|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 |
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
|
|
|
|
(State or other jurisdiction
of
incorporation or organization)
|
|
(IRS Employer
Identification No.) |
|
| |
| ||
| ||
(Address of Principal Executive Offices, zip code)
|
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
|
|
|
|
☒
|
Accelerated
filer |
☐
|
Non-accelerated
filer |
☐
|
Smaller
Reporting Company |
|
Emerging
growth company |
☐
|
F-1 | |
F-1 | |
F-1 | |
F-3 | |
F-4 | |
F-5 | |
F-6 | |
F-8 | |
3 | |
13 | |
14 | |
14 | |
14 | |
14 | |
15 | |
15 | |
15 | |
15 | |
16 | |
16 |
March 31,
2022
|
December
31,
2021
|
|||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
|
$ |
|
||||
Marketable securities |
|
|
||||||
Trade receivables, net of allowances of $ |
|
|
||||||
Inventories, net |
|
|
||||||
Prepaid expenses and other current assets |
|
|
||||||
Total
current assets |
|
|
||||||
LONG-TERM ASSETS: |
||||||||
Marketable securities |
|
|
||||||
Deferred tax assets, net |
|
|
||||||
Property, plant and equipment, net |
|
|
||||||
Operating lease right-of-use assets, net |
|
|
||||||
Intangible assets, net |
|
|
||||||
Goodwill |
|
|
||||||
Other long-term assets |
|
|
||||||
Total
long-term assets |
|
|
||||||
Total
assets |
$ |
|
$ |
|
March
31, 2022 |
December
31, 2021 |
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Trade payables, net |
$ |
|
$ |
|
||||
Employees and payroll accruals |
|
|
||||||
Warranty obligations |
|
|
||||||
Deferred revenues and customers advances |
|
|
||||||
Accrued expenses and other current liabilities |
|
|
||||||
Total
current liabilities |
|
|
||||||
LONG-TERM LIABILITIES: |
||||||||
Convertible senior notes, net |
|
|
||||||
Warranty obligations |
|
|
||||||
Deferred revenues |
|
|
||||||
Finance lease liabilities |
|
|
||||||
Operating lease liabilities |
|
|
||||||
Other long-term liabilities |
|
|
||||||
Total
long-term liabilities |
|
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES |
||||||||
STOCKHOLDERS’ EQUITY: |
||||||||
Common stock of $ |
|
|
||||||
Additional paid-in capital |
|
|
||||||
Accumulated other comprehensive loss |
(
|
) |
(
|
) | ||||
Retained earnings |
|
|
||||||
Total
stockholders’ equity |
|
|
||||||
Total
liabilities and stockholders’ equity |
$ |
|
$ |
|
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Revenues
|
$
|
|
$
|
|
||||
Cost
of revenues |
|
|
||||||
Gross
profit |
|
|
||||||
Operating
expenses: |
||||||||
Research
and development |
|
|
||||||
Sales
and marketing |
|
|
||||||
General
and administrative |
|
|
||||||
Other
operating expenses |
|
|
||||||
Total
operating expenses |
|
|
||||||
Operating
income |
|
|
||||||
Financial
expense, net |
(
|
)
|
(
|
)
| ||||
Income
before income taxes |
|
|
||||||
Income
taxes |
|
|
||||||
Net
income |
$
|
|
$
|
|
||||
Net
basic earnings per share of common stock |
$
|
|
$
|
|
||||
Net
diluted earnings per share of common stock |
$
|
|
$
|
|
||||
Weighted
average number of shares used in computing net basic earnings per share of common stock |
|
|
||||||
Weighted
average number of shares used in computing net diluted earnings per share of common stock |
|
|
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Net
income |
$
|
|
$
|
|
||||
Other comprehensive loss,
net of tax: |
||||||||
Net
change related to available-for-sale securities |
(
|
)
|
(
|
)
| ||||
Net
change related to cash flow hedges |
(
|
)
|
(
|
)
| ||||
Foreign
currency translation adjustments on intra-entity transactions that are of a long-term investment nature |
(
|
)
|
(
|
)
| ||||
Foreign
currency translation adjustments, net |
(
|
)
|
(
|
)
| ||||
Total other comprehensive
loss |
(
|
)
|
(
|
)
| ||||
Comprehensive
income |
$
|
|
$
|
|
Accumulated | ||||||||||||||||||||||||
Common
stock |
Additional
paid in |
other
comprehensive |
||||||||||||||||||||||
Number
|
Amount
|
Capital
|
loss
|
Retained
earnings |
Total
|
|||||||||||||||||||
Balance
as of January 1, 2022 |
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||
Issuance
of Common Stock upon exercise of stock-based awards |
|
*
|
|
|
|
|
||||||||||||||||||
Stock
based compensation expenses |
-
|
|
|
|
|
|
||||||||||||||||||
Issuance
of common stock in a secondary public offering, net of underwriters' discounts and commissions of $ |
|
|
|
|
|
|
||||||||||||||||||
Other
comprehensive loss adjustments |
|
|
|
(
|
)
|
|
(
|
)
| ||||||||||||||||
Net
income |
|
|
|
|
|
|
||||||||||||||||||
Balance
as of March 31, 2022 |
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
Accumulated | |||||||||||||||||||||||
Common
stock |
Additional
paid in |
other comprehensive | ||||||||||||||||||||||
Number
|
Amount
|
Capital
|
income
(loss) |
Retained
earnings |
Total
|
|||||||||||||||||||
Balance
as of January 1, 2021 |
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Cumulative
effect of adopting ASU 2020-06 |
-
|
-
|
(
|
)
|
|
|
(
|
)
| ||||||||||||||||
Issuance
of Common Stock upon exercise of stock-based awards |
|
*
|
|
|
|
|
||||||||||||||||||
Stock
based compensation expenses |
-
|
|
|
|
|
|
||||||||||||||||||
Other
comprehensive loss adjustments |
|
|
|
(
|
)
|
|
(
|
)
| ||||||||||||||||
Net
income |
|
|
|
|
|
|
||||||||||||||||||
Balance
as of March 31, 2021 |
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Cash
flows from operating activities: |
||||||||
Net
income |
$
|
|
$
|
|
||||
Adjustments
to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation
of property, plant and equipment |
|
|
||||||
Amortization
of intangible assets |
|
|
||||||
Amortization
of debt discount and debt issuance costs |
|
|
||||||
Amortization
of premium and accretion of discount on available-for-sale marketable securities, net |
|
|
||||||
Stock-based
compensation expenses |
|
|
||||||
Deferred
income taxes, net |
(
|
)
|
(
|
)
| ||||
Loss
(gain) from sale and disposal of assets |
(
|
)
|
|
|||||
Exchange
rate fluctuations and other items, net |
|
|
||||||
Changes
in assets and liabilities: |
||||||||
Inventories,
net |
(
|
)
|
(
|
)
| ||||
Prepaid
expenses and other assets |
(
|
)
|
|
|||||
Trade
receivables, net |
(
|
)
|
(
|
)
| ||||
Trade
payables, net |
(
|
)
|
(
|
)
| ||||
Employees
and payroll accruals |
|
|
||||||
Warranty
obligations |
|
|
||||||
Deferred
revenues and customers advances |
|
|
||||||
Other
liabilities, net |
|
|
||||||
Net
cash provided by (used in) operating activities |
(
|
)
|
|
|||||
Cash
flows from investing activities: |
||||||||
Proceed
from sales and maturities of available-for-sale marketable securities |
|
|
||||||
Purchase
of property, plant and equipment |
(
|
)
|
(
|
)
| ||||
Investment
in available-for-sale marketable securities |
(
|
)
|
(
|
)
| ||||
Withdrawal
from bank deposits, net |
|
|
||||||
Other
investing activities |
|
|
||||||
Net
cash used in investing activities |
$
|
(
|
)
|
$
|
(
|
)
|
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Cash
flows from financing activities: |
||||||||
Proceeds
from secondary public offering, net of issuance costs |
|
|
||||||
Proceeds
from exercise of stock-based awards |
|
|
||||||
Proceeds
(withholdings) from stock-based awards, net |
|
(
|
)
| |||||
Other
financing activities |
(
|
)
|
(
|
)
| ||||
Net
cash provided by (used in) financing activities |
|
(
|
)
| |||||
Increase
(decrease) in cash and cash equivalents |
|
(
|
)
| |||||
Cash
and cash equivalents at the beginning of the period |
|
|
||||||
Effect
of exchange rate differences on cash and cash equivalents |
(
|
)
|
(
|
)
| ||||
Cash
and cash equivalents at the end of the period |
$
|
|
$
|
|
||||
Supplemental
disclosure of non-cash activities: |
||||||||
Right-of-use
asset recognized with corresponding lease liability |
$
|
|
$
|
|
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 future ready energy hub inverter which supports,
among other things, connection to a DC- coupled battery for backup capabilities, (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. |
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”), uninterrupted power supply solutions or UPS (“Critical Power”), as well as automated machines
for industrial use (“Automation Machines”). |
c. |
Basis of Presentation: |
d. |
Use of estimates: |
e. |
Concentrations of supply risks:
|
F - 8
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 1: GENERAL (Cont.)
