Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | SOLAREDGE TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001419612 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36894 | |
Entity Incorporation, State or Country Code | DE | |
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 Interactive Data Current | 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 $0.0001 per share | |
Trading Symbol | SEDG | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Common Stock, Shares Outstanding | 56,811,229 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 551,122 | $ 783,112 |
Marketable securities | 477,275 | 241,117 |
Trade receivables, net of allowances of $14,930 and $3,202, respectively | 939,545 | 905,146 |
Inventories, net | 1,177,805 | 729,201 |
Prepaid expenses and other current assets | 217,720 | 241,082 |
Total current assets | 3,363,467 | 2,899,658 |
LONG-TERM ASSETS: | ||
Marketable securities | 436,139 | 645,491 |
Deferred tax assets, net | 60,147 | 44,153 |
Property, plant and equipment, net | 604,819 | 543,969 |
Operating lease right-of-use assets, net | 67,331 | 62,754 |
Intangible assets, net | 41,947 | 19,929 |
Goodwill | 41,201 | 31,189 |
Other long-term assets | 36,103 | 18,806 |
Total long-term assets | 1,287,687 | 1,366,291 |
Total assets | 4,651,154 | 4,265,949 |
CURRENT LIABILITIES: | ||
Trade payables, net | 399,274 | 459,831 |
Employees and payroll accruals | 77,740 | 85,158 |
Warranty obligations | 174,125 | 103,975 |
Deferred revenues and customers advances | 22,064 | 26,641 |
Accrued expenses and other current liabilities | 203,448 | 214,112 |
Total current liabilities | 876,651 | 889,717 |
LONG-TERM LIABILITIES: | ||
Convertible senior notes, net | 626,647 | 624,451 |
Warranty obligations | 341,687 | 281,082 |
Deferred revenues | 212,025 | 186,936 |
Finance lease liabilities | 40,323 | 45,385 |
Operating lease liabilities | 46,580 | 46,256 |
Other long-term liabilities | 16,835 | 15,756 |
Total long-term liabilities | 1,284,097 | 1,199,866 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2023 and December 31, 2022; issued and outstanding: 56,810,559 and 56,133,404 shares as of September 30, 2023 and December 31, 2022, respectively | 6 | 6 |
Additional paid-in capital | 1,633,800 | 1,505,632 |
Accumulated other comprehensive loss | (83,949) | (73,109) |
Retained earnings | 940,549 | 743,837 |
Total stockholders’ equity | 2,490,406 | 2,176,366 |
Total liabilities and stockholders’ equity | $ 4,651,154 | $ 4,265,949 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances of trade receivable | $ 14,930 | $ 3,202 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 56,810,559 | 56,133,404 |
Common stock, outstanding shares | 56,810,559 | 56,133,404 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 |
Gross profit | 142,817 | 222,001 | 760,248 | 583,601 |
Operating expenses: | ||||
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Other operating expense (income), net | 0 | (2,724) | (1,434) | 1,963 |
Total operating expenses | 159,543 | 137,594 | 482,462 | 412,318 |
Operating income (loss) | (16,726) | 84,407 | 277,786 | 171,283 |
Financial income (expense), net | (7,901) | (33,146) | 19,157 | (52,062) |
Other income (loss), net | (484) | 7,654 | (609) | 6,810 |
Income (loss) before income taxes | (25,111) | 58,915 | 296,334 | 126,031 |
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 |
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Net basic earnings (loss) per share of common stock | $ (1.08) | $ 0.44 | $ 3.49 | $ 1.33 |
Net diluted earnings (loss) per share of common stock | $ (1.08) | $ 0.43 | $ 3.34 | $ 1.29 |
Weighted average number of shares used in computing net basic earnings (loss) per share of common stock | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Weighted average number of shares used in computing net diluted earnings (loss) per share of common stock | 56,671,504 | 58,747,538 | 59,297,423 | 57,886,041 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Other comprehensive income (loss), net of tax: | ||||
Available-for-sale marketable securities | 2,562 | (9,579) | 9,400 | (23,647) |
Cash flow hedges | (923) | (140) | (938) | (4,656) |
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (9,989) | (30,799) | (22,724) | (66,129) |
Foreign currency translation adjustments | 1,833 | 1,872 | 3,422 | (6,515) |
Total other comprehensive loss | (6,517) | (38,646) | (10,840) | (100,947) |
Comprehensive income (loss) | $ (67,693) | $ (13,903) | $ 185,872 | $ (27,997) |
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 income (loss) [Member] | Retained earnings [Member] | Total | |
Balance at Dec. 31, 2021 | $ 5 | $ 687,295 | $ (27,319) | $ 650,058 | $ 1,310,039 | |
Balance (in shares) at Dec. 31, 2021 | 52,815,395 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 1,478 | 0 | 0 | 1,478 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 270,751 | |||||
Stock based compensation | $ 0 | 34,107 | 0 | 0 | 34,107 | |
Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs | $ 1 | 650,525 | 0 | 0 | 650,526 | |
Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs (in shares) | 2,300,000 | |||||
Other comprehensive loss adjustments | $ 0 | 0 | (18,748) | 0 | (18,748) | |
Net income (loss) | 0 | 0 | 0 | 33,123 | 33,123 | |
Balance at Mar. 31, 2022 | $ 6 | 1,373,405 | (46,067) | 683,181 | 2,010,525 | |
Balance (in shares) at Mar. 31, 2022 | 55,386,146 | |||||
Balance at Dec. 31, 2021 | $ 5 | 687,295 | (27,319) | 650,058 | 1,310,039 | |
Balance (in shares) at Dec. 31, 2021 | 52,815,395 | |||||
Other comprehensive loss adjustments | (100,947) | |||||
Net income (loss) | 72,950 | |||||
Balance at Sep. 30, 2022 | $ 6 | 1,457,379 | (128,266) | 723,008 | 2,052,127 | |
Balance (in shares) at Sep. 30, 2022 | 55,894,106 | |||||
Balance at Mar. 31, 2022 | $ 6 | 1,373,405 | (46,067) | 683,181 | 2,010,525 | |
Balance (in shares) at Mar. 31, 2022 | 55,386,146 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 164 | 0 | 0 | 164 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 211,839 | |||||
Issuance of Common stock under employee stock purchase plan | $ 0 | [1] | 8,141 | 0 | 0 | 8,141 |
Issuance of Common stock under employee stock purchase plan (in shares) | 35,105 | |||||
Stock based compensation | $ 0 | 37,171 | 0 | 0 | 37,171 | |
Other comprehensive loss adjustments | 0 | 0 | (43,553) | 0 | (43,553) | |
Net income (loss) | 0 | 0 | 0 | 15,084 | 15,084 | |
Balance at Jun. 30, 2022 | $ 6 | 1,418,881 | (89,620) | 698,265 | 2,027,532 | |
Balance (in shares) at Jun. 30, 2022 | 55,633,090 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 1,866 | 0 | 0 | 1,866 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 261,016 | |||||
Stock based compensation | $ 0 | 36,632 | 0 | 0 | 36,632 | |
Other comprehensive loss adjustments | 0 | 0 | (38,646) | 0 | (38,646) | |
Net income (loss) | 0 | 0 | 0 | 24,743 | 24,743 | |
Balance at Sep. 30, 2022 | $ 6 | 1,457,379 | (128,266) | 723,008 | 2,052,127 | |
Balance (in shares) at Sep. 30, 2022 | 55,894,106 | |||||
Balance at Dec. 31, 2022 | $ 6 | 1,505,632 | (73,109) | 743,837 | 2,176,366 | |
Balance (in shares) at Dec. 31, 2022 | 56,133,404 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 75 | 0 | 0 | 75 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 209,760 | |||||
Stock based compensation | $ 0 | 40,070 | 0 | 0 | 40,070 | |
Other comprehensive loss adjustments | 0 | 0 | (4,095) | 0 | (4,095) | |
Net income (loss) | 0 | 0 | 0 | 138,378 | 138,378 | |
Balance at Mar. 31, 2023 | $ 6 | 1,545,777 | (77,204) | 882,215 | 2,350,794 | |
Balance (in shares) at Mar. 31, 2023 | 56,343,164 | |||||
Balance at Dec. 31, 2022 | $ 6 | 1,505,632 | (73,109) | 743,837 | 2,176,366 | |
Balance (in shares) at Dec. 31, 2022 | 56,133,404 | |||||
Other comprehensive loss adjustments | (10,840) | |||||
Net income (loss) | 196,712 | |||||
Balance at Sep. 30, 2023 | $ 6 | 1,633,800 | (83,949) | 940,549 | 2,490,406 | |
Balance (in shares) at Sep. 30, 2023 | 56,810,559 | |||||
Balance at Mar. 31, 2023 | $ 6 | 1,545,777 | (77,204) | 882,215 | 2,350,794 | |
Balance (in shares) at Mar. 31, 2023 | 56,343,164 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 89 | 0 | 0 | 89 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 171,682 | |||||
Issuance of Common stock under employee stock purchase plan | $ 0 | [1] | 10,046 | 0 | 0 | 10,046 |
Issuance of Common stock under employee stock purchase plan (in shares) | 41,494 | |||||
Stock based compensation | $ 0 | 39,978 | 0 | 0 | 39,978 | |
Other comprehensive loss adjustments | 0 | 0 | (228) | 0 | (228) | |
Net income (loss) | 0 | 0 | 0 | 119,510 | 119,510 | |
Balance at Jun. 30, 2023 | $ 6 | 1,595,890 | (77,432) | 1,001,725 | 2,520,189 | |
Balance (in shares) at Jun. 30, 2023 | 56,556,340 | |||||
Issuance of common stock upon exercise of stock-based awards | $ 0 | [1] | 18 | 0 | 0 | 18 |
Issuance of common stock upon exercise of stock-based awards (in shares) | 254,219 | |||||
Stock based compensation | $ 0 | 37,892 | 0 | 0 | 37,892 | |
Other comprehensive loss adjustments | 0 | 0 | (6,517) | 0 | (6,517) | |
Net income (loss) | 0 | 0 | 0 | (61,176) | (61,176) | |
Balance at Sep. 30, 2023 | $ 6 | $ 1,633,800 | $ (83,949) | $ 940,549 | $ 2,490,406 | |
Balance (in shares) at Sep. 30, 2023 | 56,810,559 | |||||
[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, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 196,712 | $ 72,950 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 42,019 | 37,312 |
Loss (gain) from exchange rate fluctuations | (8,170) | 58,100 |
Stock-based compensation expenses | 115,015 | 106,932 |
Impairment of goodwill and intangible assets | 0 | 4,008 |
Deferred income taxes, net | (18,199) | (3,822) |
Other items | 6,915 | 8,594 |
Changes in assets and liabilities: | ||
Inventories, net | (437,801) | (188,579) |
Prepaid expenses and other assets | 19,822 | (55,478) |
Trade receivables, net | (40,011) | (377,089) |
Trade payables, net | (53,996) | 53,683 |
Employees and payroll accruals | 12,099 | 12,119 |
Warranty obligations | 130,863 | 82,025 |
Deferred revenues and customers advances | 18,580 | 41,440 |
Accrued expenses and other liabilities, net | (24,051) | 67,789 |
Net cash used in operating activities | (40,203) | (80,016) |
Cash flows from investing activities: | ||
Investment in available-for-sale marketable securities | (214,516) | (461,491) |
Proceeds from sales and maturities of available-for-sale marketable securities | 194,617 | 178,415 |
Purchase of property, plant and equipment | (130,024) | (125,085) |
Business combinations, net of cash acquired | (16,653) | 0 |
Purchase of intangible assets | (10,600) | 0 |
Disbursements for loans receivables | (13,000) | 0 |
Investment in privately-held companies | (8,000) | 0 |
Proceeds from governmental grant | 6,796 | 0 |
Proceeds from sale of a privately-held company | 0 | 24,175 |
Other investing activities | 3,193 | 3,472 |
Net cash used in investing activities | (188,187) | (380,514) |
Cash flows from financing activities: | ||
Tax withholding in connection with stock-based awards, net | (9,267) | (4,686) |
Payment of finance lease liability | (2,123) | (2,109) |
Proceeds from secondary public offering, net of issuance costs | 0 | 650,526 |
Other financing activities | 85 | 3,404 |
Net cash provided by (used in) financing activities | (11,305) | 647,135 |
Increase (decrease) in cash and cash equivalents | (239,695) | 186,605 |
Cash and cash equivalents at the beginning of the period | 783,112 | 530,089 |
Effect of exchange rate differences on cash and cash equivalents | 7,705 | (38,365) |
Cash and cash equivalents at the end of the period | 551,122 | 678,329 |
Supplemental disclosure of non-cash activities: | ||
Purchase of intangible assets and business combinations | 11,307 | 0 |
Right-of-use asset recognized with a corresponding lease liability | 17,658 | 43,274 |
Purchase of property, plant and equipment | $ 19,574 | $ 16,008 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2023 | |
