OTHER FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 31, 2022

OTHER FINANCIAL STATEMENT DETAILS

OTHER FINANCIAL STATEMENT DETAILS

NOTE 3  OTHER FINANCIAL STATEMENT DETAILS

Inventories

	As of
	December 31,		December 25,
U.S. dollars in millions	2022		2021
Raw materials	$	41	$	24
Finished goods		72		73
	$	113	$	97

Inventory write-downs and write-offs were not material for all periods presented in these consolidated financial statements.

Property and equipment, net

	As of
	December 31,		December 25,
U.S. dollars in millions	2022		2021
Computers, electronic equipment and software	$	124	$	85
Vehicles		13		11
Office furniture and equipment		4		2
Leasehold improvements		22		15
Construction in process		302		249
Total property and equipment, gross		465		362
Less: accumulated depreciation		(81)		(58)
Total property and equipment, net	$	384	$	304

Depreciation expenses totaled $23 million, $17 million, and $13 million for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, respectively.

Substantially all of the Company’s property and equipment were located in Israel as of December 31, 2022 and December 25, 2021.

Royalty bearing agreements

The Company has entered into a number of license and technology transfer agreements with third parties. The agreements allow the Company to utilize and leverage the third parties’ technology in order to integrate it into the Company’s products. In consideration thereof, the Company is obligated to pay royalties to each of the third parties, for each unit of the applicable integrated product sold to other parties. As a result, during the years ended December 31, 2022, December 25, 2021, and December 26, 2020, the Company recorded expenses of approximately $8 million, $7 million, and $5 million, respectively. These expenses were classified as a component of cost of revenue.