0001178913-21-003364 | 10-Q | XBRL Viewer | Solaredge Technologies INC

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Oct. 25, 2021
Cover [Abstract]
Entity Central Index Key	0001419612
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-36894
Entity Registrant Name	SOLAREDGE TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Entity Tax Identification Number	20-5338862
Entity Address, Country	IL
Entity Address, City or Town	Herziliya Pituach
Entity Address, Address Line One	1 HaMada Street
Entity Address, Postal Zip Code	4673335
City Area Code	972
Local Phone Number	(9) 957-6620
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Title of each class	Common stock, par value $0.0001 per share
Trading Symbol	SEDG
Name of Exchange on which Security is Registered	NASDAQ
Entity Common Stock, Shares Outstanding		52,519,519

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 526,588	$ 827,146
Short-term bank deposits	10,122	60,096
Restricted bank deposits	1,064	2,611
Marketable securities	145,459	143,687
Trade receivables, net of allowances of $2,639 and $2,886, respectively	416,244	218,706
Inventories, net	304,713	331,696
Prepaid expenses and other current assets	148,364	135,399
Total current assets	1,552,554	1,719,341
LONG-TERM ASSETS:
Marketable securities	473,315	147,434
Deferred tax assets, net	21,827	11,676
Property, plant and equipment, net	353,344	303,408
Operating lease right-of-use assets, net	39,314	41,600
Intangible assets, net	61,639	67,818
Goodwill	131,757	140,479
Other long-term assets	23,083	5,353
Total long-term assets	1,104,279	717,768
Total assets	2,656,833	2,437,109
CURRENT LIABILITIES:
Trade payables, net	137,621	162,051
Employees and payroll accruals	63,845	63,738
Current maturities of bank loans and accrued interest	141	16,894
Warranty obligations	67,096	62,614
Deferred revenues and customers advances	16,939	24,648
Accrued expenses and other current liabilities	119,865	106,154
Total current liabilities	405,507	436,099
LONG-TERM LIABILITIES:
Convertible senior notes, net	620,808	573,350
Warranty obligations	179,967	142,380
Deferred revenues	136,269	115,372
Deferred tax liabilities, net	405	8,593
Finance lease liabilities	25,375	26,173
Operating lease liabilities	31,509	35,194
Other long-term liabilities	14,910	14,191
Total long-term liabilities	1,009,243	915,253
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2021 and December 31, 2020; issued and outstanding: 52,519,490 and 51,560,936 shares as of September 30, 2021 and December 31, 2020, respectively	5	5
Additional paid-in capital	652,109	603,891
Accumulated other comprehensive income (loss)	(19,135)	3,857
Retained earnings	609,104	478,004
Total stockholders' equity	1,242,083	1,085,757
Total liabilities and stockholders' equity	$ 2,656,833	$ 2,437,109

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowances of trade receivable	$ 2,639	$ 2,886
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	125,000,000	125,000,000
Common stock, issued shares	52,519,490	51,560,936
Common stock, outstanding shares	52,519,490	51,560,936

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenues	$ 526,404	$ 338,095	$ 1,411,950	$ 1,101,164
Cost of revenues	353,843	230,032	943,123	750,130
Gross profit	172,561	108,063	468,827	351,034
Operating expenses:
Research and development	55,666	40,817	155,307	115,610
Sales and marketing	29,383	21,924	85,752	67,113
General and administrative	21,098	14,928	60,317	45,077
Other operating expenses (income), net			1,350	(4,900)
Total operating expenses	106,147	77,669	302,726	222,900
Operating income	66,414	30,394	166,101	128,134
Financial income (expenses), net	(5,751)	15,765	(13,591)	10,725
Income before income taxes	60,663	46,159	152,510	138,859
Income taxes	7,615	2,408	24,294	16,192
Net income	$ 53,048	$ 43,751	$ 128,216	$ 122,667
Net income per share:
Net basic earnings per share of common stock	$ 1.01	$ 0.87	$ 2.46	$ 2.46
Net diluted earnings per share of common stock	$ 0.96	$ 0.83	$ 2.32	$ 2.33
Weighted average number of shares used in computing net basic earnings per share of common stock	52,355,867	50,529,691	52,056,233	49,842,399
Weighted average number of shares used in computing net diluted earnings per share of common stock	55,929,000	53,144,188	55,955,441	52,623,675

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 53,048	$ 43,751	$ 128,216	$ 122,667
Other comprehensive income (loss), net of tax:
Net change related to available-for-sale securities	29	(210)	(1,847)	556
Net change related to cash flow hedges	308	(446)	619
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature	(12,272)		(14,168)
Foreign currency translation adjustments, net	(3,664)	1,455	(7,596)	(1,390)
Total other comprehensive income (loss)	(15,599)	799	(22,992)	(834)
Comprehensive income	$ 37,449	$ 44,550	$ 105,224	$ 121,833

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
$ in Thousands

Common Stock [Member]

Additional paid in capital [Member]

Accumulated Other comprehensive income (loss) [Member]

Retained earnings [Member]

Stockholders Equity

Balance at Dec. 31, 2019

$ 5

$ 475,792

$ (1,809)

$ 337,682

$ 811,670

Balance (in shares) at Dec. 31, 2019

48,898,062

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

3,308

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

701,431

Equity based compensation expenses to employees and nonemployees

12,773

Other comprehensive income (loss) adjustments

(3,581)

Net income

42,248

Balance at Mar. 31, 2020

$ 5

491,873

(5,390)

379,930

866,418

Balance (in shares) at Mar. 31, 2020

49,599,493

Balance at Dec. 31, 2019

$ 5

475,792

(1,809)

337,682

811,670

Balance (in shares) at Dec. 31, 2019

48,898,062

Balance at Sep. 30, 2020

$ 5

574,326

(2,643)

460,349

1,032,037

Balance (in shares) at Sep. 30, 2020

51,207,310

Balance at Mar. 31, 2020

$ 5

491,873

(5,390)

379,930

866,418

Balance (in shares) at Mar. 31, 2020

49,599,493

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

5,806

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

476,258

Equity based compensation expenses to employees and nonemployees

13,961

Other comprehensive income (loss) adjustments

1,948

Net income

36,668

Balance at Jun. 30, 2020

$ 5

511,640

(3,442)

416,598

924,801

Balance (in shares) at Jun. 30, 2020

50,075,751

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

10,091

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

1,131,559

Equity based compensation expenses to employees and nonemployees

16,259

Equity component of convertible senior notes, net

36,336

Other comprehensive income (loss) adjustments

799

Net income

43,751

Balance at Sep. 30, 2020

$ 5

574,326

(2,643)

460,349

1,032,037

Balance (in shares) at Sep. 30, 2020

51,207,310

Balance at Dec. 31, 2020

$ 5

603,891

3,857

478,004

1,085,757

Balance (in shares) at Dec. 31, 2020

51,560,936

Cumulative effect of adopting ASU 2020-06

(36,336)

2,884

(33,452)

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

5,008

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

405,239

Equity based compensation expenses to employees and nonemployees

23,153

Other comprehensive income (loss) adjustments

(10,618)

Net income

30,076

Balance at Mar. 31, 2021

$ 5

595,716

(6,761)

510,964

1,099,924

Balance (in shares) at Mar. 31, 2021

51,966,175

Balance at Dec. 31, 2020

$ 5

603,891

3,857

478,004

1,085,757

Balance (in shares) at Dec. 31, 2020

51,560,936

Balance at Sep. 30, 2021

$ 5

652,109

(19,135)

609,104

1,242,083

Balance (in shares) at Sep. 30, 2021

52,519,490

Balance at Mar. 31, 2021

$ 5

595,716

(6,761)

510,964

1,099,924

Balance (in shares) at Mar. 31, 2021

51,966,175

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

5,500

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

297,801

Equity based compensation expenses to employees and nonemployees

24,052

Other comprehensive income (loss) adjustments

3,225

Net income

45,092

Balance at Jun. 30, 2021

$ 5

625,268

(3,536)