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 solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current (DC) from the PV module to alternating current (AC) including the Company’s Energy Hub inverter which supports, among other things, connection to a DC-coupled battery for full or partial home backup, and optional connection to the Company's smart EV charger, (iii) a remote cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters to enable customers and system owners, to monitor and manage the solar PV system (iv) a residential storage and backup solution which includes a company designed and manufactured lithium-ion DC-coupled battery that is used to increase energy independence and maximize self-consumption for homeowners including a battery, and (v) additional smart energy management solutions. 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 acquisitions. The Company now offers a variety of energy solutions, which include lithium-ion cells, batteries, and energy storage systems (“Energy Storage”), full powertrain kits for electric vehicles, or EVs (“e-Mobility”), as well as automated machines for industrial use (“Automation Machines”). On April 6, 2023, the Company completed the acquisition of all outstanding shares of Hark Systems Ltd. ("Hark"), a UK-based energy IoT company for the commercial and industrial ("C&I") sector, which operates under the newly established consulting segment (see note 2 c. 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, 2022, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2023, have been applied consistently in these unaudited interim condensed consolidated financial statements. Certain prior year amounts have been reclassified to conform to current year presentation. d. 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. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. 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. As of September 30, 2023 December 31, 2022 40.9% 34.3% In the second quarter of 2022, the Company announced the opening of “Sella 2”, a two gigawatt-hour (GWh) Li-Ion battery cell manufacturing facility located in South Korea. Sella 2 began producing and shipping cells at the end of 2022 and is expected to reach full manufacturing capacity in early 2024. Sella 2 is the Company's second owned manufacturing facility following the establishment of Sella 1 in 2020. Sella 1 is the Company's manufacturing facility in the North of Israel that produces power optimizers and inverters for the Company's solar activities. f. New accounting standards updates: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued or newly effective standards were not applicable to the Company, did not have a material impact on the condensed consolidated financial statements or are not expected to have a material impact on the condensed consolidated financial statements. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE BUSINESS COMBINATIONS On April 6, 2023, the Company completed the acquisition of all outstanding shares of Hark Systems Ltd. ("Hark"), a UK-based energy IoT company for the commercial and industrial ("C&I") sector for approximately $18,346 in cash. Hark's platform is expected to enable the Company to offer its commercial and industrial customers expanded capabilities in energy management and connectivity, including identification of potential energy savings, detection of anomalies in assets’ energy consumption, and optimization of energy usage and carbon emissions through load orchestration and storage control. Pursuant to ASC 805, "Business Combination", the Company accounted for the Hark acquisition as a business combination using the acquisition method of accounting. Identifiable assets and liabilities of Hark, including identifiable intangible assets, were recorded based on their estimated fair values as of the date of the closing of the acquisition. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. The Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date. Such preliminary valuation required estimates and assumptions including, but not limited to, estimating future cash flows and direct costs in addition to developing the appropriate discount rates and current market profit margins. The Company’s management believes the fair values recognized for the assets acquired and the liabilities assumed were based on reasonable estimates and assumptions. The following table summarizes the preliminary fair values estimation of assets acquired and liabilities assumed as of the date of the acquisition: Amount Weighted Average Useful Life (In years) Cash $ 448 Net liabilities assumed (1,837 ) Identified intangible assets: Current technology 6,576 5 Customer relationships 283 1 Trade name 610 5 Goodwill 12,266 Total $ 18,346 Acquisition costs were immaterial and are included in general and administrative expenses in the consolidated statements of income. Goodwill generated from this acquisition was primarily attributable to the assembled workforce and expected post-acquisition synergies from combining Hark platform with the Company's product offering to its commercial and industrial customers. All of the Goodwill was assigned to the new Consulting segment (see Note 21 The results of Hark have been included in the Company's consolidated statements of income (loss) |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3 MARKETABLE SECURITIES The following is a summary of available-for-sale marketable securities as of September 30, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Matures within one year: Corporate bonds $ 449,162 $ 227 $ (8,838 ) $ 440,551 U.S. Treasury securities 27,951 - (200 ) 27,751 Non-U.S. Government securities 9,123 - (150 ) 8,973 486,236 227 (9,188 ) 477,275 Matures after one year: Corporate bonds 400,408 49 (10,950 ) 389,507 U.S. Treasury securities 2,413 - (43 ) 2,370 U.S. Government agency securities 42,477 - (493 ) 41,984 Non-U.S. Government securities 2,401 - (123 ) 2,278 447,699 49 (11,609 ) 436,139 Total $ 933,935 $ 276 $ (20,797 ) $ 913,414 The following is a summary of available-for-sale marketable securities as of December 31, 2022: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Matures within one year: Corporate bonds $ 222,482 $ - $ (4,657 ) $ 217,825 U.S. Treasury securities 15,963 - (284 ) 15,679 Non-U.S. Government securities 7,882 - (269 ) 7,613 246,327 - (5,210 ) 241,117 Matures after one year: Corporate bonds 657,238 80 (26,460 ) 630,858 U.S. Treasury securities 9,939 - (261 ) 9,678 Non-U.S. Government securities 5,311 - (356 ) 4,955 672,488 80 (27,077 ) 645,491 Total $ 918,815 $ 80 $ (32,287 ) $ 886,608 Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2023 2022 $2,807 $29,235 $125 $723 There were no proceeds from sales of available-for-sale marketable securities during the three months ended September 30, 2023 Proceeds from sales of available-for-sale marketable securities during the three months ended September 30, 2022 $5,811 $121 As of September 30, 2023 December 31, 2022 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 4: INVENTORIES, NET September 30, 2023 December 31, 2022 Raw materials $ 420,281 $ 503,257 Work in process 26,801 23,407 Finished goods 730,723 202,537 Total inventories, net $ 1,177,805 $ 729,201 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS September 30, 2023 December 31, 2022 Vendor non-trade receivables (1) $ 94,180 $ 147,597 Government authorities 70,951 55,670 Loan receivables (2) 8,125 - Interest from marketable securities 7,162 6,235 Prepaid expenses and other 37,302 31,580 Total prepaid expenses and other current assets $ 217,720 $ 241,082 (1) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues. (2) Loan receivables is a loan to a third party. The loan will be repaid on a monthly basis with an additional agreed interest for the long term portion of the loan. See Note 8 for additional information. The loan is measured at its amortized cost and is subjected to the Company's credit risk policy as stated in the most recent 10-K filing. Expected provision for credit loss regarding this loan was immaterial. The amortized cost of the loan receivable approximates its fair value as of September 30, 2023. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6: INTANGIBLE ASSETS, NET Acquired intangible assets consisted of the following as of September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Intangible assets with finite lives: Current Technology $ 33,974 $ 29,196 Customer relationships 3,058 2,958 Trade names 3,671 3,287 Assembled workforce 4,484 3,575 Patents and licenses* 22,000 1,400 Gross intangible assets 67,187 40,416 Less - accumulated amortization (25,240 ) (20,487 ) Total intangible assets, net $ 41,947 $ 19,929 * See Note 16 For the three months ended September 30, 2023 2022 $2,663 $2,464 For the nine months ended September 30, 2023 2022 $5,901 $7,741 Expected future amortization expenses of intangible assets as of September 30, 2023 2023 $ 2,351 2024 8,735 2025 7,834 2026 7,281 2027 4,134 2028 and thereafter 11,612 $ 41,947 |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 7: GOODWILL Changes in the carrying amount of goodwill for the period ended September 30, 2023 Solar All other Total Goodwill at December 31, 2022 $ 28,768 $ 2,421 $ 31,189 Changes during the year: Acquisitions - 12,266 12,266 Foreign currency adjustments (1,882 ) (372 ) (2,254 ) Goodwill at September 30, 2023 $ 26,886 $ 14,315 $ 41,201 As of September 30, 2023 |
OTHER LONG TERM ASSETS
OTHER LONG TERM ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets, Noncurrent [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 8: OTHER LONG TERM ASSETS September 30, 2023 December 31, 2022 Cloud computing arrangements $ 9,898 $ 3,457 Severance pay fund 8,275 8,799 Investments in privately held companies (1) (2) 8,000 1,863 Loan receivables 4,875 - Prepayments 3,799 2,961 Other 1,256 1,726 Total other long term assets $ 36,103 $ 18,806 (1) In January 2023, the Company completed an investment of $5,500 in the common stock of a privately-held company which represents 34.8% of its outstanding shares. The Company accounted for this investment using the equity method of accounting. The Company's share of net earnings or losses in the nine months ended September 30, 2023 was immaterial. (2) In April and July of 2023, the Company completed a total investment of $2,500 in the preferred stock of a privately-held company which represents 4.5% of its outstanding shares on a fully diluted basis. The Company accounted for this investment as an equity investment without readily determinable fair values. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 9: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the nine months ended September 30, 2023 As of September 30, 2023 38 million 622 million In addition to the above-mentioned cash flow hedge transactions, the Company occasionally enters into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the USD. 