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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 28, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Entity Registrant Name	SolarEdge Technologies Inc
Entity Central Index Key	0001419612
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		45,751,565

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 192,876	$ 163,163
Short-term bank deposits	7,779
Restricted cash	2,083	1,516
Marketable securities	148,252	77,264
Trade receivables, net	151,088	109,528
Inventories	107,179	82,992
Prepaid expenses and other current assets	46,396	42,223
Total current assets	655,653	476,686
LONG-TERM ASSETS:
Marketable securities	102,240	103,120
Property and equipment, net	73,415	51,182
Deferred tax assets, net	13,218	8,340
Intangible assets, net	3,762	1,115
Goodwill	2,782
Other non-current assets	1,108	862
Total long term assets	196,525	164,619
Total assets	852,178	641,305
CURRENT LIABILITIES:
Trade payables, net	83,459	69,488
Employees and payroll accruals	23,680	22,544
Warranty obligations	21,660	14,785
Deferred revenues	5,795	2,559
Accrued expenses and other current liabilities	31,556	20,378
Total current liabilities	166,150	129,754
LONG-TERM LIABILITIES:
Warranty obligations	86,059	64,026
Deferred revenues	53,663	31,453
Other non-current liabilities	7,343	18,605
Total long-term liabilities	147,065	114,084
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2018 (unaudited) and December 31, 2017; issued and outstanding: 45,750,400 and 43,812,601 shares as of September 30, 2018 (unaudited) and December 31, 2017, respectively	5	4
Additional paid-in capital	361,744	331,902
Accumulated other comprehensive loss	(983)	(611)
Retained earnings	178,197	66,172
Total stockholders' equity	538,963	397,467
Total liabilities and stockholders' equity	$ 852,178	$ 641,305

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	125,000,000	125,000,000
Common stock, issued shares	45,750,400	43,812,601
Common stock, outstanding shares	45,750,400	43,812,601

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 236,578	$ 166,552	$ 673,567	$ 417,705
Cost of revenues	158,596	108,498	434,042	273,909
Gross profit	77,982	58,054	239,525	143,796
Operating expenses:
Research and development	20,109	14,363	57,535	38,546
Sales and marketing	16,938	13,217	49,097	35,953
General and administrative	6,898	5,078	17,427	12,782
Total operating expenses	43,945	32,658	124,059	87,281
Operating income	34,037	25,396	115,466	56,515
Financial expenses (income), net	689	(2,666)	2,585	(7,671)
Income before taxes on income	33,348	28,062	112,881	64,186
Taxes on income (tax benefit)	(12,295)	91	(3,016)	(484)
Net income	$ 45,643	$ 27,971	$ 115,897	$ 64,670
Net basic earnings per share of common stock	$ 1.00	$ 0.66	$ 2.57	$ 1.55
Net diluted earnings per share of common stock	$ 0.95	$ 0.61	$ 2.41	$ 1.44
Weighted average number of shares used in computing net basic earnings per share of common stock	45,601,540	42,433,648	45,025,661	41,831,400
Weighted average number of shares used in computing net diluted earnings per share of common stock	48,281,240	46,131,556	48,091,185	44,937,527

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 45,643	$ 27,971	$ 115,897	$ 64,670
Available-for-sale securities:
Changes in unrealized gains (losses) net of tax expenses (benefit)	32	54	(484)	87
Net change	32	54	(484)	87
Cash flow hedges:
Changes in unrealized gains, net of tax expense	45		45	975
Reclassification adjustments for loses, net of tax expense included in net income	(9)		(9)	(994)
Net change	36		36	(19)
Foreign currency translation adjustments, net	87	16	76	(41)
Total other comprehensive income (loss)	155	70	(372)	27
Comprehensive income	$ 45,798	$ 28,041	$ 115,525	$ 64,697

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows provided by operating activities:
Net income	$ 115,897	$ 64,670
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	7,997	4,824
Amortization of intangible assets	404	108
Amortization of premiums on available-for-sale marketable securities	1,242	1,310
Stock-based compensation	21,927	12,183
Deferred tax assets, net	(4,789)	(3,063)
Loss on disposals of fixed assets	64
Realized gain from cash flow hedge	(9)
Changes in assets and liabilities:
Inventories	(18,120)	5,005
Prepaid expenses and other assets	(4,800)	(17,420)
Trade receivables, net	(42,418)	(20,168)
Trade payables, net	14,006	8,667
Employees and payroll accruals	1,200	4,509
Warranty obligations	28,847	13,192
Deferred revenues	21,576	9,699
Accrued expenses and other liabilities	(819)	7,314
Net cash provided by operating activities	142,205	90,830
Cash flows used in investing activities:
Purchase of property and equipment	(30,051)	(13,203)
Acquisitions and purchases of assets	(11,223)
Investment in short term bank deposits	(7,779)
Investment in available-for-sale marketable securities	(143,150)	(82,469)
Maturities of available-for-sale marketable securities	71,632	46,513
Net cash used in investing activities	(120,571)	(49,159)
Cash flows from financing activities:
Proceeds from issuance of shares under stock purchase plan and upon exercise of stock-based awards	7,915	3,795
Net cash provided by financing activities	7,915	3,795
Net increase in cash, cash equivalents and restricted cash	29,549	45,466
Cash, cash equivalents and restricted cash at the beginning of the period	164,679	105,580
Effect of exchange rate differences on cash, cash equivalents and restricted cash	731	(198)
Cash, cash equivalents and restricted cash at the end of the period	$ 194,959	$ 150,848

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands

Sep. 30, 2018

Jul. 02, 2018

Dec. 31, 2017

Goodwill

$ 2,782

Gamatronic Ltd [Member]

Inventory

$ 6,020

Fixes Assets

291

Current Technology

2,048

Customer relationships

810

193

2,782

(61)

^[1]

(860)

Total cash paid

$ 11,223

[1]

The purchase agreement includes an earn-out provision requiring the Company to pay an amount of 50% and 33% of the Company's UPS business division's net income for the first and second years following the Acquisition Date, respectively. The Company estimated the fair value of the contingent consideration based on Monte-Carlo model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820.

GENERAL

9 Months Ended

Sep. 30, 2018

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), (iii) a related cloud-based monitoring platform, that collects and processes information from the power optimizers and inverters of a solar PV system to enable customers and system owners as applicable, to monitor and manage the solar PV systems and (iv) a storage solution that is used to increase energy independence and maximize self-consumption for homeowners by utilizing a battery that is sold separately by third party manufacturers, to store and supply power as needed (the “StorEdge solution”). The StorEdge solution is designed to provide smart energy functions such as maximizing self-consumption, Time-of-Use programming for desired hours of the day, and home energy backup solutions.

The Company and its subsidiaries sell their products worldwide directly to large solar installers and engineering, procurement and construction firms (“EPCs”), as well as through large distributors and electrical equipment wholesalers to smaller solar installers.

On July 1, 2018 (the "Acquisition Date") the Company completed the acquisition (the "Acquisition") of substantially all of the assets and activities of Gamatronic Electronic Industries Ltd ("Gamatronic"), a provider and manufacturer of Uninterruptible Power Supplies ("UPS") devices (see note 2).

On October 17, 2018, the Company closed an acquisition of approximately 75% of Kokam Co., Ltd. (“Kokam”), a provider of Lithium-ion cells, batteries and energy storage solutions (see note 11b).

Basis of Presentation:

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and disclosures in footnotes that it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its condensed consolidated financial position, results of operations, and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year.

The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2017, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 20, 2018, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for the adoption of ASC 606, Revenue - Revenue from Contracts with Customers (see Note 1d), adoption of ASC 805, Business Combination (see notes 1g and note 2), adoption of ASC 350 Intangible-Goodwill and other Assets (see note 1h and note 1i).

New accounting pronouncements not yet effective:

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases". Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases". Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued amendments in ASU 2018-11, which provide a transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company has elected to apply the standard retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company also expects to elect certain relief options offered in ASU 2016-02 including certain available transitional practical expedients. Based on the Company's current portfolio of leases, approximately $39 million of lease assets and liabilities would be recognized on its balance sheet, primarily relating to real estate. The Company has established a cross-functional team and it is continuing to evaluate the new standard and prepare for implementation. The Company will adopt Topic 842 effective January 1, 2019.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". ASU 2017-04 was issued to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in ASU 2017-04 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019.