556,056

1,177,793

Balance (in shares) at Jun. 30, 2021

52,263,976

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards

^[1]

656

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards, shares

255,514

Equity based compensation expenses to employees and nonemployees

26,185

Other comprehensive income (loss) adjustments

(15,599)

Net income

53,048

Balance at Sep. 30, 2021

$ 5

$ 652,109

$ (19,135)

$ 609,104

$ 1,242,083

Balance (in shares) at Sep. 30, 2021

52,519,490

[1]	Represents an amount less than $1.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows provided by operating activities:
Net income	$ 128,216	$ 122,667
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	21,492	16,376
Amortization of intangible assets	7,487	7,081
Amortization of debt discount and debt issuance costs	2,175	168
Amortization of premium and accretion of discount on available-for-sale marketable securities, net	6,301	602
Stock-based compensation expenses	73,390	42,993
Deferred income taxes, net	(6,686)	(5,263)
Loss from disposal of assets	2,013
Exchange rate fluctuations and other items, net	13,086	(235)
Changes in assets and liabilities:
Inventories, net	30,678	(121,999)
Prepaid expenses and other assets	(14,977)	37,871
Trade receivables, net	(206,131)	118,044
Trade payables, net	(22,959)	(35,499)
Employees and payroll accruals	14,321	3,132
Warranty obligations	42,368	23,155
Deferred revenues and customers advances	13,723	(24,283)
Other liabilities, net	20,055	10,619
Net cash provided by operating activities	124,552	195,429
Cash flows from investing activities:
Investment in available-for-sale marketable securities	(511,615)	(36,781)
Proceeds from sales and maturities of available-for-sale marketable securities	174,817	116,419
Purchase of property, plant and equipment	(94,135)	(90,553)
Withdrawal from (investment in) bank deposits, net	50,020	(14,667)
Investment in privately held company	(16,643)
Payment for asset acquisition, net of cash acquired	(2,996)
Withdrawal from restricted bank deposits	46	25,538
Other investing activities	2,547	743
Net cash provided by (used in) investing activities	(397,959)	699
Cash flows from financing activities:
Repayment of bank loans	(16,219)	(15,194)
Proceeds from exercise of stock-based awards and payment of withholding taxes	(2,274)	19,205
Proceeds from issuance of convertible senior notes, net		618,269
Proceeds from bank loans		15,185
Other financing activities	(939)	(152)
Net cash provided by (used in) financing activities	(19,432)	637,313
Increase (decrease) in cash and cash equivalents	(292,839)	833,441
Cash and cash equivalents at the beginning of the period	827,146	223,901
Effect of exchange rate differences on cash and cash equivalents	(7,719)	(9,233)
Cash and cash equivalents at the end of the period	$ 526,588	$ 1,048,109

GENERAL

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1:-GENERAL

a.SolarEdge Technologies, Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter 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 storage and backup solution that is used to increase energy independence and maximize self-consumption for homeowners by utilizing a battery, either the energy bank battery introduced by the Company or a battery that is sold separately by third party manufacturers, to store and supply power as needed, and (v) additional smart energy management solutions.

The Company and its subsidiaries sell products worldwide through large distributors, electrical equipment wholesalers, as well as directly to large solar installers and engineering, procurement and construction firms.

b.The Company has expanded its activity to other areas of smart energy technology organically and through acquisitions. The Company now offers a variety of energy solutions, which include lithium-ion cells, batteries and energy storage systems (“Energy Storage”), full powertrain kits for electric vehicles, or EVs (“e-Mobility”), uninterrupted power supply solutions or UPS (“Critical Power”), as well as automated machines for industrial use (“Automation Machines”).

c.Recently issued and adopted pronouncements:

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. ASU 2020-06 will be effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in an increase of retained earnings in an amount of $2,884, a decrease of an additional paid-in capital in an amount of $36,336, an increase of convertible senior notes, net, in an amount of $45,282 and a decrease of deferred tax liabilities, net, in an amount of $11,830. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. The impact of adoption of this standard on the Company’s earnings per share was immaterial.

In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarifies the interaction between the accounting for equity securities in Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The guidance is effective for interim and annual periods beginning after December 15, 2020. Effective January 1, 2021, the Company adopted this standard on a prospective basis. The impact of adoption of this standard on the Company’s consolidated financial statements was immaterial.

F - 10

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 1:-GENERAL (Cont.)

d.Basis of Presentation:

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.

The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2020, contained in the Company’s Annual Report on Form 10-K/A filed with the SEC on February 19, 2021, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Topic 470) (see Note 7).

e.Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. The duration, scope and effects of the ongoing COVID-19 pandemic, government and other third-party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time in response to this evolving situation. Such changes could result in future impairments of goodwill, intangibles, long-lived assets, inventories, incremental credit losses on receivables and AFS debt securities, or an increase in the Company’s insurance liabilities as of the time of a relevant measurement event.

f.Concentrations of supply risks:

The Company depends on two contract manufacturers and several limited or single source component suppliers. Reliance on these vendors makes the Company vulnerable to possible capacity constraints and reduced control over component availability, delivery schedules, manufacturing yields, and costs.

As of September 30, 2021, and December 31, 2020, two contract manufacturers collectively accounted for 23.2% and 48.5% 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.

g.Certain prior period amounts have been reclassified to conform to the current period presentation.

INVENTORIES, NET

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

INVENTORIES, NET

NOTE 2:-INVENTORIES, NET

	September 30, 2021		December 31, 2020
Raw materials	$	161,863	$	128,363
Work in process		21,795		25,461
Finished goods		121,055		177,872
	$	304,713	$	331,696

MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2021

Marketable Securities [Abstract]

MARKETABLE SECURITIES

NOTE 3:-MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable debt securities as of September 30, 2021:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	138,938	$	69	$	(143	)	$	138,864
Governmental bonds		6,600		1		(6	)		6,595
		145,538		70		(149	)		145,459

Available for-sale – matures after one year:
Corporate bonds		463,081		64		(1,979	)		461,166
Governmental bonds		12,211		-		(62	)		12,149
		475,292		64		(2,041	)		473,315

Total	$	620,830	$	134	$	(2,190	)	$	618,774

The following is a summary of available-for-sale marketable debt securities as of December 31, 2020:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	141,824	$	509	$	(57	)	$	142,276
Governmental bonds		1,400		11		-			1,411
		143,224		520		(57	)		143,687

Available for-sale – matures after one year:
Corporate bonds		142,701		65		(214	)		142,552
Governmental bonds		4,895		-		(13	)		4,882
		147,596		65		(227	)		147,434

Total	$	290,820	$	585	$	(284	)	$	291,121

As of September 30, 2021, the Company didn’t record an allowance for credit losses for its available-for-sale marketable debt securities.

INVESTMENT IN PRIVATELY-HELD COMPANY

9 Months Ended

Sep. 30, 2021

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, the Company completed the second investment.

Under ASU 2016-01 equity investments without readily determinable fair value include ownership rights that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence.

The Company adjusts the carrying value of its non-marketable equity securities to fair value upon observable transactions for identical or similar investments of the same issuer or upon impairment. All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in financial income (expenses), net.

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 September 30, 2021. The maximum loss the Company can incur for its investments is their carrying value. Investments in privately-held companies are included within other long-term assets on the consolidated balance sheets.

The Company periodically evaluates the carrying value of the investments in privately-held companies when events and circumstances indicate that the carrying amount of the investment may not be recovered. These investments include the Company’s holdings in privately-held companies that are not traded and therefore not supported with observable market prices. The Company may determine the fair value by reviewing equity valuation reports, current financial results, long-term plans of the privately-held companies, the amount of cash that the privately-held companies have on-hand, the ability to obtain additional financing and overall market conditions in which the privately-held companies operate or based on the price observed from the most recent completed financing.