f. |
New accounting pronouncements not yet adopted:
|
g. |
Recently issued and adopted pronouncements:
|
h. |
Certain prior period amounts have been reclassified
to conform to the current period presentation. |
F - 9
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Amortized
cost |
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair
value |
|||||||||||||
Available-for-sale
– matures within one year: |
||||||||||||||||
Corporate
bonds |
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Governmental
bonds |
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Available-for-sale
– matures after one year: |
||||||||||||||||
Corporate
bonds |
|
|
(
|
)
|
|
|||||||||||
Governmental
bonds |
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair
value |
|||||||||||||
Available-for-sale
– matures within one year: |
||||||||||||||||
Corporate
bonds |
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Governmental
bonds |
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Available-for-sale
– matures after one year: |
||||||||||||||||
Corporate
bonds |
|
|
(
|
)
|
|
|||||||||||
Governmental
bonds |
|
|
(
|
)
|
|
|||||||||||
|
|
(
|
)
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
F - 10
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 3: INVENTORIES, NET
March
31,
2022
|
December
31,
2021
|
|||||||
Raw
materials |
$
|
|
$
|
|
||||
Work
in process |
|
|
||||||
Finished
goods |
|
|
|
|
||||
$
|
|
$
|
|
F - 11
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - 12
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 6: FAIR VALUE MEASUREMENTS
Fair
value measurements as of |
||||||||||
Description
|
Fair
Value Hierarchy |
March
31,
2022
|
December
31, 2021 |
|||||||
Assets:
|
||||||||||
Cash
equivalents: |
||||||||||
Money
market mutual funds |
Level
1 |
$
|
|
$
|
|
|||||
Derivative
instruments asset: |
||||||||||
Forward
contracts designated as hedging instruments |
Level
2 |
$
|
|
$
|
|
|||||
Options
and forward contracts not designated as hedging instruments |
Level
2 |
$
|
|
$
|
|
|||||
Short-term
marketable securities: |
||||||||||
Corporate
bonds |
Level
2 |
$
|
|
$
|
|
|||||
Governmental
bonds |
Level
2 |
$
|
|
$
|
|
|||||
Long-term
marketable securities: |
||||||||||
Corporate
bonds |
Level
2 |
$
|
|
$
|
|
|||||
Governmental
bonds |
Level
2 |
$
|
|
$
|
|
|||||
Liabilities
|
||||||||||
Derivative
instruments liability: |
||||||||||
Options
and forward contracts designated as hedging instruments |
Level
2 |
$
|
(
|
)
|
$
|
|
||||
Forward
contracts not designated as hedging instruments |
Level
2 |
$
|
(
|
)
|
$
|
|
NOTE 7: WARRANTY OBLIGATIONS
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Balance,
at the beginning of the period |
$
|
|
$
|
|
||||
Additions
and adjustments to cost of revenues |
|
|
||||||
Usage
and current warranty expenses |
(
|
)
|
(
|
)
| ||||
Balance,
at end of the period |
|
|
||||||
Less
current portion |
(
|
)
|
(
|
)
| ||||
Long
term portion |
$
|
|
$
|
|
F - 13
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 8: DEFERRED REVENUES
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Balance,
at the beginning of the period |
$
|
|
$
|
|
||||
Revenue
recognized |
(
|
)
|
(
|
)
| ||||
Increase
in deferred revenues and customer advances |
|
|
||||||
Balance,
at the end of the period |
|
|
||||||
Less
current portion |
(
|
)
|
(
|
)
| ||||
Long
term portion |
$
|
|
$
|
|
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total
deferred revenues |
$
|
|
March
31,
2022
|
December
31, 2021 |
|||||||
Accrued
expenses |
$
|
|
$
|
|
||||
Government
authorities |
|
|
||||||
Operating
lease liabilities |
|
|
||||||
Provision
for legal claims |
|
|
||||||
Other
|
|
|
||||||
$
|
|
$
|
|
F - 14
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 10: CONVERTIBLE SENIOR NOTES
March
31,
2022
|
December
31,
2021
|
|||||||
Liability:
|
||||||||
Principal
|
$
|
|
$
|
|
||||
Unamortized
issuance costs |
(
|
)
|
(
|
)
| ||||
Net
carrying amount |
$
|
|
$
|
|
F - 15
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
F - 16
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 11: STOCK CAPITAL (Cont.)
Number
of options |
Weighted
average exercise price |
Weighted
average remaining contractual term in years |
Aggregate
intrinsic Value |
|||||||||||||
Outstanding as of December
31, 2021 |
|
$
|
|
|
$
|
|
||||||||||
Exercised
|
(
|
)
|
|
- |
|
|||||||||||
Forfeited
or expired |
(
|
)
|
|
- |
- |
|||||||||||
Outstanding as of March
31, 2022 |
|
$
|
|
|
|
$
|
|
|||||||||
Vested and expected to
vest as of March 31, 2022 |
|
$
|
|
|
|
$
|
|
|||||||||
Exercisable as of March
31, 2022 |
|
$
|
|
|
|
$
|
|
Number
of RSUs |
Weighted
average grant date fair value |
|||||||
Unvested
as of December 31, 2021 |
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Unvested
as of March 31, 2022 |
|
$
|
|
Number
of PSUs |
Weighted
average grant date fair value |
|||||||
Unvested
as of December 31, 2021 |
|
$
|
|
|||||
Granted
|
|
|
||||||
Unvested
as of March 31, 2022 |
|
$
|
|
F - 17
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 11: STOCK CAPITAL (Cont.)
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cost
of revenues |
$
|
|
$
|
|
||||
Research
and development |
|
|
||||||
Selling
and marketing |
|
|
||||||
General
and administrative |
|
|
||||||
Total
stock-based compensation expenses |
$
|
|
$
|
|
F - 18
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 12: COMMITMENTS AND CONTINGENT LIABILITIES
F - 19
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
NOTE 13: ACCUMULATED OTHER COMPREHENSIVE LOSS
Three
Months Ended
March
31, |
||||||||
2022
|
2021
|
|||||||
Unrealized
gains (losses) on available-for-sale marketable securities |
||||||||
Beginning
balance |
$
|
(
|
)
|
$
|
|
|||
Revaluation
|
(
|
)
|
(
|
)
| ||||
Tax
on revaluation |
|
|
||||||
Other
comprehensive loss before reclassifications |
(
|
)
|
(
|
)
| ||||
Reclassification
|
|
|
||||||
Tax
on reclassification |
(
|
)
|
|
|||||
Losses
reclassified from accumulated other comprehensive income |
|
|
||||||
Net
current period other comprehensive loss |
(
|
)
|
(
|
)
| ||||
Ending
balance |
$
|
(
|
)
|
$
|
(
|
)
| ||
Unrealized
gains (losses) on cash flow hedges |
||||||||
Beginning
balance |
$
|
|
$
|
|
||||
Revaluation
|
(
|
)
|
(
|
)
| ||||
Tax on revaluation
|
|
|
||||||
Other comprehensive loss
before reclassifications |
(
|
)
|
(
|
)
| ||||
Reclassification
|
|
|
||||||
Tax
on reclassification |
(
|
)
|
|
|||||
Losses reclassified from
accumulated other comprehensive loss |
|
|
||||||
Net current period other
comprehensive loss |
(
|
)
|
(
|
)
| ||||
Ending
balance |
$
|
|
$
|
(
|
)
| |||
Foreign
currency translation adjustments on intra-entity transactions that are of a long-term investment in nature |
||||||||
Beginning
balance |
$
|
(
|
)
|
$
|
|
|||
Revaluation
|
(
|
)
|
(
|
)
| ||||
Tax
on revaluation |
|
|
||||||
Other
comprehensive loss before reclassifications |
(
|
)
|
(
|
)
| ||||
Net
current period other comprehensive loss |
(
|
)
|
(
|
)
| ||||
Ending
balance |
$
|
(
|
)
|
$
|
(
|
)
| ||
Unrealized
gains (losses) on foreign currency translation |
||||||||
Beginning
balance |
$
|
(
|
)
|
$
|
|
|||
Revaluation
|
(
|
)
|
(
|
)
| ||||
Tax
on revaluation |
|
|
||||||
Other
comprehensive loss before reclassifications |
(
|
)
|
(
|
)
| ||||
Net
current period other comprehensive loss |
(
|
)
|
(
|
)
| ||||
Ending
balance |
$
|
(
|
)
|
$
|
(
|
)
| ||
Total
|
$
|
(
|
)
|
$
|
(
|
)
|
F - 20
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Details
about Accumulated Other Comprehensive Loss Components |
Three
Months Ended March 31, |
Affected
Line Item in the Statement of Income | |||||||
2022
|
2021
|
||||||||
Unrealized
losses on available-for-sale marketable securities |
|||||||||
$
|
(
|
)
|
$
|
|
Financial
expense, net | ||||
|
|
Income
taxes | |||||||
$
|
(
|
)
|
$
|
|
Total,
net of income taxes | ||||
Unrealized
losses on cash flow hedges, net |
|||||||||
(
|
)
|
|
Cost
of revenues | ||||||
(
|
)
|
|
Research
and development | ||||||
(
|
)
|
|
Sales
and marketing | ||||||
(
|
)
|
|
General
and administrative | ||||||
$
|
(
|
)
|
$
|
|
Total,
before income taxes | ||||
|
|
Income
taxes | |||||||
(
|
)
|
|
|||||||
Total
reclassifications for the period |
$
|
(
|
)
|
$
|
|
F - 21
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Basic
EPS: |
||||||||
Numerator:
|
||||||||
Net
income |
$
|
|
$
|
|
||||
Denominator:
|
||||||||
Shares
used in computing net earnings per share of common stock, basic |
|
|
||||||
Diluted
EPS: |
||||||||
Numerator:
|
||||||||
Net
income attributable to common stock, basic |
$
|
|
$
|
|
||||
Notes
due 2025 |
|
|
||||||
Net
income attributable to common stock, diluted |
$
|
|
$
|
|
||||
Denominator:
|
||||||||
Shares
used in computing net earnings per share of common stock, basic |
|
|
||||||
Notes
due 2025 |
|
|
||||||
Effect
of stock-based awards |
|
|
||||||
Shares
used in computing net earnings per share of common stock, diluted |
|
|
F - 22
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three
Months Ended March 31, |
||||||||||||||||
2022
|
2021
|
|||||||||||||||
Solar
|
All
other |
Solar
|
All
other |
|||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of revenues
|
|
|
|
|
||||||||||||
Gross profit (loss)
|
|
|
|
(
|
)
| |||||||||||
Research and development
|
$
|
|
$
|
|
|
|
||||||||||
Sales and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Segments profit (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
F - 23
SOLAREDGE TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands, except per share data)
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Solar
revenues |
$
|
|
$
|
|
||||
All
other revenues |
|
|
||||||
Revenues
from services ASC 606 |
|
|
||||||
Consolidated
revenues |
$
|
|
$
|
|
Three
Months Ended March 31, |
||||||||
2022
|
2021
|
|||||||
Solar segment profit
|
$
|
|
$
|
|
||||
All other segment loss
|
(
|
)
|
(
|
)
| ||||
Segments operating profit
|
|
|
||||||
Amounts not allocated
to segments: |
||||||||
Stock
based compensation expenses |
(
|
)
|
(
|
)
| ||||
Other
unallocated expenses |
(
|
)
|
(
|
)
| ||||
Consolidated operating
income |
$
|
|
$
|
|
• |
existing and future responses to and
effects of Covid-19; |
• |
future demand for renewable energy
including solar energy solutions; |
• |
changes to net metering policies or
the reduction, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; |
• |
changes in the U.S. trade environment,
including the recent imposition of import tariffs; |
• |
federal, state, and local regulations
governing the electric utility industry with respect to solar energy; |
• |
the retail price of electricity derived
from the utility grid or alternative energy sources; |
• |
interest rates and supply of capital
in the global financial markets in general and in the solar market specifically; |
• |
competition, including introductions
of power optimizer, inverter and solar photovoltaic (“PV”) system monitoring products by our competitors; |
• |
developments in alternative technologies
or improvements in distributed solar energy generation; |
• |
historic cyclicality of the solar
industry and periodic downturns; |
• |
defects or performance problems in
our products; |
• |
our ability to forecast demand for
our products accurately and to match production with demand; |
• |
our dependence on ocean transportation
to timely deliver our products in a cost-effective manner; |
• |
our dependence upon a small number
of outside contract manufacturers and limited or single source suppliers; |
• |
capacity constraints, delivery schedules,
manufacturing yields, and costs of our contract manufacturers and availability of components; |
• |
delays, disruptions, and quality control
problems in manufacturing; |
• |
shortages, delays, price changes,
or cessation of operations or production affecting our suppliers of key components; |
• |
business practices and regulatory
compliance of our raw material suppliers; |
• |
performance of distributors and large
installers in selling our products; |
• |
disruption in our global supply chain
and rising prices of oil and raw materials as a result of the conflict between Russia and Ukraine may adversely affect our business; our
customers’ financial stability, creditworthiness, and debt leverage ratio; |
• |
our ability to retain key personnel
and attract additional qualified personnel; |
• |
our ability to effectively design,
launch, market, and sell new generations of our products and services; |
• |
our ability to maintain our brand
and to protect and defend our intellectual property; |
• |
our ability to retain, and events
affecting, our major customers; |
• |
our ability to manage effectively
the growth of our organization and expansion into new markets; |
• |
our ability to integrate acquired
businesses; |
• |
fluctuations in global currency exchange
rates; |
• |
unrest, terrorism, or armed conflict
in Israel; |
• |
general economic conditions in our
domestic and international markets; |
• |
consolidation in the solar industry
among our customers and distributors; |
• |
our ability to service our debt; and |
• |
the other factors set forth under
“Item 1A. Risk Factors” in “Part II-OTHER INFORMATION” section of this report, our annual report on Form 10-K
for the year ended December 31, 2021 and subsequent reports on Form 10-Q and in other documents we file from time to time with the SEC
that disclose risks and uncertainties that may affect our business. |
We are a leader in the global module-level power electronics (“MLPE”) market. As of March 31, 2022, we have shipped approximately 89.6 million power optimizers, 3.7 million inverters and 16.3 thousand residential batteries. Over 2.6 million installations, many of which may include multiple inverters, are currently connected to, and monitored through, our cloud-based monitoring platform. As of March 31, 2022, we have shipped approximately 31.6 GW of our DC optimized inverter systems and approximately 160.4 MW of our residential batteries.
Three
months ended
March
31, |
||||||||
2022 |
2021 |
|||||||
Inverters
shipped |
211,114 |
181,905 |
||||||
Power
optimizers shipped |
5,724,131 |
3,734,790 |
||||||
Megawatts
shipped1 |
2,130 |
1,691 |
||||||
Residential
batteries shipped |
9,985 |
— |
1 Excluding residential batteries, based on the aggregate nameplate capacity of inverters shipped during the applicable period. Nameplate capacity is the maximum rated power output capacity of an inverter as specified by the manufacturer.
Three
Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
(In
thousands) |
||||||||
Revenues |
655,080 |
405,489 |
||||||
Cost
of revenues |
476,122 |
265,415 |
||||||
Gross
profit |
178,958 |
140,074 |
||||||
Operating
expenses: |
||||||||
Research
and development |
66,349 |
46,977 |
||||||
Sales
and marketing |
35,316 |
26,911 |
||||||
General
and administrative |
26,429 |
19,849 |
||||||
Other
operating expenses |
— |
2,209 |
||||||
Total
operating expenses |
128,094 |
95,946 |
||||||
Operating
income |
50,864 |
44,128 |
||||||
Financial
expense, net |
(5,449 |
) |
(6,097 |
) | ||||
Income
before income taxes |
45,415 |
38,031 |
||||||
Income
taxes |
12,292 |
7,955 |
||||||
Net
income |
33,123 |
30,076 |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Revenues |
655,080 |
405,489 |
249,591 |
61.6 |
% |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Cost
of revenues |
476,122 |
265,415 |
210,707 |
79.4 |
% | |||||||||||
Gross
profit |
178,958 |
140,074 |
38,884 |
27.8 |
% |
• |
an increase in the volume of products
sold and the increase in the cost of components used in the manufacturing of our products; |
• |
a significant increase in shipment
and logistic costs in an aggregate amount of $29.4 million due to (i) an increase in shipment rates; and (ii) an increase in volumes
shipped; |
• |
an increase in warranty expenses and
warranty accruals of $17.9 million associated primarily with an increased number of products in our install base as well as an increase
in costs related to the different elements of our warranty expenses which include the cost of the products, shipment and other related
expenses; |
• |
an increase in custom duties of $10.1 million
attributed to higher tariff charges due to the manufacture of a higher portion of our products for the U.S. in China; |
• |
an increase in other production costs
of $14.9 million, which is mainly attributed to charges from our contract manufacturers due to manufacturing disruptions, related
to the global supply constraints, increased logistics costs resulting from transportation disruptions and the mobilization of components
among our different manufacturing sites and ramp up costs associated with the new contract manufacturing site in Mexico; and |
• |
an increase in personnel-related costs
of $4.2 million related to the expansion of our production, operations, and support headcount which grew in parallel to our growing
install base worldwide and the increase in costs associated with the production of powertrain units manufactured by the SolarEdge e-Mobility
division. |
• |
a decrease of $5.9 million in
inventory accrual which is mainly attributed to changes in inventory valuations related to manufacturing volumes, anticipated future use
of such raw materials and inventory write-offs. |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Research
and development |
66,349 |
46,977 |
19,372 |
41.2 |
% |
• |
an increase in personnel-related costs
of $15.6 million resulting from an increase in our research and development headcount as well as salary expenses associated with employee
equity-based compensation. The increase in headcount reflects our continuing investment in enhancements of existing products as well as
research and development expenses associated with bringing new products to the market; |
• |
a decrease in reimbursement of costs,
in an amount of $2.6 million, related to the research and development activities performed by SolarEdge e-Mobility; |
• |
an increase in expenses related to
material consumption in the manufacturing of prototypes during our development process in an amount of $1.5 million; and |
• |
an increase in depreciation expenses
of property and equipment in an amount of $0.9 million. |
• |
a decrease in expenses related to
consultants and sub-contractors in an amount of $2.3 million. |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Sales
and marketing |
35,316 |
26,911 |
8,405 |
31.2 |
% |
• |
an increase in personnel-related costs
of $5.7 million as a result of an increase in headcount supporting our growth in all geographies, as well as salary expenses associated
with employee equity-based compensation; and |
• |
an increase in expenses related to
marketing activities by $1.2 million due to the renewal of marketing activities, exhibitions and shows, which were cancelled or postponed
in 2020 and first half of 2021 due to Covid-19 restrictions. |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
General
and administrative |
26,429 |
19,849 |
6,580 |
33.2 |
% |
• |
an increase in personnel-related costs
of $6.8 million resulting from an increase in our general and administrative headcount, as well as salary expenses associated with employee
equity-based compensation; and |
• |
an increase in expenses related to
consultants and sub-contractors in an amount of $2.3 million. |
• |
a decrease of $3.6 million related
to a provision for legal claims. |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Other
operating expenses |
— |
2,209 |
(2,209 |
) |
(100.0 |
)% |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Financial
expense, net |
(5,449 |
) |
(6,097 |
) |
648 |
|
10.6 |
% |
• |
a decrease of $2.6 million in financial
income related to hedging transactions. |
• |
an increase of $0.8 million in realized
loss on marketable securities. |
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Income
taxes |
12,292 |
7,955 |
4,337 |
54.5 |
% |
Income taxes increased by $4.3 million, or 54.5%, in the three months ended March 31, 2022, as compared to the three months ended March 31, 2021, primarily due to an increase of $3.4 million in current tax expenses mainly attributed to an increase in taxable income in our foreign subsidiaries. This increase in taxable income is associated with the provisions of Section 174 of the U.S Internal Revenue Code, which went into effect on January 1, 2022, and required capitalization of our research and development expenses.
Three
months ended March 31, |
2021
to 2022 |
|||||||||||||||
2022 |
2021 |
Change |
||||||||||||||
(In
thousands) |
||||||||||||||||
Net
income |
33,123 |
30,076 |
3,047 |
10.1 |
% |
Three
months ended March 31, |
||||||||
2022 |
2021 |
|||||||
(In
thousands) |
||||||||
Net
cash provided by (used in) operating activities |
(162,989 |
) |
24,083 |
|||||
Net
cash used in investing activities |
(15,134 |
) |
(153,582 |
) | ||||
Net
cash provided by (used in) financing activities |
652,335 |
(2,062 |
) | |||||
Increase
(decrease) in cash, cash equivalents and restricted cash |
474,212 |
(131,561 |
) |
Investing cash flows consist primarily of capital expenditures, investment in, sales and maturities of available for sale marketable securities, investment and withdrawal of bank deposits and restricted bank deposits, and cash used for acquisitions. Cash used for investing activities decreased by $138.4 million in the three months ended March 31, 2022 as compared to the three months ended March 31, 2021, primarily driven by a $172.5 million decrease in purchases of available-for-sale debt investments, net. This decrease was partially offset by an increase of $17.5 million in capital expenditures, net and a $16.5 million decrease in cash provided by withdrawal from bank deposits and restricted bank deposits.
Financing cash flows consisted primarily of the issuance and repayment of short-term and long-term debt and proceeds from the sale of shares of common stock in a public offering and employee equity incentive plans. Cash provided by financing activities in the three months ended March 31, 2022 was $652.3 million compared to $2.1 million cash used in financing activities in the three months ended March 31, 2021, primarily due to a $650.5 million increase in cash provided by the issuance of common stock, net through a secondary public offering and a $4.0 million increase in cash received from the exercise of stock-based awards net of withholding taxes remitted to the tax authorities.
On March 17, 2022, we offered and sold 2,300,000 shares of the Company’s common stock at a public offering price of $295.00 per share. The net proceeds to the Company after underwriters' discounts and commissions and offering costs were $650,526. We intend to use the proceeds from the public offering for general corporate purposes, which may include acquisitions. See Note 11b to our condensed consolidated financial statements for more information.
Exhibit
No. |
|
Description |
|
Incorporation
by Reference |
Filed
with this report. | ||||
Filed
with this report. | ||||
Filed
with this report. | ||||
Filed
with this report. | ||||
101 |
The
following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted
in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated
Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Stockholders’ Equity, (v) Condensed Consolidated Statements
of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements |
Filed
with this report. | ||
104 |
The
cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 formatted in Inline XBRL |
Included
in Exhibit 101 |
|
/s/
Zvi Lando
Zvi
Lando
Chief Executive
Officer
(Principal
Executive Officer) |
|
/s/
Ronen Faier
Ronen
Faier
Chief
Financial Officer
(Principal
Financial Officer) |
/s/ Zvi Lando
|
Zvi Lando
|
Chief Executive Officer
(Principal Executive Officer)
|
/s/ Ronen Faier
|
Ronen Faier
|
Chief Financial Officer
(Principal Financial Officer)
|
/s/ Zvi Lando
|
Zvi Lando
|
Chief Executive Officer
(Principal Executive Officer)
|
/s/ Ronen Faier
|
Ronen Faier
|
Chief Financial Officer
(Principal Financial Officer)
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances of trade receivable | $ 3,226 | $ 2,626 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 55,386,146 | 52,815,395 |
Common stock, outstanding shares | 55,386,146 | 52,815,395 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 33,123 | $ 30,076 |
Other comprehensive income (loss), net of tax: | ||
Net change related to available-for-sale securities | (9,506) | (1,185) |
Net change related to cash flow hedges | (680) | (128) |
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature | (6,983) | (3,675) |
Foreign currency translation adjustments, net | (1,579) | (5,630) |
Total other comprehensive income (loss) | (18,748) | (10,618) |
Comprehensive income | $ 14,375 | $ 19,458 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (PARENTHETICALS) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Statement of Stockholders' Equity [Abstract] | |
Underwriters discounts and commissions | $ 27,140 |
Offering costs | $ 834 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Cash flows provided by operating activities: | ||
Net income | $ 33,123 | $ 30,076 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 9,002 | 6,887 |
Amortization of intangible assets | 2,658 | 2,391 |
Amortization of debt discount and debt issuance costs | 728 | 724 |
Amortization of premium and accretion of discount on available-for-sale marketable securities, net | 2,550 | 1,295 |
Share-based Payment Arrangement, Noncash Expense | 34,107 | 23,153 |
Deferred income taxes, net | (1,034) | (2,141) |
Loss (gain) from sale and disposal of assets | (410) | 2,147 |
Exchange rate fluctuations and other items, net | 3,024 | 13,303 |
Changes in assets and liabilities: | ||
Inventories, net | (51,323) | (8,376) |
Prepaid expenses and other assets | (17,163) | 20,218 |
Trade receivables, net | (224,865) | (57,380) |
Trade payables, net | (28,045) | (39,034) |
Employees and payroll accruals | 9,246 | 7,477 |
Warranty obligations | 27,629 | 13,088 |
Deferred revenues and customers advances | 15,029 | 3,615 |
Other liabilities, net | 22,755 | 6,640 |
Net cash provided by (used in) operating activities | (162,989) | 24,083 |
Cash flows from investing activities: | ||
Proceed from sales and maturities of available-for-sale marketable securities | 53,096 | 40,450 |
Purchase of property, plant and equipment | (43,210) | (24,545) |
Investment in available-for-sale marketable securities | (26,712) | (186,528) |
Withdrawal from bank deposits, net | 0 | 16,470 |
Other investing activities | 1,692 | 571 |
Net cash used in investing activities | (15,134) | (153,582) |
Cash flows from financing activities: | ||
Proceeds from secondary public offering, net of issuance costs | 650,526 | 0 |
Proceeds from exercise of stock-based awards | 1,478 | 5,008 |
Proceeds (withholdings) from stock-based awards, net | 822 | (6,724) |
Other financing activities | (491) | (346) |
Net cash provided by (used in) financing activities | 652,335 | (2,062) |
Increase (decrease) in cash and cash equivalents | 474,212 | (131,561) |
Cash and cash equivalents at the beginning of the period | 530,089 | 827,146 |
Effect of exchange rate differences on cash and cash equivalents | (1,529) | (10,428) |
Cash and cash equivalents at the end of the period | 1,002,772 | 685,157 |
Supplemental disclosure of non-cash activities: | ||
Right-of-use asset recognized with corresponding lease liability | $ 27,248 | $ 1,745 |
GENERAL |
3 Months Ended | ||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||
GENERAL |
NOTE
1: GENERAL
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.
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, 2021, contained
in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2022, have been applied consistently in these unaudited
interim condensed consolidated financial statements.
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. The duration, scope and
effects of the ongoing Covid-19 pandemic and the conflict in Ukraine, government and other third-party responses to it, and the related
macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain,
rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time
in response to this evolving situation. Such changes could result in future impairments of goodwill, intangibles, long-lived assets, inventories,
incremental credit losses on receivables and available-for-sale marketable debt securities, or an increase in the Company’s insurance
liabilities as of the time of a relevant measurement event.
The
Company depends on two contract manufacturers and several limited or single source component suppliers. Reliance on these vendors makes
the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing
yields, and costs. As of March 31, 2022, and December 31, 2021, two contract manufacturers collectively accounted for 20.9% and 27.9% of the Company’s total trade payables, net, respectively. During
2020, the Company began commercial shipments from its manufacturing facility in the North of Israel, “Sella 1”. During the
second quarter of 2021, Sella 1 reached full manufacturing capacity.
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 standards
that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
In
October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Accounting for Contract Assets and
Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and
measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in
Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is
effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU
should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. The Company elected to early
adopt ASU 2021-08 on January 1, 2022, and will apply this new guidance to all business combinations consummated subsequent to this date.
Currently this ASU has no material impact on our consolidated financial statements.
In
November 2021 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2021-10, Government
Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. Under ASU 2021-10, the accounting entities with
transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually
disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the
balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms
and conditions. This guidance is effective for financial statements issued for annual periods beginning after 15 December 2021. The adoption
of this ASU will have a minor impact on the disclosures to the annual consolidated financial statements.
|
MARKETABLE SECURITIES |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES |
NOTE
2: MARKETABLE SECURITIES
The
following is a summary of available-for-sale marketable securities as of March 31, 2022:
The
following is a summary of available-for-sale marketable securities as of December 31, 2021:
As
of March 31, 2022 and December 31, 2021 the Company didn’t record an allowance for credit losses for its available-for-sale marketable
debt securities. |
INVENTORIES, NET |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET |
NOTE 3: INVENTORIES, NET
|
INVESTMENT IN PRIVATELY-HELD COMPANY |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN PRIVATELY-HELD COMPANY |
NOTE
4: INVESTMENT IN PRIVATELY-HELD COMPANY
On
January 31, 2021, the Company completed an investment of $11,643
in the preferred stock of AutoGrid Systems, Inc. ("AutoGrid"), a privately held company without readily determinable fair values.
On
February 1, 2021, the Company signed on a preferred stock purchase agreement for an additional investment of $5,000
in AutoGrid's preferred stock (the "second investment"). On April 28, 2021, the Company completed the second investment.
The
Company accounted for the AutoGrid investment as an equity investment that does not have readily determinable fair values. As such, the
Company’s non-marketable equity securities had a carrying value of $16,643
as of March 31, 2022 and December 31, 2021.
Investments
in privately-held companies are included within other long-term assets on the consolidated balance sheets.
No
impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were
identified for the three months ended March 31, 2022 and 2021. |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
NOTE
5: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
To
protect against the increase in value of forecasted foreign currency cash flows resulting from salary denominated in the Israeli currency,
the New Israeli Shekels (“NIS”), during the three months ended March 31, 2022, the Company instituted a foreign currency cash
flow hedging program. The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine months with
hedging contracts. Accordingly, when the dollar strengthens against the NIS, the decline in present value of future foreign currency expenses
is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value
of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated
as cash flow hedges, as defined by ASC 815 and are all effective hedges.
As
of March 31, 2022, the Company entered into forward contracts and put and call options to sell and buy U.S. dollars (“USD”)
for NIS in the amount of $29
million and $44
million, respectively.
In
addition to the above-mentioned cash flow hedges transactions, the Company also entered into derivative instrument arrangements to hedge
the Company’s exposure to currencies other than the U.S. dollar. These derivative instruments are not designated as cash flow hedges,
as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement
of income, under "Financial expense, net".
As
of March 31, 2022, the Company entered into forward contracts to sell Australian dollars (“AUD”) for U.S. dollars in the amount
of AUD 19
million.
As
of March 31, 2022, the Company entered into forward contracts to sell Euro for U.S. dollars in the amount of €29
million.
As
of March 31, 2022, the Company entered into forward contracts to sell U.S. dollars for South Korean Won in the amount of $5,000.
The
fair value of derivative assets as of March 31, 2022, and December 31, 2021 was $2,042
and $4,009,
which was recorded in prepaid expenses and other current assets in the Consolidated Balance Sheets, respectively.
The
fair value of derivative liabilities as of March 31, 2022, and December 31, 2021 was $536
and $169,
which was recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets, respectively.
For
the three months ended March 31, 2022 and 2021, the Company recorded a gain and in the amount of $934
and $3,536,
respectively, in "Financial expense, net", related to the derivative instruments not designated as hedging instruments.
For
the three months ended March 31, 2022 and 2021, the Company recorded an unrealized loss in the amount of $1,178
and $128,
net of tax effect, respectively, in “Accumulated other comprehensive loss” related to the derivative assets designated as
hedging instruments. |
FAIR VALUE MEASUREMENTS |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
NOTE 6: FAIR VALUE MEASUREMENTS
In
accordance with ASC 820, the Company measures its cash equivalents and marketable securities, at fair value using the market approach
valuation technique. Cash equivalents and marketable securities are classified within Level 1 and Level 2, respectively, because these
assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency
derivative contracts are classified within the Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market
observable data of similar instruments.
The
following table sets forth the Company’s assets that were measured at fair value as of March 31, 2022 and December 31, 2021 by level
within the fair value hierarchy:
|
WARRANTY OBLIGATIONS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARRANTY OBLIGATIONS |
NOTE 7: WARRANTY OBLIGATIONS Changes
in the Company’s product warranty obligations for the three months ended March 31, 2022 and 2021, were as follows:
|
DEFERRED REVENUES |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFERRED REVENUES |
NOTE 8: DEFERRED REVENUES 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.
Significant
changes in the balances of deferred revenues during the period are as follows:
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 March 31, 2022:
|
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
NOTE
9: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
|
CONVERTIBLE SENIOR NOTES |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE SENIOR NOTES |
NOTE 10: 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 March 31, 2022 and December 31, 2021:
For
the three months ended March 31, 2022 and 2021 the Company recorded issuance costs related to the Notes in the amount of $728
and $724,
respectively.
As
of March 31, 2022, the issuance costs of the Notes will be amortized over the remaining term of approximately 3.5
years.
The
annual effective interest rate of the liability component is 0.47%.
As
of March 31, 2022, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $878,985.
The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day
of the reporting period.
As
of March 31, 2022, the if-converted value of the Notes exceeded the principal amount by $246,485.
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK CAPITAL |
NOTE
11: 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 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 shares of Common Stock were issued and sold pursuant to the Company’s
Registration Statement on Form S-3, which became effective upon filing with the Securities and Exchange Commission on February 22, 2022,
the related prospectus dated February 22, 2022, and the prospectus supplement dated March 17, 2022.
The
net proceeds to the Company after underwriters' discounts and commissions of $27,140
and $834
of offering costs was $650,526.
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 grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and
are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan
provides for the grant of options, 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 March 31, 2022, a total of 18,047,085
shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”).
The
Share Reserve will automatically increase on January 1st of
each year during the term of the 2015 Plan, commencing on January 1st
of the year following the year in which the 2015 Plan becomes effective, in an amount equal to 5%
of the total number of shares of capital stock outstanding on December 31st
of the preceding calendar year; provided, however, that the Company’s board of directors may determine that there will not be a
January 1st increase in the Share Reserve in a given year or
that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31st.
The
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 March 31, 2022, an aggregate of 8,617,974
options are still available for future grant under the 2015 Plan.
A
summary of the activity in stock options and related information is as follows:
The
aggregate intrinsic value in the tables above represents the total intrinsic value (the difference between the fair value of the Company’s
common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have
been received by the option holders had all option holders exercised their options on the last day of each period.
A
summary of the activity in the RSUs and related information is as follows:
A
summary of the activity in the PSUs and related information is as follows:
d.
Employee Stock Purchase Plan:
The
Company adopted an ESPP effective upon the consummation of the IPO. As of March 31, 2022, a total of 3,662,737
shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase
automatically on January 1st of each year, for ten years, by the lesser of 1%
of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643
shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion,
including a reduction to zero.
The
ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 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 March 31, 2022, 661,827
shares of common stock had been purchased under the ESPP.
As
of March 31, 2022, 3,000,910
shares of common stock were available for future issuance under the ESPP.
In
accordance with ASC No. 718, the ESPP is compensatory and, as such, results in recognition of compensation cost.
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 months ended March 31, 2022, and 2021, as follows:
The
total tax benefit associated with share-based compensation for the three months ended March 31, 2022 and 2021 was $3,478
and $4,397,
respectively. The tax benefit realized from share-based compensation for three months ended March 31, 2022 and 2021 was $2,927
and $2,749,
respectively.
As
of March 31, 2022, there were total unrecognized compensation expenses in the amount of $308,373
related to non-vested equity-based compensation arrangements granted under the Company’s plans and non-plan awards. These expenses
are expected to be recognized during the period from April 1, 2022 through October 31, 2026. |
COMMITMENTS AND CONTINGENT LIABILITIES |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES |
NOTE 12: COMMITMENTS AND CONTINGENT LIABILITIES a.
Guarantees:
As
of March 31, 2022, contingent liabilities exist regarding guarantees in the amounts of $6,284
and $1,541
in respect of office rent lease agreements and other transactions, respectively.
b.
Contractual purchase obligations:
The
Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories
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 March 31, 2022, the Company had non-cancelable purchase obligations totaling approximately $1,426,689,
out of which the Company recorded a provision for loss in the amount of $4,745.
As
of March 31, 2022, the Company had contractual obligations for capital expenditures totaling approximately $144,201.
These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process
as well as capital expenditures associated with the construction of Sella 2, the Company’s planned second lithium-ion cell and battery
factory in Korea.
c.
Legal claims:
From
time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses
its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be
reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted
to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a
particular matter.
In
September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar
Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW
- 27.6kW inverters infringe two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5
million (approximately $6,102)
for both patents. The Company challenged the validity of both patents. With respect to one of the claims, in October 2020, the German
Patent Court rendered the SMA patent invalid and this invalidity has been appealed by SMA. With respect to the other claim, in November
2019, the first instance court stayed the infringement proceedings since it considered it to be highly likely that the second SMA patent
would also be rendered invalid. The Company believes that it has meritorious defenses to the claims asserted and intends to vigorously
defend against the remaining lawsuit.
In
May 2019, the Company’s two Chinese subsidiaries and its equipment manufacturer in China were served with three lawsuits by Huawei
Technologies Co., Ltd., a Chinese entity (“Huawei”). The lawsuits, filed in the Guangzhou intellectual property court, alleged
infringement of three patents and asked for an injunction of manufacture, use, sale and offer for sale, and damage awards. A first-instance
judgment was issued on August 7, 2020 ordering the three defendants to collectively pay damages in the amount of approximately Chinese
Yuan (“CNY”) 10.5
million (approximately $1,658),
including court fees. The Company has filed an appeal with the Supreme People’s Court of China. The Company's appeal to the Supreme
People's Court was denied in December of 2021, rendering a payment by us to Huawei in an amount of $1,658.
The judgement has not been enforced. In addition, in January 2021, Huawei filed a motion to increase its claimed monetary damages to CNY
50.5
million (approximately $7,975)
with respect to the second lawsuit. In February 2021, a preliminary injunction was rendered by the Guangzhou intellectual property court
with respect to such second lawsuit and applying to seven inverter models. In line with the court’s mandate, the Company took immediate
action to make software changes to meet the court order. In addition, in February 22, 2021 a first-instance judgment was issued ordering
payment of damages in the amount of CNY 50.5
million (approximately $7,975),
including court fees, with respect to the second patent. The Company appealed this judgement with the Supreme People’s Court which
case is still pending. The first instance court’s judgement is not effective or enforceable pending the appeal. In October 2021,
a first-instance judgment was issued ordering to pay damages in the amount of approximately CNY 10.5
million (approximately $1,658),
including court fees, with respect to the third lawsuit. The Company has filed an appeal with the Supreme People’s Court of China
which also is still pending. The first instance court’s judgement is not effective or enforceable pending the appeal. The Company
believes that it has meritorious defenses to the claims asserted by Huawei.
In
December 2019, the Company received a lawsuit filed by a former consultant of the Company and its Israeli subsidiary in the amount of
NIS 25.5
million (approximately $8,029)
claiming damages caused relating to a terminated consulting agreement and stock options therein. The Company believes it has meritorious
defenses to the claims asserted and intends to vigorously defend against this lawsuit.
As
of March 31, 2022, accrued amounts for legal claims of $11,476
were recorded in accrued expenses and other current liabilities. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS |
NOTE 13: ACCUMULATED OTHER COMPREHENSIVE LOSS The
following table summarizes the changes in accumulated balances of other comprehensive gain (loss), net of taxes:
The
following table summarizes the changes in "Accumulated other comprehensive loss", net of taxes:
|
EARNINGS PER SHARE |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
NOTE
14: EARNINGS
PER SHARE
The
following table presents the computation of basic and diluted EPS:
No
shares were excluded from the calculation for the three months ended March 31, 2022 and 2021. |
OTHER OPERATING EXPENSES |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSES (INCOME), NET |
NOTE
15: OTHER
OPERATING EXPENSES
In
the three months ended March 31, 2021, the Company recorded a write-off of long-lived assets in the amount of $2,209.
|
INCOME TAXES |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Income Taxes | |
INCOME TAXES |
NOTE
16: INCOME
TAXES
The
effective tax rate for the three months ended March 31, 2022 and 2021 was 27.1%
and 20.9%,
respectively.
The
increase in the effective tax rate in the three months ended March 31, 2022, is primarily due to a different allocation of income among
the Company’s US, Israeli, and foreign subsidiaries and the change to Section 174 of the U.S Internal Revenue Code, which went into
effect on January 1, 2022. The change eliminates the option to deduct research and development expenditures currently and requires taxpayers
to amortize them over five years (if generated from a US entity) and fifteen years (if generated from non-US entities). This change resulted
in an increase in the Company’s taxable income and Global Intangible Low Taxed Income (“GILTI”) tax.
As
of March 31, 2022, and December 31, 2021, unrecognized tax benefits were $2,303
and $2,192,
respectively. If recognized, such benefits would favorably affect the Company’s effective tax rate.
The
Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties
and interest were immaterial as of March 31, 2022, and December 31, 2021. |
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION |
NOTE
17: SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Cont.)
The
Company operates in five different operating segments: Solar, Energy Storage, e-Mobility, Critical Power and Automation Machines.
The
Company's Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions
and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information about
revenues and contributed profit by the operating segments.
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 Accounting Standard Codification 606, “Revenue from Contracts with Customers”
(ASC 606).
Segment
profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased 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,
UPS products and automated machines.
The
following table presents information on reportable segments profit (loss) for the period presented:
The
following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:
The
following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:
|
MARKETABLE SECURITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-For-Sale Marketable Securities |
The
following is a summary of available-for-sale marketable securities as of March 31, 2022:
The
following is a summary of available-for-sale marketable securities as of December 31, 2021:
|
INVENTORIES, NET (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories, Net |
|
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value |
|
WARRANTY OBLIGATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warranty Obligations |
Changes
in the Company’s product warranty obligations for the three months ended March 31, 2022 and 2021, were as follows:
|
DEFERRED REVENUES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Balances of Deferred Revenues |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations |
|
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities |
|
CONVERTIBLE SENIOR NOTES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Convertible Senior Notes |
|
STOCK CAPITAL (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSU Activity |
A
summary of the activity in the RSUs and related information is as follows:
A
summary of the activity in the PSUs and related information is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Stock-based Compensation Expenses |
|
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Option [Member] | Employees and Members of Board of Directors [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Activity in the Share Options Granted to Employees and Members of the Board of Directors |
|
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in AOCI |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reclassifications out of AOCI |
|
EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share |
|
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segments and Operating Income |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segments Reconciliation to Consolidated Revenues |
The
following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:
The
following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:
|
GENERAL (Narrative) (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Accounts Payable [Member] | ||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||
Concentration risk (as a percent) | 20.90% | 27.90% |
MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Available-for-sale - matures within one year, Amortized cost | $ 159,458 | $ 168,038 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 23 |
Available-for-sale - matures within one yearr, Gross unrealized losses | (901) | (333) |
Available-for-sale - matures within one year, Fair value | 158,557 | 167,728 |
Available-for-sale - matures after one year, Amortized cost | 466,648 | 487,918 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 9 |
Available-for-sale - matures after one year, Gross unrealized losses | (16,975) | (5,699) |
Available-for-sale - matures after one year, Fair value | 449,673 | 482,228 |
Amortized cost | 626,106 | 655,956 |
Gross unrealized gains | 0 | 32 |
Gross unrealized losses | (17,876) | (6,032) |
Fair value | 608,230 | 649,956 |
Corporate bonds [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 154,930 | 160,462 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 23 |
Available-for-sale - matures within one yearr, Gross unrealized losses | (882) | (320) |
Available-for-sale - matures within one year, Fair value | 154,048 | 160,165 |
Available-for-sale - matures after one year, Amortized cost | 453,220 | 474,412 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 9 |
Available-for-sale - matures after one year, Gross unrealized losses | (16,507) | (5,580) |
Available-for-sale - matures after one year, Fair value | 436,713 | 468,841 |
Governmental bonds [Member] | ||
Available-for-sale - matures within one year, Amortized cost | 4,528 | 7,576 |
Available-for-sale - matures within one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures within one yearr, Gross unrealized losses | (19) | (13) |
Available-for-sale - matures within one year, Fair value | 4,509 | 7,563 |
Available-for-sale - matures after one year, Amortized cost | 13,428 | 13,506 |
Available-for-sale - matures after one year, Gross unrealized gains | 0 | 0 |
Available-for-sale - matures after one year, Gross unrealized losses | (468) | (119) |
Available-for-sale - matures after one year, Fair value | $ 12,960 | $ 13,387 |
INVENTORIES, NET (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 317,173 | $ 247,386 |
Work in process | 16,800 | 13,863 |
Finished goods | 98,531 | 118,894 |
Inventories, net | $ 432,504 | $ 380,143 |
INVESTMENT IN PRIVATELY-HELD COMPANY (Details) - AutoGrid Systems [Member] - USD ($) $ in Thousands |
Mar. 31, 2022 |
Feb. 01, 2021 |
Jan. 31, 2021 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments of preferred stock | $ 5,000 | $ 11,643 | |
Carrying value of non-marketable equity securities | $ 16,643 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) ₩ in Thousands, $ in Thousands, € in Millions, ₪ in Millions, $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2022
EUR (€)
|
Mar. 31, 2022
AUD ($)
|
Mar. 31, 2022
ILS (₪)
|
Mar. 31, 2022
KRW (₩)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Derivative [Line Items] | ||||||||
Fair value of derivative assets | $ 2,042 | $ 4,009 | ||||||
Gain and loss of financial income (expense), net | $ 934 | $ 3,536 | ||||||
Fair value of derivative liabilities | 536 | $ 169 | ||||||
Unrealized gain (loss) net of tax effect | $ 1,178 | $ 128 | ||||||
Foreign exchange forward contracts [Member] | USD [Member] | ||||||||
Derivative [Line Items] | ||||||||
Forward/option contracts | € 29 | $ 19 | ₩ 5,000 | $ 29,000 | ||||
Foreign exchange forward contracts [Member] | NIS [Member] | ||||||||
Derivative [Line Items] | ||||||||
Forward/option contracts | ₪ | ₪ 44 |
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Level 1 [Member] | Money Market Mutual Funds [Member] | ||
Fair value of assets | $ 603,405 | $ 21,680 |
Level 2 [Member] | Forward contracts designated as hedging instruments [Member] | Derivative Financial Instruments Liabilities [Member] | ||
Fair value of liabilities | (245) | 0 |
Level 2 [Member] | Options and forward contracts not designated as hedging instruments [Member] | Derivative Financial Instruments Liabilities [Member] | ||
Fair value of liabilities | (291) | 169 |
Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | Forward contracts designated as hedging instruments [Member] | ||
Fair value of assets | 465 | 992 |
Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | Options and forward contracts not designated as hedging instruments [Member] | ||
Fair value of assets | 1,577 | 3,017 |
Level 2 [Member] | Short-term corporate bonds [Member] | ||
Fair value of assets | 154,048 | 160,165 |
Level 2 [Member] | Short-term governmental bonds [Member] | ||
Fair value of assets | 4,509 | 7,563 |
Level 2 [Member] | Long-term corporate bonds [Member] | ||
Fair value of assets | 436,713 | 468,841 |
Level 2 [Member] | Long-term governmental bonds [Member] | ||
Fair value of assets | $ 12,960 | $ 13,387 |
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Changes in the Company's product warranty liability | |||
Balance, at the beginning of the period | $ 265,160 | $ 204,994 | |
Additions and adjustments to cost of revenues | 47,907 | 29,971 | |
Usage and current warranty expenses | (20,401) | (17,012) | |
Balance, at end of the period | 292,666 | 217,953 | |
Less current portion | (82,340) | (63,443) | $ (71,480) |
Long term portion | $ 210,326 | $ 154,510 | $ 193,680 |
DEFERRED REVENUES (Schedule of Balances of Deferred Revenues) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Balance, at the beginning of the period | $ 169,345 | $ 140,020 |
Revenue recognized | (14,529) | (19,786) |
Increase in deferred revenues and customer advances | 29,429 | 22,999 |
Balance, at the end of the period | 184,245 | 143,233 |
Less current portion | (25,511) | (21,065) |
Long term portion | $ 158,734 | $ 122,168 |
DEFERRED REVENUES (Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Deferred revenues | $ 184,245 | $ 169,345 | $ 143,233 | $ 140,020 |
2022 [Member] | ||||
Deferred revenues | 15,468 | |||
2023 [Member] | ||||
Deferred revenues | 17,380 | |||
2024 [Member] | ||||
Deferred revenues | 8,468 | |||
2025 [Member] | ||||
Deferred revenues | 7,506 | |||
2026 [Member] | ||||
Deferred revenues | 6,769 | |||
Thereafter [Member] | ||||
Deferred revenues | $ 128,654 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 65,903 | $ 51,014 |
Government authorities | 27,707 | 22,631 |
Operating lease liabilities | 14,570 | 12,728 |
Provision for legal claims | 11,476 | 11,622 |
Other | 15,295 | 11,384 |
Accrued expenses and other accounts payable | $ 134,951 | $ 109,379 |
CONVERTIBLE SENIOR NOTES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Sep. 25, 2020 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Standards Update 2020-06 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest | 0.47% | ||
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 | 0.00% | ||
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 | $ 277.80 | ||
Issuance costs | $ 728 | $ 724 | |
Amortized period | 3 years 6 months | ||
Amount by which the if-converted value of the Notes exceeded the principal amount | $ 246,485 | ||
Senior Notes [Member] | Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Estimated fair value of notes | $ 878,985 |
CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Liability: | ||
Net carrying amount | $ 622,263 | $ 621,535 |
Convertible Senior Notes [Member] | ||
Liability: | ||
Principal | 632,500 | 632,500 |
Unamortized issuance costs | (10,237) | (10,965) |
Net carrying amount | $ 622,263 | $ 621,535 |
STOCK CAPITAL (Stock option plans) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
May 17, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from secondary public offering, net of issuance costs | $ 650,526 | $ 0 | |
Underwriters discounts and commissions | 27,140 | ||
Offering costs | $ 834 | ||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 10,000,000 | ||
Tax benefit associated with share-based compensation | $ 3,478 | 4,397 | |
Tax benefit realized from share-based compensation | 2,927 | $ 2,749 | |
Unrecognized compensation expense | $ 308,373 | ||
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 | $ 295.00 | ||
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] | 2007 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 | 18,047,085 | ||
Number of shares available for future grant under the plan | 379,358 | ||
Option [Member] | 2015 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 | ||
Percentage of common shares increase automatically each year | 5.00% | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan | 3,662,737 | ||
Number of shares available for future grant under the plan | 3,000,910 | ||
Number of Common stock purchased | 661,827 | ||
Period of plan increase automatically number of shares | 487,643 | ||
Percentage of common shares increase automatically each year | 1.00% | ||
Maximum percentage of salary | 15.00% | ||
Aggregate limit per participant | $ 15 | ||
Purchase price of common stock, percent | 85.00% |
STOCK CAPITAL (Summary of the activity in the share options) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Number of options | ||
Outstanding at the beginning of the period | 474,280 | |
Exercised | (51,759) | |
Forfeited or expired | (243) | |
Outstanding at the end of the period | 422,278 | 474,280 |
Weighted average exercise price | ||
Outstanding at the beginning of the period | $ 44.68 | |
Exercised | 28.55 | |
Forfeited or expired | 5.01 | |
Outstanding at the end of the period | $ 46.63 | $ 44.68 |
Weighted average remaining contractual term in years | ||
Outstanding | 5 years 14 days | 5 years 2 months 19 days |
Aggregate intrinsic Value | ||
Outstanding | $ 114,987 | $ 112,479 |
Exercised | $ 15,142 | |
Vested and expected to vest at the end of the period | ||
Number of options | 420,193 | |
Weighted average exercise price | $ 46.36 | |
Weighted average remaining contractual term in years | 5 years 5 months 12 days | |
Aggregate intrinsic Value | $ 115,977 | |
Exercisable at the end of the period | ||
Number of options | 342,083 | |
Weighted average exercise price | $ 31.86 | |
Weighted average remaining contractual term in years | 4 years 11 months 26 days | |
Aggregate intrinsic Value | $ 99,379 |
STOCK CAPITAL (Schedule of RSUs and PSUs Activity) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 1,759,972 |
Granted | shares | 94,839 |
Vested | shares | (218,992) |
Forfeited | shares | (44,567) |
Unvested at end of period | shares | 1,591,252 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 189.25 |
Weighted average grant date fair value, granted | $ / shares | 312.32 |
Weighted average grant date fair value, vested | $ / shares | 118.04 |
Weighted average grant date fair value, forfeited | $ / shares | 204.02 |
Weighted average grant date fair value, end of period | $ / shares | $ 185.66 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at beginning of period | shares | 108,595 |
Granted | shares | 54,964 |
Unvested at end of period | shares | 163,559 |
Weighted average grant date fair value, beginning of period | $ / shares | $ 296.40 |
Weighted average grant date fair value, granted | $ / shares | 209.33 |
Weighted average grant date fair value, end of period | $ / shares | $ 267.14 |
STOCK CAPITAL (Schedule of stock-based compensation expense for employees and nonemployee) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 34,107 | $ 23,153 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 5,062 | 5,790 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 14,985 | 8,798 |
Selling and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 6,701 | 5,435 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 7,359 | $ 3,130 |
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands, € in Millions, ₪ in Millions, ¥ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2021
CNY (¥)
|
Oct. 31, 2021
USD ($)
|
Feb. 22, 2021
CNY (¥)
|
Feb. 22, 2021
USD ($)
|
Jan. 31, 2021
CNY (¥)
|
Jan. 31, 2021
USD ($)
|
Mar. 31, 2022
EUR (€)
|
Mar. 31, 2022
CNY (¥)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2019
ILS (₪)
|
Dec. 31, 2019
USD ($)
|
|
Non-cancelable purchase obligations | $ 1,426,689 | ||||||||||
Provision for loss | 4,745 | ||||||||||
Contractual obligations for capital expenditures | 144,201 | ||||||||||
Lawsuit claims | ¥ 50.5 | $ 7,975 | ¥ 10.5 | 1,658 | |||||||
Accured amount of legal claims | 11,476 | ||||||||||
Former Consultant and Israeli Subsidiary [Member] | |||||||||||
Lawsuit claims | ₪ 25.5 | $ 8,029 | |||||||||
Patents [Member] | |||||||||||
Value in dispute | € 5.5 | 6,102 | |||||||||
Second Patent [Member] | |||||||||||
Damages Paid | ¥ 10.5 | $ 1,658 | ¥ 50.5 | $ 7,975 | |||||||
Office Rent Lease Agreements [Member] | |||||||||||
Guarantees amount | 6,284 | ||||||||||
Other Transactions [Member] | |||||||||||
Guarantees amount | $ 1,541 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Beginning balance | $ (27,319) | |
Net current period other comprehensive income (loss) | (18,748) | $ (10,618) |
Ending balance | (46,067) | (6,761) |
Unrealized gains (losses) on available-for-sale marketable securities [Member] | ||
Beginning balance | (4,709) | 240 |
Revaluation | (12,721) | (1,468) |
Tax on revaluation | 2,471 | 283 |
Other comprehensive income (loss) before reclassifications | (10,250) | (1,185) |
Reclassification | 844 | 0 |
Tax on reclassification | (100) | 0 |
Losses (gains) reclassified from accumulated other comprehensive income | 744 | 0 |
Net current period other comprehensive income (loss) | (9,506) | (1,185) |
Ending balance | (14,215) | (945) |
Unrealized gains on cash flow hedges [Member] | ||
Beginning balance | 874 | 0 |
Revaluation | (1,337) | (146) |
Tax on revaluation | 159 | 18 |
Other comprehensive income (loss) before reclassifications | (1,178) | (128) |
Reclassification | 565 | 0 |
Tax on reclassification | (67) | 0 |
Losses (gains) reclassified from accumulated other comprehensive income | 498 | 0 |
Net current period other comprehensive income (loss) | (680) | (128) |
Ending balance | 194 | (128) |
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature [Member] | ||
Beginning balance | (17,420) | 0 |
Revaluation | (6,983) | (3,675) |
Tax on revaluation | 0 | 0 |
Other comprehensive income (loss) before reclassifications | (6,983) | (3,675) |
Net current period other comprehensive income (loss) | (6,983) | (3,675) |
Ending balance | (24,403) | (3,675) |
Unrealized gains (losses) on foreign currency translation [Member] | ||
Beginning balance | (6,064) | 3,617 |
Revaluation | (1,579) | (5,630) |
Tax on revaluation | 0 | 0 |
Other comprehensive income (loss) before reclassifications | (1,579) | (5,630) |
Net current period other comprehensive income (loss) | (1,579) | (5,630) |
Ending balance | $ (7,643) | $ (2,013) |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Reclassifications of Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenues | $ 476,122 | $ 265,415 |
Research and development, net | 66,349 | 46,977 |
Sales and marketing | 35,316 | 26,911 |
General and administrative | 26,429 | 19,849 |
Total, before income taxes | 128,094 | 95,946 |
Income taxes | 12,292 | 7,955 |
Net income | 33,123 | 30,076 |
Unrealized gains on 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 expense, net | (844) | 0 |
Income taxes | 100 | 0 |
Total, net of income taxes | (744) | 0 |
Unrealized gains on cash flow hedges, net [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 | (67) | 0 |
Research and development, net | (338) | 0 |
Sales and marketing | (71) | 0 |
General and administrative | (89) | 0 |
Total, before income taxes | (565) | 0 |
Income taxes | 67 | 0 |
Net income | (498) | 0 |
Total reclassifications for the period | $ (1,242) | $ 0 |
EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Numerator: | ||
Net income | $ 33,123 | $ 30,076 |
Denominator: | ||
Shares used in computing net earnings per share of common stock, basic | 53,134,937 | 51,726,998 |
Numerator: | ||
Net income attributable to common stock, basic | $ 33,123 | $ 30,076 |
Notes due 2025 | 553 | 534 |
Net income attributable to common stock, diluted | $ 33,676 | $ 30,610 |
Denominator: | ||
Shares used in computing net earnings per share of common stock, basic | 53,134,937 | 51,726,998 |
Notes due 2025 | 2,276,818 | 2,276,818 |
Effect of stock-based awards | 903,438 | 1,993,320 |
Shares used in computing net earnings per share of common stock, diluted | 56,315,193 | 55,997,136 |
OTHER OPERATING EXPENSES (Narrative) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Options [Member] | |
Write-off of long-lived assets | $ 2,209 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Taxes Schedule Of Taxes On Income Details | ||
Effective tax rate | 27.10% | 20.90% |
Unrecognized tax benefits | $ 2,303 | $ 2,192 |
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 655,080 | $ 405,489 |
Cost of revenues | 476,122 | 265,415 |
Gross profit | 178,958 | 140,074 |
Research and development | 66,349 | 46,977 |
Sales and marketing | 35,316 | 26,911 |
General and administrative | 26,429 | 19,849 |
Segments profit (loss) | 33,123 | 30,076 |
Solar segment profit | 98,712 | 85,538 |
All other segment loss | (11,522) | (13,630) |
Segments operating profit | 87,190 | 71,908 |
Amounts not allocated to segments: | ||
Stock based compensation expenses | (34,107) | (23,153) |
Other unallocated expenses | (2,219) | (4,627) |
Consolidated operating income | 50,864 | 44,128 |
Solar [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 607,997 | 376,287 |
Cost of revenues | 424,500 | 226,833 |
Gross profit | 183,497 | 149,454 |
Research and development | 43,131 | 31,902 |
Sales and marketing | 25,805 | 18,742 |
General and administrative | 15,849 | 13,272 |
Segments profit (loss) | 98,712 | 85,538 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 46,948 | 29,116 |
Cost of revenues | 44,341 | 30,483 |
Gross profit | 2,607 | (1,367) |
Research and development | 7,930 | 6,265 |
Sales and marketing | 2,574 | 2,497 |
General and administrative | 3,625 | 3,501 |
Segments profit (loss) | $ (11,522) | $ (13,630) |
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 655,080 | $ 405,489 |
Solar revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 607,997 | 376,287 |
All other revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 46,948 | 29,116 |
Revenues from services ASC 606 [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 135 | $ 86 |
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