The Company is evaluating the potential impact of this pronouncement.

Recently issued and adopted pronouncements:

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flow arising from contracts with customers. The guidance permits two methods of modification: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company adopted the new standard, effective January 1, 2018, using the modified retrospective method applied to those contracts which were not substantially completed as of the adoption date. See “Revenue Recognition” below for further details.

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 during the first quarter of 2018. The adoption of this new guidance had no material impact on the Company’s condensed consolidated balance sheets, statements of income and cash flows.

In June 2018, the FASB issued Accounting Standards Update No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting" (ASU 2018-07). ASU 2018-07 was issued to simplify several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The Company adopted ASU 2018-07 effective July 1, 2018. The adoption of this new guidance had no material impact on the Company’s interim consolidated financial statements.

Revenue Recognition:

The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), effective on January 1, 2018. As a result of this adoption, the Company revised its accounting policy for revenue recognition as detailed below.

The Company and its subsidiaries generate their revenues mainly from the sale of power optimizers, inverters and cloud-based monitoring services to distributors, installers and PV module manufacturers.

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 a performance obligation is satisfied.

(1)

Identify the contract with a customer

A contract is an agreement 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:

Power optimizers; Inverters; Storage solution; UPS devices; Cloud based monitoring services; Extended warranty services and Communication services.

(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.

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.

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.

(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 when control is transferred (based on 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.

The most significant impact of the standard on the Company’s financial statements relates to advance payments received for performance obligations that extend for a period greater than one year. Applying the new standard, such performance obligations are those that include a financing component, specifically: (i) warranty extension services, (ii) cloud-based monitoring, and (iii) communication services.

The Company recognizes financing component expenses in its condensed 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.

The effect of the changes made to the consolidated January 1, 2018 balance sheets following the adoption of ASC 606, Revenue - Revenue from Contracts with Customers were as follows:

	Balance as of December 31, 2017		Adjustments due following adoption of ASC 606			Balance as of January 1, 2018
			Unaudited			Unaudited
Deferred Revenues - Current term	$	2,559	$	(89	)	$	2,470
Deferred Revenues - Long term		31,453		3,961			35,414
Retained earnings	$	66,172	$	(3,872	)	$	62,300

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s condensed consolidated statements of income, cash flows, and balance sheets were as follows:

	Three months ended September 30, 2018 (Unaudited)
	As Reported		Balances before adoption of ASC 606		Effect of change

Statements of operations
Revenues	$	236,578	$	236,571	$	7
Financial expenses (income), net		689		48		641
Net income		45,643		46,277		(634	)

Cash flows
Net income		45,643		46,277		(634	)
Changes in assets and liabilities:
Deferred revenues	$	8,456	$	7,822	$	634

	Nine months ended September 30, 2018 (Unaudited)
	As Reported		Balances before adoption of ASC 606		Effect of change
Statements of operations
Revenues	$	673,567	$	673,509	$	58
Financial expenses (income), net		2,585		865		1,720
Net income		115,897		117,559		(1,662	)

Cash flows
Net income		115,897		117,559		(1,662	)
Changes in assets and liabilities:
Deferred revenues		21,576		19,914		1,662

	As of September 30, 2018
	As Reported			Balances before adoption of ASC 606			Effect of change
Balance Sheets
Deferred Revenues - Current		(5,795	)		(5,873	)		78
Deferred Revenues - Long term		(53,663	)		(48,051	)		(5,612	)
Retained earnings	$	(178,197	)	$	(182,069	)	$	3,872

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

These vendors collectively accounted for 60.6% and 51.6% of the Company’s total trade payables as of September 30, 2018 (unaudited) and December 31, 2017, respectively.

The Company has the right to offset its payables to one of its contract manufacturers against vendor non-trade receivables. As of September 30, 2018 (unaudited), a total of $874 of these receivables met the criteria for net recognition and were offset against the corresponding accounts payable balances for this contract manufacturer in the accompanying condensed Consolidated Balance Sheets.

Derivative financial instruments:

To protect against the increase in value of forecasted foreign currency cash flows resulting from salary payments of its Israeli facilities denominated in the Israeli currency, the New Israeli Shekels (“NIS”), the Company instituted a foreign currency cash flow hedging program. The Company hedged portions of the anticipated payroll payments denominated in NIS for a period of one to twelve months with hedging contracts. Accordingly, when the dollar strengthens against the foreign currencies, 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.

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

As of September 30, 2018 (unaudited), the Company entered into put and call options to sell Euros for U.S. dollars and sell U.S dollars for NIS in the amount of €7,500 and $6,000 million respectively. These hedging contracts do not contain any credit-risk-related contingency features. See Note 5 for information on the fair value of these hedging contracts.

The fair value of the Company’s outstanding derivative instruments is as follows:

	Balance as of September 30,			Balance as of December 31,
	2018			2017
	(unaudited)
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	45		$	-
Derivatives not designated as cash flow hedging instruments:
Foreign exchange option contracts		202			221

Total		247			221

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts		(9	)		-
Derivatives not designated as cash flow hedging instruments:
Foreign exchange option contracts		(1	)		(285	)
Foreign exchange forward contracts		-			(116	)

Total	$	(10	)	$	(401	)

The Company recorded the fair value of derivative assets and liabilities, net in “Prepaid expenses and other current assets” and in “Accrued expenses and other liabilities” on the Company’s consolidated balance sheets as of September 30, 2018 and December 31, 2017, respectively.

The net increase in unrealized gains recognized in “accumulated other comprehensive loss” on derivatives, net of tax effect, is as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)

Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	45	$	-	$	45	$	-
Foreign exchange forward contracts	$	-	$	-	$	-	$	975

The net gains reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Three months ended					Nine months ended
	September 30,					September 30,
	2018			2017		2018			2017
	(unaudited)					(unaudited)

Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(9	)	$	-	$	(9	)	$	-
Foreign exchange forward contracts	$	-		$	-	$	-		$	(994	)

The Company recorded in the financial expenses (income), net, a net loss (gain) related to derivatives not qualified as hedging instruments of $(17) and $492 during the three months ended September 30, 2018 and 2017 (unaudited), respectively and $608 and $1,164 during the nine months ended September 30, 2018 and 2017 (unaudited), respectively.

Business Combination:

The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value. The excess of the fair value of purchase consideration 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, useful lives 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 is not to 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 conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Intangible Assets:

The Company evaluates the recoverability of finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. The Company has not recorded any impairment charges during the three months period ended September 30, 2018.

Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life (see Note 2).

Goodwill:

The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, than a two-step impairment test is performed. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting unit. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting unit using discounted cash flows. Forecasts of future cash flows are based on the Company's management best estimate of future net sales and operating expenses that are based primarily on expected category expansion, pricing, and general economic conditions.

The Company completes the required annual testing of goodwill for impairment for the reporting unit on October 1 of each year and accordingly, determines whether goodwill should be impaired.

As of September 30, 2018, no impairment of goodwill has been identified.

Accumulated other comprehensive loss:

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended September 30, 2018 (unaudited):

	Unrealized gains on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Unrealized gains on foreign currency translation			Total

Beginning balance	$	(949	)	$	-		$	(189	)	$	(1,138	)
Net other comprehensive income before reclassifications		32			45			87			164
Net gains reclassified from accumulated other comprehensive loss		-			(9	)		-			(9	)
Net current period other comprehensive income		32			36			87			155

Ending balance	$	(917	)	$	36		$	(102	)	$	(983	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2018 (unaudited):

	Unrealized losses on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Unrealized gains on foreign currency translation			Total

Beginning balance	$	(433	)		-		$	(178	)	$	(611	)
Net other comprehensive income (loss) before reclassifications		(484	)		45			76			(363	)
Net gains reclassified from accumulated other comprehensive loss		-			(9	)		-			(9	)
Net current period other comprehensive income (loss)		(484	)		36			76			(372	)

Ending balance	$	(917	)	$	36		$	(102	)	$	(983	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended September 30, 2017 (unaudited):

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges		Unrealized gains (losses) on foreign currency translation			Total

Beginning balance	$	(103	)		-	$	(264	)	$	(367	)
Net other comprehensive income before reclassifications		54			-		16			70

