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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis using the above input categories:

			September 30, 2021																		December 31, 2020
			(In thousands)
			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Assets:
Cash and cash equivalents:
Money market funds			$	411,839					$	—					$	—					$	654,699					$	—					$	—
Commercial paper			—						113,993						—						—						—						—
Corporate notes and bonds			—						8,245						—						—						—						—
U.S. Treasuries			—						324,987						—						—						—						—
Marketable securities:
Commercial paper			—						34,964						—						—						—						—
Corporate notes and bonds			—						171,167						—						—						—						—
U.S. Government agencies			—						287,449						—						—						—						—
U.S. Treasuries			—						14,997						—						—						—						—
Other assets
Investments in debt securities			—						—						61,153						—						—						—
Total assets measured at fair value			$	411,839					$	955,802					$	61,153					$	654,699					$	—					$	—
Liabilities:
Accrued liabilities
Contingent consideration			$	—					$	—					$	3,653					$	—					$	—					$	—
Warranty obligations
Current			—						—						12,395						—						—						8,267
Non-current			—						—						32,905						—						—						20,469
Total warranty obligations measured at fair value			—						—						45,300						—						—						28,736
Total liabilities measured at fair value			$	—					$	—					$	48,953					$	—					$	—					$	28,736

Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Assets Designated as Level 3

The changes in the balance in investments in debt securities during the period are as follows:

			Three Months Ended September 30,						Nine Months Ended September 30,
			2021												2021
			(In thousands)
Balance at beginning of period			$	47,369											$	—
Investment			13,000												58,000
Fair value adjustments included in other (expense) income, net			784												3,153
Balance at end of period			$	61,153											$	61,153

Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The following table reflects the activity for the Company’s contingent consideration liabilities measured at fair value using Level 3 inputs for the three and nine months ended September 30, 2021:

			Three Months Ended September 30,						Nine Months Ended September 30,
			2021												2021
			(In thousands)
Balance at beginning of period			$	3,596											$	—
Addition			—												3,500
Fair value adjustments included in other income (expense), net			57												153
Balance at end of period			$	3,653											$	3,653

The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2021						2020						2021						2020
			(In thousands)
Balance at beginning of period			$	38,037					$	21,132					$	28,736					$	19,806
Accruals for warranties issued during period			4,780						1,939						11,993						4,229
Changes in estimates			1,980						1,279						7,318						2,877
Settlements			(2,838)						(1,940)						(6,663)						(5,444)
Increase due to accretion expense			1,260						832						3,307						2,410
Other			2,081						2,506						609						1,870
Balance at end of period			$	45,300					$	25,748					$	45,300					$	25,748

Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3

As of September 30, 2021 and December 31, 2020, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 are as follows:

Percent Used (Weighted Average)

Item Measured at Fair Value

Valuation Technique

Description of Significant Unobservable Input

September 30, 2021

December 31, 2020

Warranty obligations for microinverters sold since January 1, 2014

Discounted cash flows

Profit element and risk premium

15%

15%

Credit-adjusted risk-free rate

12%

13%

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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