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TOWER SEMICONDUCTOR LTD
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FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

For the month of March 2021 No.1

TOWER SEMICONDUCTOR LTD.

(Translation of registrant's name into English)

Ramat Gavriel Industrial Park

P.O. Box 619, Migdal Haemek, Israel 2310502

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒  Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

On March 3, 2021, the Registrant announced its financial results for the year ended December 31, 2020. Attached hereto is the following exhibit.

 

Exhibit 99.1

Registrant’s consolidated financial statements as of December 31, 2020 and the report thereon dated March 3, 2021 of Brightman Almagor Zohar & Co.

 

Exhibit 99.2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Exhibit 99.3

Consent of Independent Registered Accounting Firm

This Form 6-K, including all exhibits hereto, is hereby incorporated by reference into all effective registration statements filed by us under the Securities Act of 1933.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TOWER SEMICONDUCTOR LTD.

 

Date: March 3, 2021

By:

/s/ Nati Somekh

Name:

Nati Somekh

Title:

Corporate Secretary

TOWER SEMICONDUCTOR LTD
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us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0000928876 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0000928876 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0000928876 us-gaap:CommonStockMember 2020-01-01 2020-12-31 0000928876 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-12-31 0000928876 tsem:CapitalNotesMember 2019-01-01 2019-12-31 0000928876 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-12-31 0000928876 us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-01-01 2019-12-31 0000928876 us-gaap:DeferredCompensationShareBasedPaymentsMember 2020-01-01 2020-12-31 0000928876 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-12-31 0000928876 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-12-31 0000928876 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-12-31 0000928876 tsem:TacomaMember 2020-01-01 2020-12-31 0000928876 srt:ParentCompanyMember 2020-12-31 0000928876 tsem:TowerUsHoldingsMember us-gaap:StateAndLocalJurisdictionMember 2020-12-31 0000928876 us-gaap:ForeignCountryMember 2020-12-31 0000928876 2020-03-27 0000928876 2020-03-02 2020-03-27

Exhibit 99.1

TOWER SEMICONDUCTOR LTD.

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2020

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

F-2

BALANCE SHEETS

F-4

STATEMENTS OF OPERATIONS

F-5

STATEMENTS OF COMPREHENSIVE INCOME

F-6

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

F-7

STATEMENTS OF CASH FLOWS

F-8 - F-9

NOTES TO FINANCIAL STATEMENTS

F-10 - F-50

image provided by client 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Tower Semiconductor Ltd.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Tower Semiconductor Ltd. and subsidiaries (the "Company") as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, shareholders' equity and cash flows, for each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

image provided by client 

F - 2

image provided by client 

Income Taxes — Income Tax Provision — Refer to Note 19 to the financial statements

Critical Audit Matter Description

The Company's provision for income taxes is affected by income taxes in a multinational tax environment. The income tax provision is an estimate determined based on current enacted tax laws and tax rates at each of its geographic locations with the use of acceptable allocation methodologies based upon the Company’s organizational structure, the Company’s operations and business mode of work, and result in applicable local taxable income attributable to those locations. For the year - ended December 31, 2020, the consolidated provision for income taxes was $5.4 million comprised of amounts related to Israel, Japan and U.S. operations, as detailed in Note 19.

We identified management’s determination of the taxable income and its related income tax provision as a critical audit matter because of the significant judgements and estimates management makes related to the charges between the sites located in different tax jurisdictions, the consideration of different tax status in each jurisdiction. This required a high degree of auditor judgement and an increased extent of effort, including the need to involve our income tax specialists, when performing audit procedures to evaluate the reasonableness of management’s estimate of the income tax provision.

How the Critical Audit Matter was addressed in the Audit

Our audit procedures related to the determination of the taxable income allocation and income tax provision included the following, among others:

•

We obtained the taxable income allocation used in calculating the income tax provision and tested that the taxable income allocation between Israel and corporate operations and the other subsidiaries is appropriate based on the specified services and margins determined in the Company's transfer pricing studies

•

We tested the effectiveness of controls over the Company’s process to allocate its taxable income between the different subsidiaries based on the Company's transfer pricing studies.

