NOTE 15:-

COMMITMENTS AND CONTINGENT LIABILITIES

Lease commitments:

The Company and its subsidiaries lease their operating facilities under non-cancelable operating lease agreements, which expire over the next ten years, with the last lease ending in September 2027.

On July 10, 2017 the Company entered into a ten years lease agreement, intended for the establishment of a manufacturing facility and includes extension period options. The Company accounts for this lease as an operating lease according to ASC 840 (“Leases”).

The future minimum lease commitments of the Company under various non-cancelable operating lease agreements in respect of premises, that are in effect as of December 31, 2018, are as follows:

2019		6,933
2020		4,677
2021		2,633
2022		2,380
2023		2,350
2024 and thereafter		2,444

	$	21,417

Rent expenses for years ended December 31, 2018, December 31, 2017, the six months ended December 31, 2016 and the year ended June 30, 2016, were approximately $6,231, $3,449, $1,199, and $2,238, respectively.

Guarantees:

As of December 31, 2018, contingent liabilities exist regarding guarantees in the amounts of $1,354, $323 and $172 in respect of office rent lease agreements, customs transactions and credit card limits, respectively.

Contractual purchase obligations:

The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products.

In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs. As of December 31, 2018, the Company had non-cancelable purchase obligations totaling approximately $262,979, out of which the Company already recorded a provision for loss in the amount of $1,759.

As of December 31, 2018, the Company had contractual obligations for capital expenditures totaling approximately $40,052. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing

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 June 2018, the Company was served with a complaint from a trustee of a former customer that filed for bankruptcy in the US. The lawsuit seeks to recover approximately $2,481 based on theories of preferential and fraudulent transfers. The Company believes it has valid defenses to the claims in this lawsuit and does not expect the outcome of the litigation matters to have a material effect on its balance sheets, statements of operations or cash flows.

On September 20, 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar Technology AG. The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW - 27.6kW inverters infringe plaintiff’s patents EP 2 228 895 B1 and EP 1 610 452 B1. In its complaint, SMA Solar Technology requests inter alia an injunction and a determination for a claim for damages for sales in Germany. Plaintiff also suggests a value in dispute of €5 million (approximately $5.8 million) for both patents. The Company believes that it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit and does not expect the outcome of the litigation matters to have a material effect on its balance sheets, statements of operations or cash flows.

In 2017, Kokam received a claim for losses related to a fire that occurred at a plant of S&C Electric in the U.S., to which Kokam supplied products, alleging that the damage was caused by a container-type UPS manufactured by S&C Electric that contained batteries supplied by Kokam. The claim was originally for damages in the amount of approximately $4 million and following the Kokam acquisition by the Company, Kokam received an amended claim for damages in the amount of approximately $12 million. The Company has specific indemnification from the major selling shareholder of Kokam in the amount of up to $5 million for losses that may be incurred relating to this claim. Kokam also has product liability insurance. The claim has not developed into a lawsuit nor has Kokam received the supporting documents substantiating the claimed amount. As of December 31, 2018, the Company has not recorded any provision for the above claim.