SEGMENT INFORMATION

9 Months Ended

Oct. 01, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 8 - SEGMENT INFORMATION

An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision- making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer (“CEO”).

The Company’s organizational structure and management reporting supports two operating segments: Mobileye and Moovit. The CODM evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Operating segments do not record inter-segment revenue.

Mobileye is the Company’s only reportable operating segment and Moovit is presented within “Other” as per ASC 280, Segment Reporting. Segment performance is the operating income reported excluding the amortization of acquisition-related intangible assets and IPO related expense. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM.

The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in Note 2 to the audited combined financial statements for the fiscal year ended December 25, 2021.

The following are segment results for each period as follows:

	Three Months Ended October 1, 2022
					Amounts not
					allocated to
	Mobileye		Other		segments		Combined
	U.S. dollars in millions
Revenues	$	443	$	7	$	—	$	450
Cost of revenues		117		1		115		233
Research and development, net		196		10		—		206
Sales and Marketing		8		3		16		27
General and administrative		5		3		1		9
Segment performance	$	117	$	(10)	$	(132)	$	(25)
Interest (expense) with a related party								(6)
Other income								1
Loss before taxes on income								(30)
Share-based compensation		32		4		—		36
Depreciation of property and equipment		7		—		—		7

	Three Months Ended September 25, 2021
					Amounts not
					allocated to
	Mobileye		Other		segments		Combined
	U.S. dollars in millions
Revenues	$	321	$	5	$	—	$	326
Cost of revenues		72		1		100		173
Research and development, net		122		10		—		132
Sales and Marketing		7		3		23		33
General and administrative		5		3		—		8
Segment performance	$	115	$	(12)	$	(123)	$	(20)
Interest income with a related party								—
Other expense								—
Loss before taxes on income								(20)
Share-based compensation		20		4		—		24
Depreciation of property and equipment		5		—		—		5

	Nine Months Ended October 1, 2022
					Amounts not
					allocated to
	Mobileye		Other		segments		Combined
	U.S. dollars in millions
Revenues	$	1,286	$	18	$	—	$	1,304
Cost of revenues		324		3		355		682
Research and development, net		534		31		—		565
Sales and Marketing		24		9		58		91
General and administrative		14		9		4		27
Segment performance	$	390	$	(34)	$	(417)	$	(61)
Interest (expenses) with a related party								(11)
Other income								6
Loss before taxes on income								(66)
Share-based compensation		101		11		—		112
Depreciation of property and equipment		17		—		—		17

	Nine Months Ended September 25, 2021
					Amounts not
					allocated to
	Mobileye		Other		segments		Combined
	U.S. dollars in millions
Revenues	$	1,015	$	15	$	—	$	1,030
Cost of revenues		226		3		300		529
Research and development, net		361		29		—		390
Sales and Marketing		19		11		68		98
General and administrative		17		9		—		26
Segment performance	$	392	$	(37)	$	(368)	$	(13)
Interest income with a related party								2
Other expense								—
Loss before taxes on income								(11)
Share-based compensation		63		10		—		73
Depreciation of property and equipment		12		—		—		12

Total revenues based on the country that the product was shipped to were as follows:

	Three Months Ended				Nine Months Ended
	October 1,		September 25,		October 1,		September 25,
	2022		2021		2022		2021
	U.S. dollars in millions				U.S. dollars in millions
USA	$	113	$	94	$	342	$	276
China		126		61		360		180
Germany		72		54		174		190
United Kingdom		52		36		165		150
South Korea		31		28		86		83
Poland		14		6		58		14
Hungary		25		21		62		59
Singapore		4		14		19		37
Rest of World		13		12		38		41
Total	$	450	$	326	$	1,304	$	1,030

The Company generates the majority of its revenue from the sale of the EyeQ® SoCs to OEM customers through Tier 1 suppliers. Revenue generated by other product types was deemed to be not material.

Major Customers

Revenue from major customers that amount to 10% or more of total revenue:

	Three Months Ended				Nine Months Ended
	October 1,		September 25,		October 1,		September 25,
	2022		2021		2022		2021
	U.S. dollars in millions				U.S. dollars in millions
Percent of total revenues
Customer A	31	%	32	%	39	%	34	%
Customer B	19	%	18	%	17	%	20	%
Customer C	16	%	18	%	15	%	17	%

Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance:

	October 1, 2022		December 25, 2021
Percent of total accounts receivables balance
Customer A	41	%	32	%
Customer B	11	%	30	%
Customer C	24	%	16	%