Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Entity Registrant Name | CAESARSTONE LTD. |
Entity Central Index Key | 0001504379 |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Registration Statement | false |
Entity File Number | 001-35464 |
Entity Incorporation, State or Country Code | IL |
Entity Address, Address Line One | Kibbutz Sdot-Yam |
Entity Address, City or Town | MP Menashe |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 3780400 |
Title of 12(b) Security | Ordinary shares, par value NIS 0.04 per share |
Trading Symbol | CSTE |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 34,532,452 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm ID | 1281 |
Document Financial Statement Error Correction [Flag] | false |
Grant Thornton Audit Pty Ltd. [Member] | |
Document Information [Line Items] | |
Auditor Name | Grant Thornton Audit Pty Ltd. |
Auditor Location | Melbourne, Australia |
Auditor Firm ID | 2233 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Yosef (Yos) Shiran |
Entity Address, Address Line One | Kibbutz Sdot-Yam |
Entity Address, City or Town | MP Menashe |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 3780400 |
City Area Code | 972 |
Local Phone Number | 636-4555 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 54,623 | $ 52,081 |
Short-term bank deposits | 36,500 | 0 |
Short-term available for sale marketable securities | 0 | 7,077 |
Trade receivables (net of allowance for credit loss of $12,214 and $9,756 at December 31, 2023 and 2022, respectively) | 66,888 | 77,898 |
Other accounts receivable and prepaid expenses | 25,489 | 32,570 |
Inventories | 136,446 | 238,232 |
Total current assets | 319,946 | 407,858 |
LONG-TERM ASSETS: | ||
Severance pay fund | 1,994 | 3,410 |
Deferred tax assets, net | 3,061 | 16,251 |
Long-term deposits and other | 4,961 | 3,255 |
Property, plant and equipment, net | 123,480 | 169,292 |
Operating lease right-of-use assets | 120,156 | 144,098 |
Intangible assets, net | 6,257 | 8,817 |
Total long-term assets | 259,909 | 345,123 |
Total assets | 579,855 | 752,981 |
CURRENT LIABILITIES: | ||
Short-term bank credit and current maturities of long- term bank loan | 5,118 | 26,135 |
Trade payables | 42,848 | 62,194 |
Related party | 257 | 283 |
Short term legal settlements and loss contingencies | 16,106 | 17,595 |
Accrued expenses and other liabilities | 56,894 | 58,777 |
Total current liabilities | 121,223 | 164,984 |
LONG-TERM LIABILITIES: | ||
Long-term loan from related parties | 479 | 483 |
Long-term bank loan | 2,070 | 4,340 |
Accrued severance pay | 3,065 | 4,750 |
Deferred tax liabilities, net | 3,006 | 4,288 |
Long-term warranty provision | 1,204 | 1,262 |
Long term legal settlements and loss contingencies | 11,814 | 19,572 |
Long-term operating lease liabilities | 114,146 | 124,353 |
Total long-term liabilities | 135,784 | 159,048 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
REDEEMABLE NON-CONTROLLING INTEREST | 7,789 | 7,903 |
Share capital- | ||
Ordinary shares of NIS 0.04 par value - 200,000,000 shares authorized at December 31, 2023 and 2022; 35,635,548 and 35,610,399 issued at December 31, 2023 and 2022, respectively; 34,532,452 and 34,507,303 shares outstanding at December 31, 2023 and 2022, respectively | 371 | 371 |
Additional paid-in capital | 164,456 | 163,431 |
Capital fund related to non-controlling interest | (5,587) | (5,587) |
Accumulated other comprehensive loss, net | (8,402) | (9,578) |
Retained earnings | 203,651 | 311,839 |
Treasury shares at cost – 1,103,096 ordinary shares at December 31, 2023 and 2022 | (39,430) | (39,430) |
Total equity | 315,059 | 421,046 |
Total liabilities and equity | $ 579,855 | $ 752,981 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Trade receivables, allowance for credit loss | $ 12,214 | $ 9,756 | $ 9,036 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical 2) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value per share | ₪ 0.04 | ₪ 0.04 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 35,635,548 | 35,610,399 |
Ordinary shares, shares outstanding | 34,532,452 | 34,507,303 |
Treasury shares | 1,103,096 | 1,103,096 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 565,231 | $ 690,806 | $ 643,892 |
Cost of revenues | 473,292 | 527,561 | 472,394 |
Gross profit | 91,939 | 163,245 | 171,498 |
Operating expenses: | |||
Research and development | 5,086 | 4,098 | 4,216 |
Selling and marketing | 82,222 | 94,412 | 85,725 |
General and administrative | 49,490 | 51,596 | 50,845 |
Goodwill and long-lived assets impairment charges | 47,939 | 71,258 | 0 |
Legal settlements and loss contingencies, net | (4,770) | 568 | 3,283 |
Total operating expenses | 179,967 | 221,932 | 144,069 |
Operating income (loss) | (88,028) | (58,687) | 27,429 |
Finance expenses (income), net | (1,069) | (3,079) | 7,590 |
Income (loss) before taxes on income | (86,959) | (55,608) | 19,839 |
Taxes on income | 21,281 | 758 | 1,950 |
Net income (loss) | (108,240) | (56,366) | 17,889 |
Net income (loss) attributable to non-controlling interest | (584) | 688 | (1,077) |
Net income (loss) attributable to controlling interest | $ (107,656) | $ (57,054) | $ 18,966 |
Basic net income (loss) per share of Ordinary shares | $ (3.13) | $ (1.66) | $ 0.51 |
Diluted net income (loss) per share of Ordinary shares | $ (3.13) | $ (1.66) | $ 0.51 |
Weighted average number of Ordinary shares used in computing basic income (loss) per share (in thousands) | 34,519 | 34,488 | 34,462 |
Weighted average number of Ordinary shares used in computing diluted income (loss) per share (in thousands) | 34,519 | 34,488 | 34,570 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (108,240) | $ (56,366) | $ 17,889 |
Other comprehensive income (loss) before tax: | |||
Foreign currency translation adjustments | 38 | (8,932) | (2,186) |
Unrealized income (loss) on foreign currency cash flow hedge | 764 | (699) | 329 |
Unrealized income (loss) on available for sale marketable securities | 100 | (84) | (59) |
Income tax expense related to components of other comprehensive loss | 212 | (11) | (26) |
Total other comprehensive income (loss), net of tax | 1,114 | (9,726) | (1,942) |
Comprehensive income (loss) | (107,126) | (66,092) | 15,947 |
Less - comprehensive loss attributable to non-controlling interest | 646 | 164 | 1,232 |
Comprehensive income (loss) attributable to controlling interest | $ (106,480) | $ (65,928) | $ 17,179 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss), net [Member] | [1] | Capital fund related to non-controlling interest [Member] | Treasury shares [Member] | Total | |||
Balance at Dec. 31, 2020 | $ 371 | $ 160,083 | $ 370,830 | $ 1,083 | $ (5,587) | $ (39,430) | $ 487,350 | ||||
Balance, shares at Dec. 31, 2020 | 34,437,296 | ||||||||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (1,787) | 0 | 0 | (1,787) | ||||
Net income (loss) attributable to controlling interest | 0 | 0 | 18,966 | 0 | 0 | 0 | 18,966 | ||||
Equity-based compensation expense | [2] | 0 | 1,846 | 0 | 0 | 0 | 0 | 1,846 | |||
Adjustment to redemption value of the non-controlling interest | 0 | 0 | (1,399) | 0 | 0 | 0 | (1,399) | ||||
Dividend paid | 0 | 0 | (10,681) | 0 | 0 | 0 | (10,681) | ||||
Cashless exercise of options and RSUs | [3] | [3] | 0 | 0 | 0 | 0 | 0 | ||||
Cashless exercise of options and RSUs, Shares | 35,774 | ||||||||||
Balance at Dec. 31, 2021 | $ 371 | 161,929 | 377,716 | (704) | (5,587) | (39,430) | 494,295 | ||||
Balance, shares at Dec. 31, 2021 | 34,473,070 | ||||||||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (8,874) | 0 | 0 | (8,874) | ||||
Net income (loss) attributable to controlling interest | 0 | 0 | (57,054) | 0 | 0 | 0 | (57,054) | ||||
Equity-based compensation expense | [2] | 0 | 1,502 | 0 | 0 | 0 | 0 | 1,502 | |||
Adjustment to redemption value of the non-controlling interest | 0 | 0 | (198) | 0 | 0 | 0 | (198) | ||||
Dividend paid | 0 | 0 | (8,625) | 0 | 0 | 0 | (8,625) | ||||
Cashless exercise of options and RSUs | [3] | [3] | 0 | 0 | 0 | 0 | 0 | ||||
Cashless exercise of options and RSUs, Shares | 34,233 | ||||||||||
Balance at Dec. 31, 2022 | $ 371 | 163,431 | 311,839 | (9,578) | (5,587) | (39,430) | $ 421,046 | ||||
Balance, shares at Dec. 31, 2022 | 34,507,303 | 34,507,303 | |||||||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 1,176 | 0 | 0 | $ 1,176 | ||||
Net income (loss) attributable to controlling interest | 0 | 0 | (107,656) | 0 | 0 | 0 | (107,656) | ||||
Equity-based compensation expense | [2] | 0 | 1,025 | 0 | 0 | 0 | 0 | 1,025 | |||
Adjustment to redemption value of the non-controlling interest | 0 | 0 | (532) | 0 | 0 | 0 | (532) | ||||
Cashless exercise of options and RSUs | [3] | [3] | 0 | 0 | 0 | 0 | 0 | ||||
Cashless exercise of options and RSUs, Shares | 25,149 | ||||||||||
Balance at Dec. 31, 2023 | $ 371 | $ 164,456 | $ 203,651 | $ (8,402) | $ (5,587) | $ (39,430) | $ 315,059 | ||||
Balance, shares at Dec. 31, 2023 | 34,532,452 | 34,532,452 | |||||||||
[1]Accumulated other comprehensive income (loss), net, comprised of foreign currency translation, hedging transactions and marketable securities.[2]See also Note 13.[3]Less than $1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (108,240) | $ (56,366) | $ 17,889 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,007 | 36,344 | 35,407 |
Share-based compensation expense | 1,025 | 1,502 | 1,846 |
Accrued severance pay, net | (268) | (58) | 121 |
Changes in deferred tax, net | 11,905 | (5,693) | (4,473) |
Capital loss (gain) from sale of property, plant and equipment | 18 | 67 | (3) |
Decrease in trade receivables | 11,760 | 2,612 | 815 |
Decrease (increase) in other accounts receivable and prepaid expenses | 8,145 | 3,645 | (9,036) |
Decrease (increase) in inventories | 101,549 | (40,884) | (54,189) |
Increase (decrease) in trade payables | (29,465) | (21,032) | 28,277 |
Increase in warranty provision | (165) | (119) | 112 |
Legal settlements and loss contingencies, net | (4,770) | 568 | 3,283 |
Decrease in right of use assets | 7,865 | 28,056 | 25,906 |
Decrease in lease liabilities | (9,516) | (36,478) | (22,085) |
Contingent consideration related to acquisition | 264 | 120 | (288) |
Amortization of premium and accretion of discount on marketable securities, net | 63 | 238 | 412 |
Changes in accrued interest related to marketable securities | 39 | 74 | 42 |
Goodwill and long-lived assets impairment charges | 47,939 | 71,258 | 0 |
Decrease in accrued expenses and other liabilities including related party | (1,626) | (7,165) | (3,352) |
Net cash (used in) provided by operating activities | 66,529 | (23,311) | 20,684 |
Cash flows from investing activities: | |||
Net cash paid for acquisitions | 0 | (2,245) | 0 |
Investment in short-term deposits | (36,500) | 0 | 0 |
Purchase of property, plant and equipment | (11,168) | (17,801) | (31,477) |
Proceeds from sale of property, plant and equipment | 177 | 12 | 9 |
Repayment of assumed shareholders loan related to acquisition | 0 | 0 | (1,966) |
Investment in marketable securities | 0 | 0 | (11,738) |
Sale and maturity of marketable securities | 7,100 | 12,401 | 10,395 |
Proceeds from (investment in) long-term deposits | (135) | 348 | (108) |
Net cash used in investing activities | (40,526) | (7,285) | (34,885) |
Cash flows from financing activities: | |||
Dividend paid | 0 | (8,625) | (10,681) |
Proceeds (repayment) of short-term bank credit and loans, net | (23,268) | 18,640 | (11,761) |
Contingent and deferred considerations related to acquisition | (511) | 0 | (1,492) |
Repayment of a financing liability of land | 0 | (859) | (1,320) |
Net cash used in financing activities | (23,779) | 9,156 | (25,254) |
Effect of exchange rate differences on cash and cash equivalents | 318 | (794) | (478) |
Increase (decrease) in cash and cash equivalents | 2,542 | (22,234) | (39,933) |
Cash and cash equivalents at beginning of year | 52,081 | 74,315 | 114,248 |
Cash and cash equivalents at end of year | 54,623 | 52,081 | 74,315 |
Cash received (paid) during the year for: | |||
Interest paid | (716) | (1,159) | (1,915) |
Interest received | 849 | 439 | 465 |
Tax paid | (1,852) | (4,968) | (7,377) |
Non cash activity during the year for: | |||
Changes in trade payables balances related to purchase of property, plant and equipment | 188 | (925) | (56) |
Operating lease liabilities and right-of-use assets | $ 19,364 | $ 18,569 | $ 57,343 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. General: Caesarstone Ltd. incorporated under the laws of the State of Israel, was founded in 1987. Caesarstone Ltd. The Company has subsidiaries in Australia, Singapore, Canada, United Kingdom, Sweden, India and the United States which are engaged in the manufacturing, marketing and selling of the Company's products in different geographic areas. The Company currently manufactures its engineered surfaces in two manufacturing facilities located in Bar-Lev Industrial Park in northern Israel and in Morbi, India, through its subsidiary (see also b below). b. Acquisition of Lioli Ceramica Pvt Ltd: On October 5, 2020, the Company completed the acquisition of 55% of the shares of Lioli Ceramica Pvt Ltd ("Lioli"), a producer of porcelain countertop slabs in the total net consideration of $13,574. The consideration included a contingent consideration arrangement that requires the Company to pay up to approximately $10,000 of additional consideration to Lioli’s minority shareholders subject to reaching certain EBITDA achievement. The fair value of the contingent consideration arrangement at the acquisition date was $1,492. During 2021 the criteria was partially met, and an additional related consideration amount of approximately $1,780 paid during 2021. As part of the agreement, the Company granted Lioli’s minority shareholders a put option and Lioli’s minority shareholders granted the Company a call option for its interest, each exercisable any time after April 1, 2024 and before the 20th anniversary of the acquisition date based on a mechanism as set forth in the agreement between the parties. During March 2022, the Company participated in rights offering in Lioli, and purchased additional 9,870,000 shares in amount of approximately $2.5 million. Following this offering, the Company holds 60.4% of Lioli's shares. As of December 31, 2023 and 2022, the Company revaluated its minority’s Put Option, in accordance with ASC 820 "Fair Value Measurements and Disclosures", at level 3, and based on it the non-controlling interest fair value in Lioli amounted to $7,789 and to $7,903, respectively. c. Acquisition of Omicron Supplies, LLC: On December 31, 2020, the Company, through its fully owned U.S. subsidiary, completed the acquisition of 100% of the shares of Omicron Supplies, LLC ("Omicron"), a stone supplier in the U.S., for a total net cash consideration of $18,830. d. Acquisition of Magrab Naturtsen AB: On July 6, 2022, the Company completed the acquisition of 100% of the shares of Magrab Naturtsen AB ("Magrab"), a stone supplier in Sweden, for a total net consideration of approximately $3,109. The consideration included a deferred consideration arrangement that requires the Company to pay up to approximately SEK 10,500 (approximately $1,000) of additional consideration to Magrab’s former shareholder to be paid during two years following the acquisition date. The fair value of the deferred consideration arrangement at the acquisition date was $875. The acquisition agreement included additional consideration in a form of an earn-out arrangement with Magrab’s former shareholder, that requires the Company to pay up to approximately SEK 4,000 (approximately $380) of additional amounts subject to reaching certain Revenues and EBITDA achievements during two years following the acquisition date. In order to receive the earn-out payments Magrab's former shareholder have to remain as a full-time employee of the Company at the expiry of the earn-out periods, and therefore this earn-out arrangement does not meet the contingent consideration under ASC805 "Business Combinations”. The Magrab acquisition was accounted for as a business combination in accordance with ASC 805 "Business Combinations”. The following table summarizes the purchase price allocation of Magrab Acquisition at the acquisition date: Components of Purchase Price: Cash $ 2,607 Deferred consideration 875 Less: Cash acquired 373 Net for allocation 3,109 Allocation of Purchase Price: Net tangible assets (liabilities): Trade receivables and other current assets, net 524 Property, plant and equipment, net 41 Inventories, net 1,233 ROU assets 446 Trade payables (523 ) Accrued expenses and other liabilities (378 ) Short-term lease liability (22 ) Long-term lease and other non-current liabilities (424 ) Total net tangible assets 897 Identifiable intangible assets: Customer relationships (1) 1,789 Deferred tax liabilities (369 ) Total identifiable intangible assets acquired 1,420 Goodwill (2) 792 Total purchase price allocation $ 3,109 (1) Customer relationships represent the underlying relationships and agreements with Magrab's customer base. In assessing the value of the Customer Relationships, the Company used an income approach method. The Customer Relationships’ economic useful life is estimated at approximately 8 years, amortized using the straight-line method. (2) The goodwill is primarily attributable to expected synergies resulting from the acquisition. In 2022, the Company recognized $80 of aggregate acquisition-related costs that were expensed in the consolidated statement of income in general and administrative expenses. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company’s consolidated statements of income. During 2023, the Company paid the first payment for the above mentioned considerations in the amount of approximately SEK 7,250 (approximately $700). e. Major suppliers: In 2023, the Company acquired approximately 69% of its minerals (such as quartz) consumption from Turkey, of which approximately 63% was supplied by Mikroman Madencilik San ve TIC.LTD.STI ("Mikroman"), constituting approximately 44% of Company's total minerals, and approximately 32% was supplied by Ekom Eczacibasi Dis Ticaret A.Ş. (“Ekom”), constituting approximately 22% of Company’s total minerals. If Mikroman or Ekom cease supplying the Company with minerals or if the Company's supply of minerals generally from Turkey is adversely impacted, the Company's other suppliers may be unable to meet the Company's minerals requirements. In that case, the Company would need to locate and qualify alternate suppliers, which could take time, increase costs and require adjustments to the appearance of the Company's products. As a result, the Company may experience a delay in manufacturing, which could materially and adversely impact the Company's results of operations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they were made. b. Financial statements in U.S. dollars: The Company's revenues are generated in various currencies mainly in U.S. dollars (USD), Australian dollars (AUD) and Canadian dollars (CAD). In addition, most of the Company's costs are incurred in USD, NIS and EUR. The Company’s management believes that the USD is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the USD. The functional currency of the Company's foreign subsidiaries is the local currency in which the relevant subsidiary operates. Accordingly, monetary accounts maintained in currencies other than the USD are re-measured into dollars in accordance with Accounting Standards Codification, "Foreign Currency Matters" (“ASC 830”). All transaction gains and losses resulting from the re-measurement of monetary balance sheet items denominated in non-USD currencies are reflected in the statements of operations as financial income or expenses as appropriate. The financial statements of the Company’s subsidiaries of which the functional currency is not the USD have been translated into the USD. All amounts on the balance sheets have been translated into the USD using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of income have been translated into the USD using the monthly average exchange rate in accordance with ASC 830. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss), net in shareholders' equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly and majority-owned subsidiaries (see also Note 1). Inter-company transactions and balances, including profit from inter-company sales not yet realized outside of the Company, have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the date acquired. e. Short-term bank deposits: Short-term bank deposits are deposits with original maturities of more than three months but less than one year. Short-term bank deposits are presented at their cost, which approximates their fair value. f. Marketable securities: Marketable securities consist of corporate and governmental bonds. ("AFS"). Available-for-sale securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in financial income (expenses), net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income (expenses), net. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable securities with maturities of 12 months or less are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. The Company assessed g. Derivatives: ASC 815, “Derivative and Hedging” ("ASC 815"), requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Derivative instruments designated as hedging instruments: For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. To hedge against the risk of overall changes in cash flows resulting from foreign currency salary and other recurring payments during the periods, the Company has instituted a foreign currency cash flow hedging program. These forward contracts are designated as cash flow hedges, as defined by ASC 815, and are all effective, as their critical terms match the underlying transactions being hedged. As of December 31, 2023 and 2022, the notional amount of these forward contracts into which the Company entered was $21,162, and $41,699, respectively, and the Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward and options contracts to limit its exposure to foreign currencies . In addition, the Company entered into derivative instruments to partially manage its exposure to movements associated with the Styrene prices. Gains and losses related to such derivative instruments are recorded in financial expenses, net. At December 31, 2023 and 2022, the notional amount of foreign exchange and styrene forward and option contracts into which the Company entered was $0 and $13,247, respectively. The foreign exchange forward contracts will expire at various times through 2024. The following tables present fair value amounts of, and gains and losses recorded in relation to, the Company's derivative instruments and related hedged items: Balance sheet Fair value of derivative instruments Year ended December 31, 2023 2022 Derivative assets: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses 539 39 Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses - 333 Total 539 371 Derivative liabilities: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (450 ) Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (62 ) Styrene forward contract Accrued expenses and other liabilities - (430 ) Total - (942 ) The following tables present fair value amounts of, and gains and losses recorded in relation to, the Company's derivative instruments and related hedged items: Gain (loss) recognized in other comprehensive income, net Gain (loss) recognized in statements of income Year ended December 31, Statements of income Year ended December 31, 2023 2022 Item 2023 2022 Derivatives designated as hedging instruments: Foreign exchange forward contract 951 (709 ) Cost of revenues and Operating expenses (3,306 ) (2,555 ) Derivatives not designated as hedging instruments: Foreign exchange forward and options contracts - - Financial expenses, net 1,313 (1,506 ) Styrene forward contracts - - Financial expenses, net 113 (520 ) Total 951 (709 ) (1,880 ) (4,581 ) h. Inventories: Inventories are stated at the lower of cost and net realizable value. The Company periodically evaluates the quantities on hand relative to historical and projected sales volumes, aging, current and historical selling prices and contractual obligations to maintain certain levels of raw material quantities. Based on these evaluations, inventory provision is provided to cover risks arising from slow-moving items, discontinued products, excess inventories, net realizable value lower than cost and adjusted revenue forecasts. Cost is determined as follows: Raw Materials - cost is determined on a standard cost basis which approximates actual costs on a weighted average basis. Work-in progress and finished products - are based on standard cost (which approximates actual cost on a weighted average basis) which includes raw materials cost, labor and manufacturing overhead. Finished goods are stated at the lower of cost and net realizable value. The following table provides the details of the change in the Company's provision for inventory write-downs: December 31, 2023 2022 Inventory provision, beginning of year $ 21,738 $ 16,789 Increase in inventory provision 9,848 11,165 Write off (4,148 ) (6,216 ) Inventory provision, end of year $ 27,438 $ 21,738 i. Property, plant and equipment, net: 1. Property, plant and equipment are stated at cost, net of accumulated depreciation and investment grants. 