0001178913-22-000760 | 10-K | XBRL Viewer | Solaredge Technologies INC

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 530,089	$ 827,146
Marketable securities	167,728	143,687
Trade receivables, net of allowances of $2,626 and $2,886, respectively	456,339	218,706
Inventories, net	380,143	331,696
Prepaid expenses and other current assets	176,992	198,106
Total current assets	1,711,291	1,719,341
LONG-TERM ASSETS:
Marketable securities	482,228	147,434
Deferred tax assets, net	27,572	11,676
Property, plant and equipment, net	410,379	303,408
Operating lease right-of-use assets, net	47,137	41,600
Intangible assets, net	58,861	67,818
Goodwill	129,629	140,479
Other long-term assets	24,963	5,353
Total long-term assets	1,180,769	717,768
Total assets	2,892,060	2,437,109
CURRENT LIABILITIES:
Trade payables, net	252,068	162,051
Employees and payroll accruals	74,465	63,738
Warranty obligations	71,480	62,614
Deferred revenues and customers advances	17,789	24,648
Accrued expenses and other current liabilities	109,379	123,048
Total current liabilities	525,181	436,099
LONG-TERM LIABILITIES:
Convertible senior notes, net	621,535	573,350
Warranty obligations	193,680	142,380
Deferred revenues	151,556	115,372
Finance lease liabilities	40,508	26,173
Operating lease liabilities	38,912	35,194
Other long-term liabilities	10,649	22,784
Total long-term liabilities	1,056,840	915,253
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of December 31, 2021 and December 31, 2020; issued and outstanding: 52,815,395 and 51,560,936 shares as of December 31, 2021 and December 31, 2020, respectively	5	5
Additional paid-in capital	687,295	603,891
Accumulated other comprehensive income (loss)	(27,319)	3,857
Retained earnings	650,058	478,004
Total stockholders' equity	1,310,039	1,085,757
Total liabilities and stockholders' equity	$ 2,892,060	$ 2,437,109

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowances of trade receivable	$ 2,626	$ 2,886
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	125,000,000	125,000,000
Common stock, issued shares	52,815,395	51,560,936
Common stock, outstanding shares	52,815,395	51,560,936

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenues	$ 1,963,865	$ 1,459,271	$ 1,425,660
Cost of revenues	1,334,547	997,912	946,322
Gross profit	629,318	461,359	479,338
Operating expenses:
Research and development	219,633	163,123	121,351
Sales and marketing	119,000	95,985	87,984
General and administrative	82,196	63,119	49,361
Other operating expenses (income), net	1,350	(3,429)	30,696
Total operating expenses	422,179	318,798	289,392
Operating income	207,139	142,561	189,946
Financial income (expense), net	(19,915)	21,105	(11,343)
Income before income taxes	187,224	163,666	178,603
Income taxes	18,054	23,344	33,646
Net income	169,170	140,322	144,957
Net loss attributable to Non-controlling interests	0	0	1,592
Net income attributable to SolarEdge Technologies, Inc.	$ 169,170	$ 140,322	$ 146,549
Net basic earnings per share of common stock	$ 3.24	$ 2.79	$ 3.06
Net diluted earnings per share of common stock	$ 3.06	$ 2.66	$ 2.90
Weighted average number of shares used in computing net basic earnings per share of common stock	52,202,182	50,217,330	47,918,938
Weighted average number of shares used in computing net diluted earnings per share of common stock	55,971,030	52,795,475	50,195,661

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements Of Comprehensive Income
Net income	$ 169,170	$ 140,322	$ 144,957
Other comprehensive income (loss), net of tax:
Net change related to available-for-sale securities	(4,949)	(24)	920
Net change related to cash flow hedges	874	0	0
Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment nature	(17,420)	0	0
Foreign currency translation adjustments, net	(9,681)	5,690	(2,205)
Total other comprehensive income (loss)	(31,176)	5,666	(1,285)
Comprehensive income	137,994	145,988	143,672
Comprehensive loss attributable to Non-controlling interests	0	0	981
Comprehensive income attributable to SolarEdge Technologies, Inc.	$ 137,994	$ 145,988	$ 144,653

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

Common Stock [Member]

Additional paid in capital [Member]

Accumulated other comprehensive Income (loss) [Member]

Retained earnings [Member]

Parent [Member]

Noncontrolling Interest [Member]

Total

Balance at Dec. 31, 2018

$ 5

$ 371,794

$ (524)

$ 191,133

$ 562,408

$ 8,318

$ 570,726

Balance (in shares) at Dec. 31, 2018

46,052,802

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

$ 0

^[1]

3,498

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

1,691,896

Issuance of Common stock under employee stock purchase plan

$ 0

^[1]

5,568

Issuance of Common stock under employee stock purchase plan, share

142,713

Equity based compensation expenses to employees and nonemployees

60,353

Treasury Stock

$ 0

^[1]

(2)

Treasury Stock, shares

(183,395)

Issuance of Common stock upon business combination

$ 0

^[1]

34,601

Issuance of Common stock upon business combination, shares

1,194,046

Non-controlling interests related to business combination

67,734

Change in non-controlling interests

(20)

(73,479)

(73,499)

Other comprehensive income (loss) adjustments

(1,285)

(981)

(2,266)

Net income

146,549

(1,592)

144,957

Balance at Dec. 31, 2019

$ 5

475,792

(1,809)

337,682

811,670

Balance (in shares) at Dec. 31, 2019

48,898,062

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

$ 0

^[1]

16,671

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

2,579,004

Issuance of Common stock under employee stock purchase plan

$ 0

^[1]

7,783

Issuance of Common stock under employee stock purchase plan, share

83,870

Equity based compensation expenses to employees and nonemployees

67,309

Issuance of Common stock upon business combination

Equity component of convertible senior notes, net

36,336

Other comprehensive income (loss) adjustments

5,666

Net income

(140,322)

$ 0

140,322

Balance at Dec. 31, 2020

$ 5

603,891

3,857

478,004

1,085,757

Balance (in shares) at Dec. 31, 2020

51,560,936

Cumulative effect of adopting new accounting standard

(36,336)

2,884

(33,452)

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

6,486

Issuance of Common Stock upon exercise of employee and non-employee stock options, shares

1,204,861

Issuance of Common stock under employee stock purchase plan

10,661

Issuance of Common stock under employee stock purchase plan, share

49,598

Equity based compensation expenses to employees and nonemployees

102,593

Issuance of Common stock upon business combination

Other comprehensive income (loss) adjustments

(31,176)

Net income

169,170

Balance at Dec. 31, 2021

$ 5

$ 687,295

$ (27,319)

$ 650,058

$ 1,310,039

Balance (in shares) at Dec. 31, 2021

52,815,395

[1]	Represents an amount less than $1.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows provided by operating activities:
Net income	$ 169,170	$ 140,322	$ 144,957
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	29,359	22,355	17,261
Amortization of intangible assets	10,176	9,479	9,634
Amortization of debt discount and debt issuance costs	2,903	3,185	0
Amortization of premium and accretion of discount on available-for-sale marketable securities, net	9,462	1,168	92
Stock-based compensation expenses	102,593	67,309	60,353
Deferred income taxes, net	(12,045)	(2,738)	(6,037)
Exchange rate fluctuations and other items, net	20,697	3,860	8,174
Changes in assets and liabilities:
Inventories, net	(43,051)	(149,661)	(22,544)
Prepaid expenses and other assets	(39,444)	(3,276)	(67,323)
Trade receivables, net	(247,723)	86,538	(124,071)
Trade payables, net	91,709	3,333	47,837
Employees and payroll accruals	26,519	18,315	18,592
Warranty obligations	60,524	32,274	50,780
Deferred revenues and customers advances	29,936	(21,438)	83,137
Other liabilities, net	3,344	11,630	38,158
Net cash provided by operating activities	214,129	222,655	259,000
Cash flows from investing activities:
Investment in available-for-sale marketable securities	(579,377)	(223,705)	(160,054)
Proceed from sales and maturities of available-for-sale marketable securities	202,188	141,839	142,744
Investment in privately-held company	(16,643)	0	0
Purchase of property, plant and equipment	(149,251)	(126,790)	(72,562)
Withdrawal from (investment in) bank deposits, net	60,096	(54,752)	4,860
Withdrawal from (investment in) restricted bank deposits, net	798	25,267	(26,145)
Business combinations, net of cash acquired	0	0	(38,435)
Other investing activities	(2,022)	1,504	(3,261)
Net cash used in investing activities	(484,211)	(236,637)	(152,853)
Cash flows from financing activities:
Repayment of bank loans	(16,073)	(15,595)	(9,514)
Proceeds from exercise of stock-based awards and payment of withholding taxes	2,203	21,500	9,066
Proceeds from issuance of convertible senior notes, net	0	617,869	0
Proceeds from bank loans	0	16,944	249
Change in non-controlling interests	0	0	(71,468)
Other financing activities	(1,308)	(234)	(1,354)
Net cash provided by (used in) financing activities	(15,178)	640,484	(73,021)
Increase (decrease) in cash and cash equivalents	(285,260)	626,502	33,126
Cash and cash equivalents at the beginning of the period	827,146	223,901	187,764
Effect of exchange rate differences on cash and cash equivalents	(11,797)	(23,257)	3,011
Cash and cash equivalents at the end of the period	530,089	827,146	223,901
Supplemental disclosure of non-cash activities:
Right-of-use asset recognized with corresponding lease liability	20,526	29,623	37,298
Issuance of common stock upon business combination	0	0	34,601
Supplemental disclosure of cash flow information:
Cash paid for income taxes	45,977	38,990	41,076
Cash paid for interest on bank loans	$ 36	$ 321	$ 1,096

GENERAL

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1: GENERAL

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

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

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

a.Principles of consolidation:

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

b.Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.

c.Financial statements in U.S. dollars:

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

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

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

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

d.Cash and cash equivalents:

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

e.Short-term bank deposits:

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

f.Restricted bank deposits:

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

g.Marketable Securities:

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

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

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

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

The Company has not recorded credit losses for the years ended December 31, 2021 and 2020. There was no other-than-temporary-impairment charge for any unrealized losses in 2019.

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

h.Investment in privately-held companies:

The Company's equity investments are investments in equity securities of privately-held companies, that are not traded and therefore not supported with observable market prices. The Company elected to account for its equity investments without readily determinable market values that either (i) do not meet the definition of in-substance common stock or (ii) do not provide the Company with control or significant influence using Accounting Standards Update (“ASU”) 2016-01.

Under ASU 2016-01, the Company adjusts the carrying value of its investments to fair value upon observable transactions for identical or similar investments of the same issuer.

The Company periodically evaluates the carrying value of the investments in privately-held companies when events and circumstances indicate that the carrying amount of the investment may not be recovered. The maximum loss the Company can incur for its investments is their carrying value.

The Company may determine the fair value by reviewing equity valuation reports, current financial results, long-term plans of the privately-held companies, the amount of cash that the privately-held companies have on-hand, the ability to obtain additional financing and overall market conditions in which the privately-held companies operate or based on the price observed from the most recent completed financing.

All gains and losses on investments in privately-held companies, realized and unrealized, are recognized in financial income (expenses), net.

i.Trade receivables:

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

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

	Year Ended December 31, 2021
Balance, at beginning of the period	$	2,886
Decrease in provision for expected credit losses		(142	)
Amounts written off charged against the allowance and others		(118	)
Balance, at end of the period	$	2,626

j.Inventories:

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

k.Property, plant and equipment:

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

		%
Buildings and plants		2.5-5.7 (mainly 5.4)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		10-20 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

l.Leases:

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

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

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

m.Business Combination:

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

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

n.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 group of assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the group of assets is 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.

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

For the years ended December 31, 2021, 2020 and 2019, no impairment losses have been identified.

o.Goodwill:

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

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

(1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
(2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.

The Company has not recorded any impairment charges of goodwill during the years ended December 31, 2021, 2020 and 2019.

p.Impairment of long-lived assets:

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

For the years ended December 31, 2021, 2020 and 2019, no impairment losses have been identified.

q.Severance pay:

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

For the years ended December 31, 2021, 2020 and 2019, the Company recorded $14,231, $10,598 and $7,285 in severance expenses related to its employees, respectively.

r.Derivatives and Hedging:

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

To protect against the increase in value of forecasted foreign currency cash flows resulting from salary denominated in the Israeli currency, the New Israeli Shekels (“NIS”), during the year ended December 31, 2021, the Company instituted a foreign currency cash flow hedging program whereby portions of the anticipated payroll denominated in NIS for a period of one to nine months with hedging contracts.

Accordingly, when the dollar strengthens against the NIS, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges.

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

s.Revenue recognition:

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

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

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

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

(1)Identify the contract with a customer

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

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

(2)Identify the performance obligations in the contract

At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligations are the provisions of the following: delivery of the Company’s products; 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.

Accrual for rebates for direct customers is presented net of receivables. Accrual for sale incentives related to non-direct customers is presented under accrued expenses and other current liabilities. The Company accrued $152,717 and $65,131 for rebates and sales incentives as of December 31, 2021 and 2020, respectively.

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

As of December 31, 2021, the Company has not provided payment terms of more than a year.

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

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

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

(5)Recognize revenue when a performance obligation is satisfied

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

Revenues from sales of products are recognized 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 (see Note 13).

t.Cost of revenues:

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

Shipping and handling costs, which amounted to $116,574, $101,597 and $113,635, for the years ended December 31, 2021, 2020 and 2019, respectively, are included in the cost of revenues in the consolidated statements of income. Shipping and handling costs include custom tariff charges and all other costs associated with the distribution of finished goods from the Company’s point of sale directly to its customers.

u.Warranty obligations:

The Company provides a product warranty for its solar segment related products as follows: a standard 10-year limited warranty for its residential batteries, a standard 12-year limited warranty for the majority of its inverters, that is extendable to 20 or 25 years for an additional cost and a 25-year limited warranty for power optimizers.

In certain cases, the Company provides an extended warranty for inverters that increases the warranty period for up to 25 years.

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

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

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

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

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

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

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

v.Convertible senior notes:

Prior to January 1, 2021, the Company separated the Notes into liability and equity components. On issuance, the carrying amount of the equity components was recorded as a debt discount and subsequently amortized to interest expense. Total initial issuance costs of $14,631 related to the Notes were allocated between the liability and equity components in the same proportion as the allocation of the total proceeds to the liability and equity components. The Company initially allocated issuance costs of $13,501 and $1,130 to the liability and equity components, respectively. The issuance costs attributable to the equity component were netted against the respective equity component in additional paid-in capital. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the Notes using the effective interest rate method.

Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. The Notes are accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. Adoption of the new standard resulted in an increase of retained earnings in an amount of $2,884, a decrease of an additional paid-in capital in an amount of $36,336, an increase of convertible senior notes, net, in an amount of $45,282 and a decrease of deferred tax liabilities, net, in an amount of $11,830. The impact of adoption of this standard on the Company’s earnings per share was immaterial.

The Company’s Convertible Senior Notes are included in the calculation of diluted Earnings Per Share (“EPS”) if the assumed conversion into common shares is dilutive, using the “if-converted” method. This involves adding back the periodic non-cash interest expense net of tax associated with the Notes to the numerator and by adding the shares that would be issued in an assumed conversion (regardless of whether the conversion option is in or out of the money) to the denominator for the purposes of calculating diluted EPS, unless the Notes are antidilutive (See Note 20).

w.Research and development costs:

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

x.Concentrations of credit risks:

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

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

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

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

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

The Company had two major customers (customers with attributable revenues that represents more than 10% of total revenues) for the year ended December 31, 2021 and one major customer for the years ended December 31, 2020, and 2019 that accounted for approximately 30.9%, 14.8% and 20.4% of the Company’s consolidated revenues, respectively. All of the revenues from these customers were generated in the solar segment.

The Company had two major customers (customer with a balance that represents more than 10% of total trade receivables, net) as of December 31, 2021 and 2020 that accounted in the aggregate for approximately 39.3% and 34.6%, of the Company’s consolidated trade receivables, net, respectively.

y.Concentrations of supply risks:

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

As of December 31, 2021 and 2020, two contract manufacturers collectively accounted for 27.9% and 48.5% of the Company’s total trade payables, net, respectively.

During 2020, the Company started production in its manufacturing facility in the North of Israel, “Sella 1”. During the second quarter of 2021, Sella 1 reached full manufacturing capacity.

z.Fair value of financial instruments:

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

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

Assets measured at fair value on a recurring basis as of December 31, 2021 and 2020 are comprised of money market funds, derivative instruments and debt marketable securities (see Note 11).

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

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

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

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

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

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

aa.Stock-based compensation:

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

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

The Company measures a modified stock based award at fair value and recognizes the compensation cost at the beginning of the modification date over the employee’s requisite service period of the modified award. The fair value for options granted to employees and ESPP in the years ended December 31, 2021, 2020 and 2019, are estimated at the date of grant using the following assumptions:

	Year ended December 31,
	2021			2020			2019
Employee Stock Options
Risk-free interest		0.43	%		1.73	%		2.53	%
Dividend yields		0	%		0	%		0	%
Volatility		60.74	%		58.98	%		56.26	%
Expected option term in years		5.48			6.00			6.03
Estimated forfeiture rate		0	%		0	%		0	%
ESPP
Risk-free interest		0.03% - 0.10	%		0.09% - 1.63	%		1.63% - 2.35	%
Dividend yields		0	%		0	%		0	%
Volatility		48.39% - 76.05	%		55.95% - 92.57	%		46.68% - 55.95	%
Expected term	6 months			6 months			6 months

ab.Earnings per share

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

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

ac.Income taxes:

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

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent the Company believes they will not be realized.

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

ad.New accounting pronouncements not yet effective:

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606). This guidance is effective for fiscal years beginning after 15 December 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity's financial statements. This guidance is effective for financial statements issued for annual periods beginning after 15 December 2021. Early adoption is permitted. The impact of this ASU on the Company’s consolidated financial statements is expected to be immaterial.

ae.Recently issued and adopted pronouncements:

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

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

The consolidated financial statements for the year ended December 31, 2021 are presented under the new standards, while comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy.

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

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2021

Marketable Securities [Abstract]

MARKETABLE SECURITIES

NOTE 3: MARKETABLE SECURITIES

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

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

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

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	141,824	$	509	$	(57	)	$	142,276
Governmental bonds		1,400		11		-			1,411
		143,224		520		(57	)		143,687
Available for-sale – matures after one year:
Corporate bonds		142,701		65		(214	)		142,552
Governmental bonds		4,895		-		(13	)		4,882
		147,596		65		(227	)		147,434
Total	$	290,820	$	585	$	(284	)	$	291,121

Proceeds from maturity of available-for-sale marketable securities during the years ended December 31, 2021, 2020 and 2019, were $187,375, $141,839 and $120,834, respectively.

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

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

Proceeds from sales of available-for-sale marketable securities during the year ended December 31, 2019 were $21,910, which led to realized losses of $91.

INVENTORIES, NET

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

INVENTORIES, NET

NOTE 4: INVENTORIES, NET

	As of December 31,
	2021		2020
Raw materials	$	247,386	$	128,363
Work in process		13,863		25,461
Finished goods		118,894		177,872
	$	380,143	$	331,696

The Company recorded inventory write-downs of $7,142, $8,864 and $4,528 for the years ended December 31, 2021, 2020 and 2019, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2021

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

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS

	As of December 31,
	2021		2020
Vendor non-trade receivables (*)	$	71,041	$	56,617
Government authorities		63,440		50,041
Bank deposits		-		60,096
Prepaid expenses and other		42,511		31,352
	$	176,992	$	198,106

(*) Vendor non-trade receivables derived from the sale of components to manufacturing vendors who manufacture products for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues (see also Note 18b).

PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 6: PROPERTY, PLANT AND EQUIPMENT, NET

	As of December 31,
	2021		2020
Cost:
Land	$	13,829	$	17,935
Buildings and plants		62,519		49,855
Computers and peripheral equipment		44,960		37,354
Office furniture and equipment		10,772		8,639
Laboratory and testing equipment		41,365		29,733
Machinery and equipment		201,406		183,512
Leasehold improvements		73,991		48,610
Assets under construction and payments on account		112,037		48,344
Gross property, plant and equipment		560,879		423,982
Less - accumulated depreciation		150,500		120,574
Total property, plant and equipment, net	$	410,379	$	303,408

Depreciation expenses for the years ended December 31, 2021, 2020 and 2019, were $29,359, $22,355 and $17,261, respectively.

LEASES

12 Months Ended

Dec. 31, 2021

Lessee Disclosure [Abstract]

LEASES

NOTE 7: LEASES

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

Description	Classification on the consolidated Balance Sheet	2021		2020
Assets:
Operating lease assets, net of lease incentive obligation	Operating lease right-of use assets, net	$	47,137	$	41,600
Finance lease assets	Property, plant and equipment, net		41,758		28,551
Total lease assets		$	88,895	$	70,151
Liabilities:
Operating leases short term	Accrued expenses and other current liabilities	$	12,728	$	10,994
Finance leases short term	Accrued expenses and other current liabilities		1,875		1,686
Operating leases long term	Operating lease liabilities		38,912		35,194
Finance leases long term	Finance lease liabilities		40,508		26,173
Total lease liabilities		$	94,023	$	74,047

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

	Year ended December 31,
	2021			2020
Finance leases:
Finance lease cost	$	2,065		$	198
Weighted average remaining lease term in years		16.43			16.75
Weighted average annual discount rate		1.93	%		1.49	%
Operating leases:
Operating lease cost	$	14,890		$	12,741
Weighted average remaining lease term in years		10.25			9.94
Weighted average annual discount rate		1.68	%		1.68	%

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

	Year ended December 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$	14,890	$	12,741
Operating cash flows for finance leases	$	523	$	72
Financing cash flows for finance leases	$	1,293	$	234

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

	Operating Leases			Finance Leases
2022	$	13,332		$	2,749
2023		11,495			2,749
2024		6,512			2,798
2025		3,671			2,945
2026		2,416			2,945
Thereafter		19,968			36,509
Total lease payments	$	57,394		$	50,695
Less amount of lease payments representing interest		(5,754	)		(8,312	)
Present value of future lease payments	$	51,640		$	42,383
Less current lease liabilities		(12,728	)		(1,875	)
Long-term lease liabilities	$	38,912		$	40,508

INTANGIBLE ASSETS AND GOODWILL, NET

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL, NET

NOTE 8: INTANGIBLE ASSETS AND GOODWILL, NET

a.	Intangible assets:

Acquired intangible assets consisted of the following as of December 31, 2021, and 2020:

	As of December 31,
	2021			2020
Intangible assets with finite lives:
Current Technology	$	74,976		$	78,375
Customer relationships		3,946			4,227
Trade names		3,929			4,280
Assembled workforce		3,575			-
Patents		1,400			1,400
Gross intangible assets		87,826			88,282
Less - accumulated amortization		(28,965	)		(20,464	)
Total intangible assets, net	$	58,861		$	67,818

Amortization expenses for the years ended December 31, 2021, 2020 and 2019, were $10,176, $9,479 and $9,634, respectively.

Expected future amortization expenses of intangible assets as of December 31, 2021 are as follows:

2022			10,755
2023			10,741
2024			10,176
2025			9,142
2026			8,356
2027 and thereafter			9,691
			58,861

Goodwill:

The following summarizes the goodwill activity for the year ended December 31, 2021, and 2020:

	Solar			All other			Total
Goodwill at December 31, 2019	$	31,265		$	98,389		$	129,654
Changes during the year:
Foreign currency adjustments		1,990			8,835			10,825
Goodwill at December 31, 2020		33,255			107,224			140,479
Changes during the year:
Foreign currency adjustments		(2,750	)		(8,100	)		(10,850	)
Goodwill at December 31, 2021	$	30,505		$	99,124		$	129,629

INVESTMENT IN PRIVATELY-HELD COMPANY	12 Months Ended
INVESTMENT IN PRIVATELY-HELD COMPANY	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN PRIVATELY-HELD COMPANY	NOTE 9: INVESTMENT IN PRIVATELY-HELD COMPANY On January 31, 2021, the Company completed an investment of $11,643 in the preferred stock of AutoGrid Systems, Inc. ("AutoGrid"), a privately held company without readily determinable fair values. On February 1, 2021, the Company signed on a preferred stock purchase agreement for an additional investment of $5,000 in AutoGrid's preferred stock (the "second investment"). On April 28, 2021, the Company completed the second investment. The Company accounted for the AutoGrid investment as an equity investment that does not have readily determinable fair values. As such, the Company’s non-marketable equity securities had a carrying value of $16,643 as of December 31, 2021. Investments in privately-held companies are included within other long-term assets on the consolidated balance sheets. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the year ended December 31, 2021.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	12 Months Ended
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 10: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As of December 31, 2021, the Company entered into forward contracts to sell U.S. dollars for NIS in the amount of $64,997. As of December 31, 2021, the Company entered into forward contracts to sell Australian dollars (“AUD”) for U.S. dollars in the amount of AUD 18 million. As of December 31, 2021, the Company entered into forward contracts and put and call options to buy and sell Euro for U.S. dollars in the amount of €24.5 million and €9 million, respectively. As of December 31, 2021, the Company entered into forward contracts to sell U.S. dollars for South Korean Won in the amount of $40,000. The fair value of derivative assets as of December 31, 2021, and 2020 was $4,009 and $3,786, which were recorded in prepaid expenses and other current assets in the Consolidated Balance Sheets, respectively. The fair value of derivative liabilities as of December 31, 2021, and 2020 was $169 and $5,819, which was recorded in accrued expenses and other current liabilities in the Consolidated Balance Sheets, respectively. For the years ended December 31, 2021 and 2020 Company recorded a gain and a loss in the amount of $9,417 and $4,013, respectively, in financial (expense) income, net, related to the derivative instruments not designated as cash flow hedges (see Note 23). For the years ended December 31, 2021 and 2020, the Company recorded an unrealized gain in the amount of $3,289 and $966 net of tax effect, respectively, in “accumulated other comprehensive gain (loss)” related to the derivative assets designated as hedging instruments. As of December 31, 2019 and for the year then ended, the Company had no derivative instruments.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2021

Fair Value Measurements

FAIR VALUE MEASUREMENTS

NOTE 11: FAIR VALUE MEASUREMENTS

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

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

	Fair Value Hierarchy	Fair value measurements as of December 31,
Description	Fair Value Hierarchy	2021			2020
Assets:
Cash equivalents:
Money market mutual funds	Level 1	$	21,680		$	480,673
Derivative instruments asset:
Forward contracts designated as hedging instruments	Level 2	$	992		$	-
Options and forward contracts not designated as hedging instruments	Level 2	$	3,017		$	3,786
Short-term marketable securities:
Corporate bonds	Level 2	$	160,165		$	142,276
Governmental bonds	Level 2	$	7,563		$	1,411
Long-term marketable securities:
Corporate bonds	Level 2	$	468,841		$	142,552
Governmental bonds	Level 2	$	13,387		$	4,882
Liabilities
Derivative instruments liability:
Options and forward contracts not designated as hedging instruments	Level 2	$	(169	)	$	(5,819	)

- Definition

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

+ References + Details

WARRANTY OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

NOTE 12: WARRANTY OBLIGATIONS

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

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

DEFERRED REVENUES

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

DEFERRED REVENUES

NOTE 13: DEFERRED REVENUES

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

	December 31,
	2021			2020
Balance, at the beginning of the period	$	140,020		$	160,797
Revenue recognized		(26,765	)		(72,870	)
Increase in deferred revenues and customer advances		56,089			52,093
Balance, at the end of the period		169,344			140,020
Less current portion		(17,788	)		(24,648	)
Long term portion	$	151,556		$	115,372

The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2021:

2022	$	17,788
2023		12,742
2024		7,609
2025		6,355
2026		5,595
Thereafter		119,255
Total deferred revenues	$	169,344

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 14: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

	As of December 31,
	2021		2020
Accrued expenses	$	51,014	$	47,757
Government authorities		22,631		26,218
Operating lease liabilities		12,728		10,994
Provision for legal claims		11,622		5,866
Loans and borrowings		148		16,894
Other		11,236		15,319
	$	109,379	$	123,048

CONVERTIBLE SENIOR NOTES

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

NOTE 15: CONVERTIBLE SENIOR NOTES

On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company.

Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.

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

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

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

	As of December 31,
	2021			2020
Liability:
Principal	$	632,500		$	632,500
Unamortized debt discount		-			(46,353	)
Unamortized issuance costs		(10,965	)		(12,797	)
Net carrying amount	$	621,535		$	573,350
Equity component:
Amount allocated to conversion option	$	-		$	48,834
Deferred taxes liability, net		-			(11,368	)
Allocated issuance costs		-			(1,130	)
Equity component, net	$	-		$	36,336

Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach (see Note 2v.)

As of December 31, 2021, the issuance costs of the Notes will be amortized over the remaining term of approximately 3.7 years.

