Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 01, 2021 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0001419612 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.0001 per share | |
Trading Symbol | SEDG | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Common Stock, Shares Outstanding | 51,976,195 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 685,157 | $ 827,146 |
Short-term bank deposits | 43,626 | 60,096 |
Restricted bank deposits | 2,509 | 2,611 |
Marketable securities | 139,079 | 143,687 |
Trade receivables, net of allowances of $3,576 and $2,886, respectively | 271,713 | 218,706 |
Inventories, net | 340,038 | 331,696 |
Prepaid expenses and other current assets | 102,985 | 135,399 |
Total current assets | 1,585,107 | 1,719,341 |
LONG-TERM ASSETS: | ||
Marketable securities | 294,828 | 147,434 |
Deferred tax assets, net | 17,353 | 11,676 |
Property, plant and equipment, net | 312,214 | 303,408 |
Operating lease right-of-use assets, net | 39,804 | 41,600 |
Intangible assets, net | 64,196 | 67,818 |
Goodwill | 134,620 | 140,479 |
Other long-term assets | 16,473 | 5,353 |
Total long-term assets | 879,488 | 717,768 |
Total assets | 2,464,595 | 2,437,109 |
CURRENT LIABILITIES: | ||
Trade payables, net | 122,063 | 162,051 |
Employees and payroll accruals | 63,929 | 63,738 |
Current maturities of bank loans and accrued interest | 16,215 | 16,894 |
Warranty obligations | 63,443 | 62,614 |
Deferred revenues and customers advances | 21,065 | 24,648 |
Accrued expenses and other current liabilities | 111,011 | 106,154 |
Total current liabilities | 397,726 | 436,099 |
LONG-TERM LIABILITIES: | ||
Convertible senior notes, net | 619,357 | 573,350 |
Warranty obligations | 154,510 | 142,380 |
Deferred revenues | 122,168 | 115,372 |
Deferred tax liabilities, net | 8,593 | |
Finance lease liabilities | 24,918 | 26,173 |
Operating lease liabilities | 32,667 | 35,194 |
Other long-term liabilities | 13,325 | 14,191 |
Total long-term liabilities | 966,945 | 915,253 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of March 31, 2021 and December 31, 2020; issued and outstanding: 51,966,175 and 51,560,936 shares as of March 31, 2021 and December 31, 2020, respectively | 5 | 5 |
Additional paid-in capital | 595,716 | 603,891 |
Accumulated other comprehensive income (loss) | (6,761) | 3,857 |
Retained earnings | 510,964 | 478,004 |
Total stockholders' equity | 1,099,924 | 1,085,757 |
Total liabilities and stockholders' equity | $ 2,464,595 | $ 2,437,109 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowances of trade receivable | $ 3,576 | $ 2,886 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 51,966,175 | 51,560,936 |
Common stock, outstanding shares | 51,966,175 | 51,560,936 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 405,489 | $ 431,218 |
Cost of revenues | 265,415 | 291,210 |
Gross profit | 140,074 | 140,008 |
Operating expenses: | ||
Research and development | 46,977 | 36,695 |
Sales and marketing | 26,911 | 24,253 |
General and administrative | 19,849 | 16,185 |
Other operating expenses (income), net | 2,209 | (4,900) |
Total operating expenses | 95,946 | 72,233 |
Operating income | 44,128 | 67,775 |
Financial expenses, net | 6,097 | 16,605 |
Income before income taxes | 38,031 | 51,170 |
Income taxes | 7,955 | 8,922 |
Net income | $ 30,076 | $ 42,248 |
Net income per share: | ||
Net basic earnings per share of common stock | $ 0.58 | $ 0.86 |
Net diluted earnings per share of common stock | $ 0.55 | $ 0.81 |
Weighted average number of shares used in computing net basic earnings per share of common stock | 51,726,998 | 49,193,240 |
Weighted average number of shares used in computing net diluted earnings per share of common stock | 55,997,136 | 52,172,720 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 30,076 | $ 42,248 |
Other comprehensive income (loss), net of tax: | ||
Net change related to available-for-sale securities | (1,185) | (1,165) |
Net change related to cash flow hedges | (128) | 538 |
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (3,675) | |
Foreign currency translation adjustments, net | (5,630) | (2,954) |
Total other comprehensive loss | (10,618) | (3,581) |
Comprehensive income | $ 19,458 | $ 38,667 |
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] | Stockholders Equity | |
Balance at Dec. 31, 2019 | $ 5 | $ 475,792 | $ (1,809) | $ 337,682 | $ 811,670 | |
Balance (in shares) at Dec. 31, 2019 | 48,898,062 | |||||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards | [1] | 3,308 | 3,308 | |||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares | 701,431 | |||||
Equity based compensation expenses to employees and nonemployees | 12,773 | 12,773 | ||||
Other comprehensive loss adjustments | (3,581) | (3,581) | ||||
Net income | 42,248 | 42,248 | ||||
Balance at Mar. 31, 2020 | $ 5 | 491,873 | (5,390) | 379,930 | 866,418 | |
Balance (in shares) at Mar. 31, 2020 | 49,599,493 | |||||
Balance at Dec. 31, 2020 | $ 5 | 603,891 | 3,857 | 478,004 | 1,085,757 | |
Balance (in shares) at Dec. 31, 2020 | 51,560,936 | |||||
Cumulative effect of adopting new accounting standard | (36,336) | 2,884 | (33,452) | |||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards | [1] | 5,008 | 5,008 | |||
Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares | 405,239 | |||||
Equity based compensation expenses to employees and nonemployees | 23,153 | 23,153 | ||||
Other comprehensive loss adjustments | (10,618) | (10,618) | ||||
Net income | 30,076 | 30,076 | ||||
Balance at Mar. 31, 2021 | $ 5 | $ 595,716 | $ (6,761) | $ 510,964 | $ 1,099,924 | |
Balance (in shares) at Mar. 31, 2021 | 51,966,175 | |||||
[1] | Represents an amount less than $1. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows provided by operating activities: | ||
Net income | $ 30,076 | $ 42,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 6,887 | 5,004 |
Amortization of intangible assets | 2,391 | 2,321 |
Amortization of debt discount and debt issuance costs | 724 | |
Amortization of premium and accretion of discount on available-for-sale marketable securities, net | 1,295 | 120 |
Stock-based compensation expenses | 23,153 | 12,773 |
Deferred income taxes, net | (2,141) | (2,859) |
Loss from disposal of assets | 2,147 | 6 |
Exchange rate fluctuations and other items, net | 13,303 | (1,018) |
Changes in assets and liabilities: | ||
Inventories, net | (8,376) | (29,004) |
Prepaid expenses and other assets | 20,218 | 49,888 |
Trade receivables, net | (57,380) | 59,420 |
Trade payables, net | (39,034) | (17,589) |
Employees and payroll accruals | 7,477 | 11,821 |
Warranty obligations | 13,088 | 13,809 |
Deferred revenues and customers advances | 3,615 | (31,729) |
Other liabilities | 6,640 | (7,466) |
Net cash provided by operating activities | 24,083 | 107,745 |
Cash flows from investing activities: | ||
Investment in available-for-sale marketable securities | (186,528) | (31,924) |
Proceed from maturities of available-for-sale marketable securities | 40,450 | 42,333 |
