Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 31, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 29, 2024 | |
Entity File Number | 001-41541 | |
Entity Registrant Name | Mobileye Global Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 88-0666433 | |
Entity Address, Address Line One | Har Hotzvim, 1 Shlomo Momo HaLevi Street | |
Entity Address, City or Town | Jerusalem | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 9777015 | |
City Area Code | 972 | |
Local Phone Number | 2-541-7333 | |
Title of 12(b) Security | Class A common stock, par value $0.01 | |
Trading Symbol | MBLY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 99,548,127 | |
Entity Central Index Key | 0001910139 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 1,203 | $ 1,212 |
Trade accounts receivable, net | 204 | 357 |
Inventories | 485 | 391 |
Other current assets | 115 | 106 |
Total current assets | 2,007 | 2,066 |
Non-current assets | ||
Property and equipment, net | 456 | 447 |
Intangible assets, net | 1,831 | 2,053 |
Goodwill | 10,895 | 10,895 |
Other long-term assets | 118 | 116 |
Total non-current assets | 13,300 | 13,511 |
TOTAL ASSETS | 15,307 | 15,577 |
Current liabilities | ||
Accounts payable and accrued expenses | 171 | 229 |
Employee related accrued expenses | 91 | 87 |
Related party payable | 53 | 39 |
Other current liabilities | 31 | 48 |
Total current liabilities | 346 | 403 |
Non-current liabilities | ||
Long-term employee benefits | 55 | 56 |
Deferred tax liabilities | 137 | 148 |
Other long-term liabilities | 50 | 46 |
Total non-current liabilities | 242 | 250 |
Contingencies (see note 11) | ||
TOTAL LIABILITIES | 588 | 653 |
Equity | ||
Additional paid-in capital | 14,985 | 14,886 |
Retained earnings (accumulated deficit) | (274) | 30 |
TOTAL EQUITY | 14,719 | 14,924 |
TOTAL LIABILITIES AND EQUITY | 15,307 | 15,577 |
Class A common stock | ||
Equity | ||
Common stock | 1 | 1 |
Class B common stock | ||
Equity | ||
Common stock | $ 7 | $ 7 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Dec. 30, 2023 |
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued | 97,736,898 | 94,652,348 |
Common stock, shares outstanding | 97,736,898 | 94,652,348 |
Class B common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 711,500,000 | 711,500,000 |
Common stock, shares outstanding | 711,500,000 | 711,500,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||
Revenue | $ 439 | $ 454 | $ 678 | $ 912 |
Cost of revenue | 230 | 230 | 415 | 481 |
Gross profit | 209 | 224 | 263 | 431 |
Research and development, net | 256 | 211 | 499 | 446 |
Sales and marketing | 28 | 29 | 62 | 62 |
General and administrative | 19 | 17 | 34 | 37 |
Total operating expenses | 303 | 257 | 595 | 545 |
Operating income (loss) | (94) | (33) | (332) | (114) |
Other financial income (expense), net | 13 | 15 | 30 | 23 |
Income (loss) before income taxes | (81) | (18) | (302) | (91) |
Benefit (provision) for income taxes | (5) | (10) | (2) | (16) |
Net income (loss) | $ (86) | $ (28) | $ (304) | $ (107) |
Earnings (loss) per share attributed to Class A and Class B stockholders: | ||||
Basic | $ (0.11) | $ (0.04) | $ (0.38) | $ (0.13) |
Diluted | $ (0.11) | $ (0.04) | $ (0.38) | $ (0.13) |
Weighted-average number of shares used in computation of earnings (loss) per share attributed to Class A and Class B stockholders (in millions): | ||||
Basic | 806 | 805 | 806 | 803 |
Diluted | 806 | 805 | 806 | 803 |
Other comprehensive income (loss) | $ 9 | |||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (86) | $ (28) | $ (304) | $ (98) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated deficit) | Total |
Beginning balance (in shares) at Dec. 31, 2022 | 802 | ||||
Beginning balance at Dec. 31, 2022 | $ 9 | $ 14,737 | $ (9) | $ 57 | $ 14,794 |
Net income (loss) | (107) | (107) | |||
Other comprehensive income (loss), net | $ 9 | 9 | |||
Share-based compensation expense | 127 | 127 | |||
Recharge to Parent for Share-based compensation | (22) | (22) | |||
Issuance of common stock under employee share-based compensation plans (Shares) | 4 | ||||
Ending balance (in shares) at Jul. 01, 2023 | 806 | ||||
Ending balance at Jul. 01, 2023 | $ 8 | 14,842 | (50) | 14,800 | |
Beginning balance (in shares) at Apr. 01, 2023 | 802 | ||||
Beginning balance at Apr. 01, 2023 | $ 9 | 14,800 | (22) | 14,787 | |
Net income (loss) | (28) | (28) | |||
Tax sharing agreement with Parent | 5 | 5 | |||
Share-based compensation expense | 55 | 55 | |||
Recharge to Parent for Share-based compensation | (18) | (18) | |||
Issuance of common stock under employee share-based compensation plans (Shares) | 4 | ||||
Ending balance (in shares) at Jul. 01, 2023 | 806 | ||||
Ending balance at Jul. 01, 2023 | $ 8 | 14,842 | (50) | 14,800 | |
Beginning balance (in shares) at Dec. 30, 2023 | 806 | ||||
Beginning balance at Dec. 30, 2023 | $ 8 | 14,886 | 30 | 14,924 | |
Net income (loss) | (304) | (304) | |||
Share-based compensation expense | 124 | 124 | |||
Recharge to Parent for Share-based compensation | (25) | (25) | |||
Issuance of common stock under employee share-based compensation plans (Shares) | 3 | ||||
Ending balance (in shares) at Jun. 29, 2024 | 809 | ||||
Ending balance at Jun. 29, 2024 | $ 8 | 14,985 | (274) | 14,719 | |
Beginning balance (in shares) at Mar. 30, 2024 | 806 | ||||
Beginning balance at Mar. 30, 2024 | $ 8 | 14,943 | (188) | 14,763 | |
Net income (loss) | (86) | (86) | |||
Share-based compensation expense | 62 | 62 | |||
Recharge to Parent for Share-based compensation | (20) | (20) | |||
Issuance of common stock under employee share-based compensation plans (Shares) | 3 | ||||
Ending balance (in shares) at Jun. 29, 2024 | 809 | ||||
Ending balance at Jun. 29, 2024 | $ 8 | $ 14,985 | $ (274) | $ 14,719 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (304) | $ (107) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation of property and equipment | 30 | 15 |
Share-based compensation | 124 | 127 |
Amortization of intangible assets | 222 | 251 |
Exchange rate differences on cash and cash equivalents | 5 | 5 |
Deferred income taxes | (11) | (10) |
Interest with related party, net | 16 | |
(Gains) losses on equity and debt investments, net | 1 | |
Other | (1) | |
Changes in operating assets and liabilities: | ||
Decrease (increase) in trade accounts receivable | 133 | 29 |
Decrease (increase) in other current assets | 8 | 21 |
Decrease (increase) in inventories | (94) | (150) |
Increase (decrease) in accounts payable, accrued expenses and related party payable | (52) | 3 |
Increase (decrease) in employee-related accrued expenses and long term benefits | 3 | (2) |
Increase (decrease) in other current liabilities | 5 | (2) |
Decrease (increase) in other long term assets | (2) | 1 |
Increase (decrease) in other long term liabilities | 3 | |
Net cash provided by (used in) operating activities | 70 | 197 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (46) | (58) |
Purchases of debt and equity investments | (18) | |
Net cash provided by (used in) investing activities | (64) | (58) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share-based compensation recharge | (11) | (12) |
Net cash provided by (used in) financing activities | (11) | (12) |
Effect of foreign exchange rate changes on cash and cash equivalents | (5) | (5) |
Increase (decrease) in cash, cash equivalents and restricted cash | (10) | 122 |
Balance of cash, cash equivalents and restricted cash, at beginning of year | 1,226 | 1,035 |
Balance of cash, cash equivalents and restricted cash, at end of period | 1,216 | 1,157 |
Supplementary non-cash investing and financing activities: | ||
Non-cash purchase of property and equipment | 10 | 8 |
Non-cash share based compensation recharge | 14 | 10 |
Supplemental cash flow information: | ||
Cash received (paid) for income taxes, net of refunds | $ (15) | (29) |
Interest received from related party | $ 16 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 29, 2024 | |
GENERAL | |
GENERAL | NOTE 1 - GENERAL Background Mobileye Global Inc. (“Mobileye”, “the Company” or “we”) is a leader in the development and deployment of advanced driver assistance systems (“ADAS”) and autonomous driving technologies and solutions, aimed to provide the capabilities required for the future of autonomous driving, leveraging a comprehensive suite of purpose-built software and hardware technologies. Intel Corporation (“Intel” or the “Parent”) directly or indirectly hold all of the Class B common stock of Mobileye, which as of June 29, 2024, represents approximately 87.9% of our outstanding common stock and 98.6% of the voting power of our common stock. Operations in Israel On October 7, 2023, Hamas launched a series of attacks on civilian and military targets in Southern and Central Israel, to which the Israel Defense Forces have responded. In addition, Hezbollah has attacked military and civilian targets in Northern Israel, to which Israel has responded. Further, on April 13, 2024, Iran launched a series of drone and missile strikes against Israel, to which Israel has responded. How long and how severe the current conflict in Gaza, Northern Israel or the broader region becomes is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict. To date our operations and financial results have not been materially affected, although as of July 31, 2024 approximately 3.6% of our employees have been called to reserve duty in the Israel Defense Forces. We expect that the current conflict in the Gaza Strip and the security escalation in Israel will not have a material impact on our business results in the short term. However, since this is an event beyond our control, its continuation or cessation may affect our expectations. We continue to monitor political and military developments closely and examine the consequences for our business, results of operations and financial condition. Other events during the reporting period On March 18, 2024, the Company announced the winding down of the Aftermarket Solutions Unit that provides retrofitted advanced driver assistance technology. This decision was made following a thorough review of this unit’s business prospects and investment needs showing that since automakers and other vehicle manufacturers have steadily increased the rate at which integrated ADAS solutions are installed on new vehicles, the demand and future addressable market for retrofitted ADAS solutions has declined. As a result, this division has seen its revenues decline meaningfully, and in recent years has not positively contributed to Mobileye’s profitability. The plan for winding down of the Aftermarket Solutions Unit includes a reduction in workforce of over 100 employees worldwide. The affected employees are entitled to additional termination costs in the amount of approximately $4 million, which was recognized as an expense in the six months ended June 29, 2024. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 29, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements have been prepared on the same basis as the Company’s annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2023 was a 52 week fiscal year; fiscal year 2024 is also a 52 week fiscal year. The results of operations for the three and six months ended June 29, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2024. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 30, 2023. There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 30, 2023, except as detailed below regarding accounting for investments. For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 30, 2023. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts and events reported and disclosed in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions and factors, including the current economic environment, that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. On an on-going basis, management evaluates its estimates, judgments, and assumptions. The most significant estimates and assumptions relate to useful lives of intangible assets, impairment assessment of intangible assets and goodwill and income taxes. Investments Debt Investments Marketable debt securities consist of highly liquid U.S. government bonds with maturities of up to six months when purchased. These debt investments are classified as Available For Sale investments and measured at fair value with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). We consider all highly liquid debt investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Debt investments with original maturities of greater than three months and less than one year, are classified within other current assets. Available for sale debt investments are subject to a periodic impairment review. For investments in an unrealized loss position, we determine whether a credit loss exists. We recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required or we intend to sell the investment before recovery of its amortized cost basis. Equity Investments Equity investments consist of investments in marketable equity securities. Equity investments are measured and recorded at fair value with changes in fair value, whether realized or unrealized, recorded in the statement of operations. Equity investments are classified within other current assets. Cash, cash equivalents and restricted cash The following is a reconciliation of cash, cash equivalents and restricted cash as of each period end: As of U.S. dollars in millions June 29, 2024 December 30, 2023 Cash $ 50 $ 58 Short term deposits 224 222 Money market funds 927 932 U.S. Government bonds 2 — Restricted cash (within other current and other long-term assets) 13 14 Cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 1,216 $ 1,226 Fair value measurement The carrying value of short term deposits classified as cash equivalents approximates their fair value due to the short maturity of these items. The Company’s investment in money market funds is measured at fair value within Level 1 of the fair value hierarchy because they consist of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the three months ended June 29, 2024 and July 1, 2023 amounted to $12 million and $12 million, respectively; and $24 million and $20 million for the six months ended June 29, 2024 and July 1, 2023, respectively. The Company’s investment in U.S. government bonds is measured at fair value within Level 1 of the fair value hierarchy because they consist of U.S. government bonds for which quoted prices are available in an active market. The Company’s marketable equity investments are measured at fair value within Level 1 of the fair value hierarchy because they consist of investments in marketable equity securities for which quoted prices are available in an active market. The carrying amounts of trade accounts receivable and accounts payable approximate fair value because of their generally short maturities. Research and development, net Research and development expenses are expensed as incurred, and consist primarily of personnel, facilities, equipment, and supplies for research and development activities. The Company occasionally enters into best-efforts nonrefundable, non-recurring engineering (“NRE”) arrangements pursuant to which the Company is reimbursed for a portion of the research and development expenses attributable to specific development programs. The Company does not receive any additional compensation or royalties upon completion of such projects and the potential customer does not commit to purchase the resulting product in the future. The participation reimbursement received by the Company does not depend on whether there are future benefits from the project. All intellectual property generated from these arrangements is exclusively owned by the Company. Participation in expenses for research and development projects are recognized on the basis of the costs incurred and are netted against research and development expenses in the condensed consolidated statements of operations and comprehensive income (loss). Research and development reimbursements of $12 million and $16 million were offset against research and development costs in the three months ended June 29, 2024 and July 1, 2023, respectively; and $48 million and $33 million were offset in the six months ended June 29, 2024 and July 1, 2023, respectively. Derivatives and hedging Beginning in 2021, as part of Intel’s corporate hedging program, Intel hedges forecasted cash flows denominated in Israeli Shekels (“ILS”) related to the Company. ILS is the largest operating expense currency of the Company. Intel combines all of its ILS exposures, and as part of Intel’s hedging program enters into hedging contracts to hedge Intel’s combined ILS exposure. Derivative gains and losses attributed to these condensed consolidated financial statements are recorded under accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects the statement of operations. During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS and no longer participates in the hedging services agreement with Intel. As the hedged transactions and cash flows related to the outstanding instruments were expected to occur as originally forecasted, the associated gains and losses deferred in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet were reclassified into earnings in the same period or periods during which the originally hedged transactions affect earnings. Any subsequent changes in the fair value of the outstanding derivative instruments after the de-designation and termination of hedge accounting were immediately reflected in operating expenses. The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Three Months Ended Six Months Ended U.S. dollars in millions June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Amounts reclassified out of accumulated other comprehensive income (loss) — — — 10 Tax effects — — — (1) Other comprehensive income (loss), net $ — $ — $ — $ 9 Income Tax The provision for income tax consists of income taxes in the various jurisdictions where the Company is subject to taxation, primarily the United States and Israel. For interim periods, the Company recognizes an income tax benefit (provision) based on the estimated annual effective tax rate, calculated on a worldwide consolidated basis, expected for the entire year. The Company applies this rate to the year-to-date pre-tax income. The overall effective tax rate is influenced by valuation allowances on tax assets for which no benefit can be recognized due to the Company’s recent history of pretax losses sustained. Tax jurisdictions with forecasted pretax losses for the year for which no benefit can be recognized are excluded from the calculation of the worldwide estimated annual effective tax rate, and any associated tax provision or benefit for those jurisdictions is recorded separately. During the periods presented in the condensed consolidated financial statements, certain components of the Company’s business operations were included in the consolidated U.S. domestic income tax return filed by the Company’s Parent. The Company also files various foreign income tax returns on a separate basis, distinct from its Parent. The income tax provision included in the Company’s condensed consolidated financial statements has been calculated using the separate return method, as if the Company had filed its own tax returns. The Company has entered into a Tax Sharing Agreement with its Parent that establishes the amount of cash payable for the Company’s share of the tax liability owed on consolidated tax return filings with its Parent. Any differences between taxes payable to the Company’s Parent under the Tax Sharing Agreement and the current tax provision computed on a separate return basis, is reflected as adjustments to additional paid-in capital in the condensed consolidated statement of changes in equity and financing activities within the condensed consolidated statement of cash flows (see also Note 7). The Company reflects tax loss and tax credit carry-forward attributes under the separate return method approach. Such tax attributes may not be benefited in the same period as the Company’s Parent on a consolidated tax return. As a result, there are inherent differences between the Company’s separate tax return method approach and certain actual tax returns filed on a consolidated basis with Intel. Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, which include: short-term deposits, money market funds and U.S. government bonds; and also trade accounts receivable. The majority of the Company’s cash and cash equivalents are invested in banks domiciled in the U.S. and Europe, as well as in Israel. Generally, these cash equivalents may be redeemed upon demand. Short term bank deposits are held in the aforementioned banks. The money market funds consist of institutional investor money market funds and are readily redeemable to cash, and the U.S. government bonds are also highly liquid. Accordingly, management believes that these bank deposits, money market funds and U.S. government bonds, have minimal credit risk. The Company’s accounts receivables are derived primarily from sales to Tier 1 suppliers to the automotive manufacturing industry located mainly in the U.S., Europe, and China. Concentration of credit risk with respect to accounts receivables is mitigated by credit limits, ongoing credit evaluation, and account monitoring procedures. Credit is granted based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Trade accounts receivable are typically due from customers within 30 to 60 days. The Company performs ongoing credit evaluations of its customers and has not experienced any material losses in the periods presented. The Company recognizes an allowance for credit losses for any potential uncollectible amounts. The allowance is based on various factors, including historical experience, the age of the accounts receivable balances, credit quality of the customers, and other reasonable and supportable information. This allowance consists of an amount based on overall estimated exposure for the receivable portfolio and amounts identified for specific customers. Expected credit losses are recorded as general and administrative expenses in the Company’s condensed consolidated statement of operations and comprehensive income. As of June 29, 2024 and December 30, 2023, the credit loss allowance of trade accounts receivable was not material. For the three and six months ended June 29, 2024 and July 1, 2023, the charge-offs and recoveries in relation to the credit losses were not material. Customer concentration risk The Company’s business, results of operations, and financial condition for the foreseeable future will likely continue to depend on sales to a relatively small number of customers. In the future, these customers may decide not to purchase the Company’s products, may purchase fewer products than in previous years, or may alter their purchasing patterns. Further, the amount of revenue attributable to any single customer or customer concentration generally may fluctuate in any given period. In addition, a decline in the production levels of one or more of the Company’s major customers, particularly with respect to vehicle models for which the Company is a significant supplier, could reduce revenue. The loss of one or more key customers, a reduction in sales to any key customer