INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Summary of loss before income taxes

	Year ended
	December 31,		December 25,		December 26,
U.S. dollars in millions	2022		2021		2020
Income (loss) before taxes:
U.S	$	(49)	$	(96)	$	(77)
Non-U.S		17		39		(135)
Total income (loss) before income taxes	$	(32)	$	(57)	$	(212)

Summary of benefit (provision) for income taxes

	Year ended
	December 31,		December 25,		December 26,
U.S. dollars in millions	2022		2021		2020
Current income taxes:
U.S	$	—	$	—	$	—
Non-U.S		(67)		(47)		(37)
Total current provision for income taxes		(67)		(47)		(37)

Deferred income taxes:
U.S.		(28)		(30)		—
Non-U.S.		45		59		53
Total deferred benefit (provision) for income taxes		17		29		53
Total benefit (provision) for income taxes	$	(50)	$	(18)	$	16

Summary of income taxes reconciliation

	Year ended
	December 31,	December 25,	December 26,
	2022	2021	2020
	%
Statutory federal income tax rate	21.0	21.0	21.0
Increase (reduction) in rate resulting from:
Foreign rate differential	(1.2)	(1.9)	0.5
Technology incentives – current	312.7	183.1	28.2
Technology incentives – deferred	(230.6)	(116.4)	(29.1)
U.S. branch taxation of foreign operations	(127.3)	(54.4)	—
Decrease (increase) in uncertain tax position, net	16.1	(0.3)	0.2
Share-based compensation related adjustments	(0.5)	(13.7)	(4.1)
Increase in valuation allowance	(151.9)	(50.0)	(7.7)
Non-deductible expenses and other	(6.5)	1.0	(1.5)
Withholding taxes, net of credit	12.1	—	—
Effective tax rate	(156.1)	(31.6)	7.5

Summary of significant components of the Company's deferred tax assets and deferred tax liabilities

	December 31,		December 25,
U.S. dollars in millions	2022		2021
Deferred tax assets:
Share-based compensation	$	89	$	80
Provisions for employee benefits		7		8
Net operating losses carryforward		142		198
Research and development expenses		283		105
Operating lease liabilities		13		—
Foreign tax credit and deferrals		33		—
Intangible assets		147		—
Other		3		—
Gross deferred tax assets		717		391
Valuation allowance		(533)		(229)
Total deferred tax assets		184		162
Deferred tax liabilities:
Intangible assets		(161)		(181)
Goodwill		(172)		(152)
Right of use assets		(13)		—
Total deferred tax liabilities		(346)		(333)
Net deferred tax liabilities	$	(162)	$	(171)

Summary of changes in valuation allowance for deferred tax assets

	Year ended
	December 31,		December 25,		December 26,
U.S. dollars in millions	2022		2021		2020
Valuation allowance at beginning of year	$	229	$	—	$	—
Additions		—		185		—
Change in valuation allowance		304		44		—
Valuation allowance at end of year	$	533	$	229	$	—

Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions

	Year ended
	December 31,		December 25,		December 26,
U.S. dollars in millions	2022		2021		2020
Balance at the beginning of the year	$	4	$	4	$	5
Settlements with taxing authorities		—		—		(1)
Lapse of statute of limitations		(4)		—		—
Balance at the end of the year	$	—	$	4	$	4