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

The following table presents the total amount of interest expenses recognized related to the Notes for the years ended December 31, 2021 and 2020:

	Year ended December 31,
	2021		2020
Amortization of debt discount	$	-	$	2,480
Amortization of debt issuance costs		2,903		705
Total interest expenses	$	2,903	$	3,185

As of December 31, 2021, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $811,327. The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.

As of December 31, 2021, the if-converted value of the Notes exceeded the principal amount by $178,827.

OTHER LONG TERM LIABILITIES

12 Months Ended

Dec. 31, 2021

Other Liabilities Disclosure [Abstract]

OTHER LONG TERM LIABILITIES

NOTE 16: OTHER LONG TERM LIABILITIES

	As of December 31,
	2021		2020
Tax liabilities	$	5,105	$	5,062
Accrued severance pay		1,739		1,561
Deferred tax liability		156		8,593
Other		3,649		7,568
	$	10,649	$	22,784

STOCK CAPITAL

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK CAPITAL

NOTE 17: STOCK CAPITAL

a.	Common stock rights:

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

b.	Equity Incentive Plans:

The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. The 2007 Plan terminated upon the Company’s IPO on March 31, 2015 and no further awards may be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs, PSUs,and other share-based awards to directors, employees, officers and non-employees of the Company and its subsidiaries. As of December 31, 2021, a total of 15,406,316 shares of common stock were reserved for issuance pursuant to stock awards under the 2015 Plan (the “Share Reserve”).

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

The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is 10,000,000. As of December 31, 2021, an aggregate of 8,617,974 options are still available for future grant under the 2015 Plan.

The Company has also granted non-plan awards, which have been authorized by the Company's board of directors and granted as PSUs.

A summary of the activity in the stock options granted to employees and members of the board of directors for the year ended December 31, 2021 and related information are as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2020		691,732		$	31.86		5.07	$	198,709
Granted		19,489			311.35
Exercised		(231,008	)		28.02
Forfeited or expired		(10,432	)		44.24
Outstanding as of December 31, 2021		469,781		$	45.07		5.25	$	111,236
Vested and expected to vest as of December 31, 2021		441,238		$	40.48		5.53	$	106,377
Exercisable as of December 31, 2021		373,664		$	29.58		5.16	$	93,897

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

The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $65,668, $251,564, and $37,509, respectively.

The weighted average grant date fair value of options granted to employees and directors during the years ended December 31, 2021, 2020, and 2019, was $168.71, $62.11 and $19.83, respectively.

A summary of the activity in the RSUs and PSUs granted to employees and directors for the year ended December 31, 2021, is as follows:

	Number of RSUs and PSUs			Weighted average grant date fair value
Unvested, at beginning of the period		2,216,841		$	103.79
Granted (1)		703,039			278.03
Vested		(955,125	)		81.76
Forfeited		(125,804	)		136.71
Unvested, at end of the period		1,838,951		$	178.64

The number of PSUs granted to employees was 132,673 with a weighted average grant date fair value of $294.04.

The weighted-average grant-date fair value of RSUs and PSUs granted during the years ended December 31, 2021, 2020 and 2019, was $278.03, $71.46 and $41.45, respectively.

c.	Employee Stock Purchase Plan:

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

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

As of December 31, 2021, 661,827 shares of common stock had been purchased under the ESPP.

As of December 31, 2021, 2,513,267 shares of common stock were available for future issuance under the ESPP.

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

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

The Company recognized stock-based compensation expenses related to stock options, RSUs and PSUs granted to employees and non-employees and the ESPP in the consolidated statement of income for the years ended December 31, 2021, 2020 and 2019, as follows:

	Year ended December 31,
	2021		2020		2019
Cost of revenues	$	18,743	$	11,082	$	6,964
Research and development		45,424		27,048		16,872
Selling and marketing		22,834		19,413		11,062
General and administrative		15,592		9,766		6,991
Other operating expenses		-		-		18,464
Total stock-based compensation expenses	$	102,593	$	67,309	$	60,353

As of December 31, 2021, there were total unrecognized compensation expenses in the amount of $309,177 related to non-vested equity-based compensation arrangements granted under the Company’s Plans and non-plan awards. These expenses are expected to be recognized during the period from January 1, 2022 through May 31, 2026.

COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 18: COMMITMENTS AND CONTINGENT LIABILITIES

a.	Guarantees:

As of December 31, 2021, contingent liabilities exist regarding guarantees in the amounts of $4,938 and $2,250 in respect of office rent lease agreements and other transactions, respectively.

b.	Contractual purchase obligations:

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

As of December 31, 2021, the Company had non-cancelable purchase obligations totaling approximately $1,428,766, out of which the Company recorded a provision for loss in the amount of $4,071.

As of December 31, 2021, the Company had contractual obligations for capital expenditures totaling approximately $168,528. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing process as well as capital expenditures associated with the construction of Sella 2, the Company’s planned second lithium-ion cell and battery factory in Korea.

c.	Legal claims:

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

In September 2018, the Company’s German subsidiary, SolarEdge Technologies GmbH received a complaint filed by competitor SMA Solar Technology AG (“SMA”). The complaint, filed in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW - 27.6kW inverters infringe two of the plaintiff’s patents. SMA asserted a value in dispute of EUR 5.5 million (approximately $6,225) for both patents. The Company challenged the validity of both patents. With respect to one of the claims, in October 2020, the German Patent Court rendered the SMA patent invalid and this invalidity has been appealed by SMA. With respect to the other claim, in November 2019, the first instance court stayed the infringement proceedings since it considered it to be highly likely that the second SMA patent would also be rendered invalid. The Company believes that it has meritorious defenses to the claims asserted and intends to vigorously defend against the remaining lawsuit.

In May 2019, the Company’s two Chinese subsidiaries and its equipment manufacturer in China were served with three lawsuits by Huawei Technologies Co., Ltd., a Chinese entity (“Huawei”). The lawsuits, filed in the Guangzhou intellectual property court, alleged infringement of three patents and asked for an injunction of manufacture, use, sale and offer for sale, and damage awards. A first-instance judgment was issued on August 7, 2020 ordering the three defendants to collectively pay damages in the amount of approximately Chinese Yuan (“CNY”) 10.5 million (approximately $1,647), including court fees. The Company has filed an appeal with the Supreme People’s Court of China. The Company's appeal to the Supreme People's Court was denied in December of 2021, rendering a payment by us to Huawei in an amount of $1,647. The judgement is not enforceable until the end of February 2022. In addition, in January 2021, Huawei filed a motion to increase its claimed monetary damages to CNY 50.5 million (approximately $7,923) with respect to the second lawsuit. In February 2021, a preliminary injunction was rendered by the Guangzhou intellectual property court with respect to such second lawsuit and applying to seven inverter models. In line with the court’s mandate, the Company took immediate action to make software changes to meet the court order. In addition, in February 22, 2021 a first-instance judgment was issued ordering payment of damages in the amount of CNY 50.5 million (approximately $7,923), including court fees, with respect to the second patent. The Company appealed this judgement with the Supreme People’s Court which case is still pending. The first instance court’s judgement is not effective or enforceable pending the appeal. In October 2021, a first-instance judgment was issued ordering to pay damages in the amount of approximately CNY 10.5 million (approximately $1,647), including court fees, with respect to the third lawsuit. The Company has filed an appeal with the Supreme People’s Court of China which also is still pending. The first instance court’s judgement is not effective or enforceable pending the appeal. The Company believes that it has meritorious defenses to the claims asserted by Huawei.

In December 2019, the Company received a lawsuit filed by a former consultant of the Company and its Israeli subsidiary in the amount of NIS 25.5 million (approximately $8,199) claiming damages caused relating to a terminated consulting agreement and stock options therein. The Company believes it has meritorious defenses to the claims asserted and intends to vigorously defend against this lawsuit.

As of December 31, 2021, accrued amounts for legal claims of $11,622 were recorded in accrued expenses and other current liabilities.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income Loss [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (INCOME) LOSS

NOTE 19: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2021:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature			Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	240		$	-		$	-		$	3,617		$	3,857
Revaluation		(6,283	)		3,735			(17,420	)		(9,681	)		(29,649	)
Tax on revaluation		1,346			(446	)		-			-			900
Other comprehensive income (loss) before reclassifications		(4,937	)		3,289			(17,420	)		(9,681	)		(28,749	)
Reclassification		(16	)		(2,742	)		-			-			(2,758	)
Tax on reclassification		4			327			-			-			331
Losses reclassified from accumulated other comprehensive income		(12	)		(2,415	)		-			-			(2,427	)
Net current period other comprehensive income (loss)		(4,949	)		874			(17,420	)		(9,681	)		(31,176	)
Ending balance	$	(4,709	)	$	874		$	(17,420	)	$	(6,064	)	$	(27,319	)

The following table summarizes the changes in accumulated balances of other comprehensive loss (loss), net of taxes, for the year ended December 31, 2020:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature		Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	264		$	-		$	-	$	(2,073	)	$	(1,809	)
Revaluation		45			1,101			-		5,690			6,836
Tax on revaluation		(69	)		(135	)				-			(204	)
Other comprehensive income (loss) before reclassifications		(24	)		966			-		5,690			6,632
Reclassification		-			(1,101	)		-		-			(1,101	)
Tax on reclassification		-			135			-		-			135
Losses reclassified from accumulated other comprehensive income		-			(966	)		-		-			(966	)
Net current period other comprehensive income (loss)		(24	)		-			-		5,690			5,666
Ending balance	$	240		$	-		$	-	$	3,617		$	3,857

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2019:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges		Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature		Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	(656	)	$	-	$	-	$	132		$	(524	)
Revaluation		1,034			-		-		(2,205	)		(1,171	)
Tax on revaluation		(205	)		-		-		-			(205	)
Other comprehensive income (loss) before reclassifications		829			-		-		(2,205	)		(1,376	)
Reclassification		91			-		-		-			91
Tax on reclassification		-			-		-		-			-
Losses reclassified from accumulated other comprehensive income		91			-		-		-			91
Net current period other comprehensive income (loss)		920			-		-		(2,205	)		(1,285	)
Ending balance	$	264		$	-	$	-	$	(2,073	)	$	(1,809	)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Statement of Income
		2021			2020			2019
Unrealized gains on available-for-sale marketable securities
	$	16		$	-		$	(91	)	Financial income (expenses), net
		(4	)		-			-		Income taxes
	$	12			-		$	(91	)	Total, net of income taxes
Unrealized gains on cash flow hedges, net
		333			189			-		Cost of revenues
		1,645			623			-		Research and development
		334			136			-		Sales and marketing
		430			153			-		General and administrative
	$	2,742		$	1,101		$	-		Total, before income taxes
		(327	)		(135	)		-		Income taxes
		2,415			966			-
Total reclassifications for the period	$	2,427		$	966		$	(91	)

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 20: EARNINGS PER SHARE

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

	Year ended December 31,
	2021		2020		2019
Basic EPS:
Numerator:
Net income	$	169,170	$	140,322	$	144,957
Net loss attributable to Non-controlling interests		-		-		1,592
		169,170		140,322		146,549
Denominator:
Shares used in computing net earnings per share of common stock, basic		52,202,182		50,217,330		47,918,938
Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	169,170	$	140,322	$	144,957
Net loss attributable to Non-controlling interests		-		-		1,592
Undistributed earnings reallocated to non-vested stockholders		-		-		(906	)
Notes due 2025		2,134		-		-
Net income attributable to common stock, diluted	$	171,304	$	140,322	$	145,643
Denominator:
Shares used in computing net earnings per share of common stock, basic		52,202,182		50,217,330		47,918,938
Non-vested PSUs		-		-		(312,128	)
Notes due 2025		2,276,818		-		-
Effect of stock-based awards		1,492,030		2,578,146		2,588,851
Shares used in computing net earnings per share of common stock, diluted		55,971,030		52,795,475		50,195,661

No shares were excluded from the calculation for the year ended December 31, 2021.

2,276,818 and 312,128 shares of common stock were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the years ended December 31, 2020 and 2019, respectively.

OTHER OPERATING EXPENSES (INCOME),NET

12 Months Ended

Dec. 31, 2021

Temporary Equity Stock Issued During Period Shares New Issues

OTHER OPERATING EXPENSES (INCOME),NET

NOTE 21: OTHER OPERATING EXPENSES (INCOME), NET

	Year ended December 31,
	2021			2020			2019
Kokam purchase escrow (1)(2)	$	(859	)	$	(4,900	)	$	4,900
Write-off of long-lived assets		2,209			1,471			-
Compensation package related to the passing of the former Founder, CEO and Chairman(3)		-			-			8,305
Termination of SolarEdge Automation Machines’s former executive(4)		-			-			12,222
Sale of SolarEdge Automation Machines’s subsidiary(5)		-			-			5,269
Total other operating expenses (income)	$	1,350		$	(3,429	)	$	30,696

1.	In the year ended December 31, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.
2.	In the year ended December 31, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.
3.	On August 25, 2019, the Company announced the untimely death of Mr. Guy Sella, Founder, who had served as CEO and Chairman of the Board of Directors until shortly before his passing. The amount is related to payroll, bonus and acceleration of stock-based compensation award.
4.	As part of SolarEdge Automation Machines acquisition, the Company issued to a shareholder who had served as an executive of SolarEdge Automation Machines 334,095 PSUs, which were subject to certain performance goals and a vesting period. In December 2019, in connection with a separation agreement between the parties, the Company and the shareholder amended the original agreement, which resulted in a modification to the terms of 150,000 of the original PSUs, such as, the fair value of the PSU, the service period and the performance goals. The Company exercised a call option with respect to the remaining 183,395 PSUs, for a price per share equal to €0.01.
5.	On December 31, 2019, the Company completed the sale of a SolarEdge Automation Machines subsidiary.

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 22:INCOME TAXES

a. Tax rates in the U.S:

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

On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into law making significant changes to U.S. income tax law. These changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years 2018 onwards and created new taxes on certain foreign-sourced earnings and certain related-party payments.

