equity based compensation expenses to employees and nonemployee | 11,372 | 11,372 | 11,372 | |||||
Change in non-controlling interests | (528) | (528) | (65,551) | (66,079) | ||||
Other comprehensive income (loss) adjustments | 325 | 325 | 545 | 870 | ||||
Net income | 33,128 | 33,128 | (215) | 32,913 | ||||
Balance at Jun. 30, 2019 | $ 5 | 431,684 | (895) | 243,277 | 674,071 | 5,977 | 680,048 | |
Balance (in shares) at Jun. 30, 2019 | 47,967,425 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | [1] | 1,176 | 1,176 | 1,176 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 608,863 | |||||||
Equity based compensation expenses to employees and nonemployee | 17,609 | 17,609 | 17,609 | |||||
Change in non-controlling interests | (10) | (10) | (612) | (622) | ||||
Other comprehensive income (loss) adjustments | (2,461) | (2,461) | (286) | (2,747) | ||||
Net income | 41,627 | 41,627 | 97 | 41,724 | ||||
Balance at Sep. 30, 2019 | $ 5 | 450,459 | (3,356) | 284,904 | 732,012 | 5,176 | 737,188 | |
Balance (in shares) at Sep. 30, 2019 | 48,576,288 | |||||||
Balance at Dec. 31, 2019 | $ 5 | 475,792 | (1,809) | 337,682 | 811,670 | 811,670 | ||
Balance (in shares) at Dec. 31, 2019 | 48,898,062 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | [1] | 3,308 | 3,308 | 3,308 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 701,431 | |||||||
Equity based compensation expenses to employees and nonemployee | 12,773 | 12,773 | 12,773 | |||||
Other comprehensive income (loss) adjustments | (3,581) | (3,581) | (3,581) | |||||
Net income | 42,248 | 42,248 | 42,248 | |||||
Balance at Mar. 31, 2020 | $ 5 | 491,873 | (5,390) | 379,930 | 866,418 | 866,418 | ||
Balance (in shares) at Mar. 31, 2020 | 49,599,493 | |||||||
Balance at Dec. 31, 2019 | $ 5 | 475,792 | (1,809) | 337,682 | 811,670 | 811,670 | ||
Balance (in shares) at Dec. 31, 2019 | 48,898,062 | |||||||
Change in non-controlling interests | ||||||||
Net income | 122,667 | |||||||
Balance at Sep. 30, 2020 | $ 5 | 574,326 | (2,643) | 460,349 | 1,032,037 | 1,032,037 | ||
Balance (in shares) at Sep. 30, 2020 | 51,207,310 | |||||||
Balance at Mar. 31, 2020 | $ 5 | 491,873 | (5,390) | 379,930 | 866,418 | 866,418 | ||
Balance (in shares) at Mar. 31, 2020 | 49,599,493 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | [1] | 5,806 | 5,806 | 5,806 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 476,258 | |||||||
Equity based compensation expenses to employees and nonemployee | 13,961 | 13,961 | 13,961 | |||||
Other comprehensive income (loss) adjustments | 1,948 | 1,948 | 1,948 | |||||
Net income | 36,668 | 36,668 | 36,668 | |||||
Balance at Jun. 30, 2020 | $ 5 | 511,640 | (3,442) | 416,598 | 924,801 | 924,801 | ||
Balance (in shares) at Jun. 30, 2020 | 50,075,751 | |||||||
Issuance of Common Stock upon exercise of employee and nonemployees stock-based awards | [1] | 10,091 | 10,091 | 10,091 | ||||
Issuance of Common Stock upon exercise of employee and non-employee stock options, shares | 1,131,559 | |||||||
Equity based compensation expenses to employees and nonemployee | 16,259 | 16,259 | 16,259 | |||||
Equity component of convertible senior notes, net | 36,336 | 36,336 | 36,336 | |||||
Other comprehensive income (loss) adjustments | 799 | 799 | 799 | |||||
Net income | 43,751 | 43,751 | 43,751 | |||||
Balance at Sep. 30, 2020 | $ 5 | $ 574,326 | $ (2,643) | $ 460,349 | $ 1,032,037 | $ 1,032,037 | ||
Balance (in shares) at Sep. 30, 2020 | 51,207,310 | |||||||
[1] | Represents an amount less than $1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows provided by operating activities: | ||
Net income | $ 122,667 | $ 92,612 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 16,376 | 12,532 |
Amortization of intangible assets | 7,081 | 7,514 |
Amortization of debt discount and debt issuance costs | 168 | |
Amortization of premium and accretion of discount on available-for-sale marketable securities, net | 602 | |
Stock-based compensation expenses | 42,993 | 38,685 |
Deferred income tax benefit, net | (5,263) | (4,923) |
Other adjustments, net | 224 | 657 |
Changes in assets and liabilities: | ||
Inventories, net | (121,999) | 15,746 |
Prepaid expenses and other assets | 37,871 | (19,795) |
Trade receivables, net | 118,044 | (114,572) |
Operating lease right-of-use assets and liabilities, net and effect of exchange rate differences | (459) | 2,138 |
Trade payables, net | (35,499) | 21,301 |
Employees and payroll accruals | 3,132 | 15,329 |
Warranty obligations | 23,155 | 49,633 |
Deferred revenues and customers advances | (24,283) | 19,516 |
Other liabilities | 10,619 | 39,561 |
Net cash provided by operating activities | 195,429 | 175,934 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of available-for-sale marketable securities | 116,419 | 119,570 |
Purchase of property, plant and equipment | (90,553) | (39,679) |
Investment in available-for-sale marketable securities | (36,781) | (103,711) |
Withdrawal from (investment in) restricted bank deposits | 25,538 | (243) |
Business combination, net of cash acquired | (38,435) | |
Withdrawal from (investment in) bank deposits | (14,667) | 4,101 |
Other investing activities | 743 | |
Net cash provided by (used in) in investing activities | 699 | (58,397) |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible senior notes, net | 618,269 | |
Repayment of bank loans | (15,194) | (5,142) |
Proceeds from bank loans | 15,185 | 232 |
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards | 19,205 | 4,940 |
Change in non-controlling interests | (67,089) | |
Other financing activities | (152) | (1,248) |
Net cash provided by (used in) financing activities | 637,313 | (68,307) |
Increase in cash and cash equivalents | 833,441 | 49,230 |
Cash and cash equivalents at the beginning of the period | 223,901 | 187,764 |
Effect of exchange rate differences on cash and cash equivalents | (9,233) | 10,348 |
Cash and cash equivalents at the end of the period | 1,048,109 | 247,342 |
Supplemental disclosure of non-cash activities: | ||
Purchase of property, plant and equipment | 10,438 | |
Operating lease, right of use asset | $ 796 | $ 36,174 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. SolarEdge Technologies, Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter The Company and its subsidiaries sell their intelligent inverter solution products worldwide through large distributors and electrical equipment wholesalers to smaller solar installers as, well as directly to large solar installers and engineering, procurement and construction firms (“EPCs”). The Company has expanded its activity to other areas of smart energy technology through acquisitions. The Company now offers energy solutions which include lithium-ion cells, batteries and energy storage systems (“Energy Storage”), electric vehicle, or EV components and charging capabilities (“e-Mobility”), uninterrupted power supply solutions (“UPS”), as well as the manufacture of automated machines for industries (“Automation Machines”). b. Recent accounting pronouncements not yet adopted: In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from stockholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or a modified retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements. F - 12 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 1:- GENERAL (Cont.) c. Recently issued and adopted pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For available-for-sale (“AFS”) debt securities with unrealized losses, the standard eliminates the concept of other-than-temporary impairments and requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard limits the amount of credit losses to be recognized for AFS debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The Company adopted Topic 326 effective January 1, 2020, based on the composition of the Company’s trade receivables, investment portfolio and other financial assets, current economic conditions and historical credit loss activity. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. The condensed consolidated financial statements for the nine months ended September 30, 2020 are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy (see Note 7). d. Basis of Presentation: The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2019, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2020, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for ASC 815 - Derivatives and Hedging (see Note 6), the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (see Note 7) and ASC 470-20 "Debt with Conversion and Other Options" (see Note 8). e. Concentrations of supply risks: The Company depends on two contract manufacturers and several limited or single source component suppliers. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs. These two contract manufacturers collectively accounted for 47.4% and 42.3% of the Company’s trade payables as of September 30, 2020 and December 31, 2019, respectively. F - 13 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 1:- GENERAL (Cont.) In September 2020 the Company has commenced the production ramp up of its manufacturing facility in the North of Israel, “Sella 1”. The Company expects ramp up to continue until the second quarter of 2021. f. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. The duration, scope and effects of the ongoing COVID-19 pandemic, government and other third party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time in response to this evolving situation. Such changes could result in future impairments of goodwill, intangibles, long-lived assets, inventories, incremental credit losses on receivables and AFS debt securities, or an increase in the Company’s insurance liabilities as of the time of a relevant measurement event. g. Certain prior period amounts have been reclassified to conform to the current period presentation. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 2:- INVENTORIES September 30, 2020 December 31, 2019 Raw materials $ 116,339 $ 64,714 Work in process 22,536 20,752 Finished goods 158,152 85,332 $ 297,027 $ 170,798 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | F - 14 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 3:- MARKETABLE SECURITIES The following table summarizes the AFS marketable debt securities as of September 30, 2020: Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS – matures within one year: Corporate bonds $ 108,306 $ 878 $ (11 ) $ 109,173 Governmental bonds 1,398 14 - 1,412 109,704 892 (11 ) 110,585 AFS – matures after one year: Corporate bonds 20,822 184 (3 ) 21,003 Total $ 130,526 $ 1,076 $ (14 ) $ 131,588 The following table summarizes the AFS marketable debt securities as of December 31, 2019: Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS – matures within one year: Corporate bonds $ 91,677 $ 196 $ (28 ) $ 91,845 AFS – matures after one year: Corporate bonds 117,692 336 (250 ) 117,778 Governmental bonds 1,398 - - 1,398 119,090 336 (250 ) 119,176 Total $ 210,767 $ 532 $ (278 ) $ 211,021 As of September 30, 2020, the Company did not record an allowance for credit losses for its AFS marketable debt securities. |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | NOTE 4:- WARRANTY OBLIGATIONS Changes in the Company’s product warranty obligations for the nine months ended September 30, 2020 and 2019 were as follows: Nine months ended September 30, 2020 2019 Balance, at beginning of period $ 172,563 $ 121,826 Additions and adjustments to cost of revenues 74,465 79,791 Usage and current warranty expenses (51,334 ) (30,263 ) Balance, at end of period 195,694 171,354 Less current portion (65,080 ) (45,887 ) Long-term portion $ 130,614 $ 125,467 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5:- FAIR VALUE MEASUREMENTS In accordance with ASC 820, the Company measures its cash equivalents, foreign currency derivative contracts, and marketable securities, at fair value using the market approach valuation technique. Cash equivalents and marketable securities are classified within Level 1 or Level 2 based on whether these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within the Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market observable data of similar instruments. The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2020 and December 31, 2019, by level within the fair value hierarchy: Fair value measurements as of Fair Value September 30, December 31, Description Hierarchy 2020 2019 Assets: Cash equivalents: Money market mutual funds Level 1 $ 721,088 $ 527 Derivative instruments asset: Options and forward contracts not designated as hedging instruments Level 2 $ 780 $ - Short-term marketable securities: Corporate bonds Level 2 $ 109,173 $ 91,845 Governmental bonds Level 2 $ 1,412 $ - Long-term marketable securities: Corporate bonds Level 2 $ 21,003 $ 117,778 Governmental bonds Level 2 $ - $ 1,398 Liabilities: Derivative instruments liability: Options and forward contracts not designated as hedging instruments Level 2 $ (1,119 ) $ - |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 6:- DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company accounts for derivatives and hedging based on ASC 815 (“Derivatives and Hedging”). ASC 815 requires the Company to recognize all derivatives on the balance sheet 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 and further, on the type of hedging relationship. To protect against the increase in value of forecasted foreign currency cash flows resulting from salary denominated in the Israeli currency, the New Israeli Shekels (“NIS”), during the nine months ended September 30, 2020, the Company instituted a foreign currency cash flow hedging program whereby portions of the anticipated payroll denominated in NIS for a period of one to six months with hedging contracts. Accordingly, when the dollar strengthens against the NIS, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges. As of September 30, 2020, the Company had no derivative instruments that were designated as cash flow hedges. The Company also entered into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the U.S. dollar. These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income, as a financial expense (income), net. As of September 30, 2020, the Company entered into forward contracts to sell Australian dollars (“AUD”) for U.S. dollars in the amount of AUD 7.5 million. As of September 30, 2020, the Company entered into put and call options to sell Euro ("EUR") for U.S. dollars in the amount of EUR 45 million. As of September 30, 2020, the Company entered into put and call options to sell U.S. dollars for South Korean Won in the amount of USD 48.6 million. The fair value of derivative assets as of September 30, 2020, was $780, which was recorded in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The fair value of derivative liabilities as of September 30, 2020, was $1,119, which was recorded in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. As of December 31, 2019 and for the year then ended, the Company had no derivative instruments (see Note 5). For the three and nine months ended September 30, 2020, the Company recorded a loss in the amount of $1,450 and $959, respectively, in “financial income, net” related to the derivative assets not designated as hedging instruments. F - 18 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 6:- DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Cont.) The following table provides details about reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statements of Income Three months ended Nine months ended September 30, 2020 September 30, 2020 2020 2019 2020 2019 Unrealized gains on cash flow hedges, net $ 90 $ - $ 189 $ - Cost of revenues 353 - 623 - Research and development 75 - 136 - Sales and marketing 87 - 153 - General and administrative 605 - 1,101 - Total, before income taxes (74 ) - (135 ) - Income tax expense $ 531 $ - $ 966 $ - Total, net of income taxes |
CREDIT LOSSES
CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