•

We read and evaluated management’s documentation, including information obtained by management from outside tax specialists that detailed the basis of the uncertain tax positions.

•

With the assistance of our income tax specialists we evaluated:

•

The appropriateness of the ranges of outcomes utilized and the pricing conclusions reached within the transfer pricing studies conducted by the Company's outside tax specialists.

•

The transfer pricing methodology utilized by management with alternative methodologies and industry benchmarks.

•

The relevant facts by reading the Company’s correspondence with the relevant tax authorities and any third-party advice obtained by the Company.

•

The Company’s measurement of uncertain tax positions related to transfer pricing based on our knowledge of international and local income tax laws, as well as historical settlement activity from income tax authorities

image provided by client 

Brightman Almagor Zohar & Co.

Certified Public Accountants

A Firm in The Deloitte Global Network

Tel Aviv, Israel

March 3, 2021

We have served as the Company's auditor since 1993.

F - 3

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars and shares in thousands)

As of

December 31,

 

 

As of

December 31,

2020

 

 

2019

 

A S S E T S

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

211,683

 

 

$

355,561

 

Short-term interest-bearing deposits

 

 

310,230

 

 

 

215,609

 

Marketable securities (*)

 

 

188,967

 

 

 

176,070

 

Trade accounts receivables

 

 

162,100

 

 

 

126,966

 

Inventories

 

 

199,126

 

 

 

192,256

 

Other current assets

 

 

30,810

 

 

 

22,019

 

Total current assets

 

 

1,102,916

 

 

 

1,088,481

 

 

 

 

 

 

 

 

 

LONG-TERM INVESTMENTS

 

 

40,699

 

 

 

40,085

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

839,171

 

 

 

681,939

 

 

 

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

 

10,962

 

 

 

10,281

 

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

 

DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET

 

 

93,401

 

 

 

105,047

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

2,094,149

 

 

$

1,932,833

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

106,513

 

 

$

65,932

 

Trade accounts payables

 

 

96,940

 

 

 

119,199

 

Deferred revenue and customers' advances

 

 

10,027

 

 

 

10,322

 

Employee related liabilities

 

 

51,527

 

 

 

50,302

 

Other current liabilities

 

 

7,905

 

 

 

7,301

 

Total current liabilities

 

 

272,912

 

 

 

253,056

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT

 

 

283,765

 

 

 

245,821

 

 

 

 

 

 

 

 

 

 

LONG-TERM CUSTOMERS' ADVANCES

 

 

25,451

 

 

 

28,196

 

 

 

 

 

 

 

 

 

 

EMPLOYEE RELATED LIABILITIES

 

 

15,833

 

 

 

13,285

 

 

 

 

 

 

 

 

 

 

DEFERRED TAX AND OTHER LONG-TERM LIABILITIES

 

 

41,286

 

 

 

45,752

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

639,247

 

 

 

586,110

 

 

 

 

 

 

 

 

 

Ordinary shares of NIS 15 par value:

 

 

430,996

 

 

 

426,111

 

150,000 authorized as of December 31, 2020 and 2019

 

 

 

 

 

 

 

108,010 and 107,923 issued and outstanding, respectively, as of December 31, 2020

 

 

 

 

 

 

 

106,895 and 106,808 issued and outstanding, respectively, as of December 31, 2019

 

 

 

 

 

 

 

Additional paid-in capital

 

 

1,393,095

 

 

 

1,395,376

 

Cumulative stock based compensation

 

 

124,762

 

 

 

107,774

 

Accumulated other comprehensive loss

 

 

(16,509

)

 

 

(18,244

)

Accumulated deficit

 

 

(465,460

)

 

 

(547,398

)

 

 

 

1,466,884

 

 

 

1,363,619

 

Treasury stock, at cost - 87 shares

 

 

(9,072

)

 

 

(9,072

)

THE COMPANY'S SHAREHOLDERS' EQUITY

 

 

1,457,812

 

 

 

1,354,547

 

Non-controlling interest

 

 

(2,910

)

 

 

(7,824

)

TOTAL SHAREHOLDERS' EQUITY

 

 

1,454,902

 

 

 

1,346,723

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

2,094,149

 

 

$

1,932,833

 

(*) Marketable securities are available-for-sale securities and included amortized cost of $187,719 and $173,817 as of December 31, 2020 and 2019, respectively. The balance as of December 31, 2020 included an allowance for credit losses of $57.

See notes to consolidated financial statements.

F - 4

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars and shares in thousands, except per share data)

Year ended

December 31,

2020

2019

2018

 

REVENUES

$

1,265,684

$

1,234,003

$

1,304,034

 

COST OF REVENUES

1,032,366

1,004,332

1,011,087

 

GROSS PROFIT

233,318

229,671

292,947

 

OPERATING COSTS AND EXPENSES:

 

Research and development

78,320

75,579

73,053

Marketing, general and administrative

63,965

67,376

64,951

 

142,285

142,955

138,004

 

OPERATING PROFIT

91,033

86,716

154,943

 

FINANCING INCOME (EXPENSE), NET

2,870

12

(13,184

)

 

OTHER INCOME (EXPENSE), NET

(5,215

)

4,293

(2,442

)

 

PROFIT BEFORE INCOME TAX

88,688

91,021

139,317

 

INCOME TAX EXPENSE, NET

(5,399

)

(2,948

)

(5,938

)

 

NET PROFIT

83,289

88,073

133,379

 

Net loss (income) attributable to non-controlling interest

(987

)

1,975

2,200

 

NET PROFIT ATTRIBUTABLE TO THE COMPANY

$

82,302

$

90,048

$

135,579

 

BASIC EARNINGS PER ORDINARY SHARE:

 

Earnings per share

$

0.77

$

0.85

$

1.35

 

Weighted average number of ordinary shares outstanding

107,254

106,256

100,399

 

DILUTED EARNINGS PER ORDINARY SHARE:

 

Earnings per share

$

0.76

$

0.84

$

1.32

 

Net profit used for diluted earnings per share

$

82,302

$

90,048

$

135,579

 

Weighted average number of ordinary shares outstanding

   used for diluted earnings per share

108,480

107,438

102,517

See notes to consolidated financial statements.

F - 5

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

Year ended

December 31,

2020

2019

2018

 

Net profit

$

83,289

$

88,073

$

133,379

 

Other comprehensive income, net of tax:

 

Foreign currency translation adjustment

7,830

3,478

3,599

 

Change in employees plan assets and benefit obligations, net of taxes

(394

)

(1,118

)

269

 

Unrealized gain (loss) on derivatives

(1,774

)

3,696

(2,704

)

 

Comprehensive income

88,951

94,129

134,543

 

Comprehensive loss (income) attributable to non-controlling interest

(4,914

)

1,063

407

 

Comprehensive income attributable to the Company

$

84,037

$

95,192

$

134,950

See notes to consolidated financial statements.

F - 6

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

(dollars and share data in thousands)

 

 

THE COMPANY'S SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

Ordinary

shares

issued

 

 

Ordinary

shares

amount

 

 

Additional

paid-in

capital

 

 

Capital

notes

 

 

Unearned compensation

 

 

Accumulated other comprehensive income (loss)

 

 

Foreign currency translation adjustment

 

 

Accumulated deficit

 

 

Treasury stock

 

 

Comprehensive income

 

 

Non

controlling

interest

 

 

Total

BALANCE AS OF JANUARY 1, 2018

 

 

98,544

 

 

$

391,727

 

 

$

1,347,866

 

 

$

20,758

 

 

$

80,565

 

 

$

1,763

 

 