2. Costs recorded prior to a production line completion are reflected as construction in progress, which are recorded building and machinery assets at the date of purchase. Construction in progress includes direct expenditures for the construction of the production line and is stated at cost. Capitalized costs include costs incurred under the construction contract: advisory, consulting and direct internal costs (including labor) and operating costs incurred during the construction and installation phase. 3. Depreciation is calculated using the straight-line method over the estimated useful life of the assets at the following annual rates: % Machinery and manufacturing equipment 4 - 33 (mainly 10) Office equipment and furniture 7 - 33 (mainly 7) Motor vehicles 10 - 30 (mainly 20) Buildings 4 - 5 Leasehold improvements Over the shorter of the term of the lease or the life of the asset j. Leases: The Company determines if an arrangement is a lease at inception and recognize in accordance with ASC 842 “Leases”. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses incremental borrowing rates based on the Company's implied credit rating which was based on Moody's Investors Service Rating Methodology for the Building Materials Industry (such credit rating was notched up due to collateralization) at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives, if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. See also Note 10. k. Impairment of long-lived assets: The Company's long-lived assets (assets group) to be held or used, including right of use assets, tangible and finite-lived intangible assets (other than goodwill), are reviewed for impairment in accordance with ASC 360 "Property, Plant and Equipment" ("ASC 360") whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company's evaluation of recoverability is performed at the lowest level of assets group to which identifiable cash flows are largely independent of the cash flows of other asset group. Recoverability of the asset group is measured by a comparison of the aggregate undiscounted future cash flows the asset group is expected to generate to the carrying amounts of the asset group. If such evaluation indicates that the carrying amount of the asset group is not recoverable, an impairment loss is calculated based on the excess of the carrying amount of the asset group over its fair value. The Company identified indicators for impairment, among others, slow down in demand due to global market conditions, lower production utilization in certain plants, increased inflation and higher interest rates, and the manufacturing facilities closure in Sdot Yam and in Richmond hill. In 2022, the Company recorded an impairment loss for the excess of the book value over its fair value related to Sdot Yam manufacturing facility, in the amount of $26,429. In 2023, the Company recorded an impairment loss for the excess of the book value over its fair value related to US manufacturing facility, in the amount of $27,486 and additional impairment loss related to Sdot Yam manufacturing facility in the amount of $986. Following the closure of Sdot Yam manufacturing facility during 2023, the Company evaluated it's right of use asset resulted from non-cancelable lease agreement effective through 2032. Based on future estimated sublease the Company recorded an impairment of $16,575 during 2023. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated useful lives of property and equipment and finite-lived intangible assets. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. l. Goodwill: Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired in the acquisition. Under ASC 350, "Intangibles-Goodwill and Other" ("ASC 350") goodwill is not amortized but instead is tested for impairment at least annually (or more frequently if impairment indicators arise). The goodwill impairment test is performed according to the following principles: (1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. (2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. The Company performed an annual goodwill impairment test during the fourth quarter of each fiscal year, or more frequently, if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company operates as one reporting unit, and concluded that all of the Company's reporting units should be aggregated and deemed as a single reporting unit for the purpose of performing the goodwill impairment test in accordance with ASC 350-20-35-35, since they have similar economic characteristics. The fair value of the reporting unit was estimated in accordance with . ASC 820, "Fair Value Measurements". The Company applied assumptions that marketplace participants would consider in determining the fair value of its reporting unit. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment. Significant estimates used in the fair value methodologies include estimates of future cash flows, future short-term and long-term growth rates and weighted average cost of capital. As of December 31, 2022, the company performed an impairment test of the goodwill in accordance with ASC350, and recognized a full impairment charge for its goodwill balances in the amount of $44,829. (see also Note 7). m. Warranty: The Company generally provides a standard (i.e. assurance type) warranty for its products, for various periods, depending on the type of product and the country in which the Company does business. The Company records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company's warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The following table provides the details of the change in the Company's warranty accrual: 2023 2022 January 1, $ 2,501 $ 2,680 Charged to costs and expenses relating to new sales 1,289 1,461 Costs of product warranty claims (1,792 ) (1,923 ) Foreign currency translation adjustments 360 283 December 31, 2,358 2,501 n. Revenue recognition: Revenues are recognized in accordance with ASC 606, revenue from contracts with customers when control of the promised goods or services is transferred to the customers, in an amount that the Company expects in exchange for those goods or services. The Company applies the following five steps in accordance to ASC 606: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. 1. Identify the contract with a customer: A contract 2. Identify the performance obligations in the contract: At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligation is a delivery of the Company’s products. 3. Determine the transaction price: The Company’s products that are sold through agreements with distributors are non-exchangeable, non-refundable, non-returnable and without any rights of price protection or stock rotation. Accordingly, the Company considers all the distributors to be end-consumers. For certain revenue transactions with specific customers, the Company is responsible also for the fabrication and installation of its products. The Company recognizes such revenues upon receipt of acceptance evidence from the end consumer which occurs upon completion of the installation. Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns in accordance with ASC 606, which is estimated, based primarily on historical experience as well as management judgment, and is recorded through a reduction of revenue. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. 4. Allocate the transaction price to the performance obligations in the contract: The majority of the Company’s revenues are sales of goods, therefore there is one main performance obligation that absorbs the transaction price. 5. Recognize revenue when a performance obligation is satisfied: Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers at a point in time, which affects when revenue is recorded. The majority of Company’s revenues deriving from sales of products which are recognized when control is transferred. o. Research and development costs: Research and development costs are charged to the statement of income as incurred. p. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC 740, "Income Taxes" (“ASC 740”). This statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company accounts for its uncertain tax positions in accordance with ASC 740-10. ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes as taxes on income. q. Advertising expenses: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2023, 2022 and 2021 were $15,726, $14,777 and $15,307, respectively. r. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and trade receivables. The Company's cash and cash equivalents are invested primarily in USD, mainly with major banks in Israel. The Company's debt marketable securities include investments in highly-rated corporate debentures (located mainly in U.S.) and governmental bonds. The financial institution that holds the Company's debt marketable securities is a major financial institution located in the United States. The Company believes that its marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in an issuer (see Note 2f). The Company's trade receivables are derived from sales to customers located mainly in the United States, Australia, Canada, Israel and Europe. The Company performs ongoing credit evaluations of its customers and to date has not experienced any substantial losses. In certain circumstances, the Company requires letters of credit or prepayments. An allowance for credit losses is provided with respect to specific receivables that the Company has determined to be doubtful of collection. For those receivables not specifically reviewed, provisions are recorded, based upon the age of the receivable, the collection history, current economic trends and management estimates of future economic conditions. No customer represented 10% or more of the Company’s total accounts receivables, net as of December 31, 2023 and 2022. The following table provides the detail of the change in the Company's allowance for credit loss: 2023 2022 January 1, $ 9,756 $ 9,036 Charges to expenses 3,654 2,141 Write offs (1,158 ) (1,144 ) Foreign currency translation adjustments (38 ) (277 ) December 31, $ 12,214 $ 9,756 s. Severance pay: The Company's liability for severance pay, with respect to its Israeli employees, is calculated pursuant to Israeli severance pay law and employee agreements based on the most recent salary of the employees. The Company's liability for all of its Israeli employees is provided for by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset on the Company's balance sheet. The deposited funds include profits or losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to Israeli severance pay law or labor agreements. Majority of the agreements with employees specifically state, in accordance with section 14 of the Severance Pay Law, 1963 ("Section 14"), that the Company's contributions for severance pay shall be instead of severance compensation and that upon release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, since the Company has signed agreements with its employees under Section 14, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance pay expenses for the years ended December 31, 2023, 2022 and 2021 amounted to approximately $2,102, $2,614 and $2,539, respectively. t. Fair value of financial instruments: In The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2023 and 2022 by level within the fair value hierarchy: Fair value measurements Fair Value as of December 31, Description Hierarchy 2023 2022 Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ - $ 27 Short-term marketable securities: Corporate bonds Level 2 $ - $ 7,077 Derivative assets Level 2 $ 539 $ 371 Liabilities: Derivative liabilities Level 2 $ - $ (942 ) Redeemable Non-Controlling Interest (*): Level 3 $ 7,789 $ 7,903 (*) The change in fair value of redeemable non-controlling interest valued using significant unobservable inputs (Level 3), was included in note 2x. The Company estimated the fair value of redeemable non-controlling interest using Monte Carlo simulation. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, the discount rate and the volatility. The fair value measurement is based on inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from assumptions made within the probability-weighted analyses will result in adjustments to this liability in future periods. Measured at fair value on a nonrecurring basis: (a) As of December 31, 2023, in accordance with Subtopic 360-10, long-lived assets held and used were written down to their fair value, resulting in an impairment charge of $28,472 related to Property Plant and Equipment included in US and Sdot Yam manufacturing facility, and $16,575 related to ROU asset related to Sdot Yam. As of December 31, 2022, long-lived assets held and used were written down to their fair value, resulting an impairment charge of $26,429, related to Property Plant and Equipment included in Sdot Yam facility production. (b) As of December 31, 2023 and 2022, the goodwill balance was $0. During fiscal year 2022, in accordance with Subtopic 350-20, goodwill was written down in an impairment charge of $44,829, which was included in the consolidated statements of income for that period. The carrying amounts of financial instruments not measured at fair value, including cash and cash equivalents, trade receivables, other accounts receivables, trade payables, accrued expenses and other liabilities, short term loans and short term bank credit, approximate their fair value due to the short-term maturities of such instruments. u. Basic and diluted net income (loss) per share: Basic net income (loss) per share ("Basic EPS") is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income (loss) per share ("Diluted EPS") gives effect to all dilutive potential ordinary shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. The dilutive effect of outstanding stock options is computed using the treasury stock method. For the years ended December 31, 2023, 2022 and 2021 there were approximately 2,310,543, 1,534,500, and 0 outstanding stock options, respectively, that were excluded from the computation of Diluted EPS, that would have had an anti dilutive effect if included. v. Comprehensive income and accumulated other comprehensive income (loss): Comprehensive income consists of two components, net income and other comprehensive income ("OCI"). OCI refers to revenue, expenses, and gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Company’s OCI consists of foreign currency translation adjustments from those subsidiaries not using the USD as their functional currency and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and marketable securities. The total accumulated other comprehensive income ("AOCI"), net of tax was comprised as follows: December 31, 2023 2022 Accumulated loss on marketable securities $ - $ (125 ) Accumulated income (loss) on derivative instruments 539 (412 ) Accumulated foreign currency translation differences and other (8,941 ) (9,041 ) Total accumulated other comprehensive loss, net $ (8,402 ) $ (9,578 ) The following table summarizes the changes in AOCI, net of taxes for the year ended: Unrealized gains (losses) on derivative instruments Unrealized gains (losses) on marketable securities Accumulated foreign currency translation differences and other Total Balance at January 1, 2022 297 (40 ) (961 ) (704 ) Other comprehensive income (loss) before reclassifications (3,264 ) (85 ) (8,080 ) (11,429 ) Amounts reclassified from AOCI 2,555 - - 2,555 Net current period OCI (709 ) (85 ) (8,080 ) (8,874 ) Balance at December 31, 2022 (412 ) (125 ) (9,041 ) (9,578 ) Other comprehensive income (loss) before reclassifications (2,355 ) 125 100 (2,130 ) Amounts reclassified from AOCI 3,306 - - 3,306 Net current period OCI 951 125 100 1,176 Balance at December 31, 2023 539 - (8,941 ) (8,402 ) The following table shows the amounts reclassified from AOCI into the Consolidated Statements of Income, and the associated financial statement line item, for 2023 and 2022: December 31, 2023 2022 Affected line item in the consolidated statements of income Cost of revenues $ 2,287 $ 1,921 Research and development 102 68 Marketing and selling 414 249 General and administrative 503 317 Total loss $ 3,306 $ 2,555 w. Accounting for stock-based compensation: Equity share based payment: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company accounts for employees and directors’ share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company’s accounting policy is to account for forfeitures as they occur. The exercise price of each option is generally Company's stock price on the date of the grant. Options generally become exercisable over approximately three four-year four-year In 2023 and 2022, the Company estimated the fair value of stock options granted using the Black-Scholes option pricing model with the following weighted average assumptions: December 31, 2023 2022 Dividend yield 0 - 3% 0 - 3% Expected volatility 40-46.0% 40-45.0% Risk-free interest rate 4-4.9% 1-4.3% Expected life (in years) 4-6.9 4-5.5 The Company used volatility data in accordance with ASC 718 and based on Company's historical data. The computation of risk free interest rate is based on the rate available on the date of grant of a zero-coupon U.S. government bond with a remaining term equal to the expected term of the option. The expected term of options granted is calculated using the simplified method (being the average between the vesting periods and the contractual life of the options). In case of grant to Company's CEO or directors, the expected term equales to the contractual life. For the vast majority of the options granted in 2023 and 2022, the dividend yield is zero, due to adjustment mechanism with respect to the exercise price upon payment of a dividend. For those options granted without adju |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3: MARKETABLE SECURITIES As of December 31, 2023, there is no outstanding marketable securities held by the company. The following is a summary of available-for-sale marketable securities at December 31, 2022: Amortized cost Gross unrealized gains Gross unrealized losses Accrued Interest Fair value Available-for-sale – matures within one year: Corporate bonds $ 7,164 $ - $ 126 $ 39 $ 7,077 Total $ 7,164 $ - $ 126 $ 39 $ 7,077 As of December 31, 2023 and 2022 the Company didn’t record an allowance for credit losses for its AFS marketable debt securities. |
OTHER ACCOUNTS RECEIVABLE AND P
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | NOTE 4:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2023 2022 Prepaid expenses $ 5,388 $ 6,313 Government authorities 4,410 13,005 Advances to suppliers 3,102 3,439 Derivatives 539 371 Other receivables (*) 12,050 9,442 $ 25,489 $ 32,570 (*) Including mainly insurance receivables, see also note 11. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5:- INVENTORIES December 31, 2023 2022 Raw materials $ 11,884 $ 32,443 Work-in-progress 2,390 4,058 Finished goods 122,172 201,731 $ 136,446 $ 238,232 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6:- PROPERTY, PLANT AND EQUIPMENT, NET December 31, 2023 2022 Cost: Machinery and manufacturing equipment, net (1) $ 339,657 $ 334,156 Office equipment and furniture 40,012 36,079 Motor vehicles 4,933 5,139 Buildings and leasehold improvements 131,269 129,679 Prepaid expenses related to operating lease (2) 939 939 516,810 505,992 Accumulated depreciation and impairment: Machinery and manufacturing equipment, net 249,499 230,063 Office equipment and furniture 27,866 24,491 Motor vehicles 3,908 3,832 Buildings and leasehold improvements 56,984 51,722 Prepaid expenses related to operating lease 173 163 Impairment of fixed assets (3) 54,900 26,429 393,330 336,700 Depreciated cost $ 123,480 $ 169,292 (1) Presented net of investment grants received in the total amount of $7,463. (2) Until 2012, the Company leased land from the Israel Lands Administration ("ILA") for its Bar-Lev manufacturing facility. The lease term started on February 6, 2005. The lease is for an initial non-cancellable term of 49 years, with a renewal option of an additional 49 years. (3) Non cash pre-tax impairment charges recognized in 2023 were $28,472, Non cash pre-tax impairment charges recognized in 2022 were $26,429 (see also Note 2k) Depreciation expenses were $27,387, $33,813 and $32,394 for the years ended December 31, 2023, 2022 and 2021, respectively. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [Abstract] | |
GOODWILL AND INTANGIBLES | NOTE 7:- GOODWILL AND INTANGIBLES a. Goodwill: The changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 are as follows: Balance as of January 1, 2022 $ 45,800 Acquired through business combination (*) 792 Goodwill Impairment (**) (44,829 ) Foreign currency translation adjustments (1,763 ) Balance as of December 31, 2022 and 2023 $ - (*) Resulting from Magrab acquisition, see also Notes 1(d). (**)The Company performs its annual testing of goodwill in the fourth quarter of each year in accordance with ASC 350 (see also Note 2l). During the fourth quarter of 2022, the Company conducted an impairment test of its reporting unit. Due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates, a pre-tax, non-cash goodwill impairment charge of $44,829 was recorded. b. Intangible assets: December 31, 2023 2022 Original amounts: Customer relationships (*) $ 13,983 $ 13,983 Accumulated amortization: Customer relationships (7,687 ) (5,067 ) Foreign currency translation adjustment (39 ) (99 ) Total intangibles assets $ 6,257 $ 8,817 (*) In 2022, includes $1,789 Acquired through business combination of Magrab. (1) Amortization expense amounted to $2,620 and $2,531 for the years ended December 31, 2023 and 2022, respectively. (2) Estimated amortization expenses for the following years as of December 31, 2023: 2024 2,662 2025 2,472 2026 224 2027 224 2028 224 2029 and on 451 $ 6,257 |
SHORT-TERM BANK CREDIT AND CURR
SHORT-TERM BANK CREDIT AND CURRENT MATURITIES OF LONG-TERM LOAN | 12 Months Ended |
Dec. 31, 2023 | |
Short-term Debt [Abstract] | |