No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three and nine months ended September 30, 2021.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 5:-FAIR VALUE MEASUREMENTS

In accordance with ASC 820, the Company measures its cash equivalents and marketable securities, at fair value using the market approach valuation technique. Cash equivalents and marketable securities are classified within Level 1 and Level 2, respectively, because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within the Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2021 and December 31, 2020 by level within the fair value hierarchy:

		Fair value measurements as of
	Fair Value	September 30,		December 31,
Description	Hierarchy	2021		2020
Measured at fair value on a recurring basis:

Assets:
Cash equivalents:
Money market mutual funds	Level 1	$	85,581	$	480,673

Derivative instruments asset:
Options and forward contracts designated as hedging instruments	Level 2	$	706	$	-
Options and forward contracts not designated as hedging instruments	Level 2	$	3,796	$	3,786

Short-term marketable securities:
Corporate bonds	Level 2	$	138,864	$	142,276
Governmental bonds	Level 2	$	6,595	$	1,411

Long-term marketable securities:
Corporate bonds	Level 2	$	461,166	$	142,552
Governmental bonds	Level 2	$	12,149	$	4,882

Liabilities
Derivative instruments liability:
Options and forward contracts not designated as hedging instruments	Level 2	$	-	$	(5,819	)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 6:-DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company accounts for derivatives and hedging based on ASC 815 (“Derivatives and Hedging”). ASC 815 requires the Company to recognize all derivatives on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.

To protect against the increase in value of forecasted foreign currency cash flows resulting from salary denominated in the Israeli currency, the New Israeli Shekels (“NIS”), during the nine months ended September 30, 2021, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts. Accordingly, when the dollar strengthens against the NIS, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges.

As of September 30, 2021, the Company entered into forward contracts to sell U.S. dollars for NIS in the amount of $36,481.

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 income (expenses), net.

As of September 30, 2021, the Company entered into forward contracts and put and call options to sell Australian dollars (“AUD”) for U.S. dollars in the amount of AUD 6 million and AUD 9 million, respectively.

As of September 30, 2021, the Company entered into forward contracts and put and call options to sell Euro (“EUR”) for U.S. dollars in the amount of EUR 56 million and EUR 24 million, respectively.

The fair value of derivative assets as of September 30, 2021 and December 31, 2020, was $4,502 and $3,786, respectively, which was recorded in prepaid expenses and other current assets in the consolidated balance sheets.

As of September 30, 2021, there were no derivative liabilities. As of December 31, 2020, the fair value of derivative liabilities was $5,819, which was recorded in accrued expenses and other current liabilities in the consolidated balance sheets.

For the three months ended September 30, 2021 and 2020, the Company recorded a gain and loss in the amount of $3,350 and $1,450, respectively, in financial income (expense), net, related to the derivative instruments not designated as cash flow hedges.

For the three months ended September 30, 2021 and 2020, the Company recorded an unrealized gain in the amount of $1,006 and $85 net of tax effect, respectively, in “accumulated other comprehensive loss” related to the derivative assets designated as hedging instruments.

F - 15

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 6:-DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Cont.)

For the nine months ended September 30, 2021 and 2020, the Company recorded a gain and loss in the amount of $7,706 and $959, respectively, in financial income (expense), net, related to the derivative instruments not designated as cash flow hedges.

For the nine months ended September 30, 2021 and 2020, the Company recorded unrealized gain in the amount of $1,719 and $966 net of tax effect, respectively, in “accumulated other comprehensive loss” related to the derivative assets designated as hedging instruments.

OTHER COMPRENHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2021

Other Comprenhensive Income

OTHER COMPRENHENSIVE INCOME (LOSS)

NOTE 7:-OTHER COMPRENHENSIVE INCOME (LOSS)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)												Affected Line Item in the Statements of Income
	Three months ended						Nine months ended
	September 30,						September 30,
	2021			2020			2021			2020
Unrealized gains on cash flow hedges, net	$	97		$	90		$	152		$	189		Cost of revenues
		476			353			751			623		Research and development
		97			75			153			136		Sales and marketing
		124			87			196			153		General and administrative
		794			605			1,252			1,101		Total, before income taxes
		(96	)		(74	)		(152	)		(135	)	Income tax expense
	$	698		$	531		$	1,100		$	966		Total, net of income taxes
Unrealized gains on available-for-sale marketable securitie	$	12		$	-		$	16		$	-		Financial income (expenses), net
		-			-			(4	)		-		Income tax expense
	$	12		$	-		$	12		$	-		Total, net of income taxes
	$	710		$	531		$	1,112		$	966		Total, net of income taxes

CONVERTIBLE SENIOR NOTES

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

NOTE 8:-CONVERTIBLE SENIOR NOTES

On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.

Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock.

In addition, upon the occurrence of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes, in multiples of $1,000 principal amount, at a repurchase price of 100% of the principal amount of the Notes, plus any accrued and unpaid special interest, if any, to, but excluding, the repurchase date. If certain fundamental changes referred to as make-whole fundamental changes occur, the conversion rate for the Notes may be increased.

The Convertible Senior Notes consisted of the following as of September 30, 2021 and December 31, 2020:

	As of			As of
	September 30, 2021			December 31, 2020
Liability:
Principal	$	632,500		$	632,500
Unamortized debt discount		-			(46,353	)
Unamortized issuance costs		(11,692	)		(12,797	)
Net carrying amount	$	620,808		$	573,350

Equity component:
Amount allocated to conversion option	$	-		$	48,834
Deferred taxes liability, net		-			(11,368	)
Allocated issuance costs		-			(1,130	)
Equity component, net	$	-		$	36,336

F - 17

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 8:-CONVERTIBLE SENIOR NOTES (Cont.)

As of September 30, 2021, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 4 years.

Prior to January 1, 2021, the Company separated the Notes into liability and equity components. On issuance, the carrying amount of the equity components was recorded as a debt discount and subsequently amortized to interest expense. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. The Notes are accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives.

Adoption of the new standard resulted in an increase of retained earnings in an amount of $2,884, a decrease of an additional paid-in capital in an amount of $36,336, an increase of convertible senior notes, net, in an amount of $45,282 and a decrease of deferred tax liabilities, net, in an amount of $11,830. The impact of adoption of this standard on the Company’s earnings per share was immaterial.

The annual effective interest rate of the Notes following the adoption of ASU 2020-06 is 0.47%.

The following table presents the total amount of interest expenses recognized related to the Notes for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Amortization of debt discount	$	-	$	131	$	-	$	131
Amortization of debt issuance costs		726		37		2,176		37
Total interest expenses	$	726	$	168	$	2,176	$	168

As of September 30, 2021, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $791,106. The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of September 30, 2021, the if-converted value of the Notes exceeded the principal amount by $158,606.

WARRANTY OBLIGATIONS

9 Months Ended

Sep. 30, 2021

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

NOTE 9:-WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the nine months ended September 30, 2021 and 2020, were as follows:

	As of September 30,
	2021			2020
Balance, at the beginning of the period	$	204,994		$	172,563
Additions and adjustments to cost of revenues		109,382			74,465
Usage and current warranty expenses		(67,313	)		(51,334	)
Balance, at the end of the period		247,063			195,694
Less current portion		(67,096	)		(65,080	)
Long term portion	$	179,967		$	130,614

COMMITMENTS AND CONTINGENT LIABILITIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 10:-COMMITMENTS AND CONTINGENT LIABILITIES

a.Guarantees:

As of September 30, 2021, contingent liabilities exist regarding guarantees in the amounts of $5,167 and $2,782 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 held by contract manufacturers and purchase orders initiated by the contract manufacturers, which cannot be canceled without penalty.

The Company utilizes third parties to manufacture its products. In addition, the Company acquires raw materials or other goods and services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand and manufacturing needs. As of September 30, 2021, the Company had non-cancelable purchase obligations totaling approximately $1,178,921 out of which the Company recorded a provision for loss in the amount of $3,992.