$

(24,522

)

 

$

(773,025

)

 

$

(9,072

)

 

 

 

 

 

$

(6,354

)

 

$

1,029,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of notes into share capital

 

 

5,790

 

 

 

23,722

 

 

 

34,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,586

 

Exercise of options and RSUs

 

 

732

 

 

 

3,043

 

 

 

(2,334

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

709

 

Capital notes converted into share capital

 

 

 

 

 

 

 

 

 

--

 

Employee stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,661

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

135,579

 

 

 

 

 

 

$

135,579

 

 

 

(2,200

)

 

 

133,379

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,806

 

 

 

 

 

 

 

 

 

 

 

1,806

 

 

 

1,793

 

 

 

3,599

 

Change in employees plan assets and benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

269

 

 

 

 

 

 

 

269

 

Unrealized loss on derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,704

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,704

)

 

 

 

 

 

 

(2,704

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

134,950

 

 

 

 

 

 

 

 

 

BALANCE AS OF DECEMBER 31, 2018

 

 

105,066

 

 

$

418,492

 

 

$

1,380,396

 

 

$

20,758

 

 

$

93,226

 

 

$

(672

)

 

$

(22,716

)

 

$

(637,446

)

 

$

(9,072

)

 

 

 

 

 

$

(6,761

)

 

$

1,236,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of options and RSUs

 

 

648

 

 

 

2,727

 

 

 

(886

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,841

 

Capital notes converted into share capital

 

 

1,181

 

 

 

4,892

 

 

 

15,866

 

 

 

(20,758

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--

 

Employee stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,548

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90,048

 

 

 

 

 

 

$

90,048

 

 

 

(1,975

)

 

 

88,073

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,566

 

 

 

 

 

 

 

 

 

 

 

2,566

 

 

 

912

 

 

 

3,478

 

Change in employees plan assets and benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,118

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,118

)

 

 

 

 

 

 

(1,118

)

Unrealized gain on derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,696

 

 

 

 

 

 

 

3,696

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

95,192

 

 

 

 

 

 

 

 

 

BALANCE AS OF DECEMBER 31, 2019

 

 

106,895

 

 

$

426,111

 

 

$

1,395,376

 

 

$

--

 

 

$

107,774

 

 

$

1,906

 

 

$

(20,150

)

 

$

(547,398

)

 

$

(9,072

)

 

 

 

 

 

$

(7,824

)

 

$

1,346,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of options and RSUs

 

 

1,115

 

 

 

4,885

 

 

 

(2,281

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,604

 

Employee stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,988

 

Cumulative effect upon adoption of ASC 326 - see note 2X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(364

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(364

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82,302

 

 

 

 

 

 

$

82,302

 

 

 

987

 

 

 

83,289

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,903

 

 

 

 

 

 

 

 

 

 

 

3,903

 

 

 

3,927

 

 

 

7,830

 

Change in employees plan assets and benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(394

)

 

 

 

 

 

 

(394

)

Unrealized loss on derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,774

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,774

)

 

 

 

 

 

 

(1,774

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

84,037

 

 

 

 

 

 

 

 

 

BALANCE AS OF DECEMBER 31, 2020

 

 

108,010

 

 

$

430,996

 

 

$

1,393,095

 

 

$

--

 

 

$

124,762

 

 

$

(262

)

 

$

(16,247

)

 

$

(465,460

)

 

$

(9,072

)

 

 

 

 

 

$

(2,910

)

 

$

1,454,902

 

 

OUTSTANDING SHARES, NET OF TREASURY STOCK AS OF DECEMBER 31, 2020

 

 

107,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements.

F - 7

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

<

 

 

Year ended

 

 

 

December 31,

 

CASH FLOWS - OPERATING ACTIVITIES

 

2020

 

 

2019

 

 

2018

 

 

Net profit

 

$

83,289

 

 

$

88,073

 

 

$

133,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net profit for the period to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Income and expense items not involving cash flows: