INCOME TAXES (Tables)

12 Months Ended

Dec. 28, 2024

INCOME TAXES

Summary of loss before income taxes

	Year ended
	December 28,		December 30,		December 31,
U.S. dollars in millions	2024		2023		2022
Income (loss) before taxes:
U.S	$	(11)	$	(13)	$	(49)
Non-U.S		(3,152)		29		17
Total income (loss) before income taxes	$	(3,163)	$	16	$	(32)

Summary of benefit (provision) for income taxes

Benefit (provision) for income taxes for the years ended December 28, 2024, December 30, 2023, and December 31, 2022 was comprised of the following:

	Year ended
	December 28,		December 30,		December 31,
U.S. dollars in millions	2024		2023		2022
Current income taxes:
U.S	$	—	$	—	$	—
Non-U.S		(28)		(58)		(67)
Total current provision for income taxes		(28)		(58)		(67)

Deferred income taxes:
U.S.		54		(28)		(28)
Non-U.S.		47		43		45
Total deferred benefit (provision) for income taxes		101		15		17
Total benefit (provision) for income taxes	$	73	$	(43)	$	(50)

Summary of income taxes reconciliation

	Year ended
	December 28,	December 30,	December 31,
	2024	2023	2022
	%
Statutory federal income tax rate	21.0	21.0	21.0
Increase (reduction) in rate resulting from:
Foreign rate differential	2.0	2.7	(1.2)
Technology incentives – current	0.1	(568.7)	312.7
Technology incentives – deferred	(3.1)	461.5	(230.6)
U.S. branch taxation of foreign operations	1.7	243.9	(127.3)
Changes in uncertain tax position, net	(0.2)	42.1	16.1
Share-based compensation related adjustments	—	(2.4)	(0.5)
Changes in valuation allowance	(0.3)	43.1	(151.9)
Non-deductible expenses and other	(0.1)	25.4	(6.5)
Withholding taxes, net of credit	—	—	12.1
Goodwill impairment*	(18.8)	—	—
Effective tax rate	2.3	268.6	(156.1)

*  The US tax impacts of the goodwill impairment is reflected in the U.S. branch taxation of foreign operations line item while the goodwill impairment line item reflects the Israeli tax impact.

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

	December 28,		December 30,
U.S. dollars in millions	2024		2023
Deferred tax assets:
Share-based compensation	$	119	$	105
Provisions for employee benefits		12		8
Net operating losses carryforward		147		103
Research and development expenses		631		455
Operating lease liabilities		11		12
Foreign tax credit and deferrals		5		13
Intangible assets		202		179
Other		6		15
Gross deferred tax assets		1,133		890
Valuation allowance		(1,007)		(579)
Total deferred tax assets		126		311
Deferred tax liabilities:
Intangible assets		(99)		(126)
Goodwill		(63)		(322)
Right of use assets		(10)		(11)
Other		(1)		—
Total deferred tax liabilities		(173)		(459)
Net deferred tax liabilities	$	(47)	$	(148)

Summary of changes in valuation allowance for deferred tax assets

	Year ended
	December 28,		December 30,		December 31,
U.S. dollars in millions	2024		2023		2022
Valuation allowance at beginning of year	$	579	$	533	$	229
Change in valuation allowance		428		46		304
Valuation allowance at end of year	$	1,007	$	579	$	533

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

	Year ended
	December 28,		December 30,		December 31,
U.S. dollars in millions	2024		2023		2022
Balance at the beginning of the year	$	7	$	—	$	4
Changes in balances related to tax positions taken during current period		6		7		—
Settlements with taxing authorities		—		—		—
Lapse of statute of limitations		—		—		(4)
Balance at the end of the year	$	13	$	7	$	—