0001178913-23-000707 | 10-K | XBRL Viewer | Solaredge Technologies INC

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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Feb. 09, 2023	Jun. 30, 2021
Cover [Abstract]
Entity Registrant Name	SOLAREDGE TECHNOLOGIES, INC.
Entity Central Index Key	0001419612
Document Type	10-K
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Entity File Number	001-36894
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5338862
Entity Address, Address Line One	1 HaMada Street
Entity Address, City or Town	Herziliya Pituach
Entity Address, Country	IL
Entity Address, Postal Zip Code	4673335
City Area Code	972
Local Phone Number	(9) 957-6620
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	SEDG
Name of Exchange on which Security is Registered	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Auditor Attestation Flag	true
Entity Public Float			$ 15.1
Entity Common Stock, Shares Outstanding		56,146,608
Auditor Name	Kost Forer Gabbay & Kasierer
Auditor Location	Tel-Aviv, Israel
Auditor Firm ID	1281

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 783,112	$ 530,089
Marketable securities	241,117	167,728
Trade receivables, net of allowances of $3,202 and $2,626, respectively	905,146	456,339
Inventories, net	729,201	380,143
Prepaid expenses and other current assets	241,082	176,992
Total current assets	2,899,658	1,711,291
LONG-TERM ASSETS:
Marketable securities	645,491	482,228
Deferred tax assets, net	44,153	27,572
Property, plant and equipment, net	543,969	410,379
Operating lease right-of-use assets, net	62,754	47,137
Intangible assets, net	19,929	58,861
Goodwill	31,189	129,629
Other long-term assets	18,806	33,856
Total long-term assets	1,366,291	1,189,662
Total assets	4,265,949	2,900,953
CURRENT LIABILITIES:
Trade payables, net	459,831	252,068
Employees and payroll accruals	85,158	74,465
Warranty obligations	103,975	71,480
Deferred revenues and customers advances	26,641	17,789
Accrued expenses and other current liabilities	214,112	109,379
Total current liabilities	889,717	525,181
LONG-TERM LIABILITIES:
Convertible senior notes, net	624,451	621,535
Warranty obligations	281,082	193,680
Deferred revenues	186,936	151,556
Finance lease liabilities	45,385	40,508
Operating lease liabilities	46,256	38,912
Other long-term liabilities	15,756	19,542
Total long-term liabilities	1,199,866	1,065,733
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of December 31, 2022 and December 31, 2021; issued and outstanding: 56,133,404 and 52,815,395 shares as of December 31, 2022 and December 31, 2021, respectively	6	5
Additional paid-in capital	1,505,632	687,295
Accumulated other comprehensive loss	(73,109)	(27,319)
Retained earnings	743,837	650,058
Total stockholders’ equity	2,176,366	1,310,039
Total liabilities and stockholders' equity	$ 4,265,949	$ 2,900,953

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowances of trade receivable	$ 3,202	$ 2,626
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	125,000,000	125,000,000
Common stock, issued shares	56,133,404	52,815,395
Common stock, outstanding shares	56,133,404	52,815,395

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenues	$ 3,110,279	$ 1,963,865	$ 1,459,271
Cost of revenues	2,265,631	1,334,547	997,912
Gross profit	844,648	629,318	461,359
Operating expenses:
Research and development	289,814	219,633	163,123
Sales and marketing	159,680	119,000	95,985
General and administrative	112,496	82,196	63,119
Goodwill impairment and other operating expenses (income), net	116,538	1,350	(3,429)
Total operating expenses	678,528	422,179	318,798
Operating income	166,120	207,139	142,561
Financial income (expense), net	3,316	(19,915)	21,105
Other income	7,719	0	0
Income before income taxes	177,155	187,224	163,666
Income taxes	83,376	18,054	23,344
Net income	$ 93,779	$ 169,170	$ 140,322
Net basic earnings per share of common stock	$ 1.7	$ 3.24	$ 2.79
Net diluted earnings per share of common stock	$ 1.65	$ 3.06	$ 2.66
Weighted average number of shares used in computing net basic earnings per share of common stock	55,087,770	52,202,182	50,217,330
Weighted average number of shares used in computing net diluted earnings per share of common stock	58,100,649	55,971,030	52,795,476

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Consolidated Statements Of Comprehensive Income Loss [Abstract]
Net income	$ 93,779	$ 169,170	$ 140,322
Other comprehensive income (loss), net of tax:
Net change related to available-for-sale securities	(20,740)	(4,949)	(24)
Net change related to cash flow hedges	(2,635)	874	0
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature	(20,540)	(17,420)	0
Foreign currency translation adjustments, net	(1,875)	(9,681)	5,690
Total other comprehensive income (loss)	(45,790)	(31,176)	5,666
Comprehensive income	$ 47,989	$ 137,994	$ 145,988

- 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

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

Common Stock [Member]

Additional paid in capital [Member]

Accumulated Other comprehensive income (loss) [Member]

Retained earnings [Member]

Total

Balance at Dec. 31, 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 stock-based awards

$ 0

^[1]

16,671

Issuance of Common Stock upon exercise of stock-based awards (in shares)

2,579,004

Issuance of Common stock under employee stock purchase plan

$ 0

^[1]

7,783

Issuance of Common stock under employee stock purchase plan (in shares)

83,870

Stock based compensation

$ 0

67,309

Equity component of convertible senior notes, net

36,336

Other comprehensive gain adjustments

5,666

Net income

140,322

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

$ 0

(36,336)

2,884

(33,452)

Issuance of Common Stock upon exercise of stock-based awards

$ 0

^[1]

6,486

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards (in shares)

1,204,861

Issuance of Common stock under employee stock purchase plan

$ 0

^[1]

10,661

Issuance of Common stock under employee stock purchase plan (in shares)

49,598

Stock based compensation

$ 0

102,593

Other comprehensive gain adjustments

(31,176)

Net income

169,170

Balance at Dec. 31, 2021

$ 5

687,295

(27,319)

650,058

1,310,039

Balance (in shares) at Dec. 31, 2021

52,815,395

Issuance of Common Stock upon exercise of stock-based awards

$ 0

^[1]

4,030

Issuance of Common Stock upon exercise of employee and non-employees stock-based awards (in shares)

940,880

Issuance of Common stock under employee stock purchase plan

$ 0

^[1]

17,863

Issuance of Common stock under employee stock purchase plan (in shares)

77,129

Stock based compensation

$ 0

145,919

Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs

$ 1

650,525

650,526

Issuance of common stock in a secondary public offering, net of underwriters' discounts and commissions of $27,140 and $834 of offering costs (in shares)

2,300,000

Other comprehensive gain adjustments

$ 0

(45,790)

Net income

93,779

Balance at Dec. 31, 2022

$ 6

$ 1,505,632

$ (73,109)

$ 743,837

$ 2,176,366

Balance (in shares) at Dec. 31, 2022

56,133,404

[1]	Represents an amount less than $1.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Statement of Stockholders' Equity [Abstract]
Underwriters discounts and commissions	$ 27,140
Offering costs	$ 834

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 93,779	$ 169,170	$ 140,322
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	40,580	29,359	22,355
Amortization of intangible assets	9,096	10,176	9,479
Amortization of debt discount and debt issuance costs	2,916	2,903	3,185
Amortization of premium and accretion of discount on available-for-sale marketable securities, net	9,310	9,462	1,168
Impairment of goodwill and intangible assets	118,492	0	0
Stock-based compensation expenses	145,539	102,593	67,309
Gain from sale of privately held company	(7,719)	0	0
Deferred income taxes, net	(11,055)	(12,045)	(2,738)
Exchange rate fluctuations and other items, net	10,052	20,697	3,860
Changes in assets and liabilities:
Inventories, net	(341,085)	(43,051)	(149,661)
Prepaid expenses and other assets	(64,991)	(39,444)	(3,276)
Trade receivables, net	(457,610)	(247,723)	86,538
Trade payables, net	194,524	91,709	3,333
Employees and payroll accruals	26,238	26,519	18,315
Warranty obligations	120,169	60,524	32,274
Deferred revenues and customers advances	44,376	29,936	(21,438)
Accrued expenses and other liabilities, net	98,673	3,344	11,630
Net cash provided by operating activities	31,284	214,129	222,655
Cash flows from investing activities:
Proceed from sales and maturities of available-for-sale marketable securities	231,210	202,188	141,839
Purchase of property, plant and equipment	(169,341)	(149,251)	(126,790)
Investment in available-for-sale marketable securities	(507,171)	(579,377)	(223,705)
Investment in a privately-held company	0	(16,643)	0
Proceeds from sale of a privately-held company	24,362	0	0
Withdrawal from (investment in) bank deposits, net	0	60,096	(54,752)
Withdrawal from (investment in) restricted bank Deposits, net	(242)	798	25,267
Other investing activities	4,138	(2,022)	1,504
Net cash used in investing activities	(417,044)	(484,211)	(236,637)
Cash flows from financing activities:
Proceeds from secondary public offering, net of issuance costs	650,526	0	0
Repayment of bank loans	(138)	(16,073)	(15,595)
Proceeds from exercise of stock-based award	4,030	6,486	16,671
Tax withholding in connection with stock-based awards, net	3,023	(4,283)	4,829
Proceeds from issuance of convertible senior notes, net	0	0	617,869
Proceeds from bank loans	0	0	16,944
Other financing activities	(2,834)	(1,308)	(234)
Net cash provided by (used in) financing activities	654,607	(15,178)	640,484
Increase (decrease) in cash and cash equivalents	268,847	(285,260)	626,502
Cash and cash equivalents at the beginning of the period	530,089	827,146	223,901
Effect of exchange rate differences on cash and cash equivalents	(15,824)	(11,797)	(23,257)
Cash and cash equivalents at the end of the period	783,112	530,089	827,146
Supplemental disclosure of non-cash activities:
Right-of-use asset recognized with corresponding lease liability	46,004	20,526	29,623
Purchase of property, plant and equipment	16,016	10,781	5,612
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 74,689	$ 45,977	$ 38,990

GENERAL

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1: GENERAL

SolarEdge Technologies, Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of (i) power optimizers designed to maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, (ii) inverters which invert direct current (DC) from the PV module to alternating current (AC) including the Company's future ready energy hub inverter which supports among other things, connection to a DC - coupled battery for backup capabilities, (iii) a remote cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters to enable customers and system owners, to monitor and manage the solar PV system (iv) a residential storage and backup solution that is used to increase energy independence and maximize self-consumption for homeowners including a battery ,and (v) additional smart energy management solutions.

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

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

In June 2022, the Company decided to discontinue its stand-alone uninterrupted power supply solutions or UPS (“Critical Power”). The Company determined that the discontinuance of the Critical Power business does not represent a strategic shift that will have a major effect on the Company's operations and financial results and therefore it did not meet the criteria for discontinued operations classification.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”).

a.Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances including profit from intercompany sales not yet realized outside the Company have been eliminated upon consolidation.

b.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 and the conflict in Ukraine, government and other third-party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time in response to this evolving situation. Such changes could result in future impairments of goodwill, intangibles, long-lived assets, inventories, incremental credit losses on receivables and available-for-sale marketable debt securities, or an increase in the Company’s insurance liabilities as of the time of a relevant measurement event.

c.Financial statements in U.S. dollars:

A major part of the Company’s operations is carried out in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar. Financing activities, including cash investments are primarily made in U.S. dollars.

Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are translated into U.S. dollars in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. All transaction gains and losses of the re-measurement of monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate.

The financial statements of other Company’s subsidiaries whose functional currency is other than the U.S. dollar have been translated into U.S dollars. Assets and liabilities have been translated using the exchange rates in effect as of the balance sheet date. Statements of income amounts have been translated using the date of the transaction or at the average exchange rate to for the relevant period.

The resulting translation adjustments are reported as a component of stockholders’ equity in accumulated other comprehensive income (loss). Gains and losses arising from intercompany foreign currency transactions that are of a long-term investment in nature are reported in the same manner as translation adjustments.

d.Cash and cash equivalents:

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired.

e.Short-term bank deposits:

Short-term bank deposits are deposits with an original maturity of more than three months and less than a year from the date of investment and which do not meet the definition of cash equivalents. The deposits are presented according to their term deposits.

f.Restricted bank deposits:

Short-term restricted bank deposits possess an original maturity of more than three months and less than a year from the date of investment. Long-term restricted bank deposits possess an original maturity of more than one year from the date of investment. Restricted bank deposits are primarily used as collateral for the Company's office leases and credit cards.

g.Marketable Securities:

Marketable securities consist of corporate and governmental bonds. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. In accordance with FASB ASC No. 320 “Investments - Debt and Equity Securities”, the Company classifies marketable securities as available-for-sale.

Available-for-sale ("AFS") securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in financial income (expenses), net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income (expenses), net.

The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable securities with maturities of 12 months or less are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term.

On each reporting period, the Company evaluates whether declines in fair value below carrying value are due to expected credit losses, as well as the ability and intent to hold the investment until a forecasted recovery occurs, in accordance with ASC 326. Allowance for credit losses on AFS debt securities are recognized as a charge in financial income (expenses), net, on the consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity.

The Company has not recorded credit losses for the years ended December 31, 2022, 2021 and 2020.

The Company determines realized gains or losses on sale of marketable securities on a specific identification method and records such gains or losses in financial income (expenses), net on the consolidated statements of income.

h.Investment in privately-held companies:

The Company's equity investments are investments in equity securities of privately-held companies, that are not traded and therefore not supported with observable market prices. The Company elected to account for its equity investments without readily determinable market values 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 using Accounting Standards Update (“ASU”) 2016-01.

The Company adjusts the carrying value of its investments to fair value upon observable transactions for identical or similar investments of the same issuer.

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. The maximum loss the Company can incur for its investments is their carrying value.

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.

All gains and losses on investments in privately-held companies, realized and unrealized, are recognized in other income.

i.Trade receivables:

Trade receivables are stated net of credit losses allowance. The Company is exposed to credit losses primarily through sales of products. The allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the Company’s methodology. The Company’s methodology is based on historical collection experience, customer creditworthiness, current and future economic condition and market condition. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Trade receivables are written off after all reasonable means to collect the full amount have been exhausted.

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected:

	Year Ended December 31, 2022
Balance, at beginning of the period	$	2,626
Increase in provision for expected credit losses		679
Amounts written off charged against the allowance and others		(103	)
Balance, at end of the period	$	3,202

j.Inventories:

Inventories are stated at the lower of cost or net realizable value. Cost includes depreciation, labor, material and overhead costs. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company periodically evaluates the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its net realizable value. Cost of finished goods and raw materials is determined using the moving average cost method.

k.Property, plant and equipment:

Property, plant and equipment are stated at cost, net of accumulated depreciation and government grants. Assets under construction represent the construction or development stage of property and equipment that have not yet been placed in service for the Company's intended use. Depreciation is calculated by the straight-line method over the estimated useful life of the assets, at the following rates:

		%
Buildings and plants		2.5-5.7 (mainly 2.5)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		9-33.3 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

l. Government assistance

In 2020, SolarEdge Ltd, a wholly owned subsidiary of the Company, entered into an agreement with the Israeli Ministry of Economy and Industry to partially subsidize the construction of Sella 1, a factory for production of inverters and optimizers, in the amount of approximately $7,000.

In 2020, SolarEdge Korea (formerly Kokam), a wholly owned subsidiary of the Company, entered into an agreement with Chungcheongbuk-do province of South Korea to partially subsidize the construction of Sella 2, a factory for production of lithium-ion cells and batteries, in the amount of approximately $12,000.

The assistance is in the form of a cash subsidy, which the government will pay as a grant upon the satisfaction of predetermined construction completion milestones. When the defined milestones are reached and the right to receive a subsidy amount becomes virtually certain, the amount of the grant is recorded as a reduction of the related asset's value under “Property, plant and equipment, net”.

The Company recorded reduction of property, plant and equipment in the amount of $7,359 and $4,842 for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, the Company has a right to receive of $9,233 that has yet to be paid which was recorded under “Prepaid expenses and other current assets”.

m.Leases:

The Company determines if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance lease. In determining the leases classification the Company assesses among other criteria: (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and long-term operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net, other current liabilities, and long-term finance lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term.

The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset.

In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

n.Business Combination:

The Company allocates the fair value of the purchase price to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets.

Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the finalization of the measurement period, any subsequent adjustments are recorded to earnings.

o.Intangible Assets:

Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life (see Note 8).

p.Impairment of long-lived assets:

The Company’s long-lived assets to be held and used, including ROU assets and identifiable intangible assets that are subject to amortization, other than goodwill, are reviewed for impairment in accordance with ASC 360 “Property, Plants and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the assets (or asset group). If such evaluation indicates that the carrying amount of the asset (or asset group) is not recoverable, the assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value (see Note 8).

For the years ended December 31, 2022, 2021 and 2020, the Company recorded impairment charges of $29,037, $2,209 and $1,471, under Goodwill impairment and other operating expenses (income), net, respectively.

q.Goodwill:

Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling interest in the acquiree, over the assigned fair values of the identifiable net assets acquired. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the fourth quarter of the fiscal year.

The goodwill impairment test is performed according to the following principles:

(1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.

(2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized (see Note 9).

For the year ended December 31, 2022, the Company recorded impairment charges of goodwill in the amount of $90,104.

For the years ended December 31, 2021 and 2020, the Company did not record any impairment charges.

r.Cloud computing arrangements:

In 2021, due to the growing size and complexity of the Company, the Company decided to implement a new global enterprise resource planning ("ERP") system, which will replace the Company's existing operating and financial systems. During the year ended December 31, 2022, the Company began implementing a cloud-based ERP system. The implementation is expected to occur in phases over the next several years.