Purchase of property, plant and equipment | (24,545) | (27,053) |
Withdrawal from (investment in) bank deposits, net | 16,470 | (3,316) |
Other investing activities | 571 | 36 |
Net cash used in investing activities | (153,582) | (19,924) |
Cash flows from financing activities: | ||
Repayment of bank loans | (34) | (15,232) |
Proceeds from bank loans | 15,295 | |
Proceeds from exercise of stock-based awards net of tax withholding | (1,716) | 3,308 |
Other financing activities | (312) | (56) |
Net cash provided by (used in) financing activities | (2,062) | 3,315 |
Increase (decrease) in cash and cash equivalents | (131,561) | 91,136 |
Cash and cash equivalents at the beginning of the period | 827,146 | 223,901 |
Effect of exchange rate differences on cash and cash equivalents | (10,428) | 9,035 |
Cash and cash equivalents at the end of the period | $ 685,157 | $ 324,072 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2021 | |
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 products worldwide through large distributors, electrical equipment wholesalers, as well as directly to large solar installers and engineering, procurement and construction firms. b. The Company has expanded its activity to other areas of smart energy technology organically and through c. Recently issued and adopted pronouncements: In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): 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 on an entity’s own equity. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in an increase of retained earnings in an amount of $2,884, a decrease of an additional paid-in capital in an amount of $36,336, an increase of convertible senior notes, net, in an amount of $45,282 and a decrease of deferred tax liabilities, net, in an amount of $11,830. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarifies the interaction between the accounting for equity securities in Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The guidance is effective for interim and annual periods beginning after December 15, 2020. Effective January 1, 2021, the Company adopted this standard on a prospective basis. The impact of adoption of this standard on the Company’s consolidated financial statements was immaterial. F - 10 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.) 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, 2020, contained in the Company’s Annual Report on Form 10-K/A filed with the SEC on February 19, 2021, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Topic 470) (see Note 7). e. Use of estimates: The preparation of financial statements in conformity with 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. f. 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. As of March 31, 2021, and December 31, 2020, two contract manufacturers collectively accounted for 37.9% and 48.5% of the Company’s total trade payables, net, respectively. During 2020, the Company started production in its manufacturing facility in the North of Israel, “Sella 1”. The Company expects manufacturing capacity to continue to increase until the second quarter of 2021 when Sella 1 is expected to reach full manufacturing capacity. g. Certain prior period amounts have been reclassified to conform to the current period presentation. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 2:- INVENTORIES, NET March 31, 2021 December 31, 2020 Raw materials $ 142,916 $ 128,363 Work in process 26,686 25,461 Finished goods 170,436 177,872 $ 340,038 $ 331,696 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES The following is a summary of available-for-sale marketable debt securities as of March 31, 2021: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale – matures within one year: Corporate bonds $ 134,482 $ 214 $ (93 ) $ 134,603 Governmental bonds 4,475 6 (5 ) 4,476 138,957 220 (98 ) 139,079 Available for-sale – matures after one year: Corporate bonds 285,326 31 (1,270 ) 284,087 Governmental bonds 10,792 - (51 ) 10,741 296,118 31 (1,321 ) 294,828 Total $ 435,075 $ 251 $ (1,419 ) $ 433,907 The following is a summary of available-for-sale marketable debt securities as of December 31, 2020: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale – matures within one year: Corporate bonds $ 141,824 $ 509 $ (57 ) $ 142,276 Governmental bonds 1,400 11 - 1,411 143,224 520 (57 ) 143,687 Available for-sale – matures after one year: Corporate bonds 142,701 65 (214 ) 142,552 Governmental bonds 4,895 - (13 ) 4,882 147,596 65 (227 ) 147,434 Total $ 290,820 $ 585 $ (284 ) $ 291,121 As of March 31, 2021, the Company didn’t record an allowance for credit losses for its available-for-sale marketable debt securities. |
INVESTMENT IN PRIVETLY-HELD COM
INVESTMENT IN PRIVETLY-HELD COMPANIES | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN PRIVETLY-HELD COMPANIES | NOTE 4:- INVESTMENT IN PRIVETLY-HELD COMPANIES On January 31, 2021, the Company completed an investment of $ 11,643 in the preferred stock of AutoGrid Systems, INC ("AutoGrid"), a privately held company without readily determinable fair values. On February 1, 2021, the Company signed on a preferred stock purchase agreement for an additional investment of $ 5,000 in AutoGrid's preferred stock ("second investment"). As of March 31, 2021, the final closing of the second investment had not yet occurred. On April 28, the Company completed the second investment. Under ASU 2016-01 equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence. The Company adjusts the carrying value of its non-marketable equity securities to fair value upon observable transactions for identical or similar investments of the same issuer or upon impairment. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in financial expenses, net. The Company accounted for the AutoGrid investment as an equity investment that do not have readily determinable fair values. As such, the Company’s non-marketable equity securities had a carrying value of $11,643 as of March 31, 2021. The maximum loss the Company can incur for its investments is their carrying value. Investment in privately-held companies are included within other long-term assets on the consolidated balance sheets. The Company periodically evaluates the carrying value of the investments in privately-held companies when events and circumstances indicate that the carrying amount of the investment may not be recovered. These investments include the Company’s holdings in privately-held companies that are not traded and therefore not supported with observable market prices. The Company may determine the fair value by reviewing equity valuation reports, current financial results, long-term plans of the privately-held companies, the amount of cash that the privately-held companies have on-hand, the ability to obtain additional financing and overall market conditions in which the privately-held companies operate or based on the price observed from the most recent completed financing. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three months ended March 31, 2021. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5:- FAIR VALUE MEASUREMENTS In accordance with ASC 820, the Company measures its cash equivalents and marketable securities, at fair value using the market approach valuation technique. Cash equivalents and marketable securities are classified within Level 1 and Level 2, respectively, because 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 March 31, 2021 and December 31, 2020 by level within the fair value hierarchy: Fair value measurements as of Fair Value March 31, December 31, Description Hierarchy 2021 2020 Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ 292,417 $ 480,673 Derivative instruments asset: Options and forward contracts not designated as hedging instruments Level 2 $ 449 3,786 Short-term marketable securities: Corporate bonds Level 2 $ 134,603 $ 142,276 Governmental bonds Level 2 $ 4,476 $ 1,411 Long-term marketable securities: Corporate bonds Level 2 $ 284,087 $ 142,552 Governmental bonds Level 2 $ 10,741 $ 4,882 Liabilities Derivative instruments liability: Options and forward contracts designated as hedging instruments Level 2 $ (146 ) $ - Options and forward contracts not designated as hedging instruments Level 2 $ - (5,819 ) |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2021 | |
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 three months March 31, 2021, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine 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 March 31, 2021, the Company entered into forward contracts to sell U.S. dollars for NIS in the amount of $42,000. In addition to the above-mentioned cash flow hedges transactions, 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 financial expenses, net. As of March 31, 2021, the Company entered into forward contracts and put and call options to sell Australian dollars (“AUD”) for U.S. dollars in the amount of AUD 12 million and AUD 30 million, respectively. As of March 31, 2021, the Company entered into forward contracts and put and call options to sell Euro (“EUR”) for U.S. dollars in the amount of EUR 39 million and EUR 57 million, respectively. As of March 31, 2021, the Company entered into forward contracts to sell U.S. dollars for South Korean Won in the amount of $28,000. The fair value of derivative assets as of March 31, 2021 and December 31, 2020, was $449 and $3,786, which was recorded in prepaid expenses and other current assets in the consolidated balance sheets, respectively. The fair value of derivative liabilities as of March 31, 2021 and December 31, 2020, was $146 and $5,819, which was recorded in accrued expenses and other current liabilities in the consolidated balance sheets, respectively. For the three months ended March 31, 2021, the Company recorded a gain in the amount of $3,536 in financial expense, net, related to the derivative instruments not designated as cash flow hedges. The Company had no gains or losses related to derivative instruments during the three months ended March 31, 2020. For the three months ended March 31, 2021 and 2020, the Company recorded unrealized gain (loss) in the amount of $(128) and $538, net of tax effect, respectively, in “accumulated other comprehensive loss” related to the derivative assets designated as hedging instruments. |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES | NOTE 7:- 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 Convertible Senior Notes consisted of the following as of March 31, 2021 and December 31, 2020: As of As of March 31, 2021 December 31, 2020 Liability: Principal $ 632,500 $ 632,500 Unamortized debt discount - (46,353 ) Unamortized issuance costs (13,143 ) (12,797 ) Net carrying amount $ 619,357 $ 573,350 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 F - 16 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 7:- CONVERTIBLE SENIOR NOTES (Cont.) As of March 31, 2021, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 4.5 years. Prior to January 1, 2021, the Company separated the Notes into liability and equity components. On issuance, the carrying amount of the equity components was recorded as a debt discount and subsequently amortized to interest expense. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. The Notes are accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. Adoption of the new standard resulted in an increase of retained earnings in an amount of $2,884, a decrease of an additional paid-in capital in an amount of $36,336, an increase of convertible senior notes, net, in an amount of $45,282 and a decrease of deferred tax liabilities, net, in an amount of $11,830. The annual effective interest rate of the Notes following the adoption of ASU 2020-06 is 0.47%. Interest expense related to the amortization of debt issuance costs was $724 for the three months ended March 31, 2021. As of March 31, 2021, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $812,294. The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period. As of March 31, 2021, the if-converted value of the Notes exceeded the principal amount by $179,794. |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 3 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | NOTE 8:- WARRANTY OBLIGATIONS Changes in the Company’s product warranty obligations for the three months ended March 31, 2021 and 2020, were as follows: As of March 31, 2021 2020 Balance, at the beginning of the period $ 204,994 $ 172,563 Additions and adjustments to cost of revenues 29,971 26,373 Usage and current warranty expenses (17,012 ) (12,679 ) Balance, at the end of the period 217,953 186,257 Less current portion (63,443 ) (70,158 ) Long term portion $ 154,510 $ 116,099 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 9:- COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of March 31, 2021, contingent liabilities exist regarding guarantees in the amounts of $18,373, $2,712 and $476 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, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products. In addition, the Company acquires raw materials or other goods and services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand and manufacturing needs. As of March 31, 2021, the Company had non-cancelable purchase obligations totaling approximately $699,325 out of which the Company recorded a provision for loss in the amount of $5,009. As of March 31, 2021, the Company had contractual obligations for capital expenditures totaling approximately $84,811. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process as well as capital expenditures associated with the construction of Sella 2, the Company’s planned second lithium-ion cell and battery factory in Korea. 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, alleged that the Company’s 12.5kW - 27.6kW inverters infringe two of the plaintiff’s patents. In its complaint, SMA asserted a value in dispute of EUR 5.5 million (approximately $6,455) 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, this invalidity has been appealed by SMA. 