or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition. See Note 9 related to customers that accounted for more than 10% of the Company’s total revenue and more than 10% of the total accounts receivable balance for each of the periods presented in these condensed consolidated financial statements. Dependence on a single supplier risk The Company purchases all its System on Chip (“EyeQ™ SoC”) from a single supplier. Any issues that occur and persist in connection with the manufacture, delivery, quality, or cost of the assembly and testing of inventory could have a material adverse effect on the Company’s business, results of operations and financial condition. See below regarding a shortage in EyeQ™ SoCs that the Company experienced during 2021 and 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products. Supply chain risk During the fiscal years 2022 and 2021, the semiconductor industry experienced widespread shortages of substrates and other components and available foundry manufacturing capacity. Furthermore, STMicroelectronics, the Company’s sole supplier, was not able to meet our demand for EyeQ™ SoCs during 2022, causing a significant reduction in the Company’s inventory levels. Starting in late 2022 and early 2023, such supply chain disruptions, raw material shortages and manufacturing limitations abated and during 2023, we successfully increased levels of EyeQ™ SoC inventory on hand, mitigating the potential for future supply constraints to cause a shortfall of chips. However, in the event of a reoccurrence of supply chain constraints, and subject to the duration and severity thereof, we may be required to operate with minimal or no inventory of EyeQ™ SoCs or SuperVision™ ECUs on hand. As a result, we are substantially reliant on timely shipments of EyeQ TM SoCs from STMicroelectronics and ECUs from Quanta Computer (or other suppliers) to fulfill customer orders and if such a shortfall of chips of ECUs were to occur, we may be unable to offset future supply constraints through the use of inventory on hand. Our results of operations in the three and six months ended June 29, 2024 have not been impacted by any shortfall of chips. Although we cannot fully predict the length and the severity of the impact these pressures would have on a long-term basis, we do not anticipate that our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity on a long-term basis. New Accounting pronouncements Accounting Pronouncements effective in future periods In December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. For public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. |
OTHER FINANCIAL STATEMENT DETAI
OTHER FINANCIAL STATEMENT DETAILS | 6 Months Ended |
Jun. 29, 2024 | |
OTHER FINANCIAL STATEMENT DETAILS | |
OTHER FINANCIAL STATEMENT DETAILS | NOTE 3 - OTHER FINANCIAL STATEMENT DETAILS Inventories As of U.S. dollars in millions June 29, 2024 December 30, 2023 Raw materials $ 40 $ 46 Work in process — 1 Finished goods 445 344 Total inventories $ 485 $ 391 Inventory write-downs and write-offs totaled $1 million for the three and six months ended June 29, 2024 and were not material for the three and six months ended July 1, 2023. Property and equipment As of U.S. dollars in millions June 29, 2024 December 30, 2023 Computers, electronic equipment and software $ 192 $ 167 Vehicles 14 14 Office furniture and equipment 11 11 Buildings 319 315 Leasehold improvements 40 37 Total property and equipment, gross $ 576 $ 544 Less: accumulated depreciation (120) (97) Total property and equipment, net $ 456 $ 447 Depreciation expenses totaled $16 million and $8 million for the three months ended June 29, 2024 and July 1, 2023, respectively; and $30 million and $15 million for the six months ended June 29, 2024 and July 1, 2023, respectively. During the six months ended June 29, 2024, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $7 million. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 29, 2024 | |
EQUITY | |
EQUITY | NOTE 4 - EQUITY A. Mobileye Plan Following the Mobileye IPO in October 2022, the Company’s employees are incentivized and rewarded through the grant of the Company’s equity awards under the Mobileye Global Inc. 2022 Equity Incentive Plan (“the 2022 Plan”), which are granted for Class A shares and vest upon the satisfaction of a service-based vesting condition, mostly over service periods of three years. Restricted Stock Units The RSUs activity for the six months ended June 29, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows: Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Outstanding as of December 30, 2023 14,778 $ 29.5 Granted 1,571 26.9 Vested (3,084) 22.4 Forfeited (384) 30.8 Outstanding as of June 29, 2024 12,881 $ 30.9 The RSUs activity for the three months ended June 29, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows: Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Outstanding as of March 30, 2024 15,170 $ 29.3 Granted 975 27.6 Vested (3,005) 21.9 Forfeited (259) 30.6 Outstanding as of June 29, 2024 12,881 $ 30.9 As of June 29, 2024, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $274 million, which is expected to be recognized as expense over a weighted-average period of 1.95 years. Intel Plan Prior to the Mobileye IPO, since 2017, employees of the Company had been incentivized and rewarded through the grant of Intel equity awards under Intel’s equity incentive plan which contains only a service condition. The equity awards granted generally vest over the course of three years from the grant date. Options Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of June 29, 2024 were as follows: Outstanding Exercisable Weighted average Number of remaining Weighted average Number of Weighted average Exercise price options contractual life exercise price options exercise price U.S. dollars In thousands In years U.S. dollars In thousands U.S. dollars $ 4.0 - 21.6 59 1.6 $ 6.1 52 $ 4.0 Total 59 1.6 $ 6.1 52 $ 4.0 The option activity for the six months ended June 29, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows: Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of December 30, 2023 135 1.0 $ 31.7 $ 3 Exercised (5) — 24.3 — Expired (71) — 53.6 — Options outstanding as of June 29, 2024 59 1.6 $ 6.1 $ 1 Options exercisable as of June 29, 2024 52 1.6 $ 4.0 $ 1 The option activity for the three months ended June 29, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows: Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of March 30, 2024 59 $ 1.8 $ 6.1 $ 2 Exercised — — — — Expired — — — — Options outstanding as of June 29, 2024 59 1.6 $ 6.1 $ 1 Options exercisable as of June 29, 2024 52 1.6 $ 4.0 $ 1 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of Intel’s ordinary share. On June 29, 2024, Intel’s ordinary share price was $31.0 . This represents the potential pre-tax amount receivable by the option holders had all option holders exercised their options as of such date. (2) The remaining options expected to vest as of June 29, 2024 are 7 thousand options with an average weighted exercise price of $21.6 . RSUs The RSUs activity for the six months ended June 29, 2024 for RSUs granted to the Company’s employees for Intel’s common stock was as follows: Weighted average Number of RSUs grant date fair value In thousands U.S. dollars Outstanding as of December 30, 2023 2,711 $ 44.4 Vested (735) 44.6 Forfeited (63) 45.3 Outstanding as of June 29, 2024 1,913 $ 44.3 The RSUs activity for the three months ended June 29, 2024 for RSUs granted to the Company’s employees for Intel’s common stock was as follows: Weighted average Number of RSUs grant date fair value In thousands U.S. dollars Outstanding as of March 30, 2024 2,575 $ 44.3 Vested (634) 44.3 Forfeited (28) 45.4 Outstanding as of June 29, 2024 1,913 $ 44.3 Unrecognized expenses As of June 29, 2024, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $38 million, which will be recognized over a weighted average period of 0.6 years. Share-based compensation expense summary (for both Mobileye and Intel Plans) Share-based compensation expenses included in the condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three months ended Six months ended U.S. dollars in millions June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Cost of revenue $ 1 $ 1 $ 1 $ 2 Research and development, net 55 45 108 105 Sales and marketing — 2 2 4 General and administrative 6 7 13 16 Total share-based compensation $ 62 $ 55 $ 124 $ 127 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 29, 2024 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 5 - EARNINGS (LOSS) PER SHARE The following table summarizes the calculation of basic earnings (loss) per share for the periods presented: Three months ended Six months ended June 29, July 1, June 29, July 1, In millions, except per share amounts 2024 2023 2024 2023 Numerator: Net income (loss) $ (86) $ (28) $ (304) $ (107) Denominator: Weighted average common shares - basic and diluted 806 805 806 803 Earnings (loss) per share: Basic and diluted (0.11) (0.04) (0.38) (0.13) For the three months ended June 29, 2024 and July 1, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 15.4 million and 6.2 million potential common shares, respectively; and 15.2 million and 6.7 million potential common shares for the six months ended June 29, 2024 and July 1, 2023, respectively, related to restricted stock units granted under the 2022 plan to the Company’s employees, as the effect of their inclusion would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 29, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 6 - INCOME TAXES The Company’s quarterly benefit (provision) for income taxes and the estimates of its annual effective tax rate, are subject to fluctuation due to several factors, principally including variability in overall pre-tax income and the mix of tax paying components to which such income relates. The income tax benefit (provision) included in these condensed consolidated financial statements has been calculated using the separate return method, as if the Company had filed its own tax returns. Net operating losses generated by the Company that have been utilized as part of the Parent’s consolidated income tax return filings but have not been utilized by the Company under the separate return method approach, have been reflected in these condensed consolidated financial statements because the Company will recognize a benefit for the separate return method net operating losses when determined to be realizable, whether as a deduction against current taxable income in future periods or upon recognition of associated deferred tax assets based on valuation allowance assessments. As the Company has jurisdictions that have sustained recent losses based on the separate return method, a valuation allowance is required for deferred tax assets for which no benefit can be currently realized. Provision for income tax in the six months ended June 29, 2024 was $2 million compared to a provision of $16 million in the six months ended July 1, 2023, mainly due to a higher loss before income taxes in the six months ended June 29, 2024 compared to prior year period. Similarly, the provision for income tax in the three months ended June 29, 2024, was $5 million compared to a provision for income tax of $10 million in the three months ended July 1, 2023, mainly due to a greater loss before income taxes in the three months ended June 29, 2024 compared to prior year period. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 6 Months Ended |
Jun. 29, 2024 | |
RELATED PARTIES TRANSACTIONS | |
