NOTE 27: SEGMENT, GEOGRAPHIC AND PRODUCT INFORMATION

a.	Segment Information:

Following the discontinuation of the Critical Power segment in June 2022, the Company operated in four different operating segments: Solar, Energy Storage, e-Mobility and Automation Machines. In October 2023, the Company decided to discontinue its LCV activity.

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

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

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

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

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

The Solar segment includes the design, development, manufacturing, and sales of an intelligent inverter solution designed to maximize power generation at the individual PV module level and batteries for PV applications. The Solar segment solution consists mainly of the Company’s power optimizers, inverters, batteries and cloud‑based monitoring platform.

The Energy Storage segment includes the design, development, manufacturing, and sales of high-energy, high-power, lithium-ion cells and racks and containerized battery systems for C&I and Utility markets. The Energy Storage segment provides purpose-built components and solutions, hardware and software, as well as pre and post sales engineering support to design, build, and manage battery and system solutions according to the customer’s use cases and mission profiles.

The “All other” category includes the e-Mobility products, automated machines and UPS products (in prior periods).

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

	Year ended December 31, 2023
	Solar		Energy Storage			All other
Revenues	$	2,815,539	$	83,717		$	76,438
Cost of revenues		1,994,578		112,518			75,469
Gross profit (loss)		820,961		(28,801	)		969
Research and development		226,776		17,370			9,403
Sales and marketing		126,207		3,539			2,654
General and administrative		103,461		10,409			3,286
Segments profit (loss)	$	364,517	$	(60,119	)	$	(14,374	)

	Year ended December 31, 2022
	Solar		Energy Storage			All other
Revenues	$	2,921,175	$	76,325		$	112,165
Cost of revenues		2,050,147		63,752			118,171
Gross profit (loss)		871,028		12,573			(6,006	)
Research and development		196,381		15,108			13,908
Sales and marketing		118,154		4,095			5,592
General and administrative		69,631		7,233			5,768
Segments profit (loss)	$	486,862	$	(13,863	)	$	(31,274	)

	Year ended December 31, 2021
	Solar		Energy Storage		All other
Revenues	$	1,787,280	$	83,430	$	92,737
Cost of revenues		1,136,896		61,099		108,483
Gross profit (loss)		650,384		22,331		(15,746	)
Research and development		143,173		10,289		20,217
Sales and marketing		85,309		3,698		6,232
General and administrative		53,156		5,841		7,695
Segments profit (loss)	$	368,746	$	2,503	$	(49,890	)

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

	Year ended December 31,
	2023		2022		2021
Solar segment revenues	$	2,815,539	$	2,921,175	$	1,787,280
Energy Storage segment revenues		83,717		76,325		83,430
All other segment revenues		76,438		112,165		92,737
Revenues from financing component		834		614		418
Consolidated revenues	$	2,976,528	$	3,110,279	$	1,963,865

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

	Year ended December 31,
	2023			2022			2021
Solar segment profit	$	364,517		$	486,862		$	368,746
Energy Storage segment profit (loss)		(60,119	)		(13,863	)		2,503
All other segment loss		(14,374	)		(31,274	)		(49,890	)
Segments operating profit		290,024			441,725			321,359
Amounts not allocated to segments:
Stock based compensation expenses		(149,945	)		(145,539	)		(102,593	)
Amortization and depreciation of acquired assets		(7,969	)		(9,478	)		(10,812	)
Impairment of goodwill and long-lived assets		(30,790	)		(119,141	)		-
Restructuring and other exit activities		(60,189	)		(4,314	)		-
Other unallocated income (expenses), net		(926	)		2,867			(815	)
Consolidated operating income	$	40,205		$	166,120		$	207,139

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

	Year ended December 31,
	2023		2022		2021
United States	$	759,611	$	1,133,798	$	786,019
Europe^(*)		661,542		528,197		297,684
Germany		692,047		449,160		191,066
Netherlands		326,314		382,226		222,103
Italy		223,943		330,565		181,644
Rest of the world		313,071		286,333		285,349
Total revenues	$	2,976,528	$	3,110,279	$	1,963,865

(*) Except for Germany, Netherlands and Italy

c.	Revenues by type:

	Year ended December 31,
	2023		2022		2021
Inverters	$	1,374,026	$	1,137,142	$	828,101
Optimizers		902,411		1,135,040		828,542
Batteries for PV applications		378,275		429,119		19,531
e-Mobility components and telematics		68,425		94,446		68,946
Communication		32,945		72,812		24,111
Others		220,446		241,720		194,634
Total revenues	$	2,976,528	$	3,110,279	$	1,963,865

d.	Long-lived assets by geographic location:

	As of December 31,
	2023		2022
Israel	$	364,438	$	333,740
Korea		199,422		201,731
United States		47,083		12,030
China		38,037		34,230
Europe		23,478		21,282
Other		6,288		3,710
Total long-lived assets^(*)	$	678,746	$	606,723

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