Basic net Earnings Per Share (“EPS”) is computed by dividing the net earnings attributable to SolarEdge Technologies, Inc. by the weighted-average number of shares of common stock outstanding during the period.

Diluted net EPS is computed by giving effect to all potential shares of common stock, including stock options, to the extent dilutive, all in accordance with ASC No. 260, “Earnings Per Share.”

312,128 shares of common stock were excluded from the calculation of diluted net EPS due to their anti-dilutive effect for the year ended December 31, 2019.

No shares were excluded from the calculation for the year ended December 31, 2018.

The total weighted average number of shares related to the outstanding stock options, excluded from the calculation of diluted net EPS due to their anti-dilutive effect was 197,516, for the year ended December 31, 2017.

F - 47

SOLAREDGE TECHNOLOGIES, INC.

AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 18:-EARNINGS PER SHARE (Cont.)

The following table presents the computation of basic and diluted EPS attributable to SolarEdge Technologies, Inc.:

	Year ended December 31,
	2019			2018		2017

Basic EPS:
Numerator:
Net income	$	144,957		$	128,046	$	84,172
Net loss attributable to Non-controlling interests		1,592			787		-
Net income attributable to SolarEdge Technologies, Inc.	$	146,549		$	128,833	$	84,172

Denominator:
Shares used in computing net earnings per share of common stock, basic		47,918,938			45,235,310		42,209,238

Diluted EPS:
Numerator:
Net income	$	144,957		$	128,046	$	84,172
Net loss attributable to Non-controlling interests		1,592			787		-
Undistributed earnings reallocated to non-vested stockholders		(906	)		-		-
Net income attributable to SolarEdge Technologies, Inc.	$	145,643		$	128,833	$	84,172

Denominator:
Shares used in computing net earnings per share of common stock, basic		47,918,938			45,235,310		42,209,238
Weighted average effect of dilutive securities:
Non-vested PSUs		(312,128	)		-		-
Effect of stock-based awards		2,588,851			2,744,692		3,216,069
Shares used in computing net earnings per share of common stock, diluted		50,195,661			47,980,002		45,425,307