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, under " Financial income (expense), net As of September 30, 2023, the Company entered into put and call option contracts to sell Euro ("EUR") for USD in the amount of EUR 120 million. The Company classifies cash flows related to its hedging The fair values of outstanding derivative instruments were as follows: Balance sheet location September 30, 2023 December 31, 2022 Derivative assets of options and forward contracts: Designated cash flow hedges Prepaid expenses and other current assets $ 87 $ - Non-designated hedges Prepaid expenses and other current assets 4,786 - Total derivative assets $ 4,873 $ - Derivative liabilities of options and forward contracts: Designated cash flow hedges Accrued expenses and other current liabilities $ (2,966 ) $ (1,874 ) Gains (losses) on derivative instruments are summarized below: Three Months Ended September 30, Nine Months Ended September 30, Affected line item 2023 2022 2023 2022 Foreign exchange contracts Non Designated Hedging Instruments Condensed Consolidated Statements of Income (loss) - Financial income (expense), net $ 5,841 $ 1,211 $ 5,841 $ 5,154 Designated Hedging Instruments Condensed Consolidated Statements of Comprehensive Income (loss) - Cash flow hedges $ (2,713 ) $ (1,399 ) $ (6,861 ) $ (8,928 ) See Note 17 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10: FAIR VALUE MEASUREMENTS In accordance with ASC 820, "Fair Value Measurement" the Company measures its cash equivalents and marketable securities, at fair value using the market approach valuation technique. Cash and cash equivalents are classified within Level 1 because these assets are valued using quoted market prices. Marketable securities and foreign currency derivative contracts are classified within level 2 due to these assets being valued by alternative pricing sources and models utilizing market observable inputs. The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy: Fair value measurements as of Description Fair Value Hierarchy September 30, 2023 December 31, 2022 Assets: Cash and cash equivalents: Cash Level 1 $ 508,057 $ 695,004 Money market mutual funds Level 1 $ 37,885 $ 25,149 Deposits Level 1 $ 5,180 $ 62,959 Derivative instruments Level 2 $ 4,873 $ - Short-term marketable securities: Corporate bonds Level 2 $ 440,551 $ 217,825 U.S. Treasury securities Level 2 $ 27,751 $ 15,679 Non - U.S. Government securities Level 2 $ 8,973 $ 7,613 Long-term marketable securities: Corporate bonds Level 2 $ 389,507 $ 630,858 U.S. Treasury securities Level 2 $ 2,370 $ 9,678 U.S. Government agency securities Level 2 41,984 - Non - U.S. Government securities Level 2 $ 2,278 $ 4,955 Liabilities: Derivative instruments Level 2 $ (2,966 ) $ (1,874 ) |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | NOTE 11: WARRANTY OBLIGATIONS Changes in the Company’s product warranty obligations for the three and nine September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, at the beginning of the period $ 488,587 $ 324,176 $ 385,057 $ 265,160 Additions and adjustments to cost of revenues 85,171 56,815 266,372 163,783 Usage and current warranty expenses (57,946 ) (34,852 ) (135,617 ) (82,804 ) Balance, at end of the period 515,812 346,139 515,812 346,139 Less current portion (174,125 ) (97,222 ) (174,125 ) (97,222 ) Long term portion $ 341,687 $ 248,917 $ 341,687 $ 248,917 |
DEFERRED REVENUES AND CUSTOMERS
DEFERRED REVENUES AND CUSTOMERS ADVANCES | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUES AND CUSTOMERS ADVANCES | NOTE 12: DEFERRED REVENUES AND CUSTOMERS ADVANCES Deferred revenues consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products. Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized. Changes in the balances of deferred revenues and customer advances during the period are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, at the beginning of the period $ 232,828 $ 200,695 $ 213,577 $ 169,345 Revenue recognized (19,869 ) (12,731 ) (25,819 ) (20,974 ) Increase in deferred revenues and customer advances 21,130 20,756 46,331 60,349 Balance, at the end of the period 234,089 208,720 234,089 208,720 Less current portion (22,064 ) (31,896 ) (22,064 ) (31,896 ) Long term portion $ 212,025 $ 176,824 $ 212,025 $ 176,824 The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2023: 2023 $ 13,214 2024 11,665 2025 11,094 2026 10,898 2027 8,968 Thereafter 178,250 Total deferred revenues $ 234,089 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 13: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES September 30, 2023 December 31, 2022 Accrued expenses $ 123,935 $ 117,638 Government authorities 49,323 67,514 Operating lease liabilities 17,064 16,183 Accrual for sales incentives 6,306 6,790 Finance lease 3,034 3,263 Other 3,786 2,724 Total accrued expenses and other current liabilities $ 203,448 $ 214,112 |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES | NOTE 14: 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 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 to, but excluding the fundamental change 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 September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Liability: Principal $ 632,500 $ 632,500 Unamortized issuance costs (5,853 ) (8,049 ) Net carrying amount $ 626,647 $ 624,451 For the three months ended September 30, 2023 and 2022 the Company recorded amortized debt issuance costs related to the Notes in the amount of $733 and $730, respectively. For the nine months ended September 30, 2023 and 2022 the Company recorded amortized debt issuance costs related to the Notes in the amount of $2,196 and $2,186, respectively. As of September 30, 2023, the unamortized issuance costs of the Notes will be amortized over the remaining term of approximately 2 years. The annual effective interest rate of the Notes is 0.47%. As of September 30, 2023, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $578,048. 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 September 30, 2023, the if-converted value of the Notes did not exceed the principal amount. |
STOCK CAPITAL
STOCK CAPITAL | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Payment Arrangement [Abstract] | |
STOCK CAPITAL | NOTE 15: 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. Secondary public offering: On March 17, 2022, the Company offered and sold 2,300,000 shares of the Company’s common stock, at a public offering price of $295.00 per share. The shares of Common Stock were issued and sold in a registered offering pursuant to the underwriting agreement dated March 17, 2022, among the Company, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC (the “Underwriting Agreement”). All of the offered shares were issued at closing, including 300,000 shares of Common Stock that were issued and sold pursuant to the underwriters’ option to purchase additional shares under the Underwriting Agreement, which was exercised in full on March 18, 2022. The net proceeds to the Company were $650,526 after deducting underwriters' discounts of $27,140 and commissions of $834. c. Equity 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 grants 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, restricted stock units ("RSU"), performance stock units ("PSU"), and other share-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries. As of September 30, 2023 20,853,755 11,845,915 The Share Reserve will automatically increase on January 1 st st st st st The Company granted under its 2015 Plan, PSU awards to certain employees and officers which vest upon the achievement of certain performance or market conditions subject to their continued employment with the Company . The market condition for the PSUs is based on the Company’s total shareholder return ("TSR") compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period. The Company uses a Monte-Carlo simulation to determine the grant date fair value for these awards, which takes into consideration the market price of a share of the Company’s common stock on the date of grant less the present value of dividends expected during the requisite service period, as well as the possible outcomes pertaining to the TSR market condition. The Company recognizes such compensation expenses on an accelerated vesting method. 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, 2023 8,617,974 A summary of the activity in stock options and related information is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic Value Outstanding as of December 31, 2022 339,029 $ 50.64 4.86 $ 79,414 Exercised (11,804 ) 15.41 - 2,789 Outstanding as of September 30, 2023 327,225 $ 51.91 4.20 $ 28,935 Vested and expected to vest as of September 30, 2023 326,961 $ 51.79 4.20 $ 28,931 Exercisable as of September 30, 2023 312,711 $ 44.70 4.08 $ 28,736 The intrinsic value is the amount by which the closing price of the Company’s common stock on September 30, 2023 of $129.51 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of in-the-money options. A summary of the activity in the RSUs and related information is as follows: Number of RSUs Weighted average grant date fair value Unvested as of December 31, 2022 1,488,515 $ 232.05 Granted 300,567 234.72 Vested (516,692 ) 192.22 Forfeited (69,939 ) 262.12 Unvested as of September 30, 2023 1,202,451 $ 248.09 A summary of the activity in the PSUs and related information is as follows: Number of PSUs Weighted average grant date fair value Unvested as of December 31, 2022 149,232 $ 295.88 Granted 32,348 314.22 Vested (107,165 ) 296.76 Unvested as of September 30, 2023 74,415 $ 302.58 d. Employee Stock Purchase Plan ("ESPP"): The Company adopted an ESPP effective upon the consummation of the IPO. As of September 30, 2023 4,150,380 st The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 15% of their salaries to purchase common stock up to an aggregate limit of $15 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, 2023 780,370 As of September 30, 2023 3,370,010 In accordance with ASC No. 718, the ESPP is compensatory and, as such, results in recognition of compensation cost. e. Stock-based compensation expenses: The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income for the three and nine September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expenses: Cost of revenues $ 5,882 $ 4,660 $ 17,732 $ 15,008 Research and development 16,481 14,553 50,962 46,357 Selling and marketing 7,739 9,341 23,640 23,089 General and administrative 6,713 7,197 22,681 22,478 Total stock-based compensation expenses $ 36,815 $ 35,751 $ 115,015 $ 106,932 Stock-based compensation capitalized: Inventory $ 655 $ 765 $ 1,666 $ 765 Other long-term assets 422 116 1,259 213 Total stock-based compensation capitalized $ 1,077 $ 881 $ 2,925 $ 978 The total tax benefit associated with stock-based compensation for the three months ended September 30, 2023 2022 $3,124 $2,646 three months ended September 30, 2023 2022 $1,589 $3,060 The total tax benefit associated with stock-based compensation for the nine months ended September 30, 2023 2022 $11,422 $9,182 nine months ended September 30, 2023 2022 $7,050 $8,871 As of September 30, 2023 $290,401 October 1, 2023 August 31, 2027 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 16: COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of September 30, 2023 $5,804 $1,821 b. Contractual purchase obligations: The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories and other purchase orders, which cannot be canceled without penalty. 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 September 30, 2023 $1,116,593 $13,463 As of September 30, 2023 $120,572 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 SolarEdge's 12.5kW - 27.6kW inverters infringed on two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5 million (approximately $5,830) for both patents. The Company challenged the validity of both patents and the first patent was invalidated and SMA’s appeal on the matter was denied in January 2023. In August 2021, the German Patent Court rendered SMA's second patent invalid, and this invalidity has been appealed by SMA. In May 2023 the Federal Supreme Court as final instance in the nullity proceedings revoked the second patent, and SMA withdrew its infringement complaint. On July 28, 2022, the Company and its subsidiary SolarEdge Technologies Ltd were served with complaints filed by Ampt LLC ("Ampt") in the International Trade Commission (the “Commission”) pursuant to Section 337 of the Tariff Act of 1930, as amended, and related lawsuits in the District Court for the District of Delaware alleging patent infringement against the Company. On May 9, 2023, Ampt and the Company entered into a settlement agreement pursuant to which the parties agreed to dismiss all proceedings related to the complaints, and the parties have granted each other 10-year cross-licenses for certain intellectual property. As of September 30, 2023 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 17: ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in accumulated balances of other comprehensive gain (loss), net of taxes: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized gains (losses) on available-for-sale marketable securities Beginning balance $ (18,611 ) $ (18,777 ) $ (25,449 ) $ (4,709 ) Revaluation 3,216 (12,424 ) 11,579 (31,064 ) Tax on revaluation (654 ) 2,694 (2,257 ) 6,522 Other comprehensive income (loss) before reclassifications 2,562 (9,730 ) 9,322 (24,542 ) Reclassification - 166 107 1,010 Tax on reclassification - (15 ) (29 ) (115 ) Losses reclassified from accumulated other comprehensive income (loss) - 151 78 895 Net current period other comprehensive income (loss) 2,562 (9,579 ) 9,400 (23,647 ) Ending balance $ (16,049 ) $ (28,356 ) $ (16,049 ) $ (28,356 ) Unrealized gains (losses) on cash flow hedges Beginning balance $ (1,776 ) $ (3,642 ) $ (1,761 ) $ 874 Revaluation (2,896 ) (1,569 ) (7,321 ) (10,094 ) Tax on revaluation 183 170 460 1,166 Other comprehensive income (loss) before reclassifications (2,713 ) (1,399 ) (6,861 ) (8,928 ) Reclassification 1,910 1,422 6,316 4,833 Tax on reclassification (120 ) (163 ) (393 ) (561 ) Losses reclassified from accumulated other comprehensive income (loss) 1,790 1,259 5,923 4,272 Net current period other comprehensive income (loss) (923 ) (140 ) (938 ) (4,656 ) Ending balance $ (2,699 ) $ (3,782 ) $ (2,699 ) $ (3,782 ) Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature Beginning balance $ (50,695 ) $ (52,750 ) $ (37,960 ) $ (17,420 ) Revaluation (9,989 ) (30,799 ) (22,724 ) (66,129 ) Ending balance $ (60,684 ) $ (83,549 ) $ (60,684 ) $ (83,549 ) Unrealized gains (losses) on foreign currency translation Beginning balance $ (6,350 ) $ (14,451 ) $ (7,939 ) $ (6,064 ) Revaluation 1,833 1,872 3,422 (6,515 ) Ending balance $ (4,517 ) $ (12,579 ) $ (4,517 ) $ (12,579 ) Total $ (83,949 ) $ (128,266 ) $ (83,949 ) $ (128,266 ) The following table summarizes the reclassification out of "Accumulated other comprehensive loss", net of taxes: Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement of Income 2023 2022 2023 2022 Unrealized gains (losses) on available-for-sale marketable securities $ - $ (166 ) $ (107 ) $ (1,010 ) Financial income (expense), net - 15 29 115 Income taxes $ - $ (151 ) $ (78 ) $ (895 ) Total, net of income taxes Unrealized gains (losses) on cash flow hedges, net (219 ) (157 ) (734 ) (542 ) Cost of revenues (1,138 ) (808 ) (3,789 ) (2,841 ) Research and development (256 ) (242 ) (791 ) (662 ) Sales and marketing (297 ) (215 ) (1,002 ) (788 ) General and administrative $ (1,910 ) $ (1,422 ) $ (6,316 ) $ (4,833 ) Total, before income taxes 120 163 393 561 Income taxes (1,790 ) (1,259 ) (5,923 ) (4,272 ) Total, net of income taxes Total reclassifications for the period $ (1,790 ) $ (1,410 ) $ (6,001 ) $ (5,167 ) |
OTHER OPERATING EXPENSE (INCOME
OTHER OPERATING EXPENSE (INCOME) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE (INCOME) | NOTE 18: OTHER OPERATING EXPENSE (INCOME) The following table presents the expenses ( income Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Impairment of goodwill and intangible assets $ - $ - $ - $ 4,008 Sale of assets - (2,705 ) (1,434 ) (2,705 ) Impairment of property, plant and equipment - (19 ) - 660 Total other operating expense (income), net $ - $ (2,724 ) $ (1,434 ) $ 1,963 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 19: INCOME TAXES The effective tax rate for the three months ended September 30, 2023 2022 (143.6)% 58.0% The change in effective tax rate in the three months ended September 30, 2023 The effective tax rate for the nine months ended September 30, 2023 and 2022 was 33.6% 42.1% The lower tax rate in the nine months ended September 30, 2023 compared to the corresponding period in 2022 is mainly due to the fact that the Company's income before tax, most of which is subject to tax rates lower than the US statutory rate, increased. Conversely, the IRC Section 174 R&D capitalization, and other expenses not recognized for GILTI purposes, did not increase in the same proportion. As of September 30, 2023 December 31, 2022 $3,155 $2,756 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 immaterial as of September 30, 2023 December 31, 2022 In August 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”), which includes several incentives intended to promote clean energy, battery and energy storage, electrical vehicles, and other solar products, and is expected to impact our business and operations. As part of such incentives the IRA, will among other things, extend the investment tax credit (“ITC”) through 2034 and is therefore expected to increase the demand for solar products. The IRA is expected to further incentivize residential and commercial solar customers and developers due to the inclusion of a tax credit for qualifying energy projects of up to 30%. Since these regulations are new and their implementation is still pending administrative guidance from the Internal Revenue Service and U.S. Treasury Department, the Company will be examining the benefits that may be available to it, such as the availability of tax credits for domestic manufacturers, in the coming months. During the third quarter, the Company began manufacturing inverters in the U.S. . |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Net income per share: | |
EARNINGS (LOSS) PER SHARE | NOTE 20: EARNINGS (LOSS) PER SHARE The following table presents the computation of basic and diluted earnings Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic: Numerator: Net income (loss) $ (61,176 ) $ 24,743 $ 196,712 $ 72,950 Denominator: Shares used in computing net EPS of common stock, basic 56,671,504 55,730,328 56,435,880 54,788,734 Diluted: Numerator: Net income (loss) attributable to common stock, basic $ (61,176 ) $ 24,743 $ 196,712 $ 72,950 Notes due 2025 - 551 1,608 1,651 Net income (loss) attributable to common stock, diluted $ (61,176 ) $ 25,294 $ 198,320 $ 74,601 Denominator: Shares used in computing net EPS of common stock, basic 56,671,504 55,730,328 56,435,880 54,788,734 Notes due 2025 - 2,276,818 2,276,818 2,276,818 Effect of stock-based awards - 740,392 584,725 820,489 Shares used in computing net EPS of common stock, diluted 56,671,504 58,747,538 59,297,423 57,886,041 Earnings (loss) per share: Basic $ (1.08 ) $ 0.44 $ 3.49 $ 1.33 Diluted $ (1.08 ) $ 0.43 $ 3.34 $ 1.29 Shares excluded from the calculation of net diluted due to their anti-dilutive effect 3,349,756 138,916 1,251,243 181,802 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 21: SEGMENT INFORMATION Following the discontinuation of Critical Power in June 2022, the Company operates in five different operating segments: Solar, Energy Storage, e-Mobility, Automation Machines, and the newly formed Consulting segment. 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. 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, related to ASC 606, “Revenue from Contracts with Customers”. Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased intangible assets, impairments of goodwill and intangible assets, 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 co-mingled. 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 and a residential storage solution, compatible with the Company’s Energy Hub inverter, intended to store and supply power for back-up and to maximize self-consumption. The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries, and cloud‑based monitoring platform The “All other” category includes the design, development, manufacturing, and sales of energy storage products, e-Mobility products, automated machines, and consulting services. The following tables present information on reportable segments profit (loss) for the period presented: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Solar All other Solar All other Revenues $ 676,410 $ 48,680 $ 2,532,275 $ 127,605 Cost of revenues 514,289 59,780 1,723,337 153,927 Gross profit (loss) 162,121 (11,100 ) 808,938 (26,322 ) Research and development 56,293 6,979 174,218 20,370 Sales and marketing 30,514 1,777 95,795 5,367 General and administrative 29,637 2,756 79,525 9,522 Segments profit (loss) $ 45,677 $ (22,612 ) $ 459,400 $ (61,581 ) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Solar All other Solar All other Revenues $ 788,610 $ 47,954 $ 2,084,206 $ 134,931 Cost of revenues 565,403 42,594 1,484,303 125,883 Gross profit 223,207 5,360 599,903 9,048 Research and development 47,943 6,861 140,215 23,378 Sales and marketing 30,996 2,202 85,220 8,059 General and administrative 17,534 2,795 49,779 10,209 Segments profit (loss) $ 126,734 $ (6,498 ) $ 324,689 $ (32,598 ) 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, 2023 2022 2023 2022 Solar revenues $ 676,410 $ 788,610 $ 2,532,275 $ 2,084,206 All other revenues 48,680 47,954 127,605 134,931 Revenues from finance component 215 159 604 440 Consolidated revenues $ 725,305 $ 836,723 $ 2,660,484 $ 2,219,577 The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Solar segment profit $ 45,677 $ 126,734 $ 459,400 $ 324,689 All other segment loss (22,612 ) (6,498 ) (61,581 ) (32,598 ) Segments operating profit 23,065 120,236 397,819 292,091 Amounts not allocated to segments: Stock based compensation expenses (36,815 ) (35,751 ) (115,015 ) (106,932 ) Amortization related to business combinations (2,750 ) (2,559 ) (6,164 ) (8,039 ) Impairment of goodwill and intangible assets - - - (4,008 ) Disposal of assets related to Critical Power - - - (4,314 ) Sale of Critical Power assets - 1,559 - 1,559 Other unallocated expenses (income), net (226 ) 922 1,146 926 Consolidated operating income (expense) $ (16,726 ) $ 84,407 $ 277,786 $ 171,283 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22: SUBSEQUENT EVENTS 1. On November 1, 2023, the Company announced the approval by the Board of Directors of a share repurchase program which authorizes the repurchase of up to $300 million of the Company’s common stock. Under the share repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, privately negotiated transactions, accelerated share repurchase programs and/or a non-discretionary trading plan or other means, including through 10b5-1 trading plans, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the share repurchase program are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The program does not obligate the Company to acquire any amount of common stock, it may be suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and will expire on December 31, 2024. 2. In October 2023, the Company decided to discontinue its light commercial e-Mobility ("LCV") activity related to the supply of products to its sole customer. 3. On November 3, 2023, Daphne Shen, a purported stockholder of the Company, filed a proposed class action complaint for violation of federal securities laws, individually and putatively on behalf of all others similarly situated, in the U.S District Court of the Southern District of New York against the Company, the Company’s CEO and the Company’s CFO. The complaint alleges that the Company violated various securities laws and seeks class certification, damages, interest, attorneys’ fees, and other relief. Due to the early stage of this proceeding, we cannot reasonably estimate the potential range of loss, if any. The Company disputes the allegations of wrongdoing and intends to vigorously defend against them. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ (61,176) | $ 119,510 | $ 138,378 | $ 24,743 | $ 15,084 | $ 33,123 | $ 196,712 | $ 72,950 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 10, 2023, Mr. Meir Adest adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 45,095 shares of Company common stock, 1,458 of which shares are to be acquired upon the exercise of employee stock options between November 9, 2023 and the earlier of March 29, 2024 or when 45,095 shares are sold, subject to certain conditions. |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 10, 2023 |
Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Name | Mr. Meir Adest |
Rule 10b5-1 Arrangement Adopted | true |
Meir Adest Trading Arrangement Common Stock [Member] | Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 45,095 |
Meir Adest Trading Arrangement Stock Options [Member] | Meir Adest [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 1,458 |
GENERAL (Policies)
GENERAL (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | c. 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, 2022, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2023, have been applied consistently in these unaudited interim condensed consolidated financial statements. Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of estimates | d. 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. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. |
Concentrations of supply risks | 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. As of September 30, 2023 December 31, 2022 40.9% 34.3% In the second quarter of 2022, the Company announced the opening of “Sella 2”, a two gigawatt-hour (GWh) Li-Ion battery cell manufacturing facility located in South Korea. Sella 2 began producing and shipping cells at the end of 2022 and is expected to reach full manufacturing capacity in early 2024. Sella 2 is the Company's second owned manufacturing facility following the establishment of Sella 1 in 2020. Sella 1 is the Company's manufacturing facility in the North of Israel that produces power optimizers and inverters for the Company's solar activities. |
New accounting standards updates | f. New accounting standards updates: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued or newly effective standards were not applicable to the Company, did not have a material impact on the condensed consolidated financial statements or are not expected to have a material impact on the condensed consolidated financial statements. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of fair value estimation of assets acquired and liabilities assumed [Table Text block] | Amount Weighted Average Useful Life (In years) Cash $ 448 Net liabilities assumed (1,837 ) Identified intangible assets: Current technology 6,576 5 Customer relationships 283 1 Trade name 610 5 Goodwill 12,266 Total $ 18,346 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Securities [Abstract] | |
Schedule of available-for-sale marketable securities | The following is a summary of available-for-sale marketable securities as of September 30, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Matures within one year: Corporate bonds $ 449,162 $ 227 $ (8,838 ) $ 440,551 U.S. Treasury securities 27,951 - (200 ) 27,751 Non-U.S. Government securities 9,123 - (150 ) 8,973 486,236 227 (9,188 ) 477,275 Matures after one year: Corporate bonds 400,408 49 (10,950 ) 389,507 U.S. Treasury securities 2,413 - (43 ) 2,370 U.S. Government agency securities 42,477 - (493 ) 41,984 Non-U.S. Government securities 2,401 - (123 ) 2,278 447,699 49 (11,609 ) 436,139 Total $ 933,935 $ 276 $ (20,797 ) $ 913,414 The following is a summary of available-for-sale marketable securities as of December 31, 2022: Amortized cost Gross unrealized gains Gross unrealized losses Fair value Matures within one year: Corporate bonds $ 222,482 $ - $ (4,657 ) $ 217,825 U.S. Treasury securities 15,963 - (284 ) 15,679 Non-U.S. Government securities 7,882 - (269 ) 7,613 246,327 - (5,210 ) 241,117 Matures after one year: Corporate bonds 657,238 80 (26,460 ) 630,858 U.S. Treasury securities 9,939 - (261 ) 9,678 Non-U.S. Government securities 5,311 - (356 ) 4,955 672,488 80 (27,077 ) 645,491 Total $ 918,815 $ 80 $ (32,287 ) $ 886,608 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories, net | September 30, 2023 December 31, 2022 Raw materials $ 420,281 $ 503,257 Work in process 26,801 23,407 Finished goods 730,723 202,537 Total inventories, net $ 1,177,805 $ 729,201 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | September 30, 2023 December 31, 2022 Vendor non-trade receivables (1) $ 94,180 $ 147,597 Government authorities 70,951 55,670 Loan receivables (2) 8,125 - Interest from marketable securities 7,162 6,235 Prepaid expenses and other 37,302 31,580 Total prepaid expenses and other current assets $ 217,720 $ 241,082 (1) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues. (2) Loan receivables is a loan to a third party. The loan will be repaid on a monthly basis with an additional agreed interest for the long term portion of the loan. See Note 8 for additional information. The loan is measured at its amortized cost and is subjected to the Company's credit risk policy as stated in the most recent 10-K filing. Expected provision for credit loss regarding this loan was immaterial. The amortized cost of the loan receivable approximates its fair value as of September 30, 2023. |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquired intangible assets | September 30, 2023 December 31, 2022 Intangible assets with finite lives: Current Technology $ 33,974 $ 29,196 Customer relationships 3,058 2,958 Trade names 3,671 3,287 Assembled workforce 4,484 3,575 Patents and licenses* 22,000 1,400 Gross intangible assets 67,187 40,416 Less - accumulated amortization (25,240 ) (20,487 ) Total intangible assets, net $ 41,947 $ 19,929 * See Note 16 |
Schedule of future amortization expense | 2023 $ 2,351 2024 8,735 2025 7,834 2026 7,281 2027 4,134 2028 and thereafter 11,612 $ 41,947 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill activity | Solar All other Total Goodwill at December 31, 2022 $ 28,768 $ 2,421 $ 31,189 Changes during the year: Acquisitions - 12,266 12,266 Foreign currency adjustments (1,882 ) (372 ) (2,254 ) Goodwill at September 30, 2023 $ 26,886 $ 14,315 $ 41,201 |
OTHER LONG TERM ASSETS (Tables)
OTHER LONG TERM ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other long term assets | September 30, 2023 December 31, 2022 Cloud computing arrangements $ 9,898 $ 3,457 Severance pay fund 8,275 8,799 Investments in privately held companies (1) (2) 8,000 1,863 Loan receivables 4,875 - Prepayments 3,799 2,961 Other 1,256 1,726 Total other long term assets $ 36,103 $ 18,806 (1) In January 2023, the Company completed an investment of $5,500 in the common stock of a privately-held company which represents 34.8% of its outstanding shares. The Company accounted for this investment using the equity method of accounting. The Company's share of net earnings or losses in the nine months ended September 30, 2023 was immaterial. (2) In April and July of 2023, the Company completed a total investment of $2,500 in the preferred stock of a privately-held company which represents 4.5% of its outstanding shares on a fully diluted basis. The Company accounted for this investment as an equity investment without readily determinable fair values. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of outstanding derivative instruments | Balance sheet location September 30, 2023 December 31, 2022 Derivative assets of options and forward contracts: Designated cash flow hedges Prepaid expenses and other current assets $ 87 $ - Non-designated hedges Prepaid expenses and other current assets 4,786 - Total derivative assets $ 4,873 $ - Derivative liabilities of options and forward contracts: Designated cash flow hedges Accrued expenses and other current liabilities $ (2,966 ) $ (1,874 ) |
Schedule of gains (losses) on derivative instruments recognized in our income statements | Three Months Ended September 30, Nine Months Ended September 30, Affected line item 2023 2022 2023 2022 Foreign exchange contracts Non Designated Hedging Instruments Condensed Consolidated Statements of Income (loss) - Financial income (expense), net $ 5,841 $ 1,211 $ 5,841 $ 5,154 Designated Hedging Instruments Condensed Consolidated Statements of Comprehensive Income (loss) - Cash flow hedges $ (2,713 ) $ (1,399 ) $ (6,861 ) $ (8,928 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Fair value measurements as of Description Fair Value Hierarchy September 30, 2023 December 31, 2022 Assets: Cash and cash equivalents: Cash Level 1 $ 508,057 $ 695,004 Money market mutual funds Level 1 $ 37,885 $ 25,149 Deposits Level 1 $ 5,180 $ 62,959 Derivative instruments Level 2 $ 4,873 $ - Short-term marketable securities: Corporate bonds Level 2 $ 440,551 $ 217,825 U.S. Treasury securities Level 2 $ 27,751 $ 15,679 Non - U.S. Government securities Level 2 $ 8,973 $ 7,613 Long-term marketable securities: Corporate bonds Level 2 $ 389,507 $ 630,858 U.S. Treasury securities Level 2 $ 2,370 $ 9,678 U.S. Government agency securities Level 2 41,984 - Non - U.S. Government securities Level 2 $ 2,278 $ 4,955 Liabilities: Derivative instruments Level 2 $ (2,966 ) $ (1,874 ) |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty obligations | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, at the beginning of the period $ 488,587 $ 324,176 $ 385,057 $ 265,160 Additions and adjustments to cost of revenues 85,171 56,815 266,372 163,783 Usage and current warranty expenses (57,946 ) (34,852 ) (135,617 ) (82,804 ) Balance, at end of the period 515,812 346,139 515,812 346,139 Less current portion (174,125 ) (97,222 ) (174,125 ) (97,222 ) Long term portion $ 341,687 $ 248,917 $ 341,687 $ 248,917 |
DEFERRED REVENUES AND CUSTOME_2
DEFERRED REVENUES AND CUSTOMERS ADVANCES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of balances of deferred revenues | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, at the beginning of the period $ 232,828 $ 200,695 $ 213,577 $ 169,345 Revenue recognized (19,869 ) (12,731 ) (25,819 ) (20,974 ) Increase in deferred revenues and customer advances 21,130 20,756 46,331 60,349 Balance, at the end of the period 234,089 208,720 234,089 208,720 Less current portion (22,064 ) (31,896 ) (22,064 ) (31,896 ) Long term portion $ 212,025 $ 176,824 $ 212,025 $ 176,824 |
Schedule estimated revenues expected to recognized in future to performance obligations | 2023 $ 13,214 2024 11,665 2025 11,094 2026 10,898 2027 8,968 Thereafter 178,250 Total deferred revenues $ 234,089 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | September 30, 2023 December 31, 2022 Accrued expenses $ 123,935 $ 117,638 Government authorities 49,323 67,514 Operating lease liabilities 17,064 16,183 Accrual for sales incentives 6,306 6,790 Finance lease 3,034 3,263 Other 3,786 2,724 Total accrued expenses and other current liabilities $ 203,448 $ 214,112 |
CONVERTIBLE SENIOR NOTES (Table
CONVERTIBLE SENIOR NOTES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of convertible senior notes | September 30, 2023 December 31, 2022 Liability: Principal $ 632,500 $ 632,500 Unamortized issuance costs (5,853 ) (8,049 ) Net carrying amount $ 626,647 $ 624,451 |
STOCK CAPITAL (Tables)
STOCK CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of activity in the share options granted to employees and members of board of directors | Number of options Weighted average exercise price Weighted average remaining contractual term in years Aggregate intrinsic Value Outstanding as of December 31, 2022 339,029 $ 50.64 4.86 $ 79,414 Exercised (11,804 ) 15.41 - 2,789 Outstanding as of September 30, 2023 327,225 $ 51.91 4.20 $ 28,935 Vested and expected to vest as of September 30, 2023 326,961 $ 51.79 4.20 $ 28,931 Exercisable as of September 30, 2023 312,711 $ 44.70 4.08 $ 28,736 |
Schedule of RSU activity | Number of RSUs Weighted average grant date fair value Unvested as of December 31, 2022 1,488,515 $ 232.05 Granted 300,567 234.72 Vested (516,692 ) 192.22 Forfeited (69,939 ) 262.12 Unvested as of September 30, 2023 1,202,451 $ 248.09 |
Schedule of recognized stock-based compensation expenses | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expenses: Cost of revenues $ 5,882 $ 4,660 $ 17,732 $ 15,008 Research and development 16,481 14,553 50,962 46,357 Selling and marketing 7,739 9,341 23,640 23,089 General and administrative 6,713 7,197 22,681 22,478 Total stock-based compensation expenses $ 36,815 $ 35,751 $ 115,015 $ 106,932 Stock-based compensation capitalized: Inventory $ 655 $ 765 $ 1,666 $ 765 Other long-term assets 422 116 1,259 213 Total stock-based compensation capitalized $ 1,077 $ 881 $ 2,925 $ 978 |
Option [Member] | Employees and members of board of directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of RSU activity | Number of PSUs Weighted average grant date fair value Unvested as of December 31, 2022 149,232 $ 295.88 Granted 32,348 314.22 Vested (107,165 ) 296.76 Unvested as of September 30, 2023 74,415 $ 302.58 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Schedule of changes in AOCI | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized gains (losses) on available-for-sale marketable securities Beginning balance $ (18,611 ) $ (18,777 ) $ (25,449 ) $ (4,709 ) Revaluation 3,216 (12,424 ) 11,579 (31,064 ) Tax on revaluation (654 ) 2,694 (2,257 ) 6,522 Other comprehensive income (loss) before reclassifications 2,562 (9,730 ) 9,322 (24,542 ) Reclassification - 166 107 1,010 Tax on reclassification - (15 ) (29 ) (115 ) Losses reclassified from accumulated other comprehensive income (loss) - 151 78 895 Net current period other comprehensive income (loss) 2,562 (9,579 ) 9,400 (23,647 ) Ending balance $ (16,049 ) $ (28,356 ) $ (16,049 ) $ (28,356 ) Unrealized gains (losses) on cash flow hedges Beginning balance $ (1,776 ) $ (3,642 ) $ (1,761 ) $ 874 Revaluation (2,896 ) (1,569 ) (7,321 ) (10,094 ) Tax on revaluation 183 170 460 1,166 Other comprehensive income (loss) before reclassifications (2,713 ) (1,399 ) (6,861 ) (8,928 ) Reclassification 1,910 1,422 6,316 4,833 Tax on reclassification (120 ) (163 ) (393 ) (561 ) Losses reclassified from accumulated other comprehensive income (loss) 1,790 1,259 5,923 4,272 Net current period other comprehensive income (loss) (923 ) (140 ) (938 ) (4,656 ) Ending balance $ (2,699 ) $ (3,782 ) $ (2,699 ) $ (3,782 ) Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature Beginning balance $ (50,695 ) $ (52,750 ) $ (37,960 ) $ (17,420 ) Revaluation (9,989 ) (30,799 ) (22,724 ) (66,129 ) Ending balance $ (60,684 ) $ (83,549 ) $ (60,684 ) $ (83,549 ) Unrealized gains (losses) on foreign currency translation Beginning balance $ (6,350 ) $ (14,451 ) $ (7,939 ) $ (6,064 ) Revaluation 1,833 1,872 3,422 (6,515 ) Ending balance $ (4,517 ) $ (12,579 ) $ (4,517 ) $ (12,579 ) Total $ (83,949 ) $ (128,266 ) $ (83,949 ) $ (128,266 ) |
Schedule of reclassifications out of AOCI | Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement of Income 2023 2022 2023 2022 Unrealized gains (losses) on available-for-sale marketable securities $ - $ (166 ) $ (107 ) $ (1,010 ) Financial income (expense), net - 15 29 115 Income taxes $ - $ (151 ) $ (78 ) $ (895 ) Total, net of income taxes Unrealized gains (losses) on cash flow hedges, net (219 ) (157 ) (734 ) (542 ) Cost of revenues (1,138 ) (808 ) (3,789 ) (2,841 ) Research and development (256 ) (242 ) (791 ) (662 ) Sales and marketing (297 ) (215 ) (1,002 ) (788 ) General and administrative $ (1,910 ) $ (1,422 ) $ (6,316 ) $ (4,833 ) Total, before income taxes 120 163 393 561 Income taxes (1,790 ) (1,259 ) (5,923 ) (4,272 ) Total, net of income taxes Total reclassifications for the period $ (1,790 ) $ (1,410 ) $ (6,001 ) $ (5,167 ) |
OTHER OPERATING EXPENSE (INCO_2
OTHER OPERATING EXPENSE (INCOME) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense (income) | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Impairment of goodwill and intangible assets $ - $ - $ - $ 4,008 Sale of assets - (2,705 ) (1,434 ) (2,705 ) Impairment of property, plant and equipment - (19 ) - 660 Total other operating expense (income), net $ - $ (2,724 ) $ (1,434 ) $ 1,963 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net income per share: | |
Schedule of computation of basic and diluted net earnings (loss) per share | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic: Numerator: Net income (loss) $ (61,176 ) $ 24,743 $ 196,712 $ 72,950 Denominator: Shares used in computing net EPS of common stock, basic 56,671,504 55,730,328 56,435,880 54,788,734 Diluted: Numerator: Net income (loss) attributable to common stock, basic $ (61,176 ) $ 24,743 $ 196,712 $ 72,950 Notes due 2025 - 551 1,608 1,651 Net income (loss) attributable to common stock, diluted $ (61,176 ) $ 25,294 $ 198,320 $ 74,601 Denominator: Shares used in computing net EPS of common stock, basic 56,671,504 55,730,328 56,435,880 54,788,734 Notes due 2025 - 2,276,818 2,276,818 2,276,818 Effect of stock-based awards - 740,392 584,725 820,489 Shares used in computing net EPS of common stock, diluted 56,671,504 58,747,538 59,297,423 57,886,041 Earnings (loss) per share: Basic $ (1.08 ) $ 0.44 $ 3.49 $ 1.33 Diluted $ (1.08 ) $ 0.43 $ 3.34 $ 1.29 Shares excluded from the calculation of net diluted due to their anti-dilutive effect 3,349,756 138,916 1,251,243 181,802 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments and operating income | Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Solar All other Solar All other Revenues $ 676,410 $ 48,680 $ 2,532,275 $ 127,605 Cost of revenues 514,289 59,780 1,723,337 153,927 Gross profit (loss) 162,121 (11,100 ) 808,938 (26,322 ) Research and development 56,293 6,979 174,218 20,370 Sales and marketing 30,514 1,777 95,795 5,367 General and administrative 29,637 2,756 79,525 9,522 Segments profit (loss) $ 45,677 $ (22,612 ) $ 459,400 $ (61,581 ) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Solar All other Solar All other Revenues $ 788,610 $ 47,954 $ 2,084,206 $ 134,931 Cost of revenues 565,403 42,594 1,484,303 125,883 Gross profit 223,207 5,360 599,903 9,048 Research and development 47,943 6,861 140,215 23,378 Sales and marketing 30,996 2,202 85,220 8,059 General and administrative 17,534 2,795 49,779 10,209 Segments profit (loss) $ 126,734 $ (6,498 ) $ 324,689 $ (32,598 ) |
Schedule of reconciliation to consolidated operating income | 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, 2023 2022 2023 2022 Solar revenues $ 676,410 $ 788,610 $ 2,532,275 $ 2,084,206 All other revenues 48,680 47,954 127,605 134,931 Revenues from finance component 215 159 604 440 Consolidated revenues $ 725,305 $ 836,723 $ 2,660,484 $ 2,219,577 The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Solar segment profit $ 45,677 $ 126,734 $ 459,400 $ 324,689 All other segment loss (22,612 ) (6,498 ) (61,581 ) (32,598 ) Segments operating profit 23,065 120,236 397,819 292,091 Amounts not allocated to segments: Stock based compensation expenses (36,815 ) (35,751 ) (115,015 ) (106,932 ) Amortization related to business combinations (2,750 ) (2,559 ) (6,164 ) (8,039 ) Impairment of goodwill and intangible assets - - - (4,008 ) Disposal of assets related to Critical Power - - - (4,314 ) Sale of Critical Power assets - 1,559 - 1,559 Other unallocated expenses (income), net (226 ) 922 1,146 926 Consolidated operating income (expense) $ (16,726 ) $ 84,407 $ 277,786 $ 171,283 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Concentration Risk As Percent | 40.90% | 34.30% |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) $ in Thousands | Apr. 06, 2023 USD ($) |
Business Acquisition [Line Items] | |
Approximate cash acquisition | $ 18,346 |
Hark Systems Ltd [Member] | |
Business Acquisition [Line Items] | |
Approximate cash acquisition | $ 18,346 |
BUSINESS COMBINATIONS (Schedule
BUSINESS COMBINATIONS (Schedule of Fair Values Estimation of Assets Acquired and Liabilities Assumed) (Details) $ in Thousands | Apr. 06, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Cash | $ 448 |
Net liabilities assumed | (1,837) |
Total | 18,346 |
Current technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 6,576 |
Weighted average life | 5 years |
Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 283 |
Weighted average life | 1 year |
Trade names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 610 |
Weighted average life | 5 years |
Goodwill [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Identified intangible assets: | $ 12,266 |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Marketable Securities Schedule Of Contractual Maturities Details [Abstract] | |||
Proceeds from maturity of available-for-sale | $ 2,807 | $ 29,235 | |
Proceeds from sale of available-for-sale securities | $ 5,811 | ||
Realized loss | $ 121 | $ 125 | $ 723 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale - matures within one year, Amortized cost | $ 486,236 | $ 246,327 |
Available-for-sale - matures within one year, Gross unrealized gains | 227 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (9,188) | (5,210) |
Available-for-sale - matures within one year, Fair value | 477,275 | 241,117 |
Available-for-sale - matures after one year, Amortized cost | 447,699 | 672,488 |
Available-for-sale - matures after one year, Gross unrealized gains | 49 | 80 |
Available-for-sale - matures after one year, Gross unrealized losses | (11,609) | (27,077) |
Available-for-sale - matures after one year, Fair value | 436,139 | 645,491 |
Amortized cost | 933,935 | 918,815 |
Gross unrealized gains | 276 | 80 |
Gross unrealized losses | (20,797) | (32,287) |
Fair value | 913,414 | 886,608 |
Corporate bonds [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 449,162 | 222,482 |
Available-for-sale - matures within one year, Gross unrealized gains | 227 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (8,838) | (4,657) |
Available-for-sale - matures within one year, Fair value | 440,551 | 217,825 |
Available-for-sale - matures after one year, Amortized cost | 400,408 | 657,238 |
Available-for-sale - matures after one year, Gross unrealized gains | 49 | 80 |
Available-for-sale - matures after one year, Gross unrealized losses | (10,950) | (26,460) |
Available-for-sale - matures after one year, Fair value | 389,507 | 630,858 |
US Treasury Securities [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 27,951 | 15,963 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (200) | (284) |
Available-for-sale - matures within one year, Fair value | 27,751 | 15,679 |
Available-for-sale - matures after one year, Amortized cost | 2,413 | 9,939 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures after one year, Gross unrealized losses | (43) | (261) |
Available-for-sale - matures after one year, Fair value | 2,370 | 9,678 |
U.S. Government agency securities [Member] | ||
Available-for-sale - matures after one year, Amortized cost | 42,477 | |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | |
Available-for-sale - matures after one year, Gross unrealized losses | 493 | |
Available-for-sale - matures after one year, Fair value | 41,984 | |
Non - U.S. Government securities [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 9,123 | 7,882 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures within one year, Gross unrealized losses | (150) | (269) |
Available-for-sale - matures within one year, Fair value | 8,973 | 7,613 |
Available-for-sale - matures after one year, Amortized cost | 2,401 | 5,311 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures after one year, Gross unrealized losses | (123) | (356) |
Available-for-sale - matures after one year, Fair value | $ 2,278 | $ 4,955 |
INVENTORIES, NET (Schedule of I
INVENTORIES, NET (Schedule of Inventories, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 420,281 | $ 503,257 |
Work in process | 26,801 | 23,407 |
Finished goods | 730,723 | 202,537 |
Total inventories, net | $ 1,177,805 | $ 729,201 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Vendor non-trade receivables | [1] | $ 94,180 | $ 147,597 |
Government authorities | 70,951 | 55,670 | |
Loan receivables | [2] | 8,125 | 0 |
Interest from marketable securities | 7,162 | 6,235 | |
Prepaid expenses and other | 37,302 | 31,580 | |
Total prepaid expenses and other current assets | $ 217,720 | $ 241,082 | |