The Company incurs costs to implement cloud computing arrangements ("CCA") that are hosted by third party vendors. Implementation costs associated with CCA are capitalized when incurred during the application development phase until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the contractual term of the cloud computing arrangement and are recognized as an operating expense within the consolidated statements of income. Capitalized amounts related to such arrangements are recorded within other long-term assets in the consolidated balance sheets. Cash payments for CCA implementation costs are classified as cash outflows from operating activities.

For the year ended December 31, 2022, the Company has capitalized implementation costs related to its upcoming ERP conversion in the amount of $3,457 and presented it under other long-term assets in the consolidated balance sheet.

s.Severance pay:

The employees of the Company’s Israeli subsidiary are included under Section 14 of the Severance Pay Law, 1963, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33% of their monthly salary. These payments cause the Company to be released from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees; therefore, related assets and liabilities are not presented in the consolidated balance sheets.

If applicable, severance costs are recorded in each entity in accordance with local laws and regulations.

For the years ended December 31, 2022, 2021 and 2020, the Company recorded $17,202, $14,231 and $10,598 in severance expenses related to its employees, respectively.

t.Derivatives and Hedging:

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 year ended December 31, 2022, the Company instituted a foreign currency cash flow hedging program whereby 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.

The Company also entered into derivative instrument arrangements to hedge the Company’s exposure to currencies other than the U.S. dollar. These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses, resulting from fair value remeasurement, were recorded immediately in the statement of income, as a financial income (expense), net..

The Company classifies cash flows related to its hedging as operating activities in its consolidated statement of cash flows.

u.Revenue recognition:

Revenues are recognized in accordance with ASC 606; revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that the Company expects in exchange for those goods or services.

The Company’s products and services consist mainly of (i) power optimizers, (ii) inverters, (iii) residential batteries, (iv) a related cloud-based monitoring platform, (v) communication services, (vi) warranty extension services, (vii) Lithium-ion cells and other storage solutions (viii) EV components, and (ix) automated machinery for manufacturing lines.

The Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue.

In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the performance obligation is satisfied.

(1)Identify the contract with a customer

A contract is an agreement or purchase order between two or more parties that creates enforceable rights and obligations. In evaluating the contract, the Company analyzes the customer’s intent and ability to pay the amount of promised consideration (credit risk) and considers the probability of collecting substantially all of the consideration.

The Company determines whether collectability is reasonably assured on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a long-term business relationship and a history of successful collection. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position, the number of years the customer has been in business, the history of collection with the customer, and the customer’s ability to pay, and typically assigns a credit limit based on that review.

(2)Identify the performance obligations in the contract

At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligations are the provisions of the following: providing of the Company’s products; cloud based monitoring services; extended warranty services and communication services. Depending on the shipping terms agreed with the customer, the Company may perform shipping and handling activities after the customer obtains control of the goods and revenue is recognized. The Company has elected to account for shipping and handling costs as activities to fulfill the promise to transfer the goods. As a result of this accounting policy election, the Company does not consider shipping and handling activities after the customer obtains control of the goods as promised services to its customers.

(3)Determine the transaction price

The transaction price is the amount of consideration to which the Company is entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Generally, the Company does not provide price protection, stock rotation, and/or right of return. The Company determines the transaction price for all satisfied and unsatisfied performance obligations identified in the contract from contract inception to the beginning of the earliest period presented. Rebates or discounts on goods or services are accounted for as variable consideration. The rebate or discount program is applied retrospectively for future purchases. Provisions for rebates, sales incentives, and discounts to customers are accounted for as reductions in revenue in the same period the related sales are recorded.

Accrual for rebates for direct customers is presented net of receivables. Accrual for sale incentives related to non-direct customers is presented under accrued expenses and other current liabilities. The Company accrued $176,706 and $152,717 for rebates and sales incentives as of December 31, 2022 and 2021, respectively.

When a contract provides a customer with payment terms of more than a year, the Company considers whether those terms create variability in the transaction price and whether a significant financing component exists.

As of December 31, 2022, the Company has not provided payment terms of more than a year.

The performance obligations that extend for a period greater than one year are those that include a financial component: (i) warranty extension services, (ii) cloud-based monitoring, and (iii) communication services. The Company recognizes financing component expenses in its consolidated statement of income in relation to advance payments for performance obligations that extend for a period greater than one year. These financing component expenses are reflected in the Company’s deferred revenues balance.

(4)Allocate the transaction price to the performance obligations in the contract

The Company performs an allocation of the transaction price to each separate performance obligation, in proportion to their relative standalone selling prices.

(5)Recognize revenue when a performance obligation is satisfied

Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control either transfers over time or at a point in time, which affects when revenue is recorded.

Revenues from sales of products are recognized based on the transfer of control, which includes but is not limited to, the agreed International Commercial terms, or “INCOTERMS”. Revenues related to warranty extension services, cloud-based monitoring, and communication services are recognized over time on a straight-line basis.

Deferred revenues consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products. Deferred revenues are classified as short-term and long-term deferred revenues based on the period in which revenues are expected to be recognized (see Note 14).

v.Cost of revenues:

Cost of revenues includes the following: product costs consisting of purchases from contract manufacturers and other suppliers, direct and indirect manufacturing costs, shipping and handling, support, warranty expenses, provision for losses related to slow moving and dead inventory, personnel and logistics costs.

Shipping and handling costs, which amounted to $257,753, $116,574 and $101,597, for the years ended December 31, 2022, 2021 and 2020, respectively, are included in the cost of revenues in the consolidated statements of income. Shipping and handling costs include custom tariff charges and all other costs associated with the distribution of finished goods from the Company’s point of sale directly to its customers.

w.Warranty obligations:

The Company provides a product warranty for its solar segment related products as follows: a standard 10-year limited warranty for its residential batteries, a standard 12-year limited warranty for the majority of its inverters, that is extendable up to 25 years for an additional cost and a 25-year limited warranty for power optimizers.

The Company maintains reserves to cover the expected costs that could result from the standard warranty. The warranty liability is in the form of product replacement and associated costs. Warranty reserves are based on the Company’s best estimate of such costs and are included in cost of revenues. The reserve for the related warranty expenses is based on various factors including assumptions about the frequency of warranty claims on product failures, derived from results of accelerated lab testing, field monitoring, analysis of the history of product field failures, and the Company’s reliability estimates.

The Company has established a reliability measurement system based on the units’ estimated mean time between failure, or MTBF, a metric that equates to a steady-state failure rate per year for each product generation. The MTBF predicts the expected failure rate of each product within the Company's products installed base during the expected product warranted lifetime.

The Company performs accelerated life cycle testing, which simulates the service life of the product in a short period of time.

The accelerated life cycle tests incorporate test methodologies derived from standard tests used by solar module vendors to evaluate the period over which solar modules wear out. Corresponding replacement costs are updated periodically to reflect changes in the Company’s actual and estimated production costs for its products, rate of usage of refurbished units as a replacement of faulty units, and other costs related to logistic and subcontractors’ services associated with the replacement products.

In addition, through the collection of actual field failure statistics, the Company has identified several additional failure causes that are not included in the MTBF model. Such causes, which mostly consist of design errors, workmanship errors caused during the manufacturing process and, to a lesser extent, replacement of non-faulty units by installers, result in generating additional replacement costs to the replacement costs projected under the MTBF model.

For other products, the Company accrues for warranty costs based on the Company’s best estimate of product and associated costs. The Company’s other products are sold with a standard limited warranty that typically range in duration from one to ten years.

Warranty obligations are classified as short-term and long-term obligations based on the period in which the warranty is expected to be claimed.

x.Convertible senior notes:

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

The Company’s Convertible Senior Notes are included in the calculation of diluted Earnings Per Share (“EPS”) if the assumed conversion into common shares is dilutive, using the “if-converted” method. This involves adding back the periodic non-cash interest expense net of tax associated with the Notes to the numerator and by adding the shares that would be issued in an assumed conversion (regardless of whether the conversion option is in or out of the money) to the denominator for the purposes of calculating diluted EPS, unless the Notes are antidilutive (see Note 21).

y.Advertising costs

Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of income. The Company incurred advertising expenses of $11,090, $6,323, and $4,199 for the years ended December 31, 2022, 2021, and 2020, respectively.

z.Research and development costs:

Research and development costs, are charged to the consolidated statement of income as incurred.

aa.Concentrations of credit risks:

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, restricted bank deposits, marketable securities, trade receivables, derivative instruments and other accounts receivable.

Cash and cash equivalents, short-term bank deposits and restricted bank deposits are mainly invested in major banks in the U.S., Israel, Germany and Korea. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments.

The Company's debt marketable securities include investments in highly-rated corporate debentures (located mainly in U.S., Canada, France, UK, Cayman Islands and other countries) and governmental bonds. The financial institutions that hold the Company's debt marketable securities are major financial institutions located in the United States. The Company believes its debt marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in an issuer (see Note 2g.).

The trade receivables of the Company derive from sales to customers located primarily in the United States and Europe.

The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for credit losses (see Note 2i.). The Company generally does not require collaterals, however, in certain circumstances, the Company may require letters of credit, other collateral, or additional guarantees. From time to time, the Company may purchase trade credit insurance.

The Company had one major customer (customers with attributable revenues that represents more than 10% of total revenues) for the year ended December 31, 2022, two major customers for the year ended December 31, 2021, and one major customer for the year ended December 31, 2020 that accounted for approximately 18.5%, 30.9%% and 14.8% of the Company’s consolidated revenues, respectively. All of the revenues from these customers were generated in the solar segment.

The Company had three major customers (customer with a balance that represents more than 10% of total trade receivables, net) as of December 31, 2022 and two major customers for the year ended December 31, 2021 that accounted in the aggregate for approximately 42.2% and 39.3%, of the Company’s consolidated trade receivables, net, respectively.

ab.Concentrations of supply risks:

The Company depends on two contract manufacturers and several limited or single source component suppliers, including, Samsung SDI, that provides lithium-ion battery cells required for the Company's residential storage solution. 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 December 31, 2022 and 2021, two contract manufacturers collectively accounted for 34.3% and 27.9% of the Company’s total trade payables, net, respectively.

In the second quarter of 2022, the Company announced the opening of “Sella 2”, a two gigawatt-hour (GWh) Li-Ion battery cell manufacturing facility located in South Korea. Sella 2 is in the ramp-up phase, that is expected to continue throughout 2023. Sella 2 is the Company's second owned manufacturing facility following the establishment of Sella 1 in 2020. Sella 1 is the Company's manufacturing facility in the North of Israel that produces power optimizers and inverters for the Company's solar activities.

ac.Fair value of financial instruments:

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

The carrying value of cash and cash equivalents, short-term bank deposits, restricted bank deposits, trade receivables, net, long term bank loans and current maturities, prepaid expenses and other current assets, trade payables, net, employee and payroll accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of such instruments.

Assets measured at fair value on a recurring basis as of December 31, 2022 and 2021 are comprised of money market funds, derivative instruments and marketable securities (see Note 12).

The Company applies ASC 820 “Fair Value Measurements and Disclosures”, with respect to fair value measurements of all financial assets and liabilities. Fair value is an exit price, representing the amount that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1 -Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 -Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 -Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

ad.Stock-based compensation:

The Company uses the closing trading price of its common stock on the day before the grant date as the fair value of awards of restricted stock units ("RSUs"), and performance stock units that are based on the Company's financial performance targets ("PSUs"). The compensation expense for RSUs is recognized using a straight-line attribution method over the requisite employee service period while compensation expense for PSUs is recognized using an accelerated amortization model. The Company estimates the forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures.

The Company granted under its 2015 Plan, PSU awards to certain employees and officers which vest upon the achievement of certain performance or market conditions subject to their continued employment with the Company.

The market condition for the PSUs is based on the Company’s total shareholder return ("TSR") compared to the TSR of companies listed in the S&P 500 index over a one to three year performance period. The Company uses a Monte-Carlo simulation to determine the grant date fair value for these awards, which takes into consideration the market price of a share of the Company’s common stock on the date of grant less the present value of dividends expected during the requisite service period, as well as the possible outcomes pertaining to the TSR market condition. The Company recognizes such compensation expenses on an accelerated vesting method.

The Company selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its stock-option awards and Employee Stock Purchase Plan (“ESPP”). The option-pricing model requires a number of assumptions, of which the most significant are the fair market value of the underlying common stock, expected stock price volatility, and the expected option term. Expected volatility for stock-option awards and ESPP was calculated based upon the Company’s stock prices. The expected term of options granted is based upon historical experience and represents the period between the options’ grant date and the expected exercise or expiration date. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company does not use dividend yield rate since the Company has not declared or paid any dividends on its common stock and does not expect to pay any dividends in the foreseeable future.

A modification of the terms of a stock-based award is treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value of the modification to the award.

The fair value for options granted to employees and ESPP in the years ended December 31, 2022, 2021 and 2020, is estimated at the date of grant using the following assumptions:

	Year ended December 31,
	2022	2021	2020
Employee Stock Options ⁽¹⁾
Risk-free interest	-	0.43%	1.73%
Dividend yields	-	0%	0%
Volatility	-	60.74%	58.98%
Expected option term in years	-	5.48	6.00
Estimated forfeiture rate	-	0%	0%
ESPP
Risk-free interest	1.64% - 4.70%	0.03% - 0.10%	0.09% - 1.63%
Dividend yields	0%	0%	0%
Volatility	71.28% - 71.97%	48.39% - 76.05%	55.95% - 92.57%
Expected term	6 months	6 months	6 months
PSU
Risk-free interest	1.77%	-	-
Dividend yields	0%	-	-
Volatility	67.42%	-	-
Expected term	1 - 3 years	-	-

(1) No new options were granted in 2022.

ae.Earnings per share

Basic net EPS is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period.

Diluted net EPS is computed by giving effect to all potential shares of common stock, to the extent dilutive, including stock options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, and the Notes due 2025, all in accordance with ASC No. 260, "Earnings Per Share."

af.Income taxes:

The Company and its subsidiaries account for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent the Company believes they will not be realized. The Company considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions.

Tax has not been recorded for (a) taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them; and (b) taxes that would apply on the distribution of unremitted earnings from foreign subsidiaries, as these are retained for reinvestment in the Group.

The Company accounts for uncertain tax positions in accordance with ASC 740-10 two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement.

ag.New accounting pronouncements not yet effective:

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

ah.Recently issued and adopted pronouncements:

In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. The Company elected to early adopt ASU 2021-08 on January 1, 2022, and will apply this new guidance to all business combinations consummated subsequent to this date. Currently, this ASU has no impact on the Company's consolidated financial statements.

In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. Under ASU 2021-10, the accounting entities with transactions with a government that are accounted for by analogy to a grant or contribution accounting model are required to annually disclose certain information regarding the transaction including: (i) nature and related accounting policy used; (ii) line items on the balance sheet and income statement affected by the transactions; (iii) amounts applicable to each line item; and (iv) significant terms and conditions. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this ASU has a minor impact on the disclosures to the annual consolidated financial statements.

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

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2022

Marketable Securities [Abstract]

MARKETABLE SECURITIES

NOTE 3: MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable securities at December 31, 2022:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	222,482	$	-	$	(4,657	)	$	217,825
Governmental bonds		23,845		-		(553	)		23,292
		246,327		-		(5,210	)		241,117
Available for-sale – matures after one year:
Corporate bonds		657,238		80		(26,460	)		630,858
Governmental bonds		15,250		-		(617	)		14,633
		672,488		80		(27,077	)		645,491
Total	$	918,815	$	80	$	(32,287	)	$	886,608

The following is a summary of available-for-sale marketable securities at December 31, 2021:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	160,462	$	23	$	(320	)	$	160,165
Governmental bonds		7,576		-		(13	)		7,563
		168,038		23		(333	)		167,728
Available for-sale – matures after one year:
Corporate bonds		474,412		9		(5,580	)		468,841
Governmental bonds		13,506		-		(119	)		13,387
		487,918		9		(5,699	)		482,228
Total	$	655,956	$	32	$	(6,032	)	$	649,956

Proceeds from maturity of available-for-sale marketable securities during the years ended December 31, 2022, 2021 and 2020, were $201,974, $187,375 and $141,839, respectively.

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2022 were $29,236, which led to realized losses of $434.

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2021 were $14,813, which led to realized losses of $16.

The Company had no proceeds from sales of available-for sale, marketable securities during the year ended December 31, 2020, therefore no realized gains or losses from the sale of available-for-sale marketable securities were recognized.

INVENTORIES, NET

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

INVENTORIES, NET

NOTE 4: INVENTORIES, NET

	As of December 31,
	2022		2021
Raw materials	$	503,257	$	247,386
Work in process		23,407		13,863
Finished goods		202,537		118,894
	$	729,201	$	380,143

The Company recorded inventory write-downs of $10,170, $7,142 and $8,864 for the years ended December 31, 2022, 2021 and 2020, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS

	As of December 31,
	2022		2021
Vendor non-trade receivables (*)	$	147,597	$	71,041
Government authorities		55,670		63,440
Prepaid expenses and other		37,815		42,511
	$	241,082	$	176,992

(*) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues (see Note 19b).

PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 6: PROPERTY, PLANT AND EQUIPMENT, NET

	As of December 31,
	2022		2021
Cost:
Land	$	13,070	$	13,829
Buildings and plants		152,218		62,519
Computers and peripheral equipment		46,376		44,960
Office furniture and equipment		10,911		10,772
Laboratory and testing equipment		58,454		41,365
Machinery and equipment		315,155		201,406
Leasehold improvements		85,147		73,991
Assets under construction and payments on account		47,168		112,037
Gross property, plant and equipment		728,499		560,879
Less - accumulated depreciation		184,530		150,500
Total property, plant and equipment, net	$	543,969	$	410,379

Depreciation expenses for the years ended December 31, 2022, 2021 and 2020, were $40,580, $29,359 and $22,355, respectively.