RELATED PARTIES TRANSACTIONS | NOTE 7 - RELATED PARTIES TRANSACTIONS The Company has entered into a series of related party arrangements with Intel. For further description of the arrangements refer to Note 9 of the notes to the consolidated financial statements for the year ended December 30, 2023. Stock Compensation Recharge Agreement The Company entered into a stock compensation recharge agreement with Intel, which requires the Company to reimburse Intel for certain amounts, net of any related withholding tax, relating to the value of share-based compensation provided to the Company’s employees for RSUs or stock options exercisable in Intel stock. The reimbursement amounts recorded as an adjustment to additional paid-in capital in the condensed consolidated statement of changes in equity were $20 million and $18 million for the three months ended June 29, 2024 and July 1, 2023, respectively and $25 million and $22 million for the six months ended June 29, 2024 and July 1, 2023, respectively. Lease agreements Under lease agreements with Intel, the Company leases office space in Intel’s buildings. The costs are included in the condensed consolidated statements of operations and comprehensive income (loss) primarily on a specific and direct attribution basis. The leasing costs for the three months ended June 29, 2024 and July 1, 2023, were $0.6 million and $1.1 million, respectively and $1.2 million and $2.4 million for the six months ended June 29, 2024 and July 1, 2023, respectively. Other services to a related party The Company reimbursed its Chief Executive Officer for reasonable travel related expenses incurred while conducting business on behalf of the Company. Travel related reimbursements totaled $0.5 million and $0.5 million for the three months ended June 29, 2024 and July 1, 2023, respectively and $1.1 million and $1.2 million for the six months ended June 29, 2024 and July 1, 2023, respectively. Administrative Services Agreement Under the Administrative Services Agreement, Intel provides the Company with administrative and other services. The Company pays fees to Intel for the services rendered based on pricing per service agreed between the Company and Intel. The costs incurred under this agreement for the three months ended June 29, 2024 and July 1, 2023 were $0.2 million and $0.8 million, respectively and $1.7 million and $1.2 million for the six months ended June 29, 2024 and July 1, 2023, respectively. Technology and Services Agreement The Technology and Services Agreement, provides a framework for the collaboration on technology projects and services between the Company and Intel (“Technology Projects”), and sets out the licenses granted by each party to its respective technology for the conduct of the Technology Projects, provisions relating to the ownership of certain existing technology, the allocation of rights in any new technology created in the course of the Technology Projects, and certain provisions applicable to the development of a certain radar product of the Company. The Technology and Services Agreement will not apply to projects for the development and manufacture of a Lidar sensor system for automobiles, for which the LiDAR Product Collaboration Agreement will apply. Pursuant to the Technology and Services Agreement, the Company and Intel will agree to statements of work with additional terms for Technology Projects. The amount incurred under this agreement for the three months ended June 29, 2024 and July 1, 2023 were $1.1 million and $1.4 million, respectively and $2.2 million and $2.4 million for the six months ended June 29, 2024 and July 1, 2023, respectively. LiDAR Product Collaboration Agreement The LiDAR Product Collaboration Agreement, provides the terms that will apply to the Company’s collaboration with Intel for the development and manufacture of a Lidar sensor system for ADAS and AV in automobiles (“LiDAR Projects”). On some of the LiDAR programs joint funding will apply between Intel and Mobileye until the end of 2027 whereby Mobileye will bear its own Lidar sensor system development costs up to the first $40 million per year and Intel will bear up to $20 million per year of Mobileye’s Lidar sensor system development costs that are greater than $40 million per year. The LiDAR Product Collaboration Agreement further provides that Intel will manufacture certain components for the Company to market and sell as part of a FMCW (frequency-modulated continuous wave) lidar sensor system solely for external environment sensing for ADAS and AV in automobiles. The price for the components Intel will manufacture for the Company will be based on a cost-plus model. In addition, the agreement also includes a profit-sharing model under which Mobileye will pay Intel a share of the gross profit for each LiDAR sensor system or components thereof, based on Intel technology, sold by Mobileye. In 2023, Mobileye opted to pursue a different lidar technology, and as a result, Mobileye and Intel are no longer actively working on developing the LiDAR Project under the LiDAR Product Collaboration Agreement. Mobileye and Intel have begun negotiation of an amendment to the LiDAR Product Collaboration Agreement which contemplates the parties’ cessation of lidar development work and Mobileye’s potential, continued use of certain licenses granted by Intel under the LiDAR Product Collaboration Agreement. In connection with the foregoing, Mobileye would no longer be obligated to share its profits associated with the LiDAR Project with Intel, and Intel would no longer be obligated to provide development services for the LiDAR Project and fund Mobileye’s lidar investments beyond the $40 million per year threshold set forth in the LiDAR Product Collaboration Agreement. Final commercial terms for this amendment remain subject to further negotiation by Mobileye and Intel. There were no amounts received or receivable from Intel under this agreement for the three and six months ended June 29, 2024. Tax Sharing Agreement The Tax Sharing Agreement establishes the respective rights, responsibilities and obligations of the Company and Intel after the completion of the Mobileye IPO with respect to tax matters, including the amount of cash the Company will pay to Intel for its share of the tax liability owed on the consolidated filings in which the Company or any of the Company’s subsidiaries are included, audit or other tax proceedings. As of June 29, 2024 and December 30, 2023, the related party payable to Intel, pursuant to the Tax Sharing Agreement was $37 million. Intel Sublicense In June 2024, Intel and its affiliates, including Mobileye, were granted a sublicense to certain patents relating to network-on-chip and other technologies (the “Sublicense”). In connection with Mobileye’s use of the Sublicense, Intel and Mobileye agreed that Mobileye would pay to Intel $0.3 million as Mobileye’s allocation of the consideration paid by Intel for the Sublicense. |
IDENTIFIED INTANGIBLE ASSETS
IDENTIFIED INTANGIBLE ASSETS | 6 Months Ended |
Jun. 29, 2024 | |
IDENTIFIED INTANGIBLE ASSETS | |
IDENTIFIED INTANGIBLE ASSETS | NOTE 8 - IDENTIFIED INTANGIBLE ASSETS As of June 29, 2024 December 30, 2023 Accumulated Accumulated U.S. dollars in millions Gross Assets Amortization Net Gross Assets Amortization Net Developed technology $ 3,705 $ 2,196 $ 1,509 $ 3,705 $ 2,008 $ 1,697 Customer relationships & brands 786 464 322 786 430 356 Total $ 4,491 $ 2,660 $ 1,831 $ 4,491 $ 2,438 $ 2,053 The following table presents the amortization expenses recorded for these identified intangible assets and their weighted average useful lives: Three months ended Six months ended Weighted June 29, July 1, June 29, July 1, Average U.S. dollars in millions 2024 2023 2024 2023 Useful Life Developed technology $ 94 $ 101 $ 188 $ 217 10 Customer relationships & brands 17 17 34 34 12 Total amortization expenses $ 111 $ 118 $ 222 $ 251 The Company expects future amortization expenses for the next five years and thereafter to be as follows: Remainder U.S. dollars in millions of 2024 2025 2026 2027 2028 Thereafter Total Future amortization expenses $ 222 $ 443 $ 332 $ 179 $ 176 $ 479 $ 1,831 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 29, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 9 - SEGMENT INFORMATION An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer (“CEO”). The Company’s organizational structure and management reporting supports two operating segments: Mobileye and Moovit. The CODM evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Operating segments do not record inter-segment revenue. Mobileye is the Company’s only reportable operating segment and Moovit is presented within “Other” as per ASC 280, Segment Reporting. Segment performance is the operating income reported excluding the amortization of acquisition-related intangible assets. The CODM uses segment performance to allocate resources (including employees and financial resources) to segments in the annual budget and forecasting process and also uses that measure to assess the segment performance. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM. The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in Note 2 to the audited consolidated financial statements for the fiscal year ended December 30, 2023. The following are segment results for each period as follows: Three months ended June 29, 2024 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 428 $ 11 $ — $ 439 Cost of revenues 134 2 94 230 Research and development, net 246 10 — 256 Sales and marketing 5 6 17 28 General and administrative 17 2 — 19 Segment performance $ 26 $ (9) $ (111) $ (94) Other financial income (expense), net 13 Income (loss) before taxes on income (81) Share-based compensation 59 3 — 62 Depreciation of property and equipment 16 — — 16 Three months ended July 1, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 446 $ 8 $ — $ 454 Cost of revenues 127 2 101 230 Research and development, net 201 10 — 211 Sales and marketing 9 3 17 29 General and administrative 15 2 — 17 Segment performance $ 94 $ (9) $ (118) $ (33) Other financial income (expense), net 15 Income (loss) before taxes on income (18) Share-based compensation 50 5 — 55 Depreciation of property and equipment 8 — — 8 Six months ended June 29, 2024 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 659 $ 19 $ — $ 678 Cost of revenues 224 3 188 415 Research and development, net 480 19 — 499 Sales and marketing 20 8 34 62 General and administrative 29 5 — 34 Segment performance $ (94) $ (16) $ (222) $ (332) Other financial income (expense), net — — — 30 Income (loss) before taxes on income — — — (302) Share-based compensation 117 7 — 124 Depreciation of property and equipment 30 — — 30 Six months ended July 1, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 896 $ 16 $ — $ 912 Cost of revenues 261 3 217 481 Research and development, net 425 21 — 446 Sales and marketing 22 6 34 62 General and administrative 32 5 — 37 Segment performance $ 156 $ (19) $ (251) $ (114) Other financial income (expense), net — — — 23 Income (loss) before taxes on income — — — (91) Share-based compensation 116 11 — 127 Depreciation of property and equipment 15 — — 15 Total revenues based on the country that the product was shipped to were as follows: Three months ended Six months ended June 29, July 1, June 29, July 1, U.S. dollars in millions 2024 2023 2024 2023 China 113 110 199 269 USA 91 93 109 173 Germany 57 86 96 169 South Korea 45 41 92 81 United Kingdom 42 46 55 77 Poland 27 20 31 42 Hungary 23 25 35 34 Czech Republic 11 14 16 30 Portugal 9 — 9 — Slovakia 5 — 10 — Rest of World 16 19 26 37 Total $ 439 $ 454 $ 678 $ 912 We generate the majority of our revenue from the sale of our EyeQ TM TM Major Customers Revenue from major customers that amount to 10% or more of total revenue: Three months ended Six months ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Percent of total revenues: Customer A 32 % 32 % 24 % 28 % Customer B 15 % 23 % 17 % 27 % Customer C 17 % 14 % 13 % 13 % Customer D * * 11 % * Customer E 10 % * 13 % * Customer F * * 12 % * *Less than 10% Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance: As of June 29, December 30, 2024 2023 Percent of total accounts receivables balance: Customer A 46 % 44 % Customer B * 10 % Customer C 20 % 22 % *Less than 10% |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 29, 2024 | |
INVESTMENTS | |
INVESTMENTS | NOTE 10 - INVESTMENTS Debt Investments Debt investments include U.S. government bonds and money market funds. U.S. government bonds are for original maturities of up to six months and are classified as available for sale and measured at fair value with the related unrealized gains and losses included in other comprehensive income (expense), net. Money market funds, measured at fair value, consist of institutional investors money market funds and are readily redeemable to cash. The following tables summarize the Company’s marketable debt securities: June 29, 2024 Reported as Cash and cash Other current U.S. dollars in millions Amortized cost Unrealized gain Unrealized loss Fair value equivalents assets U.S. government bonds $ 10 $ — $ — $ 10 $ 2 $ 8 Money market funds 927 — — 927 927 — Total $ 937 $ — $ — $ 937 $ 929 $ 8 December 30, 2023 Reported as Cash and cash Other current U.S. dollars in millions Amortized cost Unrealized gain Unrealized loss Fair value equivalents assets Money market funds $ 932 $ — $ — $ 932 $ 932 $ — Total $ 932 $ — $ — $ 932 $ 932 $ — Equity Investments The fair value of equity investments which were purchased during the period and classified within other current assets, was $9 million as of June 29, 2024. Unrealized gains and losses recorded in other financial income (expense), net for the three and six months ended June 29, 2024 amounted to $(1) million. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 29, 2024 | |
CONTINGENCIES | |
CONTINGENCIES | NOTE 11 - CONTINGENCIES U.S. Class Action On January 16, 2024, a putative class action captioned McAuliffe v. Mobileye Global Inc., et al., 1:24-CV-00310 (S.D.N.Y.), was filed in the United States District Court for the Southern District of New York against Mobileye and certain of its current and former officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with defendants’ alleged misstatements and omissions concerning the build-up of excess inventory by certain Tier 1 Mobileye customers. The complaint seeks unspecified damages and other relief on behalf of all persons and entities who purchased or otherwise acquired Mobileye securities between January 26, 2023 and January 3, 2024. On July 12, 2024, the court consolidated the McAuliffe case with a substantively identical case, Le v. Mobileye Global Inc., et al., 1:24-CV-01390 (S.D.N.Y.), appointed a lead plaintiff, and set an initial schedule for the consolidated case. We intend to defend the matter vigorously. No provision was recorded in the financial statements as of June 29, 2024. U.S. Derivative Action On April 12, 2024, a derivative lawsuit was filed against the members of the Mobileye Board of Directors and Intel Corporation, in its capacity as Mobileye’s controlling shareholder. Mobileye was also named as a nominal defendant. The complaint principally asserts claims for breach of fiduciary duty and unjust enrichment based on alleged failures to take steps to prevent the Company from making allegedly false and misleading statements concerning the build-up of excess inventory by certain Tier 1 Mobileye customers. The complaint also asserts a claim for violation of Section 14(a) of the Securities Exchange Act of 1934 based on alleged misstatements and omissions in Mobileye’s 2023 proxy statement. The complaint seeks unspecified damages and other relief. Since May 24, 2024, the derivative action has been stayed by the court pending resolution of the anticipated motion to dismiss in the consolidated securities action. On June 27, 2024, an additional derivative lawsuit was filed in the United States District Court for the Southern District of New York against certain members of the Mobileye Board of Directors, certain of Mobileye’s current and former officers, and Intel Corporation, in its capacity as Mobileye’s controlling shareholder. Mobileye was also named as a nominal defendant. On July 9, 2024, this derivative action was consolidated with the derivative action originally filed on April 12, 2024 and the consolidated derivative action was stayed by the court pending resolution of the anticipated motion to dismiss in the consolidated securities action. We intend to defend the derivative claims vigorously. No provision for the consolidated derivative action was recorded in the financial statements as of June 29, 2024. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 29, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS In July 2024, the Company’s compensation committee approved the issuance of restricted stock units to be issued under our 2022 Equity Incentive Plan. The total aggregate fair value of RSUs granted was $278 million, which consisted of 10,391 thousand RSUs, which will vest over a service period of three years. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (86) | $ (28) | $ (304) | $ (107) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements have been prepared on the same basis as the Company’s annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2023 was a 52 week fiscal year; fiscal year 2024 is also a 52 week fiscal year. The results of operations for the three and six months ended June 29, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2024. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 30, 2023. There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 30, 2023, except as detailed below regarding accounting for investments. For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 30, 2023. |
Use of estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts and events reported and disclosed in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions and factors, including the current economic environment, that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. On an on-going basis, management evaluates its estimates, judgments, and assumptions. The most significant estimates and assumptions relate to useful lives of intangible assets, impairment assessment of intangible assets and goodwill and income taxes. |
Investments | Investments Debt Investments Marketable debt securities consist of highly liquid U.S. government bonds with maturities of up to six months when purchased. These debt investments are classified as Available For Sale investments and measured at fair value with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). We consider all highly liquid debt investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Debt investments with original maturities of greater than three months and less than one year, are classified within other current assets. Available for sale debt investments are subject to a periodic impairment review. For investments in an unrealized loss position, we determine whether a credit loss exists. We recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required or we intend to sell the investment before recovery of its amortized cost basis. Equity Investments Equity investments consist of investments in marketable equity securities. Equity investments are measured and recorded at fair value with changes in fair value, whether realized or unrealized, recorded in the statement of operations. Equity investments are classified within other current assets. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash The following is a reconciliation of cash, cash equivalents and restricted cash as of each period end: As of U.S. dollars in millions June 29, 2024 December 30, 2023 Cash $ 50 $ 58 Short term deposits 224 222 Money market funds 927 932 U.S. Government bonds 2 — Restricted cash (within other current and other long-term assets) 13 14 Cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 1,216 $ 1,226 |
Fair value measurement | Fair value measurement The carrying value of short term deposits classified as cash equivalents approximates their fair value due to the short maturity of these items. The Company’s investment in money market funds is measured at fair value within Level 1 of the fair value hierarchy because they consist of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the three months ended June 29, 2024 and July 1, 2023 amounted to $12 million and $12 million, respectively; and $24 million and $20 million for the six months ended June 29, 2024 and July 1, 2023, respectively. The Company’s investment in U.S. government bonds is measured at fair value within Level 1 of the fair value hierarchy because they consist of U.S. government bonds for which quoted prices are available in an active market. The Company’s marketable equity investments are measured at fair value within Level 1 of the fair value hierarchy because they consist of investments in marketable equity securities for which quoted prices are available in an active market. The carrying amounts of trade accounts receivable and accounts payable approximate fair value because of their generally short maturities. |
Research and development, net | Research and development, net Research and development expenses are expensed as incurred, and consist primarily of personnel, facilities, equipment, and supplies for research and development activities. The Company occasionally enters into best-efforts nonrefundable, non-recurring engineering (“NRE”) arrangements pursuant to which the Company is reimbursed for a portion of the research and development expenses attributable to specific development programs. The Company does not receive any additional compensation or royalties upon completion of such projects and the potential customer does not commit to purchase the resulting product in the future. The participation reimbursement received by the Company does not depend on whether there are future benefits from the project. All intellectual property generated from these arrangements is exclusively owned by the Company. Participation in expenses for research and development projects are recognized on the basis of the costs incurred and are netted against research and development expenses in the condensed consolidated statements of operations and comprehensive income (loss). Research and development reimbursements of $12 million and $16 million were offset against research and development costs in the three months ended June 29, 2024 and July 1, 2023, respectively; and $48 million and $33 million were offset in the six months ended June 29, 2024 and July 1, 2023, respectively. |
Derivatives and hedging | Derivatives and hedging Beginning in 2021, as part of Intel’s corporate hedging program, Intel hedges forecasted cash flows denominated in Israeli Shekels (“ILS”) related to the Company. ILS is the largest operating expense currency of the Company. Intel combines all of its ILS exposures, and as part of Intel’s hedging program enters into hedging contracts to hedge Intel’s combined ILS exposure. Derivative gains and losses attributed to these condensed consolidated financial statements are recorded under accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects the statement of operations. During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS and no longer participates in the hedging services agreement with Intel. As the hedged transactions and cash flows related to the outstanding instruments were expected to occur as originally forecasted, the associated gains and losses deferred in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet were reclassified into earnings in the same period or periods during which the originally hedged transactions affect earnings. Any subsequent changes in the fair value of the outstanding derivative instruments after the de-designation and termination of hedge accounting were immediately reflected in operating expenses. The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Three Months Ended Six Months Ended U.S. dollars in millions June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Amounts reclassified out of accumulated other comprehensive income (loss) — — — 10 Tax effects — — — (1) Other comprehensive income (loss), net $ — $ — $ — $ 9 |
Income Tax | Income Tax The provision for income tax consists of income taxes in the various jurisdictions where the Company is subject to taxation, primarily the United States and Israel. For interim periods, the Company recognizes an income tax benefit (provision) based on the estimated annual effective tax rate, calculated on a worldwide consolidated basis, expected for the entire year. The Company applies this rate to the year-to-date pre-tax income. The overall effective tax rate is influenced by valuation allowances on tax assets for which no benefit can be recognized due to the Company’s recent history of pretax losses sustained. Tax jurisdictions with forecasted pretax losses for the year for which no benefit can be recognized are excluded from the calculation of the worldwide estimated annual effective tax rate, and any associated tax provision or benefit for those jurisdictions is recorded separately. During the periods presented in the condensed consolidated financial statements, certain components of the Company’s business operations were included in the consolidated U.S. domestic income tax return filed by the Company’s Parent. The Company also files various foreign income tax returns on a separate basis, distinct from its Parent. The income tax provision included in the Company’s condensed consolidated financial statements has been calculated using the separate return method, as if the Company had filed its own tax returns. The Company has entered into a Tax Sharing Agreement with its Parent that establishes the amount of cash payable for the Company’s share of the tax liability owed on consolidated tax return filings with its Parent. Any differences between taxes payable to the Company’s Parent under the Tax Sharing Agreement and the current tax provision computed on a separate return basis, is reflected as adjustments to additional paid-in capital in the condensed consolidated statement of changes in equity and financing activities within the condensed consolidated statement of cash flows (see also Note 7). The Company reflects tax loss and tax credit carry-forward attributes under the separate return method approach. Such tax attributes may not be benefited in the same period as the Company’s Parent on a consolidated tax return. As a result, there are inherent differences between the Company’s separate tax return method approach and certain actual tax returns filed on a consolidated basis with Intel. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, which include: short-term deposits, money market funds and U.S. government bonds; and also trade accounts receivable. The majority of the Company’s cash and cash equivalents are invested in banks domiciled in the U.S. and Europe, as well as in Israel. Generally, these cash equivalents may be redeemed upon demand. Short term bank deposits are held in the aforementioned banks. The money market funds consist of institutional investor money market funds and are readily redeemable to cash, and the U.S. government bonds are also highly liquid. Accordingly, management believes that these bank deposits, money market funds and U.S. government bonds, have minimal credit risk. The Company’s accounts receivables are derived primarily from sales to Tier 1 suppliers to the automotive manufacturing industry located mainly in the U.S., Europe, and China. Concentration of credit risk with respect to accounts receivables is mitigated by credit limits, ongoing credit evaluation, and account monitoring procedures. Credit is granted based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Trade accounts receivable are typically due from customers within 30 to 60 days. The Company performs ongoing credit evaluations of its customers and has not experienced any material losses in the periods presented. The Company recognizes an allowance for credit losses for any potential uncollectible amounts. The allowance is based on various factors, including historical experience, the age of the accounts receivable balances, credit quality of the customers, and other reasonable and supportable information. This allowance consists of an amount based on overall estimated exposure for the receivable portfolio and amounts identified for specific customers. Expected credit losses are recorded as general and administrative expenses in the Company’s condensed consolidated statement of operations and comprehensive income. As of June 29, 2024 and December 30, 2023, the credit loss allowance of trade accounts receivable was not material. For the three and six months ended June 29, 2024 and July 1, 2023, the charge-offs and recoveries in relation to the credit losses were not material. |
Customer concentration risk | Customer concentration risk The Company’s business, results of operations, and financial condition for the foreseeable future will likely continue to depend on sales to a relatively small number of customers. In the future, these customers may decide not to purchase the Company’s products, may purchase fewer products than in previous years, or may alter their purchasing patterns. Further, the amount of revenue attributable to any single customer or customer concentration generally may fluctuate in any given period. In addition, a decline in the production levels of one or more of the Company’s major customers, particularly with respect to vehicle models for which the Company is a significant supplier, could reduce revenue. The loss of one or more key customers, a reduction in sales to any key customer or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition. See Note 9 related to customers that accounted for more than 10% of the Company’s total revenue and more than 10% of the total accounts receivable balance for each of the periods presented in these condensed consolidated financial statements. |
Dependence on a single supplier risk | Dependence on a single supplier risk The Company purchases all its System on Chip (“EyeQ™ SoC”) from a single supplier. Any issues that occur and persist in connection with the manufacture, delivery, quality, or cost of the assembly and testing of inventory could have a material adverse effect on the Company’s business, results of operations and financial condition. See below regarding a shortage in EyeQ™ SoCs that the Company experienced during 2021 and 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products. |
Supply chain risk | Supply chain risk During the fiscal years 2022 and 2021, the semiconductor industry experienced widespread shortages of substrates and other components and available foundry manufacturing capacity. Furthermore, STMicroelectronics, the Company’s sole supplier, was not able to meet our demand for EyeQ™ SoCs during 2022, causing a significant reduction in the Company’s inventory levels. Starting in late 2022 and early 2023, such supply chain disruptions, raw material shortages and manufacturing limitations abated and during 2023, we successfully increased levels of EyeQ™ SoC inventory on hand, mitigating the potential for future supply constraints to cause a shortfall of chips. However, in the event of a reoccurrence of supply chain constraints, and subject to the duration and severity thereof, we may be required to operate with minimal or no inventory of EyeQ™ SoCs or SuperVision™ ECUs on hand. As a result, we are substantially reliant on timely shipments of EyeQ TM SoCs from STMicroelectronics and ECUs from Quanta Computer (or other suppliers) to fulfill customer orders and if such a shortfall of chips of ECUs were to occur, we may be unable to offset future supply constraints through the use of inventory on hand. Our results of operations in the three and six months ended June 29, 2024 have not been impacted by any shortfall of chips. Although we cannot fully predict the length and the severity of the impact these pressures would have on a long-term basis, we do not anticipate that our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity on a long-term basis. |
New Accounting pronouncements | New Accounting pronouncements Accounting Pronouncements effective in future periods In December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. For public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | As of U.S. dollars in millions June 29, 2024 December 30, 2023 Cash $ 50 $ 58 Short term deposits 224 222 Money market funds 927 932 U.S. Government bonds 2 — Restricted cash (within other current and other long-term assets) 13 14 Cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 1,216 $ 1,226 |
Schedule of change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging | Three Months Ended Six Months Ended U.S. dollars in millions June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Amounts reclassified out of accumulated other comprehensive income (loss) — — — 10 Tax effects — — — (1) Other comprehensive income (loss), net $ — $ — $ — $ 9 |
OTHER FINANCIAL STATEMENT DET_2
OTHER FINANCIAL STATEMENT DETAILS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
OTHER FINANCIAL STATEMENT DETAILS | |
Schedule of inventories | As of U.S. dollars in millions June 29, 2024 December 30, 2023 Raw materials $ 40 $ 46 Work in process — 1 Finished goods 445 344 Total inventories $ 485 $ 391 |
Schedule of property and equipment, net | As of U.S. dollars in millions June 29, 2024 December 30, 2023 Computers, electronic equipment and software $ 192 $ 167 Vehicles 14 14 Office furniture and equipment 11 11 Buildings 319 315 Leasehold improvements 40 37 Total property and equipment, gross $ 576 $ 544 Less: accumulated depreciation (120) (97) Total property and equipment, net $ 456 $ 447 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
EQUITY | |
Schedule of RSUs activity | Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Outstanding as of December 30, 2023 14,778 $ 29.5 Granted 1,571 26.9 Vested (3,084) 22.4 Forfeited (384) 30.8 Outstanding as of June 29, 2024 12,881 $ 30.9 Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Outstanding as of March 30, 2024 15,170 $ 29.3 Granted 975 27.6 Vested (3,005) 21.9 Forfeited (259) 30.6 Outstanding as of June 29, 2024 12,881 $ 30.9 |
Schedule of outstanding and exercisable options | Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of June 29, 2024 were as follows: Outstanding Exercisable Weighted average Number of remaining Weighted average Number of Weighted average Exercise price options contractual life exercise price options exercise price U.S. dollars In thousands In years U.S. dollars In thousands U.S. dollars $ 4.0 - 21.6 59 1.6 $ 6.1 52 $ 4.0 Total 59 1.6 $ 6.1 52 $ 4.0 |