[1]Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products, components and other testing equipment for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues.[2]Loan receivables is a loan to a third party. The loan will be repaid on a monthly basis with an additional agreed interest for the long term portion of the loan. See Note 8 for additional information. The loan is measured at its amortized cost and is subjected to the Company's credit risk policy as stated in the most recent 10-K filing. Expected provision for credit loss regarding this loan was immaterial. The amortized cost of the loan receivable approximates its fair value as of September 30, 2023. |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 2,663 | $ 2,464 | $ 5,901 | $ 7,741 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | $ 67,187 | $ 40,416 | |
Less - accumulated amortization | (25,240) | (20,487) | |
Total intangible assets, net | 41,947 | 19,929 | |
Current Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | 33,974 | 29,196 | |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | 3,058 | 2,958 | |
Trade names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | 3,671 | 3,287 | |
Assembled Workforce [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | 4,484 | 3,575 | |
Patents and licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross intangible assets | [1] | $ 22,000 | $ 1,400 |
[1]See Note 16 |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 2,351 | |
2024 | 8,735 | |
2025 | 7,834 | |
2026 | 7,281 | |
2027 | 4,134 | |
2028 and thereafter | 11,612 | |
Total intangible assets, net | $ 41,947 | $ 19,929 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment losses | $ 90,104 | $ 90,104 |
GOODWILL (Schedule of Goodwill
GOODWILL (Schedule of Goodwill Activities) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | $ 31,189 |
Acquisitions | 12,266 |
Foreign currency adjustments | (2,254) |
Goodwill at September 30, 2023 | 41,201 |
Solar [Member] | |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | 28,768 |
Acquisitions | 0 |
Foreign currency adjustments | (1,882) |
Goodwill at September 30, 2023 | 26,886 |
All other [Member] | |
Goodwill [Line Items] | |
Goodwill at December 31, 2022 | 2,421 |
Acquisitions | 12,266 |
Foreign currency adjustments | (372) |
Goodwill at September 30, 2023 | $ 14,315 |
OTHER LONG TERM ASSETS (Narrati
OTHER LONG TERM ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |||
Investments | $ 2,500 | $ 2,500 | $ 5,500 |
Percentage of outstanding common shares | 4.50% | 4.50% | 34.80% |
OTHER LONG TERM ASSETS (Schedul
OTHER LONG TERM ASSETS (Schedule of Other Long Term Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Other Assets, Noncurrent [Abstract] | |||
Cloud computing arrangements | $ 9,898 | $ 3,457 | |
Severance pay fund | 8,275 | 8,799 | |
Investments in privately held companies | [1],[2] | 8,000 | 1,863 |
Loan receivables | 4,875 | 0 | |
Prepayments | 3,799 | 2,961 | |
Other | 1,256 | 1,726 | |
Other Assets, Noncurrent | $ 36,103 | $ 18,806 | |
[1]In April and July of 2023, the Company completed a total investment of $2,500 in the preferred stock of a privately-held company which represents 4.5% of its outstanding shares on a fully diluted basis. The Company accounted for this investment as an equity investment without readily determinable fair values. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified.[2]In January 2023, the Company completed an investment of $5,500 in the common stock of a privately-held company which represents 34.8% of its outstanding shares. The Company accounted for this investment using the equity method of accounting. The Company's share of net earnings or losses in the nine months ended September 30, 2023 was immaterial. |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - Sep. 30, 2023 € in Thousands, ₪ in Millions | EUR (€) | ILS (₪) |
Put and Call Options [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | € | € 120 | |
Put option [Member] | Foreign exchange forward contracts [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | ₪ 38 | |
Call option [Member] | Foreign exchange forward contracts [Member] | ||
Derivative [Line Items] | ||
Forward/option contracts | ₪ 622 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 4,873 | $ 0 |
Designated cash flow hedges [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 87 | 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | |
Designated cash flow hedges [Member] | Accrued expenses and other current liabilities [Member] | ||
Derivative liabilities of options and forward contracts: | ||
Total derivative liabilities | $ (2,966) | (1,874) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | |
Non-designated hedges [Member] | Prepaid expenses and other current assets [Member] | ||
Derivative assets of options and forward contracts: | ||
Total derivative assets | $ 4,786 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Gains (Losses) on Derivative Instruments Recognized in our Income Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Non Designated Hedging Instruments [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) on derivative instruments | $ 5,841 | $ 1,211 | $ 5,841 | $ 5,154 |
Designated Hedging Instruments [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) on derivative instruments | $ (2,713) | $ (1,399) | $ (6,861) | $ (8,928) |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured at Fair Value) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Level 1 [Member] | Cash [Member] | ||
Fair value of assets | $ 508,057 | $ 695,004 |
Level 1 [Member] | Money market mutual funds [Member] | ||
Fair value of assets | 37,885 | 25,149 |
Level 1 [Member] | Deposits [Member] | ||
Fair value of assets | 5,180 | 62,959 |
Level 2 [Member] | Derivative instruments [Member] | ||
Fair value of assets | 4,873 | 0 |
Fair value of liabilities | (2,966) | (1,874) |
Level 2 [Member] | Short-term marketable securities: Corporate bonds [Member] | ||
Fair value of assets | 440,551 | 217,825 |
Level 2 [Member] | Short-term marketable securities: U.S. Treasury securities [Member] | ||
Fair value of assets | 27,751 | 15,679 |
Level 2 [Member] | Short-term marketable securities: Non - U.S. Government securities | ||
Fair value of assets | 8,973 | 7,613 |
Level 2 [Member] | Long-term marketable securities: Corporate bonds [Member] | ||
Fair value of assets | 389,507 | 630,858 |
Level 2 [Member] | Long-term marketable securities: U.S. Treasury securities [Member] | ||
Fair value of assets | 2,370 | 9,678 |
Level 2 [Member] | Long-term marketable securities: U.S. Government agency securities [Member] | ||
Fair value of assets | 41,984 | 0 |
Level 2 [Member] | Long-term marketable securities: Non - U.S. Government securities | ||
Fair value of assets | $ 2,278 | $ 4,955 |
WARRANTY OBLIGATIONS (Schedule
WARRANTY OBLIGATIONS (Schedule of Product Warranty Obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Changes in the Company's product warranty liability | |||||
Balance, at the beginning of the period | $ 488,587 | $ 324,176 | $ 385,057 | $ 265,160 | |
Additions and adjustments to cost of revenues | 85,171 | 56,815 | 266,372 | 163,783 | |
Usage and current warranty expenses | (57,946) | (34,852) | (135,617) | (82,804) | |
Balance, at end of the period | 515,812 | 346,139 | 515,812 | 346,139 | |
Less current portion | (174,125) | (97,222) | (174,125) | (97,222) | $ (103,975) |
Long term portion | $ 341,687 | $ 248,917 | $ 341,687 | $ 248,917 | $ 281,082 |
DEFERRED REVENUES AND CUSTOME_3
DEFERRED REVENUES AND CUSTOMERS ADVANCES (Schedule of Balances of Deferred Revenues and Customer Advances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Balance, at the beginning of the period | $ 232,828 | $ 200,695 | $ 213,577 | $ 169,345 |
Revenue recognized | (19,869) | (12,731) | (25,819) | (20,974) |
Increase in deferred revenues and customer advances | 21,130 | 20,756 | 46,331 | 60,349 |
Balance, at the end of the period | 234,089 | 208,720 | 234,089 | 208,720 |
Less current portion | (22,064) | (31,896) | (22,064) | (31,896) |
Long term portion | $ 212,025 | $ 176,824 | $ 212,025 | $ 176,824 |
DEFERRED REVENUES AND CUSTOME_4
DEFERRED REVENUES AND CUSTOMERS ADVANCES (Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred revenues | $ 234,089 | $ 232,828 | $ 213,577 | $ 208,720 | $ 200,695 | $ 169,345 |
2023 [Member] | ||||||
Deferred revenues | 13,214 | |||||
2024 [Member] | ||||||
Deferred revenues | 11,665 | |||||
2025 [Member] | ||||||
Deferred revenues | 11,094 | |||||
2026 [Member] | ||||||
Deferred revenues | 10,898 | |||||
2027 [Member] | ||||||
Deferred revenues | 8,968 | |||||
Thereafter [Member] | ||||||
Deferred revenues | $ 178,250 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 123,935 | $ 117,638 |
Government authorities | 49,323 | 67,514 |
Operating lease liabilities | 17,064 | 16,183 |
Accrual for sales incentives | 6,306 | 6,790 |
Finance lease | 3,034 | 3,263 |
Other | 3,786 | 2,724 |
Total accrued expenses and other current liabilities | $ 203,448 | $ 214,112 |
CONVERTIBLE SENIOR NOTES (Narra
CONVERTIBLE SENIOR NOTES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 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 coupon rate | 0% | ||||
Maturity date | Sep. 15, 2025 | ||||
Conversion amount | $ 1,000 | ||||
Number of shares of common stock per $1,000 principal amount of Notes converted | 3.5997 | ||||
Amount of conversion | $ 1,000 | ||||
Conversion price | $ 277.8 | ||||
Amortization of debt discount and debt issuance costs | $ 733 | $ 730 | $ 2,196 | $ 2,186 | |
Amortized period | 2 years | 2 years | |||
Effective interest | 0.47% | 0.47% | |||
Senior Notes [Member] | Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value of notes | $ 578,048 | $ 578,048 |
CONVERTIBLE SENIOR NOTES (Sched
CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Liability Abstract | ||
Net carrying amount | $ 626,647 | $ 624,451 |
Convertible Senior Notes [Member] | ||
Liability Abstract | ||
Principal | 632,500 | 632,500 |
Unamortized issuance costs | (5,853) | (8,049) |
Net carrying amount | $ 626,647 | $ 624,451 |
STOCK CAPITAL (Narrative) (Deta
STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 17, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from secondary public offering, net of issuance costs | $ 0 | $ 650,526 | |||||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 10,000,000 | 10,000,000 | |||||
Equity based compensation expenses to employees and nonemployees | $ 3,124 | $ 2,646 | $ 11,422 | 9,182 | |||
Tax benefit realized from share-based compensation | 1,589 | $ 3,060 | 7,050 | $ 8,871 | |||
Unrecognized compensation expense | $ 290,401 | $ 290,401 | |||||
Price of intrinsic value of closing price | $ 129.51 | ||||||
IPO [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares sold in public offerings | 2,300,000 | ||||||
Per share price of common stock sold | $ 295 | ||||||
IPO [Member] | Underwriting Agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares sold in public offerings | 300,000 | ||||||
Proceeds from secondary public offering, net of issuance costs | $ 650,526 | ||||||
Underwriters discounts and commissions | 27,140 | ||||||
Offering costs | $ 834 | ||||||
Option [Member] | Two Thousand Seven Global Incentive 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 | 20,853,755 | 20,853,755 | |||||
Number of shares available for future grant under the plan | 11,845,915 | 11,845,915 | |||||
Option [Member] | Two Thousand Fifteen Global Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for future grant under the plan | 8,617,974 | 8,617,974 | 379,358 | ||||
Percentage Of Common Shares Increase Automatically Each Year | 5% | ||||||
Employee Stock Purchase 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 | 4,150,380 | 4,150,380 | |||||
Number of shares available for future grant under the plan | 3,370,010 | 3,370,010 | |||||
Percentage Of Common Shares Increase Automatically Each Year | 1% | ||||||
Period Of Plan Increase Automatically Number Of Shares | 487,643 | ||||||
Maximum Percentage Of Salary | 15% | 15% | |||||
Aggregate Limit Per Participant | $ 15 | ||||||
Purchase price of common stock, percent | 85% | ||||||
Number of Common stock purchased | 780,370 |
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] $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Number of options | ||
Outstanding at the beginning of the period | shares | 339,029 | |
Exercised | shares | (11,804) | |
Outstanding at the end of the period | shares | 327,225 | 339,029 |
Weighted average exercise price | ||
Outstanding at the beginning of the period | $ / shares | $ 50.64 | |
Exercised | $ / shares | 15.41 | |
Outstanding at the end of the period | $ / shares | $ 51.91 | $ 50.64 |
Weighted Average Remaining Contractual Term In Years [Abstract] | ||
Outstanding | 4 years 2 months 12 days | 4 years 10 months 9 days |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 28,935 | $ 79,414 |
Exercised | $ | $ 2,789 | |
Vested and expected to vest at the end of the period | ||
Number of options | shares | 326,961 | |
Weighted average exercise price | $ / shares | $ 51.79 | |
Weighted average remaining contractual term in years | 4 years 2 months 12 days | |
Aggregate intrinsic Value | $ | $ 28,931 | |
Exercisable at the end of the period | ||
Number of options | shares | 312,711 | |
Weighted average exercise price | $ / shares | $ 44.7 | |
Weighted average remaining contractual terms in years | 4 years 29 days | |
Aggregate intrinsic Value | $ | $ 28,736 |
STOCK CAPITAL (Schedule of RSUs
STOCK CAPITAL (Schedule of RSUs and PSUs Activity) (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 1,488,515 |
Granted | shares | 300,567 |
Vested | shares | (516,692) |
Forfeited | shares | (69,939) |
Unvested at end of period | shares | 1,202,451 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 232.05 |
Weighted average grant date fair value, granted | $ / shares | 234.72 |
Weighted average grant date fair value, vested | $ / shares | 192.22 |
Weighted average grant date fair value, forfeited | $ / shares | 262.12 |
Weighted average grant date fair value, end of period | $ / shares | $ 248.09 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 149,232 |
Granted | shares | 32,348 |
Vested | shares | (107,165) |
Unvested at end of period | shares | 74,415 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 295.88 |
Weighted average grant date fair value, granted | $ / shares | 314.22 |
Weighted average grant date fair value, vested | $ / shares | 296.76 |
Weighted average grant date fair value, end of period | $ / shares | $ 302.58 |
STOCK CAPITAL (Schedule of Stoc
STOCK CAPITAL (Schedule of Stock-based Compensation Expense for Employees and Nonemployee) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 36,815 | $ 35,751 | $ 115,015 | $ 106,932 |
Total stock-based compensation capitalized | 1,077 | 881 | 2,925 | 978 |
Cost of revenues [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 5,882 | 4,660 | 17,732 | 15,008 |
Research and development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 16,481 | 14,553 | 50,962 | 46,357 |
Selling and marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 7,739 | 9,341 | 23,640 | 23,089 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 6,713 | 7,197 | 22,681 | 22,478 |
Inventory [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation capitalized | 655 | 765 | 1,666 | 765 |
Other long-term assets [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation capitalized | $ 422 | $ 116 | $ 1,259 | $ 213 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - 9 months ended Sep. 30, 2023 $ in Thousands, € in Millions | EUR (€) | USD ($) |
Non-cancelable purchase obligations | $ 1,116,593 | |
Provision for loss | 13,463 | |
Contractual obligations for capital expenditures | 120,572 | |
Patents [Member] | ||
Value in dispute | € 5.5 | 5,830 |
Office rent lease agreements [Member] | ||
Guarantees amount | 5,804 | |
Projects with customers [Member] | ||
Guarantees amount | $ 1,821 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Beginning balance | $ (73,109) | $ (73,109) | ||||||
Net current period other comprehensive income (loss) | $ (6,517) | $ (228) | (4,095) | $ (38,646) | $ (43,553) | $ (18,748) | (10,840) | $ (100,947) |
Ending balance | (83,949) | (128,266) | (83,949) | (128,266) | ||||
Unrealized gains (losses) on available-for-sale marketable securities [Member] | ||||||||
Beginning balance | (18,611) | (25,449) | (18,777) | (4,709) | (25,449) | (4,709) | ||
Revaluation | 3,216 | (12,424) | 11,579 | (31,064) | ||||
Tax on revaluation | (654) | 2,694 | (2,257) | 6,522 | ||||
Other comprehensive income (loss) before reclassifications | 2,562 | (9,730) | 9,322 | (24,542) | ||||
Reclassification | 0 | 166 | 107 | 1,010 | ||||
Tax on reclassification | 0 | (15) | (29) | (115) | ||||
Losses reclassified from accumulated other comprehensive income (loss) | 0 | 151 | 78 | 895 | ||||
Net current period other comprehensive income (loss) | 2,562 | (9,579) | 9,400 | (23,647) | ||||
Ending balance | (16,049) | (18,611) | (28,356) | (18,777) | (16,049) | (28,356) | ||
Unrealized gains (losses) on cash flow hedges [Member] | ||||||||
Beginning balance | (1,776) | (1,761) | (3,642) | 874 | (1,761) | 874 | ||
Revaluation | (2,896) | (1,569) | (7,321) | (10,094) | ||||
Tax on revaluation | 183 | 170 | 460 | 1,166 | ||||
Other comprehensive income (loss) before reclassifications | (2,713) | (1,399) | (6,861) | (8,928) | ||||
Reclassification | 1,910 | 1,422 | 6,316 | 4,833 | ||||
Tax on reclassification | (120) | (163) | (393) | (561) | ||||
Losses reclassified from accumulated other comprehensive income (loss) | 1,790 | 1,259 | 5,923 | 4,272 | ||||
Net current period other comprehensive income (loss) | (923) | (140) | (938) | (4,656) | ||||
Ending balance | (2,699) | (1,776) | (3,782) | (3,642) | (2,699) | (3,782) | ||
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature [Member] | ||||||||
Beginning balance | (50,695) | (37,960) | (52,750) | (17,420) | (37,960) | (17,420) | ||
Revaluation | (9,989) | (30,799) | (22,724) | (66,129) | ||||
Ending balance | (60,684) | (50,695) | (83,549) | (52,750) | (60,684) | (83,549) | ||
Unrealized gains (losses) on foreign currency translation [Member] | ||||||||
Beginning balance | (6,350) | $ (7,939) | (14,451) | $ (6,064) | (7,939) | (6,064) | ||
Revaluation | 1,833 | 1,872 | 3,422 | (6,515) | ||||
Ending balance | $ (4,517) | $ (6,350) | $ (12,579) | $ (14,451) | $ (4,517) | $ (12,579) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Reclassifications of Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenues | $ 582,488 | $ 614,722 | $ 1,900,236 | $ 1,635,976 |
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Total, before income taxes | 159,543 | 137,594 | 482,462 | 412,318 |
Income taxes | 36,065 | 34,172 | 99,622 | 53,081 |
Total, net of income taxes | (61,176) | 24,743 | 196,712 | 72,950 |
Available-for-sale marketable securities [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Financial income (expense), net | 0 | (166) | (107) | (1,010) |
Income taxes | 0 | 15 | 29 | 115 |
Total, net of income taxes | 0 | (151) | (78) | (895) |
Cash flow hedges [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenues | (219) | (157) | (734) | (542) |
Research and development | (1,138) | (808) | (3,789) | (2,841) |
Sales and marketing | (256) | (242) | (791) | (662) |
General and administrative | (297) | (215) | (1,002) | (788) |
Total, before income taxes | (1,910) | (1,422) | (6,316) | (4,833) |
Income taxes | 120 | 163 | 393 | 561 |
Total, net of income taxes | (1,790) | (1,259) | (5,923) | (4,272) |
Total reclassifications for the period | $ (1,790) | $ (1,410) | $ (6,001) | $ (5,167) |
OTHER OPERATING EXPENSE (INCO_3
OTHER OPERATING EXPENSE (INCOME) (Schedule of Other Operating Expense and Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Impairment of goodwill and intangible assets | $ 0 | $ 0 | $ 0 | $ 4,008 |
Sale of assets | 0 | (2,705) | (1,434) | (2,705) |
Impairment of property, plant and equipment | 0 | (19) | 0 | 660 |
Total other operating expense (income), net | $ 0 | $ (2,724) | $ (1,434) | $ 1,963 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Taxes Schedule Of Taxes On Income Details | |||||
Effective tax rate | 143.60% | 58% | 33.60% | 42.10% | |
Unrecognized tax benefits | $ 3,155 | $ 3,155 | $ 2,756 |
EARNINGS (LOSS) PER SHARE (Sche
EARNINGS (LOSS) PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income (loss) | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Denominator: | ||||
Shares used in computing net EPS of common stock, basic | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Numerator: | ||||
Net income (loss) attributable to common stock, basic | $ (61,176) | $ 24,743 | $ 196,712 | $ 72,950 |
Notes due 2025 | 0 | 551 | 1,608 | 1,651 |
Net income (loss) attributable to common stock, diluted | $ (61,176) | $ 25,294 | $ 198,320 | $ 74,601 |
Denominator: | ||||
Shares used in computing net EPS of common stock, basic | 56,671,504 | 55,730,328 | 56,435,880 | 54,788,734 |
Notes due 2025 | 0 | 2,276,818 | 2,276,818 | 2,276,818 |
Effect of stock-based awards | 0 | 740,392 | 584,725 | 820,489 |
Shares used in computing net EPS of common stock, diluted | 56,671,504 | 58,747,538 | 59,297,423 | 57,886,041 |
Earnings (loss) per share: | ||||
Basic | $ (1.08) | $ 0.44 | $ 3.49 | $ 1.33 |
Diluted | $ (1.08) | $ 0.43 | $ 3.34 | $ 1.29 |
Shares excluded from the calculation of net diluted due to their anti-dilutive effect | 3,349,756 | 138,916 | 1,251,243 | 181,802 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 5 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 |
Gross profit (loss) | 142,817 | 222,001 | 760,248 | 583,601 |
Research and development | 80,082 | 69,659 | 246,481 | 210,855 |
Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 |
General and administrative | 39,110 | 27,933 | 111,876 | 82,483 |
Solar segment profit | 45,677 | 126,734 | 459,400 | 324,689 |
All other segment loss | (22,612) | (6,498) | (61,581) | (32,598) |
Segments operating profit | 23,065 | 120,236 | 397,819 | 292,091 |
Amounts not allocated to segments: | ||||
Stock based compensation expenses | (36,815) | (35,751) | (115,015) | (106,932) |
Amortization related to business combinations | (2,750) | (2,559) | (6,164) | (8,039) |
Impairment of goodwill and intangible assets | 0 | 0 | 0 | (4,008) |
Disposal of assets related to Critical Power | 0 | 0 | 0 | (4,314) |
Sale of Critical Power assets | 0 | 1,559 | 0 | 1,559 |
Other unallocated expenses (income), net | (226) | 922 | 1,146 | 926 |
Operating Income (Loss) | (16,726) | 84,407 | 277,786 | 171,283 |
Solar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 676,410 | 788,610 | 2,532,275 | 2,084,206 |
Cost of revenues | 514,289 | 565,403 | 1,723,337 | 1,484,303 |
Gross profit (loss) | 162,121 | 223,207 | 808,938 | 599,903 |
Research and development | 56,293 | 47,943 | 174,218 | 140,215 |
Sales and marketing | 30,514 | 30,996 | 95,795 | 85,220 |
General and administrative | 29,637 | 17,534 | 79,525 | 49,779 |
Segments operating profit | 45,677 | 126,734 | 459,400 | 324,689 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,680 | 47,954 | 127,605 | 134,931 |
Cost of revenues | 59,780 | 42,594 | 153,927 | 125,883 |
Gross profit (loss) | (11,100) | 5,360 | (26,322) | 9,048 |
Research and development | 6,979 | 6,861 | 20,370 | 23,378 |
Sales and marketing | 1,777 | 2,202 | 5,367 | 8,059 |
General and administrative | 2,756 | 2,795 | 9,522 | 10,209 |
Segments operating profit | $ (22,612) | $ (6,498) | $ (61,581) | $ (32,598) |
SEGMENT INFORMATION (Schedule_2
SEGMENT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 725,305 | $ 836,723 | $ 2,660,484 | $ 2,219,577 |
Solar revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 676,410 | 788,610 | 2,532,275 | 2,084,206 |
All other revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 48,680 | 47,954 | 127,605 | 134,931 |
Revenues from finance component [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 215 | $ 159 | $ 604 | $ 440 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) $ in Millions | Nov. 01, 2023 USD ($) |
Subsequent Events [Member] | Common share repurchase program [Member] | |
Subsequent Event [Line Items] | |
Value of repurchase authorized | $ 300 |