LEASES

12 Months Ended

Dec. 31, 2022

Lessee Disclosure [Abstract]

LEASES

NOTE 7: LEASES

The following table summarizes the Company’s lease-related assets and liabilities recorded in the consolidated balance sheets:

Description	Classification on the consolidated Balance Sheet	2022		2021
Assets:
Operating lease assets, net of lease incentive obligation	Operating lease right-of use assets, net	$	62,754	$	47,137
Finance lease assets	Property, plant and equipment, net		52,934		41,758
Total lease assets		$	115,688	$	88,895
Liabilities:
Operating leases short term	Accrued expenses and other current liabilities	$	16,183	$	12,728
Finance leases short term	Accrued expenses and other current liabilities		3,263		1,875
Operating leases long term	Operating lease liabilities		46,256		38,912
Finance leases long term	Finance lease liabilities		45,385		40,508
Total lease liabilities		$	111,087	$	94,023

The following table presents certain information related to the operating and finance leases:

	Year ended December 31,
	2022			2021
Finance leases:
Finance lease cost	$	4,196		$	2,065
Weighted average remaining lease term in years		16.28			16.43
Weighted average annual discount rate		2.30	%		1.93	%
Operating leases:
Operating lease cost	$	15,901		$	14,890
Weighted average remaining lease term in years		8.33			10.25
Weighted average annual discount rate		2.17	%		1.68	%

The following table presents supplemental cash flows information related to the lease costs for operating and finance leases:

	Year ended December 31,
	2022		2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$	16,343	$	14,890
Operating cash flows for finance leases	$	420	$	523
Financing cash flows for finance leases	$	2,834	$	1,293

The following table reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years of the operating and finance lease liabilities recorded in the consolidated balance sheets:

	Operating Leases			Finance Leases
2023	$	16,330		$	3,298
2024		14,746			3,369
2025		7,338			3,539
2026		4,246			3,539
2027		3,285			4,083
Thereafter		22,085			40,445
Total lease payments	$	68,030		$	58,273
Less amount of lease payments representing interest		(5,591	)		(9,625	)
Present value of future lease payments	$	62,439		$	48,648
Less current lease liabilities		(16,183	)		(3,263	)
Long-term lease liabilities	$	46,256		$	45,385

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

NOTE 8: INTANGIBLE ASSETS, NET

In June 2022, the Company decided to discontinue its stand-alone uninterrupted power supply activities or UPS (“Critical Power”). The Company recorded a loss in the amount of $1,226 pertaining to Critical Power's current technology and customer relationships.

In October 2022, following the e-Mobility and Automation Machines reporting unit’s goodwill analysis, an impairment test for long-lived assets was performed. The test included comparing the sum of the estimated undiscounted future cash flow attributable to the identified assets group and its carrying amounts, and recognizing an impairment for the amount to which the carrying amount exceeds the fair value of the assets groups. As a result, the Company recorded a current technology impairment of $26,917 related to e-Mobility's asset group and a $245 trade name impairment related to Automation Machines' asset group. The impairments are recorded under Goodwill impairment and other operating expenses (income), net in the consolidated statement of income.

Acquired intangible assets consisted of the following as of December 31, 2022, and 2021:

	As of December 31,
	2022			2021
Intangible assets with finite lives:
Current Technology	$	29,196		$	74,976
Customer relationships		2,958			3,946
Trade names		3,287			3,929
Assembled workforce		3,575			3,575
Patents		1,400			1,400
Gross intangible assets		40,416			87,826
Less - accumulated amortization		(20,487	)		(28,965	)
Total intangible assets, net	$	19,929		$	58,861

Amortization expenses for the years ended December 31, 2022, 2021 and 2020, were $9,096, $10,176 and $9,479, respectively.

Expected future amortization expenses of intangible assets as of December 31, 2022 are as follows:

2023	$	5,736
2024		5,717
2025		3,890
2026		3,826
2027		558
2028 and thereafter		202
	$	19,929

GOODWILL

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 9: GOODWILL

Goodwill is tested for impairment annually in the fourth quarter of each year and is examined between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired.

In June 2022, the Company decided to discontinue its stand-alone Critical Power activities. The Company recorded a loss in the amount of $2,782 pertaining to Critical Power's goodwill.

The Company completed its annual goodwill impairment test in the fourth quarter of 2022 for all reporting units and determined the following:

Qualitative assessment of the Company’s storage reporting unit was performed in order to determine whether it is necessary to conduct the quantitative goodwill impairment test. Based on the results, the Company believes that it is more likely than not that the fair value of said reporting unit is greater than its carrying value and therefore a quantitative goodwill impairment test was not performed, and no goodwill impairment was recorded.

Due to impairment indicators of the e-Mobility reporting unit, which include, among other things, a shift in the Company's strategy that may result in a decline of the projected growth forecasted at the time of acquisition, the Company performed a quantitative goodwill impairment test. As a result, the Company recorded goodwill impairment in the amount of $80,534 which is presented under Goodwill impairment and other operating expenses (income), net in the consolidated statement of income.

In addition, a quantitative test has also been performed for the Automation Machines reporting unit due to indicators of impairment identified, which include, among other things, managerial changes and a decline in the overall financial performance compared with past projections. As a result, the Company recorded goodwill impairment in the amount of $6,788, which was recorded under Goodwill impairment and other operating expenses (income), net in the consolidated statement of income.

The fair value of the reporting units was estimated using a discounted cash flow analysis. When performing this analysis, the Company also considered multiples of earnings from comparable public companies. The decline in fair value primarily resulted from an increased discount rate and reduced estimated future cash flows.

The following summarizes the goodwill activity for the year ended December 31, 2022, and 2021:

	Solar			All other			Total
Goodwill at December 31, 2020	$	33,255		$	107,224		$	140,479
Changes during the year:
Foreign currency adjustments		(2,750	)		(8,100	)		(10,850	)
Goodwill at December 31, 2021		30,505			99,124			129,629
Changes during the year:
Foreign currency adjustments		(1,737	)		(6,599	)		(8,336	)
Accumulated impairment losses		-			(90,104	)		(90,104	)
Goodwill at December 31, 2022	$	28,768		$	2,421		$	31,189

As of December 31, 2022 there were $90,104 accumulated goodwill impairment losses. As of December 31, 2021 and 2020 there were no accumulated goodwill impairment losses.

INVESTMENT IN PRIVATELY-HELD COMPANY	12 Months Ended
INVESTMENT IN PRIVATELY-HELD COMPANY	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN PRIVATELY-HELD COMPANY	NOTE 10: 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. On February 1, 2021, the Company signed on a preferred stock purchase agreement for an additional investment of $5,000 in AutoGrid's preferred stock (the "second investment"). On April 28, 2021, the Company completed the second investment. The Company accounted for the AutoGrid investment as an equity investment without readily determinable fair values. On July 20, 2022, the Company completed the sale of its investment in AutoGrid for proceeds of $24,362, thus recognizing a gain of $7,719 which was recorded in the statement of income under "Other income". Investments in privately-held companies are included within other long-term assets in the consolidated balance sheets. As of December 31, 2022, the Company had no investments in privately-held companies. As of December 31, 2021, the carrying value of investments in privately-held companies was $16,643. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified up to the date of the sale.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 11: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As of December 31, 2022, the Company entered into forward contracts and put and call options to sell U.S. dollars (“USD”) for NIS in the amount of approximately NIS 194 million and NIS 18 million, respectively.

The fair values of outstanding derivative instruments were as follows:

	Balance sheet location	December 31, 2022			December 31, 2021
Derivative assets of options and forward contracts:
Designated cash flow hedges	Prepaid expenses and other current assets	$	-		$	992
Non-designated hedges	Prepaid expenses and other current assets		-			3,017
Total derivative assets		$	-		$	4,009
Derivative liabilities of options and forward contracts:
Designated cash flow hedges	Accrued expenses and other current liabilities	$	(1,874	)	$	-
Non-designated hedges	Accrued expenses and other current liabilities		-			(169	)
Total derivative liabilities		$	(1,874	)	$	(169	)

Gains (losses) on derivative instruments recognized in the consolidated statements of income are summarized below:

	Year ended December 31,
	2022		2021			2020			Affected line item
Foreign exchange contracts
Non Designated Hedging Instruments	$	4,716		$	9,417	$	(4,013	)	Financial income (expense), net

See Note 20 for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive loss.

Gains (losses) on derivative instruments recognized in the consolidated statements of comprehensive income were as follows:

	Year ended December 31
	2022			2021		2020
Foreign exchange contracts:
Designated Hedging Instruments	$	(8,965	)	$	3,289	$	966

As of December 31, 2022, the Company estimates that all of the net derivative losses related to the Company's foreign exchange cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2022

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 12: 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 and cash equivalents are classified within Level 1 because these assets are valued using quoted market prices. Marketable securities and foreign currency derivative contracts are classified within level 2 due to these assets being valued by alternative pricing sources and models utilizing market observable inputs.

The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2022 and 2021 by level within the fair value hierarchy:

	Fair Value Hierarchy	Fair value measurements as of
Description	Fair Value Hierarchy	December 31, 2022		December 31, 2021
Assets:
Cash and cash equivalents:
Cash	Level 1	$	695,004	$	508,389
Money market mutual funds	Level 1	$	25,149	$	21,680
Deposits	Level 1	$	62,959	$	20
Derivative instruments	Level 2	$	-	$	4,009
Short-term marketable securities:
Corporate bonds	Level 2	$	217,825	$	160,165
Governmental bonds	Level 2	$	23,292	$	7,563
Long-term marketable securities:
Corporate bonds	Level 2	$	630,858	$	468,841
Governmental bonds	Level 2	$	14,633	$	13,387
Liabilities:
Derivative instruments	Level 2	$	(1,874)	$	(169)

In addition to assets and liabilities that are recorded at fair value on a recurring basis, impairment indicators may subject goodwill and long-lived assets to nonrecurring fair value measurements. The implied fair values of the e-Mobility and Automation Machines reporting units were estimated using the discounted cash flow approach (see Notes 8 and 9). The inputs to these models are considered Level 3.

- 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

WARRANTY OBLIGATIONS

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

NOTE 13: WARRANTY OBLIGATIONS

Changes in the Company’s product warranty obligations for the years ended December 31, 2022, 2021 and 2020 were as follows:

	December 31,
	2022			2021			2020
Balance, at the beginning of the period	$	265,160		$	204,994		$	172,563
Additions and adjustments to cost of revenues		239,401			150,684			102,832
Usage and current warranty expenses		(119,504	)		(90,518	)		(70,401	)
Balance, at end of the period		385,057			265,160			204,994
Less current portion		(103,975	)		(71,480	)		(62,614	)
Long term portion	$	281,082		$	193,680		$	142,380

DEFERRED REVENUES

12 Months Ended

Dec. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

DEFERRED REVENUES

NOTE 14: DEFERRED REVENUES

Significant changes in the balances of deferred revenues during the period are as follows:

	December 31,
	2022			2021			2020
Balance, at the beginning of the period	$	169,345		$	140,020		$	160,797
Revenue recognized		(23,017	)		(26,093	)		(72,046	)
Increase in deferred revenues and customer advances		67,249			55,418			51,269
Balance, at the end of the period		213,577			169,345			140,020
Less current portion		(26,641	)		(17,789	)		(24,648	)
Long term portion	$	186,936		$	151,556		$	115,372

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022:

2023	$	26,641
2024		10,891
2025		10,160
2026		9,691
2027		7,565
Thereafter		148,629
Total deferred revenues	$	213,577

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 15: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

	As of December 31,
	2022		2021
Accrued expenses	$	117,638	$	57,158
Government authorities		67,514		22,631
Operating lease liabilities		16,183		12,728
Accrual for sales incentives		6,790		3,048
Provision for legal claims		43		11,622
Other		5,944		2,192
Total accrued expenses and other current liabilities	$	214,112	$	109,379

CONVERTIBLE SENIOR NOTES

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

NOTE 16: 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 December 31, 2022 and 2021:

	As of December 31,
	2022			2021
Liability:
Principal	$	632,500		$	632,500
Unamortized issuance costs		(8,049	)		(10,965	)
Net carrying amount	$	624,451		$	621,535

Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach and therefore the Company did not record amortized debt discount costs related to the Notes in the years ended December 31, 2022 and 2021. For the year ended December 31, 2020, the Company recorded amortized debt discount costs related to the Notes in the amount of $2,480.

For the years ended December 31, 2022, 2021 and 2020 the Company recorded amortized debt issuance costs related to the Notes in the amount of $2,916, $2,903 and $3,185, respectively.

As of December 31, 2022, the issuance costs of the Notes will be amortized over the remaining term of approximately 2.7 years.

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

As of December 31, 2022, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $831. 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 December 31, 2022, the if-converted value of the Notes exceeded the principal amount by $12,452.

OTHER LONG TERM LIABILITIES

12 Months Ended

Dec. 31, 2022

Other Liabilities Disclosure [Abstract]

OTHER LONG TERM LIABILITIES

NOTE 17: OTHER LONG TERM LIABILITIES

	As of December 31,
	2022		2021
Tax liabilities	$	3,830	$	5,105
Accrued severance pay		9,848		10,632
Other		2,078		3,805
	$	15,756	$	19,542

STOCK CAPITAL

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

STOCK CAPITAL

NOTE 18: STOCK CAPITAL

a. Common stock rights:

Common stock confers upon its holders the right to receive notice of, and to participate in, all general meetings of the Company, where each share of common stock shall have one vote for all purposes, to share equally, on a per share basis, in bonuses, profits, or distributions out of fund legally available therefor, and to participate in the distribution of the surplus assets of the Company in the event of liquidation of the Company.

b. Secondary public offering:

On March 17, 2022, the Company offered and sold 2,300,000 shares of the Company’s common stock, at a public offering price of $295.00 per share. The shares of Common Stock were issued and sold in a registered offering pursuant to the underwriting agreement dated March 17, 2022, among the Company, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC (the “Underwriting Agreement”). All of the offered shares were issued at closing, including 300,000 shares of Common Stock that were issued and sold pursuant to the underwriters’ option to purchase additional shares under the Underwriting Agreement, which was exercised in full on March 18, 2022.

The net proceeds to the Company were $650,526 after deducting underwriters' discounts of $27,140 and commissions of $834.

c. Equity Incentive Plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grants were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, restricted stock units ("RSU"), performance stock units ("PSU"), and other share-based awards to directors, employees, officers, and non-employees of the Company and its subsidiaries. As of December 31, 2022, a total of 18,047,085 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”), an aggregate of 9,410,816 shares are still available for future grants.

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

In 2021, the Company has also committed to issuing additional shares, which are subject to resale registration rights and which carry certain performance conditions (including business performance targets and a continued service relationship with the Company) and are treated as PSUs for accounting purposes.

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 December 31, 2022, an aggregate of 8,617,974 options are still available for future grants under the 2015 Plan.

A summary of the activity in stock options and related information is as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2021		474,280		$	44.68		5.22	$	112,479
Exercised		(135,008	)		29.77		-		-
Forfeited or expired		(243	)		5.01		-		-
Outstanding as of December 31, 2022		339,029		$	50.64		4.86	$	79,414
Vested and expected to vest as of December 31, 2022		338,345		$	50.45		4.85	$	79,315
Exercisable as of December 31, 2022		300,865		$	38.52		4.58	$	73,875

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 years ended December 31, 2022, 2021 and 2020 was $37,948, $65,668, and $251,564, respectively.

There were no options granted in 2022.

The weighted average grant date fair value of options granted to employees and directors during the years ended December 31, 2021 and 2020, was $168.71 and $62.11, respectively.

A summary of the activity in the RSUs and related information is as follows:

	Number of RSUs			Weighted average grant date fair value
Unvested as of January 1, 2022		1,759,972		$	189.25
Granted		683,548			266.06
Vested		(805,872	)		131.79
Forfeited		(149,133	)		214.65
Unvested as of December 31, 2022		1,488,515		$	232.05

A summary of the activity in the PSUs and related information is as follows:

	Number of PSUs		Weighted average grant date fair value
Unvested as of January 1, 2022		108,595	$	296.40
Granted		40,637		294.48
Unvested as of December 31, 2022		149,232	$	295.88

d. Employee Stock Purchase Plan:

The Company adopted an ESPP effective upon the consummation of the IPO. As of December 31, 2022, total of 3,662,737 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero.

The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 15% of their salaries to purchase common stock up to an aggregate limit of $15 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of December 31, 2022, 738,876 shares of common stock had been purchased under the ESPP.

As of December 31, 2022, 2,923,861 shares of common stock were available for future issuance under the ESPP.

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

e. Stock-based compensation expenses:

The Company recognized stock-based compensation expenses related to all stock-based awards in the consolidated statement of income for the years ended December 31, 2022, 2021 and 2020, as follows:

	Year ended December 31,
	2022		2021		2020
Cost of revenues	$	21,818	$	18,743	$	11,082
Research and development		63,211		45,424		27,048
Selling and marketing		31,017		22,834		19,413
General and administrative		29,493		15,592		9,766
Total stock-based compensation expenses	$	145,539	$	102,593	$	67,309

For the year ended December 31, 2022, the Company capitalized $380 stock-based compensation related to the ERP implementation within other long-term assets in the consolidated balance sheets for the year ended December 31, 2022. In 2021 and 2020 the Company did not capitalize any stock-based compensation expenses.

The total tax benefit associated with share-based compensation for the year ended December 31, 2022, 2021 and 2020 was $7,747, $19,113 and $7,847, respectively. The tax benefit realized from share-based compensation for the year ended December 31, 2022, 2021 and 2020 was $10,171, $13,379 and $11,263, respectively.

As of December 31, 2022, there were total unrecognized compensation expenses in the amount of $343,473 related to non-vested equity-based compensation arrangements granted. These expenses are expected to be recognized during the period from October 1, 2022 through November 30, 2026.

COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 19: COMMITMENTS AND CONTINGENT LIABILITIES

a.	Guarantees:

As of December 31, 2022, contingent liabilities exist regarding guarantees in the amounts of $5,655 and $1,372 in respect of office rent lease agreements and customs and other transactions, respectively.

b.	Contractual purchase obligations:

The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories and other purchase orders, which cannot be canceled without penalty. In addition, the Company acquires raw materials or other goods and services, including product components, by issuing authorizations to its suppliers to purchase materials based on its projected demand and manufacturing needs.

As of December 31, 2022, the Company had non-cancelable purchase obligations totaling approximately $1,590,229, out of which the Company recorded a provision for loss in the amount of $7,002.

As of December 31, 2022, the Company had contractual obligations for capital expenditures totaling approximately $73,955. 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 second lithium-ion cell and battery factory in Korea.

c.	Legal claims:

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

In September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW - 27.6kW inverters infringed on two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5 million (approximately $5,866) 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, the invalidity was appealed by SMA and in January 2023, the German Supreme Court upheld the finding of invalidity. 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. In August 2021, the German Patent Court rendered SMA's second patent invalid, and this invalidity has been appealed by SMA and a hearing is pending. The Company believes that it has meritorious defenses to these claims and intends to vigorously defend against the remaining lawsuit.

On July 28, 2022, the Company was served with complaints filed by Ampt LLC in the International Trade Commission (the “Commission”) pursuant to Section 337 of the Tariff Act of 1930, as amended, in the District Court for the District of Delaware alleging patent infringement against the Company and its subsidiary SolarEdge Technologies Ltd. On October 24, 2022, the complaint filed in the District Court of Delaware was administratively stayed until the Commission's action is resolved. The Company believes that it has meritorious defenses to the complaints and intend to vigorously defend against them.

On November 3, 2022, the Company received notice that a class action lawsuit was filed in the U.S District Court or the Southern District of New York against the Company, SolarEdge Technologies Ltd., the Company’s CEO and the Company’s CFO, by a purported stockholder of the Company, alleging violations of the Federal Securities Act in connection with complaints filed against the Company by Ampt LLC, detailed above. On February 14, 2023, the lawsuit was voluntarily withdrawn by the plaintiffs and dismissed by the court.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2022

Accumulated Other Comprehensive Income Loss [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (INCOME) LOSS

NOTE 20: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature			Unrealized gains (losses) on foreign currency translation			Total
Beginning balance as of January 1, 2020	$	264		$	—		$	—		$	(2,073	)	$	(1,809	)
Revaluation		45			1,101			—			5,690			6,836
Tax on revaluation		(69	)		(135	)					—			(204	)
Other comprehensive income (loss) before reclassifications		(24	)		966			—			5,690			6,632
Reclassification		—			(1,101	)		—			—			(1,101	)
Tax on reclassification		—			135			—			—			135
Gains reclassified from accumulated other comprehensive income		—			(966	)		—			—			(966	)
Net current period other comprehensive income (loss)		(24	)		—			—			5,690			5,666
Ending balance as of December 31, 2020	$	240		$	—		$	—		$	3,617		$	3,857
Revaluation		(6,283	)		3,735			(17,420	)		(9,681	)		(29,649	)
Tax on revaluation		1,346			(446	)		—			—			900
Other comprehensive income (loss) before reclassifications		(4,937	)		3,289			(17,420	)		(9,681	)		(28,749	)
Reclassification		(16	)		(2,742	)		—			—			(2,758	)
Tax on reclassification		4			327			—			—			331
Gains reclassified from accumulated other comprehensive income		(12	)		(2,415	)		—			—			(2,427	)
Net current period other comprehensive income (loss)		(4,949	)		874			(17,420	)		(9,681	)		(31,176	)
Ending balance as of December 31, 2021	$	(4,709	)	$	874		$	(17,420	)	$	(6,064	)	$	(27,319	)
Revaluation		(26,944	)		(9,890	)		(20,540	)		(1,875	)		(59,249	)
Tax on revaluation		5,583			925			—			—			6,508
Other comprehensive loss before reclassifications		(21,361	)		(8,965	)		(20,540	)		(1,875	)		(52,741	)
Reclassification		736			7,024			—			—			7,760
Tax on reclassification		(115	)		(694	)		—			—			(809	)
Losses reclassified from accumulated other comprehensive income		621			6,330			—			—			6,951
Net current period other comprehensive loss		(20,740	)		(2,635	)		(20,540	)		(1,875	)		(45,790	)
Ending balance as of December 31, 2022	$	(25,449	)	$	(1,761	)	$	(37,960	)	$	(7,939	)	$	(73,109	)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Statement of Income
		2022			2021			2020
Unrealized gains (losses) on available-for-sale marketable securities
	$	(736	)	$	16		$	-		Financial income (expenses), net
		115			(4	)		-		Income taxes
	$	(621	)	$	12		$	-		Total, net of income taxes
Unrealized gains (losses) on cash flow hedges
		(801	)		333			189		Cost of revenues
		(4,142	)		1,645			623		Research and development
		(959	)		334			136		Sales and marketing
		(1,122	)		430			153		General and administrative
	$	(7,024	)	$	2,742		$	1,101		Total, before income taxes
		694			(327	)		(135	)	Income taxes
		(6,330	)		2,415			966		Total, net of income taxes
Total reclassifications for the period	$	(6,951	)	$	2,427		$	966

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 21: EARNINGS PER SHARE

The following table presents the computation of basic and diluted EPS attributable to SolarEdge Technologies Inc.:

	Year ended December 31,
	2022		2021		2020
Basic EPS:
Numerator:
Net income	$	93,779	$	169,170	$	140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic		55,087,770		52,202,182		50,217,330
Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	93,779	$	169,170	$	140,322
Notes due 2025		2,203		2,134		-
Net income attributable to common stock, diluted	$	95,982	$	171,304	$	140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic		55,087,770		52,202,182		50,217,330
Notes due 2025		2,276,818		2,276,818		-
Effect of stock-based awards		736,061		1,492,030		2,578,146
Shares used in computing net earnings per share of common stock, diluted		58,100,649		55,971,030		52,795,476

Shares excluded from the calculation of diluted net EPS due to their anti-dilutive effect		207,980		132,133		715,510

GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET

12 Months Ended

Dec. 31, 2022

Other Operating Income Expenses [Abstract]

GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET

NOTE 22: GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET

	Year ended December 31,
	2022			2021			2020
Impairment of goodwill ¹	$	90,104		$	-		$	-
Impairment of long-lived assets ²		29,037			2,209			1,471
Sale of assets		(2,603	)		-			-
SolarEdge Korea (formerly Kokam) purchase escrow ³		-			(859	)		(4,900	)
Total goodwill impairment and other operating expenses (income)	$	116,538		$	1,350		$	(3,429	)

¹In June 2022, the Company decided to discontinue its stand-alone Critical Power activities. The Company recorded a loss related to its Critical Power business in the amount of $2,782 (see Note 9). In addition, in October 2022, as a result of an impairment test performed on the e-Mobility and Automation Machines reporting units, the Company recorded a loss of $80,534 and $6,788, respectively (see Note 9).

²In October 2022, the Company recorded a loss of $26,917 and $245 as a result of an impairment test performed on e-Mobility and Automation Machines, respectively, a loss of $1,226 due to the discontinuance of Critical Power activities (see Note 8) and other miscellaneous items.

³In the year ended December 31, 2021, the Company received a payment of $859 out of the SolarEdge Korea (formerly Kokam) acquisition escrow, with regards to a working capital adjustment. In the year ended December 31, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of SolarEdge Korea (formerly Kokam) that was settled in arbitration.

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 23:INCOME TAXES

a. Tax rates in the U.S:

The Company is subject to U.S. federal tax at the rate of 21%.

On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into law making significant changes to U.S. income tax law. These changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years 2018 onwards and created new taxes on certain foreign-sourced earnings and certain related-party payments - the Global Intangible Low Taxed Income (“GILTI”). Furthermore, changes introduced by the Tax Act to Section 174 of the Internal Revenue Code, that came into effect on January 1, 2022, require taxpayers to amortize research and development expenditures over five years (if expensed by a U.S. entity) or fifteen years (if expensed by non-U.S. entities), thereby increasing taxable income and payable tax.

The Tax Act required the Company to pay U.S. income taxes on accumulated foreign subsidiaries earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. The total tax liability was calculated to approximately $8,500, which will be paid over the eight-year period provided in the Tax Act (ending 2024).

b. Corporate tax in Israel:

The taxable income of Israeli companies is subject to corporate tax at the rate of 23%. The Israeli subsidiary is also eligible for tax benefits as further described in note 23.j.

c. Carryforward tax losses:

As of December 31, 2022, the foreign subsidiaries have carryforward tax losses of $83,391 which does not have an expiration date.

d. Deferred taxes:

Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company’s deferred tax liabilities and assets are as follows:

	December 31,
	2022			2021
Deferred tax assets, net:
Research and Development carryforward expenses	$	9,335		$	2,479
Carryforward tax losses⁽¹⁾		19,916			19,635
Stock based compensation expenses		9,863			12,140
Deferred revenue		8,954			8,078
Lease liabilities		6,520			11,168
Inventory Impairment		627			1,326
Allowance and other reserves		30,242			10,229
Total Gross deferred tax assets, net	$	85,457		$	65,055
Less, Valuation Allowance		(23,777	)		(14,648	)
Total deferred tax assets, net	$	61,680		$	50,407
Deferred tax liabilities, net:
Intercompany transactions	$	(6,292	)	$	(6,099	)
Right-of-use assets		(6,618	)		(10,486	)
Purchase price allocation		(4,617	)		(6,406	)
Total deferred tax liabilities, net	$	(17,527	)	$	(22,991	)
Recorded as:
Deferred tax assets, net	$	44,153		$	27,572
Deferred tax liabilities, net		-			(156	)
Net deferred tax assets	$	44,153		$	27,416

⁽¹⁾ Related to deferred tax assets that would only be realizable upon the generation of net income in certain foreign jurisdictions.

The Company’s Israeli subsidiary’s tax-exempt profit from Benefited Enterprises (as defined in note 23.j) is permanently reinvested, Therefore, deferred taxes have not been provided for such tax-exempt income.

The Company may incur additional tax liability in the event of intercompany dividend distributions by some of its subsidiaries. Such additional tax liability in respect of these subsidiaries has not been provided for in the Financial Statements as the Company’s management and the Board of Directors has determined that the Company intends to reinvest earnings of its subsidiaries indefinitely.

e. Uncertain tax positions are comprised as follows:

	December 31,
	2022		2021			2020
Balance, at the beginning of the period	$	2,192	$	10,564		$	9,532
Increases related to current year tax positions		564		635			757
Increase for tax positions related to prior years		-		-			275
Decreases related to prior year tax positions		-		(9,007	)		-
Balance, at end of the period	$	2,756	$	2,192		$	10,564

The total amount of gross unrecognized tax benefits above would affect the Company's effective tax rate, if recognized.

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 not material as of December 31, 2022, 2021 and 2020.

It is reasonably possible that the Company’s gross unrecognized tax benefits will decrease by an insignificant amount in the next 12 months, primarily due to the lapse of the statute of limitations.

f. Income before income taxes are comprised as follows:

	Year ended December 31,
	2022		2021		2020
Domestic	$	47,324	$	13,659	$	33,909
Foreign		129,831		173,565		129,757
Income before income taxes	$	177,155	$	187,224	$	163,666

g. Income taxes (tax benefit) are comprised as follows:

	Year ended December 31,
	2022			2021			2020
Current taxes:
Domestic	$	56,957		$	(7,872	)	$	1,842
Foreign		37,473			37,564			24,936
Total current taxes		94,430			29,692			26,778
Deferred taxes:
Domestic		(8,954	)		(3,682	)		2,794
Foreign		(2,100	)		(7,956	)		(6,228	)
Total deferred taxes		(11,054	)		(11,638	)		(3,434	)
Income taxes, net	$	83,376		$	18,054		$	23,344

h. Reconciliation of theoretical tax expense to actual tax expense:

The differences between the statutory tax rate of the Company and the effective tax rate are result of a variety of factors, including different effective tax rates applicable to non-US subsidiaries that have tax rates different than the Company tax rate, tax benefits relating to stock-based compensation and adjustments to valuation allowances on deferred tax assets on such subsidiaries.

A reconciliation between the theoretical tax expense and the actual tax expense as reported in the consolidated statements of income is as follows:

	Year ended December 31,
	2022			2021			2020
Statutory tax rate		21	%		21	%		21	%
Effect of:
Income tax at rate other than the U.S. statutory tax rate		(10.8	)%		(7.4	)%		(6.9	)%
Losses and timing differences for which valuation allowance was provided		5.2	%		2.7	%		4.4	%
Prior year income taxes (benefit)		2.9	%		(4.4	)%		(0.4	)%
R&D Capitalization and other effects of TCJA		18.9	%		0.1	%		-	%
Disallowable and allowable deductions		13.2	%		2.0	%		(2.6	)%
Other individually immaterial income tax items, net		(3.3	)%		(4.4	)%		(1.3	)%
Effective tax rate		47.1	%		9.6	%		14.2	%

i. Tax assessments:

The Israeli tax authorities issued a tax order for tax year 2016 and tax assessments for tax years 2017 and 2018 against the Company’s Israeli subsidiary, challenging the subsidiary's positions on several issues. The Israeli subsidiary has protested the order before the Central District Court in Israel and appealed the tax assessments.

The Company believes it has adequately provided for these items, however adverse results could have a material impact on the Company’s financial statements.

As of December 31, 2022, the Company and certain of its subsidiaries filed U.S. federal and various state and foreign income tax returns. The statute of limitations relating to the consolidated U.S. federal income tax return is closed for all tax years up to and including 2018.

The statute of limitations related to tax returns of the Company’s Israeli subsidiary for all tax years up to and including 2015 has lapsed.

The statute of limitations related to tax returns of the Company’s other subsidiaries has lapsed for part of the tax years, which differs between the different subsidiaries.

j.	Tax benefits for Israeli companies under the Law for the Encouragement of Capital Investments, 1959 (the “Investments Law”):

The Israeli subsidiary elected tax year 2012 as a "Year of Election" for “Benefited Enterprise” status under the Investments Law. According to the Investments Law, the Israeli subsidiary elected to participate in the alternative benefits program which provides certain benefits, including tax exemptions and reduced tax rates (which depend on, inter alia, the geographic location in Israel). Income not eligible for Benefited Enterprise benefits is taxed at a regular corporate tax rate.

Upon meeting the requirements under the Investments Law, undistributed income derived from Benefited Enterprise from productive activity will be exempt from tax for two years from the year in which the Israeli subsidiary first has taxable income (“exempt period”), provided that 12 years have not passed from the beginning of the year of election.

On October 24, 2018, the Company’s Israeli subsidiary received an approval from the Israeli Tax Authorities confirming the applicability of the two-year tax exemption as provided in the Investments Law until December 31, 2018. As of December 31, 2018, approximately $289,900 was derived from tax exempt profits earned by the Israeli subsidiary “Benefited Enterprises” in the two tax years exempt period, tax years 2017 - 2018. The Company has determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by the Israeli subsidiary. Accordingly, no provision for deferred income taxes has been provided on income attributable to the Israeli subsidiary “Benefited Enterprises” as such income is essentially permanently reinvested.

If the Israeli subsidiary’s retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate which depends on the foreign ownership in each tax year.

Through December 31, 2022, the Israeli subsidiary had generated income under the provision of the Investments Law.

Pursuant to amendment 73 to the Investments Law (the “2017 Amendment"), a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).

The 2017 Amendment also prescribes special tax tracks for preferred technological enterprises (“PTE”), which are subject to rules that were issued by the Ministry of Finance.

On June 14, 2017, the Encouragement of Capital Investments Regulations (Preferred Technological Income and Capital Gain for Technological Enterprise), 2017 (the “Regulations”) were published.

The Regulations describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE regime. According to these regulations, a company that complies with the terms under the PTE regime may be entitled to certain tax benefits with respect to income generated during the company’s regular course of business and derived from the preferred intangible asset, excluding income derived from intangible assets used for marketing and income attributed to production activity.

A PTE, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property, or 6% if its annual revenues exceed NIS 10 billion. The Israeli subsidiary notified the ITA of its election to implement the PTE with effect from January 1, 2019, and its PTE income was subject to a 12% tax rate in the years 2019-2021, and in 2022 to a 6% tax rate as the group surpassed NIS 10 billion revenues threshold.

Tax Benefits for Research and Development:

Israeli tax law (section 20A to the Israeli Tax Ordinance (New Version), 1961) allows, a tax deduction for research and development expenses, including capital expenses, for the year in which they are paid. Such expenses must relate to scientific research in industry, agriculture, transportation or energy, and must be approved by the relevant Israeli government ministry, determined by the field of research. As for expenses incurred in scientific research that is not approved by the relevant Israeli government ministry, they will be deductible over a three-year period starting from the tax year in which they are paid. The Company’s Israeli subsidiary intends to submit a formal request to the relevant Israeli government ministry in order to obtain such approval for 2019 - 2021.

k. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969:

The Company’s Israeli subsidiary claims currently to be qualified as ‘industrial company’ as defined by this law and as such, is entitled to certain tax benefits, consisting mainly of accelerated depreciation and amortization of patents and certain other intangible property.

- 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
-SubTopic 10
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-Paragraph 21
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: 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 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FINANCIAL (EXPENSES) INCOME, NET

12 Months Ended

Dec. 31, 2022

Nonoperating Income (Expense) [Abstract]

FINANCIAL EXPENSES (INCOME), NET

NOTE 24: FINANCIAL INCOME (EXPENSE), NET

	Year ended December 31,
	2022			2021			2020
Exchange rate (loss) gain, net	$	(1,547	)	$	(22,493	)	$	33,065
Interest income on marketable securities		10,551			2,973			3,750
Convertible note		(2,916	)		(2,903	)		(3,185	)
Hedging		4,716			9,417			(4,013	)
Financing component expenses related to ASC 606		(7,038	)		(5,771	)		(4,887	)
Bank charges		(1,584	)		(1,991	)		(2,048	)
Interest income, net		1,402			183			67
Other		(268	)		670			(1,644	)
Total financial income (expenses), net	$	3,316		$	(19,915	)	$	21,105

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT, GEOGRAPHIC, MAJOR CUSTOMER AND PRODUCT INFORMATION

NOTE 25: SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

a. Segment Information:

Following the discontinuation of Critical Power in June 2022, the Company operates in four different operating segments: Solar, Energy Storage, e-Mobility and Automation Machines.

The Company's Chief Executive Officer, who is the chief operating decision maker (“CODM”), makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the operating segments.

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 and impairment of purchased intangible assets, stock based compensation expenses and certain other items.

The Company manages its assets on a group basis, not by segments, as many of its assets are shared or co-mingled. The Company’s CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.

The Company identified one operating segment as reportable – the Solar segment. The other operating segments are insignificant individually and therefore their results are presented together under “All other”.

The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and a residential storage solution, compatible with the Company’s energy hub inverter, intended to store and supply power for back-up and to maximize self-consumption. The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries and cloud‑based monitoring platform.

The “All other” category includes the design, development, manufacturing and sales of energy storage products, e-Mobility products, UPS products and automated machines

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

	Year ended December 31,
	2022					2021					2020
	Solar		All other			Solar		All other			Solar		All other
Revenues	$	2,921,175	$	188,490		$	1,787,280	$	176,167		$	1,357,261	$	102,804
Cost of revenues		2,050,147		181,923			1,136,896		169,582			882,420		95,280
Gross profit		871,028		6,567			650,384		6,585			474,841		7,524
Research and development		196,381		29,016			143,173		30,506			110,567		25,417
Sales and marketing		118,154		9,687			85,309		9,930			66,823		8,562
General and administrative		69,631		13,001			53,156		13,536			41,723		10,389
Segments profit (loss)	$	486,862	$	(45,137	)	$	368,746	$	(47,387	)	$	255,728	$	(36,844	)

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

	Year ended December 31,
	2022		2021		2020
Solar segment revenues	$	2,921,175	$	1,787,280	$	1,357,261
All other segment revenues		188,490		176,167		102,804
Revenues from financing component		614		418		-
Inter-segment revenues		-		-		(794	)
Consolidated revenues	$	3,110,279	$	1,963,865	$	1,459,271

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

	Year ended December 31,
	2022			2021			2020
Solar segment profit	$	486,862		$	368,746		$	255,728
All other segment loss		(45,137	)		(47,387	)		(36,844	)
Segments operating profit		441,725			321,359			218,884
Amounts not allocated to segments:
Stock based compensation expenses		(145,539	)		(102,593	)		(67,309	)
Amortization and depreciation of acquired assets		(9,478	)		(10,812	)		(9,336	)
Impairment of goodwill and long-lived assets		(119,141	)		-			-
Disposal of assets related to Critical Power		(4,314	)		-			-
Other unallocated income (expenses), net		2,867			(815	)		322
Consolidated operating income	$	166,120		$	207,139		$	142,561

b. Revenues by geographic, based on Customers’ location:

	Year ended December 31,
		2022		2021		2020
United States	$	1,133,798	$	786,019	$	613,090
Europe(*)		528,197		297,684		233,583
Germany		449,160		191,066		118,350
Netherlands		382,226		222,103		199,498
Italy		330,565		181,644		74,598
Rest of the world		286,333		285,349		220,152
Total revenues	$	3,110,279	$	1,963,865	$	1,459,271

(*) Except for Germany, Netherlands and Italy

c. Revenues by type:

	Year ended December 31,
	2022		2021		2020
Inverters	$	1,137,142	$	828,101	$	641,799
Optimizers		1,135,040		828,542		625,465
Residential batteries		429,119		19,531		-
e-Mobility components and telematics		94,446		68,946		13,399
Communication		72,812		24,111		41,771
Others		241,720		194,634		136,837
Total revenues	$	3,110,279	$	1,963,865	$	1,459,271

d. Long-lived assets by geographic location:

	As of December 31,
	2022		2021
Israel	$	333,740	$	271,700
Korea		201,731		118,209
China		34,230		30,412
Europe		21,282		21,547
Other		15,740		15,649
Total long-lived assets^(*)	$	606,723	$	457,517

(*) Long-lived assets are comprised of property and equipment, net and Operating lease right-of-use assets, net.

- 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 https://asc.fasb.org/extlink&oid=126901519&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
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 26: SUBSEQUENT EVENTS In January 2023, the Company entered into an agreement to acquire Hark Systems Ltd. ("Hark"), a UK-based energy IoT company for the C&I sector. Hark's platform will enable the Company to grow its commercial and industrial energy management portfolio and offer additional services to its C&I customers. The acquisition is still subject to certain customary closing conditions and regulatory approvals and is expected to close during the second quarter of 2023.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Principles of consolidation

a.Principles of consolidation:

Use of estimates

b.Use of estimates:

Financial statements in U.S. dollars

c.Financial statements in U.S. dollars:

Cash and cash equivalents

d.Cash and cash equivalents:

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired.

Short-term bank deposits

e.Short-term bank deposits:

Restricted bank deposits

f.Restricted bank deposits:

Marketable Securities

g.Marketable Securities:

The Company has not recorded credit losses for the years ended December 31, 2022, 2021 and 2020.

Investments in privately-held companies

h.Investment in privately-held companies:

The Company adjusts the carrying value of its investments to fair value upon observable transactions for identical or similar investments of the same issuer.

All gains and losses on investments in privately-held companies, realized and unrealized, are recognized in other income.

Trade receivables

i.Trade receivables:

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected:

	Year Ended December 31, 2022
Balance, at beginning of the period	$	2,626
Increase in provision for expected credit losses		679
Amounts written off charged against the allowance and others		(103	)
Balance, at end of the period	$	3,202

Inventories

j.Inventories:

Property, plant and equipment

k.Property, plant and equipment:

		%
Buildings and plants		2.5-5.7 (mainly 2.5)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		9-33.3 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

Government assistance

l. Government assistance

The Company recorded reduction of property, plant and equipment in the amount of $7,359 and $4,842 for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, the Company has a right to receive of $9,233 that has yet to be paid which was recorded under “Prepaid expenses and other current assets”.

Leases

m.Leases:

Business Combination

n.Business Combination:

Intangible Assets

o.Intangible Assets:

Impairment of long-lived assets

p.Impairment of long-lived assets:

Goodwill

q.Goodwill:

The goodwill impairment test is performed according to the following principles:

(1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.

(2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized (see Note 9).

For the year ended December 31, 2022, the Company recorded impairment charges of goodwill in the amount of $90,104.

For the years ended December 31, 2021 and 2020, the Company did not record any impairment charges.

Cloud computing arrangements

r.Cloud computing arrangements:

Severance pay

s.Severance pay:

If applicable, severance costs are recorded in each entity in accordance with local laws and regulations.

For the years ended December 31, 2022, 2021 and 2020, the Company recorded $17,202, $14,231 and $10,598 in severance expenses related to its employees, respectively.

Derivatives and Hedging

t.Derivatives and Hedging:

The Company classifies cash flows related to its hedging as operating activities in its consolidated statement of cash flows.

Revenue recognition

u.Revenue recognition:

(1)Identify the contract with a customer

(2)Identify the performance obligations in the contract

(3)Determine the transaction price

As of December 31, 2022, the Company has not provided payment terms of more than a year.

(4)Allocate the transaction price to the performance obligations in the contract

The Company performs an allocation of the transaction price to each separate performance obligation, in proportion to their relative standalone selling prices.

(5)Recognize revenue when a performance obligation is satisfied

Cost of revenues

v.Cost of revenues:

Shipping and handling costs

Warranty obligations

w.Warranty obligations:

The Company performs accelerated life cycle testing, which simulates the service life of the product in a short period of time.

Warranty obligations are classified as short-term and long-term obligations based on the period in which the warranty is expected to be claimed.

Convertible senior notes

x.Convertible senior notes:

Advertising costs

y.Advertising costs

Research and development costs

z.Research and development costs:

Research and development costs, are charged to the consolidated statement of income as incurred.

Concentrations of credit risks

aa.Concentrations of credit risks:

The trade receivables of the Company derive from sales to customers located primarily in the United States and Europe.

Concentrations of supply risks

ab.Concentrations of supply risks:

As of December 31, 2022 and 2021, two contract manufacturers collectively accounted for 34.3% and 27.9% of the Company’s total trade payables, net, respectively.

Fair value of financial instruments

ac.Fair value of financial instruments:

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Assets measured at fair value on a recurring basis as of December 31, 2022 and 2021 are comprised of money market funds, derivative instruments and marketable securities (see Note 12).

A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1 -Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 -Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 -Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Stock-based compensation

ad.Stock-based compensation:

The fair value for options granted to employees and ESPP in the years ended December 31, 2022, 2021 and 2020, is estimated at the date of grant using the following assumptions:

	Year ended December 31,
	2022	2021	2020
Employee Stock Options ⁽¹⁾
Risk-free interest	-	0.43%	1.73%
Dividend yields	-	0%	0%
Volatility	-	60.74%	58.98%
Expected option term in years	-	5.48	6.00
Estimated forfeiture rate	-	0%	0%
ESPP
Risk-free interest	1.64% - 4.70%	0.03% - 0.10%	0.09% - 1.63%
Dividend yields	0%	0%	0%
Volatility	71.28% - 71.97%	48.39% - 76.05%	55.95% - 92.57%
Expected term	6 months	6 months	6 months
PSU
Risk-free interest	1.77%	-	-
Dividend yields	0%	-	-
Volatility	67.42%	-	-
Expected term	1 - 3 years	-	-

(1) No new options were granted in 2022.

Earnings per share

ae.Earnings per share

Basic net EPS is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period.

Income taxes

af.Income taxes:

New accounting pronouncements not yet effective

ag.New accounting pronouncements not yet effective:

Recently issued and adopted pronouncements

ah.Recently issued and adopted pronouncements:

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

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

Schedule of Allowance for Credit Losses

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected:

	Year Ended December 31, 2022
Balance, at beginning of the period	$	2,626
Increase in provision for expected credit losses		679
Amounts written off charged against the allowance and others		(103	)
Balance, at end of the period	$	3,202

Schedule of Estimated Useful Lives of Property and Equipment

		%
Buildings and plants		2.5-5.7 (mainly 2.5)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		9-33.3 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

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

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

Schedule of Assumptions Used to Estimate Fair Value of Stock Options and Warrants

	Year ended December 31,
	2022	2021	2020
Employee Stock Options ⁽¹⁾
Risk-free interest	-	0.43%	1.73%
Dividend yields	-	0%	0%
Volatility	-	60.74%	58.98%
Expected option term in years	-	5.48	6.00
Estimated forfeiture rate	-	0%	0%
ESPP
Risk-free interest	1.64% - 4.70%	0.03% - 0.10%	0.09% - 1.63%
Dividend yields	0%	0%	0%
Volatility	71.28% - 71.97%	48.39% - 76.05%	55.95% - 92.57%
Expected term	6 months	6 months	6 months
PSU
Risk-free interest	1.77%	-	-
Dividend yields	0%	-	-
Volatility	67.42%	-	-
Expected term	1 - 3 years	-	-

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2022

Marketable Securities Tables Abstract

Schedule of Amortized Cost of Available-For-Sale Marketable Securities

The following is a summary of available-for-sale marketable securities at December 31, 2022:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	222,482	$	-	$	(4,657	)	$	217,825
Governmental bonds		23,845		-		(553	)		23,292
		246,327		-		(5,210	)		241,117
Available for-sale – matures after one year:
Corporate bonds		657,238		80		(26,460	)		630,858
Governmental bonds		15,250		-		(617	)		14,633
		672,488		80		(27,077	)		645,491
Total	$	918,815	$	80	$	(32,287	)	$	886,608

The following is a summary of available-for-sale marketable securities at December 31, 2021:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	160,462	$	23	$	(320	)	$	160,165
Governmental bonds		7,576		-		(13	)		7,563
		168,038		23		(333	)		167,728
Available for-sale – matures after one year:
Corporate bonds		474,412		9		(5,580	)		468,841
Governmental bonds		13,506		-		(119	)		13,387
		487,918		9		(5,699	)		482,228
Total	$	655,956	$	32	$	(6,032	)	$	649,956

INVENTORIES, NET (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

	As of December 31,
	2022		2021
Raw materials	$	503,257	$	247,386
Work in process		23,407		13,863
Finished goods		202,537		118,894
	$	729,201	$	380,143

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

	As of December 31,
	2022		2021
Vendor non-trade receivables (*)	$	147,597	$	71,041
Government authorities		55,670		63,440
Prepaid expenses and other		37,815		42,511
	$	241,082	$	176,992

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

	As of December 31,
	2022		2021
Cost:
Land	$	13,070	$	13,829
Buildings and plants		152,218		62,519
Computers and peripheral equipment		46,376		44,960
Office furniture and equipment		10,911		10,772
Laboratory and testing equipment		58,454		41,365
Machinery and equipment		315,155		201,406
Leasehold improvements		85,147		73,991
Assets under construction and payments on account		47,168		112,037
Gross property, plant and equipment		728,499		560,879
Less - accumulated depreciation		184,530		150,500
Total property, plant and equipment, net	$	543,969	$	410,379

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Lessee Disclosure [Abstract]

Schedule of Lease-related Assets and Liabilities

The following table summarizes the Company’s lease-related assets and liabilities recorded in the consolidated balance sheets:

Description	Classification on the consolidated Balance Sheet	2022		2021
Assets:
Operating lease assets, net of lease incentive obligation	Operating lease right-of use assets, net	$	62,754	$	47,137
Finance lease assets	Property, plant and equipment, net		52,934		41,758
Total lease assets		$	115,688	$	88,895
Liabilities:
Operating leases short term	Accrued expenses and other current liabilities	$	16,183	$	12,728
Finance leases short term	Accrued expenses and other current liabilities		3,263		1,875
Operating leases long term	Operating lease liabilities		46,256		38,912
Finance leases long term	Finance lease liabilities		45,385		40,508
Total lease liabilities		$	111,087	$	94,023

Schedule of Information Related to Operating Finance Leases

The following table presents certain information related to the operating and finance leases:

	Year ended December 31,
	2022			2021
Finance leases:
Finance lease cost	$	4,196		$	2,065
Weighted average remaining lease term in years		16.28			16.43
Weighted average annual discount rate		2.30	%		1.93	%
Operating leases:
Operating lease cost	$	15,901		$	14,890
Weighted average remaining lease term in years		8.33			10.25
Weighted average annual discount rate		2.17	%		1.68	%

Schedule of Supplemental Cash Flow Information Related to Leases

The following table presents supplemental cash flows information related to the lease costs for operating and finance leases:

	Year ended December 31,
	2022		2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$	16,343	$	14,890
Operating cash flows for finance leases	$	420	$	523
Financing cash flows for finance leases	$	2,834	$	1,293

Schedule of Operating and Finance lease liabilities

	Operating Leases			Finance Leases
2023	$	16,330		$	3,298
2024		14,746			3,369
2025		7,338			3,539
2026		4,246			3,539
2027		3,285			4,083
Thereafter		22,085			40,445
Total lease payments	$	68,030		$	58,273
Less amount of lease payments representing interest		(5,591	)		(9,625	)
Present value of future lease payments	$	62,439		$	48,648
Less current lease liabilities		(16,183	)		(3,263	)
Long-term lease liabilities	$	46,256		$	45,385

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

	As of December 31,
	2022			2021
Intangible assets with finite lives:
Current Technology	$	29,196		$	74,976
Customer relationships		2,958			3,946
Trade names		3,287			3,929
Assembled workforce		3,575			3,575
Patents		1,400			1,400
Gross intangible assets		40,416			87,826
Less - accumulated amortization		(20,487	)		(28,965	)
Total intangible assets, net	$	19,929		$	58,861

Schedule of Future Amortization Expense

2023	$	5,736
2024		5,717
2025		3,890
2026		3,826
2027		558
2028 and thereafter		202
	$	19,929

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill activity

	Solar			All other			Total
Goodwill at December 31, 2020	$	33,255		$	107,224		$	140,479
Changes during the year:
Foreign currency adjustments		(2,750	)		(8,100	)		(10,850	)
Goodwill at December 31, 2021		30,505			99,124			129,629
Changes during the year:
Foreign currency adjustments		(1,737	)		(6,599	)		(8,336	)
Accumulated impairment losses		-			(90,104	)		(90,104	)
Goodwill at December 31, 2022	$	28,768		$	2,421		$	31,189

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair values of outstanding derivative instruments

	Balance sheet location	December 31, 2022			December 31, 2021
Derivative assets of options and forward contracts:
Designated cash flow hedges	Prepaid expenses and other current assets	$	-		$	992
Non-designated hedges	Prepaid expenses and other current assets		-			3,017
Total derivative assets		$	-		$	4,009
Derivative liabilities of options and forward contracts:
Designated cash flow hedges	Accrued expenses and other current liabilities	$	(1,874	)	$	-
Non-designated hedges	Accrued expenses and other current liabilities		-			(169	)
Total derivative liabilities		$	(1,874	)	$	(169	)

Schedule of gains (losses) on derivative instruments recognized in our income statements

	Year ended December 31,
	2022		2021			2020			Affected line item
Foreign exchange contracts
Non Designated Hedging Instruments	$	4,716		$	9,417	$	(4,013	)	Financial income (expense), net

Schedule of gains (losses) on derivative instruments recognized in the consolidated comprehensive income statements

	Year ended December 31
	2022			2021		2020
Foreign exchange contracts:
Designated Hedging Instruments	$	(8,965	)	$	3,289	$	966

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Measurements Tables Abstract

Schedule of Assets and Liabilities Measured at Fair Value

	Fair Value Hierarchy	Fair value measurements as of
Description	Fair Value Hierarchy	December 31, 2022		December 31, 2021
Assets:
Cash and cash equivalents:
Cash	Level 1	$	695,004	$	508,389
Money market mutual funds	Level 1	$	25,149	$	21,680
Deposits	Level 1	$	62,959	$	20
Derivative instruments	Level 2	$	-	$	4,009
Short-term marketable securities:
Corporate bonds	Level 2	$	217,825	$	160,165
Governmental bonds	Level 2	$	23,292	$	7,563
Long-term marketable securities:
Corporate bonds	Level 2	$	630,858	$	468,841
Governmental bonds	Level 2	$	14,633	$	13,387
Liabilities:
Derivative instruments	Level 2	$	(1,874)	$	(169)

- 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

WARRANTY OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

Schedule of Warranty Obligations

	December 31,
	2022			2021			2020
Balance, at the beginning of the period	$	265,160		$	204,994		$	172,563
Additions and adjustments to cost of revenues		239,401			150,684			102,832
Usage and current warranty expenses		(119,504	)		(90,518	)		(70,401	)
Balance, at end of the period		385,057			265,160			204,994
Less current portion		(103,975	)		(71,480	)		(62,614	)
Long term portion	$	281,082		$	193,680		$	142,380

DEFERRED REVENUES (Tables)

12 Months Ended

Dec. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Schedule of Balances of Deferred Revenues

	December 31,
	2022			2021			2020
Balance, at the beginning of the period	$	169,345		$	140,020		$	160,797
Revenue recognized		(23,017	)		(26,093	)		(72,046	)
Increase in deferred revenues and customer advances		67,249			55,418			51,269
Balance, at the end of the period		213,577			169,345			140,020
Less current portion		(26,641	)		(17,789	)		(24,648	)
Long term portion	$	186,936		$	151,556		$	115,372

Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations

2023	$	26,641
2024		10,891
2025		10,160
2026		9,691
2027		7,565
Thereafter		148,629
Total deferred revenues	$	213,577

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

	As of December 31,
	2022		2021
Accrued expenses	$	117,638	$	57,158
Government authorities		67,514		22,631
Operating lease liabilities		16,183		12,728
Accrual for sales incentives		6,790		3,048
Provision for legal claims		43		11,622
Other		5,944		2,192
Total accrued expenses and other current liabilities	$	214,112	$	109,379

CONVERTIBLE SENIOR NOTES (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

	As of December 31,
	2022			2021
Liability:
Principal	$	632,500		$	632,500
Unamortized issuance costs		(8,049	)		(10,965	)
Net carrying amount	$	624,451		$	621,535

OTHER LONG TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Other Long Term Liabilities

	As of December 31,
	2022		2021
Tax liabilities	$	3,830	$	5,105
Accrued severance pay		9,848		10,632
Other		2,078		3,805
	$	15,756	$	19,542

STOCK CAPITAL (Tables)

12 Months Ended

Dec. 31, 2022

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

Schedule of activity in the share options granted to employees and members of board of directors

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2021		474,280		$	44.68		5.22	$	112,479
Exercised		(135,008	)		29.77		-		-
Forfeited or expired		(243	)		5.01		-		-
Outstanding as of December 31, 2022		339,029		$	50.64		4.86	$	79,414
Vested and expected to vest as of December 31, 2022		338,345		$	50.45		4.85	$	79,315
Exercisable as of December 31, 2022		300,865		$	38.52		4.58	$	73,875

Schedule of RSU activity

	Number of RSUs			Weighted average grant date fair value
Unvested as of January 1, 2022		1,759,972		$	189.25
Granted		683,548			266.06
Vested		(805,872	)		131.79
Forfeited		(149,133	)		214.65
Unvested as of December 31, 2022		1,488,515		$	232.05

Schedule of recognized stock-based compensation expenses

	Year ended December 31,
	2022		2021		2020
Cost of revenues	$	21,818	$	18,743	$	11,082
Research and development		63,211		45,424		27,048
Selling and marketing		31,017		22,834		19,413
General and administrative		29,493		15,592		9,766
Total stock-based compensation expenses	$	145,539	$	102,593	$	67,309

Option [Member] | Employees and members of board of directors

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

Schedule of RSU activity

	Number of PSUs		Weighted average grant date fair value
Unvested as of January 1, 2022		108,595	$	296.40
Granted		40,637		294.48
Unvested as of December 31, 2022		149,232	$	295.88

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2022

Accumulated Other Comprehensive Income Loss [Abstract]

Schedule of Changes in AOCI

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature			Unrealized gains (losses) on foreign currency translation			Total
Beginning balance as of January 1, 2020	$	264		$	—		$	—		$	(2,073	)	$	(1,809	)
Revaluation		45			1,101			—			5,690			6,836
Tax on revaluation		(69	)		(135	)					—			(204	)
Other comprehensive income (loss) before reclassifications		(24	)		966			—			5,690			6,632
Reclassification		—			(1,101	)		—			—			(1,101	)
Tax on reclassification		—			135			—			—			135
Gains reclassified from accumulated other comprehensive income		—			(966	)		—			—			(966	)
Net current period other comprehensive income (loss)		(24	)		—			—			5,690			5,666
Ending balance as of December 31, 2020	$	240		$	—		$	—		$	3,617		$	3,857
Revaluation		(6,283	)		3,735			(17,420	)		(9,681	)		(29,649	)
Tax on revaluation		1,346			(446	)		—			—			900
Other comprehensive income (loss) before reclassifications		(4,937	)		3,289			(17,420	)		(9,681	)		(28,749	)
Reclassification		(16	)		(2,742	)		—			—			(2,758	)
Tax on reclassification		4			327			—			—			331
Gains reclassified from accumulated other comprehensive income		(12	)		(2,415	)		—			—			(2,427	)
Net current period other comprehensive income (loss)		(4,949	)		874			(17,420	)		(9,681	)		(31,176	)
Ending balance as of December 31, 2021	$	(4,709	)	$	874		$	(17,420	)	$	(6,064	)	$	(27,319	)
Revaluation		(26,944	)		(9,890	)		(20,540	)		(1,875	)		(59,249	)
Tax on revaluation		5,583			925			—			—			6,508
Other comprehensive loss before reclassifications		(21,361	)		(8,965	)		(20,540	)		(1,875	)		(52,741	)
Reclassification		736			7,024			—			—			7,760
Tax on reclassification		(115	)		(694	)		—			—			(809	)
Losses reclassified from accumulated other comprehensive income		621			6,330			—			—			6,951
Net current period other comprehensive loss		(20,740	)		(2,635	)		(20,540	)		(1,875	)		(45,790	)
Ending balance as of December 31, 2022	$	(25,449	)	$	(1,761	)	$	(37,960	)	$	(7,939	)	$	(73,109	)

Schedule of Reclassifications out of AOCI

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Statement of Income
		2022			2021			2020
Unrealized gains (losses) on available-for-sale marketable securities
	$	(736	)	$	16		$	-		Financial income (expenses), net
		115			(4	)		-		Income taxes
	$	(621	)	$	12		$	-		Total, net of income taxes
Unrealized gains (losses) on cash flow hedges
		(801	)		333			189		Cost of revenues
		(4,142	)		1,645			623		Research and development
		(959	)		334			136		Sales and marketing
		(1,122	)		430			153		General and administrative
	$	(7,024	)	$	2,742		$	1,101		Total, before income taxes
		694			(327	)		(135	)	Income taxes
		(6,330	)		2,415			966		Total, net of income taxes
Total reclassifications for the period	$	(6,951	)	$	2,427		$	966

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

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

The following table presents the computation of basic and diluted EPS attributable to SolarEdge Technologies Inc.:

	Year ended December 31,
	2022		2021		2020
Basic EPS:
Numerator:
Net income	$	93,779	$	169,170	$	140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic		55,087,770		52,202,182		50,217,330
Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	93,779	$	169,170	$	140,322
Notes due 2025		2,203		2,134		-
Net income attributable to common stock, diluted	$	95,982	$	171,304	$	140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic		55,087,770		52,202,182		50,217,330
Notes due 2025		2,276,818		2,276,818		-
Effect of stock-based awards		736,061		1,492,030		2,578,146
Shares used in computing net earnings per share of common stock, diluted		58,100,649		55,971,030		52,795,476

Shares excluded from the calculation of diluted net EPS due to their anti-dilutive effect		207,980		132,133		715,510

GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET (Tables)

12 Months Ended

Dec. 31, 2022

Other Operating Income Expenses [Abstract]

Schedule of goodwill impairment and other operating expenses income

	Year ended December 31,
	2022			2021			2020
Impairment of goodwill ¹	$	90,104		$	-		$	-
Impairment of long-lived assets ²		29,037			2,209			1,471
Sale of assets		(2,603	)		-			-
SolarEdge Korea (formerly Kokam) purchase escrow ³		-			(859	)		(4,900	)
Total goodwill impairment and other operating expenses (income)	$	116,538		$	1,350		$	(3,429	)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of deferred tax liabilities and assets

Significant components of the Company’s deferred tax liabilities and assets are as follows:

	December 31,
	2022			2021
Deferred tax assets, net:
Research and Development carryforward expenses	$	9,335		$	2,479
Carryforward tax losses⁽¹⁾		19,916			19,635
Stock based compensation expenses		9,863			12,140
Deferred revenue		8,954			8,078
Lease liabilities		6,520			11,168
Inventory Impairment		627			1,326
Allowance and other reserves		30,242			10,229
Total Gross deferred tax assets, net	$	85,457		$	65,055
Less, Valuation Allowance		(23,777	)		(14,648	)
Total deferred tax assets, net	$	61,680		$	50,407
Deferred tax liabilities, net:
Intercompany transactions	$	(6,292	)	$	(6,099	)
Right-of-use assets		(6,618	)		(10,486	)
Purchase price allocation		(4,617	)		(6,406	)
Total deferred tax liabilities, net	$	(17,527	)	$	(22,991	)
Recorded as:
Deferred tax assets, net	$	44,153		$	27,572
Deferred tax liabilities, net		-			(156	)
Net deferred tax assets	$	44,153		$	27,416

Schedule of Uncertain Tax Positions

e. Uncertain tax positions are comprised as follows:

	December 31,
	2022		2021			2020
Balance, at the beginning of the period	$	2,192	$	10,564		$	9,532
Increases related to current year tax positions		564		635			757
Increase for tax positions related to prior years		-		-			275
Decreases related to prior year tax positions		-		(9,007	)		-
Balance, at end of the period	$	2,756	$	2,192		$	10,564

Schedule of Income (Loss) Before Taxes

f. Income before income taxes are comprised as follows:

	Year ended December 31,
	2022		2021		2020
Domestic	$	47,324	$	13,659	$	33,909
Foreign		129,831		173,565		129,757
Income before income taxes	$	177,155	$	187,224	$	163,666

Schedule of Income taxes

g. Income taxes (tax benefit) are comprised as follows:

	Year ended December 31,
	2022			2021			2020
Current taxes:
Domestic	$	56,957		$	(7,872	)	$	1,842
Foreign		37,473			37,564			24,936
Total current taxes		94,430			29,692			26,778
Deferred taxes:
Domestic		(8,954	)		(3,682	)		2,794
Foreign		(2,100	)		(7,956	)		(6,228	)
Total deferred taxes		(11,054	)		(11,638	)		(3,434	)
Income taxes, net	$	83,376		$	18,054		$	23,344

Schedule of Reconciliation Between the Theoretical Tax Expense and the Actual Tax Expense (Benefit)

A reconciliation between the theoretical tax expense and the actual tax expense as reported in the consolidated statements of income is as follows:

	Year ended December 31,
	2022			2021			2020
Statutory tax rate		21	%		21	%		21	%
Effect of:
Income tax at rate other than the U.S. statutory tax rate		(10.8	)%		(7.4	)%		(6.9	)%
Losses and timing differences for which valuation allowance was provided		5.2	%		2.7	%		4.4	%
Prior year income taxes (benefit)		2.9	%		(4.4	)%		(0.4	)%
R&D Capitalization and other effects of TCJA		18.9	%		0.1	%		-	%
Disallowable and allowable deductions		13.2	%		2.0	%		(2.6	)%
Other individually immaterial income tax items, net		(3.3	)%		(4.4	)%		(1.3	)%
Effective tax rate		47.1	%		9.6	%		14.2	%

FINANCIAL (EXPENSES) INCOME, NET (Tables)

12 Months Ended

Dec. 31, 2022

Nonoperating Income (Expense) [Abstract]

Schedule of Financial Expenses (Income), Net

	Year ended December 31,
	2022			2021			2020
Exchange rate (loss) gain, net	$	(1,547	)	$	(22,493	)	$	33,065
Interest income on marketable securities		10,551			2,973			3,750
Convertible note		(2,916	)		(2,903	)		(3,185	)
Hedging		4,716			9,417			(4,013	)
Financing component expenses related to ASC 606		(7,038	)		(5,771	)		(4,887	)
Bank charges		(1,584	)		(1,991	)		(2,048	)
Interest income, net		1,402			183			67
Other		(268	)		670			(1,644	)
Total financial income (expenses), net	$	3,316		$	(19,915	)	$	21,105

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Reportable Segments and Operating Income

The “All other” category includes the design, development, manufacturing and sales of energy storage products, e-Mobility products, UPS products and automated machines

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

	Year ended December 31,
	2022					2021					2020
	Solar		All other			Solar		All other			Solar		All other
Revenues	$	2,921,175	$	188,490		$	1,787,280	$	176,167		$	1,357,261	$	102,804
Cost of revenues		2,050,147		181,923			1,136,896		169,582			882,420		95,280
Gross profit		871,028		6,567			650,384		6,585			474,841		7,524
Research and development		196,381		29,016			143,173		30,506			110,567		25,417
Sales and marketing		118,154		9,687			85,309		9,930			66,823		8,562
General and administrative		69,631		13,001			53,156		13,536			41,723		10,389
Segments profit (loss)	$	486,862	$	(45,137	)	$	368,746	$	(47,387	)	$	255,728	$	(36,844	)

Schedule of Reportable Segments Reconciliation to Consolidated Revenues

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

	Year ended December 31,
	2022		2021		2020
Solar segment revenues	$	2,921,175	$	1,787,280	$	1,357,261
All other segment revenues		188,490		176,167		102,804
Revenues from financing component		614		418		-
Inter-segment revenues		-		-		(794	)
Consolidated revenues	$	3,110,279	$	1,963,865	$	1,459,271

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

	Year ended December 31,
	2022			2021			2020
Solar segment profit	$	486,862		$	368,746		$	255,728
All other segment loss		(45,137	)		(47,387	)		(36,844	)
Segments operating profit		441,725			321,359			218,884
Amounts not allocated to segments:
Stock based compensation expenses		(145,539	)		(102,593	)		(67,309	)
Amortization and depreciation of acquired assets		(9,478	)		(10,812	)		(9,336	)
Impairment of goodwill and long-lived assets		(119,141	)		-			-
Disposal of assets related to Critical Power		(4,314	)		-			-
Other unallocated income (expenses), net		2,867			(815	)		322
Consolidated operating income	$	166,120		$	207,139		$	142,561

Summary of Revenues Within Geographic Areas

b. Revenues by geographic, based on Customers’ location:

	Year ended December 31,
		2022		2021		2020
United States	$	1,133,798	$	786,019	$	613,090
Europe(*)		528,197		297,684		233,583
Germany		449,160		191,066		118,350
Netherlands		382,226		222,103		199,498
Italy		330,565		181,644		74,598
Rest of the world		286,333		285,349		220,152
Total revenues	$	3,110,279	$	1,963,865	$	1,459,271

(*) Except for Germany, Netherlands and Italy

Summary of Revenues By Product Family

c. Revenues by type:

	Year ended December 31,
	2022		2021		2020
Inverters	$	1,137,142	$	828,101	$	641,799
Optimizers		1,135,040		828,542		625,465
Residential batteries		429,119		19,531		-
e-Mobility components and telematics		94,446		68,946		13,399
Communication		72,812		24,111		41,771
Others		241,720		194,634		136,837
Total revenues	$	3,110,279	$	1,963,865	$	1,459,271

Schedule of Long-lived Assets By Geographic Region

d. Long-lived assets by geographic location:

	As of December 31,
	2022		2021
Israel	$	333,740	$	271,700
Korea		201,731		118,209
China		34,230		30,412
Europe		21,282		21,547
Other		15,740		15,649
Total long-lived assets^(*)	$	606,723	$	457,517

(*) Long-lived assets are comprised of property and equipment, net and Operating lease right-of-use assets, net.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Significant Accounting Policies [Line Items]
Reduction of fixed assets	$ 7,359	$ 4,842
Prepaid expenses and other current assets	9,233
Impairment of long-lived assets	29,037	2,209	$ 1,471
Impairment of goodwill	90,104
Capitalized implementation costs related to ERP conversion	3,457
Severance pay
Severance expenses	17,202	14,231	10,598
Shipping and handling costs
Shipping and handling costs	$ 257,753	116,574	101,597
Warranty obligations
Minimum term of warranty obligation for StorEdge products.	10 years
Minimum term of warranty obligations for inverters	12 years
Minimum term of warranty obligations for power optimizers	25 years
Maximum extended product warranty period	25 years
Derivative financial instruments
Cumulative effect of adopting ASU 2020-06 on retained earnings	$ 2,884
Cumulative effect of adopting ASU 2020-06 on additional paid-in capital	36,336
Cumulative effect of adopting ASU 2020-06 on convertible senior notes	45,282
Cumulative effect of adopting ASU 2020-06 on deferred tax liabilities	11,830
Advertising expenses	11,090	6,323	$ 4,199
Accrued Exchange Fee Rebate	$ 176,706	$ 152,717
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Major Customer One [Member]
Derivative financial instruments
Concentration risk percentage	18.50%	30.90%	14.80%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Major Customer One [Member]
Derivative financial instruments
Concentration risk percentage	42.20%	39.30%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Two Contract Manufacturers [Member]
Derivative financial instruments
Concentration risk percentage	34.30%	27.90%
Israeli Ministry Of Economy And Industry [Member] \| Sella One Factory [Member]
Significant Accounting Policies [Line Items]
Subsidy amount			$ 7,000
Chungcheongbuk-do Province Of South Korea [Member] \| Sella Two Factory [Member]
Significant Accounting Policies [Line Items]
Subsidy amount			$ 12,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Allowance for Credit Losses) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Accounting Policies [Abstract]
Balance, at beginning of period	$ 2,626
Increase in provision for expected credit losses	679
Amounts written off charged against the allowance and others	(103)
Balance, at end of period	$ 3,202

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property and Equipment) (Details)	12 Months Ended
	Dec. 31, 2022
Buildings and plants [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	2.50%
Buildings and plants [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	2.50%
Buildings and plants [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	5.70%
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	33.30%
Computers and peripheral equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	14.30%
Computers and peripheral equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	33.30%
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Office furniture and fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Office furniture and fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	25.00%
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	10.00%
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	9.00%
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	33.30%
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	10.00%
Laboratory Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Laboratory Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	20.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimate Fair Value of Stock Options and Warrants) (Details) - Employee and Executive Director [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	0.00%	0.43%	1.73%
Dividend yields	0.00%	0.00%	0.00%
Volatility	0.00%	60.74%	58.98%
Expected option term in years		5 years 5 months 23 days	6 years
Estimated forfeiture rate	0.00%	0.00%	0.00%
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yields	0.00%	0.00%	0.00%
Expected option term in years	6 years	6 years	6 years
ESPP [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	1.64%	0.03%	0.09%
Volatility	71.28%	48.39%	55.95%
ESPP [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	4.70%	0.10%	1.63%
Volatility	71.97%	76.05%	92.57%
PSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	1.77%	0.00%	0.00%
Dividend yields	0.00%	0.00%	0.00%
Volatility	67.42%	0.00%	0.00%
PSU [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option term in years	1 year
PSU [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option term in years	3 years

MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities Schedule Of Contractual Maturities Details [Abstract]
Proceeds from maturity of available-for-sale	$ 201,974	$ 187,375	$ 141,839
Proceeds from sale of available-for-sale securities	29,236	14,813
Realized loss	$ 434	$ 16

MARKETABLE SECURITIES (Schedule of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Available for-sale - matures within one year, amortized cost	$ 246,327	$ 168,038
Available for-sale - matures within one year, gross unrealized gains	0	23
Available for-sale - matures within one year, gross unrealized losses	(5,210)	(333)
Available for-sale - matures within one year, fair value	241,117	167,728
Available for-sale - matures after one year, amortized cost	672,488	487,918
Available for-sale - matures after one year, gross unrealized gains	80	9
Available for-sale - matures after one year, gross unrealized losses	(27,077)	(5,699)
Available for-sale - matures after one year, fair value	645,491	482,228
Amortized cost	918,815	655,956
Gross unrealized gains	80	32
Gross unrealized losses	(32,287)	(6,032)
Fair value	886,608	649,956
Corporate bonds [Member]
Marketable Securities [Line Items]
Available for-sale - matures within one year, amortized cost	222,482	160,462
Available for-sale - matures within one year, gross unrealized gains	0	23
Available for-sale - matures within one year, gross unrealized losses	(4,657)	(320)
Available for-sale - matures within one year, fair value	217,825	160,165
Available for-sale - matures after one year, amortized cost	657,238	474,412
Available for-sale - matures after one year, gross unrealized gains	80	9
Available for-sale - matures after one year, gross unrealized losses	(26,460)	(5,580)
Available for-sale - matures after one year, fair value	630,858	468,841
Governmental bonds [Member]
Marketable Securities [Line Items]
Available for-sale - matures within one year, amortized cost	23,845	7,576
Available for-sale - matures within one year, gross unrealized gains	0	0
Available for-sale - matures within one year, gross unrealized losses	(553)	(13)
Available for-sale - matures within one year, fair value	23,292	7,563
Available for-sale - matures after one year, amortized cost	15,250	13,506
Available for-sale - matures after one year, gross unrealized gains	0	0
Available for-sale - matures after one year, gross unrealized losses	(617)	(119)
Available for-sale - matures after one year, fair value	$ 14,633	$ 13,387

INVENTORIES, NET (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory Write-down	$ 10,170	$ 7,142	$ 8,864

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 503,257	$ 247,386
Work in process	23,407	13,863
Finished goods	202,537	118,894
Inventories	$ 729,201	$ 380,143

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands

Dec. 31, 2022

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Vendor non-trade receivables

$ 147,597

^[1]

$ 71,041

^[2]

Government authorities

55,670

63,440

Prepaid expenses and other

37,815

42,511

Prepaid expenses and other current assets

$ 241,082

$ 176,992

[1]	Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues (see Note 19b).
[2]	Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues (see Note 19b).

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	$ 728,499	$ 560,879
Less - accumulated depreciation	184,530	150,500
Total property, plant and equipment, net	543,969	410,379
Depreciation expenses	40,580	29,359	$ 22,355
Land [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	13,070	13,829
Buildings and plants [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	152,218	62,519
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	46,376	44,960
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	10,911	10,772
Laboratory and testing equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	58,454	41,365
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	315,155	201,406
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	85,147	73,991
Assets under construction and payments on account [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	$ 47,168	$ 112,037

LEASES (Schedule of Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
Total lease assets	$ 115,688	$ 88,895
Liabilities:
Operating leases long term	46,256	38,912
Finance leases long term	45,385	40,508
Total lease liabilities	111,087	94,023
Accrued expenses and other current liabilities [Member]
Liabilities:
Operating leases short term	16,183	12,728
Finance leases short term	3,263	1,875
Operating lease liabilities [Member]
Liabilities:
Operating leases long term	46,256	38,912
Other long term liabilities [Member]
Liabilities:
Finance leases long term	45,385	40,508
Operating lease right-of use assets, net [Member]
Assets:
Operating lease assets, net of lease incentive obligation	62,754	47,137
Property, plant and equipment, net [Member]
Assets:
Finance lease assets	$ 52,934	$ 41,758

LEASES (Schedule of Information Related to Operating and Finance Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finance leases:
Finance lease cost	$ 4,196	$ 2,065
Weighted average remaining lease term in years	16 years 3 months 10 days	16 years 5 months 4 days
Weighted average annual discount rate	2.30%	1.93%
Operating leases:
Operating lease cost	$ 15,901	$ 14,890
Weighted average remaining lease term in years	8 years 3 months 29 days	10 years 3 months
Weighted average annual discount rate	2.17%	1.68%

LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract]
Operating cash flows for operating leases	$ 16,343	$ 14,890
Operating cash flows for finance leases	420	523
Financing cash flows for finance leases	$ 2,834	$ 1,293

LEASES (Schedule of Operating and Finance lease liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating leases
2023	$ 16,330
2024	14,746
2025	7,338
2026	4,246
2027	3,285
Thereafter	22,085
Total lease payments	68,030
Less amount of lease payments representing interest	(5,591)
Present value of future lease payments	62,439
Less current lease liabilities	(16,183)
Long-term lease liabilities	46,256	$ 38,912
Finance lease
2023	3,298
2024	3,369
2025	3,539
2026	3,539
2027	4,083
Thereafter	40,445
Total lease payments	58,273
Less amount of lease payments representing interest	(9,625)
Present value of future lease payments	48,648
Less current lease liabilities	(3,263)
Finance lease liabilities	$ 45,385	$ 40,508

INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2022	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Indefinite-Lived Intangible Assets [Line Items]
Amortization expenses			$ 9,096	$ 10,176	$ 9,479
Goodwill and Intangible Asset Impairment			$ (90,104)	$ 0	$ 0
Automation Machines [Member]
Indefinite-Lived Intangible Assets [Line Items]
Amount of impairment loss	$ 245
Goodwill and Intangible Asset Impairment	245
Critical Power [Member]
Indefinite-Lived Intangible Assets [Line Items]
Gain (loss) on intangible assets		$ 1,226
Goodwill and Intangible Asset Impairment	1,226
Technology [Member]
Indefinite-Lived Intangible Assets [Line Items]
Amount of impairment loss	$ 26,917

INTANGIBLE ASSETS, NET (schedule of acquired intangible assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-lived intangible assets:
Gross intangible assets	$ 40,416	$ 87,826
Less - accumulated amortization	(20,487)	(28,965)
Total intangible assets, net	19,929	58,861
Current Technology [Member]
Finite-lived intangible assets:
Gross intangible assets	29,196	74,976
Customer Relationships [Member]
Finite-lived intangible assets:
Gross intangible assets	2,958	3,946
Trade names [Member]
Finite-lived intangible assets:
Gross intangible assets	3,287	3,929
Assembled Workforce [Member]
Finite-lived intangible assets:
Gross intangible assets	3,575	3,575
Patents [Member]
Finite-lived intangible assets:
Gross intangible assets	$ 1,400	$ 1,400

INTANGIBLE ASSETS, NET (schedule of future amortization expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 5,736
2024	5,717
2025	3,890
2026	3,826
2027	558
2028 and thereafter	202
Total intangible assets, net	$ 19,929	$ 58,861

GOODWILL (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
GOODWILL (Narrative) (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Accumulated goodwill impairment losses			$ 90,104
Impairment goodwill			$ (90,104)	$ 0	$ 0
e-Mobility components and telematics [Member]
Goodwill [Line Items]
Goodwill, Impairment Loss	$ 80,534
Impairment goodwill	26,917
Automation Machines [Member]
Goodwill [Line Items]
Goodwill, Impairment Loss	6,788
Impairment goodwill	245
Critical Power [Member]
Goodwill [Line Items]
Goodwill, Impairment Loss		$ 2,782
Impairment goodwill	$ 1,226

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
GOODWILL (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	$ 129,629	$ 140,479
Foreign currency adjustments	(8,336)	(10,850)
Accumulated impairment losses	(90,104)
Goodwill at December 31	31,189	129,629
Solar [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	30,505	33,255
Foreign currency adjustments	(1,737)	(2,750)
Accumulated impairment losses	0
Goodwill at December 31	28,768	30,505
All other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	99,124	107,224
Foreign currency adjustments	(6,599)	(8,100)
Accumulated impairment losses	(90,104)
Goodwill at December 31	$ 2,421	$ 99,124

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

INVESTMENT IN PRIVATELY-HELD COMPANY (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 20, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Feb. 01, 2021	Jan. 31, 2021
Schedule of Equity Method Investments [Line Items]
Sale of investment		$ 24,362	$ 0	$ 0
Auto Grid Systems [Member]
Schedule of Equity Method Investments [Line Items]
Equity investment in privately held company without readily determinable fair value			$ 16,643		$ 5,000	$ 11,643
Sale of investment	$ 24,362
Recognized gain on sale of investment	$ 7,719

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - Foreign exchange forward contracts [Member] - NIS [Member] $ in Millions	Dec. 31, 2022 USD ($)
Put option [Member]
Derivative [Line Items]
Forward/option contracts	$ 194
Call option [Member]
Derivative [Line Items]
Forward/option contracts	$ 18

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of fair values of outstanding derivative instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative assets of options and forward contracts:
Total derivative assets	$ 0	$ 4,009
Derivative liabilities of options and forward contracts:
Total derivative liabilities	(1,874)	(169)
Designated cash flow hedges [Member] \| Prepaid expenses and other current assets [Member]
Derivative assets of options and forward contracts:
Total derivative assets	0	992
Designated cash flow hedges [Member] \| Accrued expenses and other current liabilities [Member]
Derivative liabilities of options and forward contracts:
Total derivative liabilities	(1,874)	0
Non-designated hedges [Member] \| Prepaid expenses and other current assets [Member]
Derivative assets of options and forward contracts:
Total derivative assets	0	3,017
Non-designated hedges [Member] \| Accrued expenses and other current liabilities [Member]
Derivative liabilities of options and forward contracts:
Total derivative liabilities	$ 0	$ (169)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Gains (losses) on derivative instruments recognized in our income statements) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial expenses, net [Member] \| Non-designated hedges [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gains (losses) on derivative instruments	$ 4,716	$ 9,417	$ (4,013)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Gains (losses) on derivative instruments recognized in the consolidated comprehensive income statements) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Comprehensive Income (Loss) [Member] \| Designated cash flow hedges [Member] \| Foreign exchange contracts [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gains (losses) on derivative instruments recognized in the consolidated comprehensive income	$ (8,965)	$ 3,289	$ 966

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Level 1 [Member] \| Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 695,004	$ 508,389
Level 1 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	25,149	21,680
Level 1 [Member] \| Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	62,959	20
Level 2 [Member] \| Derivative instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	(1,874)	(169)
Level 2 [Member] \| Derivative instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	0	4,009
Level 2 [Member] \| Short-term corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	217,825	160,165
Level 2 [Member] \| Short-term governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	23,292	7,563
Level 2 [Member] \| Long-term corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	630,858	468,841
Level 2 [Member] \| Long-term governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 14,633	$ 13,387

WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in the Company's product warranty liability
Balance, at the beginning of the period	$ 265,160	$ 204,994	$ 172,563
Additions and adjustments to cost of revenues	239,401	150,684	102,832
Usage and current warranty expenses	(119,504)	(90,518)	(70,401)
Balance, at end of the period	385,057	265,160	204,994
Less current portion	(103,975)	(71,480)	(62,614)
Long term portion	$ 281,082	$ 193,680	$ 142,380

DEFERRED REVENUES (Schedule of Balances of Deferred Revenues) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue Recognition and Deferred Revenue [Abstract]
Balance, at the beginning of the period	$ 169,345	$ 140,020	$ 160,797
Revenue recognized	(23,017)	(26,093)	(72,046)
Increase in deferred revenues and customer advances	67,249	55,418	51,269
Balance, at the end of the period	213,577	169,345	140,020
Less current portion	(26,641)	(17,789)	(24,648)
Long term portion	$ 186,936	$ 151,556	$ 115,372

DEFERRED REVENUES (Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Revenue Arrangement [Line Items]
Deferred revenues	$ 213,577	$ 169,345	$ 140,020	$ 160,797
2023 [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	26,641
2024 [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	10,891
2025 [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	10,160
2026 [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	9,691
2027 [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	7,565
Thereafter [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues	$ 148,629

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued expenses	$ 117,638	$ 57,158
Government authorities	67,514	22,631
Operating lease liabilities	16,183	12,728
Accrual for sales incentives	6,790	3,048
Provision for legal claims	43	11,622
Other	5,944	2,192
Total accrued expenses and other current liabilities	$ 214,112	$ 109,379

CONVERTIBLE SENIOR NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 25, 2020 USD ($) d $ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Amortization of debt discount and debt issuance costs		$ 2,916	$ 2,903	$ 3,185
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
Coupon rate	0.00%
Maturity date	Sep. 15, 2025
Conversion amount	$ 1,000	$ 1,000
Conversion days \| d	30
Conversion rate \| $ / shares	$ 3.5997
Amount of conversion	$ 1,000
Conversion price \| $ / shares	$ 277.8
Amortization of debt discount and debt issuance costs				$ 2,480
Amortized term		2 years 8 months 12 days
Effective interest		0.47%
Amount by which the if-converted value of the Notes exceeded the principal amount		$ 12,452
Senior Notes [Member] \| Level 2 [Member]
Debt Instrument [Line Items]
Estimated fair value of notes		$ 831

CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Liability:
Principal	$ 632,500	$ 632,500
Unamortized issuance costs	(8,049)	(10,965)
Net carrying amount	$ 624,451	$ 621,535

OTHER LONG TERM LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Tax liabilities	$ 3,830	$ 5,105
Accrued severance pay	9,848	10,632
Other	2,078	3,805
Other non-current liabilities	$ 15,756	$ 19,542

STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 17, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Underwriters discounts and commissions		$ 27,140
Offering costs		$ 834
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan		10,000,000
Capitalized stock-based compensation		$ 380
Equity based compensation expenses to employees and nonemployees		7,747	$ 19,113	$ 7,847
Tax benefit realized from share-based compensation		10,171	13,379	11,263
Unrecognized compensation expense		343,473
IPO [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares sold in public offerings	2,300,000
Per share price of common stock sold	$ 295
IPO [Member] \| Underwriting Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares sold in public offerings	300,000
Underwriters discounts and commissions	$ 27,140
Offering costs	834
Proceeds from secondary public offering, net of issuance costs	$ 650,526
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		$ 37,948	$ 65,668	$ 251,564
Weighted average grant date fair values options granted to employees and executive directors			$ 168.71	$ 62.11
Option [Member] \| 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan		18,047,085
Number of shares available for future grant under the plan		9,410,816
Option [Member] \| 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grant under the plan		8,617,974			379,358
Percentage of common shares increase automatically each year		5.00%
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan		3,662,737
Number of shares available for future grant under the plan		2,923,861
Number of Common stock purchased		738,876
Period of plan increase automatically number of shares		487,643
Percentage of common shares increase automatically each year		1.00%
Maximum percentage of salary		15.00%
Aggregate limit per participant		$ 15
Purchase price of common stock, percent		85.00%

STOCK CAPITAL (Summary of the Activity in the Share Options) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of options
Outstanding at the beginning of the period	474,280
Exercised	(135,008)
Forfeited or expired	(243)
Outstanding at the end of the period	339,029	474,280
Weighted average exercise price
Outstanding at the beginning of the period	$ 44.68
Exercised	29.77
Forfeited or expired	5.01
Outstanding at the end of the period	$ 50.64	$ 44.68
Weighted average remaining contractual term in years
Outstanding	4 years 10 months 9 days	5 years 2 months 19 days
Aggregate intrinsic Value
Outstanding	$ 79,414	$ 112,479
Exercised	$ 0
Vested and expected to vest at the end of the period
Number of options	338,345
Weighted average exercise price	$ 50.45
Weighted average remaining contractual term in years	4 years 10 months 6 days
Aggregate intrinsic Value	$ 79,315
Exercisable at the end of the period
Number of options	300,865
Weighted average exercise price	$ 38.52
Weighted average remaining contractual term in years	4 years 6 months 29 days
Aggregate intrinsic Value	$ 73,875

STOCK CAPITAL (Schedule of RSUs and PSUs Activity) (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at beginning of period \| shares	1,759,972
Granted \| shares	683,548
Vested \| shares	(805,872)
Forfeited \| shares	(149,133)
Unvested at end of period \| shares	1,488,515
Weighted average grant date fair value, beginning of period \| $ / shares	$ 189.25
Weighted average grant date fair value, granted \| $ / shares	266.06
Weighted average grant date fair value, vested \| $ / shares	131.79
Weighted average grant date fair value, forfeited \| $ / shares	214.65
Weighted average grant date fair value, end of period \| $ / shares	$ 232.05
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at beginning of period \| shares	108,595
Granted \| shares	40,637
Unvested at end of period \| shares	149,232
Weighted average grant date fair value, beginning of period \| $ / shares	$ 296.4
Weighted average grant date fair value, granted \| $ / shares	294.48
Weighted average grant date fair value, end of period \| $ / shares	$ 295.88

STOCK CAPITAL (Schedule of Stock-based Compensation Expense for Employees and Nonemployee) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 145,539	$ 102,593	$ 67,309
Cost of Sales [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	21,818	18,743	11,082
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	63,211	45,424	27,048
Selling and Marketing Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	31,017	22,834	19,413
General and Administrative Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 29,493	$ 15,592	$ 9,766

COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Non-cancelable purchase obligations			$ 1,590,229
Provision for loss			7,002
Contractual obligations for capital expenditures			73,955
Patents [Member]
Loss Contingencies [Line Items]
Value in dispute		$ 5,866
Patents [Member] \| Euro [Member]
Loss Contingencies [Line Items]
Value in dispute \| €	€ 5.5
Office Rent Lease Agreements [Member]
Loss Contingencies [Line Items]
Guarantees amount			5,655
Other Transactions [Member]
Loss Contingencies [Line Items]
Guarantees amount			$ 1,372

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (schedule of changes in aoci) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (27,319)	$ 3,857	$ (1,809)
Revaluation	(59,249)	(29,649)	6,836
Tax on revaluation	6,508	900	(204)
Other comprehensive income (loss) before reclassifications	(52,741)	(28,749)	6,632
Reclassification	7,760	(2,758)	(1,101)
Tax on reclassification	(809)	331	135
Gains (Losses) reclassified from accumulated other comprehensive income	6,951	(2,427)	(966)
Net current period other comprehensive income (loss)	(45,790)	(31,176)	5,666
Ending balance	(73,109)	(27,319)	3,857
Unrealized gains (losses) on available-for-sale marketable securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4,709)	240	264
Revaluation	(26,944)	(6,283)	45
Tax on revaluation	5,583	1,346	(69)
Other comprehensive income (loss) before reclassifications	(21,361)	(4,937)	(24)
Reclassification	736	(16)	0
Tax on reclassification	(115)	4	0
Gains (Losses) reclassified from accumulated other comprehensive income	621	(12)	0
Net current period other comprehensive income (loss)	(20,740)	(4,949)	(24)
Ending balance	(25,449)	(4,709)	240
Unrealized gains on cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	874	0	0
Revaluation	(9,890)	3,735	1,101
Tax on revaluation	925	(446)	(135)
Other comprehensive income (loss) before reclassifications	(8,965)	3,289	966
Reclassification	7,024	(2,742)	(1,101)
Tax on reclassification	(694)	327	135
Gains (Losses) reclassified from accumulated other comprehensive income	6,330	(2,415)	(966)
Net current period other comprehensive income (loss)	(2,635)	874	0
Ending balance	(1,761)	874	0
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(17,420)	0	0
Revaluation	(20,540)	(17,420)	0
Tax on revaluation	0	0
Other comprehensive income (loss) before reclassifications	(20,540)	(17,420)	0
Reclassification	0	0	0
Tax on reclassification	0	0	0
Gains (Losses) reclassified from accumulated other comprehensive income	0	0	0
Net current period other comprehensive income (loss)	(20,540)	(17,420)	0
Ending balance	(37,960)	(17,420)	0
Unrealized gains (losses) on foreign currency translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(6,064)	3,617	(2,073)
Revaluation	(1,875)	(9,681)	5,690
Tax on revaluation	0	0	0
Other comprehensive income (loss) before reclassifications	(1,875)	(9,681)	5,690
Reclassification	0	0	0
Tax on reclassification	0	0	0
Gains (Losses) reclassified from accumulated other comprehensive income	0	0	0
Net current period other comprehensive income (loss)	(1,875)	(9,681)	5,690
Ending balance	$ (7,939)	$ (6,064)	$ 3,617

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (schedule of reclassifications of other comprehensive income loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenues	$ 2,265,631	$ 1,334,547	$ 997,912
Research and development	289,814	219,633	163,123
Sales and marketing	159,680	119,000	95,985
General and administrative	112,496	82,196	63,119
Total, before income taxes	678,528	422,179	318,798
Income taxes	(83,376)	(18,054)	(23,344)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	93,779	169,170	140,322
Unrealized gains (losses) on available-for-sale marketable securities [Member] \| Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Financial income (expenses), net	(736)	16	(0)
Income taxes	115	(4)	0
Total, net of income taxes	(621)	12	(0)
Unrealized gains (losses) on cash flow hedges [Member] \| Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenues	(801)	333	189
Research and development	(4,142)	1,645	623
Sales and marketing	(959)	334	136
General and administrative	(1,122)	430	153
Total, before income taxes	(7,024)	2,742	1,101
Income taxes	694	(327)	(135)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,330)	2,415	966
Total reclassifications for the period	$ (6,951)	$ 2,427	$ (966)

EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income	$ 93,779	$ 169,170	$ 140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic	55,087,770	52,202,182	50,217,330
Numerator:
Net income attributable to common stock, basic	$ 93,779	$ 169,170	$ 140,322
Notes due 2025	2,203	2,134	0
Net income attributable to common stock, diluted	$ 95,982	$ 171,304	$ 140,322
Denominator:
Shares used in computing net earnings per share of common stock, basic	55,087,770	52,202,182	50,217,330
Notes due 2025	2,276,818	2,276,818	0
Effect of stock-based awards	736,061	1,492,030	2,578,146
Shares used in computing net earnings per share of common stock, diluted	58,100,649	55,971,030	52,795,476
Shares excluded from the calculation of diluted net EPS due to their anti-dilutive effect	207,980	132,133	715,510

GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
e-Mobility components and telematics [Member]
Other Operating Income Expenses [Line Items]
Goodwill, Impairment Loss	$ 80,534
Automation Machines [Member]
Other Operating Income Expenses [Line Items]
Goodwill, Impairment Loss	$ 6,788
Critical Power [Member]
Other Operating Income Expenses [Line Items]
Goodwill, Impairment Loss		$ 2,782
SMRE Acquisition [Member]
Other Operating Income Expenses [Line Items]
A settlement of pre-acquisition legal claim against Kokam			$ 859	$ 4,900

GOODWILL IMPAIRMENT AND OTHER OPERATING EXPENSES (INCOME), NET (Schedule of Other Opearting Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Operating Income Expenses [Abstract]
Impairment goodwill	$ 90,104	$ 0	$ 0
Impairment of long-lived assets	29,037	2,209	1,471
Sale of assets	(2,603)	0	0
SolarEdge Korea (formerly Kokam) purchase escrow	0	(859)	(4,900)
Goodwill impairment and other operating expenses (income), net	$ 116,538	$ 1,350	$ (3,429)

INCOME TAXES (Narrative) (Details) $ in Thousands, ₪ in Billions	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Dec. 31, 2022 ILS (₪)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2018 USD ($)	Dec. 31, 2022 USD ($)
Income Taxes [Line Items]
Corporate tax rate (as a percent)	35.00%	21.00%	21.00%	21.00%
U.S. income tax rate for foreign subsidiaries earnings		15.50%
U.S. income tax rate for foreign subsidiaries earnings for other net current assets on remaining earnings		8.00%
Total tax liability						$ 8,500
Tax rate after amendment to Investments law In Development area A		7.50%
Tax rate before amendment to Investments law In Development area A		9.00%
Tax rate In other areas		16.00%
Tax rate for preferred technological enterprises (PTE) in other areas		12.00%
Annual revenue \| ₪		₪ 10
Foreign Subsidiaries [Member]
Income Taxes [Line Items]
Carryforward tax losses						$ 83,391
Israel [Member] \| Subsidiaries [Member]
Income Taxes [Line Items]
Corporate tax rate (as a percent)		23.00%
Tax exempt profits					$ 289,900

INCOME TAXES (Schedule of Deferred Tax Liabilities And Assets) (Details) - USD ($)
$ in Thousands

Dec. 31, 2022

Dec. 31, 2021

Deferred tax assets, net:

Research and Development carryforward expenses

$ 9,335

$ 2,479

Carryforward tax losses

^[1]

19,916

19,635

Stock based compensation expenses

9,863

12,140

Deferred revenue

8,954

8,078

Lease liabilities

6,520

11,168

Inventory Impairment

627

1,326

Allowance and other reserves

30,242

10,229

Total Gross deferred tax assets, net

85,457

65,055

Less, Valuation Allowance

(23,777)

(14,648)

Total deferred tax assets, net

61,680

50,407

Deferred tax liabilities, net:

Intercompany transactions

(6,292)

(6,099)

Right-of-use assets

(6,618)

(10,486)

Purchase price allocation

(4,617)

(6,406)

Total deferred tax liabilities, net

(17,527)

(22,991)

Recorded as:

Deferred tax assets, net

44,153

27,572

Deferred tax liabilities, net

(156)

Net deferred tax assets

$ 44,153

$ 27,416

[1]	Related to deferred tax assets that would only be realizable upon the generation of net income in certain foreign jurisdictions.

INCOME TAXES (Schedule of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Balance, at the beginning of the period	$ 2,192	$ 10,564	$ 9,532
Increases related to current year tax positions	564	635	757
Increase for tax positions related to prior years	0	0	275
Decreases related to prior year tax positions	0	(9,007)	0
Balance, at end of the period	$ 2,756	$ 2,192	$ 10,564

INCOME TAXES (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ 47,324	$ 13,659	$ 33,909
Foreign	129,831	173,565	129,757
Income before income taxes	$ 177,155	$ 187,224	$ 163,666

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

INCOME TAXES (Schedule of Income taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current taxes:
Domestic	$ 56,957	$ (7,872)	$ 1,842
Foreign	37,473	37,564	24,936
Total current taxes	94,430	29,692	26,778
Deferred taxes:
Domestic	(8,954)	(3,682)	2,794
Foreign	(2,100)	(7,956)	(6,228)
Total deferred taxes	(11,054)	(11,638)	(3,434)
Income taxes, net	$ 83,376	$ 18,054	$ 23,344

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES (Schedule of reconciliation between the theoretical tax expense and the actual tax expense (benefit)) (Details)	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory tax rate	35.00%	21.00%	21.00%	21.00%
Effect of: Income tax at rate other than the U.S. statutory tax rate		(10.80%)	(7.40%)	(6.90%)
Losses and timing differences for which valuation allowance was provided		5.20%	2.70%	4.40%
Prior year income taxes (benefit)		2.90%	(4.40%)	(0.40%)
R&D Capitalization and other effects of TCJA		18.90%	0.10%	0.00%
Disallowable and allowable deductions		13.20%	2.00%	(2.60%)
Other individually immaterial income tax items, net		(3.30%)	(4.40%)	(1.30%)
Effective tax rate		47.10%	9.60%	14.20%

FINANCIAL (EXPENSES) INCOME, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Nonoperating Income (Expense) [Abstract]
Exchange rate (loss) gain, net	$ (1,547)	$ (22,493)	$ (33,065)
Interest income on marketable securities	10,551	2,973	3,750
Convertible note	(2,916)	(2,903)	(3,185)
Hedging	4,716	9,417	(4,013)
Financing component expenses related to ASC 606	(7,038)	(5,771)	(4,887)
Bank charges	(1,584)	(1,991)	(2,048)
Interest income, net	1,402	183	67
Other	(268)	670	(1,644)
Financial income (expense), net	$ 3,316	$ (19,915)	$ (21,105)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 3,110,279	$ 1,963,865	$ 1,459,271
Cost of Revenue	2,265,631	1,334,547	997,912
Gross profit	844,648	629,318	461,359
Research and Development Expense	289,814	219,633	163,123
Selling and Marketing Expense	159,680	119,000	95,985
General and Administrative Expense	112,496	82,196	63,119
Segments profit (loss)	93,779	169,170	140,322
Solar segment profit	486,862	368,746	255,728
All other segment loss	(45,137)	(47,387)	(36,844)
Segments operating profit	441,725	321,359	218,884
Amounts not allocated to segments:
Stock based compensation expenses	(145,539)	(102,593)	(67,309)
Amortization and depreciation of acquired assets	(9,478)	(10,812)	(9,336)
Impairment of goodwill and long-lived assets	(119,141)	0	0
Disposal of assets related to Critical Power	(4,314)	0	0
Other unallocated income (expenses), net	2,867	(815)	322
Consolidated operating income	166,120	207,139	142,561
Solar [Member]
Segment Reporting Information [Line Items]
Revenues	2,921,175	1,787,280	1,357,261
Cost of Revenue	2,050,147	1,136,896	882,420
Gross profit	871,028	650,384	474,841
Research and Development Expense	196,381	143,173	110,567
Selling and Marketing Expense	118,154	85,309	66,823
General and Administrative Expense	69,631	53,156	41,723
Segments profit (loss)	486,862	368,746	255,728
All Other [Member]
Segment Reporting Information [Line Items]
Revenues	188,490	176,167	102,804
Cost of Revenue	181,923	169,582	95,280
Gross profit	6,567	6,585	7,524
Research and Development Expense	29,016	30,506	25,417
Selling and Marketing Expense	9,687	9,930	8,562
General and Administrative Expense	13,001	13,536	10,389
Segments profit (loss)	$ (45,137)	$ (47,387)	$ (36,844)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 3,110,279	$ 1,963,865	$ 1,459,271
Solar Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	2,921,175	1,787,280	1,357,261
All Other Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	188,490	176,167	102,804
Revenues From Financing Componen [Member]
Segment Reporting Information [Line Items]
Revenues	614	418	0
Adjustment of Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 0	$ (794)

- 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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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Summary of Revenues Within Geographic Areas) (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2022

USD ($)

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Revenues from External Customers and Long-Lived Assets [Line Items]

Number of reportable segments

Total revenues

$ 3,110,279

$ 1,963,865

$ 1,459,271

United States [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

1,133,798

786,019

613,090

Europe [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

^[1]

528,197

297,684

233,583

Germany [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

449,160

191,066

118,350

Netherlands [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

382,226

222,103

199,498

Italy [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

330,565

181,644

74,598

Rest of the world [Member]

Revenues from External Customers and Long-Lived Assets [Line Items]

Total revenues

$ 286,333

$ 285,349

$ 220,152

[1]	Except for Germany, Netherlands and Italy

- Definition

+ References

+ Details

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Summary of Revenues by Product Family) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from External Customer [Line Items]
Total revenues	$ 3,110,279	$ 1,963,865	$ 1,459,271
Inverters [Member]
Revenue from External Customer [Line Items]
Total revenues	1,137,142	828,101	641,799
Optimizers [Member]
Revenue from External Customer [Line Items]
Total revenues	1,135,040	828,542	625,465
Residential batteries [Member]
Revenue from External Customer [Line Items]
Total revenues	429,119	19,531	0
e-Mobility components and telematics [Member]
Revenue from External Customer [Line Items]
Total revenues	94,446	68,946	13,399
Communication [Member]
Revenue from External Customer [Line Items]
Total revenues	72,812	24,111	41,771
Other Products [Member]
Revenue from External Customer [Line Items]
Total revenues	$ 241,720	$ 194,634	$ 136,837

- Definition

+ References

+ Details

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 606,723	$ 457,517
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	333,740	271,700
korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	201,731	118,209
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	34,230	30,412
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	21,282	21,547
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 15,740	$ 15,649