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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 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:

			December 31, 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			$	35,789					$	—					$	—					$	654,699					$	—					$	—
Certificate of deposit			—						6,000						—						—						—						—
Commercial paper			—						26,997						—						—						—						—
Corporate notes and bonds			—						760						—						—						—						—
Marketable securities:
Certificate of deposit			—						9,999						—						—						—						—
Commercial paper			—						188,853						—						—						—						—
Corporate notes and bonds			—						197,612						—						—						—						—
U.S. Government agencies			—						485,873						—						—						—						—
U.S. Treasuries			—						14,998						—						—						—						—
Other assets
Investments in debt securities			—						—						41,042						—						—						—
Total assets measured at fair value			$	35,789					$	931,092					$	41,042					$	654,699					$	—					$	—
Liabilities:
Accrued liabilities
Contingent consideration			$	—					$	—					$	3,710					$	—					$	—					$	—
Warranty obligations
Current			—						—						14,612						—						—						8,267
Non-current			—						—						36,395						—						—						20,469
Total warranty obligations measured at fair value			—						—						51,007						—						—						28,736
Total liabilities measured at fair value			$	—					$	—					$	54,717					$	—					$	—					$	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:

									Year Ended December 31,
															2021
															(In thousands)
Balance at beginning of period															$	—
Investment															58,000
Fair value adjustments included in other (expense) income, net															9,611
Settlement															(26,569)
Balance at end of period															$	41,042

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 year ended December 31, 2021:

									Year Ended December 31,
															2021
															(In thousands)
Balance at beginning of period															$	—
Addition															3,500
Fair value adjustments included in other income (expense), net															210
Balance at end of period															$	3,710

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

									Years Ended December 31,
															2021						2020
															(In thousands)
Balance at beginning of period															$	28,736					$	19,806
Accruals for warranties issued during period															18,098						7,021
Changes in estimates															10,844						5,039
Settlements															(11,248)						(7,781)
Increase due to accretion expense															4,654						3,255
Other															(77)						1,396
Balance at end of period															$	51,007					$	28,736

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

As of December 31, 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

December 31, 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%

X

- Definition

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 the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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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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