Schedule of option activity | Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of December 30, 2023 135 1.0 $ 31.7 $ 3 Exercised (5) — 24.3 — Expired (71) — 53.6 — Options outstanding as of June 29, 2024 59 1.6 $ 6.1 $ 1 Options exercisable as of June 29, 2024 52 1.6 $ 4.0 $ 1 Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of March 30, 2024 59 $ 1.8 $ 6.1 $ 2 Exercised — — — — Expired — — — — Options outstanding as of June 29, 2024 59 1.6 $ 6.1 $ 1 Options exercisable as of June 29, 2024 52 1.6 $ 4.0 $ 1 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of Intel’s ordinary share. On June 29, 2024, Intel’s ordinary share price was $31.0 . This represents the potential pre-tax amount receivable by the option holders had all option holders exercised their options as of such date. (2) The remaining options expected to vest as of June 29, 2024 are 7 thousand options with an average weighted exercise price of $21.6 . |
Schedule of share-based compensation expenses | Three months ended Six months ended U.S. dollars in millions June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Cost of revenue $ 1 $ 1 $ 1 $ 2 Research and development, net 55 45 108 105 Sales and marketing — 2 2 4 General and administrative 6 7 13 16 Total share-based compensation $ 62 $ 55 $ 124 $ 127 |
Intel | |
EQUITY | |
Schedule of RSUs activity | Weighted average Number of RSUs grant date fair value In thousands U.S. dollars Outstanding as of December 30, 2023 2,711 $ 44.4 Vested (735) 44.6 Forfeited (63) 45.3 Outstanding as of June 29, 2024 1,913 $ 44.3 Weighted average Number of RSUs grant date fair value In thousands U.S. dollars Outstanding as of March 30, 2024 2,575 $ 44.3 Vested (634) 44.3 Forfeited (28) 45.4 Outstanding as of June 29, 2024 1,913 $ 44.3 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of calculation of basic and diluted earnings (loss) per share | Three months ended Six months ended June 29, July 1, June 29, July 1, In millions, except per share amounts 2024 2023 2024 2023 Numerator: Net income (loss) $ (86) $ (28) $ (304) $ (107) Denominator: Weighted average common shares - basic and diluted 806 805 806 803 Earnings (loss) per share: Basic and diluted (0.11) (0.04) (0.38) (0.13) |
IDENTIFIED INTANGIBLE ASSETS (T
IDENTIFIED INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
IDENTIFIED INTANGIBLE ASSETS | |
Schedule of components of identified intangible assets | As of June 29, 2024 December 30, 2023 Accumulated Accumulated U.S. dollars in millions Gross Assets Amortization Net Gross Assets Amortization Net Developed technology $ 3,705 $ 2,196 $ 1,509 $ 3,705 $ 2,008 $ 1,697 Customer relationships & brands 786 464 322 786 430 356 Total $ 4,491 $ 2,660 $ 1,831 $ 4,491 $ 2,438 $ 2,053 |
Schedule of amortization expenses recorded for these identified intangible assets and their weighted average useful lives | Three months ended Six months ended Weighted June 29, July 1, June 29, July 1, Average U.S. dollars in millions 2024 2023 2024 2023 Useful Life Developed technology $ 94 $ 101 $ 188 $ 217 10 Customer relationships & brands 17 17 34 34 12 Total amortization expenses $ 111 $ 118 $ 222 $ 251 |
Schedule of expects future amortization expenses for the next five years | Remainder U.S. dollars in millions of 2024 2025 2026 2027 2028 Thereafter Total Future amortization expenses $ 222 $ 443 $ 332 $ 179 $ 176 $ 479 $ 1,831 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
SEGMENT INFORMATION | |
Schedule of segment results | Three months ended June 29, 2024 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 428 $ 11 $ — $ 439 Cost of revenues 134 2 94 230 Research and development, net 246 10 — 256 Sales and marketing 5 6 17 28 General and administrative 17 2 — 19 Segment performance $ 26 $ (9) $ (111) $ (94) Other financial income (expense), net 13 Income (loss) before taxes on income (81) Share-based compensation 59 3 — 62 Depreciation of property and equipment 16 — — 16 Three months ended July 1, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 446 $ 8 $ — $ 454 Cost of revenues 127 2 101 230 Research and development, net 201 10 — 211 Sales and marketing 9 3 17 29 General and administrative 15 2 — 17 Segment performance $ 94 $ (9) $ (118) $ (33) Other financial income (expense), net 15 Income (loss) before taxes on income (18) Share-based compensation 50 5 — 55 Depreciation of property and equipment 8 — — 8 Six months ended June 29, 2024 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 659 $ 19 $ — $ 678 Cost of revenues 224 3 188 415 Research and development, net 480 19 — 499 Sales and marketing 20 8 34 62 General and administrative 29 5 — 34 Segment performance $ (94) $ (16) $ (222) $ (332) Other financial income (expense), net — — — 30 Income (loss) before taxes on income — — — (302) Share-based compensation 117 7 — 124 Depreciation of property and equipment 30 — — 30 Six months ended July 1, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 896 $ 16 $ — $ 912 Cost of revenues 261 3 217 481 Research and development, net 425 21 — 446 Sales and marketing 22 6 34 62 General and administrative 32 5 — 37 Segment performance $ 156 $ (19) $ (251) $ (114) Other financial income (expense), net — — — 23 Income (loss) before taxes on income — — — (91) Share-based compensation 116 11 — 127 Depreciation of property and equipment 15 — — 15 |
Schedule of total revenues based on country | Three months ended Six months ended June 29, July 1, June 29, July 1, U.S. dollars in millions 2024 2023 2024 2023 China 113 110 199 269 USA 91 93 109 173 Germany 57 86 96 169 South Korea 45 41 92 81 United Kingdom 42 46 55 77 Poland 27 20 31 42 Hungary 23 25 35 34 Czech Republic 11 14 16 30 Portugal 9 — 9 — Slovakia 5 — 10 — Rest of World 16 19 26 37 Total $ 439 $ 454 $ 678 $ 912 |
Schedule of concentration of risk | Three months ended Six months ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Percent of total revenues: Customer A 32 % 32 % 24 % 28 % Customer B 15 % 23 % 17 % 27 % Customer C 17 % 14 % 13 % 13 % Customer D * * 11 % * Customer E 10 % * 13 % * Customer F * * 12 % * *Less than 10% As of June 29, December 30, 2024 2023 Percent of total accounts receivables balance: Customer A 46 % 44 % Customer B * 10 % Customer C 20 % 22 % *Less than 10% |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
INVESTMENTS | |
Schedule of marketable debt securities | June 29, 2024 Reported as Cash and cash Other current U.S. dollars in millions Amortized cost Unrealized gain Unrealized loss Fair value equivalents assets U.S. government bonds $ 10 $ — $ — $ 10 $ 2 $ 8 Money market funds 927 — — 927 927 — Total $ 937 $ — $ — $ 937 $ 929 $ 8 December 30, 2023 Reported as Cash and cash Other current U.S. dollars in millions Amortized cost Unrealized gain Unrealized loss Fair value equivalents assets Money market funds $ 932 $ — $ — $ 932 $ 932 $ — Total $ 932 $ — $ — $ 932 $ 932 $ — |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2024 | Jun. 29, 2024 | |
GENERAL | ||
Percentage of employees who have been called to reserve duty in the Israel Defense Forces | 3.60% | |
Number of employees worldwide reduction in workforce approximately | 100 | |
Additional termination costs | $ 4 | |
Intel | ||
GENERAL | ||
Percentage of voting power of common stock | 98.60% | |
Intel | Mobileye | ||
GENERAL | ||
Percentage of outstanding common stock | 87.90% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Interest income related to money market funds | $ 12 | $ 12 | $ 24 | $ 20 |
Research and development reimbursements | $ 12 | $ 16 | $ 48 | $ 33 |
Minimum | ||||
SIGNIFICANT ACCOUNTING POLICIES | ||||
Trade accounts receivable term | 30 days | |||
Maximum | ||||
SIGNIFICANT ACCOUNTING POLICIES | ||||
Trade accounts receivable term | 60 days |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash | $ 50 | $ 58 | ||
Short term deposits | 224 | 222 | ||
Money market funds | 927 | 932 | ||
U.S. Government bonds | 2 | |||
Restricted cash (within other current and other long-term assets) | 13 | 14 | ||
Cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows | $ 1,216 | $ 1,226 | $ 1,157 | $ 1,035 |
Restricted cash, noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term assets |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging (Details) $ in Millions | 6 Months Ended |
Jul. 01, 2023 USD ($) | |
SIGNIFICANT ACCOUNTING POLICIES | |
Amounts reclassified out of accumulated other comprehensive income (loss) | $ 10 |
Tax effects | (1) |
Other comprehensive income (loss), net | $ 9 |
OTHER FINANCIAL STATEMENT DET_3
OTHER FINANCIAL STATEMENT DETAILS - Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2024 | Jun. 29, 2024 | Dec. 30, 2023 | |
OTHER FINANCIAL STATEMENT DETAILS | |||
Raw materials | $ 40 | $ 40 | $ 46 |
Work in process | 1 | ||
Finished goods | 445 | 445 | 344 |
Total inventories | 485 | 485 | $ 391 |
Inventory write-downs and write-offs | $ 1 | $ 1 |
OTHER FINANCIAL STATEMENT DET_4
OTHER FINANCIAL STATEMENT DETAILS - Property and equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Property and equipment, net | |||||
Total property and equipment, gross | $ 576 | $ 576 | $ 544 | ||
Less: accumulated depreciation | (120) | (120) | (97) | ||
Total property and equipment, net | 456 | 456 | 447 | ||
Depreciation expenses | 16 | $ 8 | 30 | $ 15 | |
Cost and accumulated depreciation of fully depreciated assets | 7 | ||||
Computers, electronic equipment and software | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 192 | 192 | 167 | ||
Vehicles | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 14 | 14 | 14 | ||
Office furniture and equipment | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 11 | 11 | 11 | ||
Buildings | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 319 | 319 | 315 | ||
Leasehold improvements | |||||
Property and equipment, net | |||||
Total property and equipment, gross | $ 40 | $ 40 | $ 37 |
EQUITY - Stock-based compensati
EQUITY - Stock-based compensation plans (Details) | 6 Months Ended |
Jun. 29, 2024 | |
EQUITY | |
Service period | 3 years |
EQUITY - RSU activity (Details)
EQUITY - RSU activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 29, 2024 USD ($) $ / shares shares | Jun. 29, 2024 USD ($) $ / shares shares | |
Weighted average grant date fair value | ||
Unrecognized compensation cost | $ | $ 274 | $ 274 |
weighted average period | 1 year 11 months 12 days | |
2022 Equity Incentive Plan | RSUs | ||
Number of RSUs | ||
Outstanding at beginning | shares | 15,170 | 14,778 |
Granted | shares | 975 | 1,571 |
Vested | shares | (3,005) | (3,084) |
Forfeited | shares | (259) | (384) |
Outstanding at ending | shares | 12,881 | 12,881 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ / shares | $ 29.3 | $ 29.5 |
Granted | $ / shares | 27.6 | 26.9 |
Vested | $ / shares | 21.9 | 22.4 |
Forfeited | $ / shares | 30.6 | 30.8 |
Outstanding at ending | $ / shares | $ 30.9 | $ 30.9 |
Intel 2006 Plan | RSUs | ||
Number of RSUs | ||
Outstanding at beginning | shares | 2,575 | 2,711 |
Vested | shares | (634) | (735) |
Forfeited | shares | (28) | (63) |
Outstanding at ending | shares | 1,913 | 1,913 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ / shares | $ 44.3 | $ 44.4 |
Vested | $ / shares | 44.3 | 44.6 |
Forfeited | $ / shares | 45.4 | 45.3 |
Outstanding at ending | $ / shares | $ 44.3 | $ 44.3 |
Unrecognized compensation cost | $ | $ 38 | $ 38 |
weighted average period | 7 months 6 days |
EQUITY - Outstanding and exerci
EQUITY - Outstanding and exercisable options (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 29, 2024 | Mar. 30, 2024 | Jun. 29, 2024 | Dec. 30, 2023 | Dec. 31, 2017 | |
EQUITY | |||||
Outstanding, Number of options | 59 | 59 | 59 | 135 | |
Outstanding, Weighted average remaining contractual life (In years) | 1 year 7 months 6 days | 1 year 9 months 18 days | 1 year 7 months 6 days | 1 year | |
Outstanding, Weighted average exercise price | $ 6.1 | $ 6.1 | $ 6.1 | $ 31.7 | |
Exercisable, Number of options | 52 | 52 | |||
Exercisable, Weighted average exercise price | $ 4 | $ 4 | |||
Intel's plan | |||||
EQUITY | |||||
Vesting period | 3 years | ||||
Outstanding, Number of options | 59 | 59 | |||
Outstanding, Weighted average remaining contractual life (In years) | 1 year 7 months 6 days | ||||
Outstanding, Weighted average exercise price | $ 6.1 | $ 6.1 | |||
Exercisable, Number of options | 52 | 52 | |||
Exercisable, Weighted average exercise price | $ 4 | $ 4 | |||
$ 4.0 - 21.6 | Intel's plan | |||||
EQUITY | |||||
Exercise price, minimum | 4 | ||||
Exercise price, maximum | $ 21.6 | ||||
Outstanding, Number of options | 59 | 59 | |||
Outstanding, Weighted average remaining contractual life (In years) | 1 year 7 months 6 days | ||||
Outstanding, Weighted average exercise price | $ 6.1 | $ 6.1 | |||
Exercisable, Number of options | 52 | 52 | |||
Exercisable, Weighted average exercise price | $ 4 | $ 4 |
EQUITY - Option activity (Detai
EQUITY - Option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 29, 2024 | Mar. 30, 2024 | Jun. 29, 2024 | Dec. 30, 2023 | |
Number of options | ||||
Options outstanding at beginning | 59 | 135 | 135 | |
Exercised | (5) | |||
Expired | (71) | |||
Options outstanding at ending | 59 | 59 | 59 | 135 |
Exercisable, Number of options | 52 | 52 | ||
Weighted average remaining contractual Life | ||||
Outstanding, Weighted average remaining contractual life (In years) | 1 year 7 months 6 days | 1 year 9 months 18 days | 1 year 7 months 6 days | 1 year |
Options exercisable | 1 year 7 months 6 days | 1 year 7 months 6 days | ||
Weighted average exercise price | ||||
Options outstanding at beginning | $ 6.1 | $ 31.7 | $ 31.7 | |
Exercised | 24.3 | |||
Expired | 53.6 | |||
Options outstanding at ending | 6.1 | $ 6.1 | 6.1 | $ 31.7 |
Exercisable | $ 4 | $ 4 | ||
Aggregated intrinsic value | ||||
Options outstanding | $ 1 | $ 2 | $ 1 | $ 3 |
Options exercisable | $ 1 | $ 1 | ||
Share price | $ 31 | $ 31 | ||
Number of options expected to vest | 7 | 7 | ||
Average weighted exercise price of options expected to vest | $ 21.6 | $ 21.6 |
EQUITY - Share-based compensati
EQUITY - Share-based compensation expense summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
EQUITY | ||||
Total share-based compensation | $ 62 | $ 55 | $ 124 | $ 127 |
Cost of revenue | ||||
EQUITY | ||||
Total share-based compensation | 1 | 1 | 1 | 2 |
Research and development, net | ||||
EQUITY | ||||
Total share-based compensation | 55 | 45 | 108 | 105 |
Sales and marketing | ||||
EQUITY | ||||
Total share-based compensation | 0 | 2 | 2 | 4 |
General and administrative | ||||
EQUITY | ||||
Total share-based compensation | $ 6 | $ 7 | $ 13 | $ 16 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
EARNINGS (LOSS) PER SHARE | ||||
Dilutive effect of equity incentive awards | 15.4 | 6.2 | 15.2 | 6.7 |
Numerator: | ||||
Net Income (Loss) | $ (86) | $ (28) | $ (304) | $ (107) |
Denominator: | ||||
Weighted average common shares - basic | 806 | 805 | 806 | 803 |
Weighted average common shares - diluted | 806 | 805 | 806 | 803 |
Earnings (loss) per share: | ||||
Basic | $ (0.11) | $ (0.04) | $ (0.38) | $ (0.13) |
Diluted | $ (0.11) | $ (0.04) | $ (0.38) | $ (0.13) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
INCOME TAXES | ||||
Provision for income tax | $ 5 | $ 10 | $ 2 | $ 16 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
RELATED PARTIES TRANSACTIONS | ||||||
Leasing costs | $ 0.6 | $ 1.1 | $ 1.2 | $ 2.4 | ||
Agreed to pay consideration for sublicense | $ 0.3 | |||||
Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Amount payable under tax sharing agreement | 37 | $ 37 | ||||
Stock Compensation Recharge Agreement | Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Adjustment to additional paid-in capital for reimbursement amount | 20 | 18 | 25 | 22 | ||
Chief Executive Officer | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Travel reimbursements cost | 0.5 | 0.5 | 1.1 | 1.2 | ||
Administrative Services Agreement | Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Costs incurred | 0.2 | 0.8 | 1.7 | 1.2 | ||
Technology and Services Agreement | Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Costs incurred | 1.1 | $ 1.4 | 2.2 | $ 2.4 | ||
LiDAR Product Collaboration Agreement | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Lidar sensor system development costs | 40 | $ 40 | ||||
LiDAR Product Collaboration Agreement | Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Lidar sensor system development costs | 20 | |||||
Amount received or receivable | $ 0 | $ 0 |
IDENTIFIED INTANGIBLE ASSETS -
IDENTIFIED INTANGIBLE ASSETS - Components (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | $ 4,491 | $ 4,491 |
Accumulated Amortization | 2,660 | 2,438 |
Net | 1,831 | 2,053 |
Developed technology | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 3,705 | 3,705 |
Accumulated Amortization | 2,196 | 2,008 |
Net | 1,509 | 1,697 |
Customer relationships & brands | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 786 | 786 |
Accumulated Amortization | 464 | 430 |
Net | $ 322 | $ 356 |
IDENTIFIED INTANGIBLE ASSETS _2
IDENTIFIED INTANGIBLE ASSETS - Amortization expenses and weighted average useful lives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
IDENTIFIED INTANGIBLE ASSETS | ||||
Total amortization expenses | $ 111 | $ 118 | $ 222 | $ 251 |
Developed technology | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Amortization of intangible assets | $ 94 | $ 101 | $ 188 | $ 217 |
Developed technology | Weighted Average Useful Life | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Weighted Average Useful Life | 10 years | 10 years | 10 years | 10 years |
Customer relationships & brands | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Amortization of intangible assets | $ 17 | $ 17 | $ 34 | $ 34 |
Customer relationships & brands | Weighted Average Useful Life | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Weighted Average Useful Life | 12 years | 12 years | 12 years | 12 years |
IDENTIFIED INTANGIBLE ASSETS _3
IDENTIFIED INTANGIBLE ASSETS - Future amortization expenses (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
IDENTIFIED INTANGIBLE ASSETS | ||
Remainder of 2024 | $ 222 | |
2025 | 443 | |
2026 | 332 | |
2027 | 179 | |
2028 | 176 | |
Thereafter | 479 | |
Total | $ 1,831 | $ 2,053 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - segment | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
SEGMENT INFORMATION | ||||
Number of operating segments | 2 | |||
Percentage of revenue from majority customers | 86% | 92% | 81% | 90% |
SEGMENT INFORMATION - Segment r
SEGMENT INFORMATION - Segment results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
SEGMENT INFORMATION | ||||
Revenues | $ 439 | $ 454 | $ 678 | $ 912 |
Cost of revenues | 230 | 230 | 415 | 481 |
Research and development, net | 256 | 211 | 499 | 446 |
Sales and Marketing | 28 | 29 | 62 | 62 |
General and administrative | 19 | 17 | 34 | 37 |
Operating income (loss) | (94) | (33) | (332) | (114) |
Other financial income (expense), net | 13 | 15 | 30 | 23 |
Income (loss) before taxes on income | (81) | (18) | (302) | (91) |
Share-based compensation | 62 | 55 | 124 | 127 |
Depreciation of property and equipment | 16 | 8 | 30 | 15 |
Operating Segments | Mobileye | ||||
SEGMENT INFORMATION | ||||
Revenues | 428 | 446 | 659 | 896 |
Cost of revenues | 134 | 127 | 224 | 261 |
Research and development, net | 246 | 201 | 480 | 425 |
Sales and Marketing | 5 | 9 | 20 | 22 |
General and administrative | 17 | 15 | 29 | 32 |
Operating income (loss) | 26 | 94 | (94) | 156 |
Share-based compensation | 59 | 50 | 117 | 116 |
Depreciation of property and equipment | 16 | 8 | 30 | 15 |
Operating Segments | Other | ||||
SEGMENT INFORMATION | ||||
Revenues | 11 | 8 | 19 | 16 |
Cost of revenues | 2 | 2 | 3 | 3 |
Research and development, net | 10 | 10 | 19 | 21 |
Sales and Marketing | 6 | 3 | 8 | 6 |
General and administrative | 2 | 2 | 5 | 5 |
Operating income (loss) | (9) | (9) | (16) | (19) |
Share-based compensation | 3 | 5 | 7 | 11 |
Amounts not allocated to segments | ||||
SEGMENT INFORMATION | ||||
Cost of revenues | 94 | 101 | 188 | 217 |
Sales and Marketing | 17 | 17 | 34 | 34 |
Operating income (loss) | $ (111) | $ (118) | $ (222) | $ (251) |
SEGMENT INFORMATION - Total rev
SEGMENT INFORMATION - Total revenues based on the country (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
SEGMENT INFORMATION | ||||
Revenue | $ 439 | $ 454 | $ 678 | $ 912 |
China | ||||
SEGMENT INFORMATION | ||||
Revenue | 113 | 110 | 199 | 269 |
USA | ||||
SEGMENT INFORMATION | ||||
Revenue | 91 | 93 | 109 | 173 |
Germany | ||||
SEGMENT INFORMATION | ||||
Revenue | 57 | 86 | 96 | 169 |
South Korea | ||||
SEGMENT INFORMATION | ||||
Revenue | 45 | 41 | 92 | 81 |
United Kingdom | ||||
SEGMENT INFORMATION | ||||
Revenue | 42 | 46 | 55 | 77 |
Poland | ||||
SEGMENT INFORMATION | ||||
Revenue | 27 | 20 | 31 | 42 |
Czech Republic | ||||
SEGMENT INFORMATION | ||||
Revenue | 11 | 14 | 16 | 30 |
Hungary | ||||
SEGMENT INFORMATION | ||||
Revenue | 23 | 25 | 35 | 34 |
Portugal | ||||
SEGMENT INFORMATION | ||||
Revenue | 9 | 9 | ||
Slovakia | ||||
SEGMENT INFORMATION | ||||
Revenue | 5 | 10 | ||
Rest of World | ||||
SEGMENT INFORMATION | ||||
Revenue | $ 16 | $ 19 | $ 26 | $ 37 |
SEGMENT INFORMATION - Revenue f
SEGMENT INFORMATION - Revenue from major customers (Details) - Revenue - Customer Concentration | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | |
Customer A | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 32% | 32% | 24% | 28% |
Customer B | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 15% | 23% | 17% | 27% |
Customer C | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 17% | 14% | 13% | 13% |
Customer D | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 11% | |||
Customer E | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 10% | 13% | ||
Customer F | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 12% |
SEGMENT INFORMATION - Accounts
SEGMENT INFORMATION - Accounts receivable balances of major customers (Details) - Accounts Receivable - Credit Concentration Risk | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Dec. 30, 2023 | |
Customer A | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 46% | 44% |
Customer B | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 10% | |
Customer C | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 20% | 22% |
INVESTMENTS - Debt Investments
INVESTMENTS - Debt Investments (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
INVESTMENTS | ||
Amortized cost | $ 937 | $ 932 |
Fair value | 937 | 932 |
Cash and cash equivalents | ||
INVESTMENTS | ||
Fair value | 929 | 932 |
Other current assets | ||
INVESTMENTS | ||
Fair value | 8 | |
U.S. government bonds | ||
INVESTMENTS | ||
Amortized cost | 10 | |
Fair value | 10 | |
U.S. government bonds | Cash and cash equivalents | ||
INVESTMENTS | ||
Fair value | 2 | |
U.S. government bonds | Other current assets | ||
INVESTMENTS | ||
Fair value | 8 | |
Money market funds | ||
INVESTMENTS | ||
Amortized cost | 927 | 932 |
Fair value | 927 | 932 |
Money market funds | Cash and cash equivalents | ||
INVESTMENTS | ||
Fair value | $ 927 | $ 932 |
INVESTMENTS - Equity Investment
INVESTMENTS - Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2024 | Jun. 29, 2024 | Dec. 30, 2023 | |
INVESTMENTS | |||
Fair value of equity investments | $ 9 | $ 9 | $ 9 |
Unrealized gains and losses | $ 1 | $ 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - shares shares in Thousands | 1 Months Ended | 6 Months Ended |
Jul. 31, 2024 | Jun. 29, 2024 | |
SUBSEQUENT EVENTS | ||
Service period | 3 years | |
Subsequent Events | RSUs | ||
SUBSEQUENT EVENTS | ||
Granted shares | 278,000 | |
Granted | 10,391 | |
Service period | 3 years |