SHORT-TERM BANK CREDIT AND CURRENT MATURITIES OF LONG-TERM LOAN | NOTE 8:- SHORT-TERM BANK CREDIT AND CURRENT MATURITIES OF LONG-TERM LOAN Short-term bank credit and loans are classified as follows: Weighted average interest Currency December 31, December 31, 2023 2022 2023 2022 % Short-term bank credit (*) USD - 6.3 $ - $ 21,183 Short-term bank credit (**) INR 10.1 7.6 $ 2,801 $ 2,674 Current maturities of Long- term bank loan and other (**) INR 8.9 7.6 $ 2,317 $ 2,278 Total $ 5,118 $ 26,135 (*) As of December 31, 2023, the company has no credit lines in Israeli banks. The credit line outstanding as of December 31, 2022, in Israeli banks was fully repaid during 2023. (**) Credit line and bank loan in Lioli - During 2022, Lioli engaged with a new bank and signed a new loan agreement. The loan agreement with the bank in Lioli contains customary covenants. Lioli is in compliance with the requirement of the financial covenants under the agreement of own capital contribution. The Loan Agreement also contains certain customary negative covenants that require Lioli to refrain from certain actions unless bank’s consent obtained. Lioli debt is secured by a SBLC (Stand By Letter of Credit) from Caesarstone and floating charge on all of Lioli’s assets. (see also Note 15). |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 9:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2023 2022 Employees and payroll accruals $ 13,410 $ 13,029 Accrued expenses 8,833 12,003 Advances from customers 2,413 1,998 Taxes payable 5,617 4,892 Warranty provision 1,154 1,239 Derivatives - 942 Sales return provision 875 604 Operating lease liability short-term 23,932 22,741 Contingent consideration liability and other 660 1,329 $ 56,894 $ 58,777 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 10:- LEASES As of December 31, 2023, the Company had operating lease agreements for facilities and vehicles in the United States, Canada, Australia, United Kingdom, European Union, Israel, India, Sweden and Singapore. The Company’s leases have remaining lease terms of up to 15 years, some of which include options to extend the leases for up to five years. Such options are included in the lease term when it is reasonably certain that the option will be exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet, the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. a. The following table summarizes the Company’s lease-related assets and liabilities recorded on the consolidated balance sheet: Classification December 31, 2023 December 31, 2022 Assets: Operating lease assets (*) Operating lease right-of-use assets $ 120,156 $ 144,098 Total lease assets $ 120,156 $ 144,098 Liabilities: Current lease liabilities Accrued expenses and other liabilities 23,932 22,741 Long-term lease liabilities Long-term operating lease liabilities 114,146 124,353 Total lease liabilities $ 138,078 $ 147,094 (*) Following the closure of Sdot Yam plant, the Company evaluated it's right of use asset resulted from non-cancelable lease agreement effective through 2032. Based on future estimated sublease the Company recorded an impairment of $16,575 during 2023. Lease term and discount rate: December 31, 2023 December 31, 2022 Weighted-average remaining lease term — operating leases 7.29 years 7.92 years Weighted-average discount rate — operating leases 2.74% 2.47% b. The components of operating lease cost for the year ended December 31, 2023 were as follows: December 31, 2023 December 31, 2022 Operating lease cost: Operating lease expense $ 28,771 $ 27,583 Variable lease expense (*) 1,113 2,123 Sublease income (477 ) (999 ) Total operating lease cost $ 29,407 $ 28,707 (*) Includes short-term leases, index, maintenance and variable lease costs. c. The maturity of the Company’s operating lease liabilities for contracts with lease term greater than one year as of December 31, 2023 are as follows: December 31, 2024 25,963 2025 23,534 2026 21,206 2027 17,816 2028 14,997 2029 and thereafter 47,780 Total future lease payments (*) 151,296 Less imputed interest (13,218 ) Total $ 138,078 (*) Total lease payments have not been reduced by sublease rental payments of approximately $326 due in the future under non-cancelable subleases. d. For additional information regarding lease transactions between related parties, refer to Note 14. e. The following table presents supplemental cash flow information related to the lease costs for operating leases: December 31, 2023 December 31, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 27,471 $ 26,003 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES a. Legal proceedings and contingencies: Claim by former South African distributor In December 2007, the Company terminated its agency agreement with its former South African agent, World of Marble and Granite (“WOMAG”), on the basis that WOMAG had breached the agreement. During the years the Company and WOMAG filed counter claims in the court of South Africa and in Israel. Following negotiations held during 2020 between the parties, on January 15, 2021, the Company paid WOMAG an amount of approximately EUR 7.2 million ($8,900) as part of the settlement for the majority of WOMAG’s claim for breach of contract. The remaining minimal disputed amounts were settled during 2022. Bodily injury claims related to exposure to silica dust: Overview: The Company is subject to numerous claims mainly by fabricators, their employees or National Insurance Institute (the Israeli insurance institute -"NII" or Australian states workers compensation regulators), alleging that fabricators contracted illnesses, including silicosis, through exposure to silica particles during cutting, polishing, sawing, grinding, breaking, crushing, drilling, sanding or sculpting Company's products. Individual claims in Israel As of December 31, 2023, the Company is subject to 150 pending bodily injury claims (individual claims and NII subrogation or related future probable claims) that have been submitted in Israel since 2008 against the Company directly, or that have named the Company as third-party defendant by fabricators or their employees in Israel, by the injurer's successors, by the NII or by others. As of December 31, 2023, the Company has 9 pending pre-litigation demand letters on behalf of certain fabricators in Israel. Most of the claims in Israel do not specify a total amount of damages sought, as the plaintiff’s future damages are intended to be determined at trial. In November 2015 and in May 2017, the Company entered into agreements with the State of Israel and with its main distributors in Israel, respectively, with the consent of its insurance carriers, under which the Company agreed with the State and each of its main distributors to cooperate, subject to certain terms, with respect to the management of the individual claims that have been filed and claims that may be submitted during a certain time period (NII claims are excluded from the Company’s agreement with the State) and on the apportionments of the total liability between the Company , the State, and the distributors, if found, in such claims. During January 2020, the State of Israel approved an additional 5 year extension to its agreement with the company. Class action in Israel: In April 27, 2014, a lawsuit by a single plaintiff and a motion for the recognition of this lawsuit as a class action was filed against the Company in the Central District Court in Israel. The plaintiff alleges that, if the lawsuit is recognized as a class action, the claim against the Company is estimated to be NIS 216 million (approximately $56,180). In addition, the claim includes an unstated sum in compensation for special and general damages. On January 4, 2018, the Company and the plaintiff submitted to the Israeli District Court a settlement agreement, which was approved in July 2021. The claim was dismissed and during 2022, the Company paid without any admission of liability, an aggregate amount of NIS 9.0 million (approximately $2,557) to fund certain safety related equipment at fabrication facilities in Israel, as well as plaintiff’s compensation and legal expenses. The amounts transferred were fully utilized during 2023. During 2021 the Company received refund of NIS 7.0 million (approximately $2,100) from its insurance carrier which was recorded as a reduction of legal settlements expenses. Individual claims in Australia: As of December 31, 2023, Company’s subsidiary in Australia is subject to 74 pending bodily injury claims that have been submitted in Australia since 2018 against it directly, or that have named the Company as third-party defendant by fabricators in Australia. Commencing 2021, the Company reassessed the expected outcome of the individual product liability claims in Australia following Company's and its insurance carrier consent for several settlements. Based on this development and also based on its legal advisors’, contingent losses related to the product liability individual claims are probable, and pursuant to ASC 450, an accrual has been recorded for the loss contingencies related to such claims. Individual claims in the U.S.: As of December 31, 2023, Company’s subsidiary in U.S. (Caesarstone U.S.) is subject to 22 pending bodily injury claims that have been submitted in U.S. against it directly, or that have named the Company as third-party defendant by fabricators in U.S. Since such claims are at an early stage in accordance with ASC 450, therefore no provision is provided. Summary of the provisions for claims mentioned: In order to reasonably estimate the losses for bodily injury claims in Israel and Australia reflected in the table below, the Company performed a case-by-case analysis with its legal advisors of the relevant facts that were reasonably available to it, related to the claims filed, including, among other things, the specific known or estimated health condition of the claimants, their ages, salaries, related probable future subrogation claims from the NII, and other factors that might have an impact on the final outcome of such claims. The Company will continue to regularly monitor changes in facts for each claim and will update its best estimate if required. Accordingly, the reserve for bodily injury claims in Israel and Australia (including class action) as of December 31, 2023 and 2022 totaled to $ and $ respectively, of which $ and $ is reported in short term legal settlements and loss contingencies and $ and $ is reported in long-term liabilities. The Company currently cannot estimate the number of claimants that may file claims in the future or the nature of their claims in order to conclude probability or the range of loss. The Company updated its provision in 2023, 2022 and 2021 to reflect the outstanding claims in the below table, and provided a provision also for related NII unasserted claims, based on its legal advisors’ and according to ASC 450, taking into consideration new claims filed, settlements reached and other new information available. A summary of bodily injury claims for which the Company provided provision is as follows: Year ended December 31, 2023 2022 2021 Outstanding claims, January 1, 221 203 173 New claims 63 87 73 Settled and dismissed claims (60 ) (69 ) (43 ) Outstanding claims, December 31 224 221 203 Insurance The Company maintains insurance for product liability claims, including for bodily injury claims related to exposure to silica dust, where such insurance cover can be obtained. The Company has purchased insurance policies for the period from 2008 and to date from several insurance carriers that provide coverage for product liability losses, subject to certain terms and conditions, and the related defense costs up to a certain limit per case and per policy year. As of December 31, 2023, the Company has regional product liability insurance policies, other than in Israel and Australia. Specifically, in the United States and Canada, local policy covers up to $20 mililion and CAD 20 million respectively, per claim or per year, subject to certain terms and limitations, with relatively low deductibles. The collectability of the Company's insurance receivables is regularly evaluated, and the amounts recorded are probable of collection. This conclusion is based on analysis of the terms of the underlying insurance policies, experience in successfully recovering individual product liability claims from Company's insurers, the insurance carrier was party to the agreement with the State of Israel and the financial ability of the insurance carriers to pay the claims and the relevant facts and applicable law. As of December 31, 2023, and 2022, the insurance receivable totaled to $8,361 and $7,306, respectively, reported in the other accounts receivable and prepaid expenses. During the years ended December 31, 2023 and 2022, legal settlements and loss contingencies expenses related to the bodily injury claims related to exposure to silica dust totaled to a credit of $4,847 and expense of $597, respectively, which reflects the deductible amounts for claims covered by insurance policies, claims not covered and the impact of settlements including the related legal costs. General: From time to time, the Company is involved in other legal proceedings and claims in the ordinary course of business related to a range of matters. While the outcome of these other claims cannot be predicted with certainty, the Company monitors and estimates the possible loss deriving from these claims based on new information available and based on its legal advisors, and believes that it recorded an adequate reserve for these claims in accordance with ASC 450. b. Purchase obligation: The Company's significant contractual obligations and commitments as of December 31, 2023, are for purchase obligations to certain suppliers and amounted to $18,611 for the fiscal year 2024. c. Pledges and guarantees: 1. As of December 31, 2023, the Company had outstanding guarantees and letters of credit with various expiration dates in a principal amount of approximately $8,327 related to facilities, machinery and equipment, and other miscellaneous guarantees. 2. See also note 15. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 12:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax rate: The corporate tax rate in Israel was 23% in 2023 and 2022, and 2021. 2. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, Caesarstone Ltd. calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into New Israeli Shekels according to the exchange rate as of December 31st of each year. 3. Tax benefits under Israel's Law for the Encouragement of Industry (Taxes), 1969: The Company is an "Industrial Company," as defined by the Law for the Encouragement of Industry (Taxes), 1969, and as such, the Company is entitled to certain tax benefits, primarily amortization of costs relating to know-how and patents over eight years, accelerated depreciation and the right to deduct public issuance expenses for tax purposes. 4. Tax benefits under the Law for the Encouragement of Capital Investments, 1959: According to the Law for the Encouragement of Capital Investments, 1959 (the "Encouragement Law"), the Company is entitled to various tax benefits by virtue of the "Preferred Enterprise" status granted to its enterprises, in accordance with the Encouragement Law. The Company chose to be taxed according to the "Preferred Enterprise" track under Amendment No. 68 to the Encouragement Law (the "Amendment No. 68"). In order to implement Amendment No. 68 and to be taxed under the "Preferred Enterprise" track, the Company waived the tax benefits of the previous tracks -"Approved Enterprise" and "Beneficiary Enterprise" - under the Encouragement Law, starting from the 2011 tax year. The principal benefits by virtue of the Encouragement Law are the following: Tax benefits and reduced tax rates under the Preferred Enterprise track: The tax rate on preferred income from a Preferred Enterprise commencing 2017 is 16% and in development area A – 7.5% (relates to Company's manufacturing plant in Bar-Lev industrial zone). During 2023 the company closed it’s Sdot-Yam manufacturing facility, resulting future tax benefits only from it’s manufacturing facility in Bar-Lev industrial zone. In order to receive benefits as a "Preferred Enterprise," Amendment No. 68 states certain conditions must be met. The basic condition for receiving the benefits under Amendment No. 68 is that the enterprise contributes to the country's economic growth and is a competitive factor for the gross domestic product (a "competitive enterprise"). In order to comply with this condition, the Encouragement Law prescribes various requirements. As for industrial enterprises, in each tax year, one of the following conditions must be met: 1. Its main field of activity is biotechnology or nanotechnology as approved by the Head of the Administration of Industrial Research and Development. 2. The industrial enterprise's sales revenues in a specific market during the tax year do not exceed 75% of its total sales for that tax year. A "market" is defined as a separate country or customs territory. 3. At least 25% of the industrial enterprise's overall revenues during the tax year were generated from the enterprise's sales in a specific market with a population of at least 14 million starting from 2012 tax year. Amendment No. 68 also prescribes that any dividends distributed to individuals or foreign residents from the preferred enterprise's earnings as discussed above will be subject to tax at a rate of 20% from 2014 and onwards (or a reduced rate under an applicable double tax treaty). Since the Company chose to apply the provisions of Amendment No. 68, by submitting the waiver form before June 30, 2015, the Company is eligible to distribute taxed earnings derived from a Beneficiary Enterprise and/or Approved Enterprise to an Israeli company without being subject to withholding tax. In development area A, in addition to the tax benefits, as mentioned above, some of the Company's facilities are eligible for grants at rate of 20% and/or loans, subject to an approval of the Israeli Investment Center. Accelerated depreciation: The Company is eligible for a deduction of accelerated depreciation on machinery and equipment used by the Approved Enterprise or the Beneficiary Enterprise or the Preferred Enterprise at a rate of 200% (or 400% for buildings) from the first year of the asset's operation. Conditions for entitlement to benefits: The above mentioned benefits are contingent upon the fulfillment of the conditions stipulated by the Encouragement Law, regulations published thereunder and the letters of approval for the investments in the Preferred Enterprises, as discussed above. Non-compliance with the conditions may cancel all or part of the benefits and require a refund of the amount of the benefits, including interest. The Company's management believes that the Company meets the aforementioned conditions. The tax-exempt income attributable to the Approved Enterprise cannot be distributed to shareholders without subjecting the Company to taxes. If dividends are distributed out of tax-exempt profits, the Company will then become liable for tax at the rate applicable to its profits from the Approved Enterprise in the year in which the income was earned, as if it was not under the "Alternative benefits track" (taxed at the rate of no more than 25% as of December 31, 2023). Under the Encouragement Law, tax-exempt income generated under the Approved Enterprise status will be taxed, among other things, upon a dividend distribution or complete liquidation in accordance with the Encouragement Law. In November 2021, amendment No. 74 to the Investment Law (the “Trapped Earnings Law”) came into effect. Amendment 74 to the Encouragement Law: On November 15, 2021, the Economic Efficiency Law (Legislative Amendments for Achieving Budget Targets for the 2021 and 2022 Budget Years), 2021 ("the Economic Efficiency Law"), was enacted. This Law establishes a temporary order allowing Israeli companies to release tax-exempt earnings ("trapped earnings" or "accumulated earnings") accumulated until December 31, 2020, through a mechanism established for a reduced corporate income tax rate applicable to those earnings ("the Temporary Order"). In addition to the reduced corporate income tax (CIT) rate, Article 74 to the Encouragement Law was amended whereby effective from August 15, 2021, for any dividend distribution (including a dividend as per Article 51B to the Encouragement Law) by a company which has trapped earnings, there will be a requirement to allocate a portion of that distribution to the trapped earnings. The Company distributed dividends during November 2021 and during September 2022, both was partially attributed to the above amendment. Of the Company's retained earnings as of December 31, 2023, approximately $20,169 is tax-exempt earnings attributable to its Approved Enterprise. As of December 31, 2023, if the income attributed to the Approved Enterprise would have been distributed as a dividend, the Company would have incurred a tax liability of approximately $5,042. According to the Temporary Order, the reduction of CIT will apply to earnings that are released (with no requirement for an actual distribution) within a period of one year from the date of enactment of the Temporary Order. The reduction in the CIT is dependent on the proportion of the trapped earnings that are released in relation to the total trapped earnings, and on the foreign investment percentage in the years the earnings were generated. Consequently, the larger the proportion of the trapped earnings that are released, the lower the tax in respect of the distribution. The minimum tax rate applied to the company is 10%. Further, a company that elects to pay a reduced CIT is required to invest in its industrial enterprise a designated amount in accordance with the Economic Efficiency Law within a period of five years commencing from the tax year in which the election is made. The designated investment should be utilized for the acquisition of production assets, and/or investments in research and development and/or compensation to additional new employees. The Company did not apply to such order. b. Non-Israeli subsidiaries taxation: Non-Israeli subsidiaries are taxed based on tax laws in their countries of residence. Statutory tax rates for Non-Israeli subsidiaries are as follows: Company incorporated in United States – 25.3% tax rate (federal and state). Company incorporated in Australia - 30% tax rate. Company incorporated in Singapore - 17% tax rate. Company incorporated in Canada – 27.7% tax rate (federal and state). Company incorporated in England – 25% tax rate. Company incorporated in India – 30% tax rate. Company incorporated in Sweden – 20.6% tax rate. Israeli income taxes and foreign withholding taxes were not provided for undistributed earnings of the Company's foreign subsidiaries. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. Accordingly, no deferred income taxes have been provided. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. c. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2023 2022 Deferred tax assets: Goodwill and Intangible assets $ 227 $ 253 Other temporary differences including operating lease (1) 28,558 35,277 Temporary differences related to inventory (2) 9,068 8,150 Property and equipment 3,315 2,834 Carryforward losses, deductions and credits (3) 10,451 4,569 Less-valuation allowance (29,198 ) (1,796 ) Total deferred tax assets 22,421 49,287 Deferred tax liabilities: Property and equipment (2,844 ) (8,680 ) Intangible Assets (1,533 ) (1,687 ) Other temporary differences including operating lease (17,989 ) (26,957 ) Total deferred tax liabilities (22,366 ) (37,324 ) Deferred tax $ 55 $ 11,963 (1) Deriving mainly from provision for labor related, provision for loss contingencies and lease accounting in accordance with ASC842. (2) Deriving mainly from the provision for slow moving inventory and IRS section 263(a). (3) Parent company and certain subsidiaries have tax loss carry-forwards totaling approximately $141,560 which can be carried forward and offset against taxable income, these carry-forward tax losses have no expiration date. In addition to the above, the Company carried back its 2020 U.S. subsidiaries losses in accordance with the CARES act. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the schedule of reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. During 2023, the Company recorded a full valuation allowance on deferred tax assets in the U.S and Israel in accordance with ASC 740, due to accumulated 3-year loss position and its estimation that future taxable income is not probable. d. A reconciliation of the Company's effective tax rate to the statutory tax rate in Israel is as follows: Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income $ (86,959 ) $ (55,608 ) $ 19,839 Statutory tax rate in Israel 23 % 23 % 23 % Income (loss) taxes at statutory rate $ (20,001 ) $ (12,790 ) $ 4,563 Increase (decrease) in tax expenses resulting from: Tax benefit arising from reduced rate as an "Preferred Enterprise" 9,996 2,622 (1,245 ) Non-deductible expenses, net 1,818 10,745 1,039 Increase (decrease) in taxes from prior years, also related to settlement with tax authorities 419 (735 ) (1,502 ) Tax adjustment in respect of foreign subsidiaries' different tax rates (1,120 ) (239 ) (650 ) Provision for withholding tax assets 2,828 - - Uncertain tax position - - 110 Changes in valuation allowance 27,402 1,079 (385 ) Others (61 ) 76 20 Income tax expense $ 21,281 $ 758 $ 1,950 Effective tax rate (24.5 )% (1 )% 10 % Per share amounts (basic and diluted) of the tax benefit resulting from an "Preferred Enterprise" $ 0.29 $ (0.04 ) $ (0.04 ) e. Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2023 2022 2021 Domestic $ (38,831 ) $ (18,671 ) $ 19,539 Foreign (48,128 ) (36,937 ) 300 $ (86,959 ) $ (55,608 ) $ 19,839 f. Tax expenses on income are comprised as follows: Year ended December 31, 2023 2022 2021 Current taxes $ 9,373 $ 6,832 $ 6,423 Deferred taxes 11,908 (6,074 ) (4,473 ) $ 21,281 $ 758 $ 1,950 Domestic $ 14,084 $ 436 $ 1,190 Foreign 7,197 322 760 $ 21,281 $ 758 $ 1,950 g. Tax assessments: The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign authorities. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. The following describes the open tax years, by major tax jurisdiction, as of December 31, 2023: Israel 2019 – present Australia 2019 - present Canada 2018 - present United States 2019 - present Singapore 2019 - present England 2019 – present India 2022 – present Sweden 2022 - present h. Uncertain tax positions: The balances at December 31, 2023 and 2022 include a liability for unrecognized tax benefits of $2,891, for tax positions which are uncertain of being sustained. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: Gross tax liabilities at January 1, 2021 $ 3,663 Increase in tax positions for current year 110 Gross tax liabilities at December 31, 2021 3,773 Increase in tax positions for current year (882 ) Gross tax liabilities at December 31, 2022 2,891 Release of tax position of prior years - Gross tax liabilities at December 31, 2023 $ 2,891 The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company could be required to adjust the provision for income taxes in the period such resolution occurs. The Company does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13:- SHAREHOLDERS' EQUITY a. The Company's share capital consisted of the following as of December 31, 2023 and 2022: Authorized Outstanding December 31, December 31, 2023 2022 2023 2022 Number of shares Ordinary shares of NIS 0.04 par value each 200,000,000 200,000,000 34,532,452 34,507,303 b. Ordinary shares: Ordinary shares confer on their holders voting rights and the right to receive dividends. c. Dividends: In February 2020 the Company revised its dividend policy so that cash dividend will be distributed up to 50% of the year to date reported net income attributable to controlling interest less any amounts already paid as dividend for the respective period, provided that such calculated dividend is not less than $0.10 per share. Any dividend payment is subject to approval by the Company’s board of directors. Pursuant to the above policy the Company paid a total amount of $8,625 in 2022 mostly out of its non-tax exempt profit under the beneficiary enterprise (see also note 12). d. Compensation plan: On January 1, 2011, the Board of Directors adopted the Caesarstone Ltd 2011 Incentive Compensation Plan (the “2011 Plan”) pursuant to which non-employee directors, officers, employees and consultants may receive stock options and RSUs exercisable for ordinary shares, if certain conditions are met. Under the plan the Company can grant up to 3,275,000 ordinary shares. On September 17, 2020 the Board of Directors adopted Caesarstone Ltd 2020 Share incentive plan (the “2020 Plan”). Under the 2020 Plan up to 2,500,000 ordinary shares may be granted. In addition, any shares that remain available for issuance under the 2011 Plan, as of the Effective Date, which shall not exceed 1,000,000 Shares, may also be granted under the 2020 Plan. As of December 31, 2023, there were 2,340,110 options and restricted stock units (RSUs) outstanding under the Plans and 1,673,915 shares available or reserved for future issuance under the plan. As of December 31, 2023, there was $2,770 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted to employees and directors under the Plan. That cost is expected to be recognized over a weighted-average period of 3.0 years. The following is a summary of activities relating to the Company’s stock options granted to employees under the Company’s plan during the year ended December 31, 2023: Number of options Weighted average exercise price Aggregate intrinsic value Outstanding - beginning of the year 1,546,150 14.58 - Granted 1,315,800 4.71 Exercised - - Forfeited (582,550 ) 15.72 Outstanding - end of the year 2,279,400 8.63 - Options exercisable at the end of the year 641,325 15.41 - Vested and expected to vest 641,325 15.41 - The weighted average fair value of options granted during 2023, 2022 and 2021 was $1.9, $3.8 and $5.2 per option. The weighted average fair value of options vested during 2023, 2022 and 2021 was $12.96, $12.30 and $14.07 per option. The intrinsic value of options exercised during 2023, 2022 and 2021 was $0. The intrinsic value of exercisable options (the difference between the Company’s closing share price on the last trading day in fiscal year 2023 and the average exercise price of in-the-money options, multiplied by the number of in-the-money options) included above represents the amount that would have been received by the option holders had all option holders exercised their options on December 31, 2023. This amount changes based on the fair market value of the Company’s ordinary shares. The following is a summary of activities relating to the Company’s RSUs granted to employees under the Plan during the year ended December 31, 2023: Number of RSUs Weighted average fair value Aggregate intrinsic value Outstanding - end of the year 74,887 12.17 428 Granted 23,809 4.11 Exercised (25,477 ) 11.77 Forfeited (12,508 ) 2.80 Outstanding - end of the year 60,711 8.51 227 RSUs exercisable at the end of the year - - - Vested and expected to vest 60,711 8.51 227 The awards outstanding as of December 31, 2023 have been separated into ranges of exercise price, as follows: Awards outstanding Awards exercisable Exercise price Number of options Weighted average remaining contractual life (years) Weighted average exercise price per share Number of options Weighted average remaining contractual life (years) Weighted average exercise price $0.01 (RSUs) 60,711 5.64 $ 0.01 - - $ - $4.0-9.5 1,455,200 6.25 $ 5.01 23,150 5.68 $ 8.07 $10.2-19.7 709,200 3.32 $ 13.13 503,175 2.90 $ 13.17 $20.3-29.5 115,000 0.67 $ 26.70 115,000 0.67 $ 26.70 2,340,111 641,325 Compensation expenses related to options and RSUs granted were recorded in the consolidated statements of operations, as follows: December 31, 2023 2022 Cost of revenues $ 95 $ 315 Research 89 69 Marketing and selling expenses 298 201 General and administrative expenses 543 917 Total $ 1,025 $ 1,502 |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | NOTE 14:- TRANSACTIONS WITH RELATED PARTIES Company's controlling shareholder, is Mifalei Sdot-Yam Agricultural Cooperative Society Ltd. (“Mifalei Sdot-Yam”), which is controlled by Sdot-Yam Business Holding and Management – Agricultural Cooperative Society Ltd., which is in turn controlled by Kibbutz Sdot-Yam (for convenience purposes, collectively referred as the “Kibbutz"). The Kibbutz has an ownership interest in the Company of approximately 30.2%, as of December 31, 2023. On September 5, 2016, the Kibbutz and Tene Investment in Projects 2016 Limited Partnership (“Tene”) entered into the shareholders’ agreement (“Shareholders’ Agreement”), memorialized in a term sheet , pursuant to which both the Kibbutz and Tene are deemed the Company’s controlling shareholders under the Israeli Companies Law. The Shareholders’ Agreement further amended on February 20, 2018 and September 18, 2023, In which the amendment executed on September 18, 2023 (the “September Amendment”) replaced the Shareholders Agreement in its entirety. Pursuant to the September Amendment, the parties agreed, among other things, to vote at general meetings of the Company’s shareholders in the same manner, following discussions intended to reach an agreement on any matters proposed to be voted upon. However, if no agreement is reached, the Kibbutz will determine the manner in which both parties will vote, except with respect to certain carved-out matters, to which Tene, for so long as it holds more than 3% of the issued and outstanding share capital of the Company, will determine the manner in which both parties will vote. In addition, each of the Kibbutz and Tene shall be entitled to vote separately in any manner with respect to the appointment, replacement or terms of compensation of the Company’s Chief Executive Officer. Among others, according to the September Amendment Tene granted the Kibbutz a right of first refusal and the Kibbutz granted Tene certain tag-along rights with respect to their disposition of ordinary shares. If Tene sells more than 3% of the issued and outstanding share capital of the Company without providing the Kibbutz its right of first offer then certain rights contemplated under the September Amendment will terminate, including Tene’s tag-along right. As of December 31, 2023 the Kibbutz and Tene beneficially own 14,029,494 ordinary shares (or approximately 40.6% of the outstanding). The Company is party to a series of agreements with the Kibbutz that govern different aspects of the Company's relationship and are described below. a. Manpower agreement with the Kibbutz: On July 2011, the Company entered into a manpower agreement with The Kibbutz such was automatically renewed during 2023 for additional one year term, and will be automatically renewed again, unless one of the parties gives six months’ prior notice, for additional one-year periods. On July 30, 2015, and on October 14, 2018, following the approval of Company's audit committee, compensation committee and board of directors, Company's shareholders approved an addendum to the Manpower Agreement by and between the Kibbutz and the Company, with respect to the engagement of office holders affiliated with the Kibbutz, for an additional three-year term as of the date of the shareholders’ approval. During 2021, following the approval of Company’s audit committee and the board of directors, the manpower agreement is valid through 2030. Under the manpower agreement and its addendum, the Kibbutz will provide the Company with labor services staffed by Kibbutz members, candidates for Kibbutz membership and Kibbutz residents (“Kibbutz Appointees”). The consideration to be paid for each Kibbutz Appointee will be based on the Company's total cost of employment for a non-Kibbutz Appointee employee performing a similar role. The number of Kibbutz Appointees may change in accordance with the Company's needs. Under the manpower agreement, the Company will notify the Kibbutz of any roles that require staffing, and if the Kibbutz offers candidates with skills similar to other candidates, the Company will give preference to hiring of the relevant Kibbutz members. the Kibbutz is entitled under this agreement, at its sole discretion, to discontinue the engagement of any Kibbutz Appointee of manpower services through his or her employment by the Kibbutz and require such appointee to become employed directly by the Company. The manpower agreement and addendum also includes the Kibbutz’s obligation to customary liability, insurance, indemnification and confidentiality and intellectual property provisions. Office holders who are Kibbutz Appointees shall have all benefits applicable to Company's other office holders, including without limitation, directors’ and officers’ liability insurance, and Company's indemnification and exemption undertaking. Manpower service fees paid were $1,553, $1,768 and $1,803 for the years ended December 31, 2023, 2022 and 2021, respectively. b. Services from the Kibbutz: On July 30, 2015, following the approval of the audit committee and the board, Company’s shareholders approved an amended services agreement pursuant to which, the Kibbutz will continue to provide various services it provides in the ordinary course of Company's business, for a period of three years commencing as of the date of approval by the shareholders. On October 14, 2021, following the approval of the audit committee and the board, Company’s shareholders approved a further amended services agreement (“Amended Services Agreement”) for an additional period of three years. The amount that the Company pays to the Kibbutz under the Amended Services Agreement depends on the scope of services the Company will receive and is based on rates specified in such agreement which were determined based on market terms, taking into account the added value of consuming services from the Kibbutz, considering its physical proximity to Company’s manufacturing plant in Sdot-Yam and its expertise. The amounts the Company pays for the services are subject to certain adjustments for increases in the Israeli consumer price index. In addition, the Amended Services Agreement grants The Kibbutz right of first proposal in special projects with respect to the metal workshop services. The amended services agreement also outlines the distribution mechanism between the Company and the Kibbutz for certain expenses and payments due to local authorities, such as certain taxes and fees in connection with the Company’s business facilities. Each party may terminate such agreement upon a material breach, following a 30-day prior notice, or upon liquidation of the other party, following a 45-days’ prior notice. The Company's net service fees paid to the Kibbutz pursuant to the Original and Amended Services Agreements were $810, $1,334 and $1,468 for the years ended December 31, 2023, 2022 and 2021, respectively. c. Land Use Agreement with the Kibbutz: Land leased to the Kibbutz by the ILA and the Caesarea Development Corporation The Company's principal offices and research and development facilities, as well as one of its two manufacturing facilities, are located on the grounds of the Kibbutz and include buildings spaces of approximately 30,744 square meters and unbuilt areas of approximately 60,870 square meters. The Company signed a land use agreement with the Kibbutz, which has a term of 20 years commencing on April 1, 2012. As per the agreement, the annual fee may be adjusted after January 1, 2021 and every three years thereafter, at the election of the Kibbutz by obtaining an updated appraisal. The appraiser will be mutually agreed upon or, in the absence of agreement, will be chosen by the Kibbutz out of the list of appraisers recommended at that time by Bank Leumi Le-Israel ("Bank Leumi"). During 2021, the Kibbutz elected this option and the parties mutually agreed upon a land appraiser, and based on its study the fees were adjusted for 2021 onwards for annual amount of approximately NIS 18,600,000 (approximately $5,980), linked to the Israeli consumer price index. Under the land use agreement, the Company may not terminate the operation of either of its two production lines at its plant in the Kibbutz as long as the Company continues to operate production lines elsewhere in Israel, and its headquarters must remain at The Kibbutz. Notwithstanding with the above mentioned, during 2023 the Company announced on closing the Sdot Yam plant with the permission of the Kibbutz. The Company is still liable to cover the land use agreement as is, and it may sublease part of the lands and buildings to a third party, subject to Kibbutz approval by case. The Company may also not decrease or return to the Kibbutz any part of the land underlying the land use agreement; however, it may submit a written request to the Kibbutz to return certain lands. The Kibbutz will have three months to accept or reject such request, in its sole discretion, provided that if it does not respond within such three-month period, the Company will be entitled to sublease such lands to a person approved in advance by the Kibbutz. In such event, the Company will continue to be liable to the Kibbutz with respect to such lands. In addition, the Company has committed to fund the cost of construction, up to a maximum of NIS 3.3 million (approximately $910) plus VAT, required to change the access road leading to The Kibbutz and its facilities, such that the entrance of the Company's facilities will be separated from the entrance into The Kibbutz. From the said amount, the Kibbutz has already set-off an amount of NIS 300,000 (approximately $83) for expenses incurred by it. In addition, the Company has committed to pay NIS 200,000 (approximately $55) plus VAT to cover the cost of paving an area of land leased from the Kibbutz with such payment to be deducted in monthly installments over a four-year period beginning in the year that the construction completed, from the lease payments to be made to the Kibbutz under the land use agreement related to the Company's Sdot-Yam facility. d. Financing liability of land: Pursuant to the Land Use Agreement, the Company has entered into an agreement with The Kibbutz dated August 6, 2013, under which the Kibbutz acquired additional land of approximately 12,800 square meters on the grounds near the Company's Bar-Lev facility, which the Company required in connection with the construction of the fifth production line at the Company's Bar-Lev manufacturing facility, leased it to the Company for a monthly fee of approximately NIS 70,000 (approximately $22). Under the agreement, the Kibbutz committed to (i) acquire the long-term leasing rights of the Additional Bar-Lev Land from the ILA, (ii) perform preparation work and construction, in conjunction with the administrative body of Bar-Lev industrial park and other contractors according to Company’s plans, (iii) build a warehouse according Company’s plans, and (iv) obtain all permits and approvals required for performing the preparation work of the Additional Bar-Lev Land and for the building of the warehouse. The warehouse in Bar-Lev will be situated both on the current and new land. The finance of the building of the warehouse will be made through a loan that will be granted by the Company to the Kibbutz, in the amount of the total cost related to the building of the warehouse and such loan, including principal and interest, shall be repaid by setoff of the lease due to Kibbutz Sdot Yam by the Company for its use of the warehouse. The principle amount of such loan will bear an interest at a rate of 1.4% a year. On November 30, 2015 the land preparation work had been completed and the holding of the Additional Bar-Lev Land was delivered to the Company. As of December 31, 2023, the construction of the warehouse has not started yet. Pursuant to a land purchase and leaseback agreement, dated as of March 31, 2011, which became effective upon the Company’s IPO, between the Company and The Kibbutz, the Company completed the selling of the rights in the lands and facilities of the Bar-Lev Industrial Center (the "Bar-Lev Grounds") to The Kibbutz in consideration for NIS 43.7 million (approximately $10,900). The land purchase agreement was executed simultaneously with the execution of a land use agreement. Pursuant to the land use agreement, the Kibbutz permits the Company to use the Bar-Lev Grounds for a period of 10 years commencing on September 2012 that will be automatically renewed, unless the Company gives two years prior notice, for a ten-year term in consideration for an annual fee of NIS 4.1 million (approximately $1,200) to be linked to increases in the Israeli consumer price index. As per the agreement, the fee is subject to adjustment following January 1, 2022 and every three years thereafter at the option of The Kibbutz if The Kibbutz chooses to obtain an appraisal that supports such an increase. The appraiser would be mutually agreed upon or, in the absence of agreement, will be chosen by the Kibbutz from a list of assessors recommended at that time by Bank Leumi. During 2022, the Kibbutz elected this option and the parties mutually agreed upon a land appraiser, and based on its study the fees were adjusted for 2022 onwards for total annual amount of approximately NIS 8,100,000 (approximately $2,600), linked to the Israeli consumer price index. The transaction was not qualified as "sale lease-back" accounting under both ASC 840 and ASC 842 and the Company recorded the entire amount received as consideration as a liability. The financing liability of land from a related party was matured in August 31, 2022. And since that period, the related lease charges recorded under the land use agreement expenses. The Company's payments pursuant to the land use agreements related to Sdot-Yam and Bar-Lev mentioned above totaled to $7,857, $8,162 and $7,665 for the years ended December 31, 2023, 2022 and 2021, respectively. e. Details on transactions and balances with related parties and other loan: 1. The Company has, from time to time, entered into transactions with its shareholders (the Kibbutz). The following table summarizes such transactions: Year ended December 31, 2023 2022 2021 Cost of revenues $ 8,232 $ 8,870 $ 8,157 Research and development $ 486 $ 574 $ 547 Selling and marketing $ 621 $ 730 $ 723 General and administrative $ 848 $ 951 $ 873 Finance expenses, net $ - $ (392 ) $ 106 2. Balances with related party and other loan: December 31, 2023 2022 Related party balances (1) $ 257 $ 283 Other loans(2) $ 479 $ 483 1. Related to the above mentioned agreements with related party. 2. During 2021, the Company assumed 55% of the shareholders loan in Lioli. |
LONG-TERM BANK LOAN
LONG-TERM BANK LOAN | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM BANK LOAN | NOTE 15:- LONG-TERM BANK LOAN a. As part of the Lioli’s acquisition in 2020, Lioli assumed also a bank loan from commercial banks in India. The loan agreement includes certain covenants that Lioli is required to meet. As of December 31, 2023 and 2022 the covenants are met and the loan is presented under long-term bank loan (see also Note 8). b. During 2022, lioli refinanced its old loan and signed on a new loan agreement with HDFC Bank. The new loan is denominated in Indian rupee and as of December 31, 2023 the loan carries interest rate of 8.8% (linked to MCLR). The long-term loan repayable in equal monthly installment till October 2025 and outstanding balance as of December 31, 2023 is $2,070. c. The loan is secured by creating charge on Lioli’s land, building and plant and machineries and current assets including stock, receivables and other current assets. The Company has also provided the stand by letter of credit as a security. |
MAJOR CUSTOMER AND GEOGRAPHIC I
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION | NOTE 16:- MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION a. The Company manages its business on the basis of one reportable segment. The data is presented in accordance with Accounting Standard Codification 280, "Segments Reporting" ("ASC 280"). The following is a summary of revenue and long-lived assets (including Property, plant and equipment, intangible assets and operating lease right-of-use assets) by geographic area. Revenues are attributed to geographic areas based on the location of end customers. The following table presents total revenues for the years ended December 31, 2023, 2022 and 2021, respectively: Year ended December 31, 2023 2022 2021 USA $ 271,647 $ 342,293 $ 305,353 Canada 75,462 93,377 84,467 Latin America 3,285 4,481 4,702 Australia 106,223 116,284 118,714 Asia 25,959 34,607 30,390 EMEA 59,908 63,320 60,836 Israel 22,747 36,444 39,430 $ 565,231 $ 690,806 $ 643,892 No customer represented 10% or more of the Company’s total revenues for the years ended December 31, 2023, 2022 and 2021. b. The following table presents total long-lived assets as of December 31, 2023 and 2022: December 31, 2023 2022 USA $ 100,886 $ 149,173 Canada 4,685 3,292 Australia 7,885 10,337 Asia 22,630 24,353 EMEA 13,794 8,488 Israel 100,013 126,564 $ 249,893 $ 322,207 |
SELECTED SUPPLEMENTARY STATEMEN
SELECTED SUPPLEMENTARY STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Income Statement Elements [Abstract] | |
SELECTED SUPPLEMENTARY STATEMENTS OF INCOME DATA | NOTE 17:- SELECTED SUPPLEMENTARY STATEMENTS OF INCOME DATA a. Finance (income) expense, net: Year ended December 31, 2023 2022 2021 Finance expenses: Interest in respect credit cards and bank fees $ 4,957 $ 5,380 $ 4,702 Interest in respect of loans 377 346 2,035 Amortization/accretion of premium/discount on marketable securities - 237 200 Realized gain/loss from marketable securities, net 63 - 134 Changes in derivatives fair value - 1,509 - Foreign exchange transactions losses 154 3,818 6,023 5,551 11,290 13,094 Finance income: Interest in respect of cash and cash equivalent and short-term bank deposits 1,473 20 147 Changes in derivatives fair value 680 - 4,950 Interest income from marketable securities 107 287 407 Foreign exchange transactions gains 4,360 14,062 - 6,620 14,369 5,504 Finance expenses (income), net $ (1,069 ) $ (3,079 ) $ 7,590 b. Net earnings (loss) per share: The following table sets forth the computation of basic and diluted net earnings per share: Numerator : Year ended December 31, 2023 2022 2021 Net income (loss) attributable to controlling interest, as reported $ (107,656 ) $ (57,054 ) $ 18,966 Adjustment to redemption value of non-controlling interest (532 ) (198 ) (1,399 ) Numerator for basic and diluted net income (loss) per share $ (108,188 ) $ (57,252 ) $ 17,567 Denominator (in thousands): Year ended December 31, 2023 2022 2021 Denominator for basic income (loss) per share 34,519 34,488 34,462 Effect of dilutive stock based awards - - 108 Denominator for diluted income (loss) per share 34,519 34,488 34,570 Earnings per share : Basic and diluted earnings (loss) per share $ (3.13 ) $ (1.66 ) $ 0.51 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they were made. |