Ending balance	$	(49	)		-	$	(248	)	$	(297	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2017 (unaudited):

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges			Unrealized gains (losses) on foreign currency translation			Total

Beginning balance	$	(136	)	$	19		$	(207	)	$	(324	)
Net other comprehensive income (loss) before reclassifications		87			975			(41	)		1,021
Net gains reclassified from accumulated other comprehensive income (loss)		-			(994	)		-			(994	)
Net current period other comprehensive income (loss)		87			(19	)		(41	)		27

Ending balance	$	(49	)		-		$	(248	)	$	(297	)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) (unaudited):

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Statements of Income
	Three months ended September 30,
	2018		2017

Unrealized gains on cash flow hedges, net	$	1	$	-	Cost of revenues
		6		-	Research and development
		1		-	Sales and marketing
		1		-	General and administrative

		9		-	Total, before income taxes

		-		-	Income tax expense

	$	9	$	-	Total, net of income taxes

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) (unaudited):

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Statements of Income
	Nine months ended September 30,
	2018		2017

Unrealized gains on cash flow hedges, net	$	1	$	166	Cost of revenues
		6		570	Research and development
		1		151	Sales and marketing
		1		153	General and administrative

		9		1,040	Total, before income taxes

		-		46	Income tax expense

	$	9	$	994	Total, net of income taxes

Certain amounts in prior year have been reclassified to conform to the current quarter presentation.

BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

BUSINESS COMBINATION

NOTE 2:-

BUSINESS COMBINATION

On the Acquisition Date the Company completed the Acquisition of substantially all of the assets and activities of Gamatronic, a provider and manufacturer of UPS devices.

The Company determined that such Acquisition will be accounted for as a business combination in accordance with ASC 805 "Business Combinations".

The results of Gamatronic's operations and the net fair value of the assets acquired have been included in the Company's interim consolidated financial statements since the Acquisition Date.

The Acquisition Date fair value of the consideration transferred totaled to $12,083, which consisted of the following:

Cash	$	11,223
Earn-out provision (*)		860
Total	$	12,083

(*) The purchase agreement includes an earn-out provision requiring the Company to pay an amount of 50% and 33% of the Company’s UPS business division’s net income for the first and second years following the Acquisition Date, respectively. The Company estimated the fair value of the contingent consideration based on Monte-Carlo model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820.

During the period of three months ended September 30, 2018, there were no significant changes in the range of outcomes for the contingent consideration recognized as a result of the acquisition of the assets and activities of Gamatronic.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date:

	July 1, 2018

Inventory	$	6,020
Fixes Assets		291
Current Technology		2,048
Customer relationships		810
Backlog		193
Total identifiable assets acquired		9,362

Warranty provision		(61	)

Net identifiable assets acquired		9,301

Goodwill		2,782

Net assets acquired	$	12,083

Those definite-lived intangible assets include current technology of $2,048 (7 year useful life), customer relationships of $810 (7 year useful life), and backlog of $193 (2 months weighted-average useful life).

The goodwill recognized is attributable primarily to acquired technology, expected synergies and the assembled workforce from Gamatronic. The goodwill is expected to be deductible for income tax purposes over a period of 10 years. As of September 30, 2018, there were no changes in the recognized amounts of goodwill resulting from the Acquisition.

The Company recognized $28 of Acquisition related costs that were expensed in the current period. These costs are included in the consolidated income statement in general and administrative expenses.

The Company did not disclose the amount of revenues and earnings of the acquired UPS division for the period from the Acquisition Date to September 30, 2018 since the results of the acquired operations are immaterial to the Company’s condensed consolidated statements of income.

INVENTORIES

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 3:-

INVENTORIES

	September 30, 2018		December 31, 2017
	(unaudited)

Raw materials	$	33,955	$	25,887
Work in process		1,892		-
Finished goods		71,332		57,105

	$	107,179	$	82,992

WARRANTY OBLIGATIONS

9 Months Ended

Sep. 30, 2018

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

NOTE 4:-

WARRANTY OBLIGATIONS

Changes in the Company’s product warranty liability for the nine months ended September 30, 2018 and 2017 were as follows:

	Nine months ended September 30,
	2018			2017
	(unaudited)

Balance, at beginning of period	$	78,811		$	58,375
Additions and adjustments to cost of revenues		47,819			23,758
Utilization and current warranty expenses		(18,911	)		(10,566	)

Balance, at end of period		107,719			71,567
Less current portion		(21,660	)		(12,942	)

Long term portion	$	86,059		$	58,625

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 5:-

FAIR VALUE MEASUREMENTS

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 to sell 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.

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of September 30, 2018 (unaudited) by level within the fair value hierarchy:

	Balance as of		Fair value measurements
Description	September 30, 2018		Level 1		Level 2		Level 3

Assets:
Cash equivalents:
Money market mutual funds	$	20,685	$	20,685		-		-

Derivative instruments assets, net	$	237		-	$	237		-

Short-term marketable securities:
Corporate bonds	$	137,667		-	$	137,667		-
Governmental bonds	$	10,585		-	$	10,585		-

Long-term marketable securities:
Corporate bonds	$	100,546		-	$	100,546		-
Governmental bonds	$	1,694		-	$	1,694		-

Liabilities:
Short-term Earn-out provision	$	-		-		-	$	(528	)

Long-term Earn-out provision	$	-		-		-	$	(332	)

The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2017 by level within the fair value hierarchy:

	Balance as of			Fair value measurements
Description	December 31, 2017			Level 1		Level 2			Level 3

Cash equivalents:
Money market mutual funds	$	6,163		$	6,163		-			-

Derivative instruments liability, net	$	(180	)		-	$	(180	)		-

Short-term marketable securities:
Corporate bonds	$	68,272			-	$	68,272			-
Governmental bonds	$	8,992			-	$	8,992			-

Long-term marketable securities:
Corporate bonds	$	95,160			-	$	95,160			-
Governmental bonds	$	7,960			-	$	7,960			-

In addition to the assets and liabilities described above, the Company’s financial instruments also include cash and cash equivalents, restricted and short-term bank deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not materially different from their carrying values on September 30, 2018 due to the short-term maturity of these instruments.

- 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

COMMITMENTS AND CONTINGENT LIABILITIES

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 6:-

COMMITMENTS AND CONTINGENT LIABILITIES

Guarantees:

As of September 30, 2018 (unaudited), contingent liabilities exist regarding guarantees in the amount of $1,398, $56, $176 and $366 in respect of office rent lease agreements, customs transactions, credit card limits and securing projects with customers, respectively.

Contractual purchase obligations:

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

As of September 30, 2018 (unaudited), the Company had non-cancelable purchase obligations totaling approximately $278,024 out of which the Company already recorded a provision for loss in the amount of $1,954.

As of September 30, 2018 (unaudited), the Company had contractual obligations for capital expenditures totaling approximately $36,153 these commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing.

Legal claims:

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

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

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

STOCK CAPITAL

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK CAPITAL

NOTE 7:-

STOCK CAPITAL

Common Stock:

Authorized

Issued and outstanding

Number of shares

September 30,

2018

December 31, 2017

September 30,

2018

December 31, 2017

(unaudited)

Stock of $0.0001 par value:

Common stock

125,000,000

45,750,400

43,812,601

Stock Incentive plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. On March 31, 2015, once the Company completed its Initial Public Offering (“IPO”), the 2007 Plan has been terminated and no further awards will be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan.

The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers and consultants of the Company and its Subsidiaries. As of September 30, 2018 (unaudited), a total of 8,080,717 (unaudited) shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”).

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

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is ten million (10,000,000).

As of September 30, 2018 (unaudited), an aggregate of 3,453,698 shares of common stock are still available for future grant under the 2015 Plan.

Options granted to employees and members of the board of directors:

A summary of the activity in the share options granted to employees and members of the board of directors for the six months ended September 30, 2018 (unaudited) and related information follows:

						Weighted
						average
				Weighted		remaining
	Number			average		contractual		Aggregate
	of			exercise		term		intrinsic
	Options			price		in years		Value

Outstanding as of December 31, 2017		3,524,310			7.40		6.35		106,251
Granted		180,983			38.05
Exercised		(1,270,943	)		4.89
Forfeited or expired		(22,746	)		8.44
Outstanding as of September 30, 2018		2,411,604			11.01		6.44		64,307

Vested and expected to vest as of September 30, 2018		2,357,632			10.92		6.42		63,098

Exercisable as of September 30, 2018		1,698,620			7.55		5.79		51,134

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

The total intrinsic value of options exercised during the nine months ended on September 30, 2018 (unaudited) was $58,278.