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

b. Corporate tax in Israel:

The taxable income of Israeli companies is subject to corporate tax at the rate of 23%. The Israeli subsidiary is also eligible for tax benefits as further described in note 22i.

c. Carryforward tax losses:

As of December 31, 2021, the foreign subsidiaries have carryforward tax losses of $83,916 which does not have an expiration date.

d. Deferred taxes:

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

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

	December 31,
	2021			2020			2019
Deferred tax assets, net:
Research and Development carryforward expenses	$	2,479		$	1,843		$	4,994
Carryforward tax losses(1)		19,635			20,468			6,318
Stock based compensation expenses		12,140			6,400			4,898
Deferred revenue		8,078			5,609			3,621
Inventory Impairment		1,326			1,977			2,442
Allowance and other reserves		10,911			4,372			7,305
Total Gross deferred tax assets, net	$	54,569		$	40,669		$	29,578
Less, Valuation Allowance		(14,648	)		(9,634	)		(2,317	)
Total deferred tax assets, net	$	39,921		$	31,035		$	27,261
Deferred tax liabilities, net:
Intercompany transactions	$	(6,099	)	$	-		$	-
Convertible Note		-			(11,830	)		-
Purchase price allocation		(6,406	)		(16,122	)		(15,424	)
Total deferred tax liabilities, net	$	(12,505	)	$	(27,952	)	$	(15,424	)
Recorded as:
Deferred tax assets, net	$	27,572		$	11,676		$	16,298
Deferred tax liabilities, net		(156	)		(8,593	)		(4,461	)
Net deferred tax assets	$	27,416		$	3,083		$	11,837

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

The Company’s Israeli subsidiary’s tax-exempt profit from Benefited Enterprises (as defined in note 22.i) is permanently reinvested, Therefore, deferred taxes have not been provided for such tax-exempt income.

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

e. Uncertain tax positions:

	December 31,
	2021			2020		2019
Balance, at the beginning of the period	$	10,564		$	9,532	$	8,499
Increases related to current year tax positions		635			757		651
Increase for tax positions related to prior years		-			275		382
Decreases related to prior year tax positions		(9,007	)		-		-
Balance, at end of the period	$	2,192		$	10,564	$	9,532

The total amount of gross unrecognized tax benefits was $2,192, $10,564 and $9,532 as of December 31, 2021, 2020 and 2019, respectively, and if recognized, would affect our effective tax rate.

The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest were not material as of December 31, 2021,2020 and 2019.

It is reasonably possible that the Company’s gross unrecognized tax benefits will decrease by up to $57 in the next 12 months, primarily due to the lapse of the statute of limitations. These adjustments, if recognized, would positively impact the Company’s effective tax rate, and would be recognized as additional tax benefits.

f. Income before income taxes are comprised as follows:

	Year ended December 31,
	2021		2020		2019
Domestic	$	13,659	$	33,909	$	6,029
Foreign		173,565		129,757		172,574
Income before income taxes	$	187,224	$	163,666	$	178,603

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

	Year ended December 31,
	2021			2020			2019
Current taxes:
U.S. Federal and State	$	(7,872)		$	1,842		$	10,093
Foreign		37,564			24,936			29,590
Total current taxes		29,692			26,778			39,683
Deferred taxes:
U.S. Federal and State		(3,682	)		2,794			(3,414	)
Foreign		(7,956	)		(6,228	)		(2,623	)
Total deferred taxes		(11,638	)		(3,434	)		(6,037	)
Income taxes, net	$	18,054		$	23,344		$	33,646

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

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

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

	Year ended December 31,
	2021			2020			2019

Statutory tax rate		21	%		21	%		21	%
Effect of:
Income tax at rate other than the U.S. statutory tax rate		(7.4	)%		(6.9	)%		(5.0	)%
Losses and timing differences for which valuation allowance was provided		-			4.4	%		1.3	%
Prior year tax Income/(Expenses)		(4.4	)%		(0.4	)%		0.1	%
Tax Cuts and Jobs Act of 2017		0.1	%		-	%		(0.7	)%
Disallowable and allowable deductions		2.0	%		(2.6	)%		2.3	%
Other individually immaterial income tax items, net		(1.7	)%		(1.3	)%		(0.2	)%
Effective tax rate		9.6	%		14.2	%		18.8	%

i. Tax assessments:

The Israeli tax authorities issued a tax assessments for tax years 2016 and 2018 against the Company’s Israeli subsidiary challenging the subsidiary's positions on several issues. The Israeli subsidiary has appealed the tax assessments.

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

As of December 31, 2021, the Company and certain of its subsidiaries filed U.S. federal and various state and foreign income tax returns. The statute of limitations relating to the consolidated U.S. federal income tax return is closed for all tax years up to and including 2017.

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

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

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

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

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

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

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

Through December 31, 2021, the Israeli subsidiary had generated income under the provision of the Investments Law.

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

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

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

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

A PTE, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development Zone A - a tax rate of 7.5%). The Israeli subsidiary’s PTE facilities in Israel are not located in Development Zone A. The Israeli subsidiary has developed its own solar products manufacturing facilities in Israel, located in a Development Zone A.

The Israeli subsidiary notified the ITA of its election to implement the PTE with effect from January 1, 2019.

Tax Benefits for Research and Development:

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

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

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FINANCIAL (EXPENSES) INCOME, NET

12 Months Ended

Dec. 31, 2021

Nonoperating Income (Expense) [Abstract]

FINANCIAL EXPENSES (INCOME), NET

NOTE 23: FINANCIAL INCOME (EXPENSE), NET

		Year ended December 31,
	2021			2020			2019
Exchange rate (loss) gain, net	$	(22,493	)	$	33,065		$	(10,342	)
Marketable securities		2,973			3,750			4,712
Convertible note		(2,903	)		(3,185	)		-
Hedging		9,417			(4,013	)		-
Interest expenses		(6,376	)		(5,330	)		(4,805	)
Bank charges		(1,991	)		(2,048	)		(1,021	)
Other financial income (expenses), net		1,458			(1,134	)		113
	$	(19,915	)	$	21,105		$	(11,343	)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT, GEOGRAPHIC, MAJOR CUSTOMER AND PRODUCT INFORMATION

NOTE 24: SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

a. Segment Information:

The Company operates in five different operating segments: Solar, Energy Storage, e-Mobility, Critical Power and Automation Machines.

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

The Company does not allocate to its operating segments revenue recognized due to advance payments received for performance obligations that extend for a period greater than one year (“financing component”), related to Accounting Standard Codification 606, “Revenue from Contracts with Customers” (ASC 606).

Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased intangible assets, stock based compensation expenses and certain other items.

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

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

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

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

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

	Year ended December 31,
	2021					2020					2019
	Solar		All other			Solar		All other			Solar		All other
Revenues	$	1,787,280	$	176,167		$	1,357,261	$	102,804		$	1,336,618	$	89,042
Cost of revenues		1,136,896		169,582			882,420		95,280			852,330		75,702
Gross profit		650,384		6,585			474,841		7,524			484,288		13,340
Research and development		143,173		30,506			110,567		25,417			91,868		12,520
Sales and marketing		85,309		9,930			66,823		8,562			67,275		8,433
General and administrative		53,156		13,536			41,723		10,389			31,201		9,561
Segments profit (loss)	$	368,746	$	(47,387	)	$	255,728	$	(36,844	)	$	293,944	$	(17,174	)

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

	Year ended December 31,
	2021		2020			2019
Solar segment revenues	$	1,787,280	$	1,357,261		$	1,336,618
All other segment revenues		176,167		102,804			89,042
Revenues from financing component		418		-			-
Inter-segment revenues		-		(794	)		-
Consolidated revenues	$	1,963,865	$	1,459,271		$	1,425,660

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

	Year ended December 31,
	2021			2020			2019
Solar segment profit	$	368,746		$	255,728		$	293,944
All other segment loss		(47,387	)		(36,844	)		(17,174	)
Segments operating profit		321,359			218,884			276,770
Amounts not allocated to segments:
Stock based compensation expenses		(102,593	)		(67,309	)		(60,353	)
Amortization related to business combinations		(10,812	)		(9,336	)		(9,470	)
Sale of SolarEdge Automation Machines’ subsidiary		-			-			(5,269	)
Legal settlement		763			4,900			(4,900	)
Other unallocated expenses		(1,578	)		(4,450	)		(6,832	)
Adjustments:
Inter-segment profit		-			(128	)		-
Consolidated operating income	$	207,139		$	142,561		$	189,946

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

	Year ended December 31,
		2021		2020		2019
United States	$	786,019	$	613,090	$	678,565
Europe(*)		670,394		426,531		345,685
Netherlands		222,103		199,498		199,526
Rest of the world		285,349		220,152		201,884
Total revenues	$	1,963,865	$	1,459,271	$	1,425,660

(*) Except for Netherlands

c. Revenues by product:

	Year ended December 31,
	2021		2020		2019
Inverters	$	828,101	$	641,799	$	626,445
Optimizers		828,542		625,465		634,007
Others		307,222		192,007		165,208
Total revenues	$	1,963,865	$	1,459,271	$	1,425,660

d. Long-lived assets by geographic location:

	As of December 31,
		2021		2020
Israel	$	271,700	$	216,095
Korea		118,209		62,570
China		30,412		32,655
Europe		21,547		24,233
Other		15,649		9,455
Total long-lived assets (*)	$	457,517	$	345,008

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

- Definition

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

+ References

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-Publisher FASB
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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Principles of consolidation

a.Principles of consolidation:

Use of estimates

b.Use of estimates:

Financial statements in U.S. dollars

c.Financial statements in U.S. dollars:

Cash and cash equivalents

d.Cash and cash equivalents:

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

Short-term bank deposits

e.Short-term bank deposits:

Restricted bank deposits

f.Restricted bank deposits:

Marketable Securities

g.Marketable Securities:

The Company has not recorded credit losses for the years ended December 31, 2021 and 2020. There was no other-than-temporary-impairment charge for any unrealized losses in 2019.

Investments in privately-held companies

h.Investment in privately-held companies:

All gains and losses on investments in privately-held companies, realized and unrealized, are recognized in financial income (expenses), net.

Trade receivables

i.Trade receivables:

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

	Year Ended December 31, 2021
Balance, at beginning of the period	$	2,886
Decrease in provision for expected credit losses		(142	)
Amounts written off charged against the allowance and others		(118	)
Balance, at end of the period	$	2,626

Inventories

j.Inventories:

Property, plant and equipment

k.Property, plant and equipment:

		%
Buildings and plants		2.5-5.7 (mainly 5.4)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		10-20 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

Leases

l.Leases:

Business Combination

m.Business Combination:

Intangible Assets

n.Intangible Assets:

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.

Goodwill

o.Goodwill:

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

(1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
(2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.

The Company has not recorded any impairment charges of goodwill during the years ended December 31, 2021, 2020 and 2019.

Impairment of long-lived assets

p.Impairment of long-lived assets:

For the years ended December 31, 2021, 2020 and 2019, no impairment losses have been identified.

Severance pay

q.Severance pay:

For the years ended December 31, 2021, 2020 and 2019, the Company recorded $14,231, $10,598 and $7,285 in severance expenses related to its employees, respectively.

Derivatives and Hedging

r.Derivatives and Hedging:

Revenue recognition

s.Revenue recognition:

(1)Identify the contract with a customer

(2)Identify the performance obligations in the contract

(3)Determine the transaction price

As of December 31, 2021, the Company has not provided payment terms of more than a year.

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

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

(5)Recognize revenue when a performance obligation is satisfied

Cost of revenues

t.Cost of revenues:

Shipping and handling costs

Warranty obligations

u.Warranty obligations:

In certain cases, the Company provides an extended warranty for inverters that increases the warranty period for up to 25 years.

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

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

Convertible senior notes

v.Convertible senior notes:

Research and development costs

w.Research and development costs:

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

Concentrations of credit risks

x.Concentrations of credit risks:

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

Concentrations of supply risks

y.Concentrations of supply risks:

As of December 31, 2021 and 2020, two contract manufacturers collectively accounted for 27.9% and 48.5% of the Company’s total trade payables, net, respectively.

During 2020, the Company started production in its manufacturing facility in the North of Israel, “Sella 1”. During the second quarter of 2021, Sella 1 reached full manufacturing capacity.

Fair value of financial instruments

z.Fair value of financial instruments:

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

Assets measured at fair value on a recurring basis as of December 31, 2021 and 2020 are comprised of money market funds, derivative instruments and debt marketable securities (see Note 11).

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

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

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

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

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

Stock-based compensation

aa.Stock-based compensation:

	Year ended December 31,
	2021			2020			2019
Employee Stock Options
Risk-free interest		0.43	%		1.73	%		2.53	%
Dividend yields		0	%		0	%		0	%
Volatility		60.74	%		58.98	%		56.26	%
Expected option term in years		5.48			6.00			6.03
Estimated forfeiture rate		0	%		0	%		0	%
ESPP
Risk-free interest		0.03% - 0.10	%		0.09% - 1.63	%		1.63% - 2.35	%
Dividend yields		0	%		0	%		0	%
Volatility		48.39% - 76.05	%		55.95% - 92.57	%		46.68% - 55.95	%
Expected term	6 months			6 months			6 months

Earnings per share

ab.Earnings per share

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

Income taxes

ac.Income taxes:

New accounting pronouncements not yet effective

ad.New accounting pronouncements not yet effective:

Recently issued and adopted pronouncements

ae.Recently issued and adopted pronouncements:

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

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

Schedule of Allowance for Credit Losses

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

	Year Ended December 31, 2021
Balance, at beginning of the period	$	2,886
Decrease in provision for expected credit losses		(142	)
Amounts written off charged against the allowance and others		(118	)
Balance, at end of the period	$	2,626

Schedule of Estimated Useful Lives of Property and Equipment

		%
Buildings and plants		2.5-5.7 (mainly 5.4)
Computers and peripheral equipment		14.3-33.3 (mainly 33.3)
Office furniture and equipment		7-25 (mainly 7)
Machinery and equipment		10-20 (mainly 10)
Laboratory and testing equipment		7-20 (mainly 10)
Leasehold improvements		over the shorter of the lease term or useful economic life

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

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

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

	Year ended December 31,
	2021			2020			2019
Employee Stock Options
Risk-free interest		0.43	%		1.73	%		2.53	%
Dividend yields		0	%		0	%		0	%
Volatility		60.74	%		58.98	%		56.26	%
Expected option term in years		5.48			6.00			6.03
Estimated forfeiture rate		0	%		0	%		0	%
ESPP
Risk-free interest		0.03% - 0.10	%		0.09% - 1.63	%		1.63% - 2.35	%
Dividend yields		0	%		0	%		0	%
Volatility		48.39% - 76.05	%		55.95% - 92.57	%		46.68% - 55.95	%
Expected term	6 months			6 months			6 months