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: The Company's revenues are generated in various currencies mainly in U.S. dollars (USD), Australian dollars (AUD) and Canadian dollars (CAD). In addition, most of the Company's costs are incurred in USD, NIS and EUR. The Company’s management believes that the USD is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the USD. The functional currency of the Company's foreign subsidiaries is the local currency in which the relevant subsidiary operates. Accordingly, monetary accounts maintained in currencies other than the USD are re-measured into dollars in accordance with Accounting Standards Codification, "Foreign Currency Matters" (“ASC 830”). All transaction gains and losses resulting from the re-measurement of monetary balance sheet items denominated in non-USD currencies are reflected in the statements of operations as financial income or expenses as appropriate. The financial statements of the Company’s subsidiaries of which the functional currency is not the USD have been translated into the USD. All amounts on the balance sheets have been translated into the USD using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of income have been translated into the USD using the monthly average exchange rate in accordance with ASC 830. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss), net in shareholders' equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly and majority-owned subsidiaries (see also Note 1). Inter-company transactions and balances, including profit from inter-company sales not yet realized outside of the Company, have been eliminated upon consolidation. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the date acquired. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits are deposits with original maturities of more than three months but less than one year. Short-term bank deposits are presented at their cost, which approximates their fair value. |
Marketable securities | f. Marketable securities: Marketable securities consist of corporate and governmental bonds. ("AFS"). Available-for-sale securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in financial income (expenses), net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income (expenses), net. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable securities with maturities of 12 months or less are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. The Company assessed |
Derivatives | g. Derivatives: ASC 815, “Derivative and Hedging” ("ASC 815"), requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Derivative instruments designated as hedging instruments: For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. To hedge against the risk of overall changes in cash flows resulting from foreign currency salary and other recurring payments during the periods, the Company has instituted a foreign currency cash flow hedging program. These forward contracts are designated as cash flow hedges, as defined by ASC 815, and are all effective, as their critical terms match the underlying transactions being hedged. As of December 31, 2023 and 2022, the notional amount of these forward contracts into which the Company entered was $21,162, and $41,699, respectively, and the Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward and options contracts to limit its exposure to foreign currencies . In addition, the Company entered into derivative instruments to partially manage its exposure to movements associated with the Styrene prices. Gains and losses related to such derivative instruments are recorded in financial expenses, net. At December 31, 2023 and 2022, the notional amount of foreign exchange and styrene forward and option contracts into which the Company entered was $0 and $13,247, respectively. The foreign exchange forward contracts will expire at various times through 2024. The following tables present fair value amounts of, and gains and losses recorded in relation to, the Company's derivative instruments and related hedged items: Balance sheet Fair value of derivative instruments Year ended December 31, 2023 2022 Derivative assets: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses 539 39 Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses - 333 Total 539 371 Derivative liabilities: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (450 ) Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (62 ) Styrene forward contract Accrued expenses and other liabilities - (430 ) Total - (942 ) The following tables present fair value amounts of, and gains and losses recorded in relation to, the Company's derivative instruments and related hedged items: Gain (loss) recognized in other comprehensive income, net Gain (loss) recognized in statements of income Year ended December 31, Statements of income Year ended December 31, 2023 2022 Item 2023 2022 Derivatives designated as hedging instruments: Foreign exchange forward contract 951 (709 ) Cost of revenues and Operating expenses (3,306 ) (2,555 ) Derivatives not designated as hedging instruments: Foreign exchange forward and options contracts - - Financial expenses, net 1,313 (1,506 ) Styrene forward contracts - - Financial expenses, net 113 (520 ) Total 951 (709 ) (1,880 ) (4,581 ) |
Inventories | h. Inventories: Inventories are stated at the lower of cost and net realizable value. The Company periodically evaluates the quantities on hand relative to historical and projected sales volumes, aging, current and historical selling prices and contractual obligations to maintain certain levels of raw material quantities. Based on these evaluations, inventory provision is provided to cover risks arising from slow-moving items, discontinued products, excess inventories, net realizable value lower than cost and adjusted revenue forecasts. Cost is determined as follows: Raw Materials - cost is determined on a standard cost basis which approximates actual costs on a weighted average basis. Work-in progress and finished products - are based on standard cost (which approximates actual cost on a weighted average basis) which includes raw materials cost, labor and manufacturing overhead. Finished goods are stated at the lower of cost and net realizable value. The following table provides the details of the change in the Company's provision for inventory write-downs: December 31, 2023 2022 Inventory provision, beginning of year $ 21,738 $ 16,789 Increase in inventory provision 9,848 11,165 Write off (4,148 ) (6,216 ) Inventory provision, end of year $ 27,438 $ 21,738 |
Property, plant and equipment, net | i. Property, plant and equipment, net: 1. Property, plant and equipment are stated at cost, net of accumulated depreciation and investment grants. 2. Costs recorded prior to a production line completion are reflected as construction in progress, which are recorded building and machinery assets at the date of purchase. Construction in progress includes direct expenditures for the construction of the production line and is stated at cost. Capitalized costs include costs incurred under the construction contract: advisory, consulting and direct internal costs (including labor) and operating costs incurred during the construction and installation phase. 3. Depreciation is calculated using the straight-line method over the estimated useful life of the assets at the following annual rates: % Machinery and manufacturing equipment 4 - 33 (mainly 10) Office equipment and furniture 7 - 33 (mainly 7) Motor vehicles 10 - 30 (mainly 20) Buildings 4 - 5 Leasehold improvements Over the shorter of the term of the lease or the life of the asset |
Leases | j. Leases: The Company determines if an arrangement is a lease at inception and recognize in accordance with ASC 842 “Leases”. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities and operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses incremental borrowing rates based on the Company's implied credit rating which was based on Moody's Investors Service Rating Methodology for the Building Materials Industry (such credit rating was notched up due to collateralization) at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives, if any. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. See also Note 10. |
Impairment of long-lived assets | k. Impairment of long-lived assets: The Company's long-lived assets (assets group) to be held or used, including right of use assets, tangible and finite-lived intangible assets (other than goodwill), are reviewed for impairment in accordance with ASC 360 "Property, Plant and Equipment" ("ASC 360") whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company's evaluation of recoverability is performed at the lowest level of assets group to which identifiable cash flows are largely independent of the cash flows of other asset group. Recoverability of the asset group is measured by a comparison of the aggregate undiscounted future cash flows the asset group is expected to generate to the carrying amounts of the asset group. If such evaluation indicates that the carrying amount of the asset group is not recoverable, an impairment loss is calculated based on the excess of the carrying amount of the asset group over its fair value. The Company identified indicators for impairment, among others, slow down in demand due to global market conditions, lower production utilization in certain plants, increased inflation and higher interest rates, and the manufacturing facilities closure in Sdot Yam and in Richmond hill. In 2022, the Company recorded an impairment loss for the excess of the book value over its fair value related to Sdot Yam manufacturing facility, in the amount of $26,429. In 2023, the Company recorded an impairment loss for the excess of the book value over its fair value related to US manufacturing facility, in the amount of $27,486 and additional impairment loss related to Sdot Yam manufacturing facility in the amount of $986. Following the closure of Sdot Yam manufacturing facility during 2023, the Company evaluated it's right of use asset resulted from non-cancelable lease agreement effective through 2032. Based on future estimated sublease the Company recorded an impairment of $16,575 during 2023. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated useful lives of property and equipment and finite-lived intangible assets. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. |
Goodwill | l. Goodwill: Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired in the acquisition. Under ASC 350, "Intangibles-Goodwill and Other" ("ASC 350") goodwill is not amortized but instead is tested for impairment at least annually (or more frequently if impairment indicators arise). The goodwill impairment test is performed according to the following principles: (1) An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. (2) If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. The Company performed an annual goodwill impairment test during the fourth quarter of each fiscal year, or more frequently, if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company operates as one reporting unit, and concluded that all of the Company's reporting units should be aggregated and deemed as a single reporting unit for the purpose of performing the goodwill impairment test in accordance with ASC 350-20-35-35, since they have similar economic characteristics. The fair value of the reporting unit was estimated in accordance with . ASC 820, "Fair Value Measurements". The Company applied assumptions that marketplace participants would consider in determining the fair value of its reporting unit. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment. Significant estimates used in the fair value methodologies include estimates of future cash flows, future short-term and long-term growth rates and weighted average cost of capital. As of December 31, 2022, the company performed an impairment test of the goodwill in accordance with ASC350, and recognized a full impairment charge for its goodwill balances in the amount of $44,829. (see also Note 7). |
Warranty | m. Warranty: The Company generally provides a standard (i.e. assurance type) warranty for its products, for various periods, depending on the type of product and the country in which the Company does business. The Company records a provision for the estimated cost to repair or replace products under warranty at the time of sale. Factors that affect the Company's warranty reserve include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The following table provides the details of the change in the Company's warranty accrual: 2023 2022 January 1, $ 2,501 $ 2,680 Charged to costs and expenses relating to new sales 1,289 1,461 Costs of product warranty claims (1,792 ) (1,923 ) Foreign currency translation adjustments 360 283 December 31, 2,358 2,501 |
Revenue recognition | n. Revenue recognition: Revenues are recognized in accordance with ASC 606, revenue from contracts with customers when control of the promised goods or services is transferred to the customers, in an amount that the Company expects in exchange for those goods or services. The Company applies the following five steps in accordance to ASC 606: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. 1. Identify the contract with a customer: A contract 2. Identify the performance obligations in the contract: At a contract’s inception, the Company assesses the goods or services promised in a contract with a customer and identifies the performance obligations. The main performance obligation is a delivery of the Company’s products. 3. Determine the transaction price: The Company’s products that are sold through agreements with distributors are non-exchangeable, non-refundable, non-returnable and without any rights of price protection or stock rotation. Accordingly, the Company considers all the distributors to be end-consumers. For certain revenue transactions with specific customers, the Company is responsible also for the fabrication and installation of its products. The Company recognizes such revenues upon receipt of acceptance evidence from the end consumer which occurs upon completion of the installation. Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns in accordance with ASC 606, which is estimated, based primarily on historical experience as well as management judgment, and is recorded through a reduction of revenue. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. 4. Allocate the transaction price to the performance obligations in the contract: The majority of the Company’s revenues are sales of goods, therefore there is one main performance obligation that absorbs the transaction price. 5. Recognize revenue when a performance obligation is satisfied: Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers at a point in time, which affects when revenue is recorded. The majority of Company’s revenues deriving from sales of products which are recognized when control is transferred. |
Research and development costs | o. Research and development costs: Research and development costs are charged to the statement of income as incurred. |
Income taxes | p. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC 740, "Income Taxes" (“ASC 740”). This statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company accounts for its uncertain tax positions in accordance with ASC 740-10. ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company classifies interest and penalties on income taxes as taxes on income. |
Advertising expenses | q. Advertising expenses: Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2023, 2022 and 2021 were $15,726, $14,777 and $15,307, respectively. |
Concentrations of credit risk | r. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and trade receivables. The Company's cash and cash equivalents are invested primarily in USD, mainly with major banks in Israel. The Company's debt marketable securities include investments in highly-rated corporate debentures (located mainly in U.S.) and governmental bonds. The financial institution that holds the Company's debt marketable securities is a major financial institution located in the United States. The Company believes that its marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in an issuer (see Note 2f). The Company's trade receivables are derived from sales to customers located mainly in the United States, Australia, Canada, Israel and Europe. The Company performs ongoing credit evaluations of its customers and to date has not experienced any substantial losses. In certain circumstances, the Company requires letters of credit or prepayments. An allowance for credit losses is provided with respect to specific receivables that the Company has determined to be doubtful of collection. For those receivables not specifically reviewed, provisions are recorded, based upon the age of the receivable, the collection history, current economic trends and management estimates of future economic conditions. No customer represented 10% or more of the Company’s total accounts receivables, net as of December 31, 2023 and 2022. The following table provides the detail of the change in the Company's allowance for credit loss: 2023 2022 January 1, $ 9,756 $ 9,036 Charges to expenses 3,654 2,141 Write offs (1,158 ) (1,144 ) Foreign currency translation adjustments (38 ) (277 ) December 31, $ 12,214 $ 9,756 |
Severance pay | s. Severance pay: The Company's liability for severance pay, with respect to its Israeli employees, is calculated pursuant to Israeli severance pay law and employee agreements based on the most recent salary of the employees. The Company's liability for all of its Israeli employees is provided for by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset on the Company's balance sheet. The deposited funds include profits or losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to Israeli severance pay law or labor agreements. Majority of the agreements with employees specifically state, in accordance with section 14 of the Severance Pay Law, 1963 ("Section 14"), that the Company's contributions for severance pay shall be instead of severance compensation and that upon release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, since the Company has signed agreements with its employees under Section 14, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance pay expenses for the years ended December 31, 2023, 2022 and 2021 amounted to approximately $2,102, $2,614 and $2,539, respectively. |
Fair value of financial instruments | t. Fair value of financial instruments: In The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2023 and 2022 by level within the fair value hierarchy: Fair value measurements Fair Value as of December 31, Description Hierarchy 2023 2022 Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ - $ 27 Short-term marketable securities: Corporate bonds Level 2 $ - $ 7,077 Derivative assets Level 2 $ 539 $ 371 Liabilities: Derivative liabilities Level 2 $ - $ (942 ) Redeemable Non-Controlling Interest (*): Level 3 $ 7,789 $ 7,903 (*) The change in fair value of redeemable non-controlling interest valued using significant unobservable inputs (Level 3), was included in note 2x. The Company estimated the fair value of redeemable non-controlling interest using Monte Carlo simulation. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, the discount rate and the volatility. The fair value measurement is based on inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from assumptions made within the probability-weighted analyses will result in adjustments to this liability in future periods. Measured at fair value on a nonrecurring basis: (a) As of December 31, 2023, in accordance with Subtopic 360-10, long-lived assets held and used were written down to their fair value, resulting in an impairment charge of $28,472 related to Property Plant and Equipment included in US and Sdot Yam manufacturing facility, and $16,575 related to ROU asset related to Sdot Yam. As of December 31, 2022, long-lived assets held and used were written down to their fair value, resulting an impairment charge of $26,429, related to Property Plant and Equipment included in Sdot Yam facility production. (b) As of December 31, 2023 and 2022, the goodwill balance was $0. During fiscal year 2022, in accordance with Subtopic 350-20, goodwill was written down in an impairment charge of $44,829, which was included in the consolidated statements of income for that period. The carrying amounts of financial instruments not measured at fair value, including cash and cash equivalents, trade receivables, other accounts receivables, trade payables, accrued expenses and other liabilities, short term loans and short term bank credit, approximate their fair value due to the short-term maturities of such instruments. |
Basic and diluted net income (loss) per share | u. Basic and diluted net income (loss) per share: Basic net income (loss) per share ("Basic EPS") is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income (loss) per share ("Diluted EPS") gives effect to all dilutive potential ordinary shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. The dilutive effect of outstanding stock options is computed using the treasury stock method. For the years ended December 31, 2023, 2022 and 2021 there were approximately 2,310,543, 1,534,500, and 0 outstanding stock options, respectively, that were excluded from the computation of Diluted EPS, that would have had an anti dilutive effect if included. |
Comprehensive income and accumulated other comprehensive income (loss) | v. Comprehensive income and accumulated other comprehensive income (loss): Comprehensive income consists of two components, net income and other comprehensive income ("OCI"). OCI refers to revenue, expenses, and gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Company’s OCI consists of foreign currency translation adjustments from those subsidiaries not using the USD as their functional currency and net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and marketable securities. The total accumulated other comprehensive income ("AOCI"), net of tax was comprised as follows: December 31, 2023 2022 Accumulated loss on marketable securities $ - $ (125 ) Accumulated income (loss) on derivative instruments 539 (412 ) Accumulated foreign currency translation differences and other (8,941 ) (9,041 ) Total accumulated other comprehensive loss, net $ (8,402 ) $ (9,578 ) The following table summarizes the changes in AOCI, net of taxes for the year ended: Unrealized gains (losses) on derivative instruments Unrealized gains (losses) on marketable securities Accumulated foreign currency translation differences and other Total Balance at January 1, 2022 297 (40 ) (961 ) (704 ) Other comprehensive income (loss) before reclassifications (3,264 ) (85 ) (8,080 ) (11,429 ) Amounts reclassified from AOCI 2,555 - - 2,555 Net current period OCI (709 ) (85 ) (8,080 ) (8,874 ) Balance at December 31, 2022 (412 ) (125 ) (9,041 ) (9,578 ) Other comprehensive income (loss) before reclassifications (2,355 ) 125 100 (2,130 ) Amounts reclassified from AOCI 3,306 - - 3,306 Net current period OCI 951 125 100 1,176 Balance at December 31, 2023 539 - (8,941 ) (8,402 ) The following table shows the amounts reclassified from AOCI into the Consolidated Statements of Income, and the associated financial statement line item, for 2023 and 2022: December 31, 2023 2022 Affected line item in the consolidated statements of income Cost of revenues $ 2,287 $ 1,921 Research and development 102 68 Marketing and selling 414 249 General and administrative 503 317 Total loss $ 3,306 $ 2,555 |