The weighted average grant date fair values of options granted to employees and executive directors during the nine months ended September 30, 2018 (unaudited) was $20.83.

A summary of the activity in the RSUs granted to employees and members of the board of directors for the nine months ended September 30, 2018 (unaudited) is as follows:

	No. of RSUs			Weighted average grant date fair value
Unvested as of December 31, 2017		2,087,992			24.33
Granted		713,595			48.07
Vested		(586,290	)		23.15
Forfeited		(157,723	)		27.99
Unvested as of September 30, 2018		2,057,574			32.62

e. Options and RSUs issued to non-employee consultants:

The Company has granted options and RSUs to purchase common shares to non-employee consultants as of September 30, 2018 (unaudited) as follows:

	Outstanding				Exercisable
	as of				as of
Issuance	September 30,		Exercise		September 30,		Exercisable
Date	2018		price		2018		Through

January 27, 2014		138		3.51		27	January 27, 2024
May 1, 2014		455		3.51		455	May 1, 2024
September 17, 2014		3,936		3.96		3,936	September 17, 2024
October 29, 2014		1,949		5.01		505	October 29, 2024
August 19, 2015		5,251		0.00		-	-
November 8, 2015		667		0.00		-	-
April 18, 2016		625		0.00		-	-
July 11, 2016		1,001		0.00		-	-
September 21, 2016		2,000		15.34		-	September 21, 2026
September 21, 2016		3,500		0.00		-	-
March 15, 2017		5,500		0.00		-	-
March 15, 2017		5,500		13.70		-	March 15, 2027
March 27, 2017		2,750		0.00		-	-
November 20, 2017		4,876		0.00		-	-
January 2, 2018		5,749		0.00		-	-
July 1, 2018		5,034		0.00		-	-

		48,931				4,923

In connection with the grant of stock options and RSUs to non‑employee consultants, the Company recorded stock compensation expenses in the nine months ended September 30, 2018 (unaudited) and 2017 (unaudited) in the amounts $1,070 and $582, respectively.

Employee Stock Purchase Plan (“ESPP”):

The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of September 30, 2018 (unaudited), a total of 1,739,280 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 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.

As of September 30, 2018 (unaudited), 323,342 common stock shares had been purchased under the ESPP.

As of September 30, 2018 (unaudited), 1,415,938 common stock shares 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.

Stock-based compensation expense for employees and consultants:

The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and non-employees and ESPP in the condensed consolidated statement of operations for the nine months ended on September 30, 2018 (unaudited) and 2017 (unaudited), as follows:

	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017

Cost of revenues	$	1,127	$	538	$	3,019	$	1,548
Research and development		2,988		1,423		7,975		3,908
Selling and marketing		2,250		1,439		6,548		3,673
General and administrative		1,585		1,137		4,385		3,054

Total stock-based compensation expense	$	7,950	$	4,537	$	21,927	$	12,183

As of September 30, 2018 (unaudited), there was a total unrecognized compensation expense of $70,100 related to non‑vested equity‑based compensation arrangements granted under the Company’s Plans. These expenses are expected to be recognized during the period from October 1, 2018 through August 31, 2022.

BASIC AND DILUTED NET EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

BASIC AND DILUTED NET EARNINGS PER SHARE

NOTE 8:-

BASIC AND DILUTED NET EARNINGS PER SHARE

Basic net earnings per share is computed by dividing the net earnings by the weighted-average number of shares of common stock outstanding during the period.

No shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three and nine months ended September 30, 2018 (unaudited).

No shares were excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect for the three months ended September 30, 2017 (unaudited).

The total weighted average number of shares related to the outstanding stock options and RSUs, excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect was 263,355 for the nine months ended September 30, 2017 (unaudited).

The following table presents the computation of basic and diluted net earnings per share for the periods presented (in thousands, except per share data):

	Three months ended September 30				Nine months ended September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Numerator:
Net income	$	45,643	$	27,971	$	115,897	$	64,670

Denominator:
Shares used in computing net earnings per share of common stock, basic		45,601,540		42,433,648		45,025,661		41,831,400
Effect of stock-based awards		2,679,700		3,697,908		3,065,524		3,106,127
Shares used in computing net earnings per share of common stock, diluted		48,281,240		46,131,556		48,091,185		44,937,527

Basic net income per share	$	1.00	$	0.66	$	2.57	$	1.55
Diluted net income per share	$	0.95	$	0.61	$	2.41	$	1.44

INCOME TAXES

9 Months Ended

Sep. 30, 2018

Income Taxes

INCOME TAXES

NOTE 9:- INCOME TAXES

Taxes on income (tax benefit) are comprised as follows:

	Three months ended September 30						Nine months ended September 30,
	2018			2017			2018			2017
	(unaudited)						(unaudited)

Current year taxes	$	(10,524	)	$	878		$	1,773		$	2,906
Deferred tax income net, and others		(1,771	)		(787	)		(4,789	)		(3,390	)

Taxes on income (tax benefit)	$	(12,295	)	$	91		$	(3,016	)	$	(484	)

Deferred income taxes:

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax basis of assets and liabilities based on the tax rates anticipated to be in effect when the deferred taxes are expected to be paid or realized.

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

	September 30,		December 31,
	2018		2017
	(Unaudited)

Net assets in respect of:

Research and Development carryforward expenses	$	8,082	$	5,380
Stock based compensation		2,657		1,622
Allowances, provisions and others		2,479		1,338

Net deferred tax assets	$	13,218	$	8,340

Uncertain tax positions:

As of September 30, 2018, the Company recognized a total liability for uncertain tax positions in an immaterial amount.

On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") 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 beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings (the “E&P”) as of December 31, 2017.

The one-time transition tax is based on the Company’s total post-1986 earnings and profits (E&P), the tax on which the Company previously deferred from US income taxes under US law.

Additionally, the TCJA requires certain Global Intangible Low Taxed Income (“GILTI”) earned by controlled foreign corporations (“CFCs”) to be included in the gross income of the CFCs’ U.S. shareholder. GAAP allows the Company to either: (i) treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”); or (ii) factor such amounts into its measurement of deferred taxes (the “deferred method”).

In 2017, the Company calculated its best estimate of the impact of the TCJA in its year end income tax provision in accordance with its understanding of the TCJA and guidance available as of the date of the respective filing and as a result recorded $19.2 million as an additional income tax expense in the period in which the legislation was enacted.

In August and September 2018, the Internal Revenue Service (“IRS”) issued proposed regulations related to the one-time transition tax and GILTI, which the Company is in the process of evaluating. Due to the timing of the enactment and the complexity in applying the provisions of the TCJA, the provisional charge is subject to revisions as the Company continues to complete its analysis of the TCJA, collect and prepare necessary data, and interpret additional guidance issued by the U.S. Treasury Department, IRS, FASB, and other standard-setting and regulatory bodies.

As of September 30, 2018, upon further analyses of the TCJA and proposed regulations by the U.S. Department of the Treasury and the IRS, the Company changed its estimated provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings and, accordingly, reduced its December 31, 2017 provisional accrual by approximately $10.3 million, which is included as a component of income tax expense from continuing operations. The Company has elected to pay its transition tax over the eight-year period provided in the TCJA.

As of September 30, 2018, upon further analyses of the TCJA and proposed regulations by the U.S. Department of the Treasury and the IRS, the Company revisited its estimated impact of GILTI on the Company’s income tax provision and, accordingly, reduced by $3.9 million its accrual which has been recorded in prior interim periods in 2018. Consequently, the tax provision with respect to GILTI did not have a significant effect on the Company’s income statement for the nine-months period ended September 30, 2018. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the TCJA and the application of GAAP.

As of September 30, 2018, the Company has not completed its accounting for the estimated tax effects of the TCJA, including, but not limited to, the tax charge, which remains provisional as of September 30, 2018.