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. In May 2019, the Company’s two Chinese subsidiaries and its equipment manufacturer in China were served with three lawsuits by Huawei Technologies Co., Ltd., a Chinese entity (“Huawei”). 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 9:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) The lawsuits, filed in the Guangzhou intellectual property court, alleged infringement of three patents and asked for an injunction of manufacture, use, sale and offer for sale, and damage awards. A first-instance judgment was issued on August 7, 2020 ordering the three defendants to collectively pay damages in the amount of approximately Chinese Yuan (“CNY”) 10.5 million (approximately $1,607), including court fees, with respect of one of the patents. The Company has filed an appeal with the Supreme People’s Court of China. The first instance court’s judgement is not effective or enforceable pending the appeal. In addition, in January 2021, Huawei filed a motion to increase its claimed monetary damages to CNY 50.5 million (approximately $7,700) and for a preliminary injunction with respect to the second lawsuit. In February 2021, a preliminary injunction was rendered by the Guangzhou intellectual property court with respect to such second lawsuit and applying to seven inverter models. In line with the court’s mandate, the Company took immediate action to make software changes to meet the court order and also appealed the decision. In addition, in February 22, 2021 a first-instance judgment was issued ordering the three defendants to collectively pay damages in the amount of CNY 50.5 million (approximately $7,700), including court fees, with respect to the second patent. The Company appealed this judgement with the Supreme People’s Court. The first instance court’s judgement is not effective or enforceable pending the appeal. The Company believes that it has meritorious defenses to the claims asserted by Huawei. In December 2019, the Company received a lawsuit filed by a former consultant of the Company and its Israeli subsidiary in the amount of 25.5 million NIS (approximately $7,648) 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 March 31, 2021, accrued amounts for legal claims of $9,265, were recorded in accrued expenses and other current liabilities. |
STOCK CAPITAL
STOCK CAPITAL | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK CAPITAL | NOTE 10:- STOCK CAPITAL a. Common stock rights: Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes; to share equally, on a per share basis, in bonuses, profits, or distributions out of fund legally available therefor; and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company. b. Stock option 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. 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 March 31, 2021, a total of 15,406,316 shares of common stock were reserved for issuance pursuant to stock awards 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 became 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 March 31, 2021, an aggregate of 8,607,542 options are still available for future grant under the 2015 Plan. F - 20 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:- STOCK CAPITAL (Cont.) A summary of the activity in the stock options granted to employees and members of the board of directors for the year ended March 31, 2021 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, 2020 691,732 31.86 5.07 198,709 Granted 19,489 311.35 Exercised (147,849 ) 33.88 Forfeited or expired - - Outstanding as of March 31, 2021 563,372 41.00 5.82 139,306 Vested and expected to vest as of March 31, 2021 509,448 35.86 6.06 128,479 Exercisable as of March 31, 2021 388,189 21.47 5.44 103,246 The aggregate intrinsic value in the tables above 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 three months ended March 31, 2021 was $41,217. The weighted average grant date fair values of options granted to employees and executive directors during the three months ended March 31, 2021 was $168.71. A summary of the activity in the RSUs granted to employees and directors for the year ended March 31, 2021, is as follows: Number of RSUs Weighted average grant date fair value Unvested as of January 1, 2021 2,216,841 103.79 Granted 36,815 316.81 Vested (252,326 ) 68.33 Forfeited (18,439 ) 96.59 Unvested as of March 31, 2021 1,982,891 113.08 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 10:- STOCK CAPITAL (Cont.) c. Employee Stock Purchase Plan (“ESPP”): The Company adopted an ESPP effective upon the consummation of the IPO. As of March 31, 2021, a total of 3,175,094 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 its 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 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 March 31, 2021, 612,229 shares of common stock had been purchased under the ESPP. As of March 31, 2021, 2,562,865 shares of common stock 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. d. Stock-based compensation expenses for employees and non-employees: The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and nonemployees and ESPP in the condensed consolidated statement of income for the three months ended March 31, 2021 and 2020, as follows: Three months ended March 31, 2021 2020 Cost of revenues $ 5,790 $ 2,273 Research and development 8,798 5,378 Selling and marketing 5,435 3,192 General and administrative 3,130 1,930 Total stock-based compensation expenses $ 23,153 $ 12,773 As of March 31, 2021, there were total unrecognized compensation expenses in the amount of $224,436 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 April 1, 2021 through November 30, 2025. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Net income per share: | |
EARNINGS PER SHARE | NOTE 11:- EARNINGS PER SHARE Basic net EPS is computed by dividing the net earnings 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." 10,757 shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three months ended March 31, 2021. No shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the three months ended March 31, 2020. The following table presents the computation of basic and diluted EPS: Three months ended March 31, 2021 2020 Basic EPS: Numerator: Net income $ 30,076 $ 42,248 Denominator: Shares used in computing net earnings per share of common stock, basic 51,726,998 49,193,240 Diluted EPS: Numerator: Net income attributable to common stock, basic $ 30,076 $ 42,248 Notes due 2025 534 - Net income attributable to common stock, diluted $ 30,610 $ 42,248 Denominator: Shares used in computing net earnings per share of common stock, basic 51,726,998 49,193,240 Notes due 2025 2,276,818 - Effect of stock-based awards 1,993,320 2,979,480 Shares used in computing net earnings per share of common stock, diluted 55,997,136 52,172,720 |
OTHER OPERATING EXPENSES (INCOM