CREDIT LOSSES | NOTE 7:- CREDIT LOSSES Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, prospectively. This ASU replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. As stated above, the Company did not record a noncash cumulative effect adjustment on the opening consolidated balance sheet as of January 1, 2020, due to immateriality. The Company is exposed to credit losses primarily through sales of products. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances, the financial condition of customers and the Company’s historical experience with similar customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted as of September 30, 2020. Estimates are used to determine the allowance. The allowance is based on assessment of anticipated payment and other historical, current and future information that is reasonably available. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected: Nine months ended September 30, 2020 Balance, at beginning of period $ 2,473 Provision for expected credit losses 4,595 Amounts written off charged against the allowance and others (378 ) Balance, at end of period $ 6,690 |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES | NOTE 8:- CONVERTIBLE SENIOR NOTES On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture. Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock. In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes, in multiples of $1,000 principal amount, at a repurchase price of 100% of the principal amount of the Notes, plus any accrued and unpaid special interest, if any, to, but excluding, the repurchase date. If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes may be increased. The Company accounts for its Notes in accordance with ASC 470-20 "Debt with Conversion and Other Options". The Company separately accounts for the liability and equity components of convertible debt instruments. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded in additional paid-in capital. Debt discount is amortized as additional non-cash interest expense over the expected life of the debt using the effective interest rate method. In accounting for the issuance costs related to the Notes, the issuance costs incurred were allocated between the liability and equity components based on their relative values. The Company’s Notes are included in the calculation of diluted EPS if the assumed conversion into common shares is dilutive, using the “if-converted” method. This involves adding back the periodic interest expense net of tax associated with the Notes to the numerator and by adding the shares that would be issued in an assumed conversion (regardless of whether the conversion option is in or out of the money) to the denominator for the purposes of calculating diluted EPS, unless the Notes are antidilutive (See Note 11). F - 21 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 8:- CONVERTIBLE SENIOR NOTES (Cont.) The Convertible Senior Notes consisted of the following as of September 30, 2020: September 30, 2020 Liability: Principal $ 632,500 Unamortized debt discount (48,703 ) Unamortized issuance costs (13,465 ) Net carrying amount $ 570,332 Equity component: Amount allocated to conversion option $ 48,834 Deferred taxes liability, net (11,368 ) Allocated issuance costs (1,130 ) Equity component, net $ 36,336 As of September 30, 2020, the debt discount and debt issuance costs of the Notes will be amortized over the remaining period of approximately 5 years. The annual effective interest rate of the liability component is 2.10% for the Notes which remains unchanged from the Notes issuance date. The following table presents the total amount of interest expenses recognized related to the Notes for the three and nine months ended September 30, 2020: September 30, 2020 Amortization of debt discount $ 131 Amortization of debt issuance costs 37 Total interest expenses $ 168 Total initial issuance costs of $14,632 related to the Notes were allocated between the liability and equity components in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the Notes using the effective interest rate method. The issuance costs attributable to the equity component were netted against the respective equity component in additional paid-in capital. The Company initially allocated issuance costs of $13,502 and $1,130 to the liability and equity components, respectively. As of September 30, 2020, the if-converted value of the Notes did not exceed the principal amount. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 9:- COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of September 30, 2020, contingent liabilities exist regarding guarantees in the amounts of $18,643, $2,176 and $240 in respect of bank loans, office rent lease agreements and other transactions, respectively. b. Contractual purchase obligations: The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be cancelled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs. As of September 30, 2020, the Company had non-cancellable purchase obligations totaling approximately $326,661 out of which the Company already recorded a provision for loss in the amount of $3,118. As of September 30, 2020, the Company had off-balance sheet contractual obligations for capital expenditures totaling approximately $114,526. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing. c. Legal claims: From time to time, the Company may be 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. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. In September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW - 27.6kW inverters infringe two of the plaintiff’s patents. In its complaint, SMA requests inter alia an injunction and a determination for a claim for damages for sales in Germany. Plaintiff also asserted a value in dispute of EUR 5.5 million (approximately $6,450) for both patents. The Company challenged the validity of both patents. With respect to one of the claims, in October 2020, the German Patent Court rendered the SMA patent invalid. With respect to the other claim, in November 2019, the first instance court stayed the infringement proceedings since it considered it to be highly likely that the second SMA patent would also be rendered invalid. The Company believes that it has meritorious defenses to the claims asserted and intends to vigorously defend against the remaining lawsuit. F - 23 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 9:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) In May 2019, the Company was served with three lawsuits by Huawei Technologies Co., Ltd., a Chinese entity (“Huawei”), against the Company's two Chinese subsidiaries and its equipment manufacturer in China. The lawsuits, filed in the Guangzhou intellectual property court, allege infringement of three patents and ask for an injunction of manufacture, use, sale and offer for sale, and damage awards of Chinese yuan (“CNY”) 30 million (approximately $4,250). A first-instance judgment was issued on August 7, 2020 ordering the Company to pay damages in the amount of approximately CNY 10.5 million (approximately $1,550), including court fees, with respect of one of the patents, which was recorded in general and administrative expenses. The Company has filed an appeal with the Supreme People’s Court of China. Following the receipt of the lawsuits, the Company filed three lawsuits in China against Huawei for unauthorized use of patented technology of the Company. These lawsuits are still in process and judgements have not been rendered. The Company believes that it has meritorious defenses to the claims asserted by Huawei and the judgement of the first instance court and intends to vigorously defend against these lawsuits. In August 2019, the Company was served with a lawsuit by certain former shareholders of S.M.R.E S.p.A (“SMRE”), against its Italian subsidiary that purchased the shares of SMRE in the tender offer which followed the SMRE Acquisition. The shareholders who tendered their shares are asking for the difference between EUR 6 per share, which is the amount they tendered their shares, and EUR 6.77 per share, for a total award of EUR 2.7 million (approximately $3,150). The Company believes it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit. In December 2019, the Company received a lawsuit filed by a former consultant of the Company and its Israeli subsidiary in the amount of NIS 25.5 million (approximately $7,400) claiming damages caused relating to a terminated consulting agreement and stock options therein. The Company believes it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit. As of September 30, 2020, accrued amounts for legal claims of $1,709, were recorded in accrued expenses and other current liabilities. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 10:- STOCKHOLDERS’ EQUITY a. Common Stock: Number of shares Authorized as of Issued as of Outstanding as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 51,207,310 49,081,457 51,207,310 48,898,062 b. Stock Incentive plans: The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. F - 24 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 10:- STOCKHOLDERS’ EQUITY (Cont.) The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers, and nonemployees of the Company and its Subsidiaries. As of September 30, 2020, a total of 12,828,270 shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”). The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan, commencing on January 1st of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that the Company’s board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31st. The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000. As of September 30, 2020, an aggregate of 8,627,031 shares of common stock are still available for future grant under the 2015 Plan. A summary of the activity in the stock options granted to employees and members of the board of directors for the nine months ended September 30, 2020 and related information are as follows: Number of Options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic Value Outstanding as of December 31, 2019 2,112,009 15.44 3.58 168,229 Granted 59,558 101.81 Exercised (1,434,129 ) 10.93 Outstanding as of September 30, 2020 737,438 31.18 5.79 152,776 Vested and expected to vest as of September 30, 2020 728,547 31.01 6.85 151,055 Exercisable as of September 30, 2020 497,011 23.48 6.32 106,792 The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period. The total intrinsic value of options exercised during the nine months ended September 30, 2020 was $239,397. The weighted average grant date fair values of options granted to employees and executive directors during the nine months ended September 30, 2020 was $53.65. F - 25 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 10:- STOCKHOLDERS’ EQUITY (Cont.) A summary of the activity in the RSUs granted to employees and directors for the nine months ended September 30, 2020 is as follows: Number of RSUs Weighted average grant date fair value Unvested as of December 31, 2019 2,742,589 52.77 Granted 606,666 180.66 Vested (807,986 ) 43.34 Forfeited (166,461 ) 65.30 Unvested as of September 30, 2020 2,374,808 87.78 c. Employee Stock Purchase Plan (“ESPP”): The Company adopted an ESPP. As of September 30, 2020, a total of 2,687,451 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero. The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months’ plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date. As of September 30, 2020, 578,778 common stock shares had been purchased under the ESPP. As of September 30, 2020, 2,108,673 common stock shares were available for future issuance under the ESPP. In accordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost. F - 26 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 10:- STOCKHOLDERS’ EQUITY (Cont.) d. Stock-based compensation expense for employees and non-employees: The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employee consultants and ESPP in the condensed consolidated statement of income for the three and nine months ended September 30, 2020 and 2019, as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cost of revenues $ 2,730 $ 1,691 $ 7,362 $ 4,696 Research and development 6,904 4,269 18,129 11,935 Selling and marketing 4,066 2,779 10,703 7,905 General and administrative 2,559 2,628 6,799 7,907 Other operating expenses - 6,242 - 6,242 Total stock-based compensation expense $ 16,259 $ 17,609 $ 42,993 $ 38,685 As of September 30, 2020, there were total unrecognized compensation expenses in the amount of $207,529 related to non‑vested equity‑based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from October 1, 2020 through October 31, 2024. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 11:- EARNINGS PER SHARE Basic net Earnings Per Share (“EPS”) is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period. Diluted net EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, and the Notes due 2025, all in accordance with ASC No. 260, "Earnings Per Share." No shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the three and nine months ended September 30, 2020. 334,096 and 304,725 shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three and nine months ended September 30, 2019, respectively. F - 27 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 11:- EARNINGS PER SHARE (Cont.) The following table presents the computation of basic and diluted net EPS attributable to SolarEdge Technologies, Inc. for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic EPS: Numerator: Net income $ 43,751 $ 41,724 $ 122,667 $ 92,612 Net (income) loss attributable to Non-controlling interests - (97 ) - 1,159 Net income attributable to SolarEdge Technologies, Inc. $ 43,751 $ 41,627 $ 122,667 $ 93,771 Denominator: Shares used in computing net earnings per share of common stock, basic 50,529,691 48,195,020 49,842,399 47,637,023 Diluted EPS: Numerator: Net income $ 43,751 $ 41,724 $ 122,667 $ 92,612 Notes due 2025 (1) 137 - 137 - Net (income) loss attributable to Non-controlling interests - (97 ) - 1,159 Undistributed earnings reallocated to non-vested stockholders - (270 ) - (569 ) Net income attributable to SolarEdge Technologies, Inc. $ 43,888 $ 41,357 $ 122,804 $ 93,202 Denominator: Shares used in computing net earnings per share of common stock, basic 50,529,691 48,195,020 49,842,399 47,637,023 Weighted average effect of dilutive securities: Non-vested PSUs - (334,096 ) - (304,725 ) Notes due 2025 (1) 197,984 3,220,670 65,995 2,603,340 Effect of stock-based awards 2,416,513 - 2,715,281 - Shares used in computing net earnings per share of common stock, diluted 53,144,188 51,081,594 52,623,675 49,935,638 (1) See Note 8 for additional details. |
OTHER OPERATING EXPENSES (INCOM
OTHER OPERATING EXPENSES (INCOME) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSES (INCOME) | NOTE 12:- OTHER OPERATING EXPENSES (INCOME) At the time of the acquisition of Kokam Co., Ltd. (“Kokam”), Kokam had an outstanding claim against it for damages. The claim was settled for an amount of $4,900, which was recognized as an expense in other operating expenses in the consolidated statement of income in the year ended December 31, 2019. In March 2020, the Company was indemnified for the full amount by a major selling shareholder of Kokam. For the nine months ended September 30, 2020, the Company recognized this as other operating income. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
INCOME TAXES | NOTE 13:- INCOME TAXES a. Income taxes are comprised as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current period taxes $ 2,976 $ 10,418 $ 23,717 $ 29,327 Deferred tax income, net and others (568 ) (3,148 ) (7,525 ) (4,922 ) Taxes on income $ 2,408 $ 7,270 $ 16,192 $ 24,405 b. Uncertain tax positions: September 30, 2020 December 31, 2019 Balance at January 1, $ 9,532 $ 8,499 Increases related to current year tax positions 602 1,033 $ 10,134 $ 9,532 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 14:- SEGMENT INFORMATION Following the completion of three acquisitions during 2018 and 2019, the Company has changed its segments measurement, beginning in 2019. The purpose of the new measurement is to provide the Company’s chief operating decision maker (“CODM”) better information to assess segment performance and to make resource allocation decisions. The Company now operates in five different operating segments: Solar, Critical Power (formerly known as UPS), Energy Storage, e-Mobility and Automation Machines. The Company's Chief Executive Officer is the CODM who makes resource allocation decisions and assesses performance based on the financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the operating segments. Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization, stock based compensation expenses and certain other items. The Company manages its assets on a group basis, not by segments, as many of its assets are shared or commingled. The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment. F - 29 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 14:- SEGMENT INFORMATION (cont.) The Company identified one operating segment as reportable – the Solar segment. The other operating segments are insignificant individually and in the aggregate and therefore their results are presented together under “All other”. The Solar segment includes the design, development, manufacture, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level. The solution consists mainly of the Company’s power optimizers, inverters and cloud-based monitoring platform. The “All other” category includes the design, development, manufacturing and sales of UPS products, energy storage products, e-Mobility products and automated machines. Intersegment sales are a source of revenue for one of the operating segments included in the “All other” category. The Company accounts for intersegment sales as if the sales were to third parties, that is, at current market prices. The following table presents information on reportable segments profit (loss) for the periods ended September 30, 2020: Three months ended September 30, 2020 Nine months ended September 30, 2020 Solar All other Solar All other Revenues $ 312,480 $ 25,615 $ 1,030,175 $ 71,476 Cost of revenues 203,590 21,283 673,751 61,974 Gross profit 108,890 4,332 356,424 9,502 Research and development 26,466 7,421 79,923 17,481 Sales and marketing 15,160 2,328 48,803 6,650 General and administrative 10,593 1,210 28,467 9,228 Segments profit (loss) $ 56,671 $ (6,627 ) $ 199,231 $ (23,857 ) The following table presents information on reportable segments profit (loss) for the periods ended September 30, 2019: Three months ended September 30, 2019 Nine months ended September 30, 2019 Solar All other Solar All other Revenues $ 387,772 $ 22,784 $ 947,586 $ 59,851 Cost of revenues 250,493 16,058 610,335 47,927 Gross profit 137,279 6,726 337,251 11,924 Research and development 23,707 2,754 66,219 8,235 Sales and marketing 16,551 2,256 48,900 6,273 General and administrative 7,473 2,045 21,542 6,546 Segments profit (loss) $ 89,548 $ (329 ) $ 200,590 $ (9,130 ) F - 30 SOLAREDGE TECHNOLOGIES, INC. AND ITS SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share and per share data) NOTE 14:- SEGMENT INFORMATION (cont.) The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Solar segment revenues $ 312,480 $ 387,772 $ 1,030,175 $ 947,586 All other segment revenues 25,615 22,784 71,476 59,851 Adjustment of intersegment revenues - - (487 ) - Consolidated revenues $ 338,095 $ 410,556 $ 1,101,164 $ 1,007,437 The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Solar segment profit $ 56,671 $ 89,548 $ 199,231 $ 200,590 All other segment loss (6,627 ) (329 ) (23,857 ) (9,130 ) Segments operating profit 50,044 89,219 175,374 191,460 Amounts not allocated to segments: Stock based compensation expenses (16,259 ) (11,367 ) (42,993 ) (32,443 ) Amortization (2,833 ) (3,409 ) (8,169 ) (8,671 ) Legal settlement (see Note 11) - - 4,900 - Cost of products adjustments - (107 ) (313 ) (1,108 ) Other unallocated expenses (558 ) (14 ) (558 ) (1,515 ) Non recurring expenses - (8,305 ) - (8,305 ) Adjustments: Intersegment profit - - (107 ) - Consolidated operating income $ 30,394 $ 66,017 $ 128,134 $ 139,418 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | September 30, 2020 December 31, 2019 Raw materials $ 116,339 $ 64,714 Work in process 22,536 20,752 Finished goods 158,152 85,332 $ 297,027 $ 170,798 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
Schedule of AFS Marketable Debt Securities | The following table summarizes the AFS marketable debt securities as of September 30, 2020: Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS – matures within one year: Corporate bonds $ 108,306 $ 878 $ (11 ) $ 109,173 Governmental bonds 1,398 14 - 1,412 109,704 892 (11 ) 110,585 AFS – matures after one year: Corporate bonds 20,822 184 (3 ) 21,003 Total $ 130,526 $ 1,076 $ (14 ) $ 131,588 The following table summarizes the AFS marketable debt securities as of December 31, 2019: Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS – matures within one year: Corporate bonds $ 91,677 $ 196 $ (28 ) $ 91,845 AFS – matures after one year: Corporate bonds 117,692 336 (250 ) 117,778 Governmental bonds 1,398 - - 1,398 119,090 336 (250 ) 119,176 Total $ 210,767 $ 532 $ (278 ) $ 211,021 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Warranty Obligations | Changes in the Company’s product warranty obligations for the nine months ended September 30, 2020 and 2019 were as follows: Nine months ended September 30, 2020 2019 Balance, at beginning of period $ 172,563 $ 121,826 Additions and adjustments to cost of revenues 74,465 79,791 Usage and current warranty expenses (51,334 ) (30,263 ) Balance, at end of period 195,694 171,354 Less current portion (65,080 ) (45,887 ) Long-term portion $ 130,614 $ 125,467 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2020 and December 31, 2019, by level within the fair value hierarchy: Fair value measurements as of Fair Value September 30, December 31, Description Hierarchy 2020 2019 Assets: Cash equivalents: Money market mutual funds Level 1 $ 721,088 $ 527 Derivative instruments asset: Options and forward contracts not designated as hedging instruments Level 2 $ 780 $ - Short-term marketable securities: Corporate bonds Level 2 $ 109,173 $ 91,845 Governmental bonds Level 2 $ 1,412 $ - Long-term marketable securities: Corporate bonds Level 2 $ 21,003 $ 117,778 Governmental bonds Level 2 $ - $ 1,398 Liabilities: Derivative instruments liability: Options and forward contracts not designated as hedging instruments Level 2 $ (1,119 ) $ - |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Reclassifications of Other Comprehensive Income Loss | The following table provides details about reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statements of Income Three months ended Nine months ended September 30, 2020 September 30, 2020 2020 2019 2020 2019 Unrealized gains on cash flow hedges, net $ 90 $ - $ 189 $ - Cost of revenues 353 - 623 - Research and development 75 - 136 - Sales and marketing 87 - 153 - General and administrative 605 - 1,101 - Total, before income taxes (74 ) - (135 ) - Income tax expense $ 531 $ - $ 966 $ - Total, net of income taxes |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses | The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected: Nine months ended September 30, 2020 Balance, at beginning of period $ 2,473 Provision for expected credit losses 4,595 Amounts written off charged against the allowance and others (378 ) Balance, at end of period $ 6,690 |
CONVERTIBLE SENIOR NOTES (Table
CONVERTIBLE SENIOR NOTES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The Convertible Senior Notes consisted of the following as of September 30, 2020: September 30, 2020 Liability: Principal $ 632,500 Unamortized debt discount (48,703 ) Unamortized issuance costs (13,465 ) Net carrying amount $ 570,332 Equity component: Amount allocated to conversion option $ 48,834 Deferred taxes liability, net (11,368 ) Allocated issuance costs (1,130 ) Equity component, net $ 36,336 |
Schedule of Interest Expense Recognized | The following table presents the total amount of interest expenses recognized related to the Notes for the three and nine months ended September 30, 2020: September 30, 2020 Amortization of debt discount $ 131 Amortization of debt issuance costs 37 Total interest expenses $ 168 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Composition of Common Stock Capital | a. Common Stock: Number of shares Authorized as of Issued as of Outstanding as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 51,207,310 49,081,457 51,207,310 48,898,062 |
Schedule of Stock Option Activity | A summary of the activity in the stock options granted to employees and members of the board of directors for the nine months ended September 30, 2020 and related information are as follows: Number of Options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic Value Outstanding as of December 31, 2019 2,112,009 15.44 3.58 168,229 Granted 59,558 101.81 Exercised (1,434,129 ) 10.93 Outstanding as of September 30, 2020 737,438 31.18 5.79 152,776 Vested and expected to vest as of September 30, 2020 728,547 31.01 6.85 151,055 Exercisable as of September 30, 2020 497,011 23.48 6.32 106,792 |
Schedule of RSU Activity | A summary of the activity in the RSUs granted to employees and directors for the nine months ended September 30, 2020 is as follows: Number of RSUs Weighted average grant date fair value Unvested as of December 31, 2019 2,742,589 52.77 Granted 606,666 180.66 Vested (807,986 ) 43.34 Forfeited (166,461 ) 65.30 Unvested as of September 30, 2020 2,374,808 87.78 |
Schedule of Recognized Stock-Based Compensation Expense | The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employee consultants and ESPP in the condensed consolidated statement of income for the three and nine months ended September 30, 2020 and 2019, as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cost of revenues $ 2,730 $ 1,691 $ 7,362 $ 4,696 Research and development 6,904 4,269 18,129 11,935 Selling and marketing 4,066 2,779 10,703 7,905 General and administrative 2,559 2,628 6,799 7,907 Other operating expenses - 6,242 - 6,242 Total stock-based compensation expense $ 16,259 $ 17,609 $ 42,993 $ 38,685 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share | The following table presents the computation of basic and diluted net EPS attributable to SolarEdge Technologies, Inc. for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic EPS: Numerator: Net income $ 43,751 $ 41,724 $ 122,667 $ 92,612 Net (income) loss attributable to Non-controlling interests - (97 ) - 1,159 Net income attributable to SolarEdge Technologies, Inc. $ 43,751 $ 41,627 $ 122,667 $ 93,771 Denominator: Shares used in computing net earnings per share of common stock, basic 50,529,691 48,195,020 49,842,399 47,637,023 Diluted EPS: Numerator: Net income $ 43,751 $ 41,724 $ 122,667 $ 92,612 Notes due 2025 (1) 137 - 137 - Net (income) loss attributable to Non-controlling interests - (97 ) - 1,159 Undistributed earnings reallocated to non-vested stockholders - (270 ) - (569 ) Net income attributable to SolarEdge Technologies, Inc. $ 43,888 $ 41,357 $ 122,804 $ 93,202 Denominator: Shares used in computing net earnings per share of common stock, basic 50,529,691 48,195,020 49,842,399 47,637,023 Weighted average effect of dilutive securities: Non-vested PSUs - (334,096 ) - (304,725 ) Notes due 2025 (1) 197,984 3,220,670 65,995 2,603,340 Effect of stock-based awards 2,416,513 - 2,715,281 - Shares used in computing net earnings per share of common stock, diluted 53,144,188 51,081,594 52,623,675 49,935,638 (1) See Note 8 for additional details. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes Tables | |
Schedule of Taxes on Income | a. Income taxes are comprised as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current period taxes $ 2,976 $ 10,418 $ 23,717 $ 29,327 Deferred tax income, net and others (568 ) (3,148 ) (7,525 ) (4,922 ) Taxes on income $ 2,408 $ 7,270 $ 16,192 $ 24,405 |
Schedule of Uncertain Tax Positions | b. Uncertain tax positions: September 30, 2020 December 31, 2019 Balance at January 1, $ 9,532 $ 8,499 Increases related to current year tax positions 602 1,033 $ 10,134 $ 9,532 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments and Operating Income | The following table presents information on reportable segments profit (loss) for the periods ended September 30, 2020: Three months ended September 30, 2020 Nine months ended September 30, 2020 Solar All other Solar All other Revenues $ 312,480 $ 25,615 $ 1,030,175 $ 71,476 Cost of revenues 203,590 21,283 673,751 61,974 Gross profit 108,890 4,332 356,424 9,502 Research and development 26,466 7,421 79,923 17,481 Sales and marketing 15,160 2,328 48,803 6,650 General and administrative 10,593 1,210 28,467 9,228 Segments profit (loss) $ 56,671 $ (6,627 ) $ 199,231 $ (23,857 ) The following table presents information on reportable segments profit (loss) for the periods ended September 30, 2019: Three months ended September 30, 2019 Nine months ended September 30, 2019 Solar All other Solar All other Revenues $ 387,772 $ 22,784 $ 947,586 $ 59,851 Cost of revenues 250,493 16,058 610,335 47,927 Gross profit 137,279 6,726 337,251 11,924 Research and development 23,707 2,754 66,219 8,235 Sales and marketing 16,551 2,256 48,900 6,273 General and administrative 7,473 2,045 21,542 6,546 Segments profit (loss) $ 89,548 $ (329 ) $ 200,590 $ (9,130 ) |
Schedule of Reportable Segments Reconciliation to Consolidated Revenues | The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Solar segment revenues $ 312,480 $ 387,772 $ 1,030,175 $ 947,586 All other segment revenues 25,615 22,784 71,476 59,851 Adjustment of intersegment revenues - - (487 ) - Consolidated revenues $ 338,095 $ 410,556 $ 1,101,164 $ 1,007,437 The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Solar segment profit $ 56,671 $ 89,548 $ 199,231 $ 200,590 All other segment loss (6,627 ) (329 ) (23,857 ) (9,130 ) Segments operating profit 50,044 89,219 175,374 191,460 Amounts not allocated to segments: Stock based compensation expenses (16,259 ) (11,367 ) (42,993 ) (32,443 ) Amortization (2,833 ) (3,409 ) (8,169 ) (8,671 ) Legal settlement (see Note 11) - - 4,900 - Cost of products adjustments - (107 ) (313 ) (1,108 ) Other unallocated expenses (558 ) (14 ) (558 ) (1,515 ) Non recurring expenses - (8,305 ) - (8,305 ) Adjustments: Intersegment profit - - (107 ) - Consolidated operating income $ 30,394 $ 66,017 $ 128,134 $ 139,418 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Payable [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Concentration risk (as a percent) | 47.40% | 42.30% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 116,339 | $ 64,714 |
Work in process | 22,536 | 20,752 |
Finished goods | 158,152 | 85,332 |
Inventories, net | $ 297,027 | $ 170,798 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
AFS - matures within one year, Amortized cost | $ 109,704 | |
AFS - matures within one year, Gross unrealized gains | 892 | |
AFS - matures within one yearr, Gross unrealized losses | (11) | |
AFS - matures within one year, Fair value | 110,585 | |
AFS - matures after one year, Amortized cost | $ 119,090 | |
AFS - matures after one year, Gross unrealized gains | 336 | |
AFS - matures after one year, Gross unrealized losses | (250) | |
AFS - matures after one year, Fair value | 119,176 | |
Amortized cost | 130,526 | 210,767 |
Gross unrealized gains | 1,076 | 532 |
Gross unrealized losses | (14) | (278) |
Fair value | 131,588 | 211,021 |
Corporate bonds [Member] | ||
AFS - matures within one year, Amortized cost | 108,306 | 91,677 |
AFS - matures within one year, Gross unrealized gains | 878 | 196 |
AFS - matures within one yearr, Gross unrealized losses | (11) | (28) |
AFS - matures within one year, Fair value | 109,173 | 91,845 |
AFS - matures after one year, Amortized cost | 20,822 | 117,692 |
AFS - matures after one year, Gross unrealized gains | 184 | 336 |
AFS - matures after one year, Gross unrealized losses | (3) | (250) |
AFS - matures after one year, Fair value | 21,003 | 117,778 |
Governmental bonds [Member] | ||
AFS - matures within one year, Amortized cost | 1,398 | |
