SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 13  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 these consolidated financial statements.

The following is segment results for each year:

	Year ended December 31, 2022
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	1,843	$	26	$	—	$	1,869
Cost of revenues		473		5		469		947
Research and development, net		747		42		—		789
Sales and marketing		34		11		75		120
General and administrative		34		12		4		50
Segment performance	$	555	$	(44)	$	(548)	$	(37)
Interest income (expense) with related party								(6)
Other income (expense)								11
Loss before taxes on income								(32)
Share-based compensation		158		16		—		174
Depreciation of property and equipment		23		—		—		23

	Year ended December 25, 2021
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	1,363	$	23	$	—	$	1,386
Cost of revenues		308		4		419		731
Research and development, net		505		39		—		544
Sales and marketing		30		14		90		134
General and administrative		21		13		—		34
Segment performance	$	499	$	(47)	$	(509)	$	(57)
Interest income (expense) with related party								3
Other income (expense)								(3)
Loss before taxes on income								(57)
Share-based compensation		85		12		—		97
Depreciation of property and equipment		17		—		—		17

	Year ended December 26, 2020
					Amounts not
					allocated to
U.S. dollars in millions	Mobileye		Other		segments		Consolidated
Revenues	$	956	$	11	$	—	$	967
Cost of revenues		221		2		368		591
Research and development, net		417		23		—		440
Sales and marketing		26		8		82		116
General and administrative		28		5		—		33
Segment performance	$	264	$	(27)	$	(450)	$	(213)
Interest income (expense) with related party								6
Other income (expense)								(5)
Loss before taxes on income								(212)
Share-based compensation		82		3		—		85
Depreciation of property and equipment		13		—		—		13

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

	Year ended
	December 31,		December 25,		December 26,
U.S. dollars in millions	2022		2021		2020
China	$	551	$	270	$	134
USA		472		363		254
Germany		268		263		153
United Kingdom		221		198		161
South Korea		115		107		96
Singapore		25		42		41
Hungary		87		66		67
Poland		69		24		6
Rest of World		61		53		55
Total	$	1,869	$	1,386	$	967

We generate the majority of our revenue from the sale of our EyeQ® SoCs to OEMs through sales to Tier 1 automotive suppliers. EyeQ® SoC sales represented approximately 89%, 94%, and 93% of our revenue for each of the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively.

Major Customers

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

	Year ended
	December 31,		December 25,		December 26,
	2022		2021		2020
Percent of total revenues
Customer A	38	%	35	%	35	%
Customer B	18	%	19	%	13	%
Customer C	15	%	17	%	17	%
Customer D	*		*		10	%
Customer E	*		*		10	%

*Less than 10%

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

	Year ended
	December 31,		December 25,
	2022		2021
Percent of total accounts receivables balance
Customer A	32	%	32	%
Customer B	19	%	30	%
Customer C	25	%	16	%