Accounting for stock-based compensation | w. Accounting for stock-based compensation: Equity share based payment: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company accounts for employees and directors’ share-based payment awards classified as equity awards using the grant-date fair value method. The fair value of share-based payment transactions is recognized as an expense over the requisite service period. The Company’s accounting policy is to account for forfeitures as they occur. The exercise price of each option is generally Company's stock price on the date of the grant. Options generally become exercisable over approximately three four-year four-year In 2023 and 2022, the Company estimated the fair value of stock options granted using the Black-Scholes option pricing model with the following weighted average assumptions: December 31, 2023 2022 Dividend yield 0 - 3% 0 - 3% Expected volatility 40-46.0% 40-45.0% Risk-free interest rate 4-4.9% 1-4.3% Expected life (in years) 4-6.9 4-5.5 The Company used volatility data in accordance with ASC 718 and based on Company's historical data. The computation of risk free interest rate is based on the rate available on the date of grant of a zero-coupon U.S. government bond with a remaining term equal to the expected term of the option. The expected term of options granted is calculated using the simplified method (being the average between the vesting periods and the contractual life of the options). In case of grant to Company's CEO or directors, the expected term equales to the contractual life. For the vast majority of the options granted in 2023 and 2022, the dividend yield is zero, due to adjustment mechanism with respect to the exercise price upon payment of a dividend. For those options granted without adjustment mechanism, the dividend yield applied is 3%. |
Redeemable non-controlling interest | x. Redeemable non-controlling interest: Following the acquisition of Lioli during 2020, the Company is party to a put and call arrangement with respect to the remaining 45% non-controlling interest in Lioli. Due to the existing put and call arrangements, the non-controlling interest is considered to be redeemable and is recorded on the balance sheet as a redeemable non-controlling interest outside of permanent equity. During March 2022, the Company participated in rights offering in Lioli, and purchased additional 9,870,000 shares in amount of approximately $2.5 million. Following this offering, the Company holds 60.4% of Lioli's shares on a fully diluted basis. The redeemable non-controlling interest is recognized at the higher of: i) the accumulated earnings associated with the non-controlling interest, or ii) the redemption value as of the balance sheet date (see also Note 1b). The following table provides a reconciliation of the redeemable non-controlling interest: Year ended December 31, 2023 2022 2021 Beginning of the year $ 7,903 $ 7,869 $ 7,701 Assuming the non controlling interest due to acquisition - - - Net income (loss) attributable to non-controlling interest (584 ) 688 (1,077 ) Adjustment to Put option value (*) 532 198 1,399 Foreign currency translation adjustments (62 ) (852 ) (154 ) Redeemable non-controlling interest - end of the year $ 7,789 $ 7,903 $ 7,869 (*) See also Note 1b. |
Contingencies | y. Contingencies: The |
Business combination | z. Business combination: The Company accounts for business combinations by applying the provisions of ASC 805, Business Combination, and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected cash flows from acquired customer relationship and acquired trademarks from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding adjustment to goodwill. Upon the finalization of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. See also Note 1. |
Exit or disposal activities | aa. Exit or disposal activities: The company accounts for exit and disposal cost obligations, including restructuring activities, under ASC 420-10 "Exit or Disposal Cost Obligations", which requires that the company record liabilities for such activities only when such liability has been incurred. During 2023 the company closed it's facility in Sdot-Yam, Israel and announced the closure of its manufacturing facility in Richmond hill, Georgia, USA. Total restructuring expenses for the year ended December 31, 2023 for the manufacturing facilities closures totaled approximately $2.9 million, included within the operating expenses on the consolidated statements of comprehensive income. Out of the $2.9 million, employee termination costs were approximately $1.0 million and decommissioning and restoration costs were approximately $1.9 million. As of December 31, 2023 approximately $1.5 million is recorded under accrued expenses and other liabilities. The company concluded that the above actions were triggering events for an impairment test under ASC 360, property, Plant and Equipment. Refer also to note 2(t) and 6. ab. Impact of recently issued accounting standards: Recently issued accounting standards and adopted by the Company: In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606). This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The adoption of the standards did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting standards and not yet adopted by the Company: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Magrab Naturtsen Ab [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Components of Purchase Price: Cash $ 2,607 Deferred consideration 875 Less: Cash acquired 373 Net for allocation 3,109 Allocation of Purchase Price: Net tangible assets (liabilities): Trade receivables and other current assets, net 524 Property, plant and equipment, net 41 Inventories, net 1,233 ROU assets 446 Trade payables (523 ) Accrued expenses and other liabilities (378 ) Short-term lease liability (22 ) Long-term lease and other non-current liabilities (424 ) Total net tangible assets 897 Identifiable intangible assets: Customer relationships (1) 1,789 Deferred tax liabilities (369 ) Total identifiable intangible assets acquired 1,420 Goodwill (2) 792 Total purchase price allocation $ 3,109 (1) Customer relationships represent the underlying relationships and agreements with Magrab's customer base. In assessing the value of the Customer Relationships, the Company used an income approach method. The Customer Relationships’ economic useful life is estimated at approximately 8 years, amortized using the straight-line method. (2) The goodwill is primarily attributable to expected synergies resulting from the acquisition. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Fair Value Amounts and Gains and Losses Recorded in Relation to the Derivative Instruments | Balance sheet Fair value of derivative instruments Year ended December 31, 2023 2022 Derivative assets: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses 539 39 Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Other accounts receivable and prepaid expenses - 333 Total 539 371 Derivative liabilities: Derivatives designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (450 ) Derivatives not designated as hedging instruments: Foreign exchange option and forward contracts Accrued expenses and other liabilities - (62 ) Styrene forward contract Accrued expenses and other liabilities - (430 ) Total - (942 ) Gain (loss) recognized in other comprehensive income, net Gain (loss) recognized in statements of income Year ended December 31, Statements of income Year ended December 31, 2023 2022 Item 2023 2022 Derivatives designated as hedging instruments: Foreign exchange forward contract 951 (709 ) Cost of revenues and Operating expenses (3,306 ) (2,555 ) Derivatives not designated as hedging instruments: Foreign exchange forward and options contracts - - Financial expenses, net 1,313 (1,506 ) Styrene forward contracts - - Financial expenses, net 113 (520 ) Total 951 (709 ) (1,880 ) (4,581 ) |
Schedule of Change in Provision for Inventory | December 31, 2023 2022 Inventory provision, beginning of year $ 21,738 $ 16,789 Increase in inventory provision 9,848 11,165 Write off (4,148 ) (6,216 ) Inventory provision, end of year $ 27,438 $ 21,738 |
Schedule of Property, Plant and Equipment Depreciation Rates | % Machinery and manufacturing equipment 4 - 33 (mainly 10) Office equipment and furniture 7 - 33 (mainly 7) Motor vehicles 10 - 30 (mainly 20) Buildings 4 - 5 Leasehold improvements Over the shorter of the term of the lease or the life of the asset |
Schedule of Changes in Warranty Accrual | 2023 2022 January 1, $ 2,501 $ 2,680 Charged to costs and expenses relating to new sales 1,289 1,461 Costs of product warranty claims (1,792 ) (1,923 ) Foreign currency translation adjustments 360 283 December 31, 2,358 2,501 |
Schedule of Change in Provision for Doubtful Debts | 2023 2022 January 1, $ 9,756 $ 9,036 Charges to expenses 3,654 2,141 Write offs (1,158 ) (1,144 ) Foreign currency translation adjustments (38 ) (277 ) December 31, $ 12,214 $ 9,756 |
Schedule of Assets and Liabilities Measured at Fair Value | Fair value measurements Fair Value as of December 31, Description Hierarchy 2023 2022 Measured at fair value on a recurring basis: Assets: Cash equivalents: Money market mutual funds Level 1 $ - $ 27 Short-term marketable securities: Corporate bonds Level 2 $ - $ 7,077 Derivative assets Level 2 $ 539 $ 371 Liabilities: Derivative liabilities Level 2 $ - $ (942 ) Redeemable Non-Controlling Interest (*): Level 3 $ 7,789 $ 7,903 (*) The change in fair value of redeemable non-controlling interest valued using significant unobservable inputs (Level 3), was included in note 2x. The Company estimated the fair value of redeemable non-controlling interest using Monte Carlo simulation. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, the discount rate and the volatility. The fair value measurement is based on inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from assumptions made within the probability-weighted analyses will result in adjustments to this liability in future periods. |
Schedule of Accumulated Other Comprehensive Income, Net | December 31, 2023 2022 Accumulated loss on marketable securities $ - $ (125 ) Accumulated income (loss) on derivative instruments 539 (412 ) Accumulated foreign currency translation differences and other (8,941 ) (9,041 ) Total accumulated other comprehensive loss, net $ (8,402 ) $ (9,578 ) |
Schedule of Changes in Accumulated Balances of Other Comprehensive Income | Unrealized gains (losses) on derivative instruments Unrealized gains (losses) on marketable securities Accumulated foreign currency translation differences and other Total Balance at January 1, 2022 297 (40 ) (961 ) (704 ) Other comprehensive income (loss) before reclassifications (3,264 ) (85 ) (8,080 ) (11,429 ) Amounts reclassified from AOCI 2,555 - - 2,555 Net current period OCI (709 ) (85 ) (8,080 ) (8,874 ) Balance at December 31, 2022 (412 ) (125 ) (9,041 ) (9,578 ) Other comprehensive income (loss) before reclassifications (2,355 ) 125 100 (2,130 ) Amounts reclassified from AOCI 3,306 - - 3,306 Net current period OCI 951 125 100 1,176 Balance at December 31, 2023 539 - (8,941 ) (8,402 ) |
Schedule of Losses on Cash Flow Hedge Reclassified Out of Accumulated Other Comprehensive Income | December 31, 2023 2022 Affected line item in the consolidated statements of income Cost of revenues $ 2,287 $ 1,921 Research and development 102 68 Marketing and selling 414 249 General and administrative 503 317 Total loss $ 3,306 $ 2,555 |
Schedule of Reconciliation of Redeemable Non-controlling Interest | Year ended December 31, 2023 2022 2021 Beginning of the year $ 7,903 $ 7,869 $ 7,701 Assuming the non controlling interest due to acquisition - - - Net income (loss) attributable to non-controlling interest (584 ) 688 (1,077 ) Adjustment to Put option value (*) 532 198 1,399 Foreign currency translation adjustments (62 ) (852 ) (154 ) Redeemable non-controlling interest - end of the year $ 7,789 $ 7,903 $ 7,869 (*) See also Note 1b. |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Losses on Cash Flow Hedge Reclassified Out of Accumulated Other Comprehensive Income | December 31, 2023 2022 Dividend yield 0 - 3% 0 - 3% Expected volatility 40-46.0% 40-45.0% Risk-free interest rate 4-4.9% 1-4.3% Expected life (in years) 4-6.9 4-5.5 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Marketable Securities | Amortized cost Gross unrealized gains Gross unrealized losses Accrued Interest Fair value Available-for-sale – matures within one year: Corporate bonds $ 7,164 $ - $ 126 $ 39 $ 7,077 Total $ 7,164 $ - $ 126 $ 39 $ 7,077 |
OTHER ACCOUNTS RECEIVABLE AND_2
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Accounts Receivable and Prepaid Expenses | December 31, 2023 2022 Prepaid expenses $ 5,388 $ 6,313 Government authorities 4,410 13,005 Advances to suppliers 3,102 3,439 Derivatives 539 371 Other receivables (*) 12,050 9,442 $ 25,489 $ 32,570 (*) Including mainly insurance receivables, see also note 11. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2023 2022 Raw materials $ 11,884 $ 32,443 Work-in-progress 2,390 4,058 Finished goods 122,172 201,731 $ 136,446 $ 238,232 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | December 31, 2023 2022 Cost: Machinery and manufacturing equipment, net (1) $ 339,657 $ 334,156 Office equipment and furniture 40,012 36,079 Motor vehicles 4,933 5,139 Buildings and leasehold improvements 131,269 129,679 Prepaid expenses related to operating lease (2) 939 939 516,810 505,992 Accumulated depreciation and impairment: Machinery and manufacturing equipment, net 249,499 230,063 Office equipment and furniture 27,866 24,491 Motor vehicles 3,908 3,832 Buildings and leasehold improvements 56,984 51,722 Prepaid expenses related to operating lease 173 163 Impairment of fixed assets (3) 54,900 26,429 393,330 336,700 Depreciated cost $ 123,480 $ 169,292 (1) Presented net of investment grants received in the total amount of $7,463. (2) Until 2012, the Company leased land from the Israel Lands Administration ("ILA") for its Bar-Lev manufacturing facility. The lease term started on February 6, 2005. The lease is for an initial non-cancellable term of 49 years, with a renewal option of an additional 49 years. (3) Non cash pre-tax impairment charges recognized in 2023 were $28,472, Non cash pre-tax impairment charges recognized in 2022 were $26,429 (see also Note 2k) Depreciation expenses were $27,387, $33,813 and $32,394 for the years ended December 31, 2023, 2022 and 2021, respectively. |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Balance as of January 1, 2022 $ 45,800 Acquired through business combination (*) 792 Goodwill Impairment (**) (44,829 ) Foreign currency translation adjustments (1,763 ) Balance as of December 31, 2022 and 2023 $ - (*) Resulting from Magrab acquisition, see also Notes 1(d). (**)The Company performs its annual testing of goodwill in the fourth quarter of each year in accordance with ASC 350 (see also Note 2l). During the fourth quarter of 2022, the Company conducted an impairment test of its reporting unit. Due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates, a pre-tax, non-cash goodwill impairment charge of $44,829 was recorded. |
Schedule of Intangible Assets | December 31, 2023 2022 Original amounts: Customer relationships (*) $ 13,983 $ 13,983 Accumulated amortization: Customer relationships (7,687 ) (5,067 ) Foreign currency translation adjustment (39 ) (99 ) Total intangibles assets $ 6,257 $ 8,817 (*) In 2022, includes $1,789 Acquired through business combination of Magrab. |
Schedule of Estimated Amortization Expenses | 2024 2,662 2025 2,472 2026 224 2027 224 2028 224 2029 and on 451 $ 6,257 |
SHORT-TERM BANK CREDIT AND CU_2
SHORT-TERM BANK CREDIT AND CURRENT MATURITIES OF LONG-TERM LOAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-term Debt [Abstract] | |
Schedule of Short-Term Bank Credit | Weighted average interest Currency December 31, December 31, 2023 2022 2023 2022 % Short-term bank credit (*) USD - 6.3 $ - $ 21,183 Short-term bank credit (**) INR 10.1 7.6 $ 2,801 $ 2,674 Current maturities of Long- term bank loan and other (**) INR 8.9 7.6 $ 2,317 $ 2,278 Total $ 5,118 $ 26,135 (*) As of December 31, 2023, the company has no credit lines in Israeli banks. The credit line outstanding as of December 31, 2022, in Israeli banks was fully repaid during 2023. (**) Credit line and bank loan in Lioli - During 2022, Lioli engaged with a new bank and signed a new loan agreement. The loan agreement with the bank in Lioli contains customary covenants. Lioli is in compliance with the requirement of the financial covenants under the agreement of own capital contribution. The Loan Agreement also contains certain customary negative covenants that require Lioli to refrain from certain actions unless bank’s consent obtained. Lioli debt is secured by a SBLC (Stand By Letter of Credit) from Caesarstone and floating charge on all of Lioli’s assets. (see also Note 15). |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | December 31, 2023 2022 Employees and payroll accruals $ 13,410 $ 13,029 Accrued expenses 8,833 12,003 Advances from customers 2,413 1,998 Taxes payable 5,617 4,892 Warranty provision 1,154 1,239 Derivatives - 942 Sales return provision 875 604 Operating lease liability short-term 23,932 22,741 Contingent consideration liability and other 660 1,329 $ 56,894 $ 58,777 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Schedule of Lease-Related Assets and Liabilities | a. The following table summarizes the Company’s lease-related assets and liabilities recorded on the consolidated balance sheet: Classification December 31, 2023 December 31, 2022 Assets: Operating lease assets (*) Operating lease right-of-use assets $ 120,156 $ 144,098 Total lease assets $ 120,156 $ 144,098 Liabilities: Current lease liabilities Accrued expenses and other liabilities 23,932 22,741 Long-term lease liabilities Long-term operating lease liabilities 114,146 124,353 Total lease liabilities $ 138,078 $ 147,094 (*) Following the closure of Sdot Yam plant, the Company evaluated it's right of use asset resulted from non-cancelable lease agreement effective through 2032. Based on future estimated sublease the Company recorded an impairment of $16,575 during 2023. Lease term and discount rate: December 31, 2023 December 31, 2022 Weighted-average remaining lease term — operating leases 7.29 years 7.92 years Weighted-average discount rate — operating leases 2.74% 2.47% |
Schedule of Components of Operating Lease Cost | December 31, 2023 December 31, 2022 Operating lease cost: Operating lease expense $ 28,771 $ 27,583 Variable lease expense (*) 1,113 2,123 Sublease income (477 ) (999 ) Total operating lease cost $ 29,407 $ 28,707 (*) Includes short-term leases, index, maintenance and variable lease costs. |
Schedule of Operating Lease Liabilities | December 31, 2024 25,963 2025 23,534 2026 21,206 2027 17,816 2028 14,997 2029 and thereafter 47,780 Total future lease payments (*) 151,296 Less imputed interest (13,218 ) Total $ 138,078 (*) Total lease payments have not been reduced by sublease rental payments of approximately $326 due in the future under non-cancelable subleases. |
Schedule of Supplemental Cash Flow Information | December 31, 2023 December 31, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 27,471 $ 26,003 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Cumulative Product claims Activity | Year ended December 31, 2023 2022 2021 Outstanding claims, January 1, 221 203 173 New claims 63 87 73 Settled and dismissed claims (60 ) (69 ) (43 ) Outstanding claims, December 31 224 221 203 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Income Taxes | December 31, 2023 2022 Deferred tax assets: Goodwill and Intangible assets $ 227 $ 253 Other temporary differences including operating lease (1) 28,558 35,277 Temporary differences related to inventory (2) 9,068 8,150 Property and equipment 3,315 2,834 Carryforward losses, deductions and credits (3) 10,451 4,569 Less-valuation allowance (29,198 ) (1,796 ) Total deferred tax assets 22,421 49,287 Deferred tax liabilities: Property and equipment (2,844 ) (8,680 ) Intangible Assets (1,533 ) (1,687 ) Other temporary differences including operating lease (17,989 ) (26,957 ) Total deferred tax liabilities (22,366 ) (37,324 ) Deferred tax $ 55 $ 11,963 (1) Deriving mainly from provision for labor related, provision for loss contingencies and lease accounting in accordance with ASC842. (2) Deriving mainly from the provision for slow moving inventory and IRS section 263(a). (3) Parent company and certain subsidiaries have tax loss carry-forwards totaling approximately $141,560 which can be carried forward and offset against taxable income, these carry-forward tax losses have no expiration date. In addition to the above, the Company carried back its 2020 U.S. subsidiaries losses in accordance with the CARES act. |
Schedule of Reconciliation of Effective Tax Rate to Statutory Tax Rate | Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income $ (86,959 ) $ (55,608 ) $ 19,839 Statutory tax rate in Israel 23 % 23 % 23 % Income (loss) taxes at statutory rate $ (20,001 ) $ (12,790 ) $ 4,563 Increase (decrease) in tax expenses resulting from: Tax benefit arising from reduced rate as an "Preferred Enterprise" 9,996 2,622 (1,245 ) Non-deductible expenses, net 1,818 10,745 1,039 Increase (decrease) in taxes from prior years, also related to settlement with tax authorities 419 (735 ) (1,502 ) Tax adjustment in respect of foreign subsidiaries' different tax rates (1,120 ) (239 ) (650 ) Provision for withholding tax assets 2,828 - - Uncertain tax position - - 110 Changes in valuation allowance 27,402 1,079 (385 ) Others (61 ) 76 20 Income tax expense $ 21,281 $ 758 $ 1,950 Effective tax rate (24.5 )% (1 )% 10 % Per share amounts (basic and diluted) of the tax benefit resulting from an "Preferred Enterprise" $ 0.29 $ (0.04 ) $ (0.04 ) |
Schedule of Income before Taxes on Income | Year ended December 31, 2023 2022 2021 Domestic $ (38,831 ) $ (18,671 ) $ 19,539 Foreign (48,128 ) (36,937 ) 300 $ (86,959 ) $ (55,608 ) $ 19,839 |
Schedule of Tax Expenses on Income | Year ended December 31, 2023 2022 2021 Current taxes $ 9,373 $ 6,832 $ 6,423 Deferred taxes 11,908 (6,074 ) (4,473 ) $ 21,281 $ 758 $ 1,950 Domestic $ 14,084 $ 436 $ 1,190 Foreign 7,197 322 760 $ 21,281 $ 758 $ 1,950 |
Schedule of Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | Gross tax liabilities at January 1, 2021 $ 3,663 Increase in tax positions for current year 110 Gross tax liabilities at December 31, 2021 3,773 Increase in tax positions for current year (882 ) Gross tax liabilities at December 31, 2022 2,891 Release of tax position of prior years - Gross tax liabilities at December 31, 2023 $ 2,891 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Capital | Authorized Outstanding December 31, December 31, 2023 2022 2023 2022 Number of shares Ordinary shares of NIS 0.04 par value each 200,000,000 200,000,000 34,532,452 34,507,303 |
Schedule of Stock Option Activity | Number of options Weighted average exercise price Aggregate intrinsic value Outstanding - beginning of the year 1,546,150 14.58 - Granted 1,315,800 4.71 Exercised - - Forfeited (582,550 ) 15.72 Outstanding - end of the year 2,279,400 8.63 - Options exercisable at the end of the year 641,325 15.41 - Vested and expected to vest 641,325 15.41 - |
Schedule of Activities Relating to Company's RSUs Granted to Employees | Number of RSUs Weighted average fair value Aggregate intrinsic value Outstanding - end of the year 74,887 12.17 428 Granted 23,809 4.11 Exercised (25,477 ) 11.77 Forfeited (12,508 ) 2.80 Outstanding - end of the year 60,711 8.51 227 RSUs exercisable at the end of the year - - - Vested and expected to vest 60,711 8.51 227 |
Schedule of Awards Outstanding | Awards outstanding Awards exercisable Exercise price Number of options Weighted average remaining contractual life (years) Weighted average exercise price per share Number of options Weighted average remaining contractual life (years) Weighted average exercise price $0.01 (RSUs) 60,711 5.64 $ 0.01 - - $ - $4.0-9.5 1,455,200 6.25 $ 5.01 23,150 5.68 $ 8.07 $10.2-19.7 709,200 3.32 $ 13.13 503,175 2.90 $ 13.17 $20.3-29.5 115,000 0.67 $ 26.70 115,000 0.67 $ 26.70 2,340,111 641,325 |
Schedule of Compensation Expenses | December 31, 2023 2022 Cost of revenues $ 95 $ 315 Research 89 69 Marketing and selling expenses 298 201 General and administrative expenses 543 917 Total $ 1,025 $ 1,502 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Maturity of Debt Obligations | Year ended December 31, 2023 2022 2021 Cost of revenues $ 8,232 $ 8,870 $ 8,157 Research and development $ 486 $ 574 $ 547 Selling and marketing $ 621 $ 730 $ 723 General and administrative $ 848 $ 951 $ 873 Finance expenses, net $ - $ (392 ) $ 106 |
Schedule of Transactions and Balances with Related Party and Other Loan | December 31, 2023 2022 Related party balances (1) $ 257 $ 283 Other loans(2) $ 479 $ 483 1. Related to the above mentioned agreements with related party. 2. During 2021, the Company assumed 55% of the shareholders loan in Lioli. |
MAJOR CUSTOMER AND GEOGRAPHIC_2
