COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 08, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35480 | ||
Entity Incorporation, State | DE | ||
Entity Registrant Name | Enphase Energy, Inc. | ||
Entity Tax Identification Number | 20-4645388 | ||
Entity Address, Address Line One | 47281 Bayside Parkway | ||
Entity Address, City or Town | Fremont | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94538 | ||
City Area Code | 877 | ||
Local Phone Number | 774-7000 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | ||
Trading Symbol | ENPH | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4 | ||
Entity Common Stock, Shares Outstanding | 129,021,311 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2020 are incorporated by reference into Part III of this Annual Report on Form 10-K | ||
Entity Central Index Key | 0001463101 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 679,379,000 | $ 251,409,000 |
Restricted cash | 0 | 44,700,000 |
Accounts receivable, net of allowances of $462 and $564 at December 31, 2020 and December 31, 2019, respectively | 182,165,000 | 145,413,000 |
Inventory | 41,764,000 | 32,056,000 |
Prepaid expenses and other assets | 29,756,000 | 26,079,000 |
Total current assets | 933,064,000 | 499,657,000 |
Property and equipment, net | 42,985,000 | 28,936,000 |
Operating lease, right of use asset, net | 17,683,000 | 10,117,000 |
Intangible assets, net | 28,808,000 | 30,579,000 |
Goodwill | 24,783,000 | 24,783,000 |
Other assets | 59,875,000 | 44,620,000 |
Deferred tax assets, net | 92,904,000 | 74,531,000 |
Total assets | 1,200,102,000 | 713,223,000 |
Current liabilities: | ||
Accounts payable | 72,609,000 | 57,474,000 |
Accrued liabilities | 76,542,000 | 47,092,000 |
Deferred revenues, current | 47,665,000 | 81,783,000 |
Warranty obligations, current (includes $8,267 and $6,794 measured at fair value at December 31, 2020 and December 31, 2019, respectively) | 11,260,000 | 10,078,000 |
Debt, current | 325,967,000 | 2,884,000 |
Total current liabilities | 534,043,000 | 199,311,000 |
Long-term liabilities: | ||
Deferred revenues, noncurrent | 125,473,000 | 100,204,000 |
Warranty obligations, noncurrent (includes $20,469 and $13,012 measured at fair value at December 31, 2020 and December 31, 2019, respectively) | 34,653,000 | 27,020,000 |
Other liabilities | 17,042,000 | 11,817,000 |
Debt, noncurrent | 4,898,000 | 102,659,000 |
Total liabilities | 716,109,000 | 441,011,000 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock, $0.00001 par value, 200,000 shares and 150,000 shares authorized; and 128,962 shares and 123,109 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 1,000 | 1,000 |
Additional paid-in capital | 534,744,000 | 458,315,000 |
Accumulated deficit | (51,186,000) | (185,181,000) |
Accumulated other comprehensive income (loss) | 434,000 | (923,000) |
Total stockholders’ equity | 483,993,000 | 272,212,000 |
Total liabilities and stockholders’ equity | $ 1,200,102,000 | $ 713,223,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 462 | $ 564 |
Product warranty, measured at fair value, current | 8,267 | 6,794 |
Product warranty, measured at fair value, noncurrent | $ 20,469 | $ 13,012 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 200,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 128,962,000 | 123,109,000 |
Common stock, shares outstanding (in shares) | 128,962,000 | 123,109,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net revenues | $ 774,425 | $ 624,333 | $ 316,159 |
Cost of revenues | 428,444 | 403,088 | 221,714 |
Gross profit | 345,981 | 221,245 | 94,445 |
Operating expenses: | |||
Research and development | 55,921 | 40,381 | 32,587 |
Sales and marketing | 52,927 | 36,728 | 27,047 |
General and administrative | 50,694 | 38,808 | 29,086 |
Restructuring charges | 0 | 2,599 | 4,129 |
Total operating expenses | 159,542 | 118,516 | 92,849 |
Income from operations | 186,439 | 102,729 | 1,596 |
Other expense, net | |||
Interest income | 2,156 | 2,513 | 1,058 |
Interest expense | (21,001) | (9,691) | (10,693) |
Other expense, net | (3,836) | (5,437) | (2,190) |
Change in fair value of derivatives | (44,348) | 0 | 0 |
Total other expense, net | (67,029) | (12,615) | (11,825) |
Income (loss) before income taxes | 119,410 | 90,114 | (10,229) |
Income tax benefit (provision) | 14,585 | 71,034 | (1,398) |
Net income (loss) | $ 133,995 | $ 161,148 | $ (11,627) |
Net income (loss) per share: | |||
Basic (in USD per share) | $ 1.07 | $ 1.38 | $ (0.12) |
Diluted (in USD per share) | $ 0.95 | $ 1.23 | $ (0.12) |
Shares used in per share calculation: | |||
Basic (in shares) | 125,561 | 116,713 | 99,619 |
Diluted (in shares) | 141,918 | 131,644 | 99,619 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 133,995 | $ 161,148 | $ (11,627) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 1,357 | (1,665) | 1,398 |
Comprehensive income (loss) | $ 135,352 | $ 159,483 | $ (10,229) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Income (Deficit) | Accumulated Income (Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period (in shares) at Dec. 31, 2017 | 85,914 | |||||||
Balance, beginning of period at Dec. 31, 2017 | $ (9,126) | $ (38,948) | $ 1 | $ 287,256 | $ (295,727) | $ (38,948) | $ (656) | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201807Member | |||||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan (in shares) | 3,185 | |||||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan | $ 2,806 | 2,806 | ||||||
Issuance of common stock, net of offering costs (shares) | 9,524 | |||||||
Issuance of common stock, net of offering costs | 19,766 | 19,766 | ||||||
Issuance of common stock related to acquisition (shares) | 7,500 | |||||||
Issuance of common stock related to acquisition | 32,319 | 32,319 | ||||||
Exercise of warrants (shares) | 912 | |||||||
Stock-based compensation | 11,188 | 11,188 | ||||||
Net income (loss) | (11,627) | (11,627) | ||||||
Foreign currency translation adjustments | 1,398 | 1,398 | ||||||
Balance, ending of period (in shares) at Dec. 31, 2018 | 107,035 | |||||||
Balance, end of period at Dec. 31, 2018 | 7,776 | $ 0 | $ 1 | 353,335 | $ 27 | (346,302) | $ (27) | 742 |
Issuance of common stock from exercise of equity awards and employee stock purchase plan (in shares) | 5,273 | |||||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan | 4,985 | 4,985 | ||||||
Payment of withholding taxes related to net share settlement of equity awards | (8,198) | (8,198) | ||||||
Conversion of convertible notes due 2023, net (in shares) | 10,801 | |||||||
Conversion of convertible notes due 2023, net | 58,857 | 58,857 | ||||||
Equity component of convertible notes | 35,387 | 35,387 | ||||||
Cost of convertible notes hedge related to the convertible notes | (36,313) | (36,313) | ||||||
Sale of warrants related to the convertible notes | 29,818 | 29,818 | ||||||
Stock-based compensation | 20,417 | 20,417 | ||||||
Net income (loss) | 161,148 | 161,148 | ||||||
Foreign currency translation adjustments | $ (1,665) | (1,665) | ||||||
Balance, ending of period (in shares) at Dec. 31, 2019 | 123,109 | 123,109 | ||||||
Balance, end of period at Dec. 31, 2019 | $ 272,212 | $ 1 | 458,315 | (185,181) | (923) | |||
Issuance of common stock from exercise of equity awards and employee stock purchase plan (in shares) | 4,002 | |||||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan | 8,395 | 8,395 | ||||||
Payment of withholding taxes related to net share settlement of equity awards | (68,330) | (68,330) | ||||||
Equity component of convertible notes due 2025, net | 116,502 | 116,502 | ||||||
Conversion of convertible notes due 2023, net (in shares) | 1,851 | |||||||
Conversion of convertible notes due 2023, net | 301,015 | 301,015 | ||||||
Equity component of convertible notes | (306,220) | (306,220) | ||||||
Cost of convertible notes hedge related to the convertible notes | (117,108) | (117,108) | ||||||
Sale of warrants related to the convertible notes | 96,351 | 96,351 | ||||||
Exercise of convertible notes due 2024 (in shares) | (1,851) | |||||||
Exercise of warrants (shares) | 1,851 | |||||||
Change in fair value of common stock related to acquisition | 3,321 | 3,321 | ||||||
Stock-based compensation | 42,503 | 42,503 | ||||||
Net income (loss) | 133,995 | 133,995 | ||||||
Foreign currency translation adjustments | $ 1,357 | 1,357 | ||||||
Balance, ending of period (in shares) at Dec. 31, 2020 | 128,962 | 128,962 | ||||||
Balance, end of period at Dec. 31, 2020 | $ 483,993 | $ 1 | $ 534,744 | $ (51,186) | $ 434 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 133,995,000 | $ 161,148,000 | $ (11,627,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 18,103,000 | 14,119,000 | 9,667,000 |
Provision for doubtful accounts | 425,000 | 217,000 | 711,000 |
Asset impairment | 0 | 1,124,000 | 1,601,000 |
Loss on extinguishment of debt | 0 | 2,152,000 | 0 |
Deemed repayment of convertible notes due 2024 attributable to accreted debt discount | (3,132,000) | 0 | 0 |
Non-cash interest expense | 18,825,000 | 6,081,000 | 2,701,000 |
Fees paid for repurchase and exchange of convertible notes due 2023 | 0 | 6,000,000 | 0 |
Stock-based compensation | 42,503,000 | 20,176,000 | 11,432,000 |
Change in fair value of derivatives | 44,348,000 | 0 | 0 |
Deferred income taxes | (17,117,000) | (73,375,000) | 123,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (34,321,000) | (68,745,000) | (13,515,000) |
Inventory | (9,708,000) | (15,789,000) | 9,732,000 |
Prepaid expenses and other assets | (14,636,000) | (14,293,000) | (3,130,000) |
Intangible assets | 0 | 0 | (10,000,000) |
Accounts payable, accrued and other liabilities | 35,695,000 | 22,200,000 | 23,082,000 |
Warranty obligations | 8,815,000 | 5,804,000 | 1,478,000 |
Deferred revenues | (10,498,000) | 72,248,000 | (6,123,000) |
Net cash provided by operating activities | 216,334,000 | 139,067,000 | 16,132,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (20,558,000) | (14,788,000) | (4,151,000) |
Purchase of investment in private company | (5,010,000) | 0 | 0 |
Acquisition | 0 | 0 | (15,000,000) |
Net cash used in investing activities | (25,568,000) | (14,788,000) | (19,151,000) |
Cash flows from financing activities: | |||
Issuance of convertible notes, net of issuance costs | 312,420,000 | 127,413,000 | 0 |
Purchase of convertible note hedges | (89,056,000) | (36,313,000) | 0 |
Sale of warrants | 71,552,000 | 29,818,000 | 0 |
Fees paid for repurchase and exchange of convertible notes due 2023 | 0 | (6,000,000) | 0 |
Principal payments and financing fees on debt | (2,575,000) | (45,855,000) | (9,976,000) |
Proceeds from issuance of common stock, net of issuance costs | 0 | 0 | 19,766,000 |
Proceeds from debt, net of issuance costs | 0 | 0 | 68,024,000 |
Partial repurchase of convertible notes due 2024 | (40,728,000) | 0 | 0 |
Proceeds from exercise of equity awards and employee stock purchase plan | 8,395,000 | 4,985,000 | 2,800,000 |
Payment of withholding taxes related to net share settlement of equity awards | (68,330,000) | (8,198,000) | 0 |
Net cash provided by financing activities | 191,678,000 | 65,850,000 | 80,614,000 |
Effect of exchange rate changes on cash and cash equivalents | 826,000 | (257,000) | (502,000) |
Net increase in cash, cash equivalents and restricted cash | 383,270,000 | 189,872,000 | 77,093,000 |
Cash, cash equivalents and restricted cash—Beginning of period | 296,109,000 | 106,237,000 | 29,144,000 |
Cash. cash equivalents and restricted cash—End of period | 679,379,000 | 296,109,000 | 106,237,000 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Total cash, cash equivalents, and restricted cash | 679,379,000 | 106,237,000 | 29,144,000 |
Cash paid for interest | 1,875,000 | 2,689,000 | 6,343,000 |
Cash paid for income taxes | 3,452,000 | 1,755,000 | 775,000 |
Acquisition funded by issuance of common stock | 0 | 0 | 19,219,000 |
Purchases of fixed assets included in accounts payable | 3,630,000 | 672,000 | 895,000 |
Accrued interest payable unpaid upon exchange of convertible notes due 2023 | 0 | 833,000 | 0 |
Convertible Senior Notes Due 2024 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on extinguishment of debt | $ 3,037,000 | $ 0 | $ 0 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Enphase Energy, Inc. (the “Company”) is a global energy technology company. The Company delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one single platform. The Company revolutionized the solar industry with its microinverter technology and produces a fully integrated solar-plus-storage solution. Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S.”), or GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, allowance for doubtful accounts, stock-based compensation, inventory valuation, accrued warranty obligations, fair value of debt derivatives and convertible notes, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, incremental borrowing rate for right-of-use assets and lease liability, probable loss recovery of tariff refunds, legal contingencies, and tax valuation allowance. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from management’s estimates using different assumptions or under different conditions. The worldwide spread of the COVID-19 virus has resulted in a global slowdown of economic activity which decreased demand for a broad variety of goods and services, including from our customers, while also disrupting sales channels and marketing activities for an unknown period of time and may continue to create significant uncertainty in future operational and financial performance. The Company expects this to have negative impact on its sales and its results of operations. In preparing the Company’s consolidated financial statements in accordance with GAAP, the Company is required to make estimates, assumptions and judgments that affect the amounts reported in its financial statements and the accompanying disclosures. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The Company generates revenue from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway, the cloud-based Enlighten monitoring service, and storage solutions to distributors, large installers, original equipment manufacturers (“OEMs”) and strategic partners. On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) No. 606, “Revenue Recognition” (“ASC 606” or “Topic 606”) and applied the modified retrospective method to all contracts that were not completed as of January 1, 2018. The most significant impacts upon adoption of Topic 606 were how the Company accounts for revenue related to its Envoy™ communications device and related Enphase Enlighten Software™, or Enlighten, service and the timing of when certain sales incentives are recognized. The full consideration for these products represents a single performance obligation and is deferred and recognized over the estimated service period. Revenues are recognized when control of the promised goods or services are transferred to the Company’s customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. The Company generates all of its revenues from contracts with its customers. A description of principal activities from which the Company generates revenues follows. • Products Delivered at a Point in Time. The Company sells its products to customers in accordance with the terms of the related customer contracts. The Company generates revenues from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway and Enlighten service, communications accessories and storage solutions to distributors, large installers, OEMs and strategic partners. Microinverter units, microinverter accessories, and storage solutions are delivered to customers at a point in time, and the Company recognizes revenue for these products when the Company transfers control of the product to the customer, which is generally upon shipment. • Products Delivered Over Time. The sale of an Envoy communications gateway includes the Company’s Enlighten cloud-based monitoring service. The full consideration for these products represents a single performance obligation and is deferred at the sale date and recognized over the estimated service period of 6 years. The Company also sells certain communication accessories that contain a service performance obligation to be delivered over time. The revenue from these products is recognized over the related service period, which is typically 5 or 12 years. When the Company sells a product with more than one performance obligation, such as the IQ Combiner which includes both hardware and Envoy, the total consideration is allocated to these performance obligations based on their relative standalone selling prices. The Company previously sold its Envoy communications device to certain customers under a long-term financing arrangement. Under this financing arrangement, the Company nets the unbilled receivables against deferred revenue. The Company records certain contra revenue promotions as variable consideration and recognizes these promotions at the time the related revenue is recorded. The Company records upfront contract acquisition costs, such as sales commissions, to be capitalized and amortized over the estimated life of the asset. For contracts that have a duration of less than one year, the Company follows the Topic 606 practical expedient and expenses these costs when incurred. Commissions related to the Company’s sale of monitoring hardware and service are capitalized and amortized over the period of the associated revenue, which is 6 years. See Note 3. “Revenue Recognition,” for additional information related to revenue recognition. Cost of Revenues The Company includes the following in cost of revenues: product costs, warranty, manufacturing personnel and logistics costs, freight costs, inventory write-downs, hosting services costs related to the Company’s Enlighten service offering, and depreciation and amortization of manufacturing test equipment. A description of principal activities from which the Company recognizes cost of revenue is as follows. • Products Delivered at a Point in Time. Cost of revenue from these products is recognized when the Company transfers control of the product to the customer, which is generally upon shipment. • Products Delivered Over Time. Cost of revenue from these products is recognized over the related service period. Cash and Cash Equivalents The Company considers all highly liquid investments, such as certificates of deposit and money market instruments with maturities of three months or less at the time of acquisition to be cash equivalents. For all periods presented, its cash balances consist of amounts held in non-interest-bearing and interest-bearing deposits and money market accounts. Restricted Cash Restricted cash represents cash held as certificate of deposit collateralized under a letter of credit issued to a customer. The letter of credit was required as a performance security in a face amount equal to the aggregate purchase price of the executed sales agreement. The letter of credit was issued per the terms of the executed sales agreement with a customer for safe harbor prepayment and the Company had collateralized a certificate of deposit under this letter of credit in an amount of $44.7 million, which was reflected as restricted cash on the Company’s consolidated balance sheet as of December 31, 2019. As of December 31, 2020, the Company does not have restricted cash balance. Fair Value of Financial Instruments The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of those instruments. Equity investments with readily determinable fair value are carried at fair value based on quoted market prices or estimated based on market conditions and risks existing at each balance sheet date. Equity investments without readily determinable fair value are measured at cost less impairment, and are adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Convertible Note Derivatives In March 2020, the Company issued $320 million aggregate principal amount of 0.25% convertible notes due 2025. Concurrently with the issuance of Notes due 2025, the Company entered into privately-negotiated convertible note hedge and warrant transactions which in combination are intended to reduce the potential dilution from the conversion of the Notes due 2025. The Company could not elect to issue the shares of common stock upon settlement of Notes due 2025 or convertible note hedge or warrant transactions due to insufficient authorized share capital. As a result, the embedded conversion option and warrants were accounted for as a derivative liabilities and convertible notes hedge as derivative asset and a gain (or loss) was reported in other expense, net in the consolidated statement of operations to the extent the valuation changed from the date of issuance of Notes due 2025. On May 20, 2020, at the Company’s annual meeting of stockholders, the stockholders approved an amendment to its certificate of incorporation to increase the number of authorized shares of the Company’s common stock. As a result, the Company is now be able to settle the Notes due 2025, convertible notes hedge and warrants through payment or delivery, as the case may be, of cash, shares of its common stock or a combination thereof, at the Company’s election. Accordingly, on May 20, 2020, the embedded derivative liability, convertible notes hedge and warrants liability were remeasured at a fair value and were then reclassified to additional paid-in-capital in the condensed consolidated balance sheet in the second quarter of 2020 and are no longer remeasured as long as they continue to meet the conditions for equity classification. As of December 31, 2020, the Company does not have any convertible note derivatives. See Note 11. “Debt” for additional information related to these transactions. Accounts Receivables and Contract Assets The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include deferred product costs and commissions associated with the deferred revenue and will be amortized along with the associated revenue. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated credit losses from doubtful accounts based on days past due, customer specific experience, collection history, the financial health of customers including from the impacts of the COVID-19 pandemic, among other factors. Accounts receivable are recorded net of allowance for doubtful accounts. The following table sets forth activities in the allowance for doubtful accounts for the periods indicated. December 31, 2020 2019 2018 (In thousands) Balance, at beginning of year $ 564 $ 2,138 $ 2,378 Net charges to expenses 425 217 711 Write-offs, net of recoveries (527) (1,791) (951) Balance, at end of year $ 462 $ 564 $ 2,138 Inventory Inventory is valued at the lower of cost or market. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value ( i.e. , estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. The Company determines cost on a first-in first-out basis. Management assesses the valuation on a quarterly basis and writes down the value for any excess and obsolete inventory based upon expected demand, anticipated sales price, effect of new product introductions, product obsolescence, customer concentrations, product merchantability and other factors. Inventory write-downs are equal to the difference between the cost of inventories and market. Long-Lived Assets Property and equipment are stated at cost less accumulated depreciation. Cost includes amounts paid to acquire or construct the asset as well as any expenditure that substantially adds to the value of or significantly extends the useful life of an existing asset. Repair and maintenance costs are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. Leasehold improvements are amortized over the shorter of the lease term or expected useful life of the improvements. Internal-use software, whether purchased or developed, is capitalized at cost and amortized on a straight-line basis over its estimated useful life. Costs associated with internally developed software are expensed until the point at which the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they provide additional functionality. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of internal-use software requires judgment in determining when a project has reached the development stage and the period over which the Company expects to benefit from the use of that software. The Company capitalizes implementation costs related to cloud computing (i.e. hosting) arrangements that are accounted for as a service contract that meets the accounting requirement for capitalization as such implementation costs were incurred to develop or utilize internal-use software hosted by a third party vendor. The capitalized implementation costs are recorded as part of “Other assets” on the consolidated balance sheet and is amortized over the length of the service contract. Property, plant and equipment, including internal-use software, and capitalized implementation costs related to cloud computing arrangements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. The Company recorded asset impairment charges for specific assets that were no longer in use of approximately zero, $1.1 million and $1.6 million for the years ended 2020, 2019 and 2018, respectively. There were no events or changes in circumstances that may indicate the carrying amount of remaining assets is not recoverable. Business Combinations Assets acquired and liabilities assumed as part of a business acquisition are generally recorded at their fair value at the date of acquisition. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Accounting for business acquisitions requires the Company to make judgments as to whether a purchase transaction is a multiple element contract, meaning that it includes other transaction components. This judgment and determination affect the amount of consideration paid that is allocable to assets and liabilities acquired in the business purchase transaction. Goodwill Goodwill results from the purchase consideration paid in excess of the fair value of the net assets recorded in connection with a business acquisition. Goodwill is not amortized but is assessed for potential impairment at least annually during the fourth quarter of each fiscal year or between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Goodwill is tested at the reporting unit level, which the Company has determined to be the same as the entity as a whole (entity level). The Company first performs qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. If, after assessing the qualitative factors, we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying value, an impairment analysis will be performed. Qualitative factors include industry and market consideration, overall financial performance, share price trends and market capitalization and Company-specific events. The Company determined, after performing a qualitative review of its reporting unit, that it is more likely than not that the fair value of our reporting unit exceeds its carrying value. Accordingly, there was no indication of impairment in the years ended 2020, 2019 and 2018 and no quantitative goodwill impairment test was performed. Intangible Assets Intangible assets include patents and other purchased intangible assets. Intangible assets with finite lives are amortized on a straight-line basis, with estimated useful lives ranging from 3 to 9 years. Indefinite-lived intangible assets are tested for impairment annually and are also tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Intangible assets with finite lives are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There was no impairment of intangible assets in any of the years presented. Contract Liabilities Contract liabilities are recorded as deferred revenue on the accompanying consolidated balance sheets and include payments received in advance of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Warranty Obligations Microinverters and Other Products Sold Through December 31, 2013 The Company’s warranty accrual provides for the replacement of microinverter units or other products that fail during the product’s warranty term (typically 15 years for first and second generation microinverters and up to 25 years for subsequent generation microinverters). On a quarterly basis, the Company employs a consistent, systematic and rational methodology to assess the adequacy of its warranty liability. This assessment includes updating all key estimates and assumptions for each generation of product, based on historical results, trends and the most current data available as of the filing date. The key estimates and assumptions used in the warranty liability are thoroughly reviewed by management on a quarterly basis. The key estimates used by the Company to estimate its warranty liability are: (1) the number of units expected to fail over time ( i.e., failure rate); (2) the number of failed units expected to result in warranty claims over time ( i.e., claim rate); and (3) the per unit cost of replacement units, including outbound shipping and limited labor costs, expected to be incurred to replace failed units over time ( i.e., replacement cost). Estimated Failure Rates — The Company’s Quality and Reliability department has primary responsibility to determine the estimated failure rates for each generation of microinverter. To establish initial failure rate estimates for each generation of microinverter, the Company’s quality engineers use a combination of industry standard Mean Time Between Failure (“MTBF”) estimates for individual components contained in its microinverters, third party data collected on similar equipment deployed in outdoor environments similar to those in which the Company’s microinverters are installed, and rigorous long term reliability and accelerated life cycle testing which simulates the service life of the microinverter in a short period of time. As units are deployed into operating environments, the Company continues to monitor product performance through its Enlighten monitoring platform. It typically takes three three Estimated Claim Rates — Warranty claim rate estimates are based upon observed historical trends and assumptions with respect to expected customer behavior over the warranty period. As the vast majority of the Company’s microinverters have been sold to end users for residential applications, the Company believes that warranty claim rates will be affected by changes over time in residential home ownership because the Company expects that subsequent homeowners are less likely to file claims than the homeowners who originally purchase the microinverters. Estimated Replacement Costs — Three factors are considered in the Company’s analysis of estimated replacement cost: (1) the estimated cost of replacement microinverters; (2) the estimated cost to ship replacement microinverters to end users; and (3) the estimated labor reimbursement expected to be paid to third party installers performing replacement services for the end user. Because the Company’s warranty provides for the replacement of defective microinverters over long periods of time (between 15 and 25 years, depending on the generation of product purchased), the estimated per unit cost of current and future product generations is considered in the estimated replacement cost. Estimated costs to ship replacement units are based on observable, market-based shipping costs paid by the Company to third party freight carriers. The Company has a separate program that allows third-party installers to claim fixed-dollar reimbursements for labor costs they incur to replace failed microinverter units for a limited time from the date of original installation. Included in the Company’s estimated replacement cost is an analysis of the number of fixed-dollar labor reimbursements expected to be claimed by third party installers over the limited offering period. In addition to the key estimates noted above, the Company also compares actual warranty results to expected results and evaluates any significant differences. Management may make additional adjustments to the warranty provision based on performance trends or other qualitative factors. If actual failure rates, claim rates, or replacement costs differ from the Company’s estimates in future periods, changes to these estimates may be required, resulting in increases or decreases in the Company’s warranty obligations. Such increases or decreases could be material. Fair Value Option for Microinverters and Other Products Sold Since January 1, 2014 The Company’s warranty obligations related to microinverters sold since January 1, 2014 provide the Company the right, but not the requirement, to assign its warranty obligations to a third-party. Under ASC 825, “Financial Instruments” (also referred to as “fair value option”), an entity may choose to elect the fair value option for such warranties at the time it first recognizes the eligible item. The Company made an irrevocable election to account for all eligible warranty obligations associated with microinverters sold since January 1, 2014 at fair value. This election was made to reflect the underlying economics of the time value of money for an obligation that will be settled over an extended period of up to 25 years. The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of failure rates, claim rates and replacement costs, the Company used certain inputs that are unobservable and significant to the overall fair value measurement. Such additional assumptions included compensation comprised of a profit element and risk premium required of a market participant to assume the obligation and a discount rate based on the Company’s credit-adjusted risk-free rate. See Note 9. “Fair Value Measurements,” for additional information. Warranty obligations initially recorded at fair value at the time of sale will be subsequently re-measured to fair value at each reporting date. In addition, the fair value of the liability will be accreted over the corresponding term of the warranty of up to 25 years using the interest method. Warranty for Other Products The Company offers a 5‑year warranty for its Envoy communications gateway and a 10‑year warranty on its AC Battery storage solution. The warranties provide the Company with the right, but not the obligation, to assign its warranty obligations to a third-party. As such, warranties for Envoy and AC Battery storage solution products are accounted for under the fair value method of accounting. Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies and loss recoveries, such as legal proceedings and claims arising out of its business as well as tariff refunds. An accrual for a loss contingency or loss recovery is recognized when it is probable and the amount of loss or recovery can be reasonably estimated. Research and Development Costs The Company expenses research and development costs as incurred. Research and development expense consists primarily of product development personnel costs, including salaries and benefits, stock-based compensation, other professional costs and allocated facilities costs. Stock-Based Compensation Share-based payments are required to be recognized in the Company’s consolidated statements of operations based on their fair values and the estimated number of shares expected to vest. The Company measures stock-based compensation expense for all share-based payment awards, including stock options made to employees and directors, based on the estimated fair values on the date of the grant. The fair value of stock options granted is estimated using the Black-Scholes option valuation model. The fair value of restricted stock units granted is determined based on the price of the Company’s common stock on the date of grant. The fair value of non-market‑based performance stock units granted is determined based on the date of grant or when achievement of performance is probable. The fair value of market‑based performance stock units granted is determined using a Monte‑Carlo model based on the date of grant or when achievement of performance is probable. Stock-based compensation for stock options and restricted stock units (“RSUs”) is recognized on a straight-line basis over the requisite service period. Stock-based compensation for performance stock units (“PSUs”) without market conditions is recognized when the performance condition is probable of being achieved, and then on a graded basis over the requisite service period. Stock-based compensation for PSUs with market conditions is recognized on a straight-line basis over the requisite service period. Additionally, the Company estimates its forfeiture rate annually based on historical experience and revise the estimates of forfeiture in subsequent periods if actual forfeitures differ from those estimates. Leases The Company determines if an arrangement is or contains a lease at inception. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. The Company combines the lease and non-lease components in determining the operating lease assets and liabilities. Foreign Currency Translation The Company and most of its subsidiaries use their respective local currency as their functional currency. Accordingly, foreign currency assets and liabilities are translated using exchange rates in effect at the end of the period. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in accumulated other comprehensive income (loss) in stockholders' equity. Foreign subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities using exchange rates in effect at the end of the period. In addition, transactions that are denominated in non-functional currency are remeasured using exchange rates in effect at the end of the period. Exchange gains and losses arising from the remeasurement of monetary assets and liabilities are included in other income (expense), net in the consolidated statements of operations. Non-monetary assets and liabilities are carried at their historical values. Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders’ equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments for all periods presented. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company assesses the realizability of the deferred tax assets to determine release of valuation allowance as necessary. In the event the Company determines that it is more likely than not that we would be able to realize deferred tax assets in the future in excess of our net recorded amount, an adjustment to the valuation allowance for the deferred tax asset would increase income in the period such determination was made. Likewise, should it be determined that additional amounts of the net deferred tax asset will not be realized in the future, an adjustment to increase the deferred tax asset valuation allowance will be charged to income in the period such determination is made. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” to reduce diversity in practice in accounting for the costs of implementing cloud computing arrangements that are service contracts. ASU 2018-15 allows entities to apply the guidance in the ASC 350-40, “Intangibles–Goodwill and Other–Internal-Use Software,” to determine which implementation costs are eligible to be capitalized as assets in a cloud computing arrangement that is considered a service contract. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively and are required to make certain disclosures in the interim and annual period of adoption. The Company adopted the new standard effective January 1, 2020 on a prospective basis and the adoption of this guidance did not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with a current expected credit loss (CECL) model which will result in earlier recognition of credit losses. On January 1, 2020, the Company on a prospective basis adopted Topic 326, the measurement of expected credit losses under the CECL model is applicable to financial assets measured at amortized cost, including accounts receivable. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Effective In August 2020, the FASB issued Account Standard Update (“ASU”) 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),” which reduces the number of accounting models in ASC 470-20 that require separate accounting for embedded conversion features. As a result, a convertible debt ins |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregated Revenue The Company has one business activity, which is the design, manufacture and sale of solutions for the solar photovoltaic (“PV”) industry. Disaggregated revenue by primary geographical market and timing of revenue recognition for the Company’s single product line are as follows: Years Ended December 31, 2020 2019 (In thousands) Primary geographical markets: U.S. $ 637,879 $ 523,577 International 136,546 100,756 Total $ 774,425 $ 624,333 Timing of revenue recognition: Products delivered at a point in time $ 728,254 $ 584,556 Products and services delivered over time 46,171 39,777 Total $ 774,425 $ 624,333 Contract Balances Receivables, and contract assets and contract liabilities from contracts with customers are as follows: December 31, December 31, (In thousands) Receivables $ 182,165 $ 145,413 Short-term contract assets (Prepaid expenses and other assets) 17,879 15,055 Long-term contract assets (Other assets) 51,986 42,087 Short-term contract liabilities (Deferred revenues) 47,665 81,783 Long-term contract liabilities (Deferred revenues) 125,473 100,204 The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include deferred product costs and commissions associated with the deferred revenue and will be amortized along with the associated revenue. The Company had no asset impairment charges related to contract assets in the year ended December 31, 2020. Significant changes in the balances of contract assets (prepaid expenses and other assets) during the period are as follows (in thousands): Contract Assets Balance on December 31, 2019 $ 57,142 Amount recognized (17,652) Increase 30,375 Balance as of December 31, 2020 $ 69,865 Contract liabilities are recorded as deferred revenue on the accompanying consolidated balance sheets and include payments received in advance of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Significant changes in the balances of contract liabilities (deferred revenues) during the period are as follows (in thousands): Contract Liabilities Balance on December 31, 2019 $ 181,987 Revenue recognized (87,555) Increase due to billings 78,706 Balance as of December 31, 2020 $ 173,138 Remaining Performance Obligations Estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period are as follows: December 31, (In thousands) Fiscal year: 2021 $ 47,665 2022 38,402 2023 32,569 2024 27,311 2025 20,291 Thereafter 6,900 Total $ 173,138 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consist of the following: December 31, December 31, (In thousands) Raw materials $ 10,140 $ 4,197 Finished goods 31,624 27,859 Total inventory $ 41,764 $ 32,056 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: Estimated Useful December 31, 2020 2019 (Years) (In thousands) Equipment and machinery 3-10 $ 63,411 $ 48,114 Furniture and fixtures 5-10 2,532 2,404 Computer equipment 3-5 2,972 1,698 Capitalized software costs 3-5 17,004 11,656 Leasehold improvements 3-10 9,021 8,713 Construction in process 9,747 8,446 Total 104,687 81,031 Less accumulated depreciation and amortization (61,702) (52,095) Property and equipment, net $ 42,985 $ 28,936 Depreciation expense for property and equipment for the years ended December 31, 2020, 2019 and 2018 was $9.7 million, $7.3 million and $8.3 million, respectively. As of December 31, 2020 and 2019, unamortized capitalized software costs were $4.8 million and $0.8 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company’s goodwill and purchased intangible assets as of December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 Gross Additions Accumulated Amortization Net Gross Accumulated Amortization Net (In thousands) Goodwill $ 24,783 $ — $ — $ 24,783 $ 24,783 $ — $ 24,783 Intangible assets: Other indefinite-lived intangibles 286 — — 286 286 — 286 Intangible assets with finite lives: Developed technology 13,100 — (5,276) 7,824 13,100 (3,093) 10,007 Customer relationships 23,100 3,321 (5,723) 20,698 23,100 (2,814) 20,286 Total purchased intangible assets $ 36,486 $ 3,321 $ (10,999) $ 28,808 $ 36,486 $ (5,907) $ 30,579 Amortization expense related to finite-lived intangible assets are as follows: Years Ended December 31, 2020 2019 (In thousands) Developed technology, and patents and licensed technology $ 2,183 $ 2,184 Customer relationships 2,909 2,543 Total amortization expense $ 5,092 $ 4,727 Amortization of developed technology, patents and licensed technology is recorded to sales and marketing expense. The developed technology acquired from the Company’s acquisition of SunPower Corporation’s (“SunPower”) microinverter business in August 2018 was embedded in the microinverters that SunPower sold to its customers. The Company does not actively use the developed technology acquired from SunPower and holds the developed technology to prevent others from using it. Accordingly, the Company accounts for the developed technology as a defensive intangible asset and amortizes the associated value over a period of six years from the date of acquisition. The master supply agreement (“MSA”) entered into with SunPower in August 2018 provides the Company with the exclusive right to supply SunPower with module level power electronics for a period of five years, with options for renewals. The exclusivity arrangement extends throughout the term of the MSA, which comprises all of the expected cash flows from the customer relationship intangible asset, and was a condition to, and was an essential part of the acquisition of SunPower’s microinverter business by the Company. As the original $23.1 million fair value ascribed to the customer relationship intangible asset represents payments to a customer, the Company amortizes the value of the customer relationship intangible asset as a reduction to revenue using a pattern of economic benefit method over a useful life of nine years. During the fourth quarter of 2020, the Company signed an amendment to the MSA which increased the period of exclusive right to supply by another three months, and the associated incremental non-cash $3.3 million fair value of equity is added to the customer relationship intangible asset will follow the same amortization pattern. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following: December 31, December 31, (In thousands) Salaries, commissions, incentive compensation and benefits $ 6,634 $ 5,524 Customer rebates and sales incentives 36,622 24,198 Freight 10,300 4,908 Operating lease liabilities, current 4,542 3,170 Liability due to supply agreements 5,500 1,729 Other 12,944 7,563 Total accrued liabilities $ 76,542 $ 47,092 |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty activities were as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Warranty obligations, beginning of period $ 37,098 $ 31,294 $ 29,816 Accruals for warranties issued during period 7,021 5,244 3,040 Changes in estimates 9,954 8,591 6,515 Settlements (12,811) (10,881) (8,579) Increase due to accretion expense 3,255 2,326 1,989 Other 1,396 524 (1,487) Warranty obligations, end of period 45,913 37,098 31,294 Less: current portion (11,260) (10,078) (8,083) Noncurrent $ 34,653 $ 27,020 $ 23,211 Changes in Estimates On a quarterly basis, the Company uses the best and most complete underlying information available, following a consistent, systematic and rational methodology to determine its warranty obligations. The Company considers all available evidence to assess the reasonableness of all key assumptions underlying its estimated warranty obligations for each generation of microinverter. The changes in estimates discussed below resulted from consideration of new or additional information becoming available and subsequent developments. Changes in estimates included in the table above were comprised of the following: 2020 In 2020, the Company recorded a $8.8 million increase to warranty expense based on continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its prior generation products. The Company also recorded additional warranty expense of $1.2 million related to unit costs for prior generation microinverter replacement driven by tariffs and labor reimbursement costs expected to be paid to third party installers performing replacement services. 2019 In 2019, the Company recorded a $5.5 million increase to warranty expense related to cost increases primarily driven by increased U.S. tariffs announced during 2019 for its products manufactured in China. The Company also recorded additional warranty expense of $3.1 million based on continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its second and third generation products, partially offset by improved failure rates for its IQ7 series. 2018 In 2018, the Company recorded a $0.9 million increase to warranty expense related to cost increases primarily for backwards compatibility cables, supply constrained inventory components as well as tariffs. The Company also recorded additional warranty expense of $3.3 million based on continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its second and third generation products. In addition, the Company recorded an increase of $2.1 million related to increased estimated claim rates and an increase to warranty expense of $0.2 million for labor reimbursement costs expected to be paid to third party installers performing replacement services. These increases were partially offset by a $1.5 million reduction to warranty expense, presented as “Other” in the table above, related to changes in the discount rates for fair value accounting. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Level 1. The Company considers all highly liquid investments, such as certificates of deposit and money market instruments with maturities of three months or less at the time of acquisition to be cash equivalents. For all periods presented, its cash balances consist of amounts held in non-interest-bearing and interest-bearing deposits and money market accounts and are within Level 1 of the fair value hierarchy because they are valued using quoted market prices for identical instruments in active markets. As of December 31, 2020, cash and cash equivalents balance includes money market funds of $654.7 million. Level 2. Convertible Notes due 2025 Derivatives. On March 9, 2020, the Company issued $320 million aggregate principal amount of 0.25% convertible senior notes due 2025 (the “Notes due 2025”). Concurrently with the issuance of Notes due 2025, the Company entered into privately-negotiated convertible note hedge and warrant transactions which in combination are intended to reduce the potential dilution from the conversion of the Notes due 2025. On May 20, 2020, at the Company’s annual meeting of stockholders, the stockholders approved an amendment to its certificate of incorporation to increase the number of authorized shares of the Company’s common stock. As a result, the Company satisfied the share reservation condition (as defined in the relevant indenture associated with the Notes due 2025). The Company will now be able to settle the Notes due 2025, convertible notes hedge and warrants through payment or delivery, as the case may be, of cash, shares of its common stock or a combination thereof, at the Company’s election. Accordingly, on May 20, 2020, the embedded derivative liability, convertible notes hedge and warrants liability were remeasured at a fair value of $116.3 million, $117.1 million and $96.4 million, respectively, and were then reclassified to additional paid-in-capital in the condensed consolidated balance sheet in the second quarter of 2020 and are no longer remeasured as long as they continue to meet the conditions for equity classification. See Note 11. “Debt” for additional information related to these transactions. The fair value of the Convertible notes embedded derivative was estimated using Binomial Lattice model and the fair value of Convertible notes hedge and Warrants liability was estimated using Black-Scholes-Merton model. The significant observable inputs, either directly or indirectly, and assumptions used in the models to calculate the fair value of the derivatives include the Company’s common stock price, exercise price of the derivatives, risk-free interest rate, volatility, annual coupon rate and remaining contractual term. Notes due 2025 and Notes due 2024. The Company carries the Notes due 2025 and Notes due 2024 (as defined below) at face value less unamortized discount and issuance costs on its consolidated balance sheets. The fair value of the Notes due 2025 and Notes due 2024 was $725.5 million and $747.1 million, respectively, as of December 31, 2020 based on the closing trading prices per $100 principal amount as of the last day of trading for the period. The Company considers the fair value of the Notes due 2025 and Notes due 2024 to be a Level 2 measurement as they are not actively traded. Level 3. Equity investments without readily determinable fair value. In December 2020, the Company invested approximately $5.0 million in a privately-held company without readily determinable market value, which is included in “Other assets” in the consolidated balance sheet. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company did not record an impairment charge on its investment during the year ended December 31, 2020, as no events or changes in circumstances were identified which could result as an indicator for impairment. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the year ended December 31, 2020. Equity investments without readily determinable fair value are classified within Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods using a combination of observable and unobservable inputs including valuation ascribed to the issuing company in subsequent financing rounds, volatility in the results of operations of the issuers and rights and obligations of the securities the Company holds. Warranty Obligations. The following table presents the Company’s warranty obligations that were measured at fair value on a recurring basis and its categorization within the fair value hierarchy. December 31, December 31, 2019 (In thousands) Level 3 Level 3 Liabilities: Warranty obligations Current $ 8,267 $ 6,794 Non-current 20,469 13,012 Total warranty obligations measured at fair value 28,736 19,806 Total liabilities measured at fair value $ 28,736 $ 19,806 Fair Value Option for Warranty Obligations Related to Microinverters and Other Products Sold Since January 1, 2014 The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of failure rates, claim rates and replacement costs, the Company used certain Level 3 inputs which are unobservable and significant to the overall fair value measurement. Such additional assumptions included a discount rate based on the Company’s credit-adjusted risk-free rate and compensation comprised of a profit element and risk premium required of a market participant to assume the obligation. The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated. Years Ended December 31, 2020 2019 2018 (In thousands) Balance at beginning of period $ 19,806 $ 11,757 $ 9,791 Accruals for warranties issued during period 7,021 5,244 3,040 Changes in estimates 5,039 6,167 2,455 Settlements (7,781) (6,212) (4,030) Increase due to accretion expense 3,255 2,326 1,989 Other 1,396 524 (1,488) Balance at end of period $ 28,736 $ 19,806 $ 11,757 Quantitative and Qualitative Information about Level 3 Fair Value Measurements As of December 31, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Percent Used (Weighted Average) Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input December 31, December 31, Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 15% 14% Credit-adjusted risk-free rate 13% 16% Sensitivity of Level 3 Inputs - Warranty Obligations Each of the significant unobservable inputs is independent of the other. The profit element and risk premium are estimated based on requirements of a third-party participant willing to assume the Company’s warranty obligations. The credit‑adjusted risk‑free rate (“discount rate”) is determined by reference to the Company’s own credit standing at the fair value measurement date. Increasing the profit element and risk premium input by 100 basis points would result in a $0.2 million increase to the liability. Decreasing the profit element and risk premium by 100 basis points would result in a $0.2 million reduction of the liability. Increasing the discount rate by 100 basis points would result in a $1.4 million reduction of the liability. Decreasing the discount rate by 100 basis points would result in a $1.6 million increase to the liability. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING Restructuring expense consist of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Redundancy and employee severance and benefit arrangements $ — $ 1,575 $ 2,228 Asset impairments — 1,124 1,601 Consultants engaged in restructuring activities — — — Lease loss reserves (benefit) — (100) 300 Total restructuring charges $ — $ 2,599 $ 4,129 2018 Plan In the third quarter of 2018, the Company began implementing restructuring actions (the “2018 Plan”) to lower its operating expenses. The restructuring actions include reorganization of the Company’s global workforce, elimination of certain non-core projects and consolidation of facilities. The Company completed its restructuring activities under the 2018 Plan in 2019. The following table provides information regarding changes in the Company’s 2018 Plan accrued restructuring balance for the periods indicated. Redundancy and Employee Severance and Benefits Lease Loss Reserves and Contractual Obligations Total (In thousands) Balance as of December 31, 2018 $ 904 $ 288 $ 1,192 Charges 2,699 — 2,699 Cash payments (1,610) — (1,610) Non-cash settlement and other (1,993) (288) (2,281) Balance as of December 31, 2019 $ — $ — $ — The following table presents the details of the Company’s restructuring charges under the 2018 Plan for the period indicated: Years Ended December 31, 2020 2019 2018 (In thousands) Redundancy and employee severance and benefit arrangements $ — $ 1,575 $ 2,228 Asset impairments — 1,124 1,636 Lease loss reserves (benefit) — (100) 340 Total restructuring charges $ — $ 2,599 $ 4,204 2016 Plan In the third quarter of 2016, the Company began implementing restructuring actions (the “2016 Plan”) to lower its operating expenses. The restructuring actions have included reductions in the Company’s global workforce, the elimination of certain non-core projects, consolidation of office space at the Company’s corporate headquarters and the engagement of management consultants to assist the Company in making organizational and structural changes to improve operational efficiencies and reduce expenses. The Company completed its restructuring activities under the 2016 Plan in 2017. The following table provides information regarding changes in the Company’s 2016 Plan accrued restructuring balance for the periods indicated. Employee Severance and Benefits Asset Impairments Lease Loss Reserves and Contractual Obligations Total (In thousands) Balance as of December 31, 2018 — — $ 1,591 1,591 Other (1) — — (1,591) (1,591) Balance as of December 31, 2019 $ — $ — $ — $ — |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table provides information regarding the Company’s long-term debt. December 31, December 31, (In thousands) Convertible notes Notes due 2025 $ 320,000 $ — Less: unamortized discount and issuance costs (64,979) — Carrying amount of Notes due 2025 255,021 — Notes due 2024 88,140 132,000 Less: unamortized discount and issuance costs (19,119) (35,815) Carrying amount of Notes due 2024 69,021 96,185 Notes due 2023 5,000 5,000 Less: unamortized issuance costs (102) (143) Carrying amount of Notes due 2023 4,898 4,857 Sale of long-term financing receivable recorded as debt 1,925 4,501 Total carrying amount of debt 330,865 105,543 Less: current portion of convertible notes and long-term financing receivable recorded as debt (325,967) (2,884) Long-term debt $ 4,898 $ 102,659 Convertible Senior Notes due 2025 On March 9, 2020, the Company issued $320.0 million aggregate principal amount of the Notes due 2025. The Notes due 2025 are general unsecured obligations and bear interest at an annual rate of 0.25% per year, payable semi-annually on March 1 and September 1 of each year, beginning September 1, 2020. The Notes due 2025 are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Notes due 2025 will mature on March 1, 2025, unless earlier repurchased by the Company or converted at the option of the holders. The Company may not redeem the notes prior to the maturity date, and no sinking fund is provided for the notes. The Notes due 2025 may be converted, under certain circumstances as described below, based on an initial conversion rate of 12.2637 shares of common stock per $1,000 principal amount (which represents an initial conversion price of $81.54 per share). The conversion rate for the Notes due 2025 will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the relevant indenture), the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its notes in connection with such make-whole fundamental change. The Company received approximately $313.0 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the Notes due 2025. The Notes due 2025 may be converted prior to the close of business on the business day immediately preceding September 1, 2024, in multiples of $1,000 principal amount, at the option of the holder only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a 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 (the “measurement period”) in which the “trading price” (as defined in the relevant indenture) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On and after September 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date of March 1, 2025, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon the occurrence of a fundamental change (as defined in the relevant indenture), holders may require the Company to repurchase all or a portion of their Notes due 2025 for cash at a price equal to 100% of the principal amount of the notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of December 31, 2020, the sale price of the Company’s common stock was greater than or equal to $106.00 (130% of the notes conversion price) for at least 20 trading days (whether consecutive or not) during a period of 30 consecutive trading days preceding the quarter-ended December 31, 2020. As a result, as of December 31, 2020, the Notes due 2025 are convertible at the holders’ option through March 31, 2021. Accordingly, the Company classified the net carrying amount of the Notes due 2025 of $255.0 million as Debt, current on the consolidated balance sheet as of December 31, 2020. For the period from March 9, 2020, the issuance date, through May 19, 2020, the number of authorized and unissued shares of the Company’s common stock that are not reserved for other purposes was less than the maximum number of underlying shares that would be required to settle the Notes due 2025 into equity. Accordingly, unless and until the Company had a number of authorized shares that were not issued or reserved for any other purpose that equaled or exceeded the maximum number of underlying shares (“share reservation condition”), the Company would be required to pay to the converting holder in respect of each $1,000 principal amount of notes being converted solely in cash in an amount equal to the sum of the daily conversion values for each of the 20 consecutive trading days during the related observation period. However, following satisfaction of the share reservation condition, the Company could settle conversions of notes through payment or delivery, as the case may be, of cash, shares of the Company’s common stock or a combination of cash and shares of its common stock, at the Company’s election. In accounting for the issuance of the Notes due 2025, on March 9, 2020, the conversion option of the Notes due 2025 was deemed an embedded derivative requiring bifurcation from the Notes due 2025 (“host contract”) and separate accounting as an embedded derivative liability, as a result of the Company not having the necessary number of authorized but unissued shares of its common stock available to settle the conversion option of the Notes due 2025 in shares. The proceeds from the Notes due 2025 were first allocated to the embedded derivative liability and the remaining proceeds were then allocated to the host contract. On March 9, 2020, the carrying amount of the embedded derivative liability of $68.7 million representing the conversion option was determined using the Binomial Lattice model and the remaining $251.3 million was allocated to the host contract. The difference between the principal amount of the Notes due 2025 and the fair value of the host contract (the “debt discount”) is amortized to interest expense using the effective interest method over the term of the Notes due 2025. On May 20, 2020, at the Company’s annual meeting of stockholders, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation to increase the number of authorized shares of the Company’s common stock, par value $0.00001 per share, from 150,000,000 shares to 200,000,000 shares (the “Amendment”). The Amendment became effective upon filing with the Secretary of State of Delaware on May 20, 2020. As a result, the Company satisfied the share reservation condition. The Company may now settle the Notes due 2025 and warrants issued in conjunction with the Notes due 2025 through payment or delivery, as the case may be, of cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. Accordingly, on May 20, 2020, the embedded derivative liability was remeasured at a fair value of $116.3 million and was then reclassified to additional paid-in-capital in the condensed consolidated balance sheet in the second quarter of 2020 and is no longer remeasured as long as it continues to meet the conditions for equity classification. The Company recorded the change in the fair value of the embedded derivative in other expense, net in the consolidated statement of operations during the year ended December 31, 2020. The Company separated the Notes due 2025 into liability and equity components, this resulted in a tax basis difference associated with the liability component that represents a temporary difference. The Company recognized the deferred taxes of $0.2 million for the tax effect of that temporary difference as an adjustment to the equity component included in additional paid-in capital in the consolidated balance sheet. The following table presents the fair value and the change in fair value for the convertible note embedded derivative (in thousands): Convertible note embedded derivative liability Fair value as of March 9, 2020 $ 68,700 Change in the fair value 47,600 Fair value as of May 20, 2020 $ 116,300 Debt issuance costs for the issuance of the Notes due 2025 were approximately $7.6 million, consisting of initial purchasers' discount and other issuance costs. In accounting for the transaction costs, the Company allocated the total amount incurred to the Notes due 2025 host contract. Transaction costs were recorded as debt issuance cost (presented as contra debt in the consolidated balance sheet) and are being amortized to interest expense over the term of the Notes due 2025. The following table presents the total amount of interest cost recognized relating to the Notes due 2025 (in thousands): Year Ended December 31, 2020 Contractual interest expense $ 649 Amortization of debt discount 10,072 Amortization of debt issuance costs 1,229 Total interest cost recognized $ 11,950 The derived effective interest rate on the Notes due 2025 host contract was determined to be 5.18%, which remain unchanged from the date of issuance. The remaining unamortized debt discount was $58.6 million as of December 31, 2020, and will be amortized over approximately 4.2 years. Notes due 2025 Hedge and Warrant Transactions In connection with the offering of the Notes due 2025, the Company entered into privately-negotiated convertible note hedge transactions pursuant to which the Company has the option to purchase a total of approximately 3.9 million shares of its common stock (subject to anti-dilution adjustments), which is the same number of shares initially issuable upon conversion of the notes, at a price of $81.54 per share, which is the initial conversion price of the Notes due 2025. The total cost of the convertible note hedge transactions was approximately $89.1 million. The convertible note hedge transactions are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2025 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be. As of December 31, 2020, the Company had not purchased any shares under the convertible note hedge transactions. Additionally, the Company separately entered into privately-negotiated warrant transactions (the “Warrants”) whereby the Company sold warrants to acquire approximately 3.9 million shares of the Company’s common stock (subject to anti-dilution adjustments) at an initial strike price of $106.94 per share. The Company received aggregate proceeds of approximately $71.6 million from the sale of the Warrants. If the market value per share of the Company’s common stock, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on the Company’s earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. Taken together, the purchase of the convertible note hedges and the sale of the Warrants are intended to reduce potential dilution from the conversion of the Notes due 2025 and to effectively increase the overall conversion price from $81.54 to $106.94 per share. The Warrants are only exercisable on the applicable expiration dates in accordance with the agreements relating to each of the Warrants. Subject to the other terms of the Warrants, the first expiration date applicable to the Warrants is June 1, 2025, and the final expiration date applicable to the Warrants is September 23, 2025. As of December 31, 2020, the Warrants had not been exercised and remained outstanding. For the period from March 9, 2020, the issuance date of the convertible notes hedge and warrant transactions, through May 19, 2020, the number of authorized and unissued shares of the Company’s common stock that are not reserved for other purposes was less than the maximum number of underlying shares that will be required to settle the Notes due 2025 through the delivery of shares of the Company’s common stock. Accordingly, the convertibles note hedge and the warrant transactions could only be settled on net cash settlement basis. As a result the convertible note hedge and the warrants transaction were classified as a Convertible notes hedge asset and Warrants liability, respectively, in the consolidated balance sheet and the change in fair value of derivatives was included in other expense, net in the consolidated statement of operations. On May 20, 2020, at the Company’s annual meeting of stockholders, the stockholders approved the Amendment, and as a result, the Convertible notes hedge asset and Warrants liabilities were remeasured at a fair value of $117.1 million and $96.4 million, respectively, and were then reclassified to additional paid-in-capital in the condensed consolidated balance sheet in the second quarter of 2020 and is no longer remeasured as long as they continue to meet the conditions for equity classification. The change in the fair value of the Convertible notes hedge asset and Warrants liability were recorded in other expense, net in the consolidated statements of operations during the year ended December 31, 2020. The following table presents the fair value and the change in fair value for the Convertible notes hedge asset and Warrants liability: Convertible notes hedge Warrants liability (In thousands) Fair value as of March 9, 2020 $ 89,056 $ 71,552 Change in the fair value 28,052 24,799 Fair value as of May 20, 2020 $ 117,108 $ 96,351 Convertible Senior Notes due 2024 On June 5, 2019, the Company issued $132.0 million aggregate principal amount of 1.0% convertible senior notes due 2024 (the “Notes due 2024”). The Notes due 2024 are general unsecured obligations and bear interest at an annual rate of 1.0% per year, payable semi-annually on June 1 and December 1 of each year, beginning December 1, 2019. The Notes due 2024 are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Notes due 2024 will mature on June 1, 2024, unless earlier repurchased by the Company or converted at the option of the holders. The Company may not redeem the notes prior to the maturity date, and no sinking fund is provided for the notes. The Notes due 2024 may be converted, under certain circumstances as described below, based on an initial conversion rate of 48.7781 shares of common stock per $1,000 principal amount (which represents an initial conversion price of $20.5010 per share). The conversion rate for the Notes due 2024 will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the relevant indenture), the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its notes in connection with such make-whole fundamental change. The Company received approximately $128.0 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the Notes due 2024. The Notes due 2024 may be converted on any day prior to the close of business on the business day immediately preceding December 1, 2023, in multiples of $1,000 principal amount, at the option of the holder only under any of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a 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 $26.6513 (130% of the conversion price) on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the relevant indenture) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On and after December 1, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date of June 1, 2024, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon the occurrence of a fundamental change (as defined in the relevant indenture), holders may require the Company to repurchase all or a portion of their Notes due 2024 for cash at a price equal to 100% of the principal amount of the notes to be repurchased plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of December 31, 2020, the sale price of the Company’s common stock was greater than or equal to $26.6513 (130% of the notes conversion price) for at least 20 trading days (whether consecutive or not) during a period of 30 consecutive trading days preceding the quarter-ended December 31, 2020. As a result, as of December 31, 2020, the Notes due 2024 are convertible at the holders’ option through March 31, 2021. Accordingly, the Company classified the net carrying amount of the Notes due 2024 of $69.0 million as Debt, current on the consolidated balance sheet as of December 31, 2020. From January 1, 2021 through February 12, 2021, the Company has received the request for conversion of approximately $61.5 million in principal amount of Notes due 2024, of which the Company has elected to settle the aggregate principal amount of the Notes due 2024 in a combination of cash and any excess in shares of the Company’s common stock in accordance with the applicable indenture. Such conversion will be settled in March 2021. In accounting for the issuance of the Notes due 2024, on June 5, 2019, the Company separated the Notes due 2024 into liability and equity components. The carrying amount of the liability component of approximately $95.6 million was calculated by using a discount rate of 7.75%, which was the Company’s borrowing rate on the date of the issuance of the notes for a similar debt instrument without the conversion feature. The carrying amount of the equity component of approximately $36.4 million, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Notes due 2024. The equity component of the Notes due 2024 is included in additional paid-in capital in the consolidated balance sheet and is not remeasured as long as it continues to meet the conditions for equity classification. The difference between the principal amount of the Notes due 2024 and the liability component (the “debt discount”) is amortized to interest expense using the effective interest method over the term of the Notes due 2024. The Company separated the Notes due 2024 into liability and equity components, this resulted in a tax basis difference associated with the liability component that represents a temporary difference. The Company recognized the deferred taxes of $0.3 million for the tax effect of that temporary difference as an adjustment to the equity component included in additional paid-in capital in the consolidated balance sheet. Debt issuance costs for the issuance of the Notes due 2024 were approximately $4.6 million, consisting of initial purchasers' discount and other issuance costs. In accounting for the transaction costs, the Company allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds from the Notes due 2024. Transaction costs attributable to the liability component were approximately $3.3 million, were recorded as debt issuance cost (presented as contra debt in the consolidated balance sheet) and are being amortized to interest expense over the term of the Notes due 2024. The transaction costs attributable to the equity component were approximately $1.3 million and were netted with the equity component in stockholders’ equity. As of December 31, 2020 and 2019, the unamortized deferred issuance cost for the Notes due 2024 was $1.5 million and $2.9 million, respectively, on the consolidated balance sheets. During the fourth quarter of 2020, holders converted $43.9 million in aggregate principal amount of the Notes due 2024, the principal amount of which was repaid in cash. Of the $43.9 million in aggregate principal amount, $38.5 million in aggregate principal amount was settled pursuant to an exchange agreement entered into in December 2020 with certain holders of Notes due 2024. The Company also issued 1.9 million shares of its common stock to the holders with an aggregate fair value of $301.0 million, representing the conversion value in excess of the principal amount of the Notes due 2024, which were fully offset by shares received from the Company’s exercise of the associated note hedging arrangements discussed below. The total amount of $43.9 million paid to partially settle the Notes due 2024 was allocated between the liability and equity components of the amount extinguished by determining the fair value of the liability component immediately prior to the notes settlement and allocating that portion of the conversion price to the liability component in the amount of $37.2 million. The residual of the conversion price of $6.7 million was allocated to the equity component of the Notes due 2024 as a reduction of additional paid-in capital. The fair value of the notes settlement was calculated using a discount rate of 5.75%, representing an estimate of the Company's borrowing rate at the date of repurchase with a remaining expected life of approximately 3.6 years. As part of the settlement, the Company wrote-off the $8.9 million unamortized debt discount and $0.8 million debt issuance cost apportioned to the principal amount of Notes due 2024 settled. The Company also recorded a loss on partial settlement of the Notes due 2024 of $3.0 million in Other expense, net, representing the difference between the consideration attributed to the liability component and the sum of the net carrying amount of the liability component and unamortized debt issuance costs. As of December 31, 2020, $88.1 million aggregate principal amount of the Notes due 2024 remains outstanding. The following table presents the total amount of interest cost recognized in the statement of operations relating to the Notes due 2024: Years Ended December 31, 2020 2019 (In thousands) Contractual interest expense $ 1,284 $ 759 Amortization of debt discount 6,325 3,492 Amortization of debt issuance costs 646 375 Total interest cost recognized $ 8,255 $ 4,626 The effective interest rate on the liability component Notes due 2024 was 7.75% for the year ended December 31, 2020, which remains unchanged from the date of issuance. The remaining unamortized debt discount was $17.6 million and $32.9 million as of December 31, 2020 and December 31, 2019, respectively, and will be amortized over approximately 3.4 years from December 31, 2020. Notes due 2024 Hedge and Warrant Transactions In connection with the offering of the Notes due 2024, the Company entered into privately-negotiated convertible note hedge transactions pursuant to which the Company has the option to purchase a total of approximately 6.4 million shares of its common stock (subject to anti-dilution adjustments), which is the same number of shares initially issuable upon conversion of the notes, at a price of $20.5010 per share, which is the initial conversion price of the Notes due 2024. The total cost of the convertible note hedge transactions was approximately $36.3 million. The convertible note hedge transactions are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2024 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be. As a result of the conversion request received from the holders of $43.9 million in aggregate principal amount of the Notes due 2024 in the fourth quarter of 2020, the Company exercised the 2.1 million shares representing proportionate number of the convertible note hedge transaction and received 1.9 million shares on net basis of its common stock during the period. As of December 31, 2020, option to purchase a total of approximately 4.3 million shares remain outstanding. Additionally, the Company separately entered into privately-negotiated warrant transactions (the “Warrants”) whereby the Company sold warrants to acquire approximately 6.4 million shares of the Company’s common stock (subject to anti-dilution adjustments) at an initial strike price of $25.2320 per share. The Company received aggregate proceeds of approximately $29.8 million from the sale of the Warrants. If the market value per share of the Company’s common stock, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on the Company’s earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. Taken together, the purchase of the convertible note hedges and the sale of the Warrants are intended to reduce potential dilution from the conversion of the Notes due 2024 and to effectively increase the overall conversion price from $20.5010 to $25.2320 per share. The Warrants are only exercisable on the applicable expiration dates in accordance with the Warrants. Subject to the other terms of the Warrants, the first expiration date applicable to the Warrants is September 1, 2024, and the final expiration date applicable to the Warrants is April 22, 2025. During the fourth quarter of 2020, the Company entered into partial unwind agreements to unwind number of warrants exercisable under the note hedge arrangements and to issue approximately 2.1 million Warrants on a net basis, resulting in a net issuance of approximately 1.9 million shares of the Company’s common stock in connection with the exchange of the Notes due 2024. As of December 31, 2020, Warrants exercisable to purchase a total of approximately 4.3 million shares remains outstanding. Given that the transactions meet certain accounting criteria, the Notes due 2024 hedge and the warrants transactions are recorded in stockholders’ equity, and they are not accounted for as derivatives and are not remeasured each reporting period. Convertible Senior Notes due 2023 In August 2018, the Company sold $65.0 million aggregate principal amount of 4.0% convertible senior notes due 2023 (the “Notes due 2023”) in a private placement. On May 30, 2019, the Company entered into separately and privately negotiated transactions with certain holders of the Notes due 2023 resulting in the repurchase and exchange, as of June 5, 2019, of $60.0 million aggregate principal amount of the notes in consideration for the issuance of 10,801,080 shares of common stock and separate cash payments totaling $6.0 million. As of both December 31, 2020 and December 31, 2019, $5.0 million aggregate principal amount of the Notes due 2023 remains outstanding. The remaining outstanding Notes due 2023 are general unsecured obligations and bear interest at a rate of 4.0% per year, payable semi-annually on February 1 and August 1 of each year. The Notes due 2023 are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The remaining outstanding Notes due 2023 will mature on August 1, 2023, unless earlier repurchased by the Company or converted at the option of the holders. The Company may not redeem the remaining Notes due 2023 prior to the maturity date, and no sinking fund is provided for such notes. The remaining Notes due 2023 are convertible, at a holder’s election, in multiples of $1,000 principal amount, into shares of the Company’s common stock based on the applicable conversion rate. The initial conversion rate for such notes is 180.0180 shares of common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $5.56 per share). The conversion rate and the corresponding conversion price are subject to adjustment upon the occurrence of certain events but will not be adjusted for any accrued and unpaid interest. Holders of the remaining Notes due 2023 who convert their notes in connection with a make-whole fundamental change (as defined in the applicable indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change, holders of the remaining Notes due 2023 may require the Company to repurchase all or a portion of their notes at a price equal to 100% of the principal amount of notes, plus any accrued and unpaid interest, including any additional interest to, but excluding, the repurchase date. Holders may convert all or any portion of their Notes due 2023 at their option at any time prior to the close of business on the business day immediately preceding the maturity date, in multiples of $1,000 principal amount. The following table presents the amount of interest cost recognized relating to the contractual interest coupon and the amortization of debt issuance costs of the Notes due 2023. Years Ended December 31, 2020 2019 (In thousands) Contractual interest expense $ 200 $ 1,226 Amortization of debt issuance costs 40 245 Total interest costs recognized $ 240 $ 1,471 Sale of Long-Term Financing Receivables The Company entered into an agreement with a third party in the fourth quarter of 2017 to sell certain current and future receivables at a discount. In December 2017, the third party made an initial purchase of receivables that resulted in net proceeds to the Company of $2.8 million. This transaction was recorded as debt on the accompanying consolidated balance sheets, and the debt balance was relieved in January 2019 as the underlying receivables were settled. During the year ended December 31, 2018, the third party made three additional purchases of receivables that resulted in total net proceeds to the Company of $5.6 million. These transactions were recorded as debt on the accompanying consolidated balance sheets, and the total associated debt balance will be relieved by September 2021 as the underlying receivables are settled. As of December 31, 2020, the total sale of long-term financing receivable recorded as debt of $1.9 million remains outstanding. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office facilities under noncancelable operating leases that expire on various dates through 2031, some of which may include options to extend the leases for up to 12 years. The components of lease expense are presented as follows: Years Ended December 31, 2020 2019 (In thousands) Operating lease costs $ 5,332 $ 4,041 The components of lease liabilities are presented as follows: December 31, December 31, (In thousands) Operating lease liabilities, current (Accrued liabilities) $ 4,542 $ 3,170 Operating lease liabilities, noncurrent (Other liabilities) 15,209 9,542 Total operating lease liabilities $ 19,751 $ 12,712 Supplemental lease information: Weighted average remaining lease term 6.4 years 5.5 years Weighted average discount rate 7.7% 8.6% Supplemental cash flow and other information related to operating leases, are as follows: Years Ended December 31, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,762 $ 3,636 Non-cash investing activities: Lease liabilities arising from obtaining right-of-use assets $ 10,625 $ 4,834 Undiscounted cash flows of operating lease liabilities as of December 31, 2020 are as follows: Lease Amounts (In thousands) Year: 2021 $ 5,830 2022 4,677 2023 4,056 2024 3,069 2025 2,275 2026 and thereafter 3,968 Total lease payments 23,875 Less: imputed lease interest (4,124) Total lease liabilities $ 19,751 Purchase Obligations The Company has contractual obligations related to component inventory that its contract manufacturers procure on its behalf in accordance with its production forecast as well as other inventory related purchase commitments. As of December 31, 2020, these purchase obligations totaled approximately $162.2 million. Letter of Credits As of December 31, 2019, the Company had a standby letter of credit in the aggregate amount of $44.7 million, primarily in connection with one of its customer contracts. The letter of credit served as a performance security for product delivered to the customer in the first quarter of 2020 and expired on April 30, 2020. No amounts were drawn against this letter of credit. As of December 31, 2020, the Company has no letter of credits outstanding. Litigation The Company is subject to various legal proceedings relating to claims arising out of its operations that have not been fully resolved. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s business, results of operations, financial position and cash flows for that reporting period could be materially adversely affected. As of February 12, 2021, the Company is not currently a party to any matters that the management expects will have an adverse material effect on the Company’s consolidated financial position, results of operations or cash flows. Contingencies On March 26, 2020, the Office of the United States Trade Representative (the “USTR”) announced certain exclusion requests related to tariffs on Chinese imported microinverter products that fit the dimensions and weight limits within a Section 301 Tariff exclusion under U.S. note 20(ss)(40) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (the “Tariff Exclusion”). The Tariff Exclusion applies to covered products under the China Section 301 Tariff Actions (“Section 301 Tariffs”) taken by the USTR exported from China to the United States from September 24, 2018 until August 7, 2020. Accordingly, the Company has sought refunds totaling approximately $38.9 million plus approximately $0.6 million accrued interest on tariffs previously paid from September 24, 2018 to March 31, 2020 for certain microinverters that qualify for the Tariff Exclusion. The refund request was subject to review and approval by the U.S. Customs and Border Protection; therefore, the Company assessed the probable loss recovery in the year ended December 31, 2020 is equal to the approved refund requests available to us prior to issuance of the financial statements on February 12, 2021. As of December 31, 2020, the Company had received $24.8 million of tariff refunds and accrued for the remaining $14.7 million tariff refunds that were approved, however, not yet received on or before December 31, 2020. For the year ended December 31, 2020, the Company recorded $38.9 million as a reduction to cost of revenues in the Company’s consolidated statements of operations as the approved refunds relate to paid tariffs previously recorded to cost of revenues, therefore, the Company recorded the corresponding approved tariff refunds as credits to cost of revenues in the current period. For the year ended December 31, 2020, the Company recorded the $0.6 million accrued interest as interest income in the consolidated statement of operations. The tariff refund receivable of $14.7 million is recorded as a reduction of accounts payable to Flex Ltd. and affiliates (“Flex”), the Company’s manufacturing partner and the importer of record who will first receive the tariff refunds, on the Company’s consolidated balance sheet as of December 31, 2020. The Company is unable to predict the timing of receipt of the $14.7 million approved. The Tariff Exclusion expired on August 7, 2020 and those microinverter products now are subject to tariffs. The Company continues to pay Section 301 Tariffs on its storage and communication products and other accessories imported from China which are not subject to the Tariff Exclusion. |
SALE OF COMMON STOCK
SALE OF COMMON STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
SALE OF COMMON STOCK | SALE OF COMMON STOCKIn February 2018, the Company entered into a Securities Purchase Agreement with an investor pursuant to which the Company, in a private placement, issued and sold to the investor approximately 9.5 million shares of the Company’s common stock at a price per share of $2.10, for gross proceeds of approximately $20.0 million. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Description of Equity Incentive Plans 2006 Plan Under the Company’s 2006 Equity Incentive Plan (the “2006 Plan”), equity awards granted generally vest over a 4‑year period from the date of grant with a contractual term of up to 10 years. As of December 31, 2020, there were less than 0.1 million shares of options outstanding under the 2006 Plan. No further stock options or other stock awards may be granted under the 2006 Plan. 2011 Plan Under the 2011 Equity Incentive Plan (the “2011 Plan”), the Company could initially issue up to 2,643,171 shares of its common stock pursuant to stock options, stock appreciation rights (“SARS”), restricted stock awards (“RSA”), RSUs, PSUs, and other forms of equity compensation, or collectively, stock awards, all of which may be granted to employees, including officers, and to non-employee directors and consultants. Options granted under the 2011 Plan before August 1, 2012 generally expire 10 years after the grant date and options granted thereafter generally expire 7 years after the grant date. Equity awards granted under the 2011 Plan generally vest over a 4-year period from the date of grant based on continued employment. The number of shares of the Company’s common stock authorized for issuance under the 2011 Plan automatically increases on each January 1 by 4.5% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year, or such lesser number of shares of common stock as determined by the board of directors. As of December 31, 2020, 8,940,388 shares remained available for issuance pursuant to future grants under the 2011 Plan. On January 1, 2021, the shares available for issuance under the 2011 Plan automatically increased by 5,803,296 shares. 2011 Employee Stock Purchase Plan The 2011 Employee Stock Purchase Plan (“ESPP”) became effective immediately upon the execution and delivery of the underwriting agreement for the Company’s initial public offering on March 29, 2012. The ESPP authorized the issuance of 669,603 shares of the Company’s common stock pursuant to purchase rights granted to employees. The number of shares of common stock reserved for issuance will automatically increase, on each January 1, by a lesser of (i) 330,396 shares of the Company’s common stock or (ii) 1.0% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year, as determined by the Company’s board of directors. At the Annual Meeting of Stockholders held on May 18, 2017 the Company’s stockholders approved a one-time amendment to the Company’s ESPP to increase the aggregate number of shares available for purchase by 400,000 shares and to increase the annual automatic minimum increase in shares reserved for issuance from 330,396 to 700,000 shares effective January 1, 2018. As of December 31, 2020, 1,288,887 shares remained available for future issuance under the ESPP. On January 1, 2021, the shares available for issuance under the ESPP automatically increased by 700,000 shares. The ESPP is implemented by concurrent offering periods and each offering period may contain up to four interim purchase periods. In general, offering periods consist of the 24-month periods commencing on each May 15 and November 15 of a calendar year. Generally, all full-time employees in Australia, France, India, Mexico, New Zealand, the Netherlands and the United States, including executive officers, are eligible to participate in the ESPP. The ESPP permits eligible employees to purchase the Company’s common stock through payroll deductions, which may not exceed 15% of the employee’s total compensation subject to certain limits. Stock may be purchased under the plan at a price equal to 85% of the fair market value of the Company’s stock on either the date of purchase or the first day of an offering period, whichever is lower. A two‑year look-back feature in the Company’s ESPP causes an offering period to reset if the fair value of the Company’s common stock on a purchase date is less than that on the initial offering date for that offering period. The reset feature, when triggered, will be accounted for as a modification to the original offering, resulting in additional expense to be recognized over the 24-month period of the new offering. During any calendar year, participants may not purchase shares of common stock having a value greater than $25,000, based on the fair market value per share of the common stock at the beginning of an offering period. Valuation of Equity Awards Stock Options The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: • Expected term - The expected term of the option awards represents the period of time between the grant date of the option awards and the date the option awards are either exercised, converted or canceled, including an estimate for those option awards still outstanding. The Company used the simplified method, as permitted by the SEC for companies with a limited history of stock option exercise activity, to determine the expected term for its option grants. • Expected volatility - The expected volatility was calculated based on the Company’s historical stock prices, supplemented as necessary with historical volatility of the common stock of several peer companies with characteristics similar to those of the Company. • Risk-free interest rate - The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximated the Company’s expected term. • Dividend yield - The dividend yield was based on the Company’s dividend history and the anticipated dividend payout over its expected term. The following table presents the weighted-average grant date fair value of options granted for the periods presented and the assumptions used to estimate those values using a Black-Scholes option pricing model. Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 38.45 $ 9.16 $ 2.83 Expected term (in years) 3.8 3.8 4.0 Expected volatility 86.4% 89.1% 88.5% Annual risk-free rate of return 0.1% 2.1% 2.6% Dividend yield —% —% —% Restricted Stock Units The fair value of the Company’s restricted stock units (“RSU”) awards granted is based upon the closing price of the Company’s stock price on the date of grant. Performance Stock Units The fair value of the Company’s non-market performance stock units (“PSU”) awards granted was based upon the closing price of the Company’s stock price on the date of grant. The fair value of awards of the Company’s PSU awards containing market conditions was determined using a Monte Carlo simulation model based upon the terms of the conditions, the expected volatility of the underlying security, and other relevant factors. Stock-based Compensation Expense Stock-based compensation expense for all stock-based awards expected to vest is measured at fair value on the date of grant and recognized ratably over the requisite service period. The following table summarizes the components of total stock-based compensation expense included in the consolidated statements of operations for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands) Cost of revenues $ 3,759 $ 1,650 $ 1,071 Research and development 12,701 4,897 2,940 Sales and marketing 11,548 5,678 3,074 General and administrative 14,495 7,216 4,347 Restructuring — 735 — Total $ 42,503 $ 20,176 $ 11,432 Income tax benefit included in the provision for incomes taxes $ 61,389 $ 8,185 $ — The following table summarizes the various types of stock-based compensation expense for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands) Stock options, RSUs, and PSUs $ 39,841 $ 19,216 $ 10,691 Employee stock purchase plan 2,662 960 741 Total $ 42,503 $ 20,176 $ 11,432 As of December 31, 2020, there was approximately $89.7 million of total unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 2.9 years. Equity Awards Activity Stock Options The following is a summary of stock option activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 8,426 $ 1.77 Granted 213 4.43 Exercised (1,346) 1.75 $ 5,096 Canceled (521) 2.94 Outstanding at December 31, 2018 6,772 $ 1.76 Granted 43 14.58 Exercised (2,616) 1.22 $ 31,093 Canceled (102) 4.07 Outstanding at December 31, 2019 4,097 $ 2.18 Granted 11 64.17 Exercised (1,494) 2.74 $ 114,089 Canceled (82) 6.94 Outstanding at December 31, 2020 2,532 $ 1.96 3.7 $ 439,268 Vested and expected to vest at December 31, 2020 2,532 $ 1.96 3.7 $ 439,268 Exercisable at December 31, 2020 2,089 $ 1.95 3.7 $ 362,526 (1) The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise. The intrinsic value of options outstanding, vested and expected to vest, and exercisable as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. The following table summarizes information about stock options outstanding at December 31, 2020. Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- (In thousands) (Years) (In thousands) $0.70 —– $1.11 555 4.2 $ 0.85 448 $ 0.83 $1.29 —– $1.29 1,000 3.7 1.29 813 1.29 $1.31 —– $1.31 670 3.3 1.31 587 1.31 $1.37 —– $14.58 296 3.6 5.56 235 6.37 $64.17 —– $64.17 11 6.3 64.17 6 64.17 Total 2,532 3.7 $ 1.96 2,089 $ 1.95 Restricted Stock Units The following is a summary of RSU activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 3,505 $ 2.03 Granted 3,152 4.45 Vested (1,399) 2.75 $ 6,657 Canceled (906) 2.17 Outstanding at December 31, 2018 4,352 $ 3.52 Granted 2,112 11.50 Vested (1,707) 3.87 $ 27,156 Canceled (494) 4.81 Outstanding at December 31, 2019 4,263 $ 7.19 Granted 1,550 55.66 Vested (2,085) 7.26 $ 125,578 Canceled (140) 19.47 Outstanding at December 31, 2020 3,588 $ 27.61 1.08 $ 629,633 Expected to vest at December 31, 2020 3,588 $ 27.61 1.08 $ 629,633 (1) The intrinsic value of RSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. Performance Stock Units The following is a summary of PSU activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 — Granted 1,477 $ 4.65 Vested — Canceled (147) Outstanding at December 31, 2018 1,330 $ 4.66 Granted 1,052 9.48 Vested (1,063) 4.62 10,818 Canceled (364) 5.16 Outstanding at December 31, 2019 955 $ 9.83 Granted 989 31.12 Vested (1,450) 10.20 $ 52,144 Canceled — — Outstanding at December 31, 2020 494 $ 51.10 0.2 $ 86,668 (1) The intrinsic value of PSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. Employee Stock Purchase Plan A summary of ESPP activity for the years presented is as follows: (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Proceeds from common stock issued under ESPP $ 4,304 $ 1,692 $ 397 Shares of common stock issued 347 315 439 Weighted-average price per share $ 12.41 $ 5.37 $ 0.90 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of income (loss) before income taxes consisted of the following: Years Ended December 31, 2020 2019 2018 (In thousands) United States $ 112,727 $ 85,520 $ (14,322) Foreign 6,683 4,594 4,093 Income (loss) before income taxes $ 119,410 $ 90,114 $ (10,229) The income taxes (benefit) provision for the years presented is as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Current: Federal $ — $ — $ — State 636 327 42 Foreign 1,896 1,589 1,233 2,532 1,916 1,275 Deferred: Federal (13,445) (56,959) (35) State (3,672) (17,458) (21) Foreign — 1,467 179 (17,117) (72,950) 123 Income taxes (benefit) provision $ (14,585) $ (71,034) $ 1,398 A reconciliation of the income tax (benefit) provision and the amount computed by applying the statutory federal income tax rate of 21% to income (loss) before income taxes for the years presented is as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Income tax (benefit) provision at statutory federal rate $ 25,076 $ 18,929 $ (2,148) State taxes, net of federal benefit (3,098) (17,197) 17 Change in valuation allowance — (71,300) 8,198 Foreign tax rate and tax law differential 611 1,206 313 Tax credits (5,835) (1,803) (378) Stock-based compensation (50,818) (8,072) (953) Other permanent items (253) 31 235 Other nondeductible/nontaxable items 1,525 2,765 (5,112) Uncertain tax positions 1,530 504 107 GILTI — 1,086 917 Section 162(m) 11,469 2,817 202 Warrant mark-to-mark adjustment 5,208 — — Income tax (benefit) provision $ (14,585) $ (71,034) $ 1,398 A summary of significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 is as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Allowances and reserves $ 13,146 $ 10,726 Net operating loss and tax credit carryforwards 53,116 54,369 Stock-based compensation 4,598 3,753 Deferred revenue 20,765 16,736 Fixed assets and intangibles 8,706 2,720 Sec. 163(j) interest carryforward 4,401 — Other 7,007 1,109 Subtotal 111,739 89,413 Total deferred tax assets 111,739 89,413 Deferred tax liabilities: Goodwill (1,719) (1,368) Unremitted foreign earnings (7) (5) Deferred cost of goods sold (17,545) (14,374) Total deferred tax liabilities (19,271) (15,747) Net deferred tax asset $ 92,468 $ 73,666 The Company's accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of the Company's deferred tax assets. Assessing the realizability of deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. The Company's management forecasts taxable income by considering all available positive and negative evidence including its history of operating income or losses and its financial plans and estimates which are used to manage the business. These assumptions require significant judgment about future taxable income. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are reduced. The Company has net operating loss carryforwards for federal and California income tax purposes of approximately $113.7 million and $87.3 million, respectively, as of December 31, 2020. The federal and state net operating loss carryforwards, if not utilized, will expire beginning in 2036 and 2029, respectively. The Company has approximately $18.2 million of federal research credit and $12.6 million of state research credit carryforwards. The federal credits begin to expire in 2026 and the state credits can be carried forward indefinitely. Utilization of some of the federal and state net operating loss and credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The Company has completed a Section 382 analysis through December 31, 2020, which indicated no such change has occurred through December 31, 2020. The accounting for uncertain tax positions prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company is required to recognize in the financial statements the impact of a tax position, if that position is more-likely-than-not of being sustained on audit, based on the technical merits of the position. The Company recorded a net charge for unrecognized tax benefits in 2020 of $1.8 million. The Company does not have any tax positions for which it is reasonably possible the total amount of gross unrecognized tax benefits will increase or decrease over the next year. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business. A tabular reconciliation of the total amounts of unrecognized tax benefits for the years presented is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Unrecognized tax benefits—at beginning of year $ 6,589 $ 6,325 $ 6,106 Decreases in balances related to tax positions taken in prior years — (370) — Increases in balances related to tax positions taken in current year 2,006 771 329 Lapses in statutes of limitations (174) (137) (110) Unrecognized tax benefits—at end of year $ 8,421 $ 6,589 $ 6,325 The Company includes interest and penalties related to unrecognized tax benefits within the benefit from (provision for) income taxes. As of years ended December 31, 2020, 2019 and 2018, the total amount of gross interest and penalties accrued in each year was immaterial. Both the unrecognized tax benefits and the associated interest and penalties that are not expected to result in payment or receipt of cash within one year are classified as other non-current liabilities in the consolidated balance sheets. In connection with tax matters, the Company’s interest and penalty expense recognized in 2020, 2019 and 2018 in the consolidated statements of operations was immaterial. The Company’s tax returns continue to remain effectively subject to examination by U.S. federal authorities for the years 2006 through 2020 and by California state authorities for the years 2006 through 2020 due to use and carryovers of net operating losses and credits. |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS The Company is potentially subject to financial instrument concentration of credit risk through its cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality institutions and performs periodic evaluations of their relative credit standing. Accounts receivable can be potentially exposed to a concentration of credit risk with its major customers. As of December 31, 2020, amounts due from one customer represented approximately 36% of the total accounts receivable balance. As of December 31, 2019, amounts due from three customers represented 34%, 14% and 11% of the total accounts receivable balance. In 2020, one customer accounted for approximately 29% of total net revenues. In 2019, two customers accounted for approximately 21% and 12% of total net revenues. In 2018, one customer accounted for approximately 19% of total net revenues. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares include Stock Options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes due 2023, the Notes due 2024, Warrants issued in conjunction with the Notes due 2024, and from May 20, 2020 to the end of the reporting period, the Notes due 2025 and Warrants issued in conjunction with the Notes due 2025. See Note 11. “Debt” for additional information. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method for stock options, RSUs, PSUs, Notes due 2024, warrants issued in conjunction with the Notes due 2024, Notes due 2025, warrants issued in conjunction with the Notes due 2025 and shares to be purchased under the ESPP, and by application of the if-converted method for the Notes due 2023. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income (loss) per share. The following table presents the computation of basic and diluted net income (loss) per share for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands, except per share data) Numerator: Net income (loss) $ 133,995 $ 161,148 $ (11,627) Notes due 2023 interest and financing costs, net 177 1,088 — Adjusted net income (loss) $ 134,172 $ 162,236 $ (11,627) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 125,561 116,713 99,619 Shares used in diluted per share amounts: Weighted average common shares outstanding 125,561 116,713 99,619 Effect of dilutive securities: Employee stock-based awards 6,997 8,964 — Warrants (issued in conjunction with Notes due 2024) 4,011 — — Notes due 2024 4,449 451 — Notes due 2023 900 5,516 — Weighted average common shares outstanding for diluted calculation 141,918 131,644 99,619 Basic and diluted net income (loss) per share Net income (loss) per share, basic $ 1.07 $ 1.38 $ (0.12) Net income (loss) per share, diluted $ 0.95 $ 1.23 $ (0.12) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive. Years Ended December 31, 2020 2019 2018 (In thousands) Employee stock options 7 27 7,710 RSUs and PSUs 36 158 5,273 Warrants (issued in conjunction with Notes due 2024) — 300 — Warrants (issued in conjunction with Notes due 2025) 1,254 — — Notes due 2025 197 — Notes due 2023 — — 11,701 Total 1,494 485 24,684 Diluted earnings per share for the year ended December 31, 2020 includes the dilutive effect of stock options, RSUs, PSUs, shares to be purchased under the ESPP, the Notes due 2023, the Notes due 2024, and warrants issued in conjunction with the Notes due 2024. Certain common stock issuable under stock options, RSUs, PSUs, Notes due 2025 and warrants issued in conjunction with the Notes due 2025 have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company’s chief operating decision maker is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis. The Company has one business activity, which entails the design, development, manufacture and sale of solutions for the solar photovoltaic industry. There are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, management has determined that the Company has a single operating and reportable segment. See Note 3. “Revenue Recognition for the table presenting net revenues (based on the destination of shipments). The following table presents long-lived assets by geographic region as of and for the periods presented (in thousands): Long-Lived Assets December 31, 2020 2019 (In thousands) United States $ 19,870 $ 16,754 China 9,948 4,635 Mexico 4,808 3,510 India 4,371 1,315 New Zealand 3,837 2,638 Other 151 84 Total $ 42,985 $ 28,936 |
RELATED PARTY
RELATED PARTY | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | RELATED PARTYIn 2018, a member of the Company’s board of directors and one of its principal stockholders, Thurman John Rodgers, purchased $5.0 million aggregate principal amount of the Notes due 2023 in a concurrent private placement. As of both December 31, 2020 and December 31, 2019, $5.0 million aggregate principal amount of the Notes due 2023 were outstanding. See Note 11. “Debt” for additional information related to this purchase. The Company sells products to SunPower under the August 2018 MSA. As of December 31, 2019 , SunPower via its wholly owned subsidiary, held 6.5 million shares of the Company’s common stock. Revenue recognized under the MSA for the year ended December 31, 2019 was $70.9 million , net of amortization of the customer relationship intangible asset (see Note 6. “Goodwill and Intangible Assets”) . As of December 31, 2019 , the Company had accounts receivable of $15.9 million from SunPower. As of December 31, 2019 , the Company received $5.2 million as a safe harbor prepayment from SunPower in the fourth quarter of 2019 for product delivered in the first quarter of 2020. As of December 31, 2020, SunPower via its wholly owned subsidiary held 3.5 million shares of the Company’s common stock which is less than 5% of the Company’s common stock outstanding and is no longer a considered a related party. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On August 9, 2018, the Company completed its acquisition of SunPower’s microinverter business pursuant to an APA by which the Company acquired certain assets and liabilities of SunPower relating to the research and development and manufacturing of microinverters. The acquisition was accounted for as a business combination and, accordingly, the total purchase price was allocated to the preliminary net tangible and intangible assets and liabilities based on their preliminary fair values on the acquisition date. In conjunction with the APA, the Company entered into an MSA with SunPower. Pursuant to the terms of the MSA, the Company becomes the exclusive supplier of MLPEs for SunPower’s residential business in the U.S. for a period of five years. The resulting customer relationship intangible is accounted for as a distinct transaction from the acquired business. The acquisition date fair value of the consideration transferred was approximately $57.3 million, which consisted of the following (in thousands): Cash consideration $ 25,000 Common stock issued 32,319 Total $ 57,319 The fair value of the Company’s 7.5 million shares of common stock issued, valued at $32.3 million, was determined based on the closing market price of the Company’s common stock on the acquisition date, less a discount of 14% to 30% (depending on the year) for lack of marketability as the shares issued are subject to a restriction that limits their trade or transfer with a lock-up period of six months and restrictions on the number of shares that can be transferred by SunPower in each six-month period following the lock-up period. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 36,200 Goodwill 21,119 Net assets acquired $ 57,319 The excess of the consideration paid over the fair values assigned to the assets acquired and liabilities assumed represents the goodwill resulting from the acquisition. The $21.1 million of goodwill recognized is attributable primarily to the benefits the Company expects to derive from enhanced scale and efficiency to better serve its markets. Goodwill is expected to be deductible over the next 15 years for income tax purposes. The fair values assigned to tangible and identifiable intangible assets acquired are based on management’s estimates and assumptions. The fair values of assets acquired are preliminary and may be subject to change within the measurement period as the fair value assessments are finalized. The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: Preliminary Fair Value Useful Life (In thousands) (Years) Developed technology $ 13,100 6 Customer relationship 23,100 9 Total identifiable intangible assets $ 36,200 The developed technology acquired is embedded in the microinverters that SunPower sells to its customers. The Company already has developed microinverter technology and the Company will supply its microinverters to SunPower through the term of the MSA. The Company does not intend to actively use the developed technology acquired from SunPower but does plan to hold the developed technology to prevent others from using it. Therefore, the Company will account for the developed technology as a defensive intangible asset. The Company expects to realize the benefits of the developed technology over the period of time in which the Company will supply microinverters to SunPower. The Company does expect changes in microinverter technology during the life of the customer relationship with SunPower and expects to benefit from preventing competitors’ access to the technology over a period of six years, therefore, the Company will amortize the value of the developed technology intangible asset over a period of six years. The MSA was negotiated together with the APA and provides the Company with the exclusive right to supply SunPower with MLPEs for a period of five years, with options for renewals. The exclusivity arrangement extends throughout the term of the MSA, which comprises all of the expected cash flows from the customer relationship intangible asset, and was a condition to, and was an essential part of the acquisition of the microinverter business by the Company. As the fair value ascribed to the customer relationship intangible asset represents payments to a customer, the Company will amortize the value of the customer relationship intangible asset as a reduction to revenue using a pattern of economic benefit method over a useful life of nine years. The table below shows estimated fair values of the assets acquired funded by cash and issuance of common stock at the acquisition date: Cash Purchase Price Issuance of Common Stock Total Consideration % of Total Consideration (In thousands) Developed technology and goodwill $ 15,000 $ 19,219 $ 34,219 60 % Customer relationship 10,000 13,100 23,100 40 % Total consideration $ 25,000 $ 32,319 $ 57,319 100 % The Company allocated $10.0 million of the $25.0 million paid of the cash purchase price to cash flows from operating activities and the remaining $15.0 million to cash used in investing activities in the consolidated statements of cash flows for the year ended December 31, 2018. The allocation was based on the valuation of the customer relationship relative to the overall consideration. In addition, the Company disclosed $19.2 million from issuance of common stock and $15.0 million of cash purchase price paid for the developed technology and goodwill as investing activities in the consolidated statements of cash flows for the year ended December 31, 2018. During 2018, total acquisition-related costs were approximately $0.8 million, which were included in general and administrative expenses. The Company determined it is impractical to include such pro forma information given the difficulty in obtaining the historical financial information for the SunPower microinverter business as the business was part of SunPower and did not have discrete financial information prior to the acquisition. Inclusion of such information would require the Company to make estimates and assumptions regarding the acquired business historical financial results that the Company believes may ultimately prove inaccurate. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2021, the Company invested $25.0 million in cash in a privately-held company. The investment does not require consolidation into the Company’s financial statements because the privately-held company is not a variable interest entity and the Company does not hold a majority voting interest. On January 25, 2021, the Company completed the acquisition of 100% of the voting interest of Sofdesk Inc. (“Sofdesk”), a privately-held company. Sofdesk provides design software for residential solar installers and roofing companies. As part of the consideration, the Company paid approximately $32.0 million in cash on January 25, 2021. The Company is currently in the process of completing the preliminary purchase price allocation, which will be included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. On February 8, 2021, the Company announced that it has agreed to acquire the solar design services business of DIN Engineering Services LLP (“DIN”). DIN provides proposal drawings and permit plan sets for residential solar installers in North America. The acquisition is subject to customary closing conditions and regulatory approvals. |
SELECTED UNAUDITED QUARTERLY FI
SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION | SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in thousands, except per share data): Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Net revenues $ 205,545 $ 125,538 $ 178,503 $ 264,839 Cost of revenues 124,870 77,151 83,522 142,901 Gross profit 80,675 48,387 94,981 121,938 Operating expenses: Research and development 11,876 13,192 15,052 15,801 Sales and marketing 11,772 12,371 14,645 14,139 General and administrative 12,315 11,970 13,525 12,884 Total operating expenses 35,963 37,533 43,222 42,824 Income from operations 44,712 10,854 51,759 79,114 Other income (expense), net Interest Income 1,091 282 110 673 Interest expense (3,155) (5,952) (5,993) (5,901) Other income (expense) (924) 653 (1,031) (2,534) Change in fair value of derivatives 15,344 (59,692) — — Total other income (expense), net 12,356 (64,709) (6,914) (7,762) Income (loss) before income taxes 57,068 (53,855) 44,845 71,352 Income tax benefit (provision) 11,868 6,561 (5,483) 1,639 Net income (loss) $ 68,936 $ (47,294) $ 39,362 $ 72,991 Net income (loss) per share, basic $ 0.56 $ (0.38) $ 0.31 $ 0.57 Net income (loss) per share, diluted $ 0.50 $ (0.38) $ 0.28 $ 0.50 Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Net revenues $ 100,150 $ 134,094 $ 180,057 $ 210,032 Cost of revenues 66,811 88,775 115,351 132,151 Gross profit 33,339 45,319 64,706 77,881 Operating expenses: Research and development 8,524 9,604 11,085 11,168 Sales and marketing 7,433 9,054 9,551 10,690 General and administrative 9,880 8,583 9,895 10,450 Restructuring charges 368 631 469 1,131 Total operating expenses 26,205 27,872 31,000 33,439 Income from operations 7,134 17,447 33,706 44,442 Other expense, net Interest income 211 593 894 815 Interest expense (3,751) (1,351) (2,286) (2,303) Other income (expense), net (481) (5,480) (943) 1,467 Total other expense, net (4,021) (6,238) (2,335) (21) Income before income taxes 3,113 11,209 31,371 44,421 Income tax benefit (provision) (348) (591) (272) 72,245 Net income $ 2,765 $ 10,618 $ 31,099 $ 116,666 Net income per share, basic $ 0.03 $ 0.09 $ 0.25 $ 0.95 Net income per diluted share $ 0.02 $ 0.08 $ 0.23 $ 0.88 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S.”), or GAAP. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, allowance for doubtful accounts, stock-based compensation, inventory valuation, accrued warranty obligations, fair value of debt derivatives and convertible notes, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, incremental borrowing rate for right-of-use assets and lease liability, probable loss recovery of tariff refunds, legal contingencies, and tax valuation allowance. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from management’s estimates using different assumptions or under different conditions. The worldwide spread of the COVID-19 virus has resulted in a global slowdown of economic activity which decreased demand for a broad variety of goods and services, including from our customers, while also disrupting sales channels and marketing activities for an unknown period of time and may continue to create significant uncertainty in future operational and financial performance. The Company expects this to have negative impact on its sales and its results of operations. In preparing the Company’s consolidated financial statements in accordance with GAAP, the Company is required to make estimates, assumptions and judgments that affect the amounts reported in its financial statements and the accompanying disclosures. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. |
Revenue Recognition, Cost of Revenues and Contract Liabilities | Revenue Recognition The Company generates revenue from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway, the cloud-based Enlighten monitoring service, and storage solutions to distributors, large installers, original equipment manufacturers (“OEMs”) and strategic partners. On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) No. 606, “Revenue Recognition” (“ASC 606” or “Topic 606”) and applied the modified retrospective method to all contracts that were not completed as of January 1, 2018. The most significant impacts upon adoption of Topic 606 were how the Company accounts for revenue related to its Envoy™ communications device and related Enphase Enlighten Software™, or Enlighten, service and the timing of when certain sales incentives are recognized. The full consideration for these products represents a single performance obligation and is deferred and recognized over the estimated service period. Revenues are recognized when control of the promised goods or services are transferred to the Company’s customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. The Company generates all of its revenues from contracts with its customers. A description of principal activities from which the Company generates revenues follows. • Products Delivered at a Point in Time. The Company sells its products to customers in accordance with the terms of the related customer contracts. The Company generates revenues from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway and Enlighten service, communications accessories and storage solutions to distributors, large installers, OEMs and strategic partners. Microinverter units, microinverter accessories, and storage solutions are delivered to customers at a point in time, and the Company recognizes revenue for these products when the Company transfers control of the product to the customer, which is generally upon shipment. • Products Delivered Over Time. The sale of an Envoy communications gateway includes the Company’s Enlighten cloud-based monitoring service. The full consideration for these products represents a single performance obligation and is deferred at the sale date and recognized over the estimated service period of 6 years. The Company also sells certain communication accessories that contain a service performance obligation to be delivered over time. The revenue from these products is recognized over the related service period, which is typically 5 or 12 years. When the Company sells a product with more than one performance obligation, such as the IQ Combiner which includes both hardware and Envoy, the total consideration is allocated to these performance obligations based on their relative standalone selling prices. The Company previously sold its Envoy communications device to certain customers under a long-term financing arrangement. Under this financing arrangement, the Company nets the unbilled receivables against deferred revenue. The Company records certain contra revenue promotions as variable consideration and recognizes these promotions at the time the related revenue is recorded. The Company records upfront contract acquisition costs, such as sales commissions, to be capitalized and amortized over the estimated life of the asset. For contracts that have a duration of less than one year, the Company follows the Topic 606 practical expedient and expenses these costs when incurred. Commissions related to the Company’s sale of monitoring hardware and service are capitalized and amortized over the period of the associated revenue, which is 6 years. See Note 3. “Revenue Recognition,” for additional information related to revenue recognition. Cost of Revenues The Company includes the following in cost of revenues: product costs, warranty, manufacturing personnel and logistics costs, freight costs, inventory write-downs, hosting services costs related to the Company’s Enlighten service offering, and depreciation and amortization of manufacturing test equipment. A description of principal activities from which the Company recognizes cost of revenue is as follows. • Products Delivered at a Point in Time. Cost of revenue from these products is recognized when the Company transfers control of the product to the customer, which is generally upon shipment. • Products Delivered Over Time. Cost of revenue from these products is recognized over the related service period. Contract Liabilities Contract liabilities are recorded as deferred revenue on the accompanying consolidated balance sheets and include payments received in advance of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents The Company considers all highly liquid investments, such as certificates of deposit and money market instruments with maturities of three months or less at the time of acquisition to be cash equivalents. For all periods presented, its cash balances consist of amounts held in non-interest-bearing and interest-bearing deposits and money market accounts. Restricted Cash Restricted cash represents cash held as certificate of deposit collateralized under a letter of credit issued to a customer. The letter of credit was required as a performance security in a face amount equal to the aggregate purchase price of the executed sales agreement. The letter of credit was issued per the terms of the executed sales agreement with a customer for safe harbor prepayment and the Company had collateralized a certificate of deposit under this letter of credit in an amount of $44.7 million, which was reflected as restricted cash on the Company’s consolidated balance sheet as of December 31, 2019. As of December 31, 2020, the Company does not have restricted cash balance. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of those instruments. Equity investments with readily determinable fair value are carried at fair value based on quoted market prices or estimated based on market conditions and risks existing at each balance sheet date. Equity investments without readily determinable fair value are measured at cost less impairment, and are adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. |
Accounts Receivables and Contract Assets | Accounts Receivables and Contract Assets The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include deferred product costs and commissions associated with the deferred revenue and will be amortized along with the associated revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated credit losses from doubtful accounts based on days past due, customer specific experience, collection history, the financial health of customers including from the impacts of the COVID-19 pandemic, among other factors. Accounts receivable are recorded net of allowance for doubtful accounts. |
Inventory | Inventory Inventory is valued at the lower of cost or market. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value ( i.e. , estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. The Company determines cost on a first-in first-out basis. Management assesses the valuation on a quarterly basis and writes down the value for any excess and obsolete inventory based upon expected demand, anticipated sales price, effect of new product introductions, product obsolescence, customer concentrations, product merchantability and other factors. Inventory write-downs are equal to the difference between the cost of inventories and market. |
Property and Equipment | Property and equipment are stated at cost less accumulated depreciation. Cost includes amounts paid to acquire or construct the asset as well as any expenditure that substantially adds to the value of or significantly extends the useful life of an existing asset. Repair and maintenance costs are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. Leasehold improvements are amortized over the shorter of the lease term or expected useful life of the improvements. |
Internal-Use Software | Internal-use software, whether purchased or developed, is capitalized at cost and amortized on a straight-line basis over its estimated useful life. Costs associated with internally developed software are expensed until the point at which the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they provide additional functionality. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of internal-use software requires judgment in determining when a project has reached the development stage and the period over which the Company expects to benefit from the use of that software. The Company capitalizes implementation costs related to cloud computing (i.e. hosting) arrangements that are accounted for as a service contract that meets the accounting requirement for capitalization as such implementation costs were incurred to develop or utilize internal-use software hosted by a third party vendor. The capitalized implementation costs are recorded as part of “Other assets” on the consolidated balance sheet and is amortized over the length of the service contract. |
Impairment of Long-Lived Assets | Property, plant and equipment, including internal-use software, and capitalized implementation costs related to cloud computing arrangements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. |
Business Combinations | Business Combinations Assets acquired and liabilities assumed as part of a business acquisition are generally recorded at their fair value at the date of acquisition. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Accounting for business acquisitions requires the Company to make judgments as to whether a purchase transaction is a multiple element contract, meaning that it includes other transaction components. This judgment and determination affect the amount of consideration paid that is allocable to assets and liabilities acquired in the business purchase transaction. |
Goodwill and Intangible Assets | Goodwill Goodwill results from the purchase consideration paid in excess of the fair value of the net assets recorded in connection with a business acquisition. Goodwill is not amortized but is assessed for potential impairment at least annually during the fourth quarter of each fiscal year or between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Goodwill is tested at the reporting unit level, which the Company has determined to be the same as the entity as a whole (entity level). The Company first performs qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. If, after assessing the qualitative factors, we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying value, an impairment analysis will be performed. Qualitative factors include industry and market consideration, overall financial performance, share price trends and market capitalization and Company-specific events. The Company determined, after performing a qualitative review of its reporting unit, that it is more likely than not that the fair value of our reporting unit exceeds its carrying value. Accordingly, there was no indication of impairment in the years ended 2020, 2019 and 2018 and no quantitative goodwill impairment test was performed. Intangible Assets Intangible assets include patents and other purchased intangible assets. Intangible assets with finite lives are amortized on a straight-line basis, with estimated useful lives ranging from 3 to 9 years. Indefinite-lived intangible assets are tested for impairment annually and are also tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Intangible assets with finite lives are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There was no impairment of intangible assets in any of the years presented. |
Warranty Obligations | Warranty Obligations Microinverters and Other Products Sold Through December 31, 2013 The Company’s warranty accrual provides for the replacement of microinverter units or other products that fail during the product’s warranty term (typically 15 years for first and second generation microinverters and up to 25 years for subsequent generation microinverters). On a quarterly basis, the Company employs a consistent, systematic and rational methodology to assess the adequacy of its warranty liability. This assessment includes updating all key estimates and assumptions for each generation of product, based on historical results, trends and the most current data available as of the filing date. The key estimates and assumptions used in the warranty liability are thoroughly reviewed by management on a quarterly basis. The key estimates used by the Company to estimate its warranty liability are: (1) the number of units expected to fail over time ( i.e., failure rate); (2) the number of failed units expected to result in warranty claims over time ( i.e., claim rate); and (3) the per unit cost of replacement units, including outbound shipping and limited labor costs, expected to be incurred to replace failed units over time ( i.e., replacement cost). Estimated Failure Rates — The Company’s Quality and Reliability department has primary responsibility to determine the estimated failure rates for each generation of microinverter. To establish initial failure rate estimates for each generation of microinverter, the Company’s quality engineers use a combination of industry standard Mean Time Between Failure (“MTBF”) estimates for individual components contained in its microinverters, third party data collected on similar equipment deployed in outdoor environments similar to those in which the Company’s microinverters are installed, and rigorous long term reliability and accelerated life cycle testing which simulates the service life of the microinverter in a short period of time. As units are deployed into operating environments, the Company continues to monitor product performance through its Enlighten monitoring platform. It typically takes three three Estimated Claim Rates — Warranty claim rate estimates are based upon observed historical trends and assumptions with respect to expected customer behavior over the warranty period. As the vast majority of the Company’s microinverters have been sold to end users for residential applications, the Company believes that warranty claim rates will be affected by changes over time in residential home ownership because the Company expects that subsequent homeowners are less likely to file claims than the homeowners who originally purchase the microinverters. Estimated Replacement Costs — Three factors are considered in the Company’s analysis of estimated replacement cost: (1) the estimated cost of replacement microinverters; (2) the estimated cost to ship replacement microinverters to end users; and (3) the estimated labor reimbursement expected to be paid to third party installers performing replacement services for the end user. Because the Company’s warranty provides for the replacement of defective microinverters over long periods of time (between 15 and 25 years, depending on the generation of product purchased), the estimated per unit cost of current and future product generations is considered in the estimated replacement cost. Estimated costs to ship replacement units are based on observable, market-based shipping costs paid by the Company to third party freight carriers. The Company has a separate program that allows third-party installers to claim fixed-dollar reimbursements for labor costs they incur to replace failed microinverter units for a limited time from the date of original installation. Included in the Company’s estimated replacement cost is an analysis of the number of fixed-dollar labor reimbursements expected to be claimed by third party installers over the limited offering period. In addition to the key estimates noted above, the Company also compares actual warranty results to expected results and evaluates any significant differences. Management may make additional adjustments to the warranty provision based on performance trends or other qualitative factors. If actual failure rates, claim rates, or replacement costs differ from the Company’s estimates in future periods, changes to these estimates may be required, resulting in increases or decreases in the Company’s warranty obligations. Such increases or decreases could be material. Fair Value Option for Microinverters and Other Products Sold Since January 1, 2014 The Company’s warranty obligations related to microinverters sold since January 1, 2014 provide the Company the right, but not the requirement, to assign its warranty obligations to a third-party. Under ASC 825, “Financial Instruments” (also referred to as “fair value option”), an entity may choose to elect the fair value option for such warranties at the time it first recognizes the eligible item. The Company made an irrevocable election to account for all eligible warranty obligations associated with microinverters sold since January 1, 2014 at fair value. This election was made to reflect the underlying economics of the time value of money for an obligation that will be settled over an extended period of up to 25 years. The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of failure rates, claim rates and replacement costs, the Company used certain inputs that are unobservable and significant to the overall fair value measurement. Such additional assumptions included compensation comprised of a profit element and risk premium required of a market participant to assume the obligation and a discount rate based on the Company’s credit-adjusted risk-free rate. See Note 9. “Fair Value Measurements,” for additional information. Warranty obligations initially recorded at fair value at the time of sale will be subsequently re-measured to fair value at each reporting date. In addition, the fair value of the liability will be accreted over the corresponding term of the warranty of up to 25 years using the interest method. Warranty for Other Products The Company offers a 5‑year warranty for its Envoy communications gateway and a 10‑year warranty on its AC Battery storage solution. The warranties provide the Company with the right, but not the obligation, to assign its warranty obligations to a third-party. As such, warranties for Envoy and AC Battery storage solution products are accounted for under the fair value method of accounting. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies and loss recoveries, such as legal proceedings and claims arising out of its business as well as tariff refunds. An accrual for a loss contingency or loss recovery is recognized when it is probable and the amount of loss or recovery can be reasonably estimated. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development expense consists primarily of product development personnel costs, including salaries and benefits, stock-based compensation, other professional costs and allocated facilities costs. |