As of September 30, 2021, the Company had contractual obligations for capital expenditures totaling approximately $126,210. 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 which is under construction.

c.Legal claims:

From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.

In September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar Technology AG (“SMA”).

The complaint, filed in the District Court Düsseldorf, Germany, alleged that the Company’s 12.5kW - 27.6kW inverters infringe two of the plaintiff’s patents. In its complaint, SMA asserted a value in dispute of EUR 5.5 million (approximately $6,364) 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”).

F - 19

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 10:-COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

The lawsuits, filed in the Guangzhou intellectual property court, alleged infringement of three patents and asked for an injunction of manufacture, use, sale and offer for sale, and damage awards. A first-instance judgment was issued on August 7, 2020 ordering the three defendants to collectively pay damages in the amount of approximately Chinese Yuan (“CNY”) 10.5 million (approximately $1,623), including court fees, with respect of one of the patents. The Company has filed an appeal with the Supreme People’s Court of China. The first instance court’s judgement is not effective or enforceable pending the appeal. In addition, in January 2021, Huawei filed a motion to increase its claimed monetary damages to CNY 50.5 million (approximately $7,808) and for a preliminary injunction with respect to the second lawsuit. In February 2021, a preliminary injunction was rendered by the Guangzhou intellectual property court with respect to such second lawsuit and applying to seven inverter models. In line with the court’s mandate, the Company took immediate action to make software changes to meet the court order and also appealed the decision. In addition, in February 22, 2021 a first-instance judgment was issued ordering the three defendants to collectively pay damages in the amount of CNY 50.5 million (approximately $7,808), including court fees, with respect to the second patent. The Company appealed this judgement with the Supreme People’s Court. The first instance court’s judgement is not effective or enforceable pending the appeal. In October 2021, a first-instance judgment was issued ordering the three defendants to collectively pay damages in the amount of approximately CNY 10.5 million (approximately $1,623), including court fees, with respect to the third lawsuit. The Company has filed an appeal with the Supreme People’s Court of China. The first instance court’s judgement is not effective or enforceable pending the appeal. The Company believes that it has meritorious defenses to the claims asserted by Huawei.

In December 2019, the Company received a lawsuit filed by a former consultant of the Company and its Israeli subsidiary in the amount of 25.5 million NIS (approximately $7,897) claiming damages caused relating to a terminated consulting agreement and stock options therein. The Company believes it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit.

As of September 30, 2021, accrued amounts for legal claims of $11,132, were recorded in accrued expenses and other current liabilities.

STOCK CAPITAL

9 Months Ended

Sep. 30, 2021

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.Stock incentive plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers and nonemployees of the Company and its subsidiaries.

The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan, commencing on January 1st of the year following the year in which the 2015 Plan became effective, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that the Company’s board of directors may determine that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than 5% of the shares of capital stock outstanding on the preceding December 31st.

In the three and nine months ended September 30, 2021, the Company granted under its 2015 Plan, performance-based restricted stock unit (“PRSU”) awards to certain employees which vest upon the achievement of certain performance conditions subject to the employees’ continued service relationship with the Company. The probability of vesting is assessed at each reporting period and compensation cost is adjusted based on this probability assessment. The Company recognizes such compensation expenses on an accelerated vesting method.

As of September 30, 2021, a total of 15,406,316 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”).

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000. As of September 30, 2021, an aggregate of 8,617,974 options are still available for future grant under the 2015 Plan.

F - 21

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 11:-STOCK CAPITAL (Cont.)

A summary of the activity in the stock options granted to employees and members of the board of directors for the nine months ended September 30, 2021 and related information are as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2020		691,732			31.86		5.07	$	198,709
Granted		19,489			311.35
Exercised		(188,425	)		32.45
Forfeited or expired		(10,432	)		44.24
Outstanding as of September 30, 2021		512,364			42.02		5.32	$	115.260

Vested and expected to vest as of September 30, 2021		477,119			37.28		5.54	$	109,397

Exercisable as of September 30, 2021		395,839			25.49		5.09	$	95,005

The aggregate intrinsic value in the tables above represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of each period.

The total intrinsic value of options exercised during the nine months ended September 30, 2021 was $51,308.

The weighted average grant date fair values of options granted to employees and executive directors during the nine months ended September 30, 2021 was $168.36.

A summary of the activity in the RSUs and PRSUs granted to employees and directors for the nine months ended September 30, 2021, is as follows:

	Number of RSUs			Weighted average grant date fair value
Unvested as of January 1, 2021		2,216,841		$	103.79
Granted (1)		322,909			283.61
Vested		(732,555	)		78.61
Forfeited		(92,198	)		121.09
Unvested as of September 30, 2021		1,714,997		$	146.53


(1)	The number of PRSUs granted to employees was 132,673 with a weighted average grant date fair value of 294.04.

F - 22

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 11:-STOCK CAPITAL (Cont.)

c.Employee Stock Purchase Plan (“ESPP”):

The Company adopted an ESPP effective upon the consummation of the IPO. As of September 30, 2021, a total of 3,175,094 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at its discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock up to an aggregate limit of $10 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of September 30, 2021, 635,193 shares of common stock had been purchased under the ESPP.

As of September 30, 2021, 2,539,901 shares of common stock were available for future issuance under the ESPP.

In accordance with ASC No. 718, the ESPP is compensatory and, as such, results in recognition of compensation cost.

d.Stock-based compensation expenses for employees and non-employees:

The Company recognized stock-based compensation expenses related to stock options, RSUs and PRSUs granted to employees and nonemployees and ESPP in the condensed consolidated statement of income for the three and nine months ended September 30, 2021 and 2020, as follows:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Cost of revenues	$	4,289	$	2,730	$	14,370	$	7,362
Research and development		11,949		6,904		30,552		18,129
Selling and marketing		5,737		4,066		16,952		10,703
General and administrative		4,210		2,559		11,516		6,799
Total stock-based compensation expenses	$	26,185	$	16,259	$	73,390	$	42,993

As of September 30, 2021, there were total unrecognized compensation expenses in the amount of $257,967 related to non-vested equity-based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from October 1, 2021 through May 31, 2026.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2021

Net income per share:

EARNINGS PER SHARE

NOTE 12:-EARNINGS PER SHARE

Basic net EPS is computed by dividing the net earnings by the weighted-average number of shares of common stock outstanding during the period. Diluted net EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PRSUs, shares to be purchased under the Company’s ESPP, and the Notes due 2025, all in accordance with ASC No. 260, “Earnings Per Share.”

The following table presents the computation of basic and diluted EPS:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Basic EPS:
Numerator:
Net income	$	53,048	$	43,751	$	128,216	$	122,667

Denominator:
Shares used in computing net earnings per share of common stock, basic		52,355,867		50,529,691		52,056,233		49,842,399

Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	53,048	$	43,751	$	128,216	$	122,667
Notes due 2025		525		137		1,575		137
Net income attributable to common stock, diluted	$	53,573	$	43,888	$	129,791	$	122,804

Denominator:
Shares used in computing net earnings per share of common stock, basic		52,355,867		50,529,691		52,056,233		49,842,399
Notes due 2025		2,276,818		197,984		2,276,818		65,995
Effect of stock-based awards		1,296,315		2,416,513		1,622,390		2,715,281
Shares used in computing net earnings per share of common stock, diluted		55,929,000		53,144,188		55,955,441		52,623,675

F - 24

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 12:-EARNINGS PER SHARE (Cont.)

No shares were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the three and nine months ended September 30, 2021 and 2020.

The vesting of PRSUs is contingent upon the achievement of certain performance conditions. The performance awards are not included in the diluted EPS calculation until the performance conditions have been met.

As of September 30, 2021, certain performance conditions associated with these PRSUs were met and consequently 14,773 PRSUs were considered as issuable for the calculation of the diluted EPS for the three and nine months ended September 30, 2021.

OTHER OPERATING EXPENSES (INCOME)

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

OTHER OPERATING EXPENSES (INCOME)

NOTE 13:-OTHER OPERATING EXPENSES (INCOME)

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021			2020
Kokam purchase escrow (1) (2)	$	-	$	-	$	(859	)	$	(4,900	)
Write-off of property, plant and equipment		-		-		2,209			-
Total other operating expenses (income)	$	-	$	-	$	1,350		$	(4,900	)

(1)	In the nine months ended September 30, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.

(2)	In the nine months ended September 30, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.

INCOME TAXES

9 Months Ended

Sep. 30, 2021

Income Taxes

INCOME TAXES

NOTE 14:-INCOME TAXES

The effective tax rate for the three months ended September 30, 2021 and 2020 were 12.6% and 5.2%, respectively and for the nine months ended September 30, 2021 and 2020 were 15.9% and 11.7%, respectively.

The increase in the effective tax rate in the current year is primarily due to presence of a full valuation allowance in various jurisdictions and different allocation of income among the Company’s US, Israel, and foreign subsidiaries.

The Company’s effective tax rate was lower than the U.S. federal statutory rate for the three and nine months ended September 30, 2021, due to earnings taxed at lower rates in foreign jurisdictions and tax benefits relating to stock-based compensation, which were partially offset by full valuation allowance in various jurisdictions and Global intangible low-taxed income (“GILTI”) tax.

As of September 30, 2021, and December 31, 2020, unrecognized tax benefits were $10,708 and $10,564, respectively. If recognized, such benefits would favorably affect the Company’s effective tax rate. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were $205 and $127 as of September 30, 2021 and December 31, 2020, respectively. It is reasonably possible that the Company’s gross unrecognized tax benefits will decrease by up to $8,937 in the next 12 months, primarily due to the lapse of the statute of limitations. These adjustments, if recognized, would positively impact the Company’s effective tax rate, and would be recognized as additional tax benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15:-SEGMENT INFORMATION

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 (“financing component”), 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 periods presented:

	Three months ended September 30, 2021					Nine months ended September 30, 2021
	Solar		All other			Solar		All other
Revenues	$	476,838	$	49,455		$	1,284,574	$	127,080
Cost of revenues		302,081		45,132			799,163		122,536
Gross profit		174,757		4,323			485,411		4,544
Research and development		34,657		8,853			102,151		22,376
Sales and marketing		21,127		2,290			60,758		7,340
General and administrative		14,054		2,863			39,094		9,783
Segments profit (loss)	$	104,919	$	(9,683	)	$	283,408	$	(34,955	)

F - 26

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 15:-SEGMENT INFORMATION (Cont.)

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

	Three months ended September 30, 2020					Nine months ended September 30, 2020
	Solar		All other			Solar		All other
Revenues	$	312,480	$	25,615		$	1,030,175	$	71,476
Cost of revenues		203,590		21,283			673,751		61,974
Gross profit		108,890		4,332			356,424		9,502
Research and development		26,466		7,421			79,923		17,481
Sales and marketing		15,160		2,328			48,803		6,650
General and administrative		10,593		1,210			28,467		9,228
Segments profit (loss)	$	56,671	$	(6,627	)	$	199,231	$	(23,857	)

The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Solar segment revenues	$	476,838	$	312,480	$	1,284,574	$	1,030,175
All other segment revenues		49,455		25,615		127,080		71,476
Revenues from financing component		111		-		296		-
Intersegment revenues		-		-		-		(487	)
Consolidated revenues	$	526,404	$	338,095	$	1,411,950	$	1,101,164

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Solar segment profit	$	104,919		$	56,671		$	283,408		$	199,231
All other segment loss		(9,683	)		(6,627	)		(34,955	)		(23,857	)
Segments operating profit		95,236			50,044			248,453			175,374
Amounts not allocated to segments:
Stock based compensation expenses		(26,185	)		(16,259	)		(73,390	)		(42,993	)
Amortization related to business combinations		(2,785	)		(2,833	)		(8,007	)		(8,169	)
Legal settlement		-			-			859			4,900
Other unallocated income (expenses), net		148			(558	)		(1,814	)		(871	)
Adjustments:
Intersegment profit		-			-			-			(107	)
Consolidated operating income	$	66,414		$	30,394		$	166,101		$	128,134

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

INVENTORIES, NET (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

	September 30, 2021		December 31, 2020
Raw materials	$	161,863	$	128,363
Work in process		21,795		25,461
Finished goods		121,055		177,872
	$	304,713	$	331,696

MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2021

Marketable Securities [Abstract]

Schedule of AFS Marketable Debt Securities

The following is a summary of available-for-sale marketable debt securities as of September 30, 2021:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	138,938	$	69	$	(143	)	$	138,864
Governmental bonds		6,600		1		(6	)		6,595
		145,538		70		(149	)		145,459

Available for-sale – matures after one year:
Corporate bonds		463,081		64		(1,979	)		461,166
Governmental bonds		12,211		-		(62	)		12,149
		475,292		64		(2,041	)		473,315

Total	$	620,830	$	134	$	(2,190	)	$	618,774

The following is a summary of available-for-sale marketable debt securities as of December 31, 2020:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	141,824	$	509	$	(57	)	$	142,276
Governmental bonds		1,400		11		-			1,411
		143,224		520		(57	)		143,687

Available for-sale – matures after one year:
Corporate bonds		142,701		65		(214	)		142,552
Governmental bonds		4,895		-		(13	)		4,882
		147,596		65		(227	)		147,434

Total	$	290,820	$	585	$	(284	)	$	291,121

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

The following table sets forth the Company’s assets that were measured at fair value as of September 30, 2021 and December 31, 2020 by level within the fair value hierarchy:

		Fair value measurements as of
	Fair Value	September 30,		December 31,
Description	Hierarchy	2021		2020
Measured at fair value on a recurring basis:

Assets:
Cash equivalents:
Money market mutual funds	Level 1	$	85,581	$	480,673

Derivative instruments asset:
Options and forward contracts designated as hedging instruments	Level 2	$	706	$	-
Options and forward contracts not designated as hedging instruments	Level 2	$	3,796	$	3,786

Short-term marketable securities:
Corporate bonds	Level 2	$	138,864	$	142,276
Governmental bonds	Level 2	$	6,595	$	1,411

Long-term marketable securities:
Corporate bonds	Level 2	$	461,166	$	142,552
Governmental bonds	Level 2	$	12,149	$	4,882

Liabilities
Derivative instruments liability:
Options and forward contracts not designated as hedging instruments	Level 2	$	-	$	(5,819	)

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

OTHER COMPRENHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2021

Other Comprenhensive Income

Schedule of Reclassifications of Other Comprehensive Income Loss

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)												Affected Line Item in the Statements of Income
	Three months ended						Nine months ended
	September 30,						September 30,
	2021			2020			2021			2020
Unrealized gains on cash flow hedges, net	$	97		$	90		$	152		$	189		Cost of revenues
		476			353			751			623		Research and development
		97			75			153			136		Sales and marketing
		124			87			196			153		General and administrative
		794			605			1,252			1,101		Total, before income taxes
		(96	)		(74	)		(152	)		(135	)	Income tax expense
	$	698		$	531		$	1,100		$	966		Total, net of income taxes
Unrealized gains on available-for-sale marketable securitie	$	12		$	-		$	16		$	-		Financial income (expenses), net
		-			-			(4	)		-		Income tax expense
	$	12		$	-		$	12		$	-		Total, net of income taxes
	$	710		$	531		$	1,112		$	966		Total, net of income taxes

CONVERTIBLE SENIOR NOTES (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

The Convertible Senior Notes consisted of the following as of September 30, 2021 and December 31, 2020:

	As of			As of
	September 30, 2021			December 31, 2020
Liability:
Principal	$	632,500		$	632,500
Unamortized debt discount		-			(46,353	)
Unamortized issuance costs		(11,692	)		(12,797	)
Net carrying amount	$	620,808		$	573,350