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues | Year ended December 31, 2023 2022 2021 USA $ 271,647 $ 342,293 $ 305,353 Canada 75,462 93,377 84,467 Latin America 3,285 4,481 4,702 Australia 106,223 116,284 118,714 Asia 25,959 34,607 30,390 EMEA 59,908 63,320 60,836 Israel 22,747 36,444 39,430 $ 565,231 $ 690,806 $ 643,892 |
Schedule of Long-Lived Assets | December 31, 2023 2022 USA $ 100,886 $ 149,173 Canada 4,685 3,292 Australia 7,885 10,337 Asia 22,630 24,353 EMEA 13,794 8,488 Israel 100,013 126,564 $ 249,893 $ 322,207 |
SELECTED SUPPLEMENTARY STATEM_2
SELECTED SUPPLEMENTARY STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of Financial and Other Income (Expenses), Net | Year ended December 31, 2023 2022 2021 Finance expenses: Interest in respect credit cards and bank fees $ 4,957 $ 5,380 $ 4,702 Interest in respect of loans 377 346 2,035 Amortization/accretion of premium/discount on marketable securities - 237 200 Realized gain/loss from marketable securities, net 63 - 134 Changes in derivatives fair value - 1,509 - Foreign exchange transactions losses 154 3,818 6,023 5,551 11,290 13,094 Finance income: Interest in respect of cash and cash equivalent and short-term bank deposits 1,473 20 147 Changes in derivatives fair value 680 - 4,950 Interest income from marketable securities 107 287 407 Foreign exchange transactions gains 4,360 14,062 - 6,620 14,369 5,504 Finance expenses (income), net $ (1,069 ) $ (3,079 ) $ 7,590 |
Schedule of Computation of Basic and Diluted Net Earnings Per Share | Numerator : Year ended December 31, 2023 2022 2021 Net income (loss) attributable to controlling interest, as reported $ (107,656 ) $ (57,054 ) $ 18,966 Adjustment to redemption value of non-controlling interest (532 ) (198 ) (1,399 ) Numerator for basic and diluted net income (loss) per share $ (108,188 ) $ (57,252 ) $ 17,567 Denominator (in thousands): Year ended December 31, 2023 2022 2021 Denominator for basic income (loss) per share 34,519 34,488 34,462 Effect of dilutive stock based awards - - 108 Denominator for diluted income (loss) per share 34,519 34,488 34,570 Earnings per share : Basic and diluted earnings (loss) per share $ (3.13 ) $ (1.66 ) $ 0.51 |
GENERAL (Acquisition of Lioli C
GENERAL (Acquisition of Lioli Ceramica Pvt Ltd) (Narrative) (Details) $ in Thousands | 1 Months Ended | ||||
Oct. 05, 2020 USD ($) | Mar. 31, 2022 USD ($) shares | Dec. 31, 2023 USD ($) Country | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of countries in which entity sells products | Country | 60 | ||||
Lioli Ceramica Pvt Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 55% | ||||
Total net consideration | $ 13,574 | ||||
Deferred consideration additional amount | 10,000 | $ 1,780 | |||
Fair value of Deferred consideration | $ 1,492 | ||||
Fair value of non-controlling interests | $ 7,789 | $ 7,903 | |||
Purchased additional shares | shares | 9,870,000 | ||||
Purchased additional share amount | $ 2,500 | ||||
Lioli Ceramica Pvt Ltd [Member] | Lioli [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership interest, percentage | 60.40% |
GENERAL (Acquisition of Omicron
GENERAL (Acquisition of Omicron Supplies, LLC) (Narrative) (Details) - Omicron Acquisition [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |
Ownership interest, percentage | 100% |
Total net consideration | $ 18,830 |
GENERAL (Acquisition of Magrab
GENERAL (Acquisition of Magrab Naturtsen AB) (Narrative) (Details) - Magrab Naturtsen Ab [Member] kr in Thousands, $ in Thousands | 12 Months Ended | |||||
Jul. 06, 2022 USD ($) | Dec. 31, 2023 SEK (kr) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 06, 2022 SEK (kr) | Jul. 06, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||||
Ownership interest, percentage | 100% | 100% | ||||
Total net consideration | $ 3,109 | kr 7,250 | $ 700 | |||
Deferred consideration additional amount | kr 10,500 | $ 1,000 | ||||
Fair value of Deferred consideration | $ 875 | |||||
Additional contingent consideration arrangement amount | kr 4,000 | $ 380 | ||||
Useful life | 8 years | |||||
Acquisition-related costs | $ 80 |
GENERAL (Major suppliers) (Narr
GENERAL (Major suppliers) (Narrative) (Details) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Concentration Risk [Line Items] | |
Concentration risk, threshold percentage | 69% |
Mikroman [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 63% |
Percentage of total minerals of the company | 44% |
Ekom [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 32% |
Percentage of total minerals of the company | 22% |
GENERAL (Schedule of Purchase P
GENERAL (Schedule of Purchase Price Allocation) (Details) kr in Thousands, $ in Thousands | 12 Months Ended | |||||
Jul. 06, 2022 USD ($) | Dec. 31, 2023 SEK (kr) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Identifiable intangible assets: | ||||||
Goodwill | $ 0 | $ 0 | $ 45,800 | |||
Magrab Naturtsen Ab [Member] | ||||||
Components of Purchase Price: | ||||||
Cash | $ 2,607 | |||||
Contingent consideration | 875 | |||||
Less: Cash acquired | 373 | |||||
Net for allocation | 3,109 | kr 7,250 | $ 700 | |||
Net tangible assets (liabilities): | ||||||
Trade receivables and other current assets, net | 524 | |||||
Property, plant and equipment, net | 41 | |||||
Inventories, net | 1,233 | |||||
ROU assets | 446 | |||||
Trade payables | (523) | |||||
Accrued expenses and other liabilities | (378) | |||||
Short-term lease liability | (22) | |||||
Long-term lease and other non-current liabilities | (424) | |||||
Total net tangible assets | 897 | |||||
Identifiable intangible assets: | ||||||
Customer relationships | [1] | 1,789 | ||||
Deferred tax liabilities | (369) | |||||
Total identifiable intangible assets acquired | 1,420 | |||||
Goodwill | [2] | 792 | ||||
Total purchase price allocation | $ 3,109 | |||||
[1]Customer relationships represent the underlying relationships and agreements with Magrab's customer base. In assessing the value of the Customer Relationships, the Company used an income approach method. The Customer Relationships’ economic useful life is estimated at approximately 8 years, amortized using the straight-line method.[2]The goodwill is primarily attributable to expected synergies resulting from the acquisition. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Severance pay: | |||||
Severance pay expense | $ 2,102 | $ 2,614 | $ 2,539 | ||
Basic and diluted net income per share: | |||||
Anti-dilutive stock options excluded from the calculations of Diluted EPS | 2,310,543 | 1,534,500 | 0 | ||
Advertising expenses: | |||||
Advertising expenses | $ 15,726 | $ 14,777 | $ 15,307 | ||
Impairment of Property Plant and Equipment | 28,472 | 26,429 | |||
Impairment loss | 27,486 | ||||
Impairment of Right of Use Asset | 16,575 | ||||
Goodwill | 0 | 0 | 45,800 | ||
Goodwill and Intangible Asset Impairment | 47,939 | 71,258 | $ 0 | ||
Goodwill Impairment | [1] | (44,829) | $ (44,829) | ||
Employee termination costs | 1,000 | ||||
Decommissioning and restoration costs | 1,900 | ||||
Total restructuring expenses for the manufacturing facilities closures | 2,900 | ||||
Accrued expenses and other liabilities accrued | 1,500 | ||||
Lioli Ceramica Pvt Ltd [Member] | |||||
Advertising expenses: | |||||
Purchased additional shares | 9,870,000 | ||||
Purchased additional share amount | $ 2,500 | ||||
Lioli Ceramica Pvt Ltd [Member] | Lioli [Member] | |||||
Advertising expenses: | |||||
Ownership interest, percentage | 60.40% | ||||
Sdot Yam [Member] | |||||
Advertising expenses: | |||||
Impairment loss | 986 | ||||
Impairment of Right of Use Asset | $ 16,575 | ||||
[1]The Company performs its annual testing of goodwill in the fourth quarter of each year in accordance with ASC 350 (see also Note 2l). During the fourth quarter of 2022, the Company conducted an impairment test of its reporting unit. Due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates, a pre-tax, non-cash goodwill impairment charge of $44,829 was recorded. |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 21,162 | $ 41,699 |
Unrealized loss recorded in accumulated other comprehensive income (loss) | 0 | 333 |
Derivative Assets | 539 | 371 |
Derivative Liabilities | 0 | (942) |
Gain recognized in other comprehensive income, net | 951 | (709) |
Gain (loss) recognized in statements of income | (1,880) | (4,581) |
Foreign Exchange Forward Contracts [Member] | Designated As Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain recognized in other comprehensive income, net | 951 | (709) |
Foreign Exchange Forward Contracts [Member] | Designated As Hedging [Member] | Cost of revenues and Operating expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in statements of income | (3,306) | (2,555) |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 0 | 13,247 |
Foreign exchange option and forward contracts [Member] | Designated As Hedging [Member] | Other Accounts Receivable and Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 539 | 39 |
Foreign exchange option and forward contracts [Member] | Designated As Hedging [Member] | Accrued expenses and other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | (450) |
Foreign exchange option and forward contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain recognized in other comprehensive income, net | 0 | 0 |
Foreign exchange option and forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Financial expenses, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in statements of income | 1,313 | (1,506) |
Foreign exchange option and forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Accounts Receivable and Prepaid Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 333 |
Foreign exchange option and forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | (62) |
Styrene forward contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain recognized in other comprehensive income, net | 0 | 0 |
Styrene forward contract [Member] | Not Designated as Hedging Instrument [Member] | Financial expenses, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in statements of income | 113 | (520) |
Styrene forward contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued expenses and other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0 | $ (430) |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Inventories) (Details) - Inventory Valuation Reserve [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Inventory provision, beginning of year | $ 21,738 | $ 16,789 |
Increase in inventory provision | 9,848 | 11,165 |
Write off | (4,148) | (6,216) |
Inventory provision, end of year | $ 27,438 | $ 21,738 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Property, plant and equipment, net) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation description | Over the shorter of the term of the lease or the life of the asset |
Machinery and Manufacturing Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 10% |
Machinery and Manufacturing Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 4% |
Machinery and Manufacturing Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 33% |
Office Equipment and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 7% |
Office Equipment and Furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 7% |
Office Equipment and Furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 33% |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 20% |
Motor Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 10% |
Motor Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 30% |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 4% |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Rate of depreciation (in percent) | 5% |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Warranty) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
January 1, | $ 2,501 | $ 2,680 |
Charged to costs and expenses relating to new sales | 1,289 | 1,461 |
Costs of product warranty claims | (1,792) | (1,923) |
Foreign currency translation adjustments | 360 | 283 |
December 31, | $ 2,358 | $ 2,501 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Concentrations of credit risk) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
January 1, | $ 9,756 | $ 9,036 |
Charges to expenses | 3,654 | 2,141 |
Write offs | (1,158) | (1,144) |
Foreign currency translation adjustments | (38) | (277) |
December 31, | $ 12,214 | $ 9,756 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Fair value of financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Derivative assets | $ 539 | $ 371 | |
Liabilities | |||
Derivative Liabilities | 0 | (942) | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market mutual funds [Member] | |||
Assets | |||
Cash equivalents | 0 | 27 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Derivative assets | 539 | 371 | |
Liabilities | |||
Derivative Liabilities | 0 | (942) | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate bonds [Member] | |||
Assets | |||
Short-term marketable securities | 0 | 7,077 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Liabilities | |||
Redeemable Non-Controlling Interest | [1] | $ 7,789 | $ 7,903 |
[1]The change in fair value of redeemable non-controlling interest valued using significant unobservable inputs (Level 3), was included in note 2x. The Company estimated the fair value of redeemable non-controlling interest using Monte Carlo simulation. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, the discount rate and the volatility. The fair value measurement is based on inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from assumptions made within the probability-weighted analyses will result in adjustments to this liability in future periods. |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, Attributable to Parent | $ 315,059 | $ 421,046 | $ 494,295 | $ 487,350 | |
Accumulated loss on marketable securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, Attributable to Parent | 0 | (125) | |||
Accumulated income (loss) on derivative instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, Attributable to Parent | 539 | (412) | |||
Accumulated foreign currency translation differences and other [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, Attributable to Parent | (8,941) | (9,041) | (961) | ||
Accumulated other comprehensive loss, net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, Attributable to Parent | [1] | $ (8,402) | $ (9,578) | $ (704) | $ 1,083 |
[1]Accumulated other comprehensive income (loss), net, comprised of foreign currency translation, hedging transactions and marketable securities. |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Accumulated Balances of Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 421,046 | $ 494,295 | $ 487,350 | |
Total other comprehensive income (loss), net of tax | 1,114 | (9,726) | (1,942) | |
Balance | 315,059 | 421,046 | 494,295 | |
Unrealized gains (losses) on derivative instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (412) | 297 | ||
Other comprehensive income (loss) before reclassifications | (2,355) | (3,264) | ||
Amounts reclassified from AOCI | 3,306 | 2,555 | ||
Total other comprehensive income (loss), net of tax | 951 | (709) | ||
Balance | 539 | (412) | 297 | |
Unrealized gains (losses) on marketable securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (125) | (40) | ||
Other comprehensive income (loss) before reclassifications | 125 | (85) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 125 | (85) | ||
Balance | 0 | (125) | (40) | |
Accumulated foreign currency translation differences and other [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (9,041) | (961) | ||
Other comprehensive income (loss) before reclassifications | 100 | (8,080) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 100 | (8,080) | ||
Balance | (8,941) | (9,041) | (961) | |
Total [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | [1] | (9,578) | (704) | 1,083 |
Other comprehensive income (loss) before reclassifications | (2,130) | (11,429) | ||
Amounts reclassified from AOCI | 3,306 | 2,555 | ||
Total other comprehensive income (loss), net of tax | 1,176 | (8,874) | ||
Balance | [1] | $ (8,402) | $ (9,578) | $ (704) |
[1]Accumulated other comprehensive income (loss), net, comprised of foreign currency translation, hedging transactions and marketable securities. |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Losses Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | $ 473,292 | $ 527,561 | $ 472,394 |
Research and development | 5,086 | 4,098 | 4,216 |
Marketing and selling | 82,222 | 94,412 | 85,725 |
General and administrative | 49,490 | 51,596 | 50,845 |
Total loss | 108,240 | 56,366 | $ (17,889) |
Reclassification of AOCI [Member] | Accumulated losses on derivative instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | 2,287 | 1,921 | |
Research and development | 102 | 68 | |
Marketing and selling | 414 | 249 | |
General and administrative | 503 | 317 | |
Total loss | $ 3,306 | $ 2,555 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES (Accounting for stock-based compensation) (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Stock Option [Member] | Minimum [Member] | ||
The fair value of each stock option award is estimated at the date of grant with the following weighted average assumptions: | ||
Dividend yield | 0% | 0% |
Expected volatility | 40% | 40% |
Risk-free interest rate | 4% | 1% |
Expected life (years) | 4 years | 4 years |
Vesting period | 3 years | |
Employee Stock Option [Member] | Maximum [Member] | ||
The fair value of each stock option award is estimated at the date of grant with the following weighted average assumptions: | ||
Dividend yield | 3% | 3% |
Expected volatility | 46% | 45% |
Risk-free interest rate | 4.90% | 4.30% |
Expected life (years) | 6 years 10 months 24 days | 5 years 6 months |
Vesting period | 4 years | |
RSUs [Member] | ||
The fair value of each stock option award is estimated at the date of grant with the following weighted average assumptions: | ||
Vesting period | 4 years |
SIGNIFICANT ACCOUNTING POLIC_15
SIGNIFICANT ACCOUNTING POLICIES (Redeemable Non-Controlling Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning of the year | $ 7,903 | $ 7,869 | $ 7,701 | |
Assuming the non controlling interest due to acquisition | 0 | 0 | 0 | |
Net income (loss) attributable to non-controlling interest | (584) | 688 | (1,077) | |
Adjustment to Put option value | [1] | 532 | 198 | 1,399 |
Foreign currency translation adjustments | (62) | (852) | (154) | |
Redeemable non-controlling interest - end of the year | $ 7,789 | $ 7,903 | $ 7,869 | |
[1]See also Note 1b. |
MARKETABLE SECURITIES (Summary
MARKETABLE SECURITIES (Summary of Available-for-sale Marketable Securities) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Available-for-sale – matures within one year: | |
Amortized cost, within one year | $ 7,164 |
Gross unrealized gains, within one year | 0 |
Gross unrealized losses, within one year | 126 |
Accrued Interest, within one year | 39 |
Fair value, within one year | 7,077 |
Corporate bonds [Member] | |
Available-for-sale – matures within one year: | |
Amortized cost, within one year | 7,164 |
Gross unrealized gains, within one year | 0 |
Gross unrealized losses, within one year | 126 |
Accrued Interest, within one year | 39 |
Fair value, within one year | $ 7,077 |
OTHER ACCOUNTS RECEIVABLE AND_3
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Schedule of Other Accounts Receivable and Prepaid Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 5,388 | $ 6,313 | |
Government authorities | 4,410 | 13,005 | |
Advances to suppliers | 3,102 | 3,439 | |
Derivatives | 539 | 371 | |
Other receivables | [1] | 12,050 | 9,442 |
Other accounts receivables and prepaid expenses | $ 25,489 | $ 32,570 | |
[1]Including mainly insurance receivables, see also note 11. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,884 | $ 32,443 |
Work-in-progress | 2,390 | 4,058 |
Finished goods | 122,172 | 201,731 |
Inventories | $ 136,446 | $ 238,232 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 516,810 | $ 505,992 | ||
Accumulated depreciation | 393,330 | 336,700 | ||
Depreciated cost | 123,480 | 169,292 | ||
Depreciation expense | 27,387 | 33,813 | $ 32,394 | |
Non cash pre-tax impairment charges | 28,472 | 26,429 | ||
Machinery and Manufacturing Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [1] | 339,657 | 334,156 | |
Accumulated depreciation | 249,499 | 230,063 | ||
Investment grants received | 7,463 | |||
Office Equipment and Furniture [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 40,012 | 36,079 | ||
Accumulated depreciation | 27,866 | 24,491 | ||
Motor Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 4,933 | 5,139 | ||
Accumulated depreciation | 3,908 | 3,832 | ||
Buildings and Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 131,269 | 129,679 | ||
Accumulated depreciation | 56,984 | 51,722 | ||
Prepaid Expenses Related to Operating Lease [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [2] | 939 | 939 | |
Accumulated depreciation | 173 | 163 | ||
Impairment of fixed assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of fixed assets | [3] | $ 54,900 | $ 26,429 | |
[1]Presented net of investment grants received in the total amount of $7,463.[2]Until 2012, the Company leased land from the Israel Lands Administration ("ILA") for its Bar-Lev manufacturing facility. The lease term started on February 6, 2005. The lease is for an initial non-cancellable term of 49 years, with a renewal option of an additional 49 years.[3]Non cash pre-tax impairment charges recognized in 2023 were $28,472, Non cash pre-tax impairment charges recognized in 2022 were $26,429 (see also Note 2k) |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
GOODWILL [Abstract] | |||
Beginning balance | $ 0 | $ 45,800 | |
Acquired through business combination | [1] | 792 | 792 |
Goodwill Impairment | [2] | (44,829) | (44,829) |
Foreign currency translation adjustments | (1,763) | (1,763) | |
Ending balance | $ 0 | $ 0 | |
[1]Resulting from Magrab acquisition, see also Notes 1(d).[2]The Company performs its annual testing of goodwill in the fourth quarter of each year in accordance with ASC 350 (see also Note 2l). During the fourth quarter of 2022, the Company conducted an impairment test of its reporting unit. Due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates, a pre-tax, non-cash goodwill impairment charge of $44,829 was recorded. |
GOODWILL AND INTANGIBLES (Narra
GOODWILL AND INTANGIBLES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Goodwill [Line Items] | |||
Goodwill Impairment | [1] | $ 44,829 | $ 44,829 |
Amortization expense | 2,620 | 2,531 | |
Customer Relationships [Member] | |||
Goodwill [Line Items] | |||
Acquired through business combination | [2] | 13,983 | 13,983 |
Amortization expense | (7,687) | $ (5,067) | |
Customer Relationships [Member] | Magrab Naturtsen Ab [Member] | |||
Goodwill [Line Items] | |||
Acquired through business combination | $ 1,789 | ||
[1]The Company performs its annual testing of goodwill in the fourth quarter of each year in accordance with ASC 350 (see also Note 2l). During the fourth quarter of 2022, the Company conducted an impairment test of its reporting unit. Due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates, a pre-tax, non-cash goodwill impairment charge of $44,829 was recorded.[2]In 2022, includes $1,789 Acquired through business combination of Magrab. |
GOODWILL AND INTANGIBLES (Sched
GOODWILL AND INTANGIBLES (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 2,620 | $ 2,531 | |
Foreign currency translation adjustment | (39) | (99) | |
Total intangibles assets | 6,257 | 8,817 | |
Customer Relationships [Member] | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [1] | 13,983 | 13,983 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (7,687) | $ (5,067) | |
[1]In 2022, includes $1,789 Acquired through business combination of Magrab. |
GOODWILL AND INTANGIBLES (Sch_2
GOODWILL AND INTANGIBLES (Schedule of Estimated Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
GOODWILL [Abstract] | ||
2024 | $ 2,662 | |
2025 | 2,472 | |
2026 | 224 | |
2027 | 224 | |
2028 | 224 | |
2029 and on | 451 | |
Total | $ 6,257 | $ 8,817 |
SHORT-TERM BANK CREDIT AND CU_3
SHORT-TERM BANK CREDIT AND CURRENT MATURITIES OF LONG-TERM LOAN (Details) ₨ in Thousands, $ in Thousands | Dec. 31, 2023 INR (₨) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 INR (₨) | Dec. 31, 2022 USD ($) | |
Short-term Debt [Line Items] | |||||
Short-term bank credit | $ | [1] | $ 0 | $ 21,183 | ||
Weighted average interest | |||||
Short-term bank credit | [1] | 0% | 0% | 6.30% | 6.30% |
Total | ₨ 5,118 | ₨ 26,135 | |||
Rupees [Member] | |||||
Short-term Debt [Line Items] | |||||
Short-term bank credit | [2] | 2,801 | 2,674 | ||
Current maturities of Long- term bank loan and other | [2] | ₨ 2,317 | ₨ 2,278 | ||
Weighted average interest | |||||
Short-term bank credit | [2] | 10.10% | 10.10% | 7.60% | 7.60% |
Current maturities of long-term loans | [2] | 8.90% | 8.90% | 7.60% | 7.60% |
[1]As of December 31, 2023, the company has no credit lines in Israeli banks. The credit line outstanding as of December 31, 2022, in Israeli banks was fully repaid during 2023.[2]Credit line and bank loan in Lioli - During 2022, Lioli engaged with a new bank and signed a new loan agreement. The loan agreement with the bank in Lioli contains customary covenants. Lioli is in compliance with the requirement of the financial covenants under the agreement of own capital contribution. The Loan Agreement also contains certain customary negative covenants that require Lioli to refrain from certain actions unless bank’s consent obtained. Lioli debt is secured by a SBLC (Stand By Letter of Credit) from Caesarstone and floating charge on all of Lioli’s assets. (see also Note 15). |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 13,410 | $ 13,029 |
Accrued expenses | 8,833 | 12,003 |
Advances from customers | 2,413 | 1,998 |
Taxes payable | 5,617 | 4,892 |
Warranty provision | 1,154 | 1,239 |
Derivatives | 0 | 942 |
Sales return provision | 875 | 604 |
Operating lease liability short-term | 23,932 | 22,741 |
Other Liabilities, Current | 660 | 1,329 |
Accrued expenses and other liabilities | $ 56,894 | $ 58,777 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |
Impairment charge of ROU asset | $ 16,575 |
Sublease rental payments due in the future | $ 326 |
LEASES (Schedule of Lease-Relat
LEASES (Schedule of Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 120,156 | $ 144,098 |
Current lease liabilities Accrued expenses and other liabilities | 23,932 | 22,741 |
Long-term lease liabilities | 114,146 | 124,353 |
Debt and Lease Obligation | $ 138,078 | $ 147,094 |
Weighted average remaining lease term (years) | 7 years 3 months 14 days | 7 years 11 months 1 day |
Weighted average discount rate | 2.74% | 2.47% |
LEASES (Schedule of Components
LEASES (Schedule of Components of Operating Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Operating lease cost: | |||
Operating lease expense | $ 28,771 | $ 27,583 | |
Variable lease expense | [1] | 1,113 | 2,123 |
Sublease income | (477) | (999) | |
Total operating lease cost | $ 29,407 | $ 28,707 | |
[1]Includes short-term leases, index, maintenance and variable lease costs. |
LEASES (Schedule of Operating L
LEASES (Schedule of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
Lessee Disclosure [Abstract] | ||
2024 | $ 25,963 | |
2025 | 23,534 | |
2026 | 21,206 | |
2027 | 17,816 | |
2028 | 14,997 | |
2029 and thereafter | 47,780 | |
Total future lease payments | 151,296 | [1] |
Less imputed interest | (13,218) | |
Total | $ 138,078 | |
[1]Total lease payments have not been reduced by sublease rental payments of approximately $326 due in the future under non-cancelable subleases. |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 27,471 | $ 26,003 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Legal proceedings and contingencies) (Details) $ in Thousands, € in Millions, ₪ in Millions, $ in Millions | 12 Months Ended | |||||||||||
Jan. 15, 2021 EUR (€) | Jan. 15, 2021 USD ($) | Jan. 04, 2018 ILS (₪) | Jan. 04, 2018 USD ($) | Dec. 31, 2023 USD ($) Claim | Dec. 31, 2022 ILS (₪) Claim | Dec. 31, 2022 USD ($) Claim | Dec. 31, 2021 USD ($) Claim | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Apr. 27, 2014 ILS (₪) | Apr. 27, 2014 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||
Number of claims filed | Claim | 63,000 | 87,000 | 87,000 | 73,000 | ||||||||
Total liability imposed | $ (4,770) | $ 568 | $ 3,283 | |||||||||
Partially received litigation amount | ₪ 7 | 2,100 | ||||||||||
Loss contingency liability, current | 17,595 | $ 16,106 | ||||||||||
Loss contingency liability, non-current | 19,572 | 11,814 | ||||||||||
Settlement amount for claims | € 7.2 | $ 8,900 | ₪ 9 | $ 2,557 | ||||||||
Terms of extension agreement | 5 years | |||||||||||
USA [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Insurance receivable | 20,000 | |||||||||||
Canada [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Insurance receivable | $ 20 | |||||||||||
Health Claims [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of claims filed | Claim | 150 | |||||||||||
Individual Claims [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of claims filed | Claim | 9 | |||||||||||
New Silicosis Claim [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible loss | ₪ 216 | $ 56,180 | ||||||||||
Legal settelments and loss contingencies | $ 4,847 | 597 | ||||||||||
Loss contingency liability | 35,980 | 25,717 | ||||||||||
Loss contingency liability, current | 16,408 | 14,509 | ||||||||||
Loss contingency liability, non-current | 19,572 | 11,208 | ||||||||||
Insurance receivable | $ 7,306 | $ 8,361 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Summary Of Cumulative product Claims Activity) (Details) - Claim Claim in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingency Pending Claims Numer Roll Forward | |||
Outstanding claims, January 1 | 221 | 203 | 173 |
New claims | 63 | 87 | 73 |
Settled and dismissed claims | (60) | (69) | (43) |
Outstanding claims, December 31 | 224 | 221 | 203 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES (Purchase obligation) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligation for 2021 | $ 18,611 |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees and Obligations) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees outstanding | $ 8,327 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2014 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 23% | 23% | 23% | |||
Population of enterprise sales in a specific market | population of at least 14 million | |||||
Tax loss carry-forwards | $ 141,560 | |||||
Unrecognized Tax Benefits | 2,891 | $ 2,891 | $ 3,773 | $ 3,663 | ||
Attributable to Approved Enterprise Programs [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax-exempt earnings | 20,169 | |||||
Tax liability, if distributed | $ 5,042 | |||||
Machinery and Manufacturing Equipment [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Accelerated depreciation rate | 200% | |||||
Building [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Accelerated depreciation rate | 400% | |||||
Minimum [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Percentage of industrial enterprise sales revenues | 25% | |||||
Development Area A [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 20% | |||||
Foreign residents from the preferred enterprise earnings [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 20% | |||||
Israel [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2019 | |||||
Australia [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 30% | |||||
Australia [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2019 | |||||
Canada [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 27.70% | |||||
Canada [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2018 | |||||
United States [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 25.30% | |||||
United States [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2019 | |||||
Singapore [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 17% | |||||
Singapore [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2019 | |||||
England [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 25% | |||||
England [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2019 | |||||
India [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 30% | |||||
India [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2022 | |||||
Sweden [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate tax rate | 20.60% | |||||
Sweden [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2022 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred tax assets | |||
Goodwill and Intangible assets | $ 227 | $ 253 | |
Other temporary differences including operating lease | [1] | 28,558 | 35,277 |
Temporary differences related to inventory | [2] | 9,068 | 8,150 |
Property and equipment | 3,315 | 2,834 | |
Carryforward losses, deductions and credits | [3] | 10,451 | 4,569 |
Less-valuation allowance | (29,198) | (1,796) | |
Total deferred tax assets | 22,421 | 49,287 | |
Deferred tax liabilities | |||
Property and equipment | (2,844) | (8,680) | |
Intangible Assets | (1,533) | (1,687) | |
Other temporary differences including operating lease | (17,989) | (26,957) | |
Total deferred tax liabilities | (22,366) | (37,324) | |
Deferred tax assets, net | $ 55 | $ 11,963 | |
[1]Deriving mainly from provision for labor related, provision for loss contingencies and lease accounting in accordance with ASC842.[2]Deriving mainly from the provision for slow moving inventory and IRS section 263(a).[3]Parent company and certain subsidiaries have tax loss carry-forwards totaling approximately $141,560 which can be carried forward and offset against taxable income, these carry-forward tax losses have no expiration date. In addition to the above, the Company carried back its 2020 U.S. subsidiaries losses in accordance with the CARES act. |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Company's Effective Tax Rate to Statutory Tax Rate) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before taxes on income | $ (86,959) | $ (55,608) | $ 19,839 |
Statutory tax rate in Israel | 23% | 23% | 23% |
Income (loss) taxes at statutory rate | $ (20,001) | $ (12,790) | $ 4,563 |
Increase (decrease) in tax expenses resulting from: | |||
Tax benefit arising from reduced rate as an "Preferred Enterprise" | 9,996 | 2,622 | (1,245) |
Non-deductible expenses, net | 1,818 | 10,745 | 1,039 |
Increase (decrease) in taxes from prior years, also related to settlement with tax authorities | 419 | (735) | (1,502) |
Tax adjustment in respect of foreign subsidiaries' different tax rates | (1,120) | (239) | (650) |
Provision for withholding tax assets | 2,828 | 0 | 0 |
Uncertain tax position | 0 | 0 | 110 |
Changes in valuation allowance | 27,402 | 1,079 | (385) |
Others | (61) | 76 | 20 |
Income tax expense | $ 21,281 | $ 758 | $ 1,950 |
Effective tax rate | (24.50%) | (1.00%) | 10% |
Per share amounts (basic and diluted) of the tax benefit resulting from an "Preferred Enterprise" | $ 0.29 | $ (0.04) | $ (0.04) |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (38,831) | $ (18,671) | $ 19,539 |
Foreign | (48,128) | (36,937) | 300 |
Income (loss) before taxes on income | $ (86,959) | $ (55,608) | $ 19,839 |
TAXES ON INCOME (Schedule of Ta
TAXES ON INCOME (Schedule of Tax Expenses on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 9,373 | $ 6,832 | $ 6,423 |
Deferred taxes | 11,908 | (6,074) | (4,473) |
Income tax expense | 21,281 | 758 | 1,950 |
Domestic | 14,084 | 436 | 1,190 |
Foreign | 7,197 | 322 | 760 |
Taxes in respect of prior years | $ 21,281 | $ 758 | $ 1,950 |
TAXES ON INCOME (Reconciliati_2
TAXES ON INCOME (Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Gross tax liabilities, beginning balance | $ 2,891 | $ 3,773 | $ 3,663 |
Increase in tax positions for current year | 110 | ||
Release of tax position of prior years | 0 | ||
Decrease in tax position resulting from settlement | (882) | ||
Gross tax liabilities, ending balance | $ 2,891 | $ 2,891 | $ 3,773 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 17, 2020 | Feb. 29, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Quarterly cash dividend paid per share | $ 0.1 | ||||
Dividend paid | $ 8,625 | $ 10,681 | |||
Percentage amount of reported net income attributable to controlling interest | 50% | ||||
Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares authorized | 1,000,000 | ||||
Number of ordinary shares registered under Plan | 2,500,000 | 3,275,000 | |||
Options and restricted stock units outstanding | 2,340,110 | ||||
Ordinary shares reserved for issuance | 1,673,915 | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant-date fair value of options granted | $ 1.9 | $ 3.8 | $ 5.2 | ||
Weighted-average grant-date fair value of options vested | $ 12.96 | $ 12.3 | $ 14.07 | ||
Intrinsic value of options exercised | $ 0 | $ 0 | $ 0 | ||
Unrecognized compensation cost | $ 2,770 | ||||
Unrecognized compensation cost, weighted-average recognition period | 3 years |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Share Capital) (Details) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Ordinary shares, par value per share | ₪ 0.04 | ₪ 0.04 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares outstanding | 34,532,452 | 34,507,303 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of options | |
Outstanding - beginning of the year | shares | 1,546,150 |
Granted | shares | 1,315,800 |
Exercised | shares | 0 |
Forfeited | shares | (582,550) |
Outstanding - end of the year | shares | 2,279,400 |
Options exercisable at the end of the year | shares | 641,325 |
Vested and expected to vest | shares | 641,325 |
Weighted average exercise price | |
Outstanding - beginning of the year | $ / shares | $ 14.58 |
Granted | $ / shares | 4.71 |
Exercised | $ / shares | 0 |
Forfeited | $ / shares | 15.72 |
Outstanding - end of the year | $ / shares | 8.63 |
Options exercisable at the end of the year | $ / shares | 15.41 |
Vested and expected to vest | $ / shares | $ 15.41 |
Aggregate intrinsic value | |
Outstanding - beginning of the year | $ | $ 0 |
Outstanding - end of the year | $ | 0 |
Options exercisable at the end of the year | $ | 0 |
Vested and expected to vest | $ | $ 0 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Activities Relating to Company's RSUs Granted to Employees) (Details) - RSUs [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of RSUs | |
Outstanding - beginning of the year | shares | 74,887 |
Granted | shares | 23,809 |
Exercised | shares | (25,477) |
Forfeited | shares | (12,508) |
Outstanding - end of the year | shares | 60,711 |
RSUs exercisable at the end of the year | shares | 0 |
Vested and expected to vest | shares | 60,711 |
Weighted average fair value | |
Outstanding - beginning of the year | $ / shares | $ 12.17 |
Granted | $ / shares | 4.11 |
Exercised | $ / shares | 11.77 |
Forfeited | $ / shares | 2.8 |
Outstanding - end of the year | $ / shares | 8.51 |
RSUs exercisable at the end of the year | $ / shares | 0 |
Vested and expected to vest | $ / shares | $ 8.51 |
Aggregate intrinsic value | |
Outstanding - beginning of the year | $ | $ 428 |
Outstanding - end of the year | $ | 227 |
RSUs exercisable at the end of the year | $ | 0 |
Vested and expected to vest | $ | $ 227 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Awards Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding | shares | 2,340,111 |
Number of options exercisable | shares | 641,325 |
0.01 [Member] | RSUs [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price | $ 0.01 |
Number of options outstanding | shares | 60,711 |
Awards outstanding, weighted average remaining contractual life (years) | 5 years 7 months 20 days |
Awards outstanding, weighted average exercise price per share | $ 0.01 |
Number of options exercisable | shares | 0 |
Awards exercisable, weighted average exercise price | $ 0 |
$4.0-9.5 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, minimum | 4 |
Exercise price, maximum | $ 9.5 |
Number of options outstanding | shares | 1,455,200 |
Awards outstanding, weighted average remaining contractual life (years) | 6 years 3 months |
Awards outstanding, weighted average exercise price per share | $ 5.01 |
Number of options exercisable | shares | 23,150 |
Awards exercisable, weighted average remaining contractual life (years) | 5 years 8 months 4 days |
Awards exercisable, weighted average exercise price | $ 8.07 |
$ 10.2-19.7 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, minimum | 10.2 |
Exercise price, maximum | $ 19.7 |
Number of options outstanding | shares | 709,200 |
Awards outstanding, weighted average remaining contractual life (years) | 3 years 3 months 25 days |
Awards outstanding, weighted average exercise price per share | $ 13.13 |
Number of options exercisable | shares | 503,175 |
Awards exercisable, weighted average remaining contractual life (years) | 2 years 10 months 24 days |
Awards exercisable, weighted average exercise price | $ 13.17 |
$20.3-29.5 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, minimum | 20.3 |
Exercise price, maximum | $ 29.5 |
Number of options outstanding | shares | 115,000 |
Awards outstanding, weighted average remaining contractual life (years) | 8 months 1 day |
Awards outstanding, weighted average exercise price per share | $ 26.7 |
Number of options exercisable | shares | 115,000 |
Awards exercisable, weighted average remaining contractual life (years) | 8 months 1 day |
Awards exercisable, weighted average exercise price | $ 26.7 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 1,025 | $ 1,502 |
Cost of revenues [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 95 | 315 |
Research and development expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 89 | 69 |
Marketing and selling expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 298 | 201 |
General and administrative expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 543 | $ 917 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES (Kibbutz) (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Aug. 06, 2013 ILS (₪) m² | Aug. 06, 2013 USD ($) m² | Dec. 31, 2023 ILS (₪) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2012 ILS (₪) | Dec. 31, 2012 USD ($) | Dec. 31, 2011 m² | |
Kibbutz [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of ownership | 30.20% | 30.20% | ||||||||
Number of shares which entity has shared voting power | shares | 14,029,494 | 14,029,494 | ||||||||
Outstanding percentage of ordinary shares | 40.60% | 40.60% | ||||||||
Proceeds from sale-leaseback transaction | ₪ 43,700 | $ 10,900 | ||||||||
Lease term | 10 years | 10 years | ||||||||
Annual rent | ₪ 8,100 | $ 2,600 | ₪ 4,100 | $ 1,200 | ||||||
Kibbutz [Member] | Manpower Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Additional contract term | 3 years | 3 years | ||||||||
Payment For Manpower Service Fees | $ 1,553 | 1,768 | $ 1,803 | |||||||
Kibbutz [Member] | Kibbutz Services [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notice period to cancel agreement upon a material breach | 30 days | 30 days | ||||||||
Notice period to cancel agreement upon liquidation of the other party | 45 days | 45 days | ||||||||
Payments for Other Fees | $ 810 | 1,334 | $ 1,468 | |||||||
Kibbutz [Member] | Land Use Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contract term | 20 years | 20 years | ||||||||
Related Party Transaction, Amounts of Transaction | ₪ 18,600 | $ 5,980 | ||||||||
Area of property | m² | 12,800 | 12,800 | 30,744 | |||||||
Unbuilt area of property | m² | 60,870 | |||||||||
Fee for land use agreement | ₪ 70 | $ 22 | ||||||||
Kibbutz [Member] | Land Use Agreement [Member] | Warehouse Site [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest rate | 1.40% | 1.40% | ||||||||
Kibbutz [Member] | Construction of Access Road [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related Party Transaction, Amounts of Transaction | ₪ 3,300 | $ 910 | ||||||||
Expenses incurred | 300 | 83 | ||||||||
Kibbutz [Member] | Paving Commitment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related Party Transaction, Amounts of Transaction | ₪ 200 | $ 55 | ||||||||
Tene [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of shares which entity has shared voting power | shares | 14,029,494 | 14,029,494 | ||||||||
Outstanding percentage of ordinary shares | 40.60% | 40.60% | ||||||||
Shareholders loan [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of assumption of shareholders loan | 55% | |||||||||
Sdot-yam And Bar-lev [Member] | Land Purchase Agreement and Leaseback [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 7,857 | $ 8,162 | $ 7,665 |
TRANSACTIONS WITH RELATED PAR_4
TRANSACTIONS WITH RELATED PARTIES (Schedule of Transactions with Related Parties) (Details) - Kibbutz [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cost of revenues [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | $ 8,232 | $ 8,870 | $ 8,157 |
Research and development [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | 486 | 574 | 547 |
Selling and marketing [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | 621 | 730 | 723 |
General and administrative [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | 848 | 951 | 873 |
Finance expenses, net [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts of transaction | $ 0 | $ (392) | $ 106 |
TRANSACTIONS WITH RELATED PAR_5
TRANSACTIONS WITH RELATED PARTIES (Schedule of Balances with Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Related party balances | $ 257 | $ 283 | |
Long-term loan from related parties | 479 | 483 | |
Related party balances [Member] | |||
Related Party Transaction [Line Items] | |||
Related party balances | [1] | 257 | 283 |
Other loans [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term loan from related parties | [2] | $ 479 | $ 483 |
[1]Related to the above mentioned agreements with related party.[2]During 2021, the Company assumed 55% of the shareholders loan in Lioli. |
LONG-TERM BANK LOAN (Narrative
LONG-TERM BANK LOAN (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Long-term debt, face amount | $ 2,070 |
Long-term debt, interest rate terms | he loan carries interest rate of 8.8% (linked to MCLR). |
MAJOR CUSTOMER AND GEOGRAPHIC_3
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
MAJOR CUSTOMER AND GEOGRAPHIC_4
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION (Schedule of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 565,231 | $ 690,806 | $ 643,892 |
USA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 271,647 | 342,293 | 305,353 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 75,462 | 93,377 | 84,467 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,285 | 4,481 | 4,702 |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 106,223 | 116,284 | 118,714 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 25,959 | 34,607 | 30,390 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 59,908 | 63,320 | 60,836 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 22,747 | $ 36,444 | $ 39,430 |
MAJOR CUSTOMER AND GEOGRAPHIC_5
MAJOR CUSTOMER AND GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 249,893 | $ 322,207 |
USA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 100,886 | 149,173 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,685 | 3,292 |
Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 7,885 | 10,337 |
Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 22,630 | 24,353 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 13,794 | 8,488 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 100,013 | $ 126,564 |
SELECTED SUPPLEMENTARY STATEM_3
SELECTED SUPPLEMENTARY STATEMENTS OF INCOME DATA (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance expenses: | |||
Interest in respect credit cards and bank fees | $ 4,957 | $ 5,380 | $ 4,702 |
Interest in respect of loans | 377 | 346 | 2,035 |
Amortization/accretion of premium/discount on marketable securities | 0 | 237 | 200 |
Realized gain/loss from marketable securities, net | 63 | 0 | 134 |
Changes in derivatives fair value | 0 | 1,509 | 0 |
Foreign exchange transactions losses | 154 | 3,818 | 6,023 |
Finance expenses | 5,551 | 11,290 | 13,094 |
Finance income: | |||
Interest in respect of cash and cash equivalent and short-term bank deposits | 1,473 | 20 | 147 |
Changes in derivatives fair value | 680 | 0 | 4,950 |
Interest income from marketable securities | 107 | 287 | 407 |
Foreign exchange transactions gains | 4,360 | 14,062 | 0 |
Finance income | 6,620 | 14,369 | 5,504 |
Finance expenses (income), net | (1,069) | (3,079) | 7,590 |
Numerator: | |||
Net income (loss) attributable to controlling interest, as reported | (107,656) | (57,054) | 18,966 |
Adjustment to redemption value of non-controlling interest | (532) | (198) | 1,399 |
Numerator for basic and diluted net income (loss) per share | $ (108,188) | $ 57,252 | $ 17,567 |
Denominator: | |||
Denominator for basic income (loss) per share | 34,519 | 34,488 | 34,462 |
Effect of dilutive stock based awards | 0 | 0 | 108 |
Denominator for diluted income (loss) per share | 34,519 | 34,488 | 34,570 |
Earnings per share: | |||
Basic earnings (loss) per share | $ (3.13) | $ (1.66) | $ 0.51 |
Diluted earnings (loss) per share | $ (3.13) | $ (1.66) | $ 0.51 |