Stock-Based Compensation | Stock-Based Compensation Share-based payments are required to be recognized in the Company’s consolidated statements of operations based on their fair values and the estimated number of shares expected to vest. The Company measures stock-based compensation expense for all share-based payment awards, including stock options made to employees and directors, based on the estimated fair values on the date of the grant. The fair value of stock options granted is estimated using the Black-Scholes option valuation model. The fair value of restricted stock units granted is determined based on the price of the Company’s common stock on the date of grant. The fair value of non-market‑based performance stock units granted is determined based on the date of grant or when achievement of performance is probable. The fair value of market‑based performance stock units granted is determined using a Monte‑Carlo model based on the date of grant or when achievement of performance is probable. |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include initial direct costs incurred and prepaid lease payments, minus any lease incentives. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. The Company combines the lease and non-lease components in determining the operating lease assets and liabilities. |
Foreign Currency Translation | Foreign Currency Translation The Company and most of its subsidiaries use their respective local currency as their functional currency. Accordingly, foreign currency assets and liabilities are translated using exchange rates in effect at the end of the period. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in accumulated other comprehensive income (loss) in stockholders' equity. Foreign subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities using exchange rates in effect at the end of the period. In addition, transactions that are denominated in non-functional currency are remeasured using exchange rates in effect at the end of the period. Exchange gains and losses arising from the remeasurement of monetary assets and liabilities are included in other income (expense), net in the consolidated statements of operations. Non-monetary assets and liabilities are carried at their historical values. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders’ equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments for all periods presented. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company assesses the realizability of the deferred tax assets to determine release of valuation allowance as necessary. In the event the Company determines that it is more likely than not that we would be able to realize deferred tax assets in the future in excess of our net recorded amount, an adjustment to the valuation allowance for the deferred tax asset would increase income in the period such determination was made. Likewise, should it be determined that additional amounts of the net deferred tax asset will not be realized in the future, an adjustment to increase the deferred tax asset valuation allowance will be charged to income in the period such determination is made. |
Recently Issued Accounting Pronouncements Not Yet Effective and Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” to reduce diversity in practice in accounting for the costs of implementing cloud computing arrangements that are service contracts. ASU 2018-15 allows entities to apply the guidance in the ASC 350-40, “Intangibles–Goodwill and Other–Internal-Use Software,” to determine which implementation costs are eligible to be capitalized as assets in a cloud computing arrangement that is considered a service contract. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively and are required to make certain disclosures in the interim and annual period of adoption. The Company adopted the new standard effective January 1, 2020 on a prospective basis and the adoption of this guidance did not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with a current expected credit loss (CECL) model which will result in earlier recognition of credit losses. On January 1, 2020, the Company on a prospective basis adopted Topic 326, the measurement of expected credit losses under the CECL model is applicable to financial assets measured at amortized cost, including accounts receivable. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurement | The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Earnings Per Share | Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares include Stock Options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes due 2023, the Notes due 2024, Warrants issued in conjunction with the Notes due 2024, and from May 20, 2020 to the end of the reporting period, the Notes due 2025 and Warrants issued in conjunction with the Notes due 2025. See Note 11. “Debt” for additional information. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method for stock options, RSUs, PSUs, Notes due 2024, warrants issued in conjunction with the Notes due 2024, Notes due 2025, warrants issued in conjunction with the Notes due 2025 and shares to be purchased under the ESPP, and by application of the if-converted method for the Notes due 2023. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income (loss) per share. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Activity in Allowance for Doubtful Accounts | The following table sets forth activities in the allowance for doubtful accounts for the periods indicated. December 31, 2020 2019 2018 (In thousands) Balance, at beginning of year $ 564 $ 2,138 $ 2,378 Net charges to expenses 425 217 711 Write-offs, net of recoveries (527) (1,791) (951) Balance, at end of year $ 462 $ 564 $ 2,138 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregation | Disaggregated revenue by primary geographical market and timing of revenue recognition for the Company’s single product line are as follows: Years Ended December 31, 2020 2019 (In thousands) Primary geographical markets: U.S. $ 637,879 $ 523,577 International 136,546 100,756 Total $ 774,425 $ 624,333 Timing of revenue recognition: Products delivered at a point in time $ 728,254 $ 584,556 Products and services delivered over time 46,171 39,777 Total $ 774,425 $ 624,333 |
Summary of Contract Assets and Contract Liabilities, and Changes in Balances from Contracts with Customers | Receivables, and contract assets and contract liabilities from contracts with customers are as follows: December 31, December 31, (In thousands) Receivables $ 182,165 $ 145,413 Short-term contract assets (Prepaid expenses and other assets) 17,879 15,055 Long-term contract assets (Other assets) 51,986 42,087 Short-term contract liabilities (Deferred revenues) 47,665 81,783 Long-term contract liabilities (Deferred revenues) 125,473 100,204 Significant changes in the balances of contract assets (prepaid expenses and other assets) during the period are as follows (in thousands): Contract Assets Balance on December 31, 2019 $ 57,142 Amount recognized (17,652) Increase 30,375 Balance as of December 31, 2020 $ 69,865 Significant changes in the balances of contract liabilities (deferred revenues) during the period are as follows (in thousands): Contract Liabilities Balance on December 31, 2019 $ 181,987 Revenue recognized (87,555) Increase due to billings 78,706 Balance as of December 31, 2020 $ 173,138 |
Summary of Estimated Revenue Expected to be Recognized in Future Periods | Estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period are as follows: December 31, (In thousands) Fiscal year: 2021 $ 47,665 2022 38,402 2023 32,569 2024 27,311 2025 20,291 Thereafter 6,900 Total $ 173,138 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consist of the following: December 31, December 31, (In thousands) Raw materials $ 10,140 $ 4,197 Finished goods 31,624 27,859 Total inventory $ 41,764 $ 32,056 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: Estimated Useful December 31, 2020 2019 (Years) (In thousands) Equipment and machinery 3-10 $ 63,411 $ 48,114 Furniture and fixtures 5-10 2,532 2,404 Computer equipment 3-5 2,972 1,698 Capitalized software costs 3-5 17,004 11,656 Leasehold improvements 3-10 9,021 8,713 Construction in process 9,747 8,446 Total 104,687 81,031 Less accumulated depreciation and amortization (61,702) (52,095) Property and equipment, net $ 42,985 $ 28,936 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The Company’s goodwill and purchased intangible assets as of December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 Gross Additions Accumulated Amortization Net Gross Accumulated Amortization Net (In thousands) Goodwill $ 24,783 $ — $ — $ 24,783 $ 24,783 $ — $ 24,783 Intangible assets: Other indefinite-lived intangibles 286 — — 286 286 — 286 Intangible assets with finite lives: Developed technology 13,100 — (5,276) 7,824 13,100 (3,093) 10,007 Customer relationships 23,100 3,321 (5,723) 20,698 23,100 (2,814) 20,286 Total purchased intangible assets $ 36,486 $ 3,321 $ (10,999) $ 28,808 $ 36,486 $ (5,907) $ 30,579 |
Schedule of Amortization Expense | Amortization expense related to finite-lived intangible assets are as follows: Years Ended December 31, 2020 2019 (In thousands) Developed technology, and patents and licensed technology $ 2,183 $ 2,184 Customer relationships 2,909 2,543 Total amortization expense $ 5,092 $ 4,727 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: December 31, December 31, (In thousands) Salaries, commissions, incentive compensation and benefits $ 6,634 $ 5,524 Customer rebates and sales incentives 36,622 24,198 Freight 10,300 4,908 Operating lease liabilities, current 4,542 3,170 Liability due to supply agreements 5,500 1,729 Other 12,944 7,563 Total accrued liabilities $ 76,542 $ 47,092 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Activities | The Company’s warranty activities were as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Warranty obligations, beginning of period $ 37,098 $ 31,294 $ 29,816 Accruals for warranties issued during period 7,021 5,244 3,040 Changes in estimates 9,954 8,591 6,515 Settlements (12,811) (10,881) (8,579) Increase due to accretion expense 3,255 2,326 1,989 Other 1,396 524 (1,487) Warranty obligations, end of period 45,913 37,098 31,294 Less: current portion (11,260) (10,078) (8,083) Noncurrent $ 34,653 $ 27,020 $ 23,211 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s warranty obligations that were measured at fair value on a recurring basis and its categorization within the fair value hierarchy. December 31, December 31, 2019 (In thousands) Level 3 Level 3 Liabilities: Warranty obligations Current $ 8,267 $ 6,794 Non-current 20,469 13,012 Total warranty obligations measured at fair value 28,736 19,806 Total liabilities measured at fair value $ 28,736 $ 19,806 The following table presents the fair value and the change in fair value for the Convertible notes hedge asset and Warrants liability: Convertible notes hedge Warrants liability (In thousands) Fair value as of March 9, 2020 $ 89,056 $ 71,552 Change in the fair value 28,052 24,799 Fair value as of May 20, 2020 $ 117,108 $ 96,351 |
Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated. Years Ended December 31, 2020 2019 2018 (In thousands) Balance at beginning of period $ 19,806 $ 11,757 $ 9,791 Accruals for warranties issued during period 7,021 5,244 3,040 Changes in estimates 5,039 6,167 2,455 Settlements (7,781) (6,212) (4,030) Increase due to accretion expense 3,255 2,326 1,989 Other 1,396 524 (1,488) Balance at end of period $ 28,736 $ 19,806 $ 11,757 |
Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 | As of December 31, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows: Percent Used (Weighted Average) Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input December 31, December 31, Warranty obligations for microinverters sold since January 1, 2014 Discounted cash flows Profit element and risk premium 15% 14% Credit-adjusted risk-free rate 13% 16% |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring expense consist of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Redundancy and employee severance and benefit arrangements $ — $ 1,575 $ 2,228 Asset impairments — 1,124 1,601 Consultants engaged in restructuring activities — — — Lease loss reserves (benefit) — (100) 300 Total restructuring charges $ — $ 2,599 $ 4,129 The following table presents the details of the Company’s restructuring charges under the 2018 Plan for the period indicated: Years Ended December 31, 2020 2019 2018 (In thousands) Redundancy and employee severance and benefit arrangements $ — $ 1,575 $ 2,228 Asset impairments — 1,124 1,636 Lease loss reserves (benefit) — (100) 340 Total restructuring charges $ — $ 2,599 $ 4,204 |
Schedule of Restructuring Reserve by Type of Cost | The following table provides information regarding changes in the Company’s 2018 Plan accrued restructuring balance for the periods indicated. Redundancy and Employee Severance and Benefits Lease Loss Reserves and Contractual Obligations Total (In thousands) Balance as of December 31, 2018 $ 904 $ 288 $ 1,192 Charges 2,699 — 2,699 Cash payments (1,610) — (1,610) Non-cash settlement and other (1,993) (288) (2,281) Balance as of December 31, 2019 $ — $ — $ — The following table provides information regarding changes in the Company’s 2016 Plan accrued restructuring balance for the periods indicated. Employee Severance and Benefits Asset Impairments Lease Loss Reserves and Contractual Obligations Total (In thousands) Balance as of December 31, 2018 — — $ 1,591 1,591 Other (1) — — (1,591) (1,591) Balance as of December 31, 2019 $ — $ — $ — $ — |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides information regarding the Company’s long-term debt. December 31, December 31, (In thousands) Convertible notes Notes due 2025 $ 320,000 $ — Less: unamortized discount and issuance costs (64,979) — Carrying amount of Notes due 2025 255,021 — Notes due 2024 88,140 132,000 Less: unamortized discount and issuance costs (19,119) (35,815) Carrying amount of Notes due 2024 69,021 96,185 Notes due 2023 5,000 5,000 Less: unamortized issuance costs (102) (143) Carrying amount of Notes due 2023 4,898 4,857 Sale of long-term financing receivable recorded as debt 1,925 4,501 Total carrying amount of debt 330,865 105,543 Less: current portion of convertible notes and long-term financing receivable recorded as debt (325,967) (2,884) Long-term debt $ 4,898 $ 102,659 The following table presents the total amount of interest cost recognized relating to the Notes due 2025 (in thousands): Year Ended December 31, 2020 Contractual interest expense $ 649 Amortization of debt discount 10,072 Amortization of debt issuance costs 1,229 Total interest cost recognized $ 11,950 The following table presents the total amount of interest cost recognized in the statement of operations relating to the Notes due 2024: Years Ended December 31, 2020 2019 (In thousands) Contractual interest expense $ 1,284 $ 759 Amortization of debt discount 6,325 3,492 Amortization of debt issuance costs 646 375 Total interest cost recognized $ 8,255 $ 4,626 The following table presents the amount of interest cost recognized relating to the contractual interest coupon and the amortization of debt issuance costs of the Notes due 2023. Years Ended December 31, 2020 2019 (In thousands) Contractual interest expense $ 200 $ 1,226 Amortization of debt issuance costs 40 245 Total interest costs recognized $ 240 $ 1,471 |
Schedule of Derivative Instruments | The following table presents the fair value and the change in fair value for the convertible note embedded derivative (in thousands): Convertible note embedded derivative liability Fair value as of March 9, 2020 $ 68,700 Change in the fair value 47,600 Fair value as of May 20, 2020 $ 116,300 |
Schedule of Fair Value Of Convertible Notes Hedge and Warrants Liability | The following table presents the Company’s warranty obligations that were measured at fair value on a recurring basis and its categorization within the fair value hierarchy. December 31, December 31, 2019 (In thousands) Level 3 Level 3 Liabilities: Warranty obligations Current $ 8,267 $ 6,794 Non-current 20,469 13,012 Total warranty obligations measured at fair value 28,736 19,806 Total liabilities measured at fair value $ 28,736 $ 19,806 The following table presents the fair value and the change in fair value for the Convertible notes hedge asset and Warrants liability: Convertible notes hedge Warrants liability (In thousands) Fair value as of March 9, 2020 $ 89,056 $ 71,552 Change in the fair value 28,052 24,799 Fair value as of May 20, 2020 $ 117,108 $ 96,351 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease | The components of lease expense are presented as follows: Years Ended December 31, 2020 2019 (In thousands) Operating lease costs $ 5,332 $ 4,041 The components of lease liabilities are presented as follows: December 31, December 31, (In thousands) Operating lease liabilities, current (Accrued liabilities) $ 4,542 $ 3,170 Operating lease liabilities, noncurrent (Other liabilities) 15,209 9,542 Total operating lease liabilities $ 19,751 $ 12,712 Supplemental lease information: Weighted average remaining lease term 6.4 years 5.5 years Weighted average discount rate 7.7% 8.6% Supplemental cash flow and other information related to operating leases, are as follows: Years Ended December 31, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,762 $ 3,636 Non-cash investing activities: Lease liabilities arising from obtaining right-of-use assets $ 10,625 $ 4,834 |
Schedule of Future Minimum Rental Payments for Operating Leases | Undiscounted cash flows of operating lease liabilities as of December 31, 2020 are as follows: Lease Amounts (In thousands) Year: 2021 $ 5,830 2022 4,677 2023 4,056 2024 3,069 2025 2,275 2026 and thereafter 3,968 Total lease payments 23,875 Less: imputed lease interest (4,124) Total lease liabilities $ 19,751 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Components of Total Stock-Based Compensation Expense | The following table summarizes the components of total stock-based compensation expense included in the consolidated statements of operations for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands) Cost of revenues $ 3,759 $ 1,650 $ 1,071 Research and development 12,701 4,897 2,940 Sales and marketing 11,548 5,678 3,074 General and administrative 14,495 7,216 4,347 Restructuring — 735 — Total $ 42,503 $ 20,176 $ 11,432 Income tax benefit included in the provision for incomes taxes $ 61,389 $ 8,185 $ — |
Summary of Stock-Based Compensation Associated with Each Type of Award | The following table summarizes the various types of stock-based compensation expense for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands) Stock options, RSUs, and PSUs $ 39,841 $ 19,216 $ 10,691 Employee stock purchase plan 2,662 960 741 Total $ 42,503 $ 20,176 $ 11,432 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the weighted-average grant date fair value of options granted for the periods presented and the assumptions used to estimate those values using a Black-Scholes option pricing model. Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 38.45 $ 9.16 $ 2.83 Expected term (in years) 3.8 3.8 4.0 Expected volatility 86.4% 89.1% 88.5% Annual risk-free rate of return 0.1% 2.1% 2.6% Dividend yield —% —% —% |
Share-based Compensation, Performance Shares Award Outstanding Activity | The following is a summary of PSU activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 — Granted 1,477 $ 4.65 Vested — Canceled (147) Outstanding at December 31, 2018 1,330 $ 4.66 Granted 1,052 9.48 Vested (1,063) 4.62 10,818 Canceled (364) 5.16 Outstanding at December 31, 2019 955 $ 9.83 Granted 989 31.12 Vested (1,450) 10.20 $ 52,144 Canceled — — Outstanding at December 31, 2020 494 $ 51.10 0.2 $ 86,668 (1) The intrinsic value of PSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. |
Summary of Stock Option Activity | The following is a summary of stock option activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 8,426 $ 1.77 Granted 213 4.43 Exercised (1,346) 1.75 $ 5,096 Canceled (521) 2.94 Outstanding at December 31, 2018 6,772 $ 1.76 Granted 43 14.58 Exercised (2,616) 1.22 $ 31,093 Canceled (102) 4.07 Outstanding at December 31, 2019 4,097 $ 2.18 Granted 11 64.17 Exercised (1,494) 2.74 $ 114,089 Canceled (82) 6.94 Outstanding at December 31, 2020 2,532 $ 1.96 3.7 $ 439,268 Vested and expected to vest at December 31, 2020 2,532 $ 1.96 3.7 $ 439,268 Exercisable at December 31, 2020 2,089 $ 1.95 3.7 $ 362,526 (1) The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise. The intrinsic value of options outstanding, vested and expected to vest, and exercisable as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. |
Summary of Stock Option Outstanding | The following table summarizes information about stock options outstanding at December 31, 2020. Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- (In thousands) (Years) (In thousands) $0.70 —– $1.11 555 4.2 $ 0.85 448 $ 0.83 $1.29 —– $1.29 1,000 3.7 1.29 813 1.29 $1.31 —– $1.31 670 3.3 1.31 587 1.31 $1.37 —– $14.58 296 3.6 5.56 235 6.37 $64.17 —– $64.17 11 6.3 64.17 6 64.17 Total 2,532 3.7 $ 1.96 2,089 $ 1.95 |
Summary of Restricted Stock Unit Activity | The following is a summary of RSU activity. Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2017 3,505 $ 2.03 Granted 3,152 4.45 Vested (1,399) 2.75 $ 6,657 Canceled (906) 2.17 Outstanding at December 31, 2018 4,352 $ 3.52 Granted 2,112 11.50 Vested (1,707) 3.87 $ 27,156 Canceled (494) 4.81 Outstanding at December 31, 2019 4,263 $ 7.19 Granted 1,550 55.66 Vested (2,085) 7.26 $ 125,578 Canceled (140) 19.47 Outstanding at December 31, 2020 3,588 $ 27.61 1.08 $ 629,633 Expected to vest at December 31, 2020 3,588 $ 27.61 1.08 $ 629,633 (1) The intrinsic value of RSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of December 31, 2020 is based on the closing price of the last trading day during the period ended December 31, 2020. The Company’s stock fair value used in this computation was $175.47 per share. |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | A summary of ESPP activity for the years presented is as follows: (in thousands, except per share data): Years Ended December 31, 2020 2019 2018 Proceeds from common stock issued under ESPP $ 4,304 $ 1,692 $ 397 Shares of common stock issued 347 315 439 Weighted-average price per share $ 12.41 $ 5.37 $ 0.90 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes | The domestic and foreign components of income (loss) before income taxes consisted of the following: Years Ended December 31, 2020 2019 2018 (In thousands) United States $ 112,727 $ 85,520 $ (14,322) Foreign 6,683 4,594 4,093 Income (loss) before income taxes $ 119,410 $ 90,114 $ (10,229) |
Schedule of Provision for Income Taxes | The income taxes (benefit) provision for the years presented is as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Current: Federal $ — $ — $ — State 636 327 42 Foreign 1,896 1,589 1,233 2,532 1,916 1,275 Deferred: Federal (13,445) (56,959) (35) State (3,672) (17,458) (21) Foreign — 1,467 179 (17,117) (72,950) 123 Income taxes (benefit) provision $ (14,585) $ (71,034) $ 1,398 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax (benefit) provision and the amount computed by applying the statutory federal income tax rate of 21% to income (loss) before income taxes for the years presented is as follows: Years Ended December 31, 2020 2019 2018 (In thousands) Income tax (benefit) provision at statutory federal rate $ 25,076 $ 18,929 $ (2,148) State taxes, net of federal benefit (3,098) (17,197) 17 Change in valuation allowance — (71,300) 8,198 Foreign tax rate and tax law differential 611 1,206 313 Tax credits (5,835) (1,803) (378) Stock-based compensation (50,818) (8,072) (953) Other permanent items (253) 31 235 Other nondeductible/nontaxable items 1,525 2,765 (5,112) Uncertain tax positions 1,530 504 107 GILTI — 1,086 917 Section 162(m) 11,469 2,817 202 Warrant mark-to-mark adjustment 5,208 — — Income tax (benefit) provision $ (14,585) $ (71,034) $ 1,398 |
Schedule of Deferred Tax Assets and Liabilities | A summary of significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 is as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Allowances and reserves $ 13,146 $ 10,726 Net operating loss and tax credit carryforwards 53,116 54,369 Stock-based compensation 4,598 3,753 Deferred revenue 20,765 16,736 Fixed assets and intangibles 8,706 2,720 Sec. 163(j) interest carryforward 4,401 — Other 7,007 1,109 Subtotal 111,739 89,413 Total deferred tax assets 111,739 89,413 Deferred tax liabilities: Goodwill (1,719) (1,368) Unremitted foreign earnings (7) (5) Deferred cost of goods sold (17,545) (14,374) Total deferred tax liabilities (19,271) (15,747) Net deferred tax asset $ 92,468 $ 73,666 |
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | A tabular reconciliation of the total amounts of unrecognized tax benefits for the years presented is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Unrecognized tax benefits—at beginning of year $ 6,589 $ 6,325 $ 6,106 Decreases in balances related to tax positions taken in prior years — (370) — Increases in balances related to tax positions taken in current year 2,006 771 329 Lapses in statutes of limitations (174) (137) (110) Unrecognized tax benefits—at end of year $ 8,421 $ 6,589 $ 6,325 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table presents the computation of basic and diluted net income (loss) per share for the periods presented. Years Ended December 31, 2020 2019 2018 (In thousands, except per share data) Numerator: Net income (loss) $ 133,995 $ 161,148 $ (11,627) Notes due 2023 interest and financing costs, net 177 1,088 — Adjusted net income (loss) $ 134,172 $ 162,236 $ (11,627) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 125,561 116,713 99,619 Shares used in diluted per share amounts: Weighted average common shares outstanding 125,561 116,713 99,619 Effect of dilutive securities: Employee stock-based awards 6,997 8,964 — Warrants (issued in conjunction with Notes due 2024) 4,011 — — Notes due 2024 4,449 451 — Notes due 2023 900 5,516 — Weighted average common shares outstanding for diluted calculation 141,918 131,644 99,619 Basic and diluted net income (loss) per share Net income (loss) per share, basic $ 1.07 $ 1.38 $ (0.12) Net income (loss) per share, diluted $ 0.95 $ 1.23 $ (0.12) |
Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share | The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive. Years Ended December 31, 2020 2019 2018 (In thousands) Employee stock options 7 27 7,710 RSUs and PSUs 36 158 5,273 Warrants (issued in conjunction with Notes due 2024) — 300 — Warrants (issued in conjunction with Notes due 2025) 1,254 — — Notes due 2025 197 — Notes due 2023 — — 11,701 Total 1,494 485 24,684 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Net Revenues and Long-Lived Assets by Geographic Region | The following table presents long-lived assets by geographic region as of and for the periods presented (in thousands): Long-Lived Assets December 31, 2020 2019 (In thousands) United States $ 19,870 $ 16,754 China 9,948 4,635 Mexico 4,808 3,510 India 4,371 1,315 New Zealand 3,837 2,638 Other 151 84 Total $ 42,985 $ 28,936 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of consideration transferred for business acquisition | The acquisition date fair value of the consideration transferred was approximately $57.3 million, which consisted of the following (in thousands): Cash consideration $ 25,000 Common stock issued 32,319 Total $ 57,319 |
Summary of fair values of assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 36,200 Goodwill 21,119 Net assets acquired $ 57,319 The table below shows estimated fair values of the assets acquired funded by cash and issuance of common stock at the acquisition date: Cash Purchase Price Issuance of Common Stock Total Consideration % of Total Consideration (In thousands) Developed technology and goodwill $ 15,000 $ 19,219 $ 34,219 60 % Customer relationship 10,000 13,100 23,100 40 % Total consideration $ 25,000 $ 32,319 $ 57,319 100 % |
Summary of identifiable intangible assets acquired | The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: Preliminary Fair Value Useful Life (In thousands) (Years) Developed technology $ 13,100 6 Customer relationship 23,100 9 Total identifiable intangible assets $ 36,200 |
SELECTED UNAUDITED QUARTERLY _2
SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2020 and 2019 (in thousands, except per share data): Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Net revenues $ 205,545 $ 125,538 $ 178,503 $ 264,839 Cost of revenues 124,870 77,151 83,522 142,901 Gross profit 80,675 48,387 94,981 121,938 Operating expenses: Research and development 11,876 13,192 15,052 15,801 Sales and marketing 11,772 12,371 14,645 14,139 General and administrative 12,315 11,970 13,525 12,884 Total operating expenses 35,963 37,533 43,222 42,824 Income from operations 44,712 10,854 51,759 79,114 Other income (expense), net Interest Income 1,091 282 110 673 Interest expense (3,155) (5,952) (5,993) (5,901) Other income (expense) (924) 653 (1,031) (2,534) Change in fair value of derivatives 15,344 (59,692) — — Total other income (expense), net 12,356 (64,709) (6,914) (7,762) Income (loss) before income taxes 57,068 (53,855) 44,845 71,352 Income tax benefit (provision) 11,868 6,561 (5,483) 1,639 Net income (loss) $ 68,936 $ (47,294) $ 39,362 $ 72,991 Net income (loss) per share, basic $ 0.56 $ (0.38) $ 0.31 $ 0.57 Net income (loss) per share, diluted $ 0.50 $ (0.38) $ 0.28 $ 0.50 Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Net revenues $ 100,150 $ 134,094 $ 180,057 $ 210,032 Cost of revenues 66,811 88,775 115,351 132,151 Gross profit 33,339 45,319 64,706 77,881 Operating expenses: Research and development 8,524 9,604 11,085 11,168 Sales and marketing 7,433 9,054 9,551 10,690 General and administrative 9,880 8,583 9,895 10,450 Restructuring charges 368 631 469 1,131 Total operating expenses 26,205 27,872 31,000 33,439 Income from operations 7,134 17,447 33,706 44,442 Other expense, net Interest income 211 593 894 815 Interest expense (3,751) (1,351) (2,286) (2,303) Other income (expense), net (481) (5,480) (943) 1,467 Total other expense, net (4,021) (6,238) (2,335) (21) Income before income taxes 3,113 11,209 31,371 44,421 Income tax benefit (provision) (348) (591) (272) 72,245 Net income $ 2,765 $ 10,618 $ 31,099 $ 116,666 Net income per share, basic $ 0.03 $ 0.09 $ 0.25 $ 0.95 Net income per diluted share $ 0.02 $ 0.08 $ 0.23 $ 0.88 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 09, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Restricted cash | $ 0 | $ 44,700,000 | $ 0 | ||
Asset impairment | 0 | 1,100,000 | 1,600,000 | ||
Goodwill, impairment loss | 0 | 0 | 0 | ||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | ||
Product warranty, term | 25 years | ||||
Convertible Senior Notes Due 2025 | Convertible Notes | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Debt instrument face amount | $ 320,000,000 | $ 320,000,000 | |||
Interest rate | 0.25% | 0.25% | |||
Monitoring Hardware And Service | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Capitalized contract cost, amortization period | 6 years | ||||
First and Second Generation | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Product warranty, term | 15 years | ||||
Third and Fourth Generation | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Product warranty, term | 25 years | ||||
Envoy Communications Gateway | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Product warranty, term | 5 years | ||||
AC Battery Storage Solution | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Product warranty, term | 10 years | ||||
Minimum | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Intangible assets, estimated useful life | 3 years | ||||
Period failure rate measurement lags product sale | 3 months | ||||
Minimum | Communication Accessories | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Service period | 5 years | ||||
Maximum | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Intangible assets, estimated useful life | 9 years | ||||
Period failure rate measurement lags product sale | 9 months | ||||
Maximum | Communication Accessories | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Service period | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, at beginning of year | $ 564 | $ 2,138 | $ 2,378 |
Net charges to expenses | 425 | 217 | 711 |
Write-offs, net of recoveries | (527) | (1,791) | (951) |
Balance, at end of year | $ 462 | $ 564 | $ 2,138 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Disaggregated Revenue by Primary Geographical Market and Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | $ 264,839 | $ 178,503 | $ 125,538 | $ 205,545 | $ 210,032 | $ 180,057 | $ 134,094 | $ 100,150 | $ 774,425 | $ 624,333 | $ 316,159 |
Products delivered at a point in time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 728,254 | 584,556 | |||||||||
Products and services delivered over time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 46,171 | 39,777 | |||||||||
U.S. | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 637,879 | 523,577 | |||||||||
International | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | $ 136,546 | $ 100,756 |
REVENUE RECOGNITION - Summary_2
REVENUE RECOGNITION - Summary of Contract Assets and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 182,165 | $ 145,413 |
Short-term contract assets (Prepaid expenses and other assets) | 17,879 | 15,055 |
Long-term contract assets (Other assets) | 51,986 | 42,087 |
Short-term contract liabilities (Deferred revenues) | 47,665 | 81,783 |
Long-term contract liabilities (Deferred revenues) | $ 125,473 | $ 100,204 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract asset impairment charges | $ 0 |
REVENUE RECOGNITION - Summary_3
REVENUE RECOGNITION - Summary of Significant Changes in the Balances of Contract Liabilities and Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Contract Assets | |
Balance, beginning of period | $ 57,142 |
Revenue recognized | (17,652) |
Increase | 30,375 |
Balance, end of period | 69,865 |
Contract Liabilities | |
Balance, beginning of period | 181,987 |
Revenue recognized | (87,555) |
Increase due to billings | 78,706 |
Balance, end of period | $ 173,138 |
REVENUE RECOGNITION - Summary_4
REVENUE RECOGNITION - Summary of Estimated Revenue Expected to be Recognized in Future Periods (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 173,138 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 47,665 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 38,402 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 32,569 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 27,311 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 20,291 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Total estimated revenue expected to be recognized in future periods | $ 6,900 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods, expected timing |
INVENTORY - Summary of Inventor
INVENTORY - Summary of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 10,140 | $ 4,197 |
Finished goods | 31,624 | 27,859 |
Total inventory | $ 41,764 | $ 32,056 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 104,687 | $ 81,031 |
Less accumulated depreciation and amortization | (61,702) | (52,095) |
Property and equipment, net | $ 42,985 | 28,936 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Equipment and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 63,411 | 48,114 |
Equipment and machinery | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Equipment and machinery | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,532 | 2,404 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,972 | 1,698 |
Computer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Computer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 17,004 | 11,656 |
Capitalized software costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Capitalized software costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,021 | 8,713 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,747 | $ 8,446 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 9.7 | $ 7.3 | $ 8.3 |
Unamortized capitalized software costs | $ 4.8 | $ 0.8 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Aug. 09, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Gross | $ 24,783 | $ 24,783 | |
Goodwill, Net | 24,783 | 24,783 | |
Intangible assets with finite lives: | |||
Other indefinite-lived intangibles | 286 | 286 | |
Other indefinite-lived intangibles, Additions | 0 | ||
Accumulated Amortization | (10,999) | (5,907) | |
Total purchased intangible assets, Gross | 36,486 | 36,486 | |
Total purchased intangible assets, Gross, Additions | 3,321 | ||
Total purchased intangible assets, Net | 28,808 | 30,579 | |
Developed technology | |||
Intangible assets with finite lives: | |||
Gross | 13,100 | 13,100 | |
Additions | 0 | ||
Accumulated Amortization | (5,276) | (3,093) | |
Net | 7,824 | 10,007 | |
Customer relationship | |||
Intangible assets with finite lives: | |||
Gross | 23,100 | 23,100 | $ 23,100 |
Additions | 3,321 | ||
Accumulated Amortization | (5,723) | (2,814) | |
Net | $ 20,698 | $ 20,286 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands | Aug. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 5,092 | $ 4,727 | ||
Developed technology, and patents and licensed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2,183 | 2,184 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2,909 | 2,543 | ||
Intangible assets | $ 23,100 | $ 23,100 | 23,100 | $ 23,100 |
Additions | $ 3,321 | |||
SunPower’s | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period for acquired intangible assets | 15 years | |||
Agreement for exclusive supplier rights, period | 5 years | 3 months | ||
SunPower’s | Developed technology, and patents and licensed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period for acquired intangible assets | 6 years | |||
SunPower’s | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period for acquired intangible assets | 9 years |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Salaries, commissions, incentive compensation and benefits | $ 6,634 | $ 5,524 |
Customer rebates and sales incentives | 36,622 | 24,198 |
Freight | 10,300 | 4,908 |
Operating lease liabilities, current | 4,542 | 3,170 |
Liability due to supply agreements | 5,500 | 1,729 |
Other | 12,944 | 7,563 |
Total accrued liabilities | $ 76,542 | $ 47,092 |
WARRANTY OBLIGATIONS - Summary
WARRANTY OBLIGATIONS - Summary of Warranty Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the Company's product warranty liability | |||
Warranty obligations, beginning of period | $ 37,098 | $ 31,294 | $ 29,816 |
Accruals for warranties issued during period | 7,021 | 5,244 | 3,040 |
Changes in estimates | 9,954 | 8,591 | 6,515 |
Settlements | (12,811) | (10,881) | (8,579) |
Increase due to accretion expense | 3,255 | 2,326 | 1,989 |
Other | 1,396 | 524 | (1,487) |
Warranty obligations, end of period | 45,913 | 37,098 | 31,294 |
Less: current portion | (11,260) | (10,078) | (8,083) |
Noncurrent | $ 34,653 | $ 27,020 | $ 23,211 |
WARRANTY OBLIGATIONS - Narrativ
WARRANTY OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | |||
Additional warranty expense | $ 9,954 | $ 8,591 | $ 6,515 |
Failure Rates | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | 8,800 | ||
Failure Rates | Second And Third Generations | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | 3,100 | 3,300 | |
Increased Tariffs And Labor Reimbursement Costs | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | $ 1,200 | ||
Increased U.S. Tariffs For Products Manufactured In China | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | $ 5,500 | ||
Backwards Compatibility Cables | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | 900 | ||
Claim Rates | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | 2,100 | ||
Labor Reimbursement Costs | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | 200 | ||
Discount Rate | |||
Product Warranty Liability [Line Items] | |||
Additional warranty expense | $ 1,500 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | May 20, 2020 | Mar. 31, 2020 | Mar. 09, 2020 | Jun. 05, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrants obligations measured at fair value | $ 96,400,000 | ||||
Investment without readily determinable fair value | $ 5,000,000 | ||||
Increase in liability as a result of increasing the profit element and risk premium input by 100 basis points | 200,000 | ||||
Decrease in liability as a result of decreasing the profit element and risk premium input by 100 basis points | 200,000 | ||||
Decrease in liability as a result of increasing the discount rate by 100 basis points | 1,400,000 | ||||
Increase in liability as a result of decreasing the discount rate by 100 basis points | 1,600,000 | ||||
Convertible Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Convertible notes embedded derivative | 117,100,000 | ||||
Convertible Notes | Convertible Senior Notes Due 2025 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument face amount | $ 320,000,000 | $ 320,000,000 | |||
Interest rate | 0.25% | 0.25% | |||
Convertible notes embedded derivative | 116,300,000 | $ 68,700,000 | |||
Warrants obligations measured at fair value | $ 96,351,000 | $ 71,552,000 | |||
Convertible Notes | Convertible Senior Notes Due 2024 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument face amount | 88,100,000 | $ 132,000,000 | |||
Interest rate | 1.00% | ||||
Level 1 | Money market funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | 654,700,000 | ||||
Level 2 | Recurring | Convertible Notes | Convertible Senior Notes Due 2025 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notes payable fair value | 725,500,000 | ||||
Level 2 | Recurring | Convertible Notes | Convertible Senior Notes Due 2024 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notes payable fair value | $ 747,100,000 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||||
Warranty obligations, current | $ 11,260 | $ 10,078 | $ 8,083 | |
Warranty obligations, non-current | 34,653 | 27,020 | 23,211 | |
Total warranty obligations measured at fair value | 45,913 | 37,098 | $ 31,294 | $ 29,816 |
Recurring | Level 3 | ||||
Liabilities: | ||||
Warranty obligations, current | 8,267 | 6,794 | ||
Warranty obligations, non-current | 20,469 | 13,012 | ||
Total warranty obligations measured at fair value | 28,736 | 19,806 | ||
Total liabilities measured at fair value | $ 28,736 | $ 19,806 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Level 3 - Recurring - Total warranty obligations measured at fair value - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 19,806 | $ 11,757 | $ 9,791 |
Accruals for warranties issued during period | 7,021 | 5,244 | 3,040 |
Changes in estimates | 5,039 | 6,167 | 2,455 |
Settlements | (7,781) | (6,212) | (4,030) |
Increase due to accretion expense | 3,255 | 2,326 | 1,989 |
Other | 1,396 | 524 | (1,488) |
Balance at end of period | $ 28,736 | $ 19,806 | $ 11,757 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 (Details) - Recurring - Level 3 - Warranty obligations for microinverters sold since January 1, 2014 | Dec. 31, 2020 | Dec. 31, 2019 |
Profit element and risk premium | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warranty obligations, measurement input | 15.00% | 14.00% |
Credit-adjusted risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warranty obligations, measurement input | 13.00% | 16.00% |
RESTRUCTURING - Summary of Rest
RESTRUCTURING - Summary of Restructuring Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 1,131,000 | $ 469,000 | $ 631,000 | $ 368,000 | $ 0 | $ 2,599,000 | $ 4,129,000 |
Asset impairments | 0 | 1,100,000 | 1,600,000 | ||||
Restructuring Plan 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | 2,599,000 | 4,204,000 | ||||
Redundancy and employee severance and benefit arrangements | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | 1,575,000 | 2,228,000 | ||||
Redundancy and employee severance and benefit arrangements | Restructuring Plan 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | 1,575,000 | 2,228,000 | ||||
Asset impairments | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 0 | 1,124,000 | 1,601,000 | ||||
Asset impairments | Restructuring Plan 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 0 | 1,124,000 | 1,636,000 | ||||
Consultants engaged in restructuring activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve, accrual adjustment | 0 | 0 | 0 | ||||
Lease loss reserves (benefit) | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve, accrual adjustment | 0 | (100,000) | 300,000 | ||||
Lease loss reserves (benefit) | Restructuring Plan 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve, accrual adjustment | $ 0 | $ (100,000) | $ 340,000 |
RESTRUCTURING - Rollforward (De
RESTRUCTURING - Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Restructuring Plan 2018 | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | $ 1,192 |
Charges | 2,699 |
Cash payments | (1,610) |
Non-cash settlement and other | (2,281) |
Restructuring reserve, ending | 0 |
Restructuring Plan 2018 | Redundancy and Employee Severance and Benefits | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 904 |
Charges | 2,699 |
Cash payments | (1,610) |
Non-cash settlement and other | (1,993) |
Restructuring reserve, ending | 0 |
Restructuring Plan 2018 | Lease Loss Reserves and Contractual Obligations | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 288 |
Charges | 0 |
Cash payments | 0 |
Non-cash settlement and other | (288) |
Restructuring reserve, ending | 0 |
Restructuring Plan 2016 | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 1,591 |
Non-cash settlement and other | (1,591) |
Restructuring reserve, ending | 0 |
Restructuring Plan 2016 | Redundancy and Employee Severance and Benefits | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 0 |
Non-cash settlement and other | 0 |
Restructuring reserve, ending | 0 |
Restructuring Plan 2016 | Asset impairments | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 0 |
Non-cash settlement and other | 0 |
Restructuring reserve, ending | 0 |
Restructuring Plan 2016 | Lease Loss Reserves and Contractual Obligations | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 1,591 |
Non-cash settlement and other | (1,591) |
Restructuring reserve, ending | $ 0 |
DEBT - Long-term debt (Details)
DEBT - Long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total carrying amount of debt | $ 330,865 | $ 105,543 |
Less: current portion of convertible notes and long-term financing receivable recorded as debt | (325,967) | (2,884) |
Long-term debt | 4,898 | 102,659 |
Convertible Notes | Convertible Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 320,000 | 0 |
Less unamortized discount and issuance costs | (64,979) | 0 |
Total carrying amount of debt | 255,021 | 0 |
Less: current portion of convertible notes and long-term financing receivable recorded as debt | (255,000) | |
Convertible Notes | Convertible Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 88,140 | 132,000 |
Less unamortized discount and issuance costs | (19,119) | (35,815) |
Total carrying amount of debt | 69,021 | 96,185 |
Less: current portion of convertible notes and long-term financing receivable recorded as debt | (69,000) | |
Convertible Notes | Convertible Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 5,000 | 5,000 |
Less unamortized discount and issuance costs | (102) | (143) |
Total carrying amount of debt | 4,898 | 4,857 |
Financing Receivable | Financing Receivable Recorded as Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,925 | $ 4,501 |
DEBT - Convertible Senior Notes
DEBT - Convertible Senior Notes due in 2025 Narrative (Details) | Mar. 09, 2020USD ($)trading_day$ / sharesshares | Jun. 05, 2019USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | May 20, 2020USD ($)$ / sharesshares | May 19, 2020shares | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt, current | $ 325,967,000 | $ 2,884,000 | ||||||
Common stock, par value (in usd per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Common stock, shares authorized (in shares) | shares | 200,000,000 | 150,000,000 | 200,000,000 | 150,000,000 | ||||
Deferred tax assets, net | $ 92,904,000 | $ 74,531,000 | ||||||
Payment for bonds hedge | 89,056,000 | 36,313,000 | $ 0 | |||||
Proceeds from sale of warrants | $ 29,800,000 | 71,552,000 | $ 29,818,000 | $ 0 | ||||
Warrants obligations measured at fair value | $ 96,400,000 | |||||||
Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible notes embedded derivative | 117,100,000 | |||||||
Convertible Notes | Convertible Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 320,000,000 | $ 320,000,000 | ||||||
Interest rate | 0.25% | 0.25% | ||||||
Conversion ratio | 0.0122637 | |||||||
Debt conversion price (in USD per share) | $ / shares | $ 81.54 | |||||||
Proceeds from convertible debt | $ 313,000,000 | |||||||
Debt, current | 255,000,000 | |||||||
Convertible notes embedded derivative | 68,700,000 | 116,300,000 | ||||||
Embedded derivative, host contract | 251,300,000 | |||||||
Deferred tax assets, net | $ 200,000 | |||||||
Debt issuance costs | $ 7,600,000 | |||||||
Effective percentage rate | 5.18% | |||||||
Unamortized discount | $ 58,600,000 | |||||||
Remaining discount amortization period | 4 years 2 months 12 days | |||||||
Conversion shares (in shares) | shares | 3,900,000 | |||||||
Payment for bonds hedge | $ 89,100,000 | |||||||
Warrants issued, strike price (in USD per share) | $ / shares | $ 106.94 | |||||||
Proceeds from sale of warrants | $ 71,600,000 | |||||||
Warrants obligations measured at fair value | $ 71,552,000 | $ 96,351,000 | ||||||
Period One | Convertible Notes | Convertible Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of threshold trading days | trading_day | 20 | |||||||
Number of consecutive trading days | trading_day | 30 | |||||||
Threshold percentage | 130.00% | |||||||
Stock trigger price (in USD per share) | $ / shares | $ 106 | |||||||
Period Two | Convertible Notes | Convertible Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of consecutive trading days | trading_day | 5 | |||||||
Threshold percentage | 100.00% | |||||||
Measurement period percentage of stock price trigger | 98.00% |
DEBT - Convertible Note Embedde
DEBT - Convertible Note Embedded Derivative (Details) $ in Thousands | 2 Months Ended |
May 20, 2020USD ($) | |
Debt Instrument [Line Items] | |
Embedded derivative, change in the fair value | $ 47,600 |
Convertible Notes | |
Debt Instrument [Line Items] | |
Embedded derivative, ending balance | 117,100 |
Convertible Notes | Convertible Senior Notes Due 2025 | |
Debt Instrument [Line Items] | |
Embedded derivative, beginning balance | 68,700 |
Embedded derivative, ending balance | $ 116,300 |
DEBT - Schedule of Convertible
DEBT - Schedule of Convertible Senior Notes due in 2025 (Details) - Convertible Notes - Convertible Senior Notes Due 2025 $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 649 |
Amortization of debt discount | 10,072 |
Amortization of debt issuance costs | 1,229 |
Total interest cost recognized | $ 11,950 |
DEBT - Convertible Notes Hedge
DEBT - Convertible Notes Hedge and Warrant Liability (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 20, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||||
Convertible notes hedge, change in the fair value | $ 0 | $ 0 | $ (59,692) | $ 15,344 | $ (44,348) | $ 0 | $ 0 | |
Warrants liability, ending balance | $ 96,400 | |||||||
Convertible Notes | Convertible Senior Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible notes hedge, beginning balance | 89,056 | |||||||
Convertible notes hedge, change in the fair value | 28,052 | |||||||
Convertible notes hedge, ending balance | 117,108 | |||||||
Warrants liability, beginning balance | 71,552 | |||||||
Warrants liability, change in fair value | 24,799 | |||||||
Warrants liability, ending balance | $ 96,351 |
DEBT - Convertible Senior Not_2
DEBT - Convertible Senior Notes due 2024 Narrative (Details) $ / shares in Units, shares in Millions | Mar. 09, 2020trading_day | Jun. 05, 2019USD ($)trading_day$ / sharesshares | Feb. 12, 2021USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)trading_day$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Debt, current | $ 325,967,000 | $ 325,967,000 | $ 2,884,000 | ||||
Deferred tax assets, net | 92,904,000 | 92,904,000 | 74,531,000 | ||||
Write off of debt discount | 8,900,000 | ||||||
Write off of deferred debt issuance cost | 800,000 | ||||||
Loss on extinguishment of debt | 0 | 2,152,000 | $ 0 | ||||
Payment for bonds hedge | 89,056,000 | 36,313,000 | 0 | ||||
Proceeds from sale of warrants | $ 29,800,000 | 71,552,000 | 29,818,000 | 0 | |||
Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | 3,037,000 | 0 | $ 0 | ||||
Convertible Notes | Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 132,000,000 | 88,100,000 | 88,100,000 | ||||
Interest rate | 1.00% | ||||||
Debt conversion price (in USD per share) | $ / shares | $ 20.5010 | ||||||
Proceeds from convertible debt | $ 128,000,000 | ||||||
Conversion ratio | 0.0487781 | ||||||
Debt, current | 69,000,000 | 69,000,000 | |||||
Convertible note, liability component | $ 95,600,000 | 37,200,000 | 37,200,000 | ||||
Convertible note, equity component | 36,400,000 | 6,700,000 | 6,700,000 | ||||
Deferred tax assets, net | 300,000 | ||||||
Debt issuance costs | 4,600,000 | ||||||
Unamortized debt issuance costs | 3,300,000 | 1,500,000 | 1,500,000 | 2,900,000 | |||
Debt issuance costs, allocated to capital | $ 1,300,000 | ||||||
Debt converted | 43,900,000 | ||||||
Debt converted, settled | $ 38,500,000 | $ 38,500,000 | |||||
Conversion shares (in shares) | shares | 1.9 | ||||||
Equity component of convertible notes due 2025, net | $ 301,000,000 | ||||||
Loss on extinguishment of debt | $ 3,000,000 | ||||||
Effective percentage rate | 7.75% | 7.75% | |||||
Unamortized discount | $ 17,600,000 | $ 17,600,000 | $ 32,900,000 | ||||
Remaining discount amortization period | 3 years 4 months 24 days | ||||||
Conversion shares (in shares) | shares | 6.4 | 4.3 | 4.3 | ||||
Payment for bonds hedge | $ 36,300,000 | ||||||
Debt conversion, issuable (in shares) | shares | 2.1 | ||||||
Warrants sold (in shares) | shares | 6.4 | ||||||
Warrants issued, strike price (in USD per share) | $ / shares | $ 25.2320 | ||||||
Convertible Notes | Convertible Senior Notes Due 2024 | Discount rate | |||||||
Debt Instrument [Line Items] | |||||||
Measurement input | 0.0775 | 0.0575 | 0.0575 | ||||
Convertible Notes | Convertible Senior Notes Due 2024 | Expected Term | |||||||
Debt Instrument [Line Items] | |||||||
Measurement input | 3.6 | 3.6 | |||||
Period One | Convertible Notes | Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Number of threshold trading days | trading_day | 20 | 20 | |||||
Number of consecutive trading days | trading_day | 30 | ||||||
Stock trigger price (in USD per share) | $ / shares | $ 26.6513 | ||||||
Threshold percentage | 130.00% | ||||||
Measurement period percentage of stock price trigger | 98.00% | ||||||
Period Two | Convertible Notes | Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Number of consecutive trading days | trading_day | 5 | ||||||
Threshold percentage | 100.00% | ||||||
Forecast | Subsequent Event | Convertible Notes | Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Conversion of debt | $ 61,500,000 |
DEBT - Schedule of Convertibl_2
DEBT - Schedule of Convertible Senior Notes due 2024 (Details) - Convertible Notes - Convertible Senior Notes Due 2024 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,284 | $ 759 |
Amortization of debt discount | 6,325 | 3,492 |
Amortization of debt issuance costs | 646 | 375 |
Total interest cost recognized | $ 8,255 | $ 4,626 |
DEBT - Convertible Senior Not_3
DEBT - Convertible Senior Notes due 2023 Narrative (Details) - Convertible Senior Notes Due 2023 | Jun. 05, 2019USD ($)shares | Aug. 31, 2018USD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Conversion shares (in shares) | shares | 10,801,080 | |||
Fees paid for repurchase and exchange of convertible notes | $ 6,000,000 | |||
Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 65,000,000 | $ 5,000,000 | $ 5,000,000 | |
Interest rate | 4.00% | |||
Debt converted | $ 60,000,000 | |||
Debt conversion price (in USD per share) | $ / shares | $ 5.56 | |||
Conversion ratio | 0.1800180 | |||
Redemption price percentage | 100.00% |
DEBT - Schedule of Convertibl_3
DEBT - Schedule of Convertible Senior Notes due 2023 (Details) - Convertible Notes - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 200 | $ 1,226 |
Amortization of debt issuance costs | 40 | 245 |
Total interest cost recognized | $ 240 | $ 1,471 |
DEBT - Sale of Long - Term Fina
DEBT - Sale of Long - Term Financing Receivables (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Proceeds from debt, net of issuance costs | $ 0 | $ 0 | $ 68,024 | |
Financing Receivable | Financing Receivable Recorded As Debt | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt, net of issuance costs | $ 2,800 | $ 5,600 | ||
Long-term debt, gross | $ 1,925 | $ 4,501 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 26, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||
Term of lease contract, maximum renewal term | 12 years | ||
Purchase obligation | $ 162,200,000 | ||
Letters of credit outstanding | 0 | ||
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 44,700,000 | ||
Section 301 Tariff Refunds | |||
Line of Credit Facility [Line Items] | |||
Potential positive impact of approval of requested Tariff refunds | $ 38,900,000 | ||
Tariff refund | 24,800,000 | ||
Tariff refund receivable | 14,700,000 | ||
Recognized in current period | 38,900,000 | ||
Section 301 Tariff Refunds, Accrued Interest | |||
Line of Credit Facility [Line Items] | |||
Potential positive impact of approval of requested Tariff refunds | $ 600,000 | ||
Recognized in current period | $ 600,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Expense Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease costs | $ 5,332 | $ 4,041 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease liabilities, current (Accrued liabilities) | $ 4,542 | $ 3,170 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating lease liabilities, noncurrent (Other liabilities) | $ 15,209 | $ 9,542 |
Total operating lease liabilities | $ 19,751 | $ 12,712 |
Weighted average remaining lease term | 6 years 4 months 24 days | 5 years 6 months |
Weighted average discount rate | 7.70% | 8.60% |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ 4,762 | $ 3,636 |
Lease liabilities arising from obtaining right-of-use assets | $ 10,625 | $ 4,834 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Lease Payments Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2021 | $ 5,830 | |
2022 | 4,677 | |
2023 | 4,056 | |
2024 | 3,069 | |
2025 | 2,275 | |
2026 and thereafter | 3,968 | |
Total lease payments | 23,875 | |
Less: imputed lease interest | (4,124) | |
Total lease liabilities | $ 19,751 | $ 12,712 |
SALE OF COMMON STOCK (Details)
SALE OF COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||
Number of shares issued (in shares) | 9.5 | |||
Price per share issued (in usd per share) | $ 2.10 | |||
Proceeds from issuance of common stock | $ 20,000 | $ 0 | $ 0 | $ 19,766 |
STOCK-BASED COMPENSATION Narrat
STOCK-BASED COMPENSATION Narrative (Details) | Jan. 01, 2021shares | May 18, 2017shares | Mar. 29, 2012shares | Dec. 31, 2020USD ($)purchasePeriodshares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, outstanding (in shares) | 2,532,000 | 4,097,000 | 6,772,000 | 8,426,000 | |||
Total unrecognized compensation cost | $ | $ 89,700,000 | ||||||
Weighted-average recognition period for unrecognized compensation cost | 2 years 10 months 24 days | ||||||
2006 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 4 years | ||||||
Share-based compensation, weighted-average remaining contractual term | 10 years | ||||||
Share-based compensation, outstanding (in shares) | 100,000 | ||||||
2011 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, vesting period | 4 years | ||||||
Share-based compensation, shares authorized (in shares) | 2,643,171 | ||||||
Increase in common stock shares reserved for future issuance percentage | 4.50% | ||||||
Share-based compensation, shares available for grant (in shares) | 8,940,388 | ||||||
Share-based compensation, additional shares authorized (in shares) | 5,803,296 | ||||||
Employee Stock Purchase Plan (ESPP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, shares authorized (in shares) | 669,603 | ||||||
Share-based compensation, shares available for grant (in shares) | 1,288,887 | ||||||
Share-based compensation, additional shares authorized (in shares) | 400,000 | ||||||
Share-based compensation, evergreen shares (in shares) | 700,000 | 330,396 | |||||
Share-based compensation, increase in number of shares authorized | 1.00% | ||||||
Employee stock purchase plan, number of interim purchase periods | purchasePeriod | 4 | ||||||
General duration of employee stock purchase plan | 24 months | ||||||
Share-based compensation, maximum employee subscription rate | 15.00% | ||||||
Share-based compensation, purchase price of common stock percent to fair market value | 85.00% | ||||||
Share-based compensation, look-back feature | 2 years | ||||||
IRS limitation for employees right to acquire class common stock under ESPP | $ | $ 25,000 | ||||||
Before August 1, 2012 | 2011 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, weighted-average remaining contractual term | 10 years | ||||||
After August 1, 2012 | 2011 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, weighted-average remaining contractual term | 7 years | ||||||
Subsequent Event | Employee Stock Purchase Plan (ESPP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, evergreen shares (in shares) | 700,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 42,503 | $ 20,176 | $ 11,432 |
Income tax benefit included in the provision for incomes taxes | 61,389 | 8,185 | 0 |
Total unrecognized compensation cost | $ 89,700 | ||
Weighted-average recognition period for unrecognized compensation cost | 2 years 10 months 24 days | ||
Stock options and RSUs and PSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 39,841 | 19,216 | 10,691 |
Employee stock purchase plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,662 | 960 | 741 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 3,759 | 1,650 | 1,071 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 12,701 | 4,897 | 2,940 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11,548 | 5,678 | 3,074 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 14,495 | 7,216 | 4,347 |
Restructuring | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 735 | $ 0 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense Associated with Each Type of Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 42,503 | $ 20,176 | $ 11,432 |
Stock options and RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 39,841 | 19,216 | 10,691 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 2,662 | $ 960 | $ 741 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of the Weighted-Average Grant Date Fair Value of Options Granted (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
The fair value of each option granted during the periods | |||
Grants in period (in shares) | 11 | 43 | 213 |
Stock options | |||
The fair value of each option granted during the periods | |||
Weighted average grant date fair value (in usd per share) | $ 38.45 | $ 9.16 | $ 2.83 |
Expected term | 3 years 9 months 18 days | 3 years 9 months 18 days | 4 years |
Expected volatility | 86.40% | 89.10% | 88.50% |
Annual risk-free rate of return | 0.10% | 2.10% | 2.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares Outstanding | |||
Outstanding, beginning balance (in shares) | 4,097 | 6,772 | 8,426 |
Granted (in shares) | 11 | 43 | 213 |
Exercised (in shares) | (1,494) | (2,616) | (1,346) |
Canceled (in shares) | (82) | (102) | (521) |
Outstanding, ending balance (in shares) | 2,532 | 4,097 | 6,772 |
Shares outstanding, vested and expected to vest (in shares) | 2,532 | ||
Shares outstanding, exercisable (in shares) | 2,089 | ||
Weighted- Average Exercise Price per Share | |||
Outstanding, beginning balance (in usd per share) | $ 2.18 | $ 1.76 | $ 1.77 |
Granted (in usd per share) | 64.17 | 14.58 | 4.43 |
Exercised (in usd per share) | 2.74 | 1.22 | 1.75 |
Canceled (in usd per share) | 6.94 | 4.07 | 2.94 |
Outstanding, ending balance (in usd per share) | 1.96 | $ 2.18 | $ 1.76 |
Weighted-average exercise price, vested and expected (in usd per share) | 1.96 | ||
Weighted-average exercise price, exercisable (in usd per share) | $ 1.95 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding | 3 years 8 months 12 days | ||
Vested and expected to vest | 3 years 8 months 12 days | ||
Exercisable | 3 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Exercised | $ 114,089 | $ 31,093 | $ 5,096 |
Outstanding | 439,268 | ||
Vested and expected to vest | 439,268 | ||
Exercisable | $ 362,526 | ||
Share price (in usd per share) | $ 175.47 |
STOCK-BASED COMPENSATION - Su_5
STOCK-BASED COMPENSATION - Summary of Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number of shares (shares) | shares | 2,532 |
Options outstanding - weighted- average remaining life | 3 years 8 months 12 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 1.96 |
Options exercisable - number of shares exercisable (shares) | shares | 2,089 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 1.95 |
$0.70 —– $1.11 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 0.70 |
Exercise price range, upper limit (usd per share) | $ 1.11 |
Options outstanding, number of shares (shares) | shares | 555 |
Options outstanding - weighted- average remaining life | 4 years 2 months 12 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 0.85 |
Options exercisable - number of shares exercisable (shares) | shares | 448 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 0.83 |
$1.29 —– $1.29 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 1.29 |
Exercise price range, upper limit (usd per share) | $ 1.29 |
Options outstanding, number of shares (shares) | shares | 1,000 |
Options outstanding - weighted- average remaining life | 3 years 8 months 12 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 1.29 |
Options exercisable - number of shares exercisable (shares) | shares | 813 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 1.29 |
$1.31 —– $1.31 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 1.31 |
Exercise price range, upper limit (usd per share) | $ 1.31 |
Options outstanding, number of shares (shares) | shares | 670 |
Options outstanding - weighted- average remaining life | 3 years 3 months 18 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 1.31 |
Options exercisable - number of shares exercisable (shares) | shares | 587 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 1.31 |
$1.37 —– $14.58 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 1.37 |
Exercise price range, upper limit (usd per share) | $ 14.58 |
Options outstanding, number of shares (shares) | shares | 296 |
Options outstanding - weighted- average remaining life | 3 years 7 months 6 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 5.56 |
Options exercisable - number of shares exercisable (shares) | shares | 235 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 6.37 |
$64.17 —– $64.17 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 64.17 |
Exercise price range, upper limit (usd per share) | $ 64.17 |
Options outstanding, number of shares (shares) | shares | 11 |
Options outstanding - weighted- average remaining life | 6 years 3 months 18 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 64.17 |
Options exercisable - number of shares exercisable (shares) | shares | 6 |
Options Exercisable - weighted-average exercise price (usd per share) | $ 64.17 |
STOCK-BASED COMPENSATION - Su_6
STOCK-BASED COMPENSATION - Summary of Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Aggregate Intrinsic Value | |||
Share price (in usd per share) | $ 175.47 | ||
Restricted stock units | |||
Number of Shares Outstanding | |||
Outstanding, beginning balance (in shares) | 4,263 | 4,352 | 3,505 |
Granted (in shares) | 1,550 | 2,112 | 3,152 |
Vested (in shares) | (2,085) | (1,707) | (1,399) |
Canceled (in shares) | (140) | (494) | (906) |
Outstanding, ending balance (in shares) | 3,588 | 4,263 | 4,352 |
Number of shares outstanding, expected to vest (in shares) | 3,588 | ||
Weighted Average Fair Value per Share at Grant Date | |||
Outstanding, beginning balance (in usd per share) | $ 7.19 | $ 3.52 | $ 2.03 |
Granted (in usd per share) | 55.66 | 11.50 | 4.45 |
Vested (in usd per share) | 7.26 | 3.87 | 2.75 |
Canceled (in usd per share) | 19.47 | 4.81 | 2.17 |
Outstanding, ending balance (in usd per share) | 27.61 | $ 7.19 | $ 3.52 |
Weighted-Average Fair Value per Share at Grant Date, Expected to vest (in usd per share) | $ 27.61 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding | 1 year 29 days | ||
Expected to vest | 1 year 29 days | ||
Aggregate Intrinsic Value | |||
Vested | $ 125,578 | $ 27,156 | $ 6,657 |
Outstanding | 629,633 | ||
Aggregate intrinsic value, expected to vest | $ 629,633 |
STOCK-BASED COMPENSATION - Su_7
STOCK-BASED COMPENSATION - Summary of Performance Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Aggregate Intrinsic Value | |||
Share price (in usd per share) | $ 175.47 | ||
Performance shares | |||
Number of Shares Outstanding | |||
Outstanding, beginning balance (in shares) | 955 | 1,330 | 0 |
Granted (in shares) | 989 | 1,052 | 1,477 |
Vested (in shares) | (1,450) | (1,063) | 0 |
Canceled (in shares) | 0 | (364) | (147) |
Outstanding, ending balance (in shares) | 494 | 955 | 1,330 |
Weighted Average Fair Value per Share at Grant Date | |||
Outstanding, beginning balance (in usd per share) | $ 9.83 | $ 4.66 | |
Granted (in usd per share) | 31.12 | 9.48 | 4.65 |
Vested (in usd per share) | 10.20 | 4.62 | |
Canceled (in usd per share) | 0 | 5.16 | |
Outstanding, ending balance (in usd per share) | $ 51.10 | $ 9.83 | $ 4.66 |
Weighted-Average Remaining Contractual Term | |||
Weighted average remaining contractual term | 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Vested | $ 52,144 | $ 10,818 | |
Outstanding | $ 86,668 |
STOCK-BASED COMPENSATION - Su_8
STOCK-BASED COMPENSATION - Summary of ESPP Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Proceeds from common stock issued under ESPP | $ 4,304 | $ 1,692 | $ 397 |
Shares of common stock issued (shares) | 347 | 315 | 439 |
Weighted-average price per share (usd per share) | $ 12.41 | $ 5.37 | $ 0.90 |
INCOME TAXES - Schedule of Dome
INCOME TAXES - Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 112,727 | $ 85,520 | $ (14,322) | ||||||||
Foreign | 6,683 | 4,594 | 4,093 | ||||||||
Income (loss) before income taxes | $ 71,352 | $ 44,845 | $ (53,855) | $ 57,068 | $ 44,421 | $ 31,371 | $ 11,209 | $ 3,113 | $ 119,410 | $ 90,114 | $ (10,229) |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||||||||||
Federal | $ 0 | $ 0 | $ 0 | ||||||||
State | 636 | 327 | 42 | ||||||||
Foreign | 1,896 | 1,589 | 1,233 | ||||||||
Total | 2,532 | 1,916 | 1,275 | ||||||||
Deferred: | |||||||||||
Federal | (13,445) | (56,959) | (35) | ||||||||
State | (3,672) | (17,458) | (21) | ||||||||
Foreign | 0 | 1,467 | 179 | ||||||||
Total | (17,117) | (72,950) | 123 | ||||||||
Income taxes (benefit) provision | $ (1,639) | $ 5,483 | $ (6,561) | $ (11,868) | $ (72,245) | $ 272 | $ 591 | $ 348 | $ (14,585) | $ (71,034) | $ 1,398 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Income tax (benefit) provision at statutory federal rate | $ 25,076 | $ 18,929 | $ (2,148) | ||||||||
State taxes, net of federal benefit | (3,098) | (17,197) | 17 | ||||||||
Change in valuation allowance | 0 | (71,300) | 8,198 | ||||||||
Foreign tax rate and tax law differential | 611 | 1,206 | 313 | ||||||||
Tax credits | (5,835) | (1,803) | (378) | ||||||||
Stock-based compensation | (50,818) | (8,072) | (953) | ||||||||
Other permanent items | (253) | 31 | 235 | ||||||||
Other nondeductible/nontaxable items | 1,525 | 2,765 | (5,112) | ||||||||
Uncertain tax positions | 1,530 | 504 | 107 | ||||||||
GILTI | 0 | 1,086 | 917 | ||||||||
Section 162(m) | 11,469 | 2,817 | 202 | ||||||||
Warrant mark-to-mark adjustment | 5,208 | 0 | 0 | ||||||||
Income tax (benefit) provision | $ (1,639) | $ 5,483 | $ (6,561) | $ (11,868) | $ (72,245) | $ 272 | $ 591 | $ 348 | $ (14,585) | $ (71,034) | $ 1,398 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowances and reserves | $ 13,146 | $ 10,726 |
Net operating loss and tax credit carryforwards | 53,116 | 54,369 |
Stock-based compensation | 4,598 | 3,753 |
Deferred revenue | 20,765 | 16,736 |
Fixed assets and intangibles | 8,706 | 2,720 |
Sec. 163(j) interest carryforward | 4,401 | 0 |
Other | 7,007 | 1,109 |
Subtotal | 111,739 | 89,413 |
Total deferred tax assets | 111,739 | 89,413 |
Deferred tax liabilities: | ||
Goodwill | (1,719) | (1,368) |
Unremitted foreign earnings | (7) | (5) |
Deferred cost of goods sold | (17,545) | (14,374) |
Total deferred tax liabilities | (19,271) | (15,747) |
Net deferred tax asset | $ 92,468 | $ 73,666 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Tax Credit Carryforward [Line Items] | |
Unrecognized tax benefits | $ 1.8 |
Domestic Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 113.7 |
Domestic Tax Authority | Research Tax Credit Carryforward | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | 18.2 |
State and Local Jurisdiction | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 87.3 |
State and Local Jurisdiction | Research Tax Credit Carryforward | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 12.6 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits—at beginning of year | $ 6,589 | $ 6,325 | $ 6,106 |
Decreases in balances related to tax positions taken in prior years | 0 | (370) | 0 |
Increases in balances related to tax positions taken in current year | 2,006 | 771 | 329 |
Lapses in statutes of limitations | (174) | (137) | (110) |
Unrecognized tax benefits—at end of year | $ 8,421 | $ 6,589 | $ 6,325 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) | Aug. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 100.00% | |||
Accounts Receivable, Largest Customer | Accounts receivable | Credit concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 36.00% | 34.00% | ||
Accounts Receivable, Second Largest Customer | Accounts receivable | Credit concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 14.00% | |||
Accounts Receivable, Third Largest Customer | Accounts receivable | Credit concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 11.00% | |||
Net Revenues, Largest Customer | Customer concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 19.00% | |||
Net Revenues, Largest Customer | Net revenue | Customer concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 29.00% | 21.00% | ||
Net Revenue, Second Largest Customer | Net revenue | Customer concentration risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of concentration risk | 12.00% |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income (loss) | $ 72,991 | $ 39,362 | $ (47,294) | $ 68,936 | $ 116,666 | $ 31,099 | $ 10,618 | $ 2,765 | $ 133,995 | $ 161,148 | $ (11,627) |
Notes due 2023 interest and financing costs, net | 177 | 1,088 | 0 | ||||||||
Adjusted net income (loss) | $ 134,172 | $ 162,236 | $ (11,627) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding (in shares) | 125,561 | 116,713 | 99,619 | ||||||||
Employee stock-based awards (in shares) | 6,997 | 8,964 | 0 | ||||||||
Weighted average common shares outstanding for diluted calculation (in shares) | 141,918 | 131,644 | 99,619 | ||||||||
Net income per share, basic (in USD per share) | $ 0.57 | $ 0.31 | $ (0.38) | $ 0.56 | $ 0.95 | $ 0.25 | $ 0.09 | $ 0.03 | $ 1.07 | $ 1.38 | $ (0.12) |
Net income per share, diluted (in USD per share) | $ 0.50 | $ 0.28 | $ (0.38) | $ 0.50 | $ 0.88 | $ 0.23 | $ 0.08 | $ 0.02 | $ 0.95 | $ 1.23 | $ (0.12) |
Convertible Senior Notes Due 2024 | |||||||||||
Denominator: | |||||||||||
Warrants (issued in conjunction with Notes due 2024) (in shares) | 4,011 | 0 | 0 | ||||||||
Convertible Notes | Convertible Senior Notes Due 2024 | |||||||||||
Denominator: | |||||||||||
Notes due (in shares) | 4,449 | 451 | 0 | ||||||||
Convertible Notes | Convertible Senior Notes Due 2023 | |||||||||||
Denominator: | |||||||||||
Notes due (in shares) | 900 | 5,516 | 0 |
NET INCOME PER SHARE - Schedu_2
NET INCOME PER SHARE - Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,494 | 485 | 24,684 |
Employee stock-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 7 | 27 | 7,710 |
RSU's and PSU's | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 36 | 158 | 5,273 |
Warrants | Convertible Senior Notes Due 2024 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 300 | 0 |
Warrants | Convertible Senior Notes Due 2025 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,254 | 0 | 0 |
Notes due | Convertible Senior Notes Due 2025 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 197 | 0 | |
Notes due | Convertible Senior Notes Due 2023 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 11,701 |
NET INCOME PER SHARE - Narrativ
NET INCOME PER SHARE - Narrative (Details) - Convertible Notes - $ / shares | Mar. 09, 2020 | Jun. 05, 2019 |
Convertible Senior Notes Due 2024 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt conversion price (in USD per share) | $ 20.5010 | |
Convertible Senior Notes Due 2025 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt conversion price (in USD per share) | $ 81.54 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Summary of Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 42,985 | $ 28,936 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 19,870 | 16,754 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 9,948 | 4,635 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,808 | 3,510 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,371 | 1,315 |
New Zealand | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,837 | 2,638 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 151 | $ 84 |
RELATED PARTY - Narrative (Deta
RELATED PARTY - Narrative (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | |
SunPower’s | ||||
Related Party Transaction [Line Items] | ||||
Common stock issued for business acquisition (in shares) | 3.5 | 6.5 | ||
Revenue from related parties | $ 70,900,000 | |||
Accounts receivable, related parties | 15,900,000 | |||
Safe harbor prepayments | 5,200,000 | |||
Convertible Notes | Convertible Senior Notes Due 2023 | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument face amount | $ 5,000,000 | 5,000,000 | $ 65,000,000 | |
Thurman John Rodgers | Convertible Notes | Convertible Senior Notes Due 2023 | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument face amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Aug. 09, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Consideration transferred for business acquisition | $ 57,319 | ||||
Common stock issued | 32,319 | ||||
Goodwill | $ 24,783 | $ 24,783 | $ 24,783 | ||
Cash purchase price allocated in cash flows from operating activities | (25,568) | (14,788) | $ (19,151) | ||
Cash purchase price allocated in cash flows from investing activities | 216,334 | 139,067 | 16,132 | ||
Acquisition funded by issuance of common stock | $ 0 | $ 0 | 19,219 | ||
Cash Purchase Price | 25,000 | ||||
Customer relationship | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred for business acquisition | 23,100 | ||||
Common stock issued | 13,100 | ||||
Cash Purchase Price | 10,000 | ||||
Developed Technology And Goodwill | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred for business acquisition | 34,219 | ||||
Common stock issued | 19,219 | ||||
Cash Purchase Price | $ 15,000 | ||||
SunPower’s | |||||
Business Acquisition [Line Items] | |||||
Agreement for exclusive supplier rights, period | 5 years | 3 months | |||
Consideration transferred for business acquisition | $ 57,319 | ||||
Common stock issued for business acquisition (in shares) | 7.5 | ||||
Common stock issued | $ 32,319 | ||||
Limitation for trade or transfer, period | 6 months | ||||
Limitation for number of shares to be transferred by acquiree, period | 6 months | ||||
Goodwill | $ 21,119 | ||||
Amortization period for acquired intangible assets | 15 years | ||||
Cash purchase price allocated in cash flows from operating activities | 10,000 | ||||
Purchase price | 25,000 | ||||
Cash purchase price allocated in cash flows from investing activities | 15,000 | ||||
Acquisition funded by issuance of common stock | 19,200 | ||||
Cash Purchase Price | $ 25,000 | 15,000 | |||
Total acquisition related costs | $ 800 | ||||
SunPower’s | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Amortization period for acquired intangible assets | 6 years | ||||
SunPower’s | Customer relationship | |||||
Business Acquisition [Line Items] | |||||
Amortization period for acquired intangible assets | 9 years | ||||
Discount rate | SunPower’s | Minimum | |||||
Business Acquisition [Line Items] | |||||
Equity, measurement input | 30.00% | ||||
Discount rate | SunPower’s | Maximum | |||||
Business Acquisition [Line Items] | |||||
Equity, measurement input | 14.00% |
ACQUISITION - Summary of Consid
ACQUISITION - Summary of Consideration Transferred for Business Acquisition (Details) - USD ($) $ in Thousands | Aug. 09, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Cash consideration | $ 25,000 | |
Common stock issued | 32,319 | |
Total | 57,319 | |
SunPower’s | ||
Business Acquisition [Line Items] | ||
Cash consideration | 25,000 | $ 15,000 |
Common stock issued | 32,319 | |
Total | 57,319 | |
Developed technology and goodwill | ||
Business Acquisition [Line Items] | ||
Cash consideration | 15,000 | |
Common stock issued | 19,219 | |
Total | 34,219 | |
Customer relationship | ||
Business Acquisition [Line Items] | ||
Cash consideration | 10,000 | |
Common stock issued | 13,100 | |
Total | $ 23,100 |
ACQUISITION - Summary of Fair V
ACQUISITION - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 09, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 24,783 | $ 24,783 | |
SunPower’s | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 36,200 | ||
Goodwill | 21,119 | ||
Net assets acquired | $ 57,319 |
ACQUISITION - Summary of Identi
ACQUISITION - Summary of Identifiable Intangible Assets Acquired (Details) - SunPower’s $ in Thousands | Aug. 09, 2018USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 36,200 |
Useful Life | 15 years |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 13,100 |
Useful Life | 6 years |
Customer relationship | |
Business Acquisition [Line Items] | |
Intangible assets | $ 23,100 |
Useful Life | 9 years |
ACQUISITION - Summary of Alloca
ACQUISITION - Summary of Allocation of Purchase Price to Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Aug. 09, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Cash Purchase Price | $ 25,000 | |
Issuance of Common Stock | 32,319 | |
Total | $ 57,319 | |
% of Total Consideration | 100.00% | |
SunPower’s | ||
Business Acquisition [Line Items] | ||
Cash Purchase Price | $ 25,000 | $ 15,000 |
Issuance of Common Stock | 32,319 | |
Total | 57,319 | |
Developed technology and goodwill | ||
Business Acquisition [Line Items] | ||
Cash Purchase Price | 15,000 | |
Issuance of Common Stock | 19,219 | |
Total | $ 34,219 | |
% of Total Consideration | 60.00% | |
Customer relationship | ||
Business Acquisition [Line Items] | ||
Cash Purchase Price | $ 10,000 | |
Issuance of Common Stock | 13,100 | |
Total | $ 23,100 | |
% of Total Consideration | 40.00% |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ in Thousands | Jan. 25, 2021 | Aug. 09, 2018 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||
Payments to acquire investments | $ 5,010 | $ 0 | $ 0 | |||
Consideration transferred for business acquisition | $ 57,319 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Payments to acquire investments | $ 25,000 | |||||
Subsequent Event | Sofdesk | ||||||
Subsequent Event [Line Items] | ||||||
Voting interests acquired | 100.00% | |||||
Consideration transferred for business acquisition | $ 32,000 |
SELECTED UNAUDITED QUARTERLY _3
SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 264,839 | $ 178,503 | $ 125,538 | $ 205,545 | $ 210,032 | $ 180,057 | $ 134,094 | $ 100,150 | $ 774,425 | $ 624,333 | $ 316,159 |
Cost of revenues | 142,901 | 83,522 | 77,151 | 124,870 | 132,151 | 115,351 | 88,775 | 66,811 | 428,444 | 403,088 | 221,714 |
Gross profit | 121,938 | 94,981 | 48,387 | 80,675 | 77,881 | 64,706 | 45,319 | 33,339 | 345,981 | 221,245 | 94,445 |
Operating expenses: | |||||||||||
Research and development | 15,801 | 15,052 | 13,192 | 11,876 | 11,168 | 11,085 | 9,604 | 8,524 | 55,921 | 40,381 | 32,587 |
Sales and marketing | 14,139 | 14,645 | 12,371 | 11,772 | 10,690 | 9,551 | 9,054 | 7,433 | 52,927 | 36,728 | 27,047 |
General and administrative | 12,884 | 13,525 | 11,970 | 12,315 | 10,450 | 9,895 | 8,583 | 9,880 | 50,694 | 38,808 | 29,086 |
Restructuring charges | 1,131 | 469 | 631 | 368 | 0 | 2,599 | 4,129 | ||||
Total operating expenses | 42,824 | 43,222 | 37,533 | 35,963 | 33,439 | 31,000 | 27,872 | 26,205 | 159,542 | 118,516 | 92,849 |
Income from operations | 79,114 | 51,759 | 10,854 | 44,712 | 44,442 | 33,706 | 17,447 | 7,134 | 186,439 | 102,729 | 1,596 |
Interest income | 673 | 110 | 282 | 1,091 | 815 | 894 | 593 | 211 | 2,156 | 2,513 | 1,058 |
Interest expense | (5,901) | (5,993) | (5,952) | (3,155) | (2,303) | (2,286) | (1,351) | (3,751) | (21,001) | (9,691) | (10,693) |
Other income (expense) | (2,534) | (1,031) | 653 | (924) | 1,467 | (943) | (5,480) | (481) | (3,836) | (5,437) | (2,190) |
Change in fair value of derivatives | 0 | 0 | (59,692) | 15,344 | (44,348) | 0 | 0 | ||||
Total other expense, net | (7,762) | (6,914) | (64,709) | 12,356 | (21) | (2,335) | (6,238) | (4,021) | (67,029) | (12,615) | (11,825) |
Income (loss) before income taxes | 71,352 | 44,845 | (53,855) | 57,068 | 44,421 | 31,371 | 11,209 | 3,113 | 119,410 | 90,114 | (10,229) |
Income tax benefit (provision) | 1,639 | (5,483) | 6,561 | 11,868 | 72,245 | (272) | (591) | (348) | 14,585 | 71,034 | (1,398) |
Net income (loss) | $ 72,991 | $ 39,362 | $ (47,294) | $ 68,936 | $ 116,666 | $ 31,099 | $ 10,618 | $ 2,765 | $ 133,995 | $ 161,148 | $ (11,627) |
Net income per share, basic (in USD per share) | $ 0.57 | $ 0.31 | $ (0.38) | $ 0.56 | $ 0.95 | $ 0.25 | $ 0.09 | $ 0.03 | $ 1.07 | $ 1.38 | $ (0.12) |
Net income per share, diluted (in USD per share) | $ 0.50 | $ 0.28 | $ (0.38) | $ 0.50 | $ 0.88 | $ 0.23 | $ 0.08 | $ 0.02 | $ 0.95 | $ 1.23 | $ (0.12) |
Uncategorized Items - enph-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |