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0.51 0.49

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A.Basis of presentation The Company’s consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“US GAAP”). B.Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, affect the disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. C.Principles of Consolidation The Company’s consolidated financial statements include the financial statements of Tower and its subsidiaries. The Company’s consolidated financial statements are presented after elimination of inter-company transactions and balances. D.Cash and Cash Equivalents Cash and cash equivalents consist of cash, bank deposits, money market funds and short-term investments with insignificant interest rate risk and original maturities of three months or less. E.Short-Term Interest-Bearing Deposits Short-term deposits include bank deposits with original maturities greater than three months and with remaining maturities of less than one year. Such deposits are presented at cost, including accrued interest, which approximates their fair value. F.Marketable securities The Company accounts for its investments in investment grade debt securities in accordance with ASC 320 "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities are classified as "available-for-sale", and are measured at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (“OCI”). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of income. Following the adoption of ASC 326 in January 2020, current expected credit losses on the Company’s marketable grade debt securities are recorded, if expected, through an allowance for current expected credit losses and recognized in “other income (expense), net” on the consolidated statements of operations. The amount of allowance for current expected credit losses is limited to the amount that the fair value is less than the amortized cost basis. Any remaining unrealized losses are included in accumulated other comprehensive loss in shareholders’ equity. See also X below. <div> <div style="width:100%; clear:both;"> F - 11 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) F.Marketable securities (Cont.) If the Company intends to sell the debt security (that is, it has decided to sell the security), or more likely than not will be required to sell the security before recovery of its amortized cost basis, any allowance for current expected credit losses is written off and the amortized cost basis shall be written down to the debt security’s fair value at the reporting date with any incremental impairment reported in earnings. The Company concluded that the current expected credit losses on its available for sale investment portfolio were immaterial. G.Trade Accounts Receivables - Allowance for Expected Credit Loss The Company maintains an allowance based on specific analysis of each customer account receivable’s aging, assessment of its related risk and ability of the customer to make the required payment. In addition, following the adoption of ASC 326 in January 2020 (see X below), an allowance is maintained for estimated forward-looking losses resulting from possible inability of customers to make required payments (current expected losses). The amount of the allowance is determined principally on the basis of past collection experience and known financial factors regarding specific customers. Trade accounts receivables are written off against the allowance when it becomes evident that collection will not occur. Credit is extended to customers satisfying pre-defined credit criteria. As of December 31, 2020, the Company’s total allowance for expected credit loss was $1,065, of which $385 has been recorded following the adoption of ASC 326 effective from January 1, 2020, with $358 recognized as an adoption adjustment to retained earnings. As of December 31, 2019, the allowance was $10,925, see Note 14F for more details. H.Trade Accounts Receivables - Factoring From time to time, the Company uses non-recourse factoring arrangements, to sell accounts receivable to third-party financial institutions. The sale of the receivables in these arrangements are accounted for as a true sale, under ASC 860. Total accounts receivables factoring was $0 and $12,989 as of December 31, 2020 and 2019 respectively. I.Inventories Inventories are stated at the lower of aggregate cost or net realizable value. If inventory costs exceed expected net realizable value, the Company records reserves for the difference between the cost and the expected net realizable value. Cost of raw materials is determined mainly on the basis of the weighted average moving price per unit. Work in progress is measured at production costs including acquisition costs, processing costs and other costs incurred in bringing the inventories to their present location in the production line and condition. <div> <div style="width:100%; clear:both;"> F - 12 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) J.Investments in Privately-Held Companies Long-term investments include equity investments in privately-held companies without readily determinable fair values. In accordance with ASC 321 - “Investments - Equity Securities”, the Company may elect between fair value and measurement alternative of cost, less impairments, and further adjust up or down, based on observable price changes in orderly transactions for identical or similar investments of the same issuer (“Measurement Alternative”). The Company elected to use the measurement alternative for each of its investments. Any adjustments resulting from impairments and/or observable price changes are recorded under “other income (expense), net” in the consolidated statements of operations. K.Property and Equipment The Company accounts for property and equipment in accordance with Accounting Standards Codification ASC 360 “Accounting for the Property, Plant and Equipment”. Property and equipment are presented at cost, including capitalizable costs. Capitalizable costs include only costs that are identifiable with, and related to, the property and equipment, and are incurred prior to their initial operation. Identifiable incremental direct costs include costs associated with constructing, establishing and installing property and equipment. Maintenance and repairs are charged to expenses as incurred. Property and equipment are presented net of investment grants received and less accumulated depreciation. Depreciation is calculated based on the straight-line method over the Company’s estimated useful lives of the assets, as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:80%; vertical-align:bottom; "> Buildings and building improvements, including facility infrastructure </td> <td style="width:20%; vertical-align:bottom; "> 10-25 years </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Machinery and equipment, software and hardware </td> <td style="width:20%; vertical-align:bottom; "> 3-15 years </td></tr></tbody></table></div> Impairment charges, if needed, are determined based on the policy outlined in M below. Property and equipment also include assets under capital leases, which are depreciated according to their applicable useful life. L.Intangible Assets and Goodwill The Company accounts for intangible assets and goodwill in accordance with ASC 350 “Intangibles-Goodwill and Other”. Intangible assets include the values assigned to the intangible assets as part of the purchase price allocation made at the time of acquisition. Intangible assets are amortized over the expected estimated economic life of the intangible assets commonly used in the industry. Goodwill is not amortized and subject to impairment testing. Impairment charges on intangibles or goodwill, if needed, are determined based on the policy outlined in M below. <div> <div style="width:100%; clear:both;"> F - 13 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) M.Impairment of Assets Impairment of Property, Equipment and Intangible Assets The Company reviews long-lived assets and intangible assets on a periodic basis, as well as when such review is required based upon relevant circumstances, to determine whether events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, considering the undiscounted cash flows expected from them. If applicable, the Company recognizes an impairment loss based upon the difference between the carrying amount and the fair value of such assets, in accordance with ASC 360-10 “Property, Plant and Equipment”. As of December 31, 2020, the Company concluded there was no impairment to its long-lived assets and intangible assets. Impairment of Goodwill The Company operates in one reporting unit. The Company performs a qualitative analysis when testing goodwill for impairment. A qualitative goodwill impairment test is performed when the fair value of a reporting unit historically has significantly exceeded the carrying value of its net assets and based on current operations is expected to continue to do so. Otherwise, the Company is required to conduct a quantitative impairment test and estimate the fair value of the reporting unit using a combination of an income approach based on discounted cash flow analysis and a market approach based on market multiples. If the fair value of a reporting unit is less than its carrying value, a goodwill impairment charge is recorded for the difference. As of December 31, 2020, the Company performed a qualitative impairment test for its reporting unit and concluded there was no impairment of goodwill, see also X below. Impairment of Investment in Privately-Held Companies The Company concluded there was no impairment to its investments in privately-held companies in 2020. N.Leases On January 1, 2019, the Company adopted the new leasing standard “Leases”(“ASC 842”), which requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability for all operating and capital leases with a term greater than twelve months and also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 using the modified retrospective transition method. The adoption of the new standard did not have any impact on the results of operations or cash flows. <div> <div style="width:100%; clear:both;"> F - 14 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) N.Leases (cont.) The determination of whether an arrangement is a lease is to be made at inception of a lease contract. ROU assets represent the Company’s 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. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Whenever leases do not provide an implicit interest rate, an incremental borrowing rate is used based on the information available at the commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. For additional information, see Notes 11D and 11E. O.Revenue Recognition The Company follows ASC 606 “Revenue from Contracts with Customers“ and recognizes revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s revenues are generated principally from sales of semiconductor wafers. The Company, to a much lesser extent, also derives revenues from design support and other technical and support services incidental to the sale of semiconductor wafers. The vast majority of the Company’s sales are achieved through the effort of its direct sales force. Wafer sales are recognized at a point in time, which is upon shipment of the Company’s products to unaffiliated customers, depending on shipping terms. Accordingly, control of the products transfers to the customer in accordance with the transaction's shipping terms. Taxes imposed by governmental authorities, such as sales taxes or value-added taxes, are excluded from net sales. The Company’s contracts typically contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. The Company provides for sales returns allowance relating to specified yield or quality commitments as a reduction of revenues, based on past experience and specific identification of events necessitating an allowance, which has been in immaterial amounts. The Company provides its customers with other services that are less significant in scope and amount and for which recognition occurs over time when customers receive the services. <div> <div style="width:100%; clear:both;"> F - 15 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) P.Research and Development Research and development costs are charged to operations as incurred. Amounts received or receivable from the government of Israel and others, such as participation in research and development programs, are offset against research and development costs. The accrual for grants receivable is determined based on the terms of the programs, provided that the criteria for entitlement have been met. Q.Income Taxes The Company accounts for income taxes using an asset and liability approach as prescribed in ASC 740-10 “Income Taxes” (“ASC 740-10”). This topic 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. Deferred taxes are measured using the enacted tax rates anticipated (under applicable law as of the balance sheet date) to apply when the deferred taxes are expected to be paid or realized. Deferred tax assets and liabilities, as well as any related valuation allowance, are classified as noncurrent items on the balance sheets. The Company evaluates the potential realization of its deferred tax assets for each jurisdiction in which the Company operates at each reporting date and establishes valuation allowances when it is more likely than not that all or a part of its deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. The Company considers all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities and deferred tax assets and projected future taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on all available evidence. ASC 740-10 prescribes a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that the Company believes is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in its income tax returns and the amount of tax benefits recognized in its financial statements, represent the Company's unrecognized income tax benefits. The Company's policy is to include interest and penalties related to unrecognized income tax benefits as a component of income tax expense. <div> <div style="width:100%; clear:both;"> F - 16 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) R.Earnings per Ordinary Share Basic earnings per share are calculated in accordance with ASC 260, “Earnings Per Share” by dividing net profit or loss attributable to ordinary equity holders of Tower (the numerator) by the weighted average number of ordinary shares outstanding during the reported period (the denominator). Diluted earnings per share are calculated, if applicable, by adjusting net profit attributable to ordinary equity holders of Tower, and the weighted average number of ordinary shares, taking into effect all potential dilutive ordinary shares. S.Comprehensive Income In accordance with ASC 220 “Comprehensive Income”, comprehensive income represents the change in shareholders’ equity during a reporting period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a reporting period except those resulting from investments by owners and distributions to owners. Other comprehensive income (“OCI”) represents gains and losses that are included in comprehensive income but excluded from net profit. T.Functional Currency and Exchange Rate Income (Loss) The currency of the primary economic environment in which Tower, TSSA and TSNP conduct their operations is the U.S. Dollar (“dollar”). Thus, the dollar is their functional and reporting currency. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with ASC 830-10 “Foreign Currency Matters”. All transaction gains and losses from the re-measurement of monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. The financial statements of TPSCo, whose functional currency is the Japanese Yen (“JPY”), have been translated into dollars. The assets and liabilities have been translated using the exchange rate in effect as of the balance sheet date. The statements of operations of TPSCo have been translated using the average exchange rate for the reported period. The resulting translation adjustments are charged or credited to OCI. U.Stock-Based Compensation The Company applies the provisions of ASC Topic 718 “Compensation - Stock Compensation”, under which employees’ share-based equity awards (mostly restricted stock units and performance unit shares) are recognized based on the grant-date fair values. The compensation costs are recognized using the graded vesting attribution method based on the vesting terms of each unit included in the award resulting in an accelerated recognition of compensation costs. <div> <div style="width:100%; clear:both;"> F - 17 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) V.Fair value Measurements of Financial Instruments ASC 820, "Fair Value Measurements and Disclosures" (“ASC 820”), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments primarily consist of cash, bank deposits, account receivables and payables, accrued liabilities, loans and leases whose carrying values approximate their current fair values because of their nature and respective maturity dates or durations. The Company had no financial assets or liabilities carried and measured on a non-recurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared such as marketable securities and investment in privately- held companies. <div> <div style="width:100%; clear:both;"> F - 18 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) W.Derivatives and hedging The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as cash flow hedges, the effective portion of the gains (losses) on the derivatives is initially reported as a component of OCI and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. Gains (losses) on derivatives are recognized in earnings, representing either hedge components excluded from the assessment of effectiveness or hedge ineffectiveness. In January 2019, the Company adopted ASU 2017-12, “Derivatives and Hedging (“Topic 815”): Targeted Improvements to Accounting for Hedge Activities”, which amends the hedge accounting recognition and presentation requirements of ASC 815. ASU 2017-12 permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test after the initial qualification, if the Company can reasonably support an expectation of high effectiveness throughout the term of the hedge. Also, for cash flow hedges and net investment hedges, if the hedge is highly effective, all changes in the fair value of the derivative hedging instrument are recorded in other comprehensive income. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations and cash flows. The consolidated financial statements for the year ended December 31, 2019 were not retrospectively adjusted. X.Recently Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04 “Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment” (“Topic 350”). The Company adopted this guidance in the beginning of 2020 with no impact on its consolidated financial statements. See also M above. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses” (“ASC 326”). This update relates to financial reporting of current expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize current expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted ASU 2016-13 on January 1, 2020 using the modified retrospective approach. The impact of this adoption on its retained earnings and 2020 financial results was not material to the Company's consolidated financial statements as current expected credit losses were not significant based on historical collection trends, the financial condition of payment partners, and external market factors. See also F and G above. In March 2020, the FASB issued ASU No. 2020-04, ”Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides temporary optional guidance to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and London Interbank Offered Rate (“LIBOR”). The guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance is effective immediately and is only available through December 31, 2022. <div> <div style="width:100%; clear:both;"> F - 19 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) Y.Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes”(“Topic 740”). This guidance removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning on January 1, 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings in the period of adoption. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements.

1065000

385000

358000

10925000

12989000

Depreciation is calculated based on the straight-line method over the Company’s estimated useful lives of the assets, as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:80%; vertical-align:bottom; "> Buildings and building improvements, including facility infrastructure </td> <td style="width:20%; vertical-align:bottom; "> 10-25 years </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Machinery and equipment, software and hardware </td> <td style="width:20%; vertical-align:bottom; "> 3-15 years </td></tr></tbody></table></div>

P10Y

P25Y

P3Y

P15Y

NOTE 3 - INVENTORIES Inventories consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Raw materials </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 60,855 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 90,605 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Work in process </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 133,144 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 91,537 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Finished goods </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,127 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 10,114 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 199,126 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 192,256 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> Work in process and finished goods are presented net of aggregate write-downs to net realizable value of $1,946 and $649 as of December 31, 2020 and 2019, respectively.

Inventories consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Raw materials </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 60,855 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 90,605 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Work in process </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 133,144 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 91,537 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Finished goods </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,127 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 10,114 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 199,126 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 192,256 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

60855000

90605000

133144000

91537000

5127000

10114000

199126000

192256000

1946000

649000

NOTE 4 - OTHER CURRENT ASSETS Other current assets consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Tax receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 5,019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,156 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Prepaid expenses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8,265 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Receivables from Hedging transactions - see Notes 10, 12A, and 12D </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 11,609 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,184 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Insurance receivables - see Note 14E </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 5,949 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Other receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,243 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,414 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 30,810 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,019 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

Other current assets consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Tax receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 5,019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,156 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Prepaid expenses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8,265 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Receivables from Hedging transactions - see Notes 10, 12A, and 12D </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 11,609 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,184 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Insurance receivables - see Note 14E </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 5,949 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Other receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,243 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,414 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 30,810 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,019 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

5019000

8156000

6990000

8265000

11609000

3184000

5949000

1243000

2414000

30810000

22019000

NOTE 5 - LONG-TERM INVESTMENTS Long-term investments consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Severance-pay funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10,472 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 11,860 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Long-term bank deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Investments in privately- held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 40,699 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 40,085 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

Long-term investments consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Severance-pay funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10,472 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 11,860 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Long-term bank deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Investments in privately- held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 40,699 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 40,085 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

10472000 11860000 12500000 12500000

17727000

15725000

40699000

40085000

NOTE 6 - PROPERTY AND EQUIPMENT, NET Composition: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Original cost: (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Land and Buildings, including facility infrastructure </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 430,258 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 363,133 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Machinery and equipment </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,998,019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,684,980 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,428,277 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,048,113 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Accumulated depreciation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Buildings, including facility infrastructure </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (255,353 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (239,241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Machinery and equipment </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,333,753 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,126,933 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (2,589,106 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (2,366,174 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 839,171 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 681,939 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Original cost includes ROU assets under capital lease in the amount of $213,683 and $86,087 as of December 31, 2020 and 2019, respectively. The depreciation expense of such assets amounted to $13,421 and $9,941 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the original cost of land, buildings, machinery and equipment was reflected net of investment grants in the aggregate amount of $285,615.

Composition: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Original cost: (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Land and Buildings, including facility infrastructure </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 430,258 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 363,133 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Machinery and equipment </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,998,019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,684,980 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,428,277 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,048,113 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Accumulated depreciation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Buildings, including facility infrastructure </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (255,353 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (239,241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Machinery and equipment </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,333,753 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,126,933 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (2,589,106 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (2,366,174 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 839,171 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 681,939 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Original cost includes ROU assets under capital lease in the amount of $213,683 and $86,087 as of December 31, 2020 and 2019, respectively. The depreciation expense of such assets amounted to $13,421 and $9,941 for the years ended December 31, 2020 and 2019, respectively.

430258000

363133000

2998019000

2684980000

3428277000

3048113000

255353000

239241000

2333753000

2126933000

2589106000

2366174000

839171000

681939000

213683000

86087000

13421000

9941000

285615000 285615000

NOTE 7 - INTANGIBLE ASSETS, NET Intangible assets consist of the following as of December 31, 2020: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:49%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Useful Life (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Accumulated Amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Technologies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4;5;9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 114,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (112,284 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,521 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Facilities lease </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 33,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (25,529 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,971 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Trade name </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,834 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,834 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Customer relationships </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,600 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,130 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 470 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Total identifiable intangible assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 158,739 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (147,777 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,962 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> Intangible assets consist of the following as of December 31, 2019: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:49%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Useful Life (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Accumulated Amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Technologies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4;5;9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 111,108 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (110,730 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 378 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Facilities lease </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 33,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (24,241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,259 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Trade name </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,702 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,702 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Customer relationships </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,600 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,956 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 644 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Total identifiable intangible assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 154,910 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (144,629 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,281 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

Intangible assets consist of the following as of December 31, 2020: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:49%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Useful Life (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Accumulated Amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Technologies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4;5;9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 114,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (112,284 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,521 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Facilities lease </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 33,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (25,529 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,971 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Trade name </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,834 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,834 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Customer relationships </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,600 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (2,130 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 470 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Total identifiable intangible assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 158,739 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (147,777 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,962 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> Intangible assets consist of the following as of December 31, 2019: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:49%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Useful Life (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Accumulated Amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Technologies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4;5;9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 111,108 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (110,730 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 378 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Facilities lease </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 33,500 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (24,241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,259 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Trade name </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,702 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,702 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:49%; vertical-align:bottom; "> Customer relationships </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,600 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,956 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 644 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:49%; vertical-align:bottom; "> Total identifiable intangible assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 154,910 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (144,629 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,281 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

P4Y

P5Y

P9Y

114805000

112284000

2521000

P19Y

33500000

25529000

7971000

P9Y

7834000

P15Y

2600000

2130000

470000

158739000

147777000

10962000

P4Y

P5Y

P9Y

111108000

110730000

378000

P19Y

33500000

24241000

9259000

P9Y

7702000

P15Y

2600000

1956000

644000

154910000

144629000

10281000

NOTE 8 - DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET Deferred tax and other long-term assets, net consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax asset (see Note 19) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 57,802 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Right of use - assets under operating leases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Prepaid long-term land lease, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,055 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,175 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Fair value of cross currency interest rate swap (see Note 12D) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,625 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Long-term prepaid expenses and others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,893 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,057 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 93,401 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 105,047 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

Deferred tax and other long-term assets, net consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax asset (see Note 19) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 57,802 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Right of use - assets under operating leases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Prepaid long-term land lease, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,055 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,175 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Fair value of cross currency interest rate swap (see Note 12D) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,625 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Long-term prepaid expenses and others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,893 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,057 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 93,401 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 105,047 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

57802000 66362000

18990000

3055000

3175000

10661000 12625000

2893000

5057000

93401000 105047000

NOTE 9 - OTHER CURRENT LIABILITIES Other current liabilities consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Tax payables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 4,935 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 282 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Interest payable on debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 868 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,057 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,102 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,962 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 7,905 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 7,301 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

Other current liabilities consist of the following: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Tax payables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 4,935 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 282 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Interest payable on debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 868 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,057 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,102 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,962 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 7,905 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 7,301 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

4935000

282000

868000

1057000

2102000

5962000

7905000

7301000

115000000

0.0279

334000000

468000000

104000000

135000000

17000000

16000000

Composition by Repayment Schedule: <div style="margin-left:60pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:40%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="18" style="width:58%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:40%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Interest rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:40%; vertical-align:bottom; "> Series G Debentures </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; vertical-align:bottom; "> 2.79% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 41,590 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 41,590 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 20,796 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 103,976 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:40%; vertical-align:bottom; "> Accretion of carrying amount to principal amount </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,579 </td> <td style="width:1%; vertical-align:middle; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:40%; vertical-align:bottom; "> Carrying amount </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 102,397 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

0.0279

41590000

20796000

103976000

1579000

102397000

NOTE 11 - OTHER LONG-TERM DEBT A.Composition: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Long-term JPY loan – principal amount – see B and C below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 106,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 101,365 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Capital leases and other long-term liabilities – see D below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 162,171 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 60,277 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Operating leases – see E below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Less - current maturities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (65,658 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (28,201 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 222,222 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 151,269 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 23 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 11 - OTHER LONG-TERM DEBT (Cont.) B.Repayment Schedule of Long-term JPY Loan: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:26%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="26" style="width:72%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:26%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Interest rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:26%; vertical-align:bottom; "> Long-term JPY loan </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; vertical-align:bottom; "> 1.95% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 11,859 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 106,719 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> C.Long-term JPY loan In June 2018, TPSCo refinanced its two outstanding loans with 11 Billion JPY (approximately $100,000) new asset-based loan agreements with a consortia of financial institutions comprised of (i) JA Mitsui Leasing, Ltd., (ii) Sumitomo Mitsui Trust Bank, Limited (SMTB) replaced in 2020 by Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), (iii) Sumitomo Mitsui Banking Corporation (SMBC) and (iv) China trust Commercial Bank Corporation (CTBC) replaced in 2020 by Mitsubishi UFJ Lease & Finance Co. Ltd (MUL) (“JP Loan”). The JP Loan carries a fixed interest rate of 1.95% per annum with principal payable in nine semiannual payments from June 2021 until June 2025. The JP Loan is secured mainly by a lien over the machinery and equipment of TPSCo located in the Uozu and Tonami manufacturing facilities. Outstanding principal amount was approximately $107,000 as of December 31, 2020. The JP Loan also contains certain financial ratios and covenants, as well as customary definitions of events of default and acceleration of the repayment schedule. TPSCo’s obligations pursuant to the JP Loan are not guaranteed by Tower, NTCJ, or any of its affiliates. As of December 31, 2020, TPSCo was in compliance with all of the financial ratios and covenants under the amended JP Loan. D.Capital Lease Agreements and Other Long-Term Liabilities Certain of the Company’s subsidiaries enter, from time to time, into capital lease agreements for certain machinery and equipment it operates in some of its fabrication facilities, usually for a period of four years, with an option to buy the machinery and equipment after a period of between three to four years from the start of the lease period. The lease agreements contain annual interest rates of approximately 2% and the assets under the lease agreements are pledged to the lender until the time at which the respective subsidiary will buy the assets. The obligations under the capital lease agreements are guaranteed by Tower, except for TPSCo’s obligations under its capital lease agreements. TPSCo leases its fabrication facility buildings in Japan from NTCJ under a long-term capital lease that was renewed in 2020 for continuation of the lease until at least March 2032. Under the lease agreement, TPSCo and NTCJ are expected to make best efforts to negotiate the purchase of the relevant facilities, buildings and related land, based on terms and conditions stipulated in the lease agreement, however if mutually agreed terms are not reached, the lease contract will continue until at least 2032. <div> <div style="width:100%; clear:both;"> F - 24 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 11 - OTHER LONG-TERM DEBT (Cont.) As of December 31, 2020 and 2019, the Company’s total outstanding capital lease liabilities for fixed assets was $159,650 and $60,277, respectively, of which $34,863 and $21,070 respectively, were included under current maturities of long-term debt. The following presents the maturity of capital lease and other long-term liabilities as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 38,136 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 36,606 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25,350 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 26,808 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,788 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2026 and on </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 39,111 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 172,799 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> Less - imputed interest </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (10,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 162,171 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> E.Operating Lease Agreements In 2019, the Company adopted ASU No. 2016-02, "Leases" (Topic 842). The Company enters from time to time into operating leases for office space, operating facilities and vehicles. Operating lease cost for the years ended December 31, 2020, 2019 and 2018 was $7,627, $8,045 and $8,773, respectively. During 2020, cash paid for operating lease liabilities was $7,065. The following presents the composition of operating leases in the balance sheets: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Classification in the Consolidated Balance Sheets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Right of use - assets under operating leases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Deferred tax and other long-term assets, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Lease liabilities: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Current operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Current maturities of long-term debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6,550 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 7,131 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Long-term operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Other long-term debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 12,440 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 10,697 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Total operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Weighted average remaining lease term (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5.1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 4.9 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Weighted average discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1.94 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1.95 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 25 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 11 - OTHER LONG-TERM DEBT (Cont.) The following presents the maturity of operating lease liabilities as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6,564 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,526 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,301 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,166 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,202 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> Thereafter </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,893 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 19,652 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> Less – imputed interest </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (662 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,990 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> F.Wells Fargo Credit Line TSNP entered into an agreement with Wells Fargo Capital Finance, part of Wells Fargo & Company (“Wells Fargo”), for a secured asset-based revolving credit line in the total amount of up to $70,000, maturing in 2023 (the “TSNP Credit Line Agreement”). The applicable interest on the loans is at a rate equal to, at lender’s option, either the lender’s prime rate plus a margin ranging from 0.0% to 0.5% or the LIBOR rate plus a margin ranging from 1.25% to 1.75% per annum. The outstanding borrowing availability varies from time to time based on the levels of TSNP’s eligible accounts receivable, eligible equipment, eligible inventories and other terms and conditions described in the TSNP Credit Line Agreement. The obligations of TSNP under the TSNP Credit Line Agreement are secured by a security interest on all the assets of TSNP. The TSNP Credit Line Agreement contains customary covenants and other terms, including customary events of default. TSNP’s obligations pursuant to the TSNP Credit Line Agreement are not guaranteed by Tower or any of its affiliates. As of December 31, 2020, TSNP was in compliance with all of the covenants under the TSNP Credit Line Agreement. As of December 31, 2020, borrowing availability under the TSNP Credit Line Agreement was approximately $69,000, of which approximately $1,000 was utilized through letters of credit. As of December 31, 2020 and 2019, no loan amounts were outstanding under the TSNP Credit Line Agreement.

A.Composition: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Long-term JPY loan – principal amount – see B and C below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 106,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 101,365 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Capital leases and other long-term liabilities – see D below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 162,171 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 60,277 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Operating leases – see E below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Less - current maturities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (65,658 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (28,201 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 222,222 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 151,269 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

106719000

101365000

162171000

60277000

18990000

17828000

65658000 28201000

222222000

151269000

B.Repayment Schedule of Long-term JPY Loan: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:26%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="26" style="width:72%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:26%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Interest rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:26%; vertical-align:bottom; "> Long-term JPY loan </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:9%; vertical-align:bottom; "> 1.95% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 23,715 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 11,859 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 106,719 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

1.95

23715000

11859000

106719000

11000000000

100000000

0.0195

107000000

0.02

159650000

60277000

34863000

21070000

The following presents the maturity of capital lease and other long-term liabilities as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 38,136 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 36,606 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25,350 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 26,808 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,788 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2026 and on </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 39,111 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 172,799 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> Less - imputed interest </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (10,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:87%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 162,171 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

38136000

36606000

25350000

26808000

6788000

39111000

172799000

10628000

162171000

7627000

8045000

8773000

7065000

The following presents the composition of operating leases in the balance sheets: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Classification in the Consolidated Balance Sheets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Right of use - assets under operating leases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Deferred tax and other long-term assets, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Lease liabilities: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Current operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Current maturities of long-term debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6,550 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 7,131 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Long-term operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> Other long-term debt </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 12,440 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 10,697 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Total operating lease liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,990 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Weighted average remaining lease term (years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5.1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 4.9 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Weighted average discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:37%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1.94 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1.95 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody></table></div>

18990000

6550000

7131000

12440000

10697000

18990000

P5Y1M6D

P4Y10M24D

0.0194

0.0195

6564000

3526000

2301000

2166000

2202000

2893000

19652000

662000

18990000

70000000

0.000

0.005

0.0125

0.0175

69000000

1000000

NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company makes certain disclosures as detailed below with regard to financial instruments, including derivatives. These disclosures include, among other matters, the nature and terms of derivative transactions, information about significant concentrations of credit risk and the fair value of financial assets and liabilities. A.Non-Designated Exchange Rate Transactions As the functional currency of Tower is the USD and part of Tower's expenses are denominated in NIS, Tower enters from time to time into exchange rate agreements to partially protect against the volatility of future cash flows caused by changes in foreign exchange rates on NIS denominated expenses. As of December 31, 2020, the fair value amounts of such exchange rate agreements were $5,143 in an asset position, presented in other current assets with a face value of $51,000. As of December 31, 2019, the fair value amounts of such exchange rate agreements were $167 in an asset position, presented in other current assets with a face value of $48,000. Changes in the fair values of such derivatives are presented in cost of revenues in the statements of operations. As the functional currency of the Company is the USD and part of TPSCo revenues and expenses are denominated in JPY, the Company enters from time to time into exchange rate agreements to protect against the volatility of future cash flows caused by changes in foreign exchange rates on JPY denominated amounts. As of December 31, 2020 and 2019, the fair value amounts of such exchange rate agreements were $150 in an asset position and $318, in a liability position, respectively, presented in other current assets and other current liabilities, respectively, with a face value of $40,000 and $36,000, respectively. Changes in the fair value of such derivatives are presented in the statements of operations. B.Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, derivatives, trade receivables and government and other receivables. The Company's cash, deposits, marketable securities and derivatives are maintained with large and reputable banks and investment banks. The composition and maturities of investments are regularly monitored by the Company. Generally, these securities may be redeemed upon demand and bear minimal risk. The Company generally does not require collateral for insurance of receivables; however, in certain circumstances, the Company obtains credit insurance or may require advance payments. An allowance for current expected credit losses is maintained with respect to trade accounts receivables and marketable securities. The Company performs ongoing credit evaluations of its customers. <div> <div style="width:100%; clear:both;"> F - 27 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) C.Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, excluding debentures, do not materially differ from their respective carrying amounts as of December 31, 2020 and 2019. The fair value of debentures, based on quoted market prices as of December 31, 2020 and 2019, was approximately $107,000 and $140,000, respectively, compared to carrying amounts of approximately $102,000 and $132,000, for the above dates, respectively. D.Designated Cash Flow Hedge Transactions The Company entered into designated cash flow hedging transactions to mitigate the foreign exchange rate differences on principal and interest using a cross currency swap to mitigate the risk arising from the Series G Debentures denomination in NIS. As of December 31, 2020, the fair value of the swap was $16,977 in an asset net position, of which $6,316 was presented in other current assets and $10,661 was presented in long-term assets. As of December 31, 2019, the fair value of the swap was $15,642 in an asset net position, of which $3,017 was presented in other current assets and $12,625 was presented in long-term assets. As of December 31, 2020 and December 31, 2019, the effective portions of $323 loss and $1,504 income, respectively, were recorded in OCI, of which a loss of $533 is expected to be recorded in earnings during the twelve months ending December 31, 2021. For the years ended December 31, 2020 and December 31, 2019, the hedging effect on the Company’s results of operations was $5,252 and $8,816 income, respectively, and was recognized as financing income, to offset the effect of the rate difference related to the Series G Debentures. E.Fair Value Measurements Valuation Techniques In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to the Company’s Level 1 assets and liabilities. If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology applies to the Company’s Level 2 and Level 3 assets and liabilities. <div> <div style="width:100%; clear:both;"> F - 28 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) Level 1 Measurements Securities classified as available-for-sale are reported at fair value on a recurring basis. These securities are classified as Level 1 of the valuation hierarchy where quoted market prices from reputable third-party brokers are available in an active market. Changes in fair value of securities available-for-sale are recorded in other comprehensive income. Level 2 Measurements If quoted market prices are not available, the Company obtains fair value measurements of similar assets and liabilities from an independent pricing service. These securities are reported using Level 2 inputs and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. For cross currency swap measured under Level 2 - the Company uses the market approach using quotations from banks and other public information. Level 3 Measurements Equity Securities without Readily Determinable Fair Values - Investments in privately-held companies are measured using the Measurement Alternatives, see Note 2J above. The Company reviews these investments for impairment and observable price changes on a quarterly basis and adjusts the carrying value accordingly. For the years ended December 31, 2020 and 2019, the Company recorded an increase in the value of such investments, of $358 and $5,270, respectively, presented in “other income (expense), net”, in the statements of operations. Recurring fair value measurements using the indicated inputs: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Quoted prices in active market for identical liability (Level 1) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant other observable inputs (Level 2) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant unobservable inputs (Level 3) </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Cross currency swap - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,977 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,977 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Privately-held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Marketable securities held for sale </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Foreign exchange forward and cylinders - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,293 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,293 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 228,183 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,270 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,727 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 29 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) E.Fair Value Measurements (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Quoted prices in active market for identical liability (Level 1) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant other observable inputs (Level 2) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant unobservable inputs (Level 3) </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Cross currency swap - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,642 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,642 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Privately-held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Marketable securities held for sale </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Foreign exchange forward and cylinders - net liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (151 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (151 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 206,521 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,491 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,725 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> F.Short-Term and Long-Term Deposits and Marketable Securities Deposits and marketable securities as of December 31, 2020 included short term deposits in the amount of $310,230, marketable securities with applicable accrued interest in the amount of $188,967 and a long-term bank deposit in the amount of $12,500; as of December 31, 2019, deposits and marketable securities included short term deposits in the amount of $215,609, marketable securities with applicable accrued interest in the amount of $176,070 and a long-term bank deposit in the amount of $12,500. The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross unrealized Gains </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 154,577 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 1,207 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> (735 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 155,049 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,894 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 37 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> (53 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,878 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Certificate of deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 11 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 259 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 187,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,255 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> (788 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $781. The scheduled maturities of available-for-sale marketable securities as of December 31, 2020, were as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:68%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:68%; vertical-align:bottom; "> Due within one year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 22,772 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 22,800 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> Due within 2-5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 138,894 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 139,210 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:68%; vertical-align:bottom; "> Due after 5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 26,053 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 26,176 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 187,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 30 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) F.Short-Term and Long-Term Deposits and Marketable Securities (Cont.) The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2019: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross unrealized Gains </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 154,167 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,273 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 155,226 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,969 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 37 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,006 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Municipal bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,208 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 21 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,229 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Money market fund </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,225 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 366 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,591 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Certificate of deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 253 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 173,817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,702 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $765. The scheduled maturities of available-for-sale marketable securities as of December 31, 2019, were as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Due within one year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 37,845 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 37,818 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Due within 2-5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 119,202 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 120,344 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Due after 5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 16,770 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 17,143 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 173,817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> Investments with continuous unrealized losses for less than twelve months and twelve months or more and their related fair values as of December 31, 2020 and December 31, 2019, were as indicated in the following tables: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="22" style="width:76%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investment with continuous unrealized losses for less than twelve months </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or more </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total Investments with continuous unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 24,699 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (700 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 9,434 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (35 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 34,133 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (735 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,430 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (50 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,497 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 13,927 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (53 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 37,129 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (750 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,931 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (38 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 48,060 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (788 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="22" style="width:76%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investment with continuous unrealized losses for less than twelve months </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or more </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total Investments with continuous unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,562 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (56 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 23,022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (158 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 31,584 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody></table></div>

5143000

51000000

167000

48000000

150000

318000

40000000

36000000

107000000

140000000

102000000

132000000

16977000 6316000 10661000 15642000 3017000 12625000

323000

1504000

-533000

5252000

8816000

358000

5270000

Recurring fair value measurements using the indicated inputs: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Quoted prices in active market for identical liability (Level 1) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant other observable inputs (Level 2) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant unobservable inputs (Level 3) </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Cross currency swap - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,977 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,977 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Privately-held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 17,727 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Marketable securities held for sale </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Foreign exchange forward and cylinders - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,293 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,293 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 228,183 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,270 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 17,727 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 29 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) E.Fair Value Measurements (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Quoted prices in active market for identical liability (Level 1) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant other observable inputs (Level 2) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Significant unobservable inputs (Level 3) </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Cross currency swap - net asset position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,642 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,642 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Privately-held companies </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,725 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Marketable securities held for sale </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Foreign exchange forward and cylinders - net liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (151 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (151 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 206,521 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,491 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,725 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

16977000 16977000 17727000 17727000

188186000

5293000

228183000

188186000

22270000

17727000

15642000 15642000 15725000 15725000

175305000

151000

206521000

175305000

15491000

15725000

310230000

188967000

12500000

215609000

176070000

12500000 The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross unrealized Gains </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 154,577 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 1,207 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> (735 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 155,049 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,894 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 37 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> (53 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,878 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:36%; vertical-align:bottom; "> Certificate of deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 11 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 259 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:36%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 187,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,255 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> (788 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $781. The following table summarizes amortized costs, gross unrealized gains and losses and estimated fair values of available-for-sale marketable securities as of December 31, 2019: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost (*) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross unrealized Gains </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Gross Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 154,167 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,273 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 155,226 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,969 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 37 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,006 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Municipal bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,208 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 21 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,229 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> Money market fund </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,225 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 366 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,591 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:48%; vertical-align:bottom; "> Certificate of deposits </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 253 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 173,817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,702 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $765.

154577000

1207000

735000

155049000

32894000

37000

53000

32878000

248000

11000

259000

187719000

1255000

788000

188186000

781000

The scheduled maturities of available-for-sale marketable securities as of December 31, 2020, were as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:68%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:68%; vertical-align:bottom; "> Due within one year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 22,772 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:13%; vertical-align:bottom; "> 22,800 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> Due within 2-5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 138,894 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 139,210 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:68%; vertical-align:bottom; "> Due after 5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 26,053 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:13%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 26,176 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 187,719 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:13%; vertical-align:bottom; border-bottom:3px double #000000; "> 188,186 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> The scheduled maturities of available-for-sale marketable securities as of December 31, 2019, were as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Amortized cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Estimated fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Due within one year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 37,845 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 37,818 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Due within 2-5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 119,202 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 120,344 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Due after 5 years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 16,770 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 17,143 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 173,817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

22772000

22800000

138894000

139210000

26053000

26176000

187719000

188186000

154167000

1273000

214000

155226000

2969000

37000

3006000

1208000

21000

1229000

15225000

366000

15591000

248000

5000

253000

173817000

1702000

214000

175305000

765000

37845000

37818000

119202000

120344000

16770000

17143000

173817000

175305000

Investments with continuous unrealized losses for less than twelve months and twelve months or more and their related fair values as of December 31, 2020 and December 31, 2019, were as indicated in the following tables: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="22" style="width:76%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investment with continuous unrealized losses for less than twelve months </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or more </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total Investments with continuous unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 24,699 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (700 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 9,434 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (35 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 34,133 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (735 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Government bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,430 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (50 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,497 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 13,927 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (53 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 37,129 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (750 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 10,931 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (38 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 48,060 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (788 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="22" style="width:76%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investment with continuous unrealized losses for less than twelve months </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or more </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Total Investments with continuous unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style=""> <td style="width:22%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrealized losses </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:22%; vertical-align:bottom; "> Corporate bonds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,562 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (56 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 23,022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (158 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 31,584 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody></table></div>

24699000

700000

9434000

35000

34133000

735000

12430000

50000

1497000

3000

13927000

53000

37129000

750000

10931000

38000

48060000

788000

8562000

56000

23022000

158000

31584000

214000

NOTE 13 - EMPLOYEE RELATED LIABILITIES A.Employee Termination Benefits Israeli law, labor agreements and corporate policy determine the obligations of Tower to make severance payments to dismissed Israeli employees and to Israeli employees leaving employment under certain circumstances. Generally, the liability for severance pay benefits, as determined by Israeli law, is based upon length of service and the employee’s monthly salary. This liability is primarily covered by regular deposits made each month by Tower into recognized severance and pension funds and by insurance policies maintained by Tower, based on the employee’s salary for the relevant month. The amounts so funded and the liability are included on the balance sheets in long-term investments and employee related liabilities in the amounts of $7,954 and $10,304, respectively, as of December 31, 2020. Commencing January 1, 2005, Tower implemented a labor agreement with regard to most of its Israeli employees, according to which monthly deposits into recognized severance and pension funds or insurance policies will release it from any additional severance obligation in excess of the balance in such accounts to such Israeli employees and, therefore, Tower incurs no liability or asset with respect to such severance obligations and deposits, since that date. Any net severance amount as of such date will be released on the employee’s termination date. Payments relating to Israeli employee termination benefits were $5,254, $5,597 and $5,158 for 2020, 2019 and 2018, respectively. TPSCo established a Defined Contribution Retirement Plan (the “DC Plan”) for its employees through which TPSCo contributes approximately 9% with employee average match of 1% of employee base salary to the DC Plan. Such contribution releases the employer from further obligation to any payments upon termination of employment. The contribution is remitted either to third party benefit funds based on employee preference, or directly, to those employees who elected not to enroll in the DC Plan. Total payments under the DC Plan in 2020, 2019 and 2018 amounted to $6,132, $6,572 and $6,700, respectively. <div> <div style="width:100%; clear:both;"> F - 32 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans The following information provides the changes in 2020, 2019 and 2018 periodic expenses and benefit obligations due to the bargaining agreement signed between TSNP with its collective bargaining unit employees. Post-Retirement Medical Plan The components of the net periodic benefit cost and other amounts recognized in other comprehensive income for post-retirement medical plan expense are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net periodic benefit cost: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Service cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 7 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 57 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 72 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 73 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of net loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (298 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (262 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total net periodic benefit cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (178 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (219 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (179 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Other changes in plan assets and benefits obligations recognized in other comprehensive income: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Prior service cost for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net loss (gain) for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 146 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (376 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of net gain (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 241 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 298 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 262 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total recognized in other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 387 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 297 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (114 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Total recognized in net periodic benefit cost and other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 209 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 78 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (293 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.40% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.80% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Expected return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Assumed health care cost trend rates: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Health care cost trend rate assumed for current year (Pre-65/Post-65 Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/(5.00)% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.90%/13.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8.30%/11.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Health care cost trend rate assumed for current year (Pre-65/Post-65 Non Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/6.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.90%/7.90% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Ultimate rate (Pre-65/Post-65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Year the ultimate rate is reached (Pre-65/Post-65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2027/2027 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Measurement date </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2018 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 33 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) The components of the change in benefit obligation, change in plan assets and funded status for post-retirement medical plan are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in medical plan related benefit obligation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Medical plan related benefit obligation at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,689 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,628 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,936 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Service cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 57 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 72 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 73 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (17 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (15 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Change in medical plan provisions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Actuarial loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 146 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (376 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefit medical plan related obligation end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,882 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,689 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,628 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in plan assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Employer contribution </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (15 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Medical plan related net funding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,882 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,689 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 34 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:60%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:38%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:12%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Amounts recognized in statement of financial position: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (62 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (50 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:11%; vertical-align:bottom; "> (65 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Non-current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,820 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,639 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:11%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,563 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Net amount recognized </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,882 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,689 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:11%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2.80 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.40 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Assumed health care cost trend rates: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Health care cost trend rate assumed for next year (pre 65/ post 65 Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.00%/6.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/(5.00 </td> <td style="width:1%; vertical-align:bottom; "> )% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 6.90%/13.10 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Health care cost trend rate assumed for next year (pre 65/ post 65 Non-Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.00%/6.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/6.10 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 6.90%/7.90 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Ultimate rate (pre 65/ post 65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Year the ultimate rate is reached (pre 65/ post 65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> The following benefit payments are expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:85%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:13%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Other Benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 62 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 55 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 58 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 66 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 71 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2026-2030 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 410 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> Description of Significant Gains and Losses in Obligations: For Fiscal Year Ended December 31, 2020, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 2.80%, compared to 3.40% in the prior year. For Fiscal Year Ended December 31, 2019, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 3.40%, compared to 4.50% in the prior year. <div> <div style="width:100%; clear:both;"> F - 35 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) TSNP Pension Plan TSNP has a pension plan that provides for monthly pension payments to eligible employees upon retirement. The pension benefits are based on years of service and specified benefit amounts. TSNP uses a December 31 measurement date. TSNP’s funding policy is to make contributions that satisfy at least the minimum required contribution for IRS qualified plans. The components of the change in benefit obligation, the change in plan assets and funded status for TSNP’s pension plan are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net periodic benefit cost: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 687 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 749 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Expected return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (909 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (930 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1,427 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Expected Administrative Expenses </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of net loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 27 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Total net periodic benefit cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (92 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (10 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (675 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Other changes in plan assets and benefits obligations recognized in other comprehensive income: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Prior service cost for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Net loss (gain) for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 149 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,158 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (231 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of net gain (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (27 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Total recognized in other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 119 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,155 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (234 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total recognized in net periodic benefit cost and other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 27 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,145 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (909 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.20% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.40% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.70% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Expected return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.80% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.20% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 36 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) TSNP Pension Plan (Cont.) The components of the change in benefit obligation, change in plan assets and funded status for TSNP’s pension plan are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in benefit obligation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefit obligation at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 21,908 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 18,979 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,629 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 687 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 749 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (736 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (688 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (607 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in plan provisions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Actuarial loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,608 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,800 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,792 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefit obligation end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 23,467 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 21,908 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,979 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Change in plan assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 22,669 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 23,235 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Actual return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,337 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,544 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (133 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Employer contribution </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Expenses paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (69 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (71 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (737 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (688 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (607 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,670 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Funded status </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amounts recognized in statement of financial position: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Non-current assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Non-current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net amount recognized </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.20% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.40% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> The following benefit payments are expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:84%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:13%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Other Benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 913 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 997 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,074 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,131 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,176 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2026-2030 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 6,182 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 37 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) TSNP Pension Plan (Cont.) Description of Significant Gains and Losses in Obligations: For Fiscal Year Ended December 31, 2020, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 2.50%, compared to 3.20% in the prior year. For Fiscal Year Ended December 31, 2019, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 3.20%, compared to 4.40% in the prior year. The plan’s assets measured at fair value on a recurring basis consisted of the following as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 2 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Investments in mutual funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total plan assets at fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> The plan’s assets measured at fair value on a recurring basis consisted of the following as of December 31, 2019: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 2 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Investments in mutual funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total plan assets at fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> TSNP’s pension plan weighted average asset allocations on December 31, 2020, by asset category are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Asset Category </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Target allocation 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Equity securities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 20 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Debt securities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 75 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 80 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody></table></div> TSNP’s primary policy goals regarding the plan’s assets are cost-effective diversification of plan assets, competitive returns on investment and preservation of capital. Plan assets are currently invested in mutual funds with various debt and equity investment objectives. The target asset allocation for the plan assets is 80% debt, or fixed income securities, and 20% equity securities. Individual funds are evaluated periodically based on comparisons to benchmark indices and peer group funds and investment decisions are made by TSNP in accordance with the policy goals. Actual allocation to each asset category fluctuates and may not be within the target allocation specified above due to changes in market conditions. The estimated expected return on assets of the plan is based on assumptions derived from, among other things, the historical return on assets of the plan, the current and expected investment allocation of assets held by the plan and the current and expected future rates of return in the debt and equity markets for investments held by the plan. The obligations under the plan could differ from the obligation currently recorded, if management's estimates are not consistent with actual investment performance.

7954000 10304000

5254000

5597000

5158000

0.09

0.01

6132000

6572000

6700000

The components of the net periodic benefit cost and other amounts recognized in other comprehensive income for post-retirement medical plan expense are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net periodic benefit cost: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Service cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 7 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 57 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 72 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 73 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of net loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (241 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (298 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (262 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total net periodic benefit cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (178 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (219 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (179 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Other changes in plan assets and benefits obligations recognized in other comprehensive income: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Prior service cost for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net loss (gain) for the period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 146 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (376 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amortization of prior service costs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Amortization of net gain (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 241 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 298 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 262 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total recognized in other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 387 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 297 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (114 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Total recognized in net periodic benefit cost and other comprehensive income (loss) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 209 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 78 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (293 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.40% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.80% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Expected return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Assumed health care cost trend rates: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Health care cost trend rate assumed for current year (Pre-65/Post-65 Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/(5.00)% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.90%/13.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8.30%/11.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Health care cost trend rate assumed for current year (Pre-65/Post-65 Non Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/6.10% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.90%/7.90% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Ultimate rate (Pre-65/Post-65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Year the ultimate rate is reached (Pre-65/Post-65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2027/2027 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Measurement date </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2018 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

6000

7000

10000

57000

72000

73000

241000

298000

262000

-178000

-219000

-179000

-146000

1000

376000

241000 298000 262000

387000

297000

-114000

209000

78000

-293000

0.0340

0.0450

0.0380

0.0620 0.0500 0.0690 0.1310 0.0830 0.1110 0.0620 0.0610 0.0690 0.0790 0.0450 0.0450 0.0450 0.0450 0.0450 0.0450 2029 2029 2029 2029 2027 2027 2020-12-31 2019-12-31 2018-12-31

The components of the change in benefit obligation, change in plan assets and funded status for post-retirement medical plan are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in medical plan related benefit obligation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Medical plan related benefit obligation at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,689 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,628 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,936 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Service cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 57 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 72 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 73 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (17 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (15 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Change in medical plan provisions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Actuarial loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 146 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (376 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefit medical plan related obligation end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,882 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,689 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,628 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in plan assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Employer contribution </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (16 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (15 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Medical plan related net funding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,882 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,689 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 34 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.TSNP Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:60%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:38%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:12%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Amounts recognized in statement of financial position: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (62 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (50 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:11%; vertical-align:bottom; "> (65 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Non-current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,820 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,639 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:11%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,563 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Net amount recognized </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,882 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,689 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:11%; vertical-align:bottom; border-bottom:3px double #000000; "> (1,628 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2.80 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.40 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Assumed health care cost trend rates: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Health care cost trend rate assumed for next year (pre 65/ post 65 Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.00%/6.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/(5.00 </td> <td style="width:1%; vertical-align:bottom; "> )% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 6.90%/13.10 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Health care cost trend rate assumed for next year (pre 65/ post 65 Non-Medicare Advantage) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.00%/6.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6.20%/6.10 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 6.90%/7.90 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:60%; vertical-align:bottom; "> Ultimate rate (pre 65/ post 65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 4.50%/4.50 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:60%; vertical-align:bottom; "> Year the ultimate rate is reached (pre 65/ post 65) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:11%; vertical-align:bottom; "> 2029/2029 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

1689000

1628000

1936000

6000

7000

10000

57000

72000

73000

16000

17000

15000

-146000

1000

376000

1882000

1689000

1628000

16000

15000

16000

15000

-1882000

-1689000

-1628000

62000

50000

65000

1820000

1639000

1563000

-1882000

-1689000

-1628000

0.0280

0.0340

0.0450

0.0600

0.0650

0.0620

-0.0500

0.0690

0.1310

0.0600

0.0650

0.0620

0.0610

0.0690

0.0790

0.0450

2029

The following benefit payments are expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:85%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:13%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Other Benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 62 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 55 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 58 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 66 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:85%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 71 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:85%; vertical-align:bottom; "> 2026-2030 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 410 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

62000

55000

58000

66000

71000

410000

0.0280 0.0340 0.0450

687000

817000

749000

909000

930000

1427000

100000

-3000

-27000

-92000

-10000

-675000

-149000

-1158000

231000

-3000 -3000 -3000 -27000

119000

1155000

-234000

27000

1145000

-909000

0.0320

0.0440

0.0370

0.0380

0.0420

0.0620

The components of the change in benefit obligation, change in plan assets and funded status for TSNP’s pension plan are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in benefit obligation: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefit obligation at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 21,908 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 18,979 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,629 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Interest cost </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 687 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 817 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 749 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (736 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (688 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (607 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in plan provisions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Actuarial loss (gain) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 1,608 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 2,800 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,792 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefit obligation end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 23,467 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 21,908 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 18,979 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Change in plan assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at beginning of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 22,669 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 23,235 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Actual return on plan assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,337 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,544 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (133 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Employer contribution </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 175 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Expenses paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (69 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (71 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Benefits paid </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (737 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (688 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (607 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Fair value of plan assets at end of period </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 22,670 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Funded status </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Amounts recognized in statement of financial position: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Non-current assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Non-current liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> - </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Net amount recognized </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,518 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,546 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 3,691 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Weighted average assumptions used: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Discount rate </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2.50% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3.20% </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.40% </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Rate of compensation increases </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> N/A </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

21908000

18979000

20629000

687000

817000

749000

736000

688000

607000

-1608000

-2800000

1792000

23467000

21908000

18979000

23235000

2337000

2544000

-133000

175000

-69000 -71000

737000

688000

607000

25985000

22670000

2518000

2546000

3691000

2518000

2546000

3691000

2518000

2546000

3691000

0.0250

0.0320

0.0440

The following benefit payments are expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:84%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:13%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Other Benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 913 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2022 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 997 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2023 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,074 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2024 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,131 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:84%; vertical-align:bottom; "> 2025 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:12%; vertical-align:bottom; "> 1,176 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:84%; vertical-align:bottom; "> 2026-2030 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:12%; vertical-align:bottom; "> 6,182 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

913000

997000

1074000

1131000

1176000

6182000

Description of Significant Gains and Losses in Obligations: For Fiscal Year Ended December 31, 2020, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 2.50%, compared to 3.20% in the prior year. For Fiscal Year Ended December 31, 2019, the benefit obligation experienced a net actuarial loss that was primarily attributable to the discount rate decrease to 3.20%, compared to 4.40% in the prior year. The plan’s assets measured at fair value on a recurring basis consisted of the following as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 2 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Investments in mutual funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total plan assets at fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 25,985 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> The plan’s assets measured at fair value on a recurring basis consisted of the following as of December 31, 2019: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 1 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 2 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Level 3 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Investments in mutual funds </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total plan assets at fair value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 24,454 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> -- </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

0.0250 0.0320 0.0440

25985000

24454000

TSNP’s pension plan weighted average asset allocations on December 31, 2020, by asset category are as follows: <div style="margin-left:80pt; "> <table cellpadding="0" class="fin" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Asset Category </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Target allocation 2021 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Equity securities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 20 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Debt securities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 75 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 80 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody></table></div>

0.25

0.20

0.75

0.80

18000000

9000000

NOTE 15 - SHAREHOLDERS’ EQUITY A.Description of Ordinary Shares As of December 31, 2020, Tower had 150 million authorized ordinary shares, par value NIS 15.00 each, of which approximately 108 million were outstanding. Holders of ordinary shares are entitled to participate equally in the payment of cash dividends and bonus share (stock dividend) distributions and, in the event of the liquidation of Tower, in the distribution of assets after satisfaction of liabilities to creditors. Each ordinary share is entitled to one vote on all matters to be voted on by shareholders. <div> <div style="width:100%; clear:both;"> F - 40 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) B.Equity Incentive Plans (1)General The Company has granted to its employees and directors options and restricted stock units (“RSUs”) to purchase ordinary shares under several share incentive plans adopted by the Company. The specific provisions of each plan and grant vary as to vesting period, exercise price, exercise period and other terms. Generally, (i) the exercise price of options will not be lower than the nominal value of the shares and will equal either the closing market price of the ordinary shares immediately prior to the date of grant, or in relation to grants made from September 2013, an average of the closing price during the thirty trading days immediately prior to the date of grant; (ii) vesting is over a one to four year period according to defined vesting schedules, and for performance RSUs include performance targets; and (iii) options are not exercisable beyond seven or ten years from the grant date, as applicable. Except for those share incentive plans described below, as of December 31, 2020 and December 31, 2019, there were approximately 3 thousand and 25 thousand options, respectively, which were outstanding under the Company’s other share incentive plans (the "Old Plans”). No further options may be granted under the Old Plans. (2)Tower’s 2013 Share Incentive Plan (the "2013 Plan") In 2013, the Company adopted a share incentive plan for directors, officers and employees of the Company which in 2019 was extended to enable grants to third party service providers (“2013 Plan”). Options granted under the 2013 Plan bear an exercise price equal to the average closing price during the thirty trading days immediately prior to the date of grant, vest over up to a three-year period and are not exercisable beyond seven years from the grant date. Under the 2013 Plan, the Company granted, in 2020 and 2019, a total of 1.11 million RSUs and 1.16 million RSUs, respectively, to its employees and directors (including the below described grants to the CEO and Chairman), with vesting over up to a three-year period. The Company measures compensation expenses of the RSUs based on the closing market price of the ordinary shares immediately prior to the date of grant and amortizes it over the applicable vesting period taking into consideration compliance with performance criteria, if any. <div> <div style="width:100%; clear:both;"> F - 41 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) In September 2020, the Company's shareholders approved the grant of the following RSUs to the Company's CEO and members of the Board of Directors under the 2013 Plan: (i) 109 thousand time vested RSUs and 163 thousand performance based RSUs to the CEO, which RSUs will vest linearly over a three-year period, 33% at the end of each year for three years following the grant date, for a compensation value of approximately $5,000. Commencing May 2024, the CEO will have to own ordinary shares of the Company at a minimum value that equals at least three times his annual base salary as of May 2024 (“Minimum Holding”). The CEO has 5 years from May 2019 and until May 2024 to accumulate the Minimum Holding (whether by RSUs converted to ordinary shares or purchase of ordinary shares), during which 5 year period he must retain at least 20% of the vested time-based RSUs that are granted to him from May 2019 until the time he will accumulate and maintain such amount of shares that equals or exceeds three times his annual base salary; (ii) 16 thousand time vested RSUs to the chairman of the Board of Directors (“the Chairman”) for a total compensation value of $300, to vest linearly over a three-year period, 33% at the end of each year for three years following the grant date; and (iii) 5 thousand time vested RSUs to each of the 9 members of the Board of Directors serving then (other than to the Chairman and the CEO), for an aggregate compensation value of $900, vesting over a two-year period, with 50% vesting at the first anniversary of the date of grant and 50% on the second anniversary of the date of grant. The chairman of the Board and each of the members of the Board will have to own ordinary shares of the Company at a minimum value that equals at least 50% of their annual cash compensation (“Minimum Holding”). They have 5 years to accumulate the Minimum Holding (whether by RSUs converted to ordinary shares or purchase of ordinary shares), during which 5 year period they must retain at least 20% of the vested time-based RSUs that were granted to them from July 2020 until the time they will accumulate and maintain such amount of shares that equals or exceeds 50% of their annual cash compensation. In June 2019, the Company's shareholders approved the grant of the following RSUs to the Company's CEO and members of the Board of Directors under the 2013 Plan: (i) 129 thousand time vested RSUs and 129 thousand performance based RSUs to the CEO, which RSUs will vest linearly over a three-year period, 33% at the end of each year for the three years following the grant date, for a compensation value of $3,900; (ii) 20 thousand time vested RSUs to the chairman of the Board of Directors (“the Chairman”) for a total compensation value of $300, to vest linearly over a three-year period, 33% at the end of each year for the three years following the grant date; and (iii) 5 thousand time vested RSUs to each of the 8 members of the Board of Directors serving then (other than to the Chairman and the CEO), for an aggregate compensation value of $600, vesting over a two-year period, with 50% vesting at the first anniversary of the date of grant and 50% on the second anniversary of the date of grant. In July 2018, the Company's shareholders approved the grant of the following RSUs to the Company's CEO and members of the Board of Directors under the 2013 Plan: (i) 107 thousand time vested RSUs and 72 thousand performance based RSUs to the CEO, which RSUs will vest linearly over a three-year period, 33% at the end of each year for the three years following the grant date, for a compensation value of $3,900; and, in addition, 50 thousand performance based RSUs vesting over three years, with 65% vesting at the first anniversary of the grant, an additional 25% at the second anniversary and the remaining portion at the third anniversary for an additional compensation value of $1,100; (ii) 14 thousand time vested RSUs to the Chairman for a total compensation value of $300, to vest linearly over a three-year period, 33% at the end of each year for the three years following the grant date; and (iii) 3 thousand time vested RSUs to each of the 8 members of the Board of Directors serving then (other than to the Chairman and the CEO), for an aggregate compensation value of $600, vesting over a two-year period, with 50% vesting on the first anniversary of the date of grant and 50% on the second anniversary of the date of grant. <div> <div style="width:100%; clear:both;"> F - 42 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) B.Equity Incentive Plans (Cont.) As of December 31, 2020, approximately 30 thousand options and approximately 2.2 million RSUs were outstanding under the 2013 Plan. As of December 31, 2019, approximately 318 thousand options and approximately 2 million RSUs were outstanding under the 2013 Plan. Further grants may be approved subject to compensation committee, board of directors and shareholders’ approval, as may be required by law. (3)i. Share Options awards: <div> <table cellpadding="0" class="fin" style="border-spacing:0; margin:auto; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of beginning of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 508,493 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.58 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 580,185 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.64 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Granted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Exercised </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (308,479 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 8.14 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (163,375 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 11.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (70,271 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 10.19 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Terminated </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (667 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.90 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (667 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.90 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (921 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.82 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Forfeited </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,500 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,000 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (500 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Outstanding as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 508,493 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.58 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Options exercisable as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 485,579 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.46 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> ii. RSUs awards: <div> <table cellpadding="0" class="fin" style="border-spacing:0; margin:auto; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of beginning of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2,013,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.13 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,599,296 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 22.27 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,245,889 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 21.29 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Granted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,105,155 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 19.86 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,159,881 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 18.06 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 977,667 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 20.80 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Converted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (806,993 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 20.45 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (484,665 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 23.91 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (602,423 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 17.86 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Forfeited </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (88,732 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 18.62 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (260,899 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 21.19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (21,837 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 22.11 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,223,043 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.45 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,013,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.13 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,599,296 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 22.27 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 43 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) B.Equity Incentive Plans (Cont.) (4)Summary of Information about Employees’ Share Incentive Plans The following table summarizes information about employees’ share options outstanding as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td colspan="14" style="width:66%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Outstanding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:31%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Exercisable </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Range of exercise prices </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number outstanding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average remaining contractual life (in years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number exercisable </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 12.00 - 17.16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 1.60 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15.28 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> The intrinsic value of options exercised </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 4,429 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,824 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,416 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> The original fair value of options exercised </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,018 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 665 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 302 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> The intrinsic value of converted RSUs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,971 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,207 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,840 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> The original fair value of converted RSUs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,506 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 11,588 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10,761 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> Stock-based compensation expenses were recognized in the Statement of Operations as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Cost of goods </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 5,197 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 4,529 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,141 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Research and development, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,568 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,900 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,533 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Marketing, general and administrative </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 8,223 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 7,119 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 6,987 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total stock-based compensation expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 16,988 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 14,548 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 12,661 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> C.Treasury Stock During 1999 and 1998, the Company funded the purchase by a trustee of an aggregate of approximately 87 thousand Tower’s ordinary shares. These shares are classified as treasury shares. D.Dividend Restriction Tower is subject to certain limitations on dividend distribution under the Series G Debentures indenture that allows for distribution of dividends subject to satisfying certain financial ratios.

