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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A.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 the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. <div> F - 9 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.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. C.Cash and Cash Equivalents Cash and cash equivalents consist of cash, bank deposits and short-term investments with original maturities of three months or less. D.Short-Term Interest-Bearing Deposits Short-term deposits include bank deposits with original maturities greater than three months and less than one year. Such deposits presented at cost, including accrued interest, which approximates their fair value. E.Marketable securities The Company accounts for investments in 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 classified as "available-for-sale" are carried 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. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities with an unrealized loss that the Company intends to sell, or it is more likely than not that the Company will be required to sell before recovery of their amortized cost basis, the entire difference between amortized cost and fair value is recognized in earnings. For securities that do not meet these criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while declines in fair value related to other factors are recognized in OCI. <div> F - 10 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) E.Marketable securities (Cont.) If quoted prices for identical instruments are available in an active market, marketable securities are classified within Level 1 of the fair value hierarchy. If quoted prices for identical instruments in active markets are not available, fair values are estimated using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy. F.Trade Accounts Receivables - Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts, based on specific analysis of the account receivable’s aging, assessment of its related risk and ability of the customer to make the required payment.. As of December 31, 2019 and 2018, the allowance for doubtful accounts was $10,925 and $4,208, respectively, of which $10,000 and $3,000, respectively, relates to a customer located in the Far East region. G.Accounts Receivable 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. H.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. I.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”, 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 made through December 31, 2019. Any adjustments resulting from impairments and/or observable price changes are recorded as “other income (expense), net” in the consolidated statements of operations. J.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. <div> F - 11 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) J.Property and Equipment (cont.) 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: 112pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="80.1418439716312%"> <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 L below. Property and equipment includes also assets under capital leases and are depreciated according to their applicable useful life. K.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 test. Impairment charges on intangibles or goodwill, if needed, are determined based on the policy outlined in L below. L.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 it. 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”. Impairment of Goodwill The Company tests goodwill for impairment by performing a qualitative assessment process, or using a two-step quantitative assessment process. If the Company chooses to perform a qualitative assessment process and determines it is more likely than not (that is, a likelihood of more than 50 percent) that the carrying value of the net assets is more than the fair value of the reporting unit, the two-step quantitative assessment process is then performed; otherwise, no further testing is required. The Company may elect not to perform the qualitative assessment process and, instead, proceed directly to the two-step quantitative assessment process. <div> F - 12 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) L.Impairment of Assets (cont.) Impairment of Goodwill (Cont.) The first step identifies potential impairment by comparing the fair value of a reporting unit with its carrying amount, including the goodwill. The fair value of the reporting units is determined using a discounted cash flow analysis (income approach). This fair value approach requires significant management judgment and estimations. The determination of fair value using a discounted cash flow analysis requires the use of key judgments, estimates and assumptions including revenue growth rates, projected operating margins, changes in working capital, terminal values, and discount rates. If the fair value exceeds the carrying amount of a reporting unit, goodwill is not considered impaired and the second step of the test is unnecessary. If the carrying amount exceeds the fair value of a reporting unit, the second step measures the impairment loss, if any. The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The implied fair value of the reporting unit’s goodwill is calculated by creating a hypothetical balance sheet as if the reporting unit had just been acquired. This balance sheet contains all assets and liabilities recorded at fair value (including any intangible assets that may not have any corresponding carrying value in the balance sheet). The implied value of the reporting unit’s goodwill is calculated by subtracting the fair value of the net assets from the fair value of the reporting unit. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. M.Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases” (“Topic 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. Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs (“ASC 842”). On January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method. Results for the reporting period beginning January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with historical accounting under ASC 840, “Leases”. Due to the adoption of ASC 842, as of December 31, 2019, operating lease ROU in the amount of approximately $18,000 are recorded as assets and as operating lease liabilities. The aforementioned did not have any impact on the results of operations or cash flows. <div> F - 13 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) M.Leases (cont.) For all leases that commenced before the effective date of ASC 842, the permitted “practical expedients” as stipulated in the ASC was elected and accordingly, the Company did not reassess: (1) whether any expired or existing contracts contain leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The determination if an arrangement is a lease is to be made at inception of a lease contract. ROU assets represent Company’s right to use an underlying asset for the lease term and lease liabilities represent 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, incremental borrowing rate is used based on the information available at 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. Certain lease agreements require payments for lease and non-lease components and the Company elected to account for these as a single lease component related to other operating facilities. For additional information, please see Notes 11D and 11E. N.Revenue Recognition ASC Topic 606 “Revenue from Contracts with Customers” (“Topic 606”), supersedes the previous revenue recognition guidance and industry-specific guidance under ASC Topic 605 “Revenue Recognition”. Topic 606 requires an entity to recognize revenue when it transfers the control of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. Under the modified retrospective method, prior period financial positions and results are not adjusted. There was no transition adjustment to the company’s retained earnings upon adoption. 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 or upon delivery 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. Sales revenue is recognized for the amount of consideration that the Company expects to be entitled to in exchange for its products. 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. <div> F - 14 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) N.Revenue Recognition (cont.) 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 is over time when customer receives the services. O.Research and Development Research and development costs are charged to operations as incurred. Amounts received or receivable from the government of Israel and others, 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. P.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 computed based on the tax rates anticipated (under applicable law as of the balance sheet date) to be in effect 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 in a classified statement of financial position. 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 projected future taxable income. In circumstances where there is sufficient negative evidence indicating that the Company's deferred tax assets are not more-likely-than-not realizable, the Company establishes a valuation allowance, see Note 19. <div> F - 15 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) P.Income Taxes (cont.) 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. Q.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. R.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. S.Functional Currency and Exchange Rate Income (Loss) The currency of the primary economic environment in which Tower, TJT and Jazz 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 has been translated using the average exchange rate for the reported period. The resulting translation adjustments are charged or credited to OCI. <div> F - 16 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) T.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 accounted for under the fair value method. Accordingly, stock-based compensation granted to employees and directors is measured at the grant date, based on the fair value of the grant. 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. U.Fair value of Financial Instruments and Fair Value Measurements 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 of cash, bank deposits, marketable securities, account receivable and payables, accrued liabilities, loans and leases 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. <div> F - 17 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) V.Derivatives and hedging Derivative instruments are recognized as either assets or liabilities and are measured 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 fair value hedges, the gains (losses) are recognized in earnings in the periods of change together with the offsetting losses (gains) on the hedged items attributed to the risk being hedged. 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. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in the same line of the item economically hedged. W.Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes” (“Topic 740”). The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. The guidance will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement” Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU removes certain disclosure requirements regarding the amounts and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of transfers between the levels. This ASU have no effect on the Company’s disclosures or on the financial position, results of operations and cash flows. In June 2018, the FASB issued ASU No. 2018-07 “Compensation - Stock Compensation” (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include accounting for share-based payments for acquiring goods and services from non-employees except for specific guidance on assumptions used in an option pricing model and expense attribution. Topic 718 is effective for periods beginning after December 15, 2018, with early adoption permitted. The Company does not have any stock-based instruments outstanding to non-employees. Accordingly, the adoption of this ASU has no effect on the Company’s financial position, results of operations or cash flows. <div> F - 18 <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, 2019 (dollars in thousands, except per share data) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) W.Recently Issued Accounting Pronouncements (Cont.) In January 2017, the FASB issued ASU 2017-04 “Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment” (“Topic 350”), which clarified its guidance to simplify the measurement of goodwill by eliminating the Step 2 impairment test. The new guidance requires companies to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendment will be effective beginning in its first quarter of fiscal year 2020. The amendment is required to be adopted prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 “Financial Instruments Credit Losses”. This update requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The update is effective January 1, 2020, and for interim periods within that year. Early adoption is permitted only after January 1, 2019. The Company has previously incurred an immaterial amount of bad debt and expects no material impact on its consolidated financial statements and disclosures resulting from adopting this guidance.

10925000

4208000

10000000

3000000

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: 112pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="80.1418439716312%"> <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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 90,605 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 72,144 </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; "> 91,537 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 92,047 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 10,114 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,587 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 192,256 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 170,778 </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 $649 and $1,206 as of December 31, 2019 and 2018, respectively.

Inventories consist of the following: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 90,605 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 72,144 </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; "> 91,537 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 92,047 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 10,114 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,587 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 192,256 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 170,778 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

90605000

72144000

91537000

92047000

10114000

6587000

192256000

170778000

649000

1206000

NOTE 4 - OTHER CURRENT ASSETS Other current assets consist of the following: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 8,156 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,997 </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; "> 8,265 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 14,170 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:74%; vertical-align:bottom; "> Accrued interest on bank deposits and other receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,598 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,585 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,019 </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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,752 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 8,156 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,997 </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; "> 8,265 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 14,170 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:74%; vertical-align:bottom; "> Accrued interest on bank deposits and other receivables </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,598 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,585 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,019 </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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,752 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

8156000

3997000

8265000

14170000

5598000

4585000

22019000

22752000

NOTE 5 - LONG-TERM INVESTMENTS Long-term investments consist of the following: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 11,860 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 13,615 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Long-term bank deposit </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 9,830 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 40,085 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 35,945 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 11,860 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 13,615 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Long-term bank deposit </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 9,830 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 40,085 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 35,945 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

11860000 13615000 12500000 12500000

15725000

9830000

40085000

35945000

NOTE 6 - PROPERTY AND EQUIPMENT, NET Composition: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 363,133 </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; "> 347,798 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,684,980 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,482,609 </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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,048,113 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,830,407 </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; "> (239,241 </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; "> (224,796 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (2,126,933 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,948,377 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,366,174 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,173,173 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 681,939 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 657,234 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Original cost of machinery and equipment includes ROU assets under capital lease in the amount of $86,087 and $54,873 as of December 31, 2019 and 2018, respectively. The depreciation expense of such assets amounted to $9,941 and $2,102 for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the original cost of land, buildings, machinery and equipment was reflected net of investment grants in the aggregate amount of $285,615 and $285,636, respectively.

Composition: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 363,133 </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; "> 347,798 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,684,980 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,482,609 </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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,048,113 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 2,830,407 </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; "> (239,241 </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; "> (224,796 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (2,126,933 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,948,377 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,366,174 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,173,173 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 681,939 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 657,234 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Original cost of machinery and equipment includes ROU assets under capital lease in the amount of $86,087 and $54,873 as of December 31, 2019 and 2018, respectively. The depreciation expense of such assets amounted to $9,941 and $2,102 for the years ended December 31, 2019 and 2018, respectively.

363133000

347798000

2684980000

2482609000

3048113000

2830407000

239241000

224796000

2126933000

1948377000

2366174000

2173173000

681939000

657234000

86087000

54873000

9941000

2102000

285615000 285636000

NOTE 7 - INTANGIBLE ASSETS, NET Intangible assets consist of the following as of December 31, 2019: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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, 2018: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 110,835 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (108,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,947 </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; "> 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; "> (22,953 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10,547 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 7,671 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,547 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 124 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,783 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 817 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 154,606 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (141,171 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 13,435 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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, 2018: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Net </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 110,835 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (108,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,947 </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; "> 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; "> (22,953 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 10,547 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 7,671 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (7,547 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 124 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,783 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 817 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 154,606 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (141,171 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 13,435 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

P4Y

P5Y

P9Y

111108000

110730000

378000

P19Y

33500000

24241000

9259000

P9Y

7702000

P15Y

2600000

1956000

644000

154910000

144629000

10281000

P4Y

P5Y

P9Y

110835000

108888000

1947000

P19Y

33500000

22953000

10547000

P9Y

7671000

7547000

124000

P15Y

2600000

1783000

817000

154606000

141171000

13435000

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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 73,460 </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; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 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; "> 3,175 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,296 </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; "> 12,625 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,722 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,057 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,926 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 105,047 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 88,404 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 66,362 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 73,460 </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; "> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 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; "> 3,175 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,296 </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; "> 12,625 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,722 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,057 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,926 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 105,047 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 88,404 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

66362000

73460000

17828000

3175000

3296000

12625000 6722000

5057000

4926000

105047000

88404000

NOTE 9 - OTHER CURRENT LIABILITIES Other current liabilities consist of the following: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 282 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,096 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Interest payable </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 986 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,962 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,035 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 7,301 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 17,117 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 282 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,096 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Interest payable </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 986 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,962 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 4,035 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 7,301 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 17,117 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

282000

12096000

1057000

986000

5962000

4035000

7301000

17117000

A.Composition by Repayment Schedule: <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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="22" style="width:70%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of December 31, 2019 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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:10%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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:28%; vertical-align:bottom; "> Debentures Series G (see B below) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2.79 </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; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 38,690 </td> <td 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; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 38,690 </td> <td 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; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 38,690 </td> <td 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; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 19,347 </td> <td 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; "> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 135,417 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:28%; vertical-align:bottom; "> <p style="font-family: Times New Roman, Times, serif; font-size:10pt; text-align:justify; margin-top:0pt; padding-left:0pt; text-indent: -8pt !important; padding-left: 8pt !important; margin-bottom: 0pt;">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; "> </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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (3,134 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:28%; 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; "> </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;"> $ </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 132,283 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 60pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:13%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="26" style="width:85%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of December 31, 2018 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:13%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:10%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:13%; vertical-align:bottom; "> <p style="font-family: Times New Roman, Times, serif; font-size:10pt; text-align:justify; margin-top:0pt; padding-left:0pt; text-indent: -8pt !important; padding-left: 8pt !important; margin-bottom: 0pt;">Debentures Series G (see B below) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2.79 </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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 35,676 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 35,676 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 35,676 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 17,839 </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 124,867 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:13%; 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: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> <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; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (4,697 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:13%; 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: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> <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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 120,170 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

0.0279

38690000

19347000

135417000

3134000

132283000

0.0279

35676000

17839000

124867000

4697000

120170000

115000000

0.0279

468000000

135000000

125000000

16000000

5000000

101365000

100118000

60277000

47195000

17828000

28201000 10814000

151269000

136499000

B.Composition by Repayment Schedule of Loans: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of December 31, 2019 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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:9%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2024 and on </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-width:1.5pt; border-bottom-style:solid; 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; "> In JPY </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:8%; 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,526 </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,526 </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,526 </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 33,787 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 101,365 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td colspan="4" style="width:36%; vertical-align:bottom; "> Total outstanding principal </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 22,526 </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 22,526 </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 22,526 </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 33,787 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 101,365 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of December 31, 2018 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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:9%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:9%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2023 and on </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-width:1.5pt; border-bottom-style:solid; 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; "> In JPY </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:8%; 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,248 </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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,248 </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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 55,622 </td> <td 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; "> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 100,118 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td colspan="4" style="width:36%; vertical-align:bottom; "> Total outstanding principal </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 22,248 </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: 3px double;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 22,248 </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: 3px double;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 55,622 </td> <td 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;"> $ </td> <td style="width:8%; vertical-align:bottom; border-bottom: 3px double;"> 100,118 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

1.95

22526000

33787000

101365000

22526000

33787000

101365000

1.95

22248000

55622000

100118000

22248000

55622000

100118000

11000000000

100000000

0.0195

101000000

0.0195

60277000

47195000

21070000

10814000

The following presents the maturity of capital lease liabilities as of December 31, 2019: <div style="margin-left: 100pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="30.141843971631204%"> <thead> <tr class="odd" style=""> <td style="width:68%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Fiscal Year </td> <td style="width:3%; vertical-align:bottom; "> </td> <td colspan="2" style="width:28%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:68%; vertical-align:bottom; "> 2020 </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; "> $ </td> <td style="width:25%; vertical-align:bottom; "> 21,070 </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> 2021 </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:25%; vertical-align:bottom; "> 16,332 </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:68%; vertical-align:bottom; "> 2022 </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:25%; vertical-align:bottom; "> 14,386 </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> 2023 </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:25%; vertical-align:bottom; "> 7,684 </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:68%; vertical-align:bottom; "> 2024 </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:25%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 805 </td> <td style="width:3%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:68%; vertical-align:bottom; "> Total </td> <td style="width:3%; vertical-align:bottom; "> </td> <td style="width:3%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:25%; vertical-align:bottom; border-bottom: 3px double;"> 60,277 </td> <td style="width:332%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

21070000

16332000

14386000

7684000

805000

60277000

8045000

8773000

8809000

8113000

The following presents the composition of operating lease: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:40%; vertical-align:bottom; "> </td> <td style="width:47%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Classification in Consolidated Balance Sheets </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:40%; vertical-align:bottom; "> Right of use - assets under operating leases </td> <td style="width:47%; 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 17,828 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:40%; vertical-align:bottom; "> Lease liabilities: </td> <td style="width:47%; vertical-align:bottom; "> </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:40%; vertical-align:bottom; "> Current operating leases liabilities </td> <td style="width:47%; 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; "> 7,131 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:40%; vertical-align:bottom; "> Long-term operating lease liabilities </td> <td style="width:47%; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 10,697 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:40%; vertical-align:bottom; "> Total operating lease liabilities </td> <td style="width:47%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 17,828 </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:47%; vertical-align:bottom; "> </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:40%; vertical-align:bottom; "> Weighted average remaining lease term (years) </td> <td style="width:47%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 4.9 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:40%; vertical-align:bottom; "> Weighted average discount rate </td> <td style="width:47%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 1.95 </td> <td style="width:1%; vertical-align:bottom; "> % </td></tr></tbody> </table></div>

17828000

7131000

10697000

17828000

P4Y10M24D

0.0195

The following presents the maturity of operating lease liabilities as of December 31, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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; "> 2020 </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: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; "> 6,304 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 2,064 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 645 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 645 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 1,667 </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; "> 18,456 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 17,828 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

7131000

6304000

2064000

645000

1667000

18456000

628000

17828000

P5Y

70000000

P5Y

70000000

0.000

0.005

0.0125

0.0175

70000000

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 protect against the volatility of future cash flows caused by changes in foreign exchange rates on NIS denominated expenses. <div> F - 26 <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, 2019 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) A.Non-Designated Exchange Rate Transactions (Cont.) 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. As of December 31, 2018, the fair value amounts of such exchange rate agreements were $379 in a liability position, presented in current liabilities with a face value of $92,000. Changes in the fair values of such derivatives are presented in cost of revenues in the statements of operations. As the functional currency of TPSCo is the JPY and part of TPSCo revenues are denominated in USD, TPSCo 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 USD denominated amounts. As of December 31, 2019 and 2018, the fair value amounts of such exchange rate agreements were $318 and $16, respectively, in a liability position, presented in other current liabilities with a face value of $36,000 and $42,000, 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, derivative, trade receivables and government and other receivables. The Company's cash, deposits, marketable securities and derivative 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 doubtful accounts is determined with respect to those amounts the collection of which is determined to be doubtful. The Company performs ongoing credit evaluations of its customers. 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, 2019 and 2018. The fair value of debentures, based on quoted market prices as of December 31, 2019 and 2018, was approximately $140,000 and $127,000, respectively, compared to carrying amounts of approximately $132,000 and $120,000, for the above dates, respectively. <div> F - 27 <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, 2019 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) D.Cash Flow Hedge Gains (Losses) The Company entered into 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 Series G Debentures denomination in NIS. 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, 2018, the fair value of the swap was $4,951 in an asset, net position, of which $1,771 was presented in other current liabilities and $6,722 was presented in long-term assets. As of December 31, 2019 and December 31, 2018, the effective portions of $1,504 and $1,329, respectively, were recorded in OCI, of which a loss of $719 is expected to be reclassified into earnings during the twelve months ending December 31, 2020. For the years ended December 31, 2019 and December 31, 2018, the hedging effect on the Company’s results of operations was $8,816 income and $11,787 loss, respectively, and was recognized as financing expense, net, to offset the effect of the rate difference related to 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. Level 1 Measurements Assets held for sale - 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 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. <div> F - 28 <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, 2019 (dollars in thousands, except per share data) NOTE 12 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Cont.) E.Fair Value Measurements (Cont.) Level 3 Measurements For cross currency swap measured under level 2 - the Company uses the market approach using quotations from banks and other public information. Equity Securities without Readily Determinable Fair Values - Investments in privately-held companies are measured using the measurement alternatives, see Note 2I above. The Company reviews these investments for impairment and observable price changes on a quarterly basis, and adjusts the carrying value accordingly. For the year ended December 31, 2019, the Company recorded an increase of $5,270 in the value of such investments, and for the year ended December 31, 2018, the Company recorded a decrease of $5,000 in the value of such investments, presented in other income (expense), net in the statements of operations. The fair value of these investments represents a Level 3 valuation as the assumptions used in valuing these investments are not directly or indirectly observable. Recurring fair value measurements using the indicated inputs: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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 - liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 15,725 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> December 31, 2018 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 4,951 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 4,951 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 9,830 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 9,830 </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; "> 135,227 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 135,227 </td> <td style="width:1%; vertical-align:bottom; "> </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 - liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (395 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (395 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 149,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 4,556 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 9,830 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 29 <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, 2019 (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 Short-term and long-term deposits and marketable securities as of December 31, 2019 included short term deposits in the amount of $215,609, marketable securities in the amount of $176,070 and a long-term bank deposit in the amount of $12,500; as of December 31, 2018, short-term and long-term deposits and marketable securities included short term deposits in the amount of $120,079, marketable securities in the amount of $135,850 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, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> U.S 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; "> 1,977 </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; "> 26 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 2,003 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:48%; vertical-align:bottom; "> Non-U.S 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; "> 992 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,003 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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="odd" style="background-color: #cceeff; "> <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="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 253 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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 after one year through five years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 135,972 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 137,487 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 30 <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, 2019 (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, 2018: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 111,639 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </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; "> (2,029 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 109,639 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> U.S 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; "> 5,444 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 5,465 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:48%; vertical-align:bottom; "> Non-U.S 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; "> 2,456 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (33 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,423 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 2,248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (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:10%; vertical-align:bottom; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 15,225 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 137,260 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,083 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $623. The scheduled maturities of available-for-sale marketable securities as of December 31, 2018, were as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 16,686 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Due after one year through five years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 120,574 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 118,566 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 137,260 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </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, 2019 and December 31, 2018, were as indicated in the following tables: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or greater </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Non-U.S 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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> <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:22%; 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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> <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:22%; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> F - 31 <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, 2019 (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.) <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> December 31, 2018 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or greater </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 19,716 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (140 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 79,609 </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; "> (1,889 </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:10%; vertical-align:bottom; "> 99,325 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (2,029 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Non-U.S 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; "> 963 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 1,460 </td> <td style="width:1%; vertical-align:bottom; "> </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,423 </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:10%; vertical-align:bottom; "> (33 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:22%; 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; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </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 </td> <td style="width:1%; vertical-align:bottom; "> ) </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; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </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 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,914 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (153 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 81,309 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,930 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 104,223 </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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,083 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody> </table></div>

167000

48000000

379000

92000000

318000

16000

36000000

42000000

140000000

127000000

132000000

120000000

15642000 3017000 12625000 4951000 1771000 6722000

1504000

1329000

-719000

8816000

11787000

5270000

5000000

Recurring fair value measurements using the indicated inputs: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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 - liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 15,725 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> December 31, 2018 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 4,951 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 4,951 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 9,830 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 9,830 </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; "> 135,227 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 135,227 </td> <td style="width:1%; vertical-align:bottom; "> </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 - liability position </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (395 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (395 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 149,613 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 4,556 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 9,830 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

15642000 15642000 15725000 15725000

175305000

151000

206521000

175305000

15491000

15725000

4951000 4951000 9830000 9830000

135227000

395000

149613000

135227000

4556000

9830000

215609000

176070000

120079000

135850000

12500000 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, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> U.S 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; "> 1,977 </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; "> 26 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 2,003 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:48%; vertical-align:bottom; "> Non-U.S 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; "> 992 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 1,003 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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="odd" style="background-color: #cceeff; "> <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="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 253 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 175,305 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $765. 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, 2018: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 111,639 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </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; "> (2,029 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 109,639 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:48%; vertical-align:bottom; "> U.S 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; "> 5,444 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 5,465 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:48%; vertical-align:bottom; "> Non-U.S 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; "> 2,456 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (33 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,423 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 2,248 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (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:10%; vertical-align:bottom; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 15,225 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 137,260 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,083 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> * Excluding accrued interest of $623.

154167000

1273000

214000

155226000

1977000

26000

2003000

992000

11000

1003000

1208000

21000

1229000

15225000

366000

15591000

248000

5000

253000

173817000

1702000

214000

175305000

765000

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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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 after one year through five years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 135,972 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 137,487 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 175,305 </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, 2018, were as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 16,686 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 16,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Due after one year through five years </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 120,574 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 118,566 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 137,260 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 135,227 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

37845000

37818000

135972000

137487000

173817000

175305000

111639000

29000

2029000

109639000

5444000

21000

5465000

2456000

33000

2423000

2248000

13000

2235000

15225000

248000

8000

240000

137260000

50000

2083000

135227000

623000

16686000

16661000

120574000

118566000

137260000

135227000

Investments with continuous unrealized losses for less than twelve months and twelve months or more and their related fair values as of December 31, 2019 and December 31, 2018, were as indicated in the following tables: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or greater </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Non-U.S 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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> <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:22%; 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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> <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:22%; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (214 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> F - 31 <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, 2019 (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.) <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> December 31, 2018 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Investments with continuous unrealized losses for twelve months or greater </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 19,716 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (140 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 79,609 </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; "> (1,889 </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:10%; vertical-align:bottom; "> 99,325 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (2,029 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; vertical-align:bottom; "> Non-U.S 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; "> 963 </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 1,460 </td> <td style="width:1%; vertical-align:bottom; "> </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,423 </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:10%; vertical-align:bottom; "> (33 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:22%; 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; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </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 </td> <td style="width:1%; vertical-align:bottom; "> ) </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; "> 2,235 </td> <td style="width:1%; vertical-align:bottom; "> </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 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:22%; 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 240 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (8 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,914 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (153 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 81,309 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,930 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 104,223 </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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (2,083 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody> </table></div>

8562000

56000

23022000

158000

31584000

214000

8562000

56000

23022000

158000

31584000

214000

19716000

140000

79609000

1889000

99325000

2029000

963000

1460000

33000

2423000

33000

2235000

13000

2235000

13000

240000

8000

240000

8000

22914000

153000

81309000

1930000

104223000

2083000

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 $9,314 and $11,638, respectively, as of December 31, 2019. 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 $5,597, $5,158 and $5,059 for 2019, 2018 and 2017, 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% from 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 2019, 2018 and 2017 amounted to $6,572, $6,700 and $6,706, respectively. <div> F - 32 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans The following information provides the changes in 2019, 2018 and 2017 periodic expenses and benefit obligations due to the bargaining agreement signed between Jazz 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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> 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> <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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (262 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (361 </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;"> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (283 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 317 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 262 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 361 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (114 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 678 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 395 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <tbody> <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; "> 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> <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> </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; "> 6.90%/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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7.20%/10.00 </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; "> 6.90%/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> <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; "> 2027/2027 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2025/2025 </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, 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2017 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 33 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) Impact of one-percentage point change in assumed health care cost trend rates as of December 31, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Increase </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Decrease </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; "> Effect on service cost and 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; "> 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; "> (2 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Effect on post-retirement benefit obligation </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> <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></tr></tbody> </table></div> 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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 1,628 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,550 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> 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> <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> </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (376 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 317 </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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; border-bottom: 1.5pt solid; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> 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; "> 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; "> 9 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (9 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,936 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> F - 34 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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="even" style=""> <td style="width:61%; 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; "> (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; "> (65 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (58 </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 liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,563 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,878 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; "> 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; "> 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="even" style=""> <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="odd" style="background-color: #cceeff; "> <td style="width:61%; 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; "> 6.20%/(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="even" style=""> <td style="width:61%; 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; "> 6.20%/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; "> 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; "> 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="even" style=""> <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: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" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:87%; vertical-align:bottom; "> 2020 </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> </tr> <tr class="even" style=""> <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; "> 54 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 54 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 55 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 61 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2025-2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 365 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> Jazz Pension Plan Jazz 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. Jazz uses a December 31 measurement date. Jazz’s funding policy is to make contributions that satisfy at least the minimum required contribution for IRS qualified plans. <div> F - 35 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Jazz Pension Plan (Cont.) The components of the change in benefit obligation, the change in plan assets and funded status for Jazz’s pension plan are as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 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; "> 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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1,236 </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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 55 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (675 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (347 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (1,303 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (55 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (234 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,361 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,708 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4.30 </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; "> 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> <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 style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> Estimated amounts that will be amortized from accumulated other comprehensive income in the next fiscal year ending : </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 </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="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Net actuarial loss </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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 36 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Jazz Pension Plan (Cont.) The components of the change in benefit obligation, change in plan assets and funded status for Jazz’s pension plan are as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 19,672 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 831 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (548 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,792 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 674 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 20,629 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 19,871 </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; "> 2,544 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,212 </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; "> 175 </td> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> (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> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (607 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (548 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,670 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 23,235 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 3,691 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 2,606 </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; "> 2,546 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,606 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 3,691 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 2,606 </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; "> 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="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" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:87%; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 859 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 932 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 1,017 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 1,085 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 1,142 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2025-2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6,144 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:87%; vertical-align:bottom; "> </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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 37 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Jazz Pension Plan (Cont.) 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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </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, 2018: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,670 </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: 1.5pt solid; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,670 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> Jazz’s pension plan weighted average asset allocations on December 31, 2019, by asset category are as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Asset Category </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Target allocation 2020 </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; "> 23 </td> <td style="width:1%; vertical-align:bottom; "> % </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; "> 77 </td> <td style="width:1%; vertical-align:bottom; "> % </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> Jazz’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 Jazz 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.

9314000 11638000

5597000

5158000

5059000

0.09

0.01

6572000

6700000

6706000

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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> 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> <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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (262 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (361 </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;"> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (283 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 317 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 262 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 361 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (114 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 678 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 395 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <tbody> <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; "> 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> <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> </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; "> 6.90%/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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 7.20%/10.00 </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; "> 6.90%/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> <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; "> 2027/2027 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2025/2025 </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, 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; vertical-align:bottom; "> December 31, 2017 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

7000

10000

9000

72000

73000

69000

298000

262000

361000

-219000

-179000

-283000

1000

376000

-317000

298000 262000 361000

297000

-114000

678000

78000

-293000

395000

0.0450

0.0380

0.0450

0.0690 0.1310 0.0830 0.1110 0.0720 0.1000 0.0690 0.0790 0.0450 0.0450 0.0450 0.0450 0.0450 0.0450 2029 2029 2027 2027 2025 2025

Impact of one-percentage point change in assumed health care cost trend rates as of December 31, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Increase </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Decrease </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; "> Effect on service cost and 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; "> 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; "> (2 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Effect on post-retirement benefit obligation </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> <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></tr></tbody> </table></div>

2000

33000

25000

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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 1,628 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 1,550 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> 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> <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> </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (376 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 317 </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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; border-bottom: 1.5pt solid; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> 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; "> 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; "> 9 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (9 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (1,936 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> <div> F - 34 <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, 2019 (dollars in thousands, except per share data) NOTE 13 - EMPLOYEE RELATED LIABILITIES (Cont.) B.Jazz Employee Benefit Plans (Cont.) Post-Retirement Medical Plan (Cont.) <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> As of 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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="even" style=""> <td style="width:61%; 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; "> (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; "> (65 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> (58 </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 liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,563 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,878 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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; "> 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; "> 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="even" style=""> <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="odd" style="background-color: #cceeff; "> <td style="width:61%; 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; "> 6.20%/(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="even" style=""> <td style="width:61%; 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; "> 6.20%/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; "> 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; "> 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="even" style=""> <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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

-1628000

-1936000

1550000

7000

10000

72000

73000

69000

17000

15000

9000

1000

376000

-317000

1689000

1628000

1936000

16000

15000

9000

16000

15000

9000

-1689000

-1628000

-1936000

50000

65000

58000

1639000

1563000

1878000

-1689000

-1628000

-1936000

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

0.0830

0.1110

0.0450

2029

2027

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" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:87%; vertical-align:bottom; "> 2020 </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> </tr> <tr class="even" style=""> <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; "> 54 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 54 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 55 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 61 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2025-2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 365 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

50000

54000

55000

61000

365000

817000

749000

831000

930000

1427000

1236000

100000

-3000

-55000

-10000

-675000

-347000

-1158000

231000

1303000

-3000 -3000 -3000 -55000

1155000

-234000

-1361000

1145000

-909000

-1708000

0.0440

0.0370

0.0430

0.0420

0.0620

<div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> Estimated amounts that will be amortized from accumulated other comprehensive income in the next fiscal year ending : </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 </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="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Net actuarial loss </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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

3000

27000

The components of the change in benefit obligation, change in plan assets and funded status for Jazz’s pension plan are as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 19,672 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 831 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (548 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,792 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 674 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 20,629 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 19,871 </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; "> 2,544 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 3,212 </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; "> 175 </td> <td style="width:1%; vertical-align:bottom; "> </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> </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; "> (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> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (607 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (548 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,670 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 23,235 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 3,691 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 2,606 </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; "> 2,546 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 2,606 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 3,691 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 2,606 </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; "> 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="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>

18979000

20629000

19672000

817000

749000

831000

688000

607000

548000

-2800000

1792000

-674000

21908000

18979000

20629000

19871000

2544000

-133000

3212000

175000

700000

-71000

688000

607000

548000

24454000

22670000

23235000

2546000

3691000

2606000

2546000

3691000

2606000

2546000

3691000

2606000

0.0320

0.0440

0.0370

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" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:87%; vertical-align:bottom; "> Fiscal Year </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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:87%; vertical-align:bottom; "> 2020 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 859 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 932 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 1,017 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <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; "> 1,085 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <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; "> 1,142 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:87%; vertical-align:bottom; "> 2025-2029 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 6,144 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:87%; vertical-align:bottom; "> </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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

859000

932000

1017000

1085000

1142000

6144000

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" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </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, 2018: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </td> <td 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; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 22,670 </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: 1.5pt solid; "> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> -- </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 22,670 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> -- </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

24454000

22670000

Jazz’s pension plan weighted average asset allocations on December 31, 2019, by asset category are as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:74%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Asset Category </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="2" style="width:11%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Target allocation 2020 </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; "> 23 </td> <td style="width:1%; vertical-align:bottom; "> % </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; "> 77 </td> <td style="width:1%; vertical-align:bottom; "> % </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>

0.23

0.20

0.77

0.80

27000000

18000000

NOTE 15 - SHAREHOLDERS’ EQUITY A.Description of Ordinary Shares As of December 31, 2019, Tower had 150 million authorized ordinary shares, par value NIS 15.00 each, of which approximately 106.8 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> F - 40 <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, 2019 (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 particular 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 financial 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, 2019 and December 31, 2018, respectively, there were approximately 25 thousand and 26 thousand, respectively, options 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 include also third party service providers (“2013 Plan”). Options granted under the 2013 Plan bear an exercise price, which equals an average of the 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 2019 and 2018, a total of 1.16 million and 0.98 million, respectively, of RSUs, 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 in consideration compliance with performance criteria, if any. 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 of 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 of 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 (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 end of the first anniversary of the date of grant and 50% on the second anniversary of the date of grant. <div> F - 41 <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, 2019 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) B.Equity Incentive Plans (Cont.) (2)Tower’s 2013 Share Incentive Plan (the "2013 Plan") (Cont.) 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 of 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 of 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 (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 end of the first anniversary of the date of grant and 50% on the second anniversary of the date of grant. In June 2017, the Company’s shareholders approved the following equity awards to the Company’s CEO, chairman of the Board and board directors under the 2013 Plan: (i) 85 thousand time vested RSUs and 97 thousand performance-based RSUs to the CEO, for a total compensation value of $4,500; (ii) 12 thousand time vested RSUs to the chairman of the board of directors for a total compensation value of $300; and (iii) 3 thousand time vested RSUs to each of the members of the board of directors (other than to the Chairman and the CEO), for a total compensation value of $600. As of December 31, 2019, approximately 318 thousand options and approximately 2.0 million RSUs were outstanding under the 2013 Plan. As of December 31, 2018, approximately 483 thousand options and approximately 1.6 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. <div> F - 42 <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, 2019 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) B.Equity Incentive Plans (Cont.) (3)Summary of the Status of all the Company’s Employees’ and Directors’ Share Incentive Plans i. Share Options awards: <div> <table cellpadding="0" style="border-collapse: collapse;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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2,278,089 </td> <td style="width: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; "> 9.92 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (1,611,489 </td> <td style="width: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; "> 9.27 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (77,292 </td> <td style="width: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; "> 25.89 </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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (9,123 </td> <td style="width: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; "> 8.06 </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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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="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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 459,662 </td> <td style="width: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; "> 8.51 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> ii. RSU awards: <div> <table cellpadding="0" style="border-collapse: collapse;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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,009,184 </td> <td style="width: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; "> 14.62 </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; "> 1,159,881 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 818,856 </td> <td style="width: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; "> 24.88 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (553,241 </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:9%; vertical-align:bottom; "> 14.71 </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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (28,910 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 16.42 </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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 43 <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, 2019 (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, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td colspan="14" style="width:66%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 4.42 - 17.25 </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:13%; 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:14%; vertical-align:bottom; "> 1.78 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; 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:13%; 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:14%; vertical-align:bottom; "> 8.79 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 26,031 </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; "> 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 7,202 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,996 </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; "> 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,138 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,084 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,555 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,987 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,010 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 12,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 11,649 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> <div> F - 44 <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, 2019 (dollars in thousands, except per share data) NOTE 15 - SHAREHOLDERS’ EQUITY (Cont.) C.Israeli Bank’s Capital Notes During the first quarter of 2019, approximately 1.2 million ordinary shares were issued following the conversion of the last remaining capital notes. As a result, as of December 31, 2019 no capital notes were outstanding. D.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. E.Dividend Restriction Tower is subject to limitations under Series G Debentures indenture, which enables distribution of dividends subject to satisfying certain financial ratios.

25000

26000

1160000

980000

P3Y

129000

P3Y

0.33

3900000

20000

300000

P3Y

0.33

P3Y

5000

600000

P2Y

0.50

107000

72000

P3Y

0.33

3900000

0.65

0.25

1100000

14000

300000

P3Y

0.33

P3Y

3000

600000

P2Y

0.50

85000

97000

4500000

12000

300000

3000

600000

318000

2000000.0

483000

1600000

i. Share Options awards: <div> <table cellpadding="0" style="border-collapse: collapse;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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 2,278,089 </td> <td style="width: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; "> 9.92 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (1,611,489 </td> <td style="width: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; "> 9.27 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (77,292 </td> <td style="width: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; "> 25.89 </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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (9,123 </td> <td style="width: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; "> 8.06 </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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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="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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 459,662 </td> <td style="width: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; "> 8.51 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

508493

9.58

580185

9.64

2278089

9.92

163375

11.28

70271

10.19

1611489

9.27

667

9.90

921

9.82

77292

25.89

1000

4.42

500

4.42

9123

8.06

343451

8.79

508493

9.58

580185

9.64

343451

8.79

485579

9.46

459662

8.51

ii. RSU awards: <div> <table cellpadding="0" style="border-collapse: collapse;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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 1,009,184 </td> <td style="width: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; "> 14.62 </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; "> 1,159,881 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 818,856 </td> <td style="width: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; "> 24.88 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> (553,241 </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:9%; vertical-align:bottom; "> 14.71 </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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (28,910 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:9%; vertical-align:bottom; "> 16.42 </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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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; border-bottom: 3px double;"> </td> <td style="width:9%; vertical-align:bottom; border-bottom: 3px double;"> 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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

1599296

22.27

1245889

21.29

1009184

14.62

1159881

18.06

977667

20.80

818856

24.88

-484665 23.91 -602423 17.86 -553241 14.71

260899

21.19

21837

22.11

28910

16.42

2013613

19.13

1599296

22.27

1245889

21.29

The following table summarizes information about employees’ share options outstanding as of December 31, 2019: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td colspan="14" style="width:66%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 4.42 - 17.25 </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:13%; 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:14%; vertical-align:bottom; "> 1.78 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:14%; 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:13%; 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:14%; vertical-align:bottom; "> 8.79 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

4.42

17.25

343451

P1Y9M10D

8.79

343451

8.79

1824000

1416000

26031000

665000 302000 7202000 <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,996 </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; "> 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:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 8,138 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

8207000

15840000

12996000

11588000 10761000 8138000

Stock-based compensation expenses were recognized in the Statement of Operations as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,084 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,555 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,987 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 6,010 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 12,661 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 11,649 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

4529000

3141000

3084000

2900000

2533000

2555000

7119000

6987000

6010000

14548000

12661000

11649000

1200000

87000

0.52

0.29

0.34

0.32

0.15

0.10

0.12

0.04

Substantially all of Tower’s long-lived assets are located in Israel, substantially all of Jazz’s and TJT’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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 219,479 </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; "> 215,419 </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; "> 248,453 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 239,462 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 214,007 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 202,353 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:74%; vertical-align:bottom; "> Total </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 681,939 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 657,234 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

219479000

215419000

248453000

239462000

214007000

202353000

681939000

657234000

0.10

0.13

0.10

0.27

0.33

0.30

0.05

0.07

0.12

0.27

0.16

0.15

NOTE 17 - FINANCING EXPENSE (INCOME), NET Financing expense (income), net consists of the following: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 6,823 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,623 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (4,783 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Jazz 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; "> 5,010 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,230 </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; "> 3,299 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,738 </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; "> 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> <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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,673 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 633 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 13,184 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 15,447 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

Financing expense (income), net consists of the following: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 6,823 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 12,623 </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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (4,783 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Jazz 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; "> 5,010 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,230 </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; "> 3,299 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 2,738 </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; "> 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> <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> </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,673 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 633 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 13,184 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 15,447 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

6823000

10610000

12623000

12949000

10762000

4783000

5010000

4230000

3299000

3589000

2738000

968000

1064000

6000

-1847000 -3673000 -633000 -12000 13184000 15447000

NOTE 18 - RELATED PARTIES BALANCES AND TRANSACTIONS A.Balance: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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; "> 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; "> 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; "> 110 </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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Description of the transactions </td> <td style="width:1%; vertical-align:bottom; "> </td> <td colspan="10" style="width:37%; border-bottom-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 719 </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; "> (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:1%; vertical-align:bottom; "> </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:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

55000

110000

783000

736000

719000

55000 -44000 -29000

NOTE 19 - INCOME TAXES A.Tower Approved Enterprise Status and 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 (“Investments Law”). Tower, as an 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%. Income not eligible for Preferred Enterprise benefits is taxed at the regular corporate tax rate of 23% for 2019, 23% for 2018 and 24% for 2017. The Company operates in a multinational tax environment and is subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions. The Company is basing its positions on studies that are customary, acceptable and are in compliance with international tax rules in the jurisdictions the Company operates in. B.Income Tax Provision The Company’s income tax provision is as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 2,164 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,622 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,070 </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 (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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,370 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Foreign(*) (see E below) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (14,815 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (27,210 </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 (benefit) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 5,938 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (99,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody> </table></div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 198,008 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (3,514 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,760 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 139,317 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 201,768 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Foreign are amounts related to Tower’s Japanese and US subsidiaries. <div> F - 48 <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, 2019 (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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 78,783 </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; "> 87,325 </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; "> 4,819 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,914 </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; "> 3,341 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,738 </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; "> 15,276 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,292 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,068 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,615 </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; "> 107,287 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 112,884 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (7,266 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (5,834 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 100,021 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 107,050 </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; "> (77,966 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,001 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:74%; vertical-align:bottom; "> Gain on TPSCo acquisition </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; "> (1,240 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (750 </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 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (78,897 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (83,991 </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; "> </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 66,362 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 73,460 </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 liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (45,238 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (50,401 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) Deferred tax assets and liabilities relating to Tower for the years 2019 and 2018 are computed based on the Israeli preferred enterprise tax rate of 7.5%. <div> F - 49 <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, 2019 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) 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-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2019 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 14,783 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 778 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (448 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2019 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 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-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2018 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,286 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 716 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,219 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2018 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 14,783 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2017 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 8,969 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 8,753 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction of prior years’ provision </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (2,436 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2017 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 15,286 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div> E.Effective Income Tax Rates In December 2017, the Tax Cut and Jobs Act (the “Act”) was signed into law, which enacts significant changes to U.S. federal corporate tax and related laws. Some of the provisions of the Act affecting corporations include, but are not limited to: (i) a reduction of the U.S. Federal corporate income tax rate from 35% to 21%; (ii) limiting the interest expense deduction; (iii) expensing of cost of acquired qualified property; (iv) elimination of the domestic production activities deduction; (v) elimination of Alternative Minimum Tax (“AMT”) and (vi) refund ability of AMT credits, which were generated prior to the Act, in 2018 and thereafter. Tower US Holdings recorded in the twelve months ended December 31, 2017 a non-cash income tax benefit in the amount of approximately $13,000 for Act-related impacts. <div> F - 50 <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, 2019 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) E.Effective Income Tax Rates (Cont.) 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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 20,935 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 48,433 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Effect of tax rate change on deferred tax liabilities, 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; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; "> (478 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16,078 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> <p style="font-family: Times New Roman, Times, serif; font-size:10pt; text-align:justify; margin-top:0pt; padding-left:0pt; text-indent: -8pt !important; padding-left: 8pt !important; margin-bottom: 0pt;">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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (33,298 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (962 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,772 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Tax benefits for which deferred taxes were not recorded, 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (15,103 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,905 </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: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,516 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,070 </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 (benefit) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 5,938 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (99,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) The tax expense (benefit) was computed based on Tower’s regular corporate tax rate of 23% for 2019, 23% for 2018 and 24% for 2017. (**) Reduction in tax rates due to the U.S. Tax Reform and reduction in income tax rates in Japan. F.Net Operating Loss Carryforward As of December 31, 2019, Tower had net operating loss carryforward for tax purposes of approximately $1,000,000 which may be carried forward indefinitely. For the year ended December 31, 2016, Tower recorded a valuation allowance for deferred tax assets as it was unable to conclude that it is more-likely-than-not that such deferred tax assets would be realized. As of December 31, 2017, Tower concluded that realization of net deferred assets is more likely than not as required by ASC 740-10-30-5(e). Tower considered both positive and negative factors. Positive factors include the Israeli accumulated profit before tax for 2017 and recent years, projections for taxable income in Israel in the near term and the unlimited time for the utilization of the losses carryforward. The negative factors considered include Tower’s history of operating losses, the uncertainty in estimating the future generation of sufficient taxable income in Israel to utilize the loss carryforward in the amount noted above taking into account that it operates in the cyclical industry of semiconductors and other trends affecting Tower’s ability to sustain its current level of income. Weighing all the above, Tower concluded in 2017 that it is more likely than not that taxable income will be generated and released entirely the valuation allowance related to the Israeli accumulated losses. <div> F - 51 <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, 2019 (dollars in thousands, except per share data) NOTE 19 - INCOME TAXES (Cont.) F.Net Operating Loss Carryforward (Cont.) 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. Jazz 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 Jazz Semiconductor. The second “change in ownership” event occurred in September 2008, upon Tower’s acquisition of Jazz. Jazz 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. As of December 31, 2019, Tower US Holdings had federal net operating loss carryforward of approximately $31,000, of which approximately $5,000 do not expire and is subject to taxable income limitation of 80% due to the Act, and the remaining federal tax loss carryforwards of $26,000 will begin to expire in 2022, unless previously utilized. As of December 31, 2019, Tower US Holdings had California state net operating loss carryforward of approximately $11,000. The state tax loss carry forward begin to expire in 2028, unless previously utilized. As of December 31, 2019 and 2018, 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 1999-2014 are deemed final. Tower US Holdings is filing the consolidated tax return including Jazz and TJT. Tower US Holdings and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple states. With few exceptions, Tower US Holdings is no longer subject to U.S. federal income tax examinations before 2016 and state and local income tax examinations before 2015. 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. TPSCo possesses final tax assessments through the year 2016.

0.075

0.23

0.24

The Company’s income tax provision is as follows: <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 2,164 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 3,622 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 6,070 </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 (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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,370 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Foreign(*) (see E below) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (14,815 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (27,210 </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 (benefit) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 5,938 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (99,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td></tr></tbody> </table></div>

2164000

3622000

1013000

9273000

6070000

7098000

9316000

-82370000

-5163000

-14815000

-27210000

2948000

5938000

-99888000

<div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 198,008 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (3,514 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,760 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 139,317 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 201,768 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> (*) Foreign are amounts related to Tower’s Japanese and US subsidiaries.

103432000

142831000

198008000

-12411000

-3514000

3760000

91021000

139317000

201768000

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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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: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; "> 78,783 </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; "> 87,325 </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; "> 4,819 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,914 </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; "> 3,341 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 4,738 </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; "> 15,276 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 12,292 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 5,068 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> 3,615 </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; "> 107,287 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> 112,884 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (7,266 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (5,834 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 100,021 </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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 107,050 </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; "> (77,966 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,001 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:74%; vertical-align:bottom; "> Gain on TPSCo acquisition </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; "> (1,240 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (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: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (750 </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 </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (78,897 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (83,991 </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; "> </td> <td style="width:1%; vertical-align:bottom; "> </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; "> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 66,362 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 73,460 </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 liabilities </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (45,238 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (50,401 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) Deferred tax assets and liabilities relating to Tower for the years 2019 and 2018 are computed based on the Israeli preferred enterprise tax rate of 7.5%.

78783000 87325000 4819000 4914000 3341000 4738000

15276000

12292000

5068000 3615000

107287000

112884000

7266000

5834000

100021000

107050000

77966000

82001000

1240000

931000

750000

78897000

83991000

66362000

73460000

45238000

50401000

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-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2019 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 14,783 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 778 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (448 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2019 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 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-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2018 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 15,286 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions of current year </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 716 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction due to statute of limitation of prior years </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,219 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2018 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 14,783 </td> <td style="width:100%; vertical-align:bottom; "> </td> </tr> </tbody> </table> </div> <div style="margin-left: 80pt; "> <table cellpadding="0" style="border-collapse: collapse;" width="100%"> <thead> <tr class="odd" style=""> <td style="width:80%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td colspan="2" style="width:16%; border-bottom-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> Unrecognized tax benefits </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> </thead> <tbody> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Balance at January 1, 2017 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> $ </td> <td style="width:14%; vertical-align:bottom; "> 8,969 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Additions for tax positions </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:14%; vertical-align:bottom; "> 8,753 </td> <td style="width:2%; vertical-align:bottom; "> </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:80%; vertical-align:bottom; "> Reduction of prior years’ provision </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 1.5pt solid; "> </td> <td style="width:14%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (2,436 </td> <td style="width:2%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <td style="width:80%; vertical-align:bottom; "> Balance at December 31, 2017 </td> <td style="width:2%; vertical-align:bottom; "> </td> <td style="width:2%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:14%; vertical-align:bottom; border-bottom: 3px double;"> 15,286 </td> <td style="width:100%; vertical-align:bottom; "> </td></tr></tbody> </table></div>

14783000

778000

-448000

15113000

15286000

716000

-1219000

14783000

8969000

8753000

-2436000

15286000

0.35

0.21

13000

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-collapse: collapse;" 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; 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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2018 </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-width:1.5pt; border-bottom-style:solid; vertical-align:bottom; "> 2017 </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; "> 20,935 </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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> $ </td> <td style="width:10%; vertical-align:bottom; "> 48,433 </td> <td style="width:1%; vertical-align:bottom; "> </td> </tr> <tr class="even" style=""> <td style="width:61%; vertical-align:bottom; "> Effect of tax rate change on deferred tax liabilities, 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; "> 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; "> </td> <td style="width:10%; vertical-align:bottom; "> (478 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (16,078 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> <p style="font-family: Times New Roman, Times, serif; font-size:10pt; text-align:justify; margin-top:0pt; padding-left:0pt; text-indent: -8pt !important; padding-left: 8pt !important; margin-bottom: 0pt;">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; "> (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> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (33,298 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="even" style=""> <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; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (962 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:10%; vertical-align:bottom; "> (82,772 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> <tr class="odd" style="background-color: #cceeff; "> <td style="width:61%; vertical-align:bottom; "> Tax benefits for which deferred taxes were not recorded, 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; "> -- </td> <td style="width:1%; vertical-align:bottom; "> </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; "> (15,103 </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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,905 </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: 1.5pt solid; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,516 </td> <td 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; "> </td> <td style="width:10%; vertical-align:bottom; border-bottom: 1.5pt solid; "> (1,070 </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 (benefit) </td> <td style="width:1%; vertical-align:bottom; "> </td> <td style="width:1%; vertical-align:bottom; border-bottom: 3px double;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> 5,938 </td> <td 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;"> $ </td> <td style="width:10%; vertical-align:bottom; border-bottom: 3px double;"> (99,888 </td> <td style="width:1%; vertical-align:bottom; "> ) </td> </tr> </tbody> </table> </div> (*) The tax expense (benefit) was computed based on Tower’s regular corporate tax rate of 23% for 2019, 23% for 2018 and 24% for 2017. (**) Reduction in tax rates due to the U.S. Tax Reform and reduction in income tax rates in Japan.

20935000

32044000

48433000

-314000 478000 16078000

-16396000

-23150000

-33298000

962000

82772000

-15103000

-1905000

-1516000

-1070000

2948000

5938000

-99888000

1000000

2100

31000

5000

taxable income limitation of 80%

26000

11000

Original cost of machinery and equipment includes ROU assets under capital lease in the amount of $86,087 and $54,873 as of December 31, 2019 and 2018, respectively. The depreciation expense of such assets amounted to $9,941 and $2,102 for the years ended December 31, 2019 and 2018, respectively. Excluding accrued interest of $623. Excluding accrued interest of $765 Represents revenues from individual countries of less than 10% each. Represents aggregated revenue to four customers accounted between 5% and 9% of revenue during 2019, to two customers accounted for 7% and 9% of revenue during 2018, and to two customers accounted for 7% and 8% of revenue during 2017. Foreign are amounts related to Tower’s Japanese and US subsidiaries. Deferred tax assets and liabilities relating to Tower for the years 2019 and 2018 are computed based on the Israeli preferred enterprise tax rate of 7.5%. The tax expense (benefit) was computed based on Tower’s regular corporate tax rate of 23% for 2019, 23% for 2018 and 24% for 2017. Reduction in tax rates due to the U.S. Tax Reform and reduction in income tax rates in Japan.