Equity component:
Amount allocated to conversion option	$	-		$	48,834
Deferred taxes liability, net		-			(11,368	)
Allocated issuance costs		-			(1,130	)
Equity component, net	$	-		$	36,336

Schedule of Interest Expense Recognized

The following table presents the total amount of interest expenses recognized related to the Notes for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Amortization of debt discount	$	-	$	131	$	-	$	131
Amortization of debt issuance costs		726		37		2,176		37
Total interest expenses	$	726	$	168	$	2,176	$	168

WARRANTY OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2021

Product Warranties Disclosures [Abstract]

Schedule of Warranty Obligations

Changes in the Company’s product warranty obligations for the nine months ended September 30, 2021 and 2020, were as follows:

	As of September 30,
	2021			2020
Balance, at the beginning of the period	$	204,994		$	172,563
Additions and adjustments to cost of revenues		109,382			74,465
Usage and current warranty expenses		(67,313	)		(51,334	)
Balance, at the end of the period		247,063			195,694
Less current portion		(67,096	)		(65,080	)
Long term portion	$	179,967		$	130,614

STOCK CAPITAL (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of RSU Activity

A summary of the activity in the RSUs and PRSUs granted to employees and directors for the nine months ended September 30, 2021, is as follows:

	Number of RSUs			Weighted average grant date fair value
Unvested as of January 1, 2021		2,216,841		$	103.79
Granted (1)		322,909			283.61
Vested		(732,555	)		78.61
Forfeited		(92,198	)		121.09
Unvested as of September 30, 2021		1,714,997		$	146.53


(1)	The number of PRSUs granted to employees was 132,673 with a weighted average grant date fair value of 294.04.

Schedule of Recognized Stock-based Compensation Expenses

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Cost of revenues	$	4,289	$	2,730	$	14,370	$	7,362
Research and development		11,949		6,904		30,552		18,129
Selling and marketing		5,737		4,066		16,952		10,703
General and administrative		4,210		2,559		11,516		6,799
Total stock-based compensation expenses	$	26,185	$	16,259	$	73,390	$	42,993

Option [Member] | Employees and Members of Board of Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of the Activity in the Share Options Granted to Employees and Members of the Board of Directors

A summary of the activity in the stock options granted to employees and members of the board of directors for the nine months ended September 30, 2021 and related information are as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2020		691,732			31.86		5.07	$	198,709
Granted		19,489			311.35
Exercised		(188,425	)		32.45
Forfeited or expired		(10,432	)		44.24
Outstanding as of September 30, 2021		512,364			42.02		5.32	$	115.260

Vested and expected to vest as of September 30, 2021		477,119			37.28		5.54	$	109,397

Exercisable as of September 30, 2021		395,839			25.49		5.09	$	95,005

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2021

Net income per share:

Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share

The following table presents the computation of basic and diluted EPS:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Basic EPS:
Numerator:
Net income	$	53,048	$	43,751	$	128,216	$	122,667

Denominator:
Shares used in computing net earnings per share of common stock, basic		52,355,867		50,529,691		52,056,233		49,842,399

Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	53,048	$	43,751	$	128,216	$	122,667
Notes due 2025		525		137		1,575		137
Net income attributable to common stock, diluted	$	53,573	$	43,888	$	129,791	$	122,804

Denominator:
Shares used in computing net earnings per share of common stock, basic		52,355,867		50,529,691		52,056,233		49,842,399
Notes due 2025		2,276,818		197,984		2,276,818		65,995
Effect of stock-based awards		1,296,315		2,416,513		1,622,390		2,715,281
Shares used in computing net earnings per share of common stock, diluted		55,929,000		53,144,188		55,955,441		52,623,675

OTHER OPERATING EXPENSES (INCOME) (Tables)

9 Months Ended

Sep. 30, 2021

Options [Member]

Schedule of Other Operating Expenses

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021			2020
Kokam purchase escrow (1) (2)	$	-	$	-	$	(859	)	$	(4,900	)
Write-off of property, plant and equipment		-		-		2,209			-
Total other operating expenses (income)	$	-	$	-	$	1,350		$	(4,900	)

(1)	In the nine months ended September 30, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.

(2)	In the nine months ended September 30, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Reportable Segments and Operating Income

The following table presents information on reportable segments profit (loss) for the periods presented:

	Three months ended September 30, 2021					Nine months ended September 30, 2021
	Solar		All other			Solar		All other
Revenues	$	476,838	$	49,455		$	1,284,574	$	127,080
Cost of revenues		302,081		45,132			799,163		122,536
Gross profit		174,757		4,323			485,411		4,544
Research and development		34,657		8,853			102,151		22,376
Sales and marketing		21,127		2,290			60,758		7,340
General and administrative		14,054		2,863			39,094		9,783
Segments profit (loss)	$	104,919	$	(9,683	)	$	283,408	$	(34,955	)

F - 26

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share and per share data)

NOTE 15:-SEGMENT INFORMATION (Cont.)

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

	Three months ended September 30, 2020					Nine months ended September 30, 2020
	Solar		All other			Solar		All other
Revenues	$	312,480	$	25,615		$	1,030,175	$	71,476
Cost of revenues		203,590		21,283			673,751		61,974
Gross profit		108,890		4,332			356,424		9,502
Research and development		26,466		7,421			79,923		17,481
Sales and marketing		15,160		2,328			48,803		6,650
General and administrative		10,593		1,210			28,467		9,228
Segments profit (loss)	$	56,671	$	(6,627	)	$	199,231	$	(23,857	)

Schedule of Reportable Segments Reconciliation to Consolidated Revenues

The following table presents information on reportable segments reconciliation to consolidated revenues for the periods presented:

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Solar segment revenues	$	476,838	$	312,480	$	1,284,574	$	1,030,175
All other segment revenues		49,455		25,615		127,080		71,476
Revenues from financing component		111		-		296		-
Intersegment revenues		-		-		-		(487	)
Consolidated revenues	$	526,404	$	338,095	$	1,411,950	$	1,101,164

The following table presents information on reportable segments reconciliation to consolidated operating income for the periods presented:

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Solar segment profit	$	104,919		$	56,671		$	283,408		$	199,231
All other segment loss		(9,683	)		(6,627	)		(34,955	)		(23,857	)
Segments operating profit		95,236			50,044			248,453			175,374
Amounts not allocated to segments:
Stock based compensation expenses		(26,185	)		(16,259	)		(73,390	)		(42,993	)
Amortization related to business combinations		(2,785	)		(2,833	)		(8,007	)		(8,169	)
Legal settlement		-			-			859			4,900
Other unallocated income (expenses), net		148			(558	)		(1,814	)		(871	)
Adjustments:
Intersegment profit		-			-			-			(107	)
Consolidated operating income	$	66,414		$	30,394		$	166,101		$	128,134

GENERAL (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
GENERAL (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounting Standards Update 2020-06 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Increase of retained earnings		$ 2,884
Decrease in additional paid-in capital		36,336
Increase in convertible senior notes		45,282
Decrease in deferred tax liabilities		$ 11,830
Accounts Payable [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Concentration risk (as a percent)	23.20%	48.50%

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 161,863	$ 128,363
Work in process	21,795	25,461
Finished goods	121,055	177,872
Inventories, net	$ 304,713	$ 331,696

MARKETABLE SECURITIES (Schedule of AFS Marketable Debt Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
AFS - matures within one year, Amortized cost	$ 145,538	$ 143,224
AFS - matures within one year, Gross unrealized gains	70	520
AFS - matures within one yearr, Gross unrealized losses	(149)	(57)
AFS - matures within one year, Fair value	145,459	143,687
AFS - matures after one year, Amortized cost	475,292	147,596
AFS - matures after one year, Gross unrealized gains	64	65
AFS - matures after one year, Gross unrealized losses	(2,041)	(227)
AFS - matures after one year, Fair value	473,315	147,434
Amortized cost	620,830	290,820
Gross unrealized gains	134	585
Gross unrealized losses	(2,190)	(284)
Fair value	618,774	291,121
Corporate bonds [Member]
AFS - matures within one year, Amortized cost	138,938	141,824
AFS - matures within one year, Gross unrealized gains	69	509
AFS - matures within one yearr, Gross unrealized losses	(143)	(57)
AFS - matures within one year, Fair value	138,864	142,276
AFS - matures after one year, Amortized cost	463,081	142,701
AFS - matures after one year, Gross unrealized gains	64	65
AFS - matures after one year, Gross unrealized losses	(1,979)	(214)
AFS - matures after one year, Fair value	461,166	142,552
Governmental bonds [Member]
AFS - matures within one year, Amortized cost	6,600	1,400
AFS - matures within one year, Gross unrealized gains	1	11
AFS - matures within one yearr, Gross unrealized losses	(6)
AFS - matures within one year, Fair value	6,595	1,411
AFS - matures after one year, Amortized cost	12,211	4,895
AFS - matures after one year, Gross unrealized gains
AFS - matures after one year, Gross unrealized losses	(62)	(13)
AFS - matures after one year, Fair value	$ 12,149	$ 4,882

INVESTMENT IN PRIVATELY-HELD COMPANY (Details) - AutoGrid Systems [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Feb. 02, 2021	Jan. 31, 2021
Schedule of Equity Method Investments [Line Items]
Equity method investments of preferred stock		$ 5,000	$ 11,643
Carrying value of non-marketable equity securities	$ 16,643

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Level 1 [Member] \| Money Market Mutual Funds [Member]
Fair value of assets	$ 85,581	$ 480,673
Level 2 [Member] \| Options and forward contracts not designated as hedging instruments [Member] \| Derivative Financial Instruments Liabilities [Member]
Fair value of liabilities		(5,819)
Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Derivatives designated as cash flow hedging instruments [Member]
Fair value of assets	706
Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Options and forward contracts not designated as hedging instruments [Member]
Fair value of assets	3,796	3,786
Level 2 [Member] \| Short-term corporate bonds [Member]
Fair value of assets	138,864	142,276
Level 2 [Member] \| Short-term governmental bonds [Member]
Fair value of assets	6,595	1,411
Level 2 [Member] \| Long-term corporate bonds [Member]
Fair value of assets	461,166	142,552
Level 2 [Member] \| Long-term governmental bonds [Member]
Fair value of assets	$ 12,149	$ 4,882

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands, € in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 AUD ($)	Sep. 30, 2021 EUR (€)	Dec. 31, 2020 USD ($)
Derivative [Line Items]
Fair value of derivative assets	$ 4,502		$ 4,502				$ 3,786
Gain and loss of financial income (expense), net	3,350	$ 1,450	7,706	$ 959
Fair value of derivative liabilities							$ 5,819
Unrealized gain (loss) net of tax effect	1,006	$ 85	1,719	$ 966
Foreign exchange forward contracts [Member] \| Australia, Dollars [Member]
Derivative [Line Items]
Forward/option contracts					$ 6
Foreign exchange forward contracts [Member] \| Euro [Member]
Derivative [Line Items]
Forward/option contracts \| €						€ 56
Foreign exchange forward contracts [Member] \| USD [Member]
Derivative [Line Items]
Forward/option contracts	$ 36,481		$ 36,481
Put and Call Options [Member] \| Australia, Dollars [Member]
Derivative [Line Items]
Forward/option contracts					$ 9
Put and Call Options [Member] \| Euro [Member]
Derivative [Line Items]
Forward/option contracts \| €						€ 24

OTHER COMPRENHENSIVE INCOME (LOSS) (Schedule of Reclassifications of Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of Revenues	$ 353,843	$ 230,032	$ 943,123	$ 750,130
Research and development	55,666	40,817	155,307	115,610
Sales and marketing	29,383	21,924	85,752	67,113
General and administrative	21,098	14,928	60,317	45,077
Total, before income taxes	106,147	77,669	302,726	222,900
Income tax expense	7,615	2,408	24,294	16,192
Net income	53,048	43,751	128,216	122,667
Unrealized gains on cash flow hedges, net [Member] \| Amount Reclassified from Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of Revenues	97	90	152	189
Research and development	476	353	751	623
Sales and marketing	97	75	153	136
General and administrative	124	87	196	153
Total, before income taxes	794	605	1,252	1,101
Income tax expense	(96)	(74)	(152)	(135)
Net income	698	531	1,100	966
Financial income (expenses), net	12		16
Income tax expense			(4)
Total, net of income taxes	12		12
Total net of income taxes	$ 710	$ 531	$ 1,112	$ 966

CONVERTIBLE SENIOR NOTES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 25, 2020	Sep. 30, 2021	Dec. 31, 2020
Accounting Standards Update 2020-06 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Debt Instrument [Line Items]
Effective interest			0.47%
Increase of retained earnings			$ 2,884
Decrease in additional paid-in capital			36,336
Increase in convertible senior notes			45,282
Decrease in deferred tax liabilities			$ 11,830
Convertible Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Debt conversion description		On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.
Principal amount sold	$ 632,500
Effective 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
Amortized period		4 years
Amount by which the if-converted value of the Notes exceeded the principal amount		$ 158,606
Senior Notes [Member] \| Level 2 [Member]
Debt Instrument [Line Items]
Estimated fair value of notes		$ 791,106

CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Liability:
Net carrying amount	$ 620,808	$ 573,350
Convertible Senior Notes [Member]
Liability:
Principal	632,500	632,500
Unamortized debt discount		(46,353)
Unamortized issuance costs	(11,692)	(12,797)
Net carrying amount	620,808	573,350
Equity component:
Amount allocated to conversion option		48,834
Deferred taxes liability, net		(11,368)
Allocated issuance costs		(1,130)
Equity component, net		$ 36,336

CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense Recognized) (Details) - Convertible Senior Notes due 2025 [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Amortization of debt discount		$ 131		$ 131
Amortization of debt issuance costs	726	37	2,176	37
Total interest expenses	$ 726	$ 168	$ 2,176	$ 168

WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	9 Months Ended
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Changes in the Company's product warranty liability
Balance, at the beginning of the period	$ 204,994	$ 172,563
Additions and adjustments to cost of revenues	109,382	74,465
Usage and current warranty expenses	(67,313)	(51,334)
Balance, at the end of the period	247,063	195,694
Less current portion	(67,096)	(65,080)	$ (62,614)
Long term portion	$ 179,967	$ 130,614	$ 142,380

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands, € in Millions, ₪ in Millions, ¥ in Millions	1 Months Ended				9 Months Ended			12 Months Ended
	Oct. 31, 2021 USD ($) Defendants	Oct. 31, 2021 CNY (¥) Defendants	Feb. 22, 2021 USD ($) Defendants	Feb. 22, 2021 CNY (¥) Defendants	Sep. 30, 2021 USD ($)	Sep. 30, 2021 EUR (€)	Sep. 30, 2021 CNY (¥)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 ILS (₪)
Non-cancelable purchase obligations					$ 1,178,921
Provision for loss					3,992
Contractual obligations for capital expenditures					126,210
Lawsuit claims					1,623
Damages Paid					7,808
Accured amount of legal claims					11,132
Former Consultant and Israeli Subsidiary [Member]
Lawsuit claims								$ 7,897
RMB [Member]
Lawsuit claims \| ¥							¥ 10.5
Damages Paid \| ¥							¥ 50.5
Israel, New Shekels \| Former Consultant and Israeli Subsidiary [Member]
Lawsuit claims \| ₪									₪ 25.5
Patents [Member]
Value in dispute					6,364
Patents [Member] \| Euro [Member]
Value in dispute \| €						€ 5.5
Second Patent [Member]
Damages Paid	$ 1,623		$ 7,808
Number of defendants \| Defendants	3	3	3	3
Second Patent [Member] \| RMB [Member]
Damages Paid \| ¥		¥ 10.5		¥ 50.5
Office Rent Lease Agreements [Member]
Guarantees amount					5,167
Other Transactions [Member]
Guarantees amount					$ 2,782

STOCK CAPITAL (Stock option plans) (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan	10,000,000
Unrecognized compensation expense \| $	$ 257,967
Option [Member] \| Employees and Members of Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised \| $	$ 51,308
Weighted average grant date fair values options granted to employees and executive directors \| $ / shares	$ 168.36
Granted employees shares	19,489
Option [Member] \| 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	379,358
Option [Member] \| 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan	15,406,316
Number of options available for future grant under the plan	8,617,974
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	3,175,094
Number of options available for future grant under the plan	2,539,901
Number of Common stock purchased	635,193
Period of plan increase automatically number of shares	487,643
Percentage of common shares increase automatically each year	1.00%
Maximum percentage of salary	10.00%
Aggregate limit per participant \| $	$ 10
Purchase price of common stock, percent	85.00%
PRSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair values options granted to employees and executive directors \| $ / shares	$ 294.04
Granted employees shares	132,673

STOCK CAPITAL (Summary of the activity in the share options) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Number of options
Outstanding at the beginning of the period \| shares	691,732
Granted \| shares	19,489
Exercised \| shares	(188,425)
Forfeited or expired \| shares	(10,432)
Outstanding at the end of the period \| shares	512,364	691,732
Weighted average exercise price
Outstanding at the beginning of the period \| $ / shares	$ 31.86
Granted \| $ / shares	311.35
Exercised \| $ / shares	32.45
Forfeited or expired \| $ / shares	44.24
Outstanding at the end of the period \| $ / shares	$ 42.02	$ 31.86
Weighted average remaining contractual term in years
Outstanding	5 years 3 months 25 days	5 years 25 days
Aggregate intrinsic Value
Outstanding \| $	$ 115,260	$ 198,709
Vested and expected to vest at the end of the period
Number of options \| shares	477,119
Weighted average exercise price \| $ / shares	$ 37.28
Weighted average remaining contractual term in years	5 years 6 months 14 days
Aggregate intrinsic Value \| $	$ 109,397
Exercisable at the end of the period
Number of options \| shares	395,839
Weighted average exercise price \| $ / shares	$ 25.49
Weighted average remaining contractual term in years	5 years 1 month 2 days
Aggregate intrinsic Value \| $	$ 95,005

STOCK CAPITAL (Schedule of RSU Activity) (Details)

9 Months Ended

Sep. 30, 2021

$ / shares

Stock Capital Schedule Of Rsu Activity

Unvested at beginning of period | shares

2,216,841

Granted | shares

322,909

^[1]

Vested | shares

(732,555)

Forfeited | shares

(92,198)

Unvested at end of period | shares

1,714,997

Weighted average grant date fair value, beginning of period | $ / shares

$ 103.79

Weighted average grant date fair value, granted | $ / shares

283.61

^[1]

Weighted average grant date fair value, vested | $ / shares

78.61

Weighted average grant date fair value, forfeited | $ / shares

121.09

Weighted average grant date fair value, end of period | $ / shares

$ 146.53

[1]	The number of PRSUs granted to employees was 132,673 with a weighted average grant date fair value of 294.04.

STOCK CAPITAL (Schedule of stock-based compensation expense for employees and nonemployee) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 26,185	$ 16,259	$ 73,390	$ 42,993
Cost of revenues [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	4,289	2,730	14,370	7,362
Research and development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	11,949	6,904	30,552	18,129
Selling and marketing [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	5,737	4,066	16,952	10,703
General and administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 4,210	$ 2,559	$ 11,516	$ 6,799

EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
EARNINGS PER SHARE (Narrative) (Details) - shares	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net income per share:
Anti-dilutive securities
Potentially dilutive effect performance-based restricted stock units	14,773		14,773

EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income	$ 53,048	$ 43,751	$ 128,216	$ 122,667
Denominator:
Shares used in computing net earnings per share of common stock, basic	52,355,867	50,529,691	52,056,233	49,842,399
Numerator:
Net income attributable to common stock, basic	$ 53,048	$ 43,751	$ 128,216	$ 122,667
Notes due 2025	525	137	1,575	137
Net income attributable to common stock, diluted	$ 53,573	$ 43,888	$ 129,791	$ 122,804
Denominator:
Shares used in computing net earnings per share of common stock, basic	52,355,867	50,529,691	52,056,233	49,842,399
Notes due 2025	2,276,818	197,984	2,276,818	65,995
Effect of stock-based awards	1,296,315	2,416,513	1,622,390	2,715,281
Shares used in computing net earnings per share of common stock, diluted	55,929,000	53,144,188	55,955,441	52,623,675

OTHER OPERATING EXPENSES (INCOME) (Schedule of Other Opearting Expenses) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

Options [Member]

Kokam purchase escrow

$ (859)

^[1]

$ (4,900)

^[2]

Write-off of property, plant and equipment

2,209

Total other operating expenses (income)

$ 1,350

$ (4,900)

[1]	In the nine months ended September 30, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.
[2]	In the nine months ended September 30, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Taxes Schedule Of Taxes On Income Details
Effective tax rate	12.60%	5.20%	15.90%	11.70%
Unrecognized tax benefits	$ 10,708		$ 10,708		$ 10,564
Amount of penalties and interest	205		205		$ 127
Expected decrease in gross unrecognized tax benefits	$ 8,937		$ 8,937

SEGMENT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 526,404	$ 338,095	$ 1,411,950	$ 1,101,164
Cost of revenues	353,843	230,032	943,123	750,130
Gross profit	172,561	108,063	468,827	351,034
Research and development	55,666	40,817	155,307	115,610
Sales and marketing	29,383	21,924	85,752	67,113
General and administrative	21,098	14,928	60,317	45,077
Net income	53,048	43,751	128,216	122,667
Solar segment profit	104,919	56,671	283,408	199,231
All other segment loss	(9,683)	(6,627)	(34,955)	(23,857)
Segments operating profit	95,236	50,044	248,453	175,374
Amounts not allocated to segments:
Stock based compensation expenses	(26,185)	(16,259)	(73,390)	(42,993)
Amortization related to business combinations	(2,785)	(2,833)	(8,007)	(8,169)
Legal settlement			859	4,900
Other unallocated income (expenses), net	148	(558)	(1,814)	(871)
Intersegment profit				(107)
Consolidated operating income	66,414	30,394	166,101	128,134
Solar [Member]
Segment Reporting Information [Line Items]
Revenues	476,838	312,480	1,284,574	1,030,175
Cost of revenues	302,081	203,590	799,163	673,751
Gross profit	174,757	108,890	485,411	356,424
Research and development	34,657	26,466	102,151	79,923
Sales and marketing	21,127	15,160	60,758	48,803
General and administrative	14,054	10,593	39,094	28,467
Net income	104,919	56,671	283,408	199,231
All Other [Member]
Segment Reporting Information [Line Items]
Revenues	49,455	25,615	127,080	71,476
Cost of revenues	45,132	21,283	122,536	61,974
Gross profit	4,323	4,332	4,544	9,502
Research and development	8,853	7,421	22,376	17,481
Sales and marketing	2,290	2,328	7,340	6,650
General and administrative	2,863	1,210	9,783	9,228
Net income	$ (9,683)	$ (6,627)	$ (34,955)	$ (23,857)

SEGMENT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 526,404	$ 338,095	$ 1,411,950	$ 1,101,164
Solar Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	476,838	312,480	1,284,574	1,030,175
All Other Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	49,455	25,615	127,080	71,476
Revenues from financing component [Member]
Segment Reporting Information [Line Items]
Revenues	111		296
Intersegment revenues [Member]
Segment Reporting Information [Line Items]
Revenues				$ (487)

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details