OTHER FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 28, 2024

OTHER FINANCIAL STATEMENT DETAILS

OTHER FINANCIAL STATEMENT DETAILS

NOTE 3  OTHER FINANCIAL STATEMENT DETAILS

Inventories

	As of
	December 28,		December 30,
U.S. dollars in millions	2024		2023
Raw materials	$	35	$	46
Work in process		1		1
Finished goods		379		344
Total inventories	$	415	$	391

Inventory write-downs and write-offs totaled $3 million, $2 million and $0 million for the years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.

Property and equipment, net

	As of
	December 28,		December 30,
U.S. dollars in millions	2024		2023
Computers, electronic equipment and software	$	197	$	167
Vehicles		14		14
Office furniture and equipment		10		11
Buildings		321		315
Leasehold improvements		44		37
Total property and equipment, gross	$	586	$	544
Less: accumulated depreciation		(128)		(97)
Total property and equipment, net	$	458	$	447

Depreciation expenses totaled $62 million, $39 million, and $23 million for the years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively. During 2024 and 2023, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $30 million and $23 million, respectively.

Substantially all of the Company’s property and equipment were located in Israel as of December 28, 2024 and December 30, 2023.

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 28, 2024, December 30, 2023, and December 31, 2022, the Company recorded expenses of approximately $7 million, $9 million, and $8 million, respectively. These expenses were classified as a component of cost of revenue.