AFS - matures within one year, Gross unrealized gains | 14 | |
AFS - matures within one yearr, Gross unrealized losses | ||
AFS - matures within one year, Fair value | $ 1,412 | |
AFS - matures after one year, Amortized cost | 1,398 | |
AFS - matures after one year, Gross unrealized gains | ||
AFS - matures after one year, Gross unrealized losses | ||
AFS - matures after one year, Fair value | $ 1,398 |
WARRANTY OBLIGATIONS (Details)
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in the Company's product warranty liability | ||
Balance, at beginning of period | $ 172,563 | $ 121,826 |
Additions and adjustments to cost of revenues | 74,465 | 79,791 |
Usage and current warranty expenses | (51,334) | (30,263) |
Balance, at end of period | 195,694 | 171,354 |
Less current portion | (65,080) | (45,887) |
Long-term portion | $ 130,614 | $ 125,467 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Money Market Mutual Funds [Member] | Level 1 [Member] | ||
Fair value of assets | $ 721,088 | $ 527 |
Derivative instruments asset Options and forward contracts not designated as hedging instruments [Member] | Level 2 [Member] | ||
Fair value of assets | 780 | |
Fair value of liabilities | (1,119) | |
Short-term corporate bonds [Member] | Level 2 [Member] | ||
Fair value of assets | 109,173 | 91,845 |
Short-term governmental bonds [Member] | Level 2 [Member] | ||
Fair value of assets | 1,412 | |
Long-term corporate bonds [Member] | Level 2 [Member] | ||
Fair value of assets | 21,003 | 117,778 |
Long-term governmental bonds [Member] | Level 2 [Member] | ||
Fair value of assets | $ 1,398 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands, € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020AUD ($) | |
Derivative [Line Items] | ||||
Fair value of derivative assets | $ 780 | $ 780 | ||
Loss of financial expenses net | 1,450 | 959 | ||
Fair value of derivative liabilities | 1,119 | 1,119 | ||
Foreign exchange forward contracts [Member] | Australia, Dollars [Member] | ||||
Derivative [Line Items] | ||||
Forward/option contracts | $ 7.5 | |||
Put and Call Options [Member] | Euro [Member] | ||||
Derivative [Line Items] | ||||
Forward/option contracts | € | € 45 | |||
Put and Call Options [Member] | USD [Member] | ||||
Derivative [Line Items] | ||||
Forward/option contracts | $ 48,600 | $ 48,600 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Reclassifications of Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Revenues | $ 230,032 | $ 271,247 | $ 750,130 | $ 671,348 |
Research and development | 40,817 | 30,747 | 115,610 | 86,451 |
Sales and marketing | 21,924 | 22,026 | 67,113 | 64,325 |
General and administrative | 14,928 | 12,214 | 45,077 | 37,590 |
Total, before income taxes | 77,669 | 73,292 | 222,900 | 196,671 |
Income tax expense | 2,408 | 7,270 | 16,192 | 24,405 |
Total, net of income taxes | 43,751 | 41,724 | 122,667 | 92,612 |
Unrealized gains on cash flow hedges, net [Member] | Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of Revenues | 90 | 189 | ||
Research and development | 353 | 623 | ||
Sales and marketing | 75 | 136 | ||
General and administrative | 87 | 153 | ||
Total, before income taxes | 605 | 1,101 | ||
Income tax expense | (74) | (135) | ||
Total, net of income taxes | $ 531 | $ 966 |
CREDIT LOSSES (Schedule of Allo
CREDIT LOSSES (Schedule of Allowance for Credit Losses) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Receivables [Abstract] | |
Balance, at beginning of period | $ 2,473 |
Provision for expected credit losses | 4,595 |
Amounts written off charged against the allowance and others | (378) |
Balance, at end of period | $ 6,690 |
CONVERTIBLE SENIOR NOTES (Narra
CONVERTIBLE SENIOR NOTES (Narrative) (Details) | 1 Months Ended | 9 Months Ended |
Sep. 25, 2020USD ($)d$ / shares | Sep. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Issuance costs | $ 1,130,000 | |
Convertible Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount sold | $ 632,500 | |
Effective interest | 0.00% | 2.10% |
Maturity date | Sep. 15, 2025 | |
Conversion amount | $ 1,000 | |
Conversion days | d | 30 | |
Conversion rate | $ / shares | $ 3.5997 | |
Amount of conversion | $ 1,000 | |
Conversion price | $ / shares | $ 277.80 | |
Amortized period | 5 years | |
Issuance costs | $ 14,632 | |
Allocated Issuance costs | 13,502 | |
Liability and equity components | $ 1,130 |
CONVERTIBLE SENIOR NOTES (Sched
CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Liability: | ||
Principal | $ 632,500 | |
Unamortized debt discount | (48,703) | |
Unamortized issuance costs | (13,465) | |
Net carrying amount | 570,332 | |
Equity component: | ||
Amount allocated to conversion option | 48,834 | |
Deferred taxes liability, net | (11,368) | |
Allocated issuance costs | 1,130 | |
Equity component, net | $ 36,336 |
CONVERTIBLE SENIOR NOTES (Sch_2
CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense Recognized) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Amortization of debt discount | $ 131 |
Amortization of debt issuance costs | 37 |
Total interest expenses | $ 168 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) € / shares in Units, $ in Thousands, € in Millions, ₪ in Millions, ¥ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019USD ($) | Aug. 31, 2019EUR (€)€ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019ILS (₪) | |
Non-cancelable purchase obligations | $ 326,661 | ||||||
Provision for loss | 3,118 | ||||||
Contractual obligations for capital expenditures | 114,526 | ||||||
Lawsuit claims | 4,250 | ||||||
Difference amount of tendered shares for shareholders of SMRE | $ 3,150 | ||||||
Damages Paid | 1,550 | ||||||
Accured amount of legal claims | 1,709 | ||||||
Former Consultant and Israeli Subsidiary [Member] | |||||||
Lawsuit claims | $ 7,400 | ||||||
SMRE [Member] | Minimum [Member] | |||||||
Difference amount per share of tendered shares for shareholders of SMRE | € / shares | € 6 | ||||||
SMRE [Member] | Maximum [Member] | |||||||
Difference amount per share of tendered shares for shareholders of SMRE | € / shares | € 6.77 | ||||||
Euro [Member] | SMRE [Member] | |||||||
Difference amount of tendered shares for shareholders of SMRE | € | € 2.7 | ||||||
RMB [Member] | |||||||
Lawsuit claims | ¥ | ¥ 30 | ||||||
Damages Paid | ¥ | ¥ 10.5 | ||||||
Israel, New Shekels | Former Consultant and Israeli Subsidiary [Member] | |||||||
Lawsuit claims | ₪ | ₪ 25.5 | ||||||
Patents [Member] | |||||||
Value in dispute | 6,450 | ||||||
Patents [Member] | Euro [Member] | |||||||
Value in dispute | € | € 55 | ||||||
Bank loans [Member] | |||||||
Guarantees amount | 18,643 | ||||||
Office Rent Lease Agreements [Member] | |||||||
Guarantees amount | 2,176 | ||||||
Other Transactions [Member] | |||||||
Guarantees amount | $ 240 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 207,529 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value of options exercised | $ | $ 239,397 |
Weighted average grant date fair value of options granted | $ / shares | $ 53.65 |
Maximum [Member] | Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options available for future grant under the plan | 10,000,000 |
2007 Plan, Transferred to 2015 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options available for future grant under the plan | 379,358 |
2015 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options reserved for issuance under the plan | 12,828,270 |
2015 Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual increase percentage | 5.00% |
2015 Plan [Member] | Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options available for future grant under the plan | 8,627,031 |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options reserved for issuance under the plan | 2,687,451 |
Number of options available for future grant under the plan | 2,108,673 |
Maximum number of excess shares authorized | 487,643 |
Number of Common stock purchased | 578,778 |
Maximum percentage of salary | 10.00% |
Maximum amount authorized per person | $ | $ 10 |
Maximum percentage of common stock | 85.00% |
ESPP [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual increase percentage | 1.00% |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Composition of Common Stock Capital) (Details) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Common stock capital | ||
Par value | $ 0.0001 | $ 0.0001 |
Authorized | 125,000,000 | 125,000,000 |
Common stock, issued shares | 51,207,310 | 49,081,457 |
Common stock, outstanding shares | 51,207,310 | 48,898,062 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Number of Options | |
Outstanding as of December 31, 2019 | shares | 2,112,009 |
Granted | shares | 59,558 |
Exercised | shares | (1,434,129) |
Outstanding as of September 30, 2020 | shares | 737,438 |
Vested and expected to vest as of September 30, 2020 | shares | 728,547 |
Exercisable as of September 30, 2020 | shares | 497,011 |
Weighted average exercise price | |
Outstanding as of December 31, 2019 | $ / shares | $ 15.44 |
Granted | $ / shares | 101.81 |
Exercised | $ / shares | 10.93 |
Outstanding as of September 30, 2020 | $ / shares | 31.18 |
Vested and expected to vest as of September 30, 2020 | $ / shares | 31.01 |
Exercisable as of September 30, 2020 | $ / shares | $ 23.48 |
Weighted average remaining contractual term in years | |
Outstanding as of December 31, 2019 | 3 years 6 months 29 days |
Outstanding as of September 30, 2020 | 5 years 9 months 14 days |
Vested and expected to vest as of September 30, 2020 | 6 years 10 months 6 days |
Exercisable as of September 30, 2020 | 6 years 3 months 25 days |
Aggregate intrinsic Value | |
Outstanding as of December 31, 2019 | $ | $ 168,229 |
Outstanding as of September 30, 2020 | $ | 152,776 |
Vested and expected to vest as of September 30, 2020 | $ | 151,055 |
Exercisable as of September 30, 2020 | $ | $ 106,792 |
STOCKHOLDERS' EQUITY (Schedul_3
STOCKHOLDERS' EQUITY (Schedule of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] - Employees and Members of Board of Directors [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of RSUs | |
Unvested as of December 31, 2019 | shares | 2,742,589 |
Granted | shares | 606,666 |
Vested | shares | (807,986) |
Forfeited | shares | (166,461) |
Unvested as of September 30, 2020 | shares | 2,374,808 |
Weighted average grant date fair value | |
Unvested as of December 31, 2019 | $ / shares | $ 52.77 |
Granted | $ / shares | 180.66 |
Vested | $ / shares | 43.34 |
Forfeited | $ / shares | 65.30 |
Unvested as of September 30, 2020 | $ / shares | $ 87.78 |
STOCKHOLDERS' EQUITY (Schedul_4
STOCKHOLDERS' EQUITY (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 16,259 | $ 17,609 | $ 42,993 | $ 38,685 |
Cost of revenues [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2,730 | 1,691 | 7,362 | 4,696 |
Research and development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 6,904 | 4,269 | 18,129 | 11,935 |
Selling and marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 4,066 | 2,779 | 10,703 | 7,905 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2,559 | 2,628 | 6,799 | 7,907 |
Other operating expenses [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 6,242 | $ 6,242 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities | 334,096 | 304,725 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Numerator: | |||||||||
Net income | $ 43,751 | $ 41,724 | $ 122,667 | $ 92,612 | |||||
Net (income) loss attributable to Non-controlling interests | (97) | 1,159 | |||||||
Net income attributable to SolarEdge Technologies, Inc. | $ 43,751 | $ 36,668 | $ 42,248 | $ 41,627 | $ 33,128 | $ 19,016 | $ 122,667 | $ 93,771 | |
Denominator: | |||||||||
Shares used in computing net earnings per share of common stock, basic | 50,529,691 | 48,195,020 | 49,842,399 | 47,637,023 | |||||
Numerator: | |||||||||
Net income | $ 43,751 | $ 41,724 | $ 122,667 | $ 92,612 | |||||
Notes due 2025 | [1] | 137 | 137 | ||||||
Net (income) loss attributable to Non-controlling interests | (97) | 1,159 | |||||||
Undistributed earnings reallocated to non-vested stockholders | (270) | (569) | |||||||
Net income attributable to SolarEdge Technologies, Inc. | $ 43,888 | $ 41,357 | $ 122,804 | $ 93,202 | |||||
Denominator: | |||||||||
Shares used in computing net earnings per share of common stock, basic | 50,529,691 | 48,195,020 | 49,842,399 | 47,637,023 | |||||
Weighted average effect of dilutive securities: | |||||||||
Non-vested PSUs | (334,096) | (304,725) | |||||||
Notes due 2025 | [1] | 197,984 | 3,220,670 | 65,995 | 2,603,340 | ||||
Effect of stock-based awards | 2,416,513 | 2,715,281 | |||||||
Shares used in computing net earnings per share of common stock, diluted | 53,144,188 | 51,081,594 | 52,623,675 | 49,935,638 | |||||
[1] | See Note 8 for additional details. |
OTHER OPERATING EXPENSES (INC_2
OTHER OPERATING EXPENSES (INCOME) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Other Operating Expenses Abstract | |
A settlement of pre-acquisition legal claim against Kokam | $ 4,900 |
INCOME TAXES (Schedule of Taxes
INCOME TAXES (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes Schedule Of Taxes On Income Details | ||||
Current period taxes | $ 2,976 | $ 10,418 | $ 23,717 | $ 29,327 |
Deferred tax income, net and others | (568) | (3,148) | (7,525) | (4,922) |
Taxes on income | $ 2,408 | $ 7,270 | $ 16,192 | $ 24,405 |
INCOME TAXES (Schedule of Uncer
INCOME TAXES (Schedule of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at January 1, | $ 9,532 | $ 8,499 |
Increases related to current year tax positions | 602 | 1,033 |
Closing balance | $ 10,134 | $ 9,532 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 338,095 | $ 410,556 | $ 1,101,164 | $ 1,007,437 |
Cost of revenues | 230,032 | 271,247 | 750,130 | 671,348 |
Gross profit | 108,063 | 139,309 | 351,034 | 336,089 |
Research and development | 40,817 | 30,747 | 115,610 | 86,451 |
Sales and marketing | 21,924 | 22,026 | 67,113 | 64,325 |
General and administrative | 14,928 | 12,214 | 45,077 | 37,590 |
Segments profit (loss) | 43,751 | 41,724 | 122,667 | 92,612 |
Solar segment profit | 56,671 | 89,548 | 199,231 | 200,590 |
All other segment loss | (6,627) | (329) | (23,857) | (9,130) |
Segments operating profit | 50,044 | 89,219 | 175,374 | 191,460 |
Amounts not allocated to segments: | ||||
Stock based compensation expenses | (16,259) | (11,367) | (42,993) | (32,443) |
Amortization | (2,833) | (3,409) | (8,169) | (8,671) |
Legal settlement (see Note 11) | 4,900 | |||
Cost of products adjustments | (107) | (313) | (1,108) | |
Other unallocated expenses | (558) | (14) | (558) | (1,515) |
Non recurring expenses | (8,305) | (8,305) | ||
Adjustments: | ||||
Intersegment profit | (107) | |||
Consolidated operating income | 30,394 | 66,017 | 128,134 | 139,418 |
Solar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 312,480 | 387,772 | 1,030,175 | 947,586 |
Cost of revenues | 203,590 | 250,493 | 673,751 | 610,335 |
Gross profit | 108,890 | 137,279 | 356,424 | 337,251 |
Research and development | 26,466 | 23,707 | 79,923 | 66,219 |
Sales and marketing | 15,160 | 16,551 | 48,803 | 48,900 |
General and administrative | 10,593 | 7,473 | 28,467 | 21,542 |
Segments profit (loss) | 56,671 | 89,548 | 199,231 | 200,590 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25,615 | 22,784 | 71,476 | 59,851 |
Cost of revenues | 21,283 | 16,058 | 61,974 | 47,927 |
Gross profit | 4,332 | 6,726 | 9,502 | 11,924 |
Research and development | 7,421 | 2,754 | 17,481 | 8,235 |
Sales and marketing | 2,328 | 2,256 | 6,650 | 6,273 |
General and administrative | 1,210 | 2,045 | 9,228 | 6,546 |
Segments profit (loss) | $ (6,627) | $ (329) | $ (23,857) | $ (9,130) |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Reportable Segments Reconciliation to Consolidated Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 338,095 | $ 410,556 | $ 1,101,164 | $ 1,007,437 |
Solar Segment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 312,480 | 387,772 | 1,030,175 | 947,586 |
All Other Segment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25,615 | 22,784 | 71,476 | 59,851 |
Adjustment of Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (487) |