OTHER OPERATING EXPENSES (INCOME) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSES (INCOME) | NOTE 12:- OTHER OPERATING EXPENSES (INCOME) Three months ended March 31, 2021 2020 A settlement of pre-acquisition legal claim against Kokam (1) $ - $ (4,900 ) Write-off of property, plant and equipment 2,209 - Total other operating expenses (income) $ 2,209 $ (4,900 ) (1) At the time of the acquisition of 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 the year ended December 31, 2019. In March 2020, the Company was indemnified for the full amount by a major selling shareholder of Kokam, which was recognized as an income in the three months ended March 31, 2020. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
INCOME TAXES | NOTE 13:- INCOME TAXES The effective tax rate for the three months ended March 31, 2021 and 2020 were 20.9%, and 17.4% respectively. The increase in the effective tax rate in the current year is primarily due to presence of a full valuation allowance in various jurisdictions and different allocation of income among the Company’s US, Israel, and foreign subsidiaries. The Company’s effective tax rate was lower than the U.S. federal statutory rate for the three months ended March 31, 2021, due to earnings taxed at lower rates in foreign jurisdictions and tax benefits relating to stock-based compensation, which were primarily offset by full valuation allowance in various jurisdictions and GILTI tax. As of March 31, 2021, and December 31, 2020, unrecognized tax benefits were $10,630 and $10,564, respectively. If recognized, such benefits would favorably affect the Company’s effective tax rate. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were $152 and $127 as of March 31, 2021 and December 31, 2020, respectively. It is reasonably possible that the Company’s gross unrecognized tax benefits will decrease by up to $8,937 in the next 12 months, primarily due to the lapse of the statute of limitations. These adjustments, if recognized, would positively impact the Company’s effective tax rate, and would be recognized as additional tax benefits. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 14:- SEGMENT INFORMATION a. Segment Information: The Company operates in five different operating segments: Solar, Critical Power, Energy Storage, e-Mobility and Automation Machines. The Company's Chief Executive Officer, who is the chief operating decision maker (“CODM”) , makes resource allocation decisions and assesses performance based on 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. The Company identified one operating segment as reportable – the Solar segment. The other operating segments are insignificant individually and therefore their results are presented together under “All other”. The Solar segment includes the design, development, manufacturing, 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. The Company does not allocate to its operating segments revenue recognized due to advance payments received for performance obligations that extend for a period greater than one year (“financing component”), related to Accounting Standard Codification 606, “Revenue from Contracts with Customers” (ASC 606). The following table presents information on reportable segments profit (loss) for the period presented: Three months ended March 31, 2021 2020 Solar All other Solar All other Revenues $ 376,287 $ 29,116 $ 407,647 $ 23,571 Cost of revenues 226,833 30,483 264,815 21,452 Gross profit (loss) 149,454 (1,367 ) 142,832 2,119 Research and development 31,902 6,265 27,083 4,209 Sales and marketing 18,742 2,497 18,623 2,142 General and administrative 13,272 3,501 9,156 5,091 Segments profit (loss) $ 85,538 $ (13,630 ) $ 87,970 $ (9,323 ) 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 14:- SEGMENT INFORMATION (Cont.) The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented: Three months ended March 31, 2021 2020 Solar segment revenues $ 376,287 $ 407,647 All other segment revenues 29,116 23,571 Revenues from financing component 86 - Consolidated revenues $ 405,489 $ 431,218 The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three months ended March 31, 2021 2020 Solar segment profit $ 85,538 $ 87,970 All other segment loss (13,630 ) (9,323 ) Segments operating profit 71,908 78,647 Amounts not allocated to segments: Stock based compensation expenses (23,153 ) (12,773 ) Amortization related to business combinations (2,569 ) (2,686 ) Legal settlement (see Note 12) - 4,900 Cost of products adjustments - (313 ) Other unallocated expenses, net (2,058 ) - Consolidated operating income $ 44,128 $ 67,775 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | March 31, 2021 December 31, 2020 Raw materials $ 142,916 $ 128,363 Work in process 26,686 25,461 Finished goods 170,436 177,872 $ 340,038 $ 331,696 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities [Abstract] | |
Schedule of AFS Marketable Debt Securities | The following is a summary of available-for-sale marketable debt securities as of March 31, 2021: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale – matures within one year: Corporate bonds $ 134,482 $ 214 $ (93 ) $ 134,603 Governmental bonds 4,475 6 (5 ) 4,476 138,957 220 (98 ) 139,079 Available for-sale – matures after one year: Corporate bonds 285,326 31 (1,270 ) 284,087 Governmental bonds 10,792 - (51 ) 10,741 296,118 31 (1,321 ) 294,828 Total $ 435,075 $ 251 $ (1,419 ) $ 433,907 The following is a summary of available-for-sale marketable debt securities as of December 31, 2020: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale – matures within one year: Corporate bonds $ 141,824 $ 509 $ (57 ) $ 142,276 Governmental bonds 1,400 11 - 1,411 143,224 520 (57 ) 143,687 Available for-sale – matures after one year: Corporate bonds 142,701 65 (214 ) 142,552 Governmental bonds 4,895 - (13 ) 4,882 147,596 65 (227 ) 147,434 Total $ 290,820 $ 585 $ (284 ) $ 291,121 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 by level within the fair value hierarchy: Fair value measurements as of Fair Value March 31, December 31, Description Hierarchy 2021 2020 Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ 292,417 $ 480,673 Derivative instruments asset: Options and forward contracts not designated as hedging instruments Level 2 $ 449 3,786 Short-term marketable securities: Corporate bonds Level 2 $ 134,603 $ 142,276 Governmental bonds Level 2 $ 4,476 $ 1,411 Long-term marketable securities: Corporate bonds Level 2 $ 284,087 $ 142,552 Governmental bonds Level 2 $ 10,741 $ 4,882 Liabilities Derivative instruments liability: Options and forward contracts designated as hedging instruments Level 2 $ (146 ) $ - Options and forward contracts not designated as hedging instruments Level 2 $ - (5,819 ) |
CONVERTIBLE SENIOR NOTES (Table
