v3.22.4
SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT, GEOGRAPHIC, MAJOR CUSTOMER AND PRODUCT INFORMATION

NOTE 25: SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

a.            Segment Information:

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

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

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

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

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

 

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

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

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

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

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

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

 

   Year ended December 31,  

 

  

2022

    

2021

    

2020

  

Solar segment revenues

   $ 2,921,175     $ 1,787,280     $ 1,357,261  

All other segment revenues

    188,490       176,167       102,804  

Revenues from financing component

     614       418       -  

Inter-segment revenues

     -       -       (794 )

Consolidated revenues

   $ 3,110,279     $ 1,963,865     $ 1,459,271  

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

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

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

 

   Year ended December 31,  

 

    

2022

      

2021

      

2020

  

United States

   $ 1,133,798     $ 786,019     $ 613,090  

Europe(*)

     528,197       297,684       233,583  

Germany

    

449,160

      

191,066

      

118,350

  

Netherlands

     382,226       222,103       199,498  

Italy

    

330,565

      

181,644

      

74,598

  

Rest of the world

     286,333       285,349       220,152  

Total revenues

   $ 3,110,279     $ 1,963,865     $ 1,459,271  

(*) Except for Germany, Netherlands and Italy

c.            Revenues by type:

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

d.            Long-lived assets by geographic location:

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

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