3000

25000

1110000

1160000

P3Y

10900

16300

0.33

P3Y

5000000

P5Y

1600

300000

P3Y

0.33

5000

900000

0.50

129000

0.33

3900000

20000

300000

0.33

5000

600000

0.50

107000

72000

P3Y

0.33

3900000

50000

0.65

0.25

1100000

14000

300000

0.33

3000

600000

0.50

30000

2200000

318000

2000000

<div> <table cellpadding="0" class="fin" style="border-spacing:0; margin:auto; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of share options </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of beginning of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 508,493 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.58 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 580,185 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.64 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Granted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Exercised </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (308,479 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 8.14 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (163,375 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 11.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (70,271 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 10.19 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Terminated </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (667 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.90 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (667 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.90 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (921 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.82 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Forfeited </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,500 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,000 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (500 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 4.42 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Outstanding as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 508,493 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 9.58 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Options exercisable as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 343,451 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 8.79 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 485,579 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 9.46 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

343451

8.79

508493

9.58

580185

9.64

308479

8.14

163375

11.28

70271

10.19

667

9.90

667

9.90

921

9.82

1500

4.42

1000

4.42

500

4.42

32805

15.28

343451

8.79

508493

9.58

32805

15.28

343451

8.79

485579

9.46

ii. RSUs awards: <div> <table cellpadding="0" class="fin" style="border-spacing:0; margin:auto; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:22%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number of RSU </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted Average Fair Value </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of beginning of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2,013,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.13 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,599,296 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 22.27 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,245,889 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 21.29 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Granted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,105,155 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 19.86 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,159,881 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 18.06 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 977,667 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 20.80 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Converted </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (806,993 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 20.45 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (484,665 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 23.91 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (602,423 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 17.86 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> Forfeited </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (88,732 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 18.62 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (260,899 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 21.19 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (21,837 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 22.11 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:28%; vertical-align:bottom; "> Outstanding as of end of year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,223,043 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.45 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,013,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 19.13 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom:3px double #000000; "> 1,599,296 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:9%; vertical-align:bottom; "> 22.27 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

2013613

19.13

1599296

22.27

1245889

21.29

1105155

19.86

1159881

18.06

977667

20.80

-806993 20.45 -484665 23.91 -602423 17.86

88732

18.62

260899

21.19

21837

22.11

2223043

19.45

2013613

19.13

1599296

22.27

The following table summarizes information about employees’ share options outstanding as of December 31, 2020: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td colspan="14" style="width:66%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Outstanding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:31%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Exercisable </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Range of exercise prices </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number outstanding </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average remaining contractual life (in years) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:14%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Number exercisable </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Weighted average exercise price </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 12.00 - 17.16 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 1.60 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15.28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:13%; vertical-align:bottom; "> 32,805 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15.28 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

12.00

17.16

32805

P1Y7M6D

15.28

32805

15.28

4429000

1824000

1416000

1018000 665000 302000 <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> The intrinsic value of converted RSUs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,971 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,207 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 15,840 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> The original fair value of converted RSUs </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,506 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 11,588 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 10,761 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

15971000

8207000

15840000

16506000 11588000 10761000

Stock-based compensation expenses were recognized in the Statement of Operations as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Cost of goods </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 5,197 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 4,529 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,141 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Research and development, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,568 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,900 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,533 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Marketing, general and administrative </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 8,223 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 7,119 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 6,987 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total stock-based compensation expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 16,988 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 14,548 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 12,661 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

5197000

4529000

3141000

3568000

2900000

2533000

8223000

7119000

6987000

16988000

14548000

12661000

87000

A.Revenues by Geographic Area - as Percentage of Total Revenue <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> USA </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 44 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 52 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 52 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Japan </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 28 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 29 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 34 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Asia (other than Japan) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 22 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Europe </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 6 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 4 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 4 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 100 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody></table></div>

0.44

0.52

0.28

0.29

0.34

0.22

0.15

0.10

0.06

0.04

Substantially all of Tower’s long-lived assets are located in Israel, substantially all of TSNP’s and TSSA’s long-lived assets are located in the United States and substantially all of TPSCo’s long-lived assets are located in Japan. <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Israel </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 215,006 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 219,479 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> United States </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 234,902 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 248,453 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Japan </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 389,263 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 214,007 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 839,171 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 681,939 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

215006000

219479000

234902000

248453000

389263000

214007000

839171000

681939000

0.13

0.12

D.Major Customers - as Percentage of Total Revenue <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Customer A </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 27 </td> <td style="width:1%; vertical-align:bottom; "> % </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 33 </td> <td style="width:1%; vertical-align:bottom; "> % </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Customer B </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 11 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Other customers * </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 22 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 25 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 28 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <tbody> <tr class="odd" style=""> <td style="width:3%; vertical-align:top; "> * </td> <td style="width:97%; vertical-align:bottom; "> Represents aggregated revenue to four customers that accounted for between 4% to 7% of total revenue during 2020, to four customers that accounted for between 5% and 9% of total revenue during 2019, and to four customers that accounted for between 5% and 9% of total revenue during 2018. </td></tr></tbody></table></div>

0.25

0.27

0.33

0.11

0.07

0.01

0.22

0.25

0.28

0.04

0.07

0.05

0.09

0.05

0.09

Financing income (expense), net consists of the following: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Interest expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (6,755 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (6,823 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (10,610 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Interest income </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8,484 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,949 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10,762 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> TSNP Notes amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (5,010 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Series G Debentures amortization, related rate differences and hedging results </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3,045 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3,299 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (3,589 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Exchange rate differences </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 5,190 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (968 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1,064 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Bank fees and others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,004 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,847 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,673 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,870 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 12 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (13,184 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody></table></div>

6755000

6823000

10610000

8484000

12949000

10762000

5010000

3045000

3299000

3589000

-5190000

968000

1064000

-1004000 -1847000 -3673000 -2870000 -12000 13184000

A.Balance: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:30%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:43%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> The nature of the relationship involved </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:30%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:43%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:30%; vertical-align:bottom; "> Long-term investment </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:43%; vertical-align:bottom; "> Equity investment in a limited partnership </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 57 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 55 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> B.Transactions: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:30%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:30%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Description of the transactions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:30%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:30%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:30%; vertical-align:bottom; "> General and Administrative expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:30%; vertical-align:bottom; "> Directors’ fees and reimbursement to directors </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 787 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 783 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 736 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:30%; vertical-align:bottom; "> Other income (expense), net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:30%; vertical-align:bottom; "> Non-controlling interest income (loss) from a limited partnership </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (55 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 44 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

57000

55000

787000

783000

736000

2000 -55000 44000

NOTE 19 - INCOME TAXES A.Tower Statutory Income Rates Substantially all of Tower’s existing facilities and other capital investments made through 2012 have been granted approved enterprise status, as provided by the Law for the Encouragement of Capital Investment in Israel (“Investments Law”). Tower, as an Israeli industrial company located in Migdal Ha’emek, may elect the Preferred Enterprise regime to apply to it under the Investment Law. The election is irrevocable. Under the Preferred Enterprise Regime, Tower’s entire preferred income is subject to the tax rate of 7.5%. Any portion of Tower’s Israeli taxable income, that is not eligible for Preferred Enterprise benefits, if at all, shall be taxed at the regular corporate tax rate of 23%. B.Income Tax Provision 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. The Company’s income tax provision is comprised of the following: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Current tax expense: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Local </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,164 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,232 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,013 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,273 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Deferred tax expense (benefit): </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Local </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8,481 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,098 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,316 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (5,314 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (5,163 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (14,815 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Income tax expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,399 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,948 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,938 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Profit (loss) before taxes: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Domestic </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 100,145 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 103,432 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 142,831 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (11,457 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (12,411 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,514 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total profit before taxes </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 88,688 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 91,021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 139,317 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> <div> <div style="width:100%; clear:both;"> F - 47 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) C.Components of Deferred Tax Asset/Liability The following is a summary of the components of the deferred tax assets and liabilities reflected in the balance sheets as of the respective dates (*) <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax asset and liability - long-term: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Net operating loss carryforward </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 72,658 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 78,783 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Employees benefits and compensation </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,813 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,819 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Accruals and reserves </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,312 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,341 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Research and development </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,179 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,276 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,453 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,068 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 104,415 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 107,287 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Valuation allowance, see F below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (10,745 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (7,266 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 93,670 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 100,021 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax liabilities- long-term: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Depreciation and amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (76,136 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (77,966 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,018 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (931 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (77,154 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (78,897 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Presented in long term deferred tax assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 57,802 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Presented in long term deferred tax liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (41,286 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (45,238 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) Deferred tax assets and liabilities relating to Tower for the years 2020 and 2019 are computed based on the Israeli preferred enterprise tax rate of 7.5%. D.Unrecognized Tax Benefit A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,113 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 624 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (423 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,314 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 48 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) D.Unrecognized Tax Benefit (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 14,783 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 778 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (448 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,113 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,286 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 716 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,219 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 14,783 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div> E.Effective Income Tax The reconciliation of the statutory tax rate to the effective tax rate is as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Tax expense computed at statutory rates, see (*) below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,398 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,935 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 32,044 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Effect of different tax rates in different jurisdictions and Preferred Enterprise Benefit </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (15,046 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16,396 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (23,150 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in valuation allowance, see F below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,479 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,432 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,060 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Permanent differences and other, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,432 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,023 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (4,016 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Income tax expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,399 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,948 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,938 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) The tax expense was computed based on regular Israeli corporate tax rate of 23%. F.Net Operating Loss Carryforward As of December 31, 2020, Tower had net operating loss carryforward for tax purposes of approximately $1,000,000 which may be carried forward indefinitely. The future utilization of Tower US Holdings’ federal net operating loss carryforward to offset future federal taxable income is subject to an annual limitation as a result of ownership changes that have occurred. Additional limitations could apply if ownership changes occur in the future. TSNP has had two “change in ownership” events that limit the utilization of net operating loss carryforward. The first “change in ownership” event occurred in February 2007 upon Jazz Technologies’ acquisition of TSNP. The second “change in ownership” event occurred in September 2008, upon Tower’s acquisition of TSNP. TSNP concluded that the net operating loss limitation for the change in ownership which occurred in September 2008 will be an annual utilization of approximately $2,100 in its tax return. <div> <div style="width:100%; clear:both;"> F - 49 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) F.Net Operating Loss Carryforward (Cont.) As of December 31, 2020, Tower US Holdings had federal net operating loss carryforward of approximately $37,500, of which approximately $20,100 do not expire and is subject to a taxable income limitation of 80% due to the Act, and the remaining federal tax loss carryforwards of $17,400 will begin to expire in 2022, unless previously utilized. As of December 31, 2020, Tower US Holdings had California state net operating loss carryforward of approximately $8,800. The state tax loss carry forward will begin to expire in 2029, unless previously utilized. Tower US Holdings recorded a valuation allowance against the deferred tax asset balances for its federal and state net operating loss carryforward. As of December 31, 2020 and 2019, TPSCo had no net operating loss carryforward. G.Final Tax Assessments Tower possesses final tax assessments through the year 1998. In addition, the tax assessments for the years 1999-2015 are deemed final. Tower US Holdings files a consolidated tax return including TSNP and TSSA. Tower US Holdings and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple states. In general, Tower US Holdings is no longer subject to U.S. federal income tax examinations before 2017 and state and local income tax examinations before 2016. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward amount. On March 27, 2020, the CARES Act was signed. The CARES Act provided numerous tax provisions and other stimulus measures, including but not limited to temporary changes regarding the prior and future utilization of net operating losses. Under the provisions of the CARES Act, Tower US Holdings received a $2,100 income tax refund from carrying back federal net operating losses and a $1,100 refund of its minimum tax credits. TPSCo possesses final tax assessments through the year 2016.

0.075

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. The Company’s income tax provision is comprised of the following: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Current tax expense: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Local </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,164 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,232 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,013 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,273 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Deferred tax expense (benefit): </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Local </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 8,481 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7,098 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 9,316 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (5,314 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (5,163 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (14,815 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Income tax expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,399 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,948 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,938 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

2164000

2232000

1013000

9273000

8481000

7098000

9316000

-5314000

-5163000

-14815000

5399000

2948000

5938000

<div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Profit (loss) before taxes: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Domestic </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 100,145 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 103,432 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 142,831 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Foreign </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (11,457 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (12,411 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,514 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Total profit before taxes </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 88,688 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 91,021 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 139,317 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

100145000

103432000

142831000

-11457000

-12411000

-3514000

88688000

91021000

139317000

The following is a summary of the components of the deferred tax assets and liabilities reflected in the balance sheets as of the respective dates (*) <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="6" style="width:24%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> As of December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax asset and liability - long-term: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax assets: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Net operating loss carryforward </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 72,658 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 78,783 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Employees benefits and compensation </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,813 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,819 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Accruals and reserves </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,312 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,341 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Research and development </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 18,179 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 15,276 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 3,453 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> 5,068 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 104,415 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 107,287 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Valuation allowance, see F below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (10,745 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (7,266 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 93,670 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 100,021 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Deferred tax liabilities- long-term: </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Depreciation and amortization </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (76,136 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (77,966 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Others </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,018 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (931 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Deferred tax liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (77,154 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (78,897 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Presented in long term deferred tax assets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 57,802 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:74%; vertical-align:bottom; "> Presented in long term deferred tax liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (41,286 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> (45,238 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) Deferred tax assets and liabilities relating to Tower for the years 2020 and 2019 are computed based on the Israeli preferred enterprise tax rate of 7.5%.

72658000 78783000 6813000 4819000 3312000 3341000

18179000

15276000

3453000 5068000

104415000

107287000

10745000

7266000

93670000

100021000

76136000

77966000

1018000

931000

77154000

78897000

57802000

66362000

41286000

45238000

0.075

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,113 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 624 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (423 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,314 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div> <div style="width:100%; clear:both;"> F - 48 </div><hr style="border-top:1.5pt solid #000000;"/><div style="page-break-after:always;"/> </div> TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) D.Unrecognized Tax Benefit (Cont.) <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 14,783 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 778 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (448 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 15,113 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:83%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:15%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Balance at January 1, 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,286 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 716 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:83%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (1,219 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:83%; vertical-align:bottom; "> Balance at December 31, 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom:3px double #000000; "> 14,783 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody></table></div>

15113000

624000

-423000

15314000

14783000

778000

-448000

15113000

15286000

716000

-1219000

14783000

The reconciliation of the statutory tax rate to the effective tax rate is as follows: <div style="margin-left:80pt; "> <table cellpadding="0" style="border-spacing:0; " width="100%"> <thead> <tr class="odd" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> Year ended December 31, </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2019 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom:1.5pt solid #000000; vertical-align:bottom; "> 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Tax expense computed at statutory rates, see (*) below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,398 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 20,935 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 32,044 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Effect of different tax rates in different jurisdictions and Preferred Enterprise Benefit </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (15,046 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16,396 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (23,150 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Change in valuation allowance, see F below </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,479 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,432 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,060 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Permanent differences and other, net </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,432 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (3,023 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom:1.5pt solid #000000; "> (4,016 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color:#CCEEFF; "> <td style="width:61%; vertical-align:bottom; "> Income tax expense </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,399 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 2,948 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom:3px double #000000; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom:3px double #000000; "> 5,938 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) The tax expense was computed based on regular Israeli corporate tax rate of 23%.

20398000

20935000

32044000

-15046000

-16396000

-23150000

-3479000

-1432000

-1060000

-3432000

-3023000

-4016000

5399000

2948000

5938000

0.23

1000000

2100

37500

20100

17400

8800

2100

1100

Excluding accrued interest of $781. Excluding accrued interest of $765. 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. Original cost includes ROU assets under capital lease in the amount of $213,683 and $86,087 as of December 31, 2020 and 2019, respectively. The depreciation expense of such assets amounted to $13,421 and $9,941 for the years ended December 31, 2020 and 2019, respectively. Represents aggregated revenue to four customers that accounted for between 4% to 7% of total revenue during 2020, to four customers that accounted for between 5% and 9% of total revenue during 2019, and to four customers that accounted for between 5% and 9% of total revenue during 2018. Deferred tax assets and liabilities relating to Tower for the years 2020 and 2019 are computed based on the Israeli preferred enterprise tax rate of 7.5%.