CONVERTIBLE SENIOR NOTES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The Convertible Senior Notes consisted of the following as of March 31, 2021 and December 31, 2020: As of As of March 31, 2021 December 31, 2020 Liability: Principal $ 632,500 $ 632,500 Unamortized debt discount - (46,353 ) Unamortized issuance costs (13,143 ) (12,797 ) Net carrying amount $ 619,357 $ 573,350 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 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Warranty Obligations | Changes in the Company’s product warranty obligations for the three months ended March 31, 2021 and 2020, were as follows: As of March 31, 2021 2020 Balance, at the beginning of the period $ 204,994 $ 172,563 Additions and adjustments to cost of revenues 29,971 26,373 Usage and current warranty expenses (17,012 ) (12,679 ) Balance, at the end of the period 217,953 186,257 Less current portion (63,443 ) (70,158 ) Long term portion $ 154,510 $ 116,099 |
STOCK CAPITAL (Tables)
STOCK CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of RSU Activity | A summary of the activity in the RSUs granted to employees and directors for the year ended March 31, 2021, is as follows: Number of RSUs Weighted average grant date fair value Unvested as of January 1, 2021 2,216,841 103.79 Granted 36,815 316.81 Vested (252,326 ) 68.33 Forfeited (18,439 ) 96.59 Unvested as of March 31, 2021 1,982,891 113.08 |
Schedule of Recognized Stock-based Compensation Expenses | The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and nonemployees and ESPP in the condensed consolidated statement of income for the three months ended March 31, 2021 and 2020, as follows: Three months ended March 31, 2021 2020 Cost of revenues $ 5,790 $ 2,273 Research and development 8,798 5,378 Selling and marketing 5,435 3,192 General and administrative 3,130 1,930 Total stock-based compensation expenses $ 23,153 $ 12,773 |
Option [Member] | Employees and Members of Board of Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the Activity in the Share Options Granted to Employees and Members of the Board of Directors | A summary of the activity in the stock options granted to employees and members of the board of directors for the year ended March 31, 2021 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, 2020 691,732 31.86 5.07 198,709 Granted 19,489 311.35 Exercised (147,849 ) 33.88 Forfeited or expired - - Outstanding as of March 31, 2021 563,372 41.00 5.82 139,306 Vested and expected to vest as of March 31, 2021 509,448 35.86 6.06 128,479 Exercisable as of March 31, 2021 388,189 21.47 5.44 103,246 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net income per share: | |
Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share | The following table presents the computation of basic and diluted EPS: Three months ended March 31, 2021 2020 Basic EPS: Numerator: Net income $ 30,076 $ 42,248 Denominator: Shares used in computing net earnings per share of common stock, basic 51,726,998 49,193,240 Diluted EPS: Numerator: Net income attributable to common stock, basic $ 30,076 $ 42,248 Notes due 2025 534 - Net income attributable to common stock, diluted $ 30,610 $ 42,248 Denominator: Shares used in computing net earnings per share of common stock, basic 51,726,998 49,193,240 Notes due 2025 2,276,818 - Effect of stock-based awards 1,993,320 2,979,480 Shares used in computing net earnings per share of common stock, diluted 55,997,136 52,172,720 |
OTHER OPERATING EXPENSES (INC_2
OTHER OPERATING EXPENSES (INCOME) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Options [Member] | |
Schedule of Other Operating Expenses | Three months ended March 31, 2021 2020 A settlement of pre-acquisition legal claim against Kokam (1) $ - $ (4,900 ) Write-off of property, plant and equipment 2,209 - Total other operating expenses (income) $ 2,209 $ (4,900 ) (1) At the time of the acquisition of 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 the year ended December 31, 2019. In March 2020, the Company was indemnified for the full amount by a major selling shareholder of Kokam, which was recognized as an income in the three months ended March 31, 2020. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments and Operating Income | The following table presents information on reportable segments profit (loss) for the period presented: Three months ended March 31, 2021 2020 Solar All other Solar All other Revenues $ 376,287 $ 29,116 $ 407,647 $ 23,571 Cost of revenues 226,833 30,483 264,815 21,452 Gross profit (loss) 149,454 (1,367 ) 142,832 2,119 Research and development 31,902 6,265 27,083 4,209 Sales and marketing 18,742 2,497 18,623 2,142 General and administrative 13,272 3,501 9,156 5,091 Segments profit (loss) $ 85,538 $ (13,630 ) $ 87,970 $ (9,323 ) The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three months ended March 31, 2021 2020 Solar segment profit $ 85,538 $ 87,970 All other segment loss (13,630 ) (9,323 ) Segments operating profit 71,908 78,647 Amounts not allocated to segments: Stock based compensation expenses (23,153 ) (12,773 ) Amortization related to business combinations (2,569 ) (2,686 ) Legal settlement (see Note 12) - 4,900 Cost of products adjustments - (313 ) Other unallocated expenses, net (2,058 ) - Consolidated operating income $ 44,128 $ 67,775 |
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 March 31, 2021 2020 Solar segment revenues $ 376,287 $ 407,647 All other segment revenues 29,116 23,571 Revenues from financing component 86 - Consolidated revenues $ 405,489 $ 431,218 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Accounting Standards Update 2020-06 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Increase of retained earnings | $ 2,884 | |
Decrease in additional paid-in capital | 36,336 | |
Increase in convertible senior notes | 45,282 | |
Decrease in deferred tax liabilities | $ 11,830 | |
Accounts Payable [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Concentration risk (as a percent) | 37.90% | 48.50% |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 142,916 | $ 128,363 |
Work in process | 26,686 | 25,461 |
Finished goods | 170,436 | 177,872 |
Inventories, net | $ 340,038 | $ 331,696 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
AFS - matures within one year, Amortized cost | $ 138,957 | $ 143,224 |
AFS - matures within one year, Gross unrealized gains | 220 | 520 |
AFS - matures within one yearr, Gross unrealized losses | (98) | (57) |
AFS - matures within one year, Fair value | 139,079 | 143,687 |
AFS - matures after one year, Amortized cost | 296,118 | 147,596 |
AFS - matures after one year, Gross unrealized gains | 31 | 65 |
AFS - matures after one year, Gross unrealized losses | (1,321) | (227) |
AFS - matures after one year, Fair value | 294,828 | 147,434 |
Amortized cost | 435,075 | 290,820 |
Gross unrealized gains | 251 | 585 |
Gross unrealized losses | (1,419) | (284) |
Fair value | 433,907 | 291,121 |
Corporate bonds [Member] | ||
AFS - matures within one year, Amortized cost | 134,482 | 141,824 |
AFS - matures within one year, Gross unrealized gains | 214 | 509 |
AFS - matures within one yearr, Gross unrealized losses | (93) | (57) |
AFS - matures within one year, Fair value | 134,603 | 142,276 |
AFS - matures after one year, Amortized cost | 285,326 | 142,701 |
AFS - matures after one year, Gross unrealized gains | 31 | 65 |
AFS - matures after one year, Gross unrealized losses | (1,270) | (214) |
AFS - matures after one year, Fair value | 284,087 | 142,552 |
Governmental bonds [Member] | ||
AFS - matures within one year, Amortized cost | 4,475 | 1,400 |
AFS - matures within one year, Gross unrealized gains | 6 | 11 |
AFS - matures within one yearr, Gross unrealized losses | (5) | |
AFS - matures within one year, Fair value | 4,476 | 1,411 |
AFS - matures after one year, Amortized cost | 10,792 | 4,895 |
AFS - matures after one year, Gross unrealized gains | ||
AFS - matures after one year, Gross unrealized losses | (51) | (13) |
AFS - matures after one year, Fair value | $ 10,741 | $ 4,882 |
INVESTMENT IN PRIVETLY-HELD C_2
INVESTMENT IN PRIVETLY-HELD COMPANIES (Details) - AutoGrid Systems [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Feb. 02, 2021 | Jan. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments of preferred stock | $ 5,000 | $ 11,643 | |
Carrying value of non-marketable equity securities | $ 11,643 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ||
Fair value of assets | $ 292,417 | $ 480,673 |
Level 2 [Member] | Options and forward contracts not designated as hedging instruments [Member] | Derivative Financial Instruments Liabilities [Member] | ||
Fair value of liabilities | (5,819) | |
Level 2 [Member] | Designated as Hedging Instrument [Member] | Derivative Financial Instruments Liabilities [Member] | ||
Fair value of liabilities | (146) | |
Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | Options and forward contracts not designated as hedging instruments [Member] | ||
Fair value of assets | 449 | 3,786 |
Level 2 [Member] | Short-term corporate bonds [Member] | ||
Fair value of assets | 134,603 | 142,276 |
Level 2 [Member] | Short-term governmental bonds [Member] | ||
Fair value of assets | 4,476 | 1,411 |
Level 2 [Member] | Long-term corporate bonds [Member] | ||
Fair value of assets | 284,087 | 142,552 |
Level 2 [Member] | Long-term governmental bonds [Member] | ||
Fair value of assets | $ 10,741 | $ 4,882 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands, € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021AUD ($) | Mar. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||
Fair value of derivative assets | $ 449 | $ 3,786 | |||
Gain of financial expense net | 3,536 | ||||
Fair value of derivative liabilities | 146 | $ 5,819 | |||
Unrealized gain (loss) net of tax effect | (128) | $ 538 | |||
Foreign exchange forward contracts [Member] | Australia, Dollars [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | $ 12 | ||||
Foreign exchange forward contracts [Member] | Euro [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | € | € 39 | ||||
Foreign exchange forward contracts [Member] | USD [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | 42,000 | ||||
Foreign exchange forward contracts [Member] | USD [Member] | South Korean Won [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | $ 28,000 | ||||
Put and Call Options [Member] | Australia, Dollars [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | $ 30 | ||||
Put and Call Options [Member] | Euro [Member] | |||||
Derivative [Line Items] | |||||
Forward/option contracts | € | € 57 |
CONVERTIBLE SENIOR NOTES (Narra
CONVERTIBLE SENIOR NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Sep. 25, 2020USD ($)d$ / shares | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Interest expense | $ 724 | ||
Accounting Standards Update 2020-06 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Debt Instrument [Line Items] | |||
Increase of retained earnings | $ 2,884 | ||
Decrease in additional paid-in capital | 36,336 | ||
Increase in convertible senior notes | 45,282 | ||
Decrease in deferred tax liabilities | $ 11,830 | ||
Convertible Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt conversion description | 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. | ||
Principal amount sold | $ 632,500 | ||
Effective interest | 0.00% | ||
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 | 4 years 6 months | ||
Amount by which the if-converted value of the Notes exceeded the principal amount | $ 179,794 | ||
Senior Notes [Member] | Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Estimated fair value of notes | $ 812,294 |
CONVERTIBLE SENIOR NOTES (Sched
CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Liability: | ||
Principal | $ 632,500 | $ 632,500 |
Unamortized debt discount | (46,353) | |
Unamortized issuance costs | (13,143) | (12,797) |
Net carrying amount | 619,357 | 573,350 |
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 |
WARRANTY OBLIGATIONS (Details)
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Changes in the Company's product warranty liability | |||
Balance, at the beginning of the period | $ 204,994 | $ 172,563 | |
Additions and adjustments to cost of revenues | 29,971 | 26,373 | |
Usage and current warranty expenses | (17,012) | (12,679) | |
Balance, at the end of the period | 217,953 | 186,257 | |
Less current portion | (63,443) | (70,158) | $ (62,614) |
Long term portion | $ 154,510 | $ 116,099 | $ 142,380 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands, € in Millions, ₪ in Millions, ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 22, 2021USD ($)Defendants | Feb. 22, 2021CNY (¥)Defendants | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2021CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019ILS (₪) | |
Non-cancelable purchase obligations | $ 699,325 | ||||||
Provision for loss | 5,009 | ||||||
Contractual obligations for capital expenditures | 84,811 | ||||||
Lawsuit claims | 1,607 | ||||||
Damages Paid | 7,700 | ||||||
Accured amount of legal claims | 9,265 | ||||||
Former Consultant and Israeli Subsidiary [Member] | |||||||
Lawsuit claims | $ 7,648 | ||||||
RMB [Member] | |||||||
Lawsuit claims | ¥ | ¥ 10.5 | ||||||
Damages Paid | ¥ | ¥ 50.5 | ||||||
Israel, New Shekels | Former Consultant and Israeli Subsidiary [Member] | |||||||
Lawsuit claims | ₪ | ₪ 25.5 | ||||||
Patents [Member] | |||||||
Value in dispute | 6,455 | ||||||
Patents [Member] | Euro [Member] | |||||||
Value in dispute | € | € 5.5 | ||||||
Second Patent [Member] | |||||||
Damages Paid | $ 7,700 | ||||||
Number of defendants | Defendants | 3 | 3 | |||||
Second Patent [Member] | RMB [Member] | |||||||
Damages Paid | ¥ | ¥ 50.5 | ||||||
Bank loans [Member] | |||||||
Guarantees amount | 18,373 | ||||||
Office Rent Lease Agreements [Member] | |||||||
Guarantees amount | 2,712 | ||||||
Other Transactions [Member] | |||||||
Guarantees amount | $ 476 |
STOCK CAPITAL (Stock option pla
STOCK CAPITAL (Stock option plans) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 10,000,000 |
Unrecognized compensation expense | $ | $ 224,436 |
Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options available for future grant under the plan | 379,358 |
Option [Member] | Employees and Members of Board of Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value of options exercised | $ | $ 41,217 |
