OTHER FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 30, 2023

OTHER FINANCIAL STATEMENT DETAILS

OTHER FINANCIAL STATEMENT DETAILS

NOTE 3  OTHER FINANCIAL STATEMENT DETAILS

Inventories

	As of
	December 30,		December 31,
U.S. dollars in millions	2023		2022
Raw materials	$	46	$	41
Work in process		1		—
Finished goods		344		72
Total inventories	$	391	$	113

Inventory write-downs and write-offs totaled $2 million, $0 million and $1 million for the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively.

Property and equipment, net

	As of
	December 30,		December 31,
U.S. dollars in millions	2023		2022
Computers, electronic equipment and software	$	167	$	124
Vehicles		14		13
Office furniture and equipment		11		4
Buildings		315		—
Leasehold improvements		37		22
Construction in process		—		302
Total property and equipment, gross		544		465
Less: accumulated depreciation		(97)		(81)
Total property and equipment, net	$	447	$	384

Depreciation expenses totaled $39 million, $23 million, and $17 million for the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. During 2023, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $23 million.

The construction of our new campus in Israel is substantially complete and therefore we have classified the related costs from ‘construction in process’ to the relevant asset types as well as commenced depreciation in the fourth quarter of 2023.

Substantially all of the Company’s property and equipment were located in Israel as of December 30, 2023 and December 31, 2022.

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 30, 2023, December 31, 2022, and December 25, 2021, the Company recorded expenses of approximately $9 million, $8 million, and $7 million, respectively. These expenses were classified as a component of cost of revenue.