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2021

Marketable Securities Tables Abstract

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

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

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

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

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale – matures within one year:
Corporate bonds	$	141,824	$	509	$	(57	)	$	142,276
Governmental bonds		1,400		11		-			1,411
		143,224		520		(57	)		143,687
Available for-sale – matures after one year:
Corporate bonds		142,701		65		(214	)		142,552
Governmental bonds		4,895		-		(13	)		4,882
		147,596		65		(227	)		147,434
Total	$	290,820	$	585	$	(284	)	$	291,121

INVENTORIES, NET (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

	As of December 31,
	2021		2020
Raw materials	$	247,386	$	128,363
Work in process		13,863		25,461
Finished goods		118,894		177,872
	$	380,143	$	331,696

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

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

Schedule of Prepaid Expenses and Other Current Assets

	As of December 31,
	2021		2020
Vendor non-trade receivables (*)	$	71,041	$	56,617
Government authorities		63,440		50,041
Bank deposits		-		60,096
Prepaid expenses and other		42,511		31,352
	$	176,992	$	198,106

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

	As of December 31,
	2021		2020
Cost:
Land	$	13,829	$	17,935
Buildings and plants		62,519		49,855
Computers and peripheral equipment		44,960		37,354
Office furniture and equipment		10,772		8,639
Laboratory and testing equipment		41,365		29,733
Machinery and equipment		201,406		183,512
Leasehold improvements		73,991		48,610
Assets under construction and payments on account		112,037		48,344
Gross property, plant and equipment		560,879		423,982
Less - accumulated depreciation		150,500		120,574
Total property, plant and equipment, net	$	410,379	$	303,408

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Lessee Disclosure [Abstract]

Schedule of Lease-related Assets and Liabilities

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

Description	Classification on the consolidated Balance Sheet	2021		2020
Assets:
Operating lease assets, net of lease incentive obligation	Operating lease right-of use assets, net	$	47,137	$	41,600
Finance lease assets	Property, plant and equipment, net		41,758		28,551
Total lease assets		$	88,895	$	70,151
Liabilities:
Operating leases short term	Accrued expenses and other current liabilities	$	12,728	$	10,994
Finance leases short term	Accrued expenses and other current liabilities		1,875		1,686
Operating leases long term	Operating lease liabilities		38,912		35,194
Finance leases long term	Finance lease liabilities		40,508		26,173
Total lease liabilities		$	94,023	$	74,047

Schedule of Information Related to Operating Finance Leases

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

	Year ended December 31,
	2021			2020
Finance leases:
Finance lease cost	$	2,065		$	198
Weighted average remaining lease term in years		16.43			16.75
Weighted average annual discount rate		1.93	%		1.49	%
Operating leases:
Operating lease cost	$	14,890		$	12,741
Weighted average remaining lease term in years		10.25			9.94
Weighted average annual discount rate		1.68	%		1.68	%

Schedule of Supplemental Cash Flow Information Related to Leases

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

	Year ended December 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$	14,890	$	12,741
Operating cash flows for finance leases	$	523	$	72
Financing cash flows for finance leases	$	1,293	$	234

Schedule of Operating and Finance lease liabilities

	Operating Leases			Finance Leases
2022	$	13,332		$	2,749
2023		11,495			2,749
2024		6,512			2,798
2025		3,671			2,945
2026		2,416			2,945
Thereafter		19,968			36,509
Total lease payments	$	57,394		$	50,695
Less amount of lease payments representing interest		(5,754	)		(8,312	)
Present value of future lease payments	$	51,640		$	42,383
Less current lease liabilities		(12,728	)		(1,875	)
Long-term lease liabilities	$	38,912		$	40,508

INTANGIBLE ASSETS AND GOODWILL, NET (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

	As of December 31,
	2021			2020
Intangible assets with finite lives:
Current Technology	$	74,976		$	78,375
Customer relationships		3,946			4,227
Trade names		3,929			4,280
Assembled workforce		3,575			-
Patents		1,400			1,400
Gross intangible assets		87,826			88,282
Less - accumulated amortization		(28,965	)		(20,464	)
Total intangible assets, net	$	58,861		$	67,818

Schedule of Future Amortization Expense

2022			10,755
2023			10,741
2024			10,176
2025			9,142
2026			8,356
2027 and thereafter			9,691
			58,861

Schedule of Goodwill activity

	Solar			All other			Total
Goodwill at December 31, 2019	$	31,265		$	98,389		$	129,654
Changes during the year:
Foreign currency adjustments		1,990			8,835			10,825
Goodwill at December 31, 2020		33,255			107,224			140,479
Changes during the year:
Foreign currency adjustments		(2,750	)		(8,100	)		(10,850	)
Goodwill at December 31, 2021	$	30,505		$	99,124		$	129,629

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Measurements Tables Abstract

Schedule of Assets and Liabilities Measured at Fair Value

	Fair Value Hierarchy	Fair value measurements as of December 31,
Description	Fair Value Hierarchy	2021			2020
Assets:
Cash equivalents:
Money market mutual funds	Level 1	$	21,680		$	480,673
Derivative instruments asset:
Forward contracts designated as hedging instruments	Level 2	$	992		$	-
Options and forward contracts not designated as hedging instruments	Level 2	$	3,017		$	3,786
Short-term marketable securities:
Corporate bonds	Level 2	$	160,165		$	142,276
Governmental bonds	Level 2	$	7,563		$	1,411
Long-term marketable securities:
Corporate bonds	Level 2	$	468,841		$	142,552
Governmental bonds	Level 2	$	13,387		$	4,882
Liabilities
Derivative instruments liability:
Options and forward contracts not designated as hedging instruments	Level 2	$	(169	)	$	(5,819	)

- Definition

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

+ References + Details

WARRANTY OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2021

Product Warranties Disclosures [Abstract]

Schedule of Warranty Obligations

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

DEFERRED REVENUES (Tables)

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Schedule of Balances of Deferred Revenues

	December 31,
	2021			2020
Balance, at the beginning of the period	$	140,020		$	160,797
Revenue recognized		(26,765	)		(72,870	)
Increase in deferred revenues and customer advances		56,089			52,093
Balance, at the end of the period		169,344			140,020
Less current portion		(17,788	)		(24,648	)
Long term portion	$	151,556		$	115,372

Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations

2022	$	17,788
2023		12,742
2024		7,609
2025		6,355
2026		5,595
Thereafter		119,255
Total deferred revenues	$	169,344

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

	As of December 31,
	2021		2020
Accrued expenses	$	51,014	$	47,757
Government authorities		22,631		26,218
Operating lease liabilities		12,728		10,994
Provision for legal claims		11,622		5,866
Loans and borrowings		148		16,894
Other		11,236		15,319
	$	109,379	$	123,048

CONVERTIBLE SENIOR NOTES (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

	As of December 31,
	2021			2020
Liability:
Principal	$	632,500		$	632,500
Unamortized debt discount		-			(46,353	)
Unamortized issuance costs		(10,965	)		(12,797	)
Net carrying amount	$	621,535		$	573,350
Equity component:
Amount allocated to conversion option	$	-		$	48,834
Deferred taxes liability, net		-			(11,368	)
Allocated issuance costs		-			(1,130	)
Equity component, net	$	-		$	36,336

Schedule of Interest Expense Recognized

	Year ended December 31,
	2021		2020
Amortization of debt discount	$	-	$	2,480
Amortization of debt issuance costs		2,903		705
Total interest expenses	$	2,903	$	3,185

OTHER LONG TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Long Term Liabilties

	As of December 31,
	2021		2020
Tax liabilities	$	5,105	$	5,062
Accrued severance pay		1,739		1,561
Deferred tax liability		156		8,593
Other		3,649		7,568
	$	10,649	$	22,784

STOCK CAPITAL (Tables)

12 Months Ended

Dec. 31, 2021

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

Schedule of RSU Activity

A summary of the activity in the RSUs and PSUs granted to employees and directors for the year ended December 31, 2021, is as follows:

	Number of RSUs and PSUs			Weighted average grant date fair value
Unvested, at beginning of the period		2,216,841		$	103.79
Granted (1)		703,039			278.03
Vested		(955,125	)		81.76
Forfeited		(125,804	)		136.71
Unvested, at end of the period		1,838,951		$	178.64

Schedule of Recognized Stock-based Compensation Expenses

	Year ended December 31,
	2021		2020		2019
Cost of revenues	$	18,743	$	11,082	$	6,964
Research and development		45,424		27,048		16,872
Selling and marketing		22,834		19,413		11,062
General and administrative		15,592		9,766		6,991
Other operating expenses		-		-		18,464
Total stock-based compensation expenses	$	102,593	$	67,309	$	60,353

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

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

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

A summary of the activity in the stock options granted to employees and members of the board of directors for the year ended December 31, 2021 and related information are as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic Value
Outstanding as of December 31, 2020		691,732		$	31.86		5.07	$	198,709
Granted		19,489			311.35
Exercised		(231,008	)		28.02
Forfeited or expired		(10,432	)		44.24
Outstanding as of December 31, 2021		469,781		$	45.07		5.25	$	111,236
Vested and expected to vest as of December 31, 2021		441,238		$	40.48		5.53	$	106,377
Exercisable as of December 31, 2021		373,664		$	29.58		5.16	$	93,897

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income Loss [Abstract]

Schedule of Changes in AOCI

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2021:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature			Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	240		$	-		$	-		$	3,617		$	3,857
Revaluation		(6,283	)		3,735			(17,420	)		(9,681	)		(29,649	)
Tax on revaluation		1,346			(446	)		-			-			900
Other comprehensive income (loss) before reclassifications		(4,937	)		3,289			(17,420	)		(9,681	)		(28,749	)
Reclassification		(16	)		(2,742	)		-			-			(2,758	)
Tax on reclassification		4			327			-			-			331
Losses reclassified from accumulated other comprehensive income		(12	)		(2,415	)		-			-			(2,427	)
Net current period other comprehensive income (loss)		(4,949	)		874			(17,420	)		(9,681	)		(31,176	)
Ending balance	$	(4,709	)	$	874		$	(17,420	)	$	(6,064	)	$	(27,319	)

The following table summarizes the changes in accumulated balances of other comprehensive loss (loss), net of taxes, for the year ended December 31, 2020:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges			Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature		Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	264		$	-		$	-	$	(2,073	)	$	(1,809	)
Revaluation		45			1,101			-		5,690			6,836
Tax on revaluation		(69	)		(135	)				-			(204	)
Other comprehensive income (loss) before reclassifications		(24	)		966			-		5,690			6,632
Reclassification		-			(1,101	)		-		-			(1,101	)
Tax on reclassification		-			135			-		-			135
Losses reclassified from accumulated other comprehensive income		-			(966	)		-		-			(966	)
Net current period other comprehensive income (loss)		(24	)		-			-		5,690			5,666
Ending balance	$	240		$	-		$	-	$	3,617		$	3,857

The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2019:

	Unrealized gains (losses) on available-for-sale marketable securities			Unrealized gains on cash flow hedges		Foreign currency translation adjustments on intra-entity transactions that are of a long-term investment in nature		Unrealized gains (losses) on foreign currency translation			Total
Beginning balance	$	(656	)	$	-	$	-	$	132		$	(524	)
Revaluation		1,034			-		-		(2,205	)		(1,171	)
Tax on revaluation		(205	)		-		-		-			(205	)
Other comprehensive income (loss) before reclassifications		829			-		-		(2,205	)		(1,376	)
Reclassification		91			-		-		-			91
Tax on reclassification		-			-		-		-			-
Losses reclassified from accumulated other comprehensive income		91			-		-		-			91
Net current period other comprehensive income (loss)		920			-		-		(2,205	)		(1,285	)
Ending balance	$	264		$	-	$	-	$	(2,073	)	$	(1,809	)

Schedule of Reclassifications out of AOCI

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Statement of Income
		2021			2020			2019
Unrealized gains on available-for-sale marketable securities
	$	16		$	-		$	(91	)	Financial income (expenses), net
		(4	)		-			-		Income taxes
	$	12			-		$	(91	)	Total, net of income taxes
Unrealized gains on cash flow hedges, net
		333			189			-		Cost of revenues
		1,645			623			-		Research and development
		334			136			-		Sales and marketing
		430			153			-		General and administrative
	$	2,742		$	1,101		$	-		Total, before income taxes
		(327	)		(135	)		-		Income taxes
		2,415			966			-
Total reclassifications for the period	$	2,427		$	966		$	(91	)

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

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

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

	Year ended December 31,
	2021		2020		2019
Basic EPS:
Numerator:
Net income	$	169,170	$	140,322	$	144,957
Net loss attributable to Non-controlling interests		-		-		1,592
		169,170		140,322		146,549
Denominator:
Shares used in computing net earnings per share of common stock, basic		52,202,182		50,217,330		47,918,938
Diluted EPS:
Numerator:
Net income attributable to common stock, basic	$	169,170	$	140,322	$	144,957
Net loss attributable to Non-controlling interests		-		-		1,592
Undistributed earnings reallocated to non-vested stockholders		-		-		(906	)
Notes due 2025		2,134		-		-
Net income attributable to common stock, diluted	$	171,304	$	140,322	$	145,643
Denominator:
Shares used in computing net earnings per share of common stock, basic		52,202,182		50,217,330		47,918,938
Non-vested PSUs		-		-		(312,128	)
Notes due 2025		2,276,818		-		-
Effect of stock-based awards		1,492,030		2,578,146		2,588,851
Shares used in computing net earnings per share of common stock, diluted		55,971,030		52,795,475		50,195,661

OTHER OPERATING EXPENSES (INCOME), NET (Tables)

12 Months Ended

Dec. 31, 2021

Temporary Equity Stock Issued During Period Shares New Issues

Schedule of Other Operating Expenses

	Year ended December 31,
	2021			2020			2019
Kokam purchase escrow (1)(2)	$	(859	)	$	(4,900	)	$	4,900
Write-off of long-lived assets		2,209			1,471			-
Compensation package related to the passing of the former Founder, CEO and Chairman(3)		-			-			8,305
Termination of SolarEdge Automation Machines’s former executive(4)		-			-			12,222
Sale of SolarEdge Automation Machines’s subsidiary(5)		-			-			5,269
Total other operating expenses (income)	$	1,350		$	(3,429	)	$	30,696

1.	In the year ended December 31, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.
2.	In the year ended December 31, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.
3.	On August 25, 2019, the Company announced the untimely death of Mr. Guy Sella, Founder, who had served as CEO and Chairman of the Board of Directors until shortly before his passing. The amount is related to payroll, bonus and acceleration of stock-based compensation award.
4.	As part of SolarEdge Automation Machines acquisition, the Company issued to a shareholder who had served as an executive of SolarEdge Automation Machines 334,095 PSUs, which were subject to certain performance goals and a vesting period. In December 2019, in connection with a separation agreement between the parties, the Company and the shareholder amended the original agreement, which resulted in a modification to the terms of 150,000 of the original PSUs, such as, the fair value of the PSU, the service period and the performance goals. The Company exercised a call option with respect to the remaining 183,395 PSUs, for a price per share equal to €0.01.
5.	On December 31, 2019, the Company completed the sale of a SolarEdge Automation Machines subsidiary.

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of deferred tax liabilities and assets

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

	December 31,
	2021			2020			2019
Deferred tax assets, net:
Research and Development carryforward expenses	$	2,479		$	1,843		$	4,994
Carryforward tax losses(1)		19,635			20,468			6,318
Stock based compensation expenses		12,140			6,400			4,898
Deferred revenue		8,078			5,609			3,621
Inventory Impairment		1,326			1,977			2,442
Allowance and other reserves		10,911			4,372			7,305
Total Gross deferred tax assets, net	$	54,569		$	40,669		$	29,578
Less, Valuation Allowance		(14,648	)		(9,634	)		(2,317	)
Total deferred tax assets, net	$	39,921		$	31,035		$	27,261
Deferred tax liabilities, net:
Intercompany transactions	$	(6,099	)	$	-		$	-
Convertible Note		-			(11,830	)		-
Purchase price allocation		(6,406	)		(16,122	)		(15,424	)
Total deferred tax liabilities, net	$	(12,505	)	$	(27,952	)	$	(15,424	)
Recorded as:
Deferred tax assets, net	$	27,572		$	11,676		$	16,298
Deferred tax liabilities, net		(156	)		(8,593	)		(4,461	)
Net deferred tax assets	$	27,416		$	3,083		$	11,837

Schedule of Uncertain Tax Positions

e. Uncertain tax positions:

	December 31,
	2021			2020		2019
Balance, at the beginning of the period	$	10,564		$	9,532	$	8,499
Increases related to current year tax positions		635			757		651
Increase for tax positions related to prior years		-			275		382
Decreases related to prior year tax positions		(9,007	)		-		-
Balance, at end of the period	$	2,192		$	10,564	$	9,532

Schedule of Income (Loss) Before Taxes

f. Income before income taxes are comprised as follows:

	Year ended December 31,
	2021		2020		2019
Domestic	$	13,659	$	33,909	$	6,029
Foreign		173,565		129,757		172,574
Income before income taxes	$	187,224	$	163,666	$	178,603

Schedule of Income taxes

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

	Year ended December 31,
	2021			2020			2019
Current taxes:
U.S. Federal and State	$	(7,872)		$	1,842		$	10,093
Foreign		37,564			24,936			29,590
Total current taxes		29,692			26,778			39,683
Deferred taxes:
U.S. Federal and State		(3,682	)		2,794			(3,414	)
Foreign		(7,956	)		(6,228	)		(2,623	)
Total deferred taxes		(11,638	)		(3,434	)		(6,037	)
Income taxes, net	$	18,054		$	23,344		$	33,646

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

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

	Year ended December 31,
	2021			2020			2019

Statutory tax rate		21	%		21	%		21	%
Effect of:
Income tax at rate other than the U.S. statutory tax rate		(7.4	)%		(6.9	)%		(5.0	)%
Losses and timing differences for which valuation allowance was provided		-			4.4	%		1.3	%
Prior year tax Income/(Expenses)		(4.4	)%		(0.4	)%		0.1	%
Tax Cuts and Jobs Act of 2017		0.1	%		-	%		(0.7	)%
Disallowable and allowable deductions		2.0	%		(2.6	)%		2.3	%
Other individually immaterial income tax items, net		(1.7	)%		(1.3	)%		(0.2	)%
Effective tax rate		9.6	%		14.2	%		18.8	%

FINANCIAL (EXPENSES) INCOME, NET (Tables)

12 Months Ended

Dec. 31, 2021

Nonoperating Income (Expense) [Abstract]

Schedule of Financial Expenses (Income), Net

		Year ended December 31,
	2021			2020			2019
Exchange rate (loss) gain, net	$	(22,493	)	$	33,065		$	(10,342	)
Marketable securities		2,973			3,750			4,712
Convertible note		(2,903	)		(3,185	)		-
Hedging		9,417			(4,013	)		-
Interest expenses		(6,376	)		(5,330	)		(4,805	)
Bank charges		(1,991	)		(2,048	)		(1,021	)
Other financial income (expenses), net		1,458			(1,134	)		113
	$	(19,915	)	$	21,105		$	(11,343	)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Reportable Segments and Operating Income

	Year ended December 31,
	2021					2020					2019
	Solar		All other			Solar		All other			Solar		All other
Revenues	$	1,787,280	$	176,167		$	1,357,261	$	102,804		$	1,336,618	$	89,042
Cost of revenues		1,136,896		169,582			882,420		95,280			852,330		75,702
Gross profit		650,384		6,585			474,841		7,524			484,288		13,340
Research and development		143,173		30,506			110,567		25,417			91,868		12,520
Sales and marketing		85,309		9,930			66,823		8,562			67,275		8,433
General and administrative		53,156		13,536			41,723		10,389			31,201		9,561
Segments profit (loss)	$	368,746	$	(47,387	)	$	255,728	$	(36,844	)	$	293,944	$	(17,174	)

	Year ended December 31,
	2021			2020			2019
Solar segment profit	$	368,746		$	255,728		$	293,944
All other segment loss		(47,387	)		(36,844	)		(17,174	)
Segments operating profit		321,359			218,884			276,770
Amounts not allocated to segments:
Stock based compensation expenses		(102,593	)		(67,309	)		(60,353	)
Amortization related to business combinations		(10,812	)		(9,336	)		(9,470	)
Sale of SolarEdge Automation Machines’ subsidiary		-			-			(5,269	)
Legal settlement		763			4,900			(4,900	)
Other unallocated expenses		(1,578	)		(4,450	)		(6,832	)
Adjustments:
Inter-segment profit		-			(128	)		-
Consolidated operating income	$	207,139		$	142,561		$	189,946

Schedule of Reportable Segments Reconciliation to Consolidated Revenues

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

	Year ended December 31,
	2021		2020			2019
Solar segment revenues	$	1,787,280	$	1,357,261		$	1,336,618
All other segment revenues		176,167		102,804			89,042
Revenues from financing component		418		-			-
Inter-segment revenues		-		(794	)		-
Consolidated revenues	$	1,963,865	$	1,459,271		$	1,425,660

Summary of Revenues Within Geographic Areas

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

	Year ended December 31,
		2021		2020		2019
United States	$	786,019	$	613,090	$	678,565
Europe(*)		670,394		426,531		345,685
Netherlands		222,103		199,498		199,526
Rest of the world		285,349		220,152		201,884
Total revenues	$	1,963,865	$	1,459,271	$	1,425,660

(*) Except for Netherlands

Summary of Revenues By Product Family

c. Revenues by product:

	Year ended December 31,
	2021		2020		2019
Inverters	$	828,101	$	641,799	$	626,445
Optimizers		828,542		625,465		634,007
Others		307,222		192,007		165,208
Total revenues	$	1,963,865	$	1,459,271	$	1,425,660

Schedule of Long-lived Assets By Geographic Region

d. Long-lived assets by geographic location:

	As of December 31,
		2021		2020
Israel	$	271,700	$	216,095
Korea		118,209		62,570
China		30,412		32,655
Europe		21,547		24,233
Other		15,649		9,455
Total long-lived assets (*)	$	457,517	$	345,008

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Severance pay
Severance expenses	$ 14,231	$ 10,598	$ 7,285
Shipping and handling costs
Shipping and handling costs	$ 116,574	101,597	$ 113,635
Warranty obligations
Minimum term of warranty obligation for StorEdge products.	10 years
Minimum term of warranty obligations for inverters	12 years
Term of extendable for additional cost	20 or 25 years
Minimum term of warranty obligations for power optimizers	25 years
Maximum extended product warranty period	25 years
Derivative financial instruments
Total initial issuance costs	$ 14,631
Debt issuance costs under liability	13,501
Debt issuance costs under equity	1,130
Cumulative effect of adopting ASU 2020-06 on retained earnings	2,884
Cumulative effect of adopting ASU 2020-06 on additional paid-in capital	36,336
Cumulative effect of adopting ASU 2020-06 on convertible senior notes	45,282
Cumulative effect of adopting ASU 2020-06 on deferred tax liabilities	11,830
Accrued Exchange Fee Rebate	152,717	$ 65,131
Accounting Standards Update 2020-06 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Derivative financial instruments
Increase of retained earnings	2,884
Decrease in additional paid-in capital	36,336
Increase in convertible senior notes	45,282
Decrease in deferred tax liabilities	$ 11,830
Sales Revenue, Goods, Net [Member] \| Customer Concentration Risk [Member] \| Major Customer One [Member]
Derivative financial instruments
Concentration risk percentage	30.90%	14.80%	20.40%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Major Customer One [Member]
Derivative financial instruments
Concentration risk percentage	39.30%	34.60%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Two Contract Manufacturers [Member]
Derivative financial instruments
Concentration risk percentage	27.90%	48.50%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Allowance for Credit Losses) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Accounting Policies [Abstract]
Balance, at beginning of period	$ 2,886
Provision for expected credit losses	(142)
Amounts written off charged against the allowance and others	(118)
Balance, at end of period	$ 2,626

- Definition

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

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property and Equipment) (Details)	12 Months Ended
	Dec. 31, 2021
Buildings and plants [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	5.40%
Buildings and plants [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	2.50%
Buildings and plants [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	5.70%
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	33.30%
Computers and peripheral equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	14.30%
Computers and peripheral equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	33.30%
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Office furniture and fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Office furniture and fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	25.00%
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	10.00%
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	10.00%
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	20.00%
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	10.00%
Laboratory Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	7.00%
Laboratory Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, depreciation rate	20.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimate Fair Value of Stock Options and Warrants) (Details) - Employee and Executive Director [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	0.43%	1.73%	2.53%
Dividend yields	0.00%	0.00%	0.00%
Volatility	60.74%	58.98%	56.26%
Expected option term in years	5 years 5 months 23 days	6 years	6 years 10 days
Estimated forfeiture rate	0.00%	0.00%	0.00%
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yields	0.00%	0.00%	0.00%
Expected option term in years	6 months	6 months	6 months
Employee Stock Purchase Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	0.03%	0.09%	1.63%
Volatility	48.39%	55.95%	46.68%
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest	0.10%	1.63%	2.35%
Volatility	76.05%	92.57%	55.95%

MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Warranty Obligations [Abstract].
Proceeds from maturity of available-for-sale	$ 187,375	$ 141,839	$ 120,834
Proceeds from sale of available-for-sale securities	14,813		21,910
Realized loss	$ 16		$ 91

MARKETABLE SECURITIES (Schedule of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available for-sale - matures within one year, amortized cost	$ 168,038	$ 143,224
Available for-sale - matures within one year, gross unrealized gains	23	520
Available for-sale - matures within one year, gross unrealized losses	(333)	(57)
Available for-sale - matures within one year, fair value	167,728	143,687
Available for-sale - matures after one year, amortized cost	487,918	147,596
Available for-sale - matures after one year, gross unrealized gains	9	65
Available for-sale - matures after one year, gross unrealized losses	(5,699)	(227)
Available for-sale - matures after one year, fair value	482,228	147,434
Amortized cost	655,956	290,820
Gross unrealized gains	32	585
Gross unrealized losses	(6,032)	(284)
Fair value	649,956	291,121
Corporate bonds [Member]
Available for-sale - matures within one year, amortized cost	160,462	141,824
Available for-sale - matures within one year, gross unrealized gains	23	509
Available for-sale - matures within one year, gross unrealized losses	(320)	(57)
Available for-sale - matures within one year, fair value	160,165	142,276
Available for-sale - matures after one year, amortized cost	474,412	142,701
Available for-sale - matures after one year, gross unrealized gains	9	65
Available for-sale - matures after one year, gross unrealized losses	(5,580)	(214)
Available for-sale - matures after one year, fair value	468,841	142,552
Governmental bonds [Member]
Available for-sale - matures within one year, amortized cost	7,576	1,400
Available for-sale - matures within one year, gross unrealized gains	0	11
Available for-sale - matures within one year, gross unrealized losses	(13)	0
Available for-sale - matures within one year, fair value	7,563	1,411
Available for-sale - matures after one year, amortized cost	13,506	4,895
Available for-sale - matures after one year, gross unrealized gains	0	0
Available for-sale - matures after one year, gross unrealized losses	(119)	(13)
Available for-sale - matures after one year, fair value	$ 13,387	$ 4,882

INVENTORIES, NET (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory Write-down	$ 7,142	$ 8,864	$ 4,528

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 247,386	$ 128,363
Work in process	13,863	25,461
Finished goods	118,894	177,872
Inventories	$ 380,143	$ 331,696

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

Dec. 31, 2021

Dec. 31, 2020

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

Vendor non-trade receivables

^[1]

$ 71,041

$ 56,617

Government authorities

63,440

50,041

Bank deposits

60,096

Prepaid expenses and other

42,511

31,352

Prepaid expenses and other current assets

$ 176,992

$ 198,106

[1]

Vendor non-trade receivables derive from the sale of components to manufacturing vendors who manufacture products for the Company. The Company purchases these components directly from other suppliers. The Company does not reflect the sale of these components to the contract manufacturers in its revenues (see also Note 18b).

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	$ 560,879	$ 423,982
Less - accumulated depreciation	150,500	120,574
Total property, plant and equipment, net	410,379	303,408
Depreciation expenses	29,359	22,355	$ 17,261
Land [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	13,829	17,935
Buildings and plants [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	62,519	49,855
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	44,960	37,354
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	10,772	8,639
Laboratory and testing equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	41,365	29,733
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	201,406	183,512
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	73,991	48,610
Assets under construction and payments on account [Member]
Property, Plant and Equipment [Line Items]
Gross Property, plant and equipment	$ 112,037	$ 48,344

LEASES (Schedule of Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Total lease assets	$ 88,895	$ 70,151
Liabilities:
Operating leases long term	38,912	35,194
Finance leases long term	40,508	26,173
Total lease liabilities	94,023	74,047
Accrued expenses and other current liabilities [Member]
Liabilities:
Operating leases short term	12,728	10,994
Finance leases short term	1,875	1,686
Operating lease liabilities [Member]
Liabilities:
Operating leases long term	38,912	35,194
Other long term liabilities [Member]
Liabilities:
Finance leases long term	40,508	26,173
Operating lease right-of use assets, net [Member]
Assets:
Operating lease assets, net of lease incentive obligation	47,137	41,600
Property, plant and equipment, net [Member]
Assets:
Finance lease assets	$ 41,758	$ 28,551

LEASES (Schedule of Information Related to Operating and Finance Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finance leases:
Finance lease cost	$ 2,065	$ 198
Weighted average remaining lease term in years	16 years 5 months 4 days	16 years 9 months
Weighted average annual discount rate	1.93%	1.49%
Operating leases:
Operating lease cost	$ 14,890	$ 12,741
Weighted average remaining lease term in years	10 years 3 months	9 years 11 months 8 days
Weighted average annual discount rate	1.68%	1.68%

LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$ 14,890	$ 12,741
Operating cash flows for finance leases	523	72
Financing cash flows for finance leases	$ 1,293	$ 234

LEASES (Schedule of Operating and Finance lease liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating leases
2022	$ 13,332
2023	11,495
2024	6,512
2025	3,671
2026	2,416
Thereafter	19,968
Total lease payments	57,394
Less amount of lease payments representing interest	(5,754)
Present value of future lease payments	51,640
Less current lease liabilities	(12,728)
Long-term lease liabilities	38,912	$ 35,194
Finance lease
2022	2,749
2023	2,749
2024	2,798
2025	2,945
2026	2,945
Thereafter	36,509
Total lease payments	50,695
Less amount of lease payments representing interest	(8,312)
Present value of future lease payments	42,383
Less current lease liabilities	(1,875)
Finance lease liabilities	$ 40,508	$ 26,173

INTANGIBLE ASSETS AND GOODWILL, NET (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 10,176	$ 9,479	$ 9,634

INTANGIBLE ASSETS AND GOODWILL, NET (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets:
Gross intangible assets	$ 87,826	$ 88,282
Less - accumulated amortization	(28,965)	(20,464)
Total intangible assets, net	58,861	67,818
Current Technology [Member]
Finite-lived intangible assets:
Gross intangible assets	74,976	78,375
Customer Relationships [Member]
Finite-lived intangible assets:
Gross intangible assets	3,946	4,227
Trade names [Member]
Finite-lived intangible assets:
Gross intangible assets	3,929	4,280
Assembled Workforce [Member]
Finite-lived intangible assets:
Gross intangible assets	3,575	0
Patents [Member]
Finite-lived intangible assets:
Gross intangible assets	$ 1,400	$ 1,400

INTANGIBLE ASSETS AND GOODWILL, NET (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 10,755
2023	10,741
2024	10,176
2025	9,142
2026	8,356
2027 and thereafter	9,691
Total intangible assets, net	$ 58,861	$ 67,818

INTANGIBLE ASSETS AND GOODWILL, NET (Schedule of Goodwill Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	$ 140,479	$ 129,654
Foreign currency adjustments	(10,850)	10,825
Goodwill at December 31	129,629	140,479
Solar [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	33,255	31,265
Foreign currency adjustments	(2,750)	1,990
Goodwill at December 31	30,505	33,255
All other [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill at January 1	107,224	98,389
Foreign currency adjustments	(8,100)	8,835
Goodwill at December 31	$ 99,124	$ 107,224

INVESTMENT IN PRIVATELY-HELD COMPANY (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Feb. 01, 2021	Jan. 31, 2021
Auto Grid Systems [Member]
Schedule of Equity Method Investments [Line Items]
Equity investment in privately held company without readily determinable fair value	$ 16,643	$ 5,000	$ 11,643

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) ₩ in Thousands, $ in Thousands, € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2021 AUD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 KRW (₩)	Dec. 31, 2021 USD ($)
Derivative [Line Items]
Fair value of derivative assets		$ 3,786				$ 4,009
Gain and loss of financial income (expense), net	$ 9,417	4,013
Fair value of derivative liabilities		5,819				169
Unrealized gain related to the derivative assets designated as hedging instruments	$ 3,289	$ 966
Foreign exchange forward contracts [Member] \| USD [Member]
Derivative [Line Items]
Forward/option contracts					₩ 40,000	$ 64,997
Foreign exchange forward contracts [Member] \| Australia, Dollars [Member]
Derivative [Line Items]
Forward/option contracts			$ 18
Foreign exchange forward contracts [Member] \| Euro [Member]
Derivative [Line Items]
Forward/option contracts \| €				€ 24.5
Put and Call Options [Member] \| Euro [Member]
Derivative [Line Items]
Forward/option contracts \| €				€ 9.0

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Level 1 [Member] \| Money Market Funds [Member]
Fair value of assets	$ 21,680	$ 480,673
Level 2 [Member] \| Options and forward contracts not designated as hedging instruments [Member] \| Derivative Financial Instruments Liabilities [Member]
Fair value of liabilities	(169)	(5,819)
Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Forward contracts designated as hedging instruments [Member]
Fair value of assets	992	0
Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Options and forward contracts not designated as hedging instruments [Member]
Fair value of assets	3,017	3,786
Level 2 [Member] \| Short-term corporate bonds [Member]
Fair value of assets	160,165	142,276
Level 2 [Member] \| Short-term governmental bonds [Member]
Fair value of assets	7,563	1,411
Level 2 [Member] \| Long-term corporate bonds [Member]
Fair value of assets	468,841	142,552
Level 2 [Member] \| Long-term governmental bonds [Member]
Fair value of assets	$ 13,387	$ 4,882

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

DEFERRED REVENUES (Schedule of Balances of Deferred Revenues) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue Recognition and Deferred Revenue [Abstract]
Balance, at the beginning of the period	$ 140,020	$ 160,797
Revenue recognized	(26,765)	(72,870)
Increase in deferred revenues and customer advances	56,089	52,093
Balance, at the end of the period	169,344	140,020
Less current portion	(17,788)	(24,648)
Long term portion	$ 151,556	$ 115,372

DEFERRED REVENUES (Schedule Estimated Revenues Expected To Recognized In Future To Performance Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred revenues	$ 169,344	$ 140,020	$ 160,797
2022 [Member]
Deferred revenues	17,788
2023 [Member]
Deferred revenues	12,742
2024 [Member]
Deferred revenues	7,609
2025 [Member]
Deferred revenues	6,355
2026 [Member]
Deferred revenues	5,595
Thereafter [Member]
Deferred revenues	$ 119,255

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued expenses	$ 51,014	$ 47,757
Government authorities	22,631	26,218
Operating lease liabilities	12,728	10,994
Provision for legal claims	11,622	5,866
Loans and borrowings	148	16,894
Other	11,236	15,319
Accrued expenses and other accounts payable	$ 109,379	$ 123,048

CONVERTIBLE SENIOR NOTES (Narrative) (Details)	1 Months Ended	12 Months Ended
CONVERTIBLE SENIOR NOTES (Narrative) (Details)	Sep. 25, 2020 USD ($) d $ / shares	Dec. 31, 2021 USD ($)
Convertible Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Debt conversion, description		On September 25, 2020, the Company sold $632,500 aggregate principal amount of its 0.00% convertible senior notes due 2025 (the “Notes”). The Notes were sold pursuant to an indenture, dated September 25, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Notes do not bear regular interest and mature on September 15, 2025, unless earlier repurchased or converted in accordance with their terms. The Notes are general senior unsecured obligations of the Company. Holders may convert their Notes prior to the close of business on the business day immediately preceding June 15, 2025 in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events as described in the Indenture. In addition, holders may convert their Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after June 15, 2025, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the Notes, without regard to the foregoing circumstances. The initial conversion rate for the Notes was 3.5997 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $277.80 per share of common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture.
Principal amount sold	$ 632,500
Coupon rate	0.00%
Maturity date	Sep. 15, 2025
Conversion amount	$ 1,000	$ 1,000
Conversion days \| d	30
Conversion rate \| $ / shares	$ 3.5997
Amount of conversion	$ 1,000
Conversion price \| $ / shares	$ 277.80
Amortized term		3 years 8 months 12 days
Effective interest		0.47%
Amount by which the if-converted value of the Notes exceeded the principal amount		$ 178,827
Senior Notes [Member] \| Level 2 [Member]
Debt Instrument [Line Items]
Estimated fair value of notes		$ 811,327

CONVERTIBLE SENIOR NOTES (Schedule of Convertible Senior Notes) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Liability:
Principal	$ 632,500	$ 632,500
Unamortized debt discount	0	(46,353)
Unamortized issuance costs	(10,965)	(12,797)
Net carrying amount	621,535	573,350
Equity component:
Amount allocated to conversion option	0	48,834
Deferred taxes liability, net	0	(11,368)
Allocated issuance costs	0	(1,130)
Equity component, net	$ 0	$ 36,336

CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense Recognized) (Details) - Convertible Senior Notes due 2025 [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Amortization of debt discount	$ 0	$ 2,480
Amortization of debt issuance costs	2,903	705
Total interest expenses	$ 2,903	$ 3,185

OTHER LONG TERM LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Tax liabilities	$ 5,105	$ 5,062
Accrued severance pay	1,739	1,561
Deferred tax liability	156	8,593
Other	3,649	7,568
Other non-current liabilities	$ 10,649	$ 22,784

STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan	10,000,000
Unrecognized compensation expense	$ 309,177
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	379,358
Employee Stock Option [Member] \| Employees and members of board of directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 65,668	$ 251,564	$ 37,509
Weighted average grant date fair values options granted to employees and executive directors	$ 168.71	$ 62.11	$ 19.83
Employee Stock Option [Member] \| 2015 Global Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan	15,406,316
Number of options available for future grant under the plan	8,617,974
Percentage of common shares increase automatically each year	5.00%
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance pursuant to stock awards under the plan	3,175,094
Number of options available for future grant under the plan	2,513,267
Number of Common stock purchased	661,827
Period of plan increase automatically number of shares	487,643
Percentage of common shares increase automatically each year	1.00%
Maximum percentage of salary	15.00%
Aggregate limit per participant	$ 15
Purchase price of common stock, percent	85.00%
PSUs [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	132,673
Weighted average grant date fair value	$ 294.04
RSUs and PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	703,039
Weighted average grant date fair value	$ 278.03	$ 71.46	$ 41.45

STOCK CAPITAL (Summary of the activity in the share options) (Details) - Employee Stock Option [Member] - Employees and Members of Board of Directors [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of options
Outstanding at the beginning of the period	691,732
Granted	19,489
Exercised	(231,008)
Forfeited or expired	(10,432)
Outstanding at the end of the period	469,781	691,732
Weighted average exercise price
Outstanding at the beginning of the period	$ 31.86
Granted	311.35
Exercised	28.02
Forfeited or expired	44.24
Outstanding at the end of the period	$ 45.07	$ 31.86
Weighted average remaining contractual term in years
Outstanding	5 years 3 months	5 years 25 days
Aggregate intrinsic Value
Outstanding at the beginning of the period	$ 198,709
Outstanding at the end of the period	$ 111,236	$ 198,709
Vested and expected to vest at the end of the period
Number of options	441,238
Weighted average exercise price	$ 40.48
Weighted average remaining contractual term in years	5 years 6 months 10 days
Aggregate intrinsic Value	$ 106,377
Exercisable at the end of the period
Number of options	373,664
Weighted average exercise price	$ 29.58
Weighted average remaining contractual term in years	5 years 1 month 28 days
Aggregate intrinsic Value	$ 93,897

STOCK CAPITAL (Schedule of RSUs and PSUs Activity) (Details) - RSUs and PSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at beginning of period	2,216,841
Granted	703,039
Vested	(955,125)
Forfeited	(125,804)
Unvested at end of period	1,838,951	2,216,841
Weighted average grant date fair value, beginning of period	$ 103.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	278.03	$ 71.46	$ 41.45
Weighted average grant date fair value, vested	81.76
Weighted average grant date fair value, forfeited	136.71
Weighted average grant date fair value, end of period	$ 178.64	$ 103.79

STOCK CAPITAL (Schedule of stock-based compensation expense for employees and nonemployee) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 102,593	$ 67,309	$ 60,353
Cost of revenues [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	18,743	11,082	6,964
Research and development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	45,424	27,048	16,872
Selling and marketing [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	22,834	19,413	11,062
General and administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	15,592	9,766	6,991
Other operating expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 0	$ 0	$ 18,464

COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands, € in Millions, ₪ in Millions			1 Months Ended						12 Months Ended
	Aug. 07, 2020 CNY (¥)	Aug. 07, 2020 USD ($)	Oct. 31, 2021 CNY (¥)	Oct. 31, 2021 USD ($)	Feb. 22, 2021 CNY (¥)	Feb. 22, 2021 USD ($)	Jan. 31, 2021 CNY (¥)	Jan. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 EUR (€) Integer	Dec. 31, 2020 ILS (₪) Integer	Dec. 31, 2020 USD ($) Integer
Non-cancelable purchase obligations									$ 1,428,766
Provision for loss									4,071
Contractual obligations for capital expenditures									168,528
Lawsuit claims								$ 7,923
Damage amount paid		$ 1,647		$ 1,647		$ 7,923
Number of entity's patents that another entity was found to have infringed			3	3
Legal claims									11,622
Former Consultant and Israeli Subsidiary [Member]
Lawsuit claims												$ 8,199
Israel, New Shekels \| Former Consultant and Israeli Subsidiary [Member]
Lawsuit claims \| ₪											₪ 25.5
RMB [Member]
Lawsuit claims \| ¥							¥ 50,500
Damage amount paid \| ¥	¥ 10,500,000		¥ 10,500,000		¥ 50,500,000
Patents [Member]
Value in dispute												$ 6,225
Number of patents infringed \| Integer										1	1	1
Patents [Member] \| Euro Member Countries, Euro [Member]
Value in dispute \| €										€ 5.5
Office Rent Lease Agreements [Member]
Guarantees amount									4,938
Other Transactions [Member]
Guarantees amount									$ 2,250