Weighted average grant date fair values options granted to employees and executive directors | $ / shares | $ 168.71 |
Option [Member] | 2015 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 15,406,316 |
Number of options available for future grant under the plan | 8,607,542 |
Percentage of common shares increase automatically each year | 5.00% |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 3,175,094 |
Number of options available for future grant under the plan | 2,562,865 |
Number of Common stock purchased | 612,229 |
Period of plan increase automatically number of shares | 487,643 |
Percentage of common shares increase automatically each year | 1.00% |
Maximum percentage of salary | 10.00% |
Aggregate limit per participant | $ | $ 10 |
Purchase price of common stock, percent | 85.00% |
STOCK CAPITAL (Summary of the a
STOCK CAPITAL (Summary of the activity in the share options) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number of options | ||
Outstanding at the beginning of the period | 691,732 | |
Granted | 19,489 | |
Exercised | (147,849) | |
Forfeited or expired | ||
Outstanding at the end of the period | 563,372 | 691,732 |
Weighted average exercise price | ||
Outstanding at the beginning of the period | $ 31.86 | |
Granted | 311.35 | |
Exercised | 33.88 | |
Forfeited or expired | ||
Outstanding at the end of the period | $ 41 | $ 31.86 |
Weighted average remaining contractual term in years | ||
Outstanding | 5 years 9 months 25 days | 5 years 25 days |
Aggregate intrinsic Value | ||
Outstanding at the beginning of the period | $ 198,709 | |
Outstanding at the end of the period | $ 139,306 | $ 198,709 |
Vested and expected to vest at the end of the period | ||
Number of options | 509,448 | |
Weighted average exercise price | $ 35.86 | |
Weighted average remaining contractual term in years | 6 years 21 days | |
Aggregate intrinsic Value | $ 128,479 | |
Exercisable at the end of the period | ||
Number of options | 388,189 | |
Weighted average exercise price | $ 21.47 | |
Weighted average remaining contractual term in years | 5 years 5 months 8 days | |
Aggregate intrinsic Value | $ 103,246 |
STOCK CAPITAL (Schedule of RSU
STOCK CAPITAL (Schedule of RSU Activity) (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Stock Capital Schedule Of Rsu Activity | |
Unvested at beginning of period | shares | 2,216,841 |
Granted | shares | 36,815 |
Vested | shares | (252,326) |
Forfeited | shares | (18,439) |
Unvested at end of period | shares | 1,982,891 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 103.79 |
Weighted average grant date fair value, granted | $ / shares | 316.81 |
Weighted average grant date fair value, vested | $ / shares | 68.33 |
Weighted average grant date fair value, forfeited | $ / shares | 96.59 |
Weighted average grant date fair value, end of period | $ / shares | $ 113.08 |
STOCK CAPITAL (Schedule of stoc
STOCK CAPITAL (Schedule of stock-based compensation expense for employees and nonemployee) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expenses | $ 23,153 | $ 12,773 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expenses | 5,790 | 2,273 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expenses | 8,798 | 5,378 |
Selling and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expenses | 5,435 | 3,192 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expenses | $ 3,130 | $ 1,930 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income per share: | ||
Anti-dilutive securities | 10,757 | 0 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income | $ 30,076 | $ 42,248 |
Denominator: | ||
Shares used in computing net earnings per share of common stock, basic | 51,726,998 | 49,193,240 |
Numerator: | ||
Net income attributable to common stock, basic | $ 30,076 | $ 42,248 |
Notes due 2025 | 534 | |
Net income attributable to common stock, diluted | $ 30,610 | $ 42,248 |
Denominator: | ||
Shares used in computing net earnings per share of common stock, basic | 51,726,998 | 49,193,240 |
Notes due 2025 | 2,276,818 | |
Effect of stock-based awards | 1,993,320 | 2,979,480 |
Shares used in computing net earnings per share of common stock, diluted | 55,997,136 | 52,172,720 |
OTHER OPERATING EXPENSES (INC_3
OTHER OPERATING EXPENSES (INCOME) (Schedule of Other Opearting Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Options [Member] | |||
A settlement of pre-acquisition legal claim against Kokam | [1] | $ (4,900) | |
Write-off of property, plant and equipment | 2,209 | ||
Total other operating expenses (income) | $ 2,209 | $ (4,900) | |
[1] | At the time of the acquisition of Kokam, Kokam had an outstanding claim against it for damages. The claim was settled for an amount of $4,900, which was recognized as an expense in the year ended December 31, 2019. In March 2020, the Company was indemnified for the full amount by a major selling shareholder of Kokam, which was recognized as an income in the three months ended March 31, 2020. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes Schedule Of Taxes On Income Details | |||
Effective tax rate | 20.90% | 17.40% | |
Unrecognized tax benefits | $ 10,630 | $ 10,564 | |
Amount of penalties and interest | 152 | $ 127 | |
Expected decrease in gross unrecognized tax benefits | $ 8,937 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 405,489 | $ 431,218 |
Cost of revenues | 265,415 | 291,210 |
Gross profit | 140,074 | 140,008 |
Research and development | 46,977 | 36,695 |
Sales and marketing | 26,911 | 24,253 |
General and administrative | 19,849 | 16,185 |
Segments profit (loss) | 30,076 | 42,248 |
Solar segment profit | 85,538 | 87,970 |
All other segment loss | (13,630) | (9,323) |
Segments operating profit | 71,908 | 78,647 |
Amounts not allocated to segments: | ||
Stock based compensation expenses | (23,153) | (12,773) |
Amortization related to business combinations | (2,569) | (2,686) |
Legal settlement (see Note 12) | (4,900) | |
Cost of products adjustments | (313) | |
Other unallocated expenses, net | (2,058) | |
Consolidated operating income | 44,128 | 67,775 |
Solar [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 376,287 | 407,647 |
Cost of revenues | 226,833 | 264,815 |
Gross profit | 149,454 | 142,832 |
Research and development | 31,902 | 27,083 |
Sales and marketing | 18,742 | 18,623 |
General and administrative | 13,272 | 9,156 |
Segments profit (loss) | 85,538 | 87,970 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 29,116 | 23,571 |
Cost of revenues | 30,483 | 21,452 |
Gross profit | (1,367) | 2,119 |
Research and development | 6,265 | 4,209 |
Sales and marketing | 2,497 | 2,142 |
General and administrative | 3,501 | 5,091 |
Segments profit (loss) | $ (13,630) | $ (9,323) |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 405,489 | $ 431,218 |
Solar Segment Revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 376,287 | 407,647 |
All Other Segment Revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 29,116 | 23,571 |
Revenues from financing component [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 86 |