The final impact of the U.S. tax reform may differ, possibly materially, due to factors such as changes in interpretations and assumptions that the Company has made in its assessment, conclusion of the effects of the TCJA, including but not limited to, the GILTI provisions, further refinement of the Company’s calculations, regulations and additional guidance that may be issued by the U.S. government. As these various factors are finalized, any change will be recorded as an adjustment to the provision for, or benefit from, income taxes in the period in which the amounts are determined, not to exceed 12 months from the date of enactment of the TCJA.

On October 24, 2018, SolarEdge Technologies Ltd., 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 Encouragement of Capital Investments Law, 1959 with respect to its Benefited Enterprise until December 31, 2018. The Company is analyzing the effect of such approval for extended beneficial terms through December 31, 2018 and shall reflect such effect upon completion of its analysis.

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

9 Months Ended

Sep. 30, 2018

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

NOTE 10:-

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

For the three month period ended September 30, 2018 (unaudited) and 2017 (unaudited), the Company had one and two major customers that accounted for 15.7% and 21.6% of its consolidated revenues, respectively.

For the nine month period ended September 30, 2018 (unaudited) and 2017 (unaudited), the Company had one major customer that accounted for 17.3% and 12.5% of its consolidated revenues, respectively.

As of September 30, 2018 (unaudited) and December 31, 2017, two major customers accounted for approximately 34.1% and 35.2%, respectively, of the Company’s net accounts receivable.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 11:- SUBSEQUENT EVENTS

On October 4, 2018, the Company exercised its right to purchase all of the outstanding shares of Gamatronic (UK) Limited for the aggregate amount of approximately $1.3 million. This right was contemplated in the Acquisition of substantially all of the assets and activities of Gamatronic’s UPS business.

On October 17, 2018, the Company closed an acquisition of approximately 75% of Kokam Co., Ltd. (“Kokam”), a provider of Lithium-ion cells, batteries and energy storage solutions. The acquisition was made pursuant to several Share Purchase Agreements with different parties (the “SPAs”). The SPAs became effective October 11, 2018, and the Company’s total consideration was approximately $88 million, including transaction related expenses. The Company determined that such acquisition will be accounted as a business combination in accordance with ASC 805 "Business Combinations” and currently assessing the accounting consequences of the acquisition, that will be reflected in 2018 annual consolidated financial statement.

GENERAL (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenue from Contracts with Customers

The effect of the changes made to the consolidated January 1, 2018 balance sheets following the adoption of ASC 606, Revenue - Revenue from Contracts with Customers were as follows:

	Balance as of December 31, 2017		Adjustments due following adoption of ASC 606			Balance as of January 1, 2018
			Unaudited			Unaudited
Deferred Revenues - Current term	$	2,559	$	(89	)	$	2,470
Deferred Revenues - Long term		31,453		3,961			35,414
Retained earnings	$	66,172	$	(3,872	)	$	62,300

Schedule of Impact of Adoption of Financial Statements

Company’s condensed consolidated statements of income, cash flows, and balance sheets were as follows:

	Three months ended September 30, 2018 (Unaudited)
	As Reported		Balances before adoption of ASC 606		Effect of change

Statements of operations
Revenues	$	236,578	$	236,571	$	7
Financial expenses (income), net		689		48		641
Net income		45,643		46,277		(634	)

Cash flows
Net income		45,643		46,277		(634	)
Changes in assets and liabilities:
Deferred revenues	$	8,456	$	7,822	$	634

	Nine months ended September 30, 2018 (Unaudited)
	As Reported		Balances before adoption of ASC 606		Effect of change
Statements of operations
Revenues	$	673,567	$	673,509	$	58
Financial expenses (income), net		2,585		865		1,720
Net income		115,897		117,559		(1,662	)

Cash flows
Net income		115,897		117,559		(1,662	)
Changes in assets and liabilities:
Deferred revenues		21,576		19,914		1,662

	As of September 30, 2018
	As Reported			Balances before adoption of ASC 606			Effect of change
Balance Sheets
Deferred Revenues - Current		(5,795	)		(5,873	)		78
Deferred Revenues - Long term		(53,663	)		(48,051	)		(5,612	)
Retained earnings	$	(178,197	)	$	(182,069	)	$	3,872

Schedule of Fair Value of Derivative Instruments

The fair value of the Company’s outstanding derivative instruments is as follows:

	Balance as of September 30,			Balance as of December 31,
	2018			2017
	(unaudited)
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	45		$	-
Derivatives not designated as cash flow hedging instruments:
Foreign exchange option contracts		202			221

Total		247			221

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts		(9	)		-
Derivatives not designated as cash flow hedging instruments:
Foreign exchange option contracts		(1	)		(285	)
Foreign exchange forward contracts		-			(116	)

Total	$	(10	)	$	(401	)

Schedule of Unrealized Gains (Losses) on Derivatives

The net increase in unrealized gains recognized in “accumulated other comprehensive loss” on derivatives, net of tax effect, is as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)

Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	45	$	-	$	45	$	-
Foreign exchange forward contracts	$	-	$	-	$	-	$	975

Schedule of Derivative Gains (Losses) Reclassified From OCI Into Income

The net gains reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Three months ended					Nine months ended
	September 30,					September 30,
	2018			2017		2018			2017
	(unaudited)					(unaudited)

Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	(9	)	$	-	$	(9	)	$	-
Foreign exchange forward contracts	$	-		$	-	$	-		$	(994	)

Schedule of Changes in AOCI

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended September 30, 2018 (unaudited):

	Unrealized gains on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Unrealized gains on foreign currency translation			Total

Beginning balance	$	(949	)	$	-		$	(189	)	$	(1,138	)
Net other comprehensive income before reclassifications		32			45			87			164
Net gains reclassified from accumulated other comprehensive loss		-			(9	)		-			(9	)
Net current period other comprehensive income		32			36			87			155

Ending balance	$	(917	)	$	36		$	(102	)	$	(983	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2018 (unaudited):

	Unrealized losses on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Unrealized gains on foreign currency translation			Total

Beginning balance	$	(433	)		-		$	(178	)	$	(611	)
Net other comprehensive income (loss) before reclassifications		(484	)		45			76			(363	)
Net gains reclassified from accumulated other comprehensive loss		-			(9	)		-			(9	)
Net current period other comprehensive income (loss)		(484	)		36			76			(372	)

Ending balance	$	(917	)	$	36		$	(102	)	$	(983	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended September 30, 2017 (unaudited):

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges		Unrealized gains (losses) on foreign currency translation			Total

Beginning balance	$	(103	)		-	$	(264	)	$	(367	)
Net other comprehensive income before reclassifications		54			-		16			70

Ending balance	$	(49	)		-	$	(248	)	$	(297	)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the nine months ended September 30, 2017 (unaudited):

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains (losses) on cash flow hedges			Unrealized gains (losses) on foreign currency translation			Total

Beginning balance	$	(136	)	$	19		$	(207	)	$	(324	)
Net other comprehensive income (loss) before reclassifications		87			975			(41	)		1,021
Net gains reclassified from accumulated other comprehensive income (loss)		-			(994	)		-			(994	)
Net current period other comprehensive income (loss)		87			(19	)		(41	)		27

Ending balance	$	(49	)		-		$	(248	)	$	(297	)

Schedule of Reclassifications out of AOCI

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) (unaudited):

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Statements of Income
	Three months ended September 30,
	2018		2017

Unrealized gains on cash flow hedges, net	$	1	$	-	Cost of revenues
		6		-	Research and development
		1		-	Sales and marketing
		1		-	General and administrative

		9		-	Total, before income taxes

		-		-	Income tax expense

	$	9	$	-	Total, net of income taxes

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) (unaudited):

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Statements of Income
	Nine months ended September 30,
	2018		2017

Unrealized gains on cash flow hedges, net	$	1	$	166	Cost of revenues
		6		570	Research and development
		1		151	Sales and marketing
		1		153	General and administrative

		9		1,040	Total, before income taxes

		-		46	Income tax expense

	$	9	$	994	Total, net of income taxes

BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of Consideration Transferred

The Acquisition Date fair value of the consideration transferred totaled to $12,083, which consisted of the following:

Cash	$	11,223
Earn-out provision (*)		860
Total	$	12,083

Schedule of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date:

	July 1, 2018

Inventory	$	6,020
Fixes Assets		291
Current Technology		2,048
Customer relationships		810
Backlog		193
Total identifiable assets acquired		9,362

Warranty provision		(61	)

Net identifiable assets acquired		9,301

Goodwill		2,782

Net assets acquired	$	12,083

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

	September 30, 2018		December 31, 2017
	(unaudited)

Raw materials	$	33,955	$	25,887
Work in process		1,892		-
Finished goods		71,332		57,105

	$	107,179	$	82,992

WARRANTY OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2018

Product Warranties Disclosures [Abstract]

Schedule of Warranty Obligations

Changes in the Company’s product warranty liability for the nine months ended September 30, 2018 and 2017 were as follows:

	Nine months ended September 30,
	2018			2017
	(unaudited)

Balance, at beginning of period	$	78,811		$	58,375
Additions and adjustments to cost of revenues		47,819			23,758
Utilization and current warranty expenses		(18,911	)		(10,566	)

Balance, at end of period		107,719			71,567
Less current portion		(21,660	)		(12,942	)

Long term portion	$	86,059		$	58,625

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of September 30, 2018 (unaudited) by level within the fair value hierarchy:

	Balance as of		Fair value measurements
Description	September 30, 2018		Level 1		Level 2		Level 3

Assets:
Cash equivalents:
Money market mutual funds	$	20,685	$	20,685		-		-

Derivative instruments assets, net	$	237		-	$	237		-

Short-term marketable securities:
Corporate bonds	$	137,667		-	$	137,667		-
Governmental bonds	$	10,585		-	$	10,585		-

Long-term marketable securities:
Corporate bonds	$	100,546		-	$	100,546		-
Governmental bonds	$	1,694		-	$	1,694		-

Liabilities:
Short-term Earn-out provision	$	-		-		-	$	(528	)

Long-term Earn-out provision	$	-		-		-	$	(332	)

The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2017 by level within the fair value hierarchy:

	Balance as of			Fair value measurements
Description	December 31, 2017			Level 1		Level 2			Level 3

Cash equivalents:
Money market mutual funds	$	6,163		$	6,163		-			-

Derivative instruments liability, net	$	(180	)		-	$	(180	)		-

Short-term marketable securities:
Corporate bonds	$	68,272			-	$	68,272			-
Governmental bonds	$	8,992			-	$	8,992			-

Long-term marketable securities:
Corporate bonds	$	95,160			-	$	95,160			-
Governmental bonds	$	7,960			-	$	7,960			-

- 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

STOCK CAPITAL (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Composition of Common Stock Capital

Authorized

Issued and outstanding

Number of shares

September 30,

2018

December 31, 2017

September 30,

2018

December 31, 2017

(unaudited)

Stock of $0.0001 par value:

Common stock

125,000,000

45,750,400

43,812,601

Schedule of Stock Option Activity

A summary of the activity in the share options granted to employees and members of the board of directors for the six months ended September 30, 2018 (unaudited) and related information follows:

						Weighted
						average
				Weighted		remaining
	Number			average		contractual		Aggregate
	of			exercise		term		intrinsic
	Options			price		in years		Value

Outstanding as of December 31, 2017		3,524,310			7.40		6.35		106,251
Granted		180,983			38.05
Exercised		(1,270,943	)		4.89
Forfeited or expired		(22,746	)		8.44
Outstanding as of September 30, 2018		2,411,604			11.01		6.44		64,307

Vested and expected to vest as of September 30, 2018		2,357,632			10.92		6.42		63,098

Exercisable as of September 30, 2018		1,698,620			7.55		5.79		51,134

Schedule of RSU Activity

A summary of the activity in the RSUs granted to employees and members of the board of directors for the nine months ended September 30, 2018 (unaudited) is as follows:

	No. of RSUs			Weighted average grant date fair value
Unvested as of December 31, 2017		2,087,992			24.33
Granted		713,595			48.07
Vested		(586,290	)		23.15
Forfeited		(157,723	)		27.99
Unvested as of September 30, 2018		2,057,574			32.62

Schedule of Options and RSUs Granted to Non-Employee Consultants

The Company has granted options and RSUs to purchase common shares to non-employee consultants as of September 30, 2018 (unaudited) as follows:

	Outstanding				Exercisable
	as of				as of
Issuance	September 30,		Exercise		September 30,		Exercisable
Date	2018		price		2018		Through

January 27, 2014		138		3.51		27	January 27, 2024
May 1, 2014		455		3.51		455	May 1, 2024
September 17, 2014		3,936		3.96		3,936	September 17, 2024
October 29, 2014		1,949		5.01		505	October 29, 2024
August 19, 2015		5,251		0.00		-	-
November 8, 2015		667		0.00		-	-
April 18, 2016		625		0.00		-	-
July 11, 2016		1,001		0.00		-	-
September 21, 2016		2,000		15.34		-	September 21, 2026
September 21, 2016		3,500		0.00		-	-
March 15, 2017		5,500		0.00		-	-
March 15, 2017		5,500		13.70		-	March 15, 2027
March 27, 2017		2,750		0.00		-	-
November 20, 2017		4,876		0.00		-	-
January 2, 2018		5,749		0.00		-	-
July 1, 2018		5,034		0.00		-	-

		48,931				4,923

Schedule of Recognized Stock-Based Compensation Expense

	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017

Cost of revenues	$	1,127	$	538	$	3,019	$	1,548
Research and development		2,988		1,423		7,975		3,908
Selling and marketing		2,250		1,439		6,548		3,673
General and administrative		1,585		1,137		4,385		3,054

Total stock-based compensation expense	$	7,950	$	4,537	$	21,927	$	12,183

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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+ Details

BASIC AND DILUTED NET EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2018

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 net earnings per share for the periods presented (in thousands, except per share data):

	Three months ended September 30				Nine months ended September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Numerator:
Net income	$	45,643	$	27,971	$	115,897	$	64,670

Denominator:
Shares used in computing net earnings per share of common stock, basic		45,601,540		42,433,648		45,025,661		41,831,400
Effect of stock-based awards		2,679,700		3,697,908		3,065,524		3,106,127
Shares used in computing net earnings per share of common stock, diluted		48,281,240		46,131,556		48,091,185		44,937,527

Basic net income per share	$	1.00	$	0.66	$	2.57	$	1.55
Diluted net income per share	$	0.95	$	0.61	$	2.41	$	1.44

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2018

Income Taxes Tables

Schedule of Taxes on Income

Taxes on income (tax benefit) are comprised as follows:

	Three months ended September 30						Nine months ended September 30,
	2018			2017			2018			2017
	(unaudited)						(unaudited)

Current year taxes	$	(10,524	)	$	878		$	1,773		$	2,906
Deferred tax income net, and others		(1,771	)		(787	)		(4,789	)		(3,390	)

Taxes on income (tax benefit)	$	(12,295	)	$	91		$	(3,016	)	$	(484	)

Schedule of Deferred Tax Assets and Liabilities

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

	September 30,		December 31,
	2018		2017
	(Unaudited)

Net assets in respect of:

Research and Development carryforward expenses	$	8,082	$	5,380
Stock based compensation		2,657		1,622
Allowances, provisions and others		2,479		1,338

Net deferred tax assets	$	13,218	$	8,340

GENERAL (Narrative) (Details) € in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017	Sep. 30, 2017 USD ($)	Dec. 31, 2018 USD ($)	Oct. 17, 2018	Sep. 30, 2018 EUR (€)
Organization Consolidation and Presentation of Financial Statements [Line Items]
Accounts receivable pledged to offset accounts payable	$ 874		$ 874
Accounting Standards Update 2016-02 [Member] \| Forecast [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Lease assets						$ 39,000
Lease liabilities						$ 39,000
Subsequent Event [Member] \| Kokam [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Percentage of acquisition							75.00%
Derivatives not designated cash flow hedging instrument [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Net gain (loss) on derivatives	(17)	$ 492	608		$ 1,164
Derivatives designated as cash flow hedging instruments [Member] \| Foreign exchange forward contracts [Member] \| Put Option [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Derivative asset, notional amount \| €								€ 7,500,000
Derivatives designated as cash flow hedging instruments [Member] \| Foreign exchange forward contracts [Member] \| Call Option [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Derivative asset, notional amount	$ 6,000,000		$ 6,000,000
Accounts Payable [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Concentration risk (as a percent)			60.60%	51.60%

GENERAL (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 02, 2018	Dec. 31, 2017
Deferred Revenues - Current term	$ 5,795		$ 2,559
Deferred Revenues - Long term	53,663		31,453
Retained earnings	$ 178,197		66,172
Adjustments due following adoption of ASC 606 [Member]
Deferred Revenues - Current term			(89)
Deferred Revenues - Long term			3,961
Retained earnings			$ (3,872)
After Adjustment [Member]
Deferred Revenues - Current term		$ 2,470
Deferred Revenues - Long term		35,414
Retained earnings		$ 62,300

GENERAL (Schedule of Impact of Adoption of Financial Statements) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Statements of operations
Revenues	$ 236,578	$ 166,552	$ 673,567	$ 417,705
Financial expenses (income), net	(689)	2,666	(2,585)	7,671
Net income	45,643	27,971	115,897	64,670
Cash flows
Net income	45,643	$ 27,971	115,897	64,670
Changes in assets and liabilities:
Deferred revenues	8,456		21,576	$ 9,699
Balance Sheets
Deferred Revenues - Current	(5,795)		(5,795)
Deferred Revenues - Long term	(53,663)		(53,663)		$ (31,453)
Retained earnings	(178,197)		(178,197)		$ (66,172)
Balances before adoption of ASC 606 [Member]
Statements of operations
Revenues	236,571		673,509
Financial expenses (income), net	48		865
Net income	46,277		117,559
Cash flows
Net income	46,277		117,559
Changes in assets and liabilities:
Deferred revenues	7,822		19,914
Balance Sheets
Deferred Revenues - Current	(5,873)		(5,873)
Deferred Revenues - Long term	(48,051)		(48,051)
Retained earnings	(182,069)		(182,069)
Effect of change [Member]
Statements of operations
Revenues	7		58
Financial expenses (income), net	641		1,720
Net income	(634)		(1,662)
Cash flows
Net income	(634)		(1,662)
Changes in assets and liabilities:
Deferred revenues	634		1,662
Balance Sheets
Deferred Revenues - Current	78		78
Deferred Revenues - Long term	(5,612)		(5,612)
Retained earnings	$ 3,872		$ 3,872

GENERAL (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivative assets:
Derivative assets	$ 247	$ 221
Derivative liabilities:
Derivative liabilities	(10)	(401)
Derivatives designated as cash flow hedging instruments [Member] \| Foreign exchange option contracts [Member]
Derivative assets:
Derivative assets	45
Derivative liabilities:
Derivative liabilities	(9)
Derivatives designated as cash flow hedging instruments [Member] \| Foreign exchange forward contracts [Member]
Derivative liabilities:
Derivative liabilities		(116)
Derivatives not designated cash flow hedging instrument [Member] \| Foreign exchange option contracts [Member]
Derivative assets:
Derivative assets	202	221
Derivative liabilities:
Derivative liabilities	$ (1)	$ (285)

GENERAL (Schedule of Unrealized Gains (Losses) on Derivatives) (Details) - Derivatives designated as cash flow hedging instruments [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign exchange forward contracts [Member]
Unrealized gain (loss) on derivatives				$ 975
Foreign exchange option contracts [Member]
Unrealized gain (loss) on derivatives	$ 45		$ 45

GENERAL (Schedule of Derivative Gains (Losses) Reclassified From OCI Into Income) (Details) - Derivatives designated as cash flow hedging instruments [Member] - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign exchange forward contracts [Member]
Net gain (loss) reclassified from accumulated other comprehensive income (loss)					$ (994)
Foreign exchange option contracts [Member]
Net gain (loss) reclassified from accumulated other comprehensive income (loss)	$ (9)			$ (9)

GENERAL (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Beginning balance	$ (1,138)	$ (367)	$ (611)	$ (324)
Net other comprehensive income (loss) before reclassifications	164	70	(363)	1,021
Net gains reclassified from accumulated other comprehensive loss	(9)		(9)	(994)
Net current period other comprehensive income (loss)	155	70	(372)	27
Ending balance	(983)	(297)	(983)	(297)
Unrealized gains (losses) on available-for-sale marketable securities [Member]
Beginning balance	(949)	(103)	(433)	(136)
Net other comprehensive income (loss) before reclassifications	32	54	(484)	87
Net gains reclassified from accumulated other comprehensive loss
Net current period other comprehensive income (loss)	32		(484)	87
Ending balance	(917)	(49)	(917)	(49)
Unrealized gains on cash flow hedges [Member]
Beginning balance				19
Net other comprehensive income (loss) before reclassifications	45		45	975
Net gains reclassified from accumulated other comprehensive loss	(9)		(9)	(994)
Net current period other comprehensive income (loss)	36		36	(19)
Ending balance	36		36
Unrealized gains on foreign currency translation [Member]
Beginning balance	(189)	(264)	(178)	(207)
Net other comprehensive income (loss) before reclassifications	87	16	76	(41)
Net gains reclassified from accumulated other comprehensive loss
Net current period other comprehensive income (loss)	87		76	(41)
Ending balance	$ (102)	$ (248)	$ (102)	$ (248)

GENERAL (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Cost of revenues	$ 158,596	$ 108,498	$ 434,042	$ 273,909
Research and development, net	20,109	14,363	57,535	38,546
Sales and marketing	16,938	13,217	49,097	35,953
General and administrative	6,898	5,078	17,427	12,782
Total, before income taxes	33,348	28,062	112,881	64,186
Income tax expense (benefit)	(12,295)	91	(3,016)	(484)
Total, net of income taxes	45,643	27,971	115,897	64,670
Unrealized gains on cash flow hedges, net [Member] \| Amount Reclassified from Accumulated Other Comprehensive Loss [Member]
Cost of revenues	1		1	166
Research and development, net	6		6	570
Sales and marketing	1		1	151
General and administrative	1		1	153
Total, before income taxes	9		9	1,040
Income tax expense (benefit)				(46)
Total, net of income taxes	$ 9		$ 9	$ 994

- Definition

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

+ References + Details

BUSINESS COMBINATION (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Jul. 02, 2018
Percentage of earn out provision first year		50.00%
Percentage of earn out provision second year		33.00%
Acquisition related costs	$ 28
Technology [Member]
Useful life of intangible assets	7 years
Customer Relationships [Member]
Useful life of intangible assets	7 years
Backlog [Member]
Useful life of intangible assets	2 months
Goodwill
Useful life of intangible assets	10 years

BUSINESS COMBINATION (Schedule of Consideration Transferred) (Details) - Gamatronic Ltd [Member]
$ in Thousands

Jul. 02, 2018

USD ($)

ScheduleOfBusinessAcquisitionsByAcquisitionLineItems [Line Items]

Cash

$ 11,223

Earn-out provision

860

^[1]

Total

$ 12,083

[1]

BUSINESS COMBINATION (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jul. 02, 2018
ScheduleOfBusinessAcquisitionsByAcquisitionLineItems [Line Items]
Goodwill	$ 2,782
Gamatronic Ltd [Member]
ScheduleOfBusinessAcquisitionsByAcquisitionLineItems [Line Items]
Inventory		$ 6,020
Fixes Assets		291
Current Technology		2,048
Customer relationships		810
Backlog		193
Total identifiable assets acquired		9,362
Warranty provision		(61)
Net identifiable assets acquired		9,301
Goodwill		2,782
Net assets acquired		$ 12,083

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 33,955	$ 25,887
Work in process	1,892
Finished goods	71,332	57,105
Inventories	$ 107,179	$ 82,992

WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	9 Months Ended
WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Changes in the Company's product warranty liability
Balance, at beginning of period	$ 78,811	$ 58,375
Additions and adjustments to cost of revenues	47,819	23,758
Utilization and current warranty expenses	(18,911)	(10,566)
Balance, at end of period	107,719	71,567
Less current portion	(21,660)	(12,942)
Long term portion	$ 86,059	$ 58,625

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - 9 months ended Sep. 30, 2018 € in Thousands, $ in Thousands	USD ($)	EUR (€)
Non-cancelable purchase obligations	$ 278,024
Provision for contractual inventory purchase obligations	1,954
Contractual obligations for capital expenditures	36,153
Lawsuit claims	2,481
Damages from Product Defects [Member]
Litigation settlement	5,800
Damages from Product Defects [Member] \| Euro [Member]
Litigation settlement \| €		€ 5,000
Office Rent Lease Agreements [Member]
Guarantees amount	1,398
Customs Transactions [Member]
Guarantees amount	56
Credit Card Limits [Member]
Guarantees amount	176
Securing Projects with Customers [Member]
Guarantees amount	$ 366

STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 21,927	$ 12,183
Unrecognized compensation expense	$ 70,100
2007 Plan, Transferred to 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	379,358
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options reserved for issuance under the plan	8,080,717
Number of options available for future grant under the plan	3,453,698
2015 Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase percentage	5.00%
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options reserved for issuance under the plan	1,739,280
Number of options available for future grant under the plan	1,415,938
Maximum number of excess shares authorized	487,643
Number of Common stock purchased	323,342
Maximum percentage of salary	10.00%
Maximum amount authorized per person	$ 10
Maximum percentage of common stock	85.00%
ESPP [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase percentage	1.00%
Option [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	10,000,000
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 58,278
Weighted average grant date fair value of options granted	$ 20.83
Stock-based compensation	$ 1,070	$ 582

STOCK CAPITAL (Schedule of Composition of Common Stock Capital) (Details) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Common stock capital
Par value	$ 0.0001	$ 0.0001
Authorized	125,000,000	125,000,000
Common stock, issued shares	45,750,400	43,812,601
Common stock, outstanding shares	45,750,400	43,812,601

STOCK CAPITAL (Schedule of Stock Option Activity) (Details) - Option [Member] - Employees and Members of Board of Directors [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares
Number of Options
Outstanding as of December 31, 2017 \| shares	3,524,310
Granted \| shares	180,983
Exercised \| shares	(1,270,943)
Forfeited or expired \| shares	(22,746)
Outstanding as of September 30, 2018 \| shares	2,411,604
Vested and expected to vest as of September 30, 2018 \| shares	2,357,632
Exercisable as of September 30, 2018 \| shares	1,698,620
Weighted average exercise price
Outstanding as of December 31, 2017 \| $ / shares	$ 7.40
Granted \| $ / shares	38.05
Exercised \| $ / shares	4.89
Forfeited or expired \| $ / shares	8.44
Outstanding as of September 30, 2018 \| $ / shares	11.01
Vested and expected to vest as of September 30, 2018 \| $ / shares	10.92
Exercisable as of September 30, 2018 \| $ / shares	$ 7.55
Weighted average remaining contractual term in years
Outstanding as of December 31, 2017	6 years 4 months 6 days
Ountstanding as of September 30, 2018	6 years 5 months 9 days
Vested and expected to vest as of September 30, 2018	6 years 5 months 1 day
Exercisable as of September 30, 2018	5 years 9 months 14 days
Aggregate intrinsic Value
Outstanding as of December 31, 2017 \| $	$ 106,251
Outstanding as of September 30, 2018 \| $	64,307
Vested and expected to vest as of September 30, 2018 \| $	63,098
Exercisable as of September 30, 2018 \| $	$ 51,134

STOCK CAPITAL (Schedule of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] - Employees and Members of Board of Directors [Member]	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Number of RSUs
Unvested as of December 31, 2017 \| shares	2,087,992
Granted \| shares	713,595
Vested \| shares	(586,290)
Forfeited \| shares	(157,723)
Unvested as of September 30, 2018 \| shares	2,057,574
Weighted average grant date fair value
Unvested as of December 31, 2017 \| $ / shares	$ 24.33
Granted \| $ / shares	48.07
Vested \| $ / shares	23.15
Forfeited \| $ / shares	27.99
Unvested as of September 30, 2018 \| $ / shares	$ 32.62

STOCK CAPITAL (Schedule of Options and RSUs Granted to Non-Employee Consultants) (Details) - Options And RSUs [Member] - Nonemployee Consultants [Member]	Sep. 30, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	48,931
Exercisable at the end of the period	4,923
January 27, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	138
Exercise price \| $ / shares	$ 3.51
Exercisable at the end of the period	27
May 1, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	455
Exercise price \| $ / shares	$ 3.51
Exercisable at the end of the period	455
September 17, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,936
Exercise price \| $ / shares	$ 3.96
Exercisable at the end of the period	3,936
October 29, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	1,949
Exercise price \| $ / shares	$ 5.01
Exercisable at the end of the period	505
August 19, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,251
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
November 8, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	667
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
April 18, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	625
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
July 11, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	1,001
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
September 21, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	2,000
Exercise price \| $ / shares	$ 15.34
Exercisable at the end of the period
September 21, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,500
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
March 15, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,500
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
March 15, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,500
Exercise price \| $ / shares	$ 13.7
Exercisable at the end of the period
March 27, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	2,750
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
November 20, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	4,876
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
January 2, 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,749
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period
July 1, 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,034
Exercise price \| $ / shares	$ 0.00
Exercisable at the end of the period

STOCK CAPITAL (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 7,950	$ 4,537	$ 21,927	$ 12,183
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,127	538	3,019	1,548
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,988	1,423	7,975	3,908
Selling and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,250	1,439	6,548	3,673
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,585	$ 1,137	$ 4,385	$ 3,054

BASIC AND DILUTED NET EARNINGS PER SHARE (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017 shares
Earnings Per Share [Abstract]
Anti-dilutive securities	263,355

BASIC AND DILUTED NET EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income	$ 45,643	$ 27,971	$ 115,897	$ 64,670
Denominator:
Shares used in computing net earnings per share of common stock, basic	45,601,540	42,433,648	45,025,661	41,831,400
Effect of stock-based awards	2,679,700	3,697,908	3,065,524	3,106,127
Shares used in computing net earnings per share of common stock, diluted	48,281,240	46,131,556	48,091,185	44,937,527
Basic net income per share	$ 1.00	$ 0.66	$ 2.57	$ 1.55
Diluted net income per share	$ 0.95	$ 0.61	$ 2.41	$ 1.44

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

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

+ References + Details

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Additional income tax expense	$ 19,200
Deferred tax expense	10,300
Decrease in deferred tax assets	$ 3,900

INCOME TAXES (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Taxes Schedule Of Taxes On Income Details
Current period taxes	$ (10,524)	$ 878	$ 1,773	$ 2,906
Deferred tax income net, and others	(1,771)	(787)	(4,789)	(3,390)
Taxes on income (tax benefit)	$ (12,295)	$ 91	$ (3,016)	$ (484)

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Net assets in respect of:
Research and Development carryforward expenses	$ 8,082	$ 5,380
Stock based compensation	2,657	1,622
Allowances, provisions and others	2,479	1,338
Net deferred tax assets	$ 13,218	$ 8,340

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenues [Member] \| One Major Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	15.70%	21.60%	17.30%	12.50%
Revenues [Member] \| Two Major Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	15.70%	21.60%
Accounts Receivable [Member] \| Two Major Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage			34.10%		35.20%

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($) $ in Thousands	Oct. 04, 2018	Oct. 17, 2018	Oct. 11, 2018
Kokam [Member]
Percentage of acquisition		75.00%
Amount of investment			$ 88,000
Gamatronic Ltd [Member]
Cash purchase price	$ 1,300

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 20,685	$ 6,163
Derivative instruments assets, net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	237
Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities		(180)
Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	137,667	68,272
Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	10,585	8,992
Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	100,546	95,160
Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	1,694	7,960
Short-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Long-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 1 [Member] \| Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	20,685	6,163
Level 1 [Member] \| Derivative instruments assets, net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] \| Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 1 [Member] \| Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] \| Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] \| Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] \| Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] \| Short-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 1 [Member] \| Long-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 2 [Member] \| Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 2 [Member] \| Derivative instruments assets, net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	237
Level 2 [Member] \| Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities		(180)
Level 2 [Member] \| Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	137,667	68,272
Level 2 [Member] \| Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	10,585	8,992
Level 2 [Member] \| Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	100,546	95,160
Level 2 [Member] \| Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	1,694	7,960
Level 2 [Member] \| Short-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 2 [Member] \| Long-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 3 [Member] \| Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Derivative instruments assets, net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities
Level 3 [Member] \| Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] \| Short-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	(528)
Level 3 [Member] \| Long-Term Earn-Out Provision [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of liabilities	$ (332)