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (schedule of changes in aoci) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Beginning balance	$ 3,857	$ (1,809)	$ (524)
Revaluation	(29,649)	6,836	(1,171)
Tax on revaluation	900	(204)	(205)
Other comprehensive income (loss) before reclassifications	(28,749)	6,632	(1,376)
Reclassification	(2,758)	(1,101)	91
Tax on reclassification	331	135	0
Losses reclassified from accumulated other comprehensive income	(2,427)	(966)	91
Net current period other comprehensive income (loss)	(31,176)	5,666	(1,285)
Ending balance	(27,319)	3,857	(1,809)
Unrealized gains (losses) on available-for-sale marketable securities [Member]
Beginning balance	240	264	(656)
Revaluation	(6,283)	45	1,034
Tax on revaluation	1,346	(69)	(205)
Other comprehensive income (loss) before reclassifications	(4,937)	(24)	829
Reclassification	(16)	0	91
Tax on reclassification	4	0	0
Losses reclassified from accumulated other comprehensive income	(12)	0	91
Net current period other comprehensive income (loss)	(4,949)	(24)	920
Ending balance	(4,709)	240	264
Unrealized gains on cash flow hedges [Member]
Beginning balance	0	0	0
Revaluation	3,735	1,101	0
Tax on revaluation	(446)	(135)	0
Other comprehensive income (loss) before reclassifications	3,289	966	0
Reclassification	(2,742)	(1,101)	0
Tax on reclassification	327	135	0
Losses reclassified from accumulated other comprehensive income	(2,415)	(966)	0
Net current period other comprehensive income (loss)	874	0	0
Ending balance	874	0	0
Accumulated Translation Adjustment On Intra Entity Transactions Long Term Investment Nature [Member]
Beginning balance	0	0	0
Revaluation	(17,420)	0	0
Tax on revaluation	0		0
Other comprehensive income (loss) before reclassifications	(17,420)	0	0
Reclassification	0	0	0
Tax on reclassification	0	0	0
Losses reclassified from accumulated other comprehensive income	0	0	0
Net current period other comprehensive income (loss)	(17,420)	0	0
Ending balance	(17,420)	0	0
Unrealized gains (losses) on foreign currency translation [Member]
Beginning balance	3,617	(2,073)	132
Revaluation	(9,681)	5,690	(2,205)
Tax on revaluation	0	0	0
Other comprehensive income (loss) before reclassifications	(9,681)	5,690	(2,205)
Reclassification	0	0	0
Tax on reclassification	0	0	0
Losses reclassified from accumulated other comprehensive income	0	0	0
Net current period other comprehensive income (loss)	(9,681)	5,690	(2,205)
Ending balance	$ (6,064)	$ 3,617	$ (2,073)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (schedule of reclassifications of other comprehensive income loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenues	$ 1,334,547	$ 997,912	$ 946,322
Research and development	219,633	163,123	121,351
Sales and marketing	119,000	95,985	87,984
General and administrative	82,196	63,119	49,361
Total, before income taxes	422,179	318,798	289,392
Income taxes	(18,054)	(23,344)	(33,646)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	169,170	140,322	144,957
Unrealized gains on available-for-sale marketable securities [Member] \| Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Financial (expenses) income, net	16	0	(91)
Income taxes	(4)	0	0
Total, net of income taxes	12	0	(91)
Unrealized gains on cash flow hedges, net [Member] \| Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cost of revenues	333	189	0
Research and development	1,645	623	0
Sales and marketing	334	136	0
General and administrative	430	153	0
Total, before income taxes	2,742	1,101	0
Income taxes	(327)	(135)	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	2,415	966	0
Other Comprehensive Income (Loss), Net of Tax	$ 2,427	$ 966	$ (91)

EARNINGS PER SHARE (Narrative) (Details) - shares	12 Months Ended
EARNINGS PER SHARE (Narrative) (Details) - shares	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities	2,276,818	312,128

EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income	$ 169,170	$ 140,322	$ 144,957
Net loss attributable to Non-controlling interests	0	0	1,592
Net income attributable to SolarEdge Technologies, Inc.	$ 169,170	$ 140,322	$ 146,549
Denominator:
Shares used in computing net earnings per share of common stock, basic	52,202,182	50,217,330	47,918,938
Numerator:
Net income attributable to common stock, basic	$ 169,170	$ 140,322	$ 144,957
Net loss attributable to Non-controlling interests	0	0	1,592
Undistributed earnings reallocated to non-vested stockholders	0	0	(906)
Notes due 2025	2,134	0	0
Net income attributable to common stock, diluted	$ 171,304	$ 140,322	$ 145,643
Denominator:
Shares used in computing net earnings per share of common stock, basic	52,202,182	50,217,330	47,918,938
Non-vested PSUs	0	0	(312,128)
Notes due 2025	2,276,818	0	0
Effect of stock-based awards	1,492,030	2,578,146	2,588,851
Shares used in computing net earnings per share of common stock, diluted	55,971,030	52,795,475	50,195,661

OTHER OPERATING EXPENSES (INCOME), NET (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Dec. 31, 2021 € / shares shares
A settlement of pre-acquisition legal claim against Kokam \| $	$ 859	$ 4,900
SMRE Acquisition [Member] \| Phantom Share Units (PSUs) [Member]
Shares issued in acquisition	334,095
Number of original issued PSUs modified per separation agreement			150,000
Number of PSUs remaining, exercised in call option			183,395
Exercise price per share \| € / shares			€ 0.01

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

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Temporary Equity Stock Issued During Period Shares New Issues

Kokam purchase escrow

^[1],[2]

$ (859)

$ (4,900)

$ 4,900

Write-off of long-lived assets

2,209

1,471

Compensation package related to the passing of the former Founder, CEO and Chairman

^[3]

8,305

Termination of SolarEdge Automation Machines’s former executive

^[4]

12,222

Sale of SolarEdge Automation Machines's subsidiary

^[5]

5,269

Total other operating expenses (income)

$ 1,350

$ (3,429)

$ 30,696

[1]	In the year ended December 31, 2020, the Company was indemnified for an amount of $4,900 out of the escrow, with regards to a legal claim of Kokam that was settled in arbitration.
[2]	In the year ended December 31, 2021, the Company received a payment of $859 out of the Kokam Co., Ltd. (“Kokam”) acquisition escrow (“the escrow”), with regards to a working capital adjustment.
[3]	On August 25, 2019, the Company announced the untimely death of Mr. Guy Sella, Founder, who had served as CEO and Chairman of the Board of Directors until shortly before his passing. The amount is related to payroll, bonus and acceleration of stock-based compensation award.
[4]	As part of SolarEdge Automation Machines acquisition, the Company issued to a shareholder who had served as an executive of SolarEdge Automation Machines 334,095 PSUs, which were subject to certain performance goals and a vesting period. In December 2019, in connection with a separation agreement between the parties, the Company and the shareholder amended the original agreement, which resulted in a modification to the terms of 150,000 of the original PSUs, such as, the fair value of the PSU, the service period and the performance goals. The Company exercised a call option with respect to the remaining 183,395 PSUs, for a price per share equal to €0.01.
[5]	On December 31, 2019, the Company completed the sale of a SolarEdge Automation Machines subsidiary.

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Line Items]
Corporate tax rate (as a percent)	35.00%	21.00%	21.00%	21.00%
U.S. income tax rate for foreign subsidiaries earnings		15.50%
U.S. income tax rate for foreign subsidiaries earnings for other net current assets on remaining earnings		8.00%
Total tax liability		$ 8,500
Gross unrecognized tax benefits		2,192	$ 10,564	$ 9,532
Expected decrease in gross unrecognized tax benefits		$ 57
Tax rate after amendment to Investments law In Development area A		7.50%
Tax rate before amendment to Investments law In Development area A		9.00%
Tax rate In other areas		16.00%
Tax rate for preferred technological enterprises (PTE) in other areas		12.00%
Foreign Subsidiaries [Member]
Income Taxes [Line Items]
Carryforward tax losses		$ 83,916
Israel [Member] \| Subsidiaries [Member]
Income Taxes [Line Items]
Corporate tax rate (as a percent)		23.00%
Tax exempt profits					$ 289,900

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

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Deferred tax assets, net:

Research and Development carryforward expenses

$ 2,479

$ 1,843

$ 4,994

Carryforward tax losses

^[1]

19,635

20,468

6,318

Stock based compensation expenses

12,140

6,400

4,898

Deferred revenue

8,078

5,609

3,621

Inventory Impairment

1,326

1,977

2,442

Allowance and other reserves

10,911

4,372

7,305

Total Gross deferred tax assets, net

54,569

40,669

29,578

Less, Valuation Allowance

(14,648)

(9,634)

(2,317)

Total deferred tax assets, net

39,921

31,035

27,261

Deferred tax liabilities, net:

Intercompany transactions

(6,099)

Convertible Note

(11,830)

Purchase price allocation

(6,406)

(16,122)

(15,424)

Total deferred tax liabilities, net

(12,505)

(27,952)

(15,424)

Recorded as:

Deferred tax assets, net

27,572

11,676

16,298

Deferred tax liabilities, net

(156)

(8,593)

(4,461)

Net deferred tax assets

$ 27,416

$ 3,083

$ 11,837

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

INCOME TAXES (Schedule of Uncertain Tax Positions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Balance, at the beginning of the period	$ 10,564	$ 9,532	$ 8,499
Increases related to current year tax positions	635	757	651
Increase for tax positions related to prior years	0	275	382
Decreases related to prior year tax positions	(9,007)	0	0
Balance, at the end of the period	$ 2,192	$ 10,564	$ 9,532

INCOME TAXES (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 13,659	$ 33,909	$ 6,029
Foreign	173,565	129,757	172,574
Income before income taxes	$ 187,224	$ 163,666	$ 178,603

- Definition

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

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+ Details

INCOME TAXES (Schedule of Income taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current taxes:
U.S. Federal & State	$ (7,872)	$ 1,842	$ 10,093
Foreign	37,564	24,936	29,590
Total current taxes	29,692	26,778	39,683
Deferred taxes:
U.S. Federal & State	(3,682)	2,794	(3,414)
Foreign	(7,956)	(6,228)	(2,623)
Total deferred taxes	(11,638)	(3,434)	(6,037)
Income taxes, net	$ 18,054	$ 23,344	$ 33,646

- Definition

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

+ References + Details

INCOME TAXES (Schedule of reconciliation between the theoretical tax expense and the actual tax expense (benefit)) (Details)	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory tax rate	35.00%	21.00%	21.00%	21.00%
Effect of: Income tax at rate other than the U.S. statutory tax rate		(7.40%)	(6.90%)	(5.00%)
Losses and timing differences for which valuation allowance was provided		0.00%	4.40%	1.30%
Prior year tax Income/(Expenses)		(4.40%)	(0.40%)	0.10%
Tax Cuts and Jobs Act of 2017		0.10%	0.00%	(0.70%)
Disallowable and allowable deductions		2.00%	(2.60%)	2.30%
Other individually immaterial income tax items, net		(1.70%)	(1.30%)	(0.20%)
Effective tax rate		9.60%	14.20%	18.80%

FINANCIAL (EXPENSES) INCOME, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Nonoperating Income (Expense) [Abstract]
Exchange rate (loss) gain, net	$ (22,493)	$ 33,065	$ (10,342)
Marketable securities	2,973	3,750	4,712
Convertible note	(2,903)	(3,185)	0
Hedging	9,417	(4,013)	0
Interest expenses	(6,376)	(5,330)	(4,805)
Bank charges	(1,991)	(2,048)	(1,021)
Other financial income (expenses), net	1,458	(1,134)	113
Financial expenses (income), net	$ (19,915)	$ 21,105	$ (11,343)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments and Operating Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 1,963,865	$ 1,459,271	$ 1,425,660
Cost of Revenue	1,334,547	997,912	946,322
Gross profit	629,318	461,359	479,338
Research and Development Expense	219,633	163,123	121,351
Selling and Marketing Expense	119,000	95,985	87,984
General and Administrative Expense	82,196	63,119	49,361
Segments profit (loss)	169,170	140,322	144,957
Solar segment profit	368,746	255,728	293,944
All other segment loss	(47,387)	(36,844)	(17,174)
Segments operating profit	321,359	218,884	276,770
Amounts not allocated to segments:
Stock based compensation expenses	(102,593)	(67,309)	(60,353)
Amortization related to business combinations	(10,812)	(9,336)	(9,470)
Sale of SolarEdge Automation Machines' subsiiary	0	0	(5,269)
Legal settlement (see Note 11)	763	4,900	(4,900)
Other unallocated expenses	(1,578)	(4,450)	(6,832)
Adjustments:
Intersegment profit	(0)	(128)	0
Consolidated operating income	207,139	142,561	189,946
Solar [Member]
Segment Reporting Information [Line Items]
Revenues	1,787,280	1,357,261	1,336,618
Cost of Revenue	1,136,896	882,420	852,330
Gross profit	650,384	474,841	484,288
Research and Development Expense	143,173	110,567	91,868
Selling and Marketing Expense	85,309	66,823	67,275
General and Administrative Expense	53,156	41,723	31,201
Segments profit (loss)	368,746	255,728	293,944
All Other [Member]
Segment Reporting Information [Line Items]
Revenues	176,167	102,804	89,042
Cost of Revenue	169,582	95,280	75,702
Gross profit	6,585	7,524	13,340
Research and Development Expense	30,506	25,417	12,520
Selling and Marketing Expense	9,930	8,562	8,433
General and Administrative Expense	13,536	10,389	9,561
Segments profit (loss)	$ (47,387)	$ (36,844)	$ (17,174)

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Reportable Segments Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 1,963,865	$ 1,459,271	$ 1,425,660
Solar Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	1,787,280	1,357,261	1,336,618
All Other Segment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	176,167	102,804	89,042
Revenues From Financing Componen [Member]
Segment Reporting Information [Line Items]
Revenues	418	0	0
Adjustment of Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	$ (0)	$ (794)	$ 0

- Definition

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

+ References

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-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 23: 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(1))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

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

12 Months Ended

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

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

Number of reportable segments

Total revenues

$ 1,963,865

$ 1,459,271

$ 1,425,660

United States [Member]

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

Total revenues

786,019

613,090

678,565

Europe [Member]

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

Total revenues

^[1]

670,394

426,531

345,685

Netherlands [Member]

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

Total revenues

222,103

199,498

199,526

Rest of the world [Member]

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

Total revenues

$ 285,349

$ 220,152

$ 201,884

[1]	Except for Netherlands

- Definition

+ References

+ Details

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Summary of Revenues by Product Family) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from External Customer [Line Items]
Total revenues	$ 1,963,865	$ 1,459,271	$ 1,425,660
Inverters [Member]
Revenue from External Customer [Line Items]
Total revenues	828,101	641,799	626,445
Optimizers [Member]
Revenue from External Customer [Line Items]
Total revenues	828,542	625,465	634,007
Other Products [Member]
Revenue from External Customer [Line Items]
Total revenues	$ 307,222	$ 192,007	$ 165,208

- Definition

+ References

+ Details

SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 457,517	$ 345,008
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	271,700	216,095
korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	118,209	62,570
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	30,412	32,655
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	21,547	24,233
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 15,649	$ 9,455