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OTHER FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 27, 2025

NOTE 3 - OTHER FINANCIAL STATEMENT DETAILS

Inventories


	As of
	December 27,		December 28,
U.S. dollars in millions	2025		2024
Raw materials	$	21	$	35
Work in process		—		1
Finished goods		306		379
Total inventories	$	327	$	415

Inventory write-downs and write-offs totaled $2 million, $3 million and $2 million for the years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively.

Property and equipment, net


	As of
	December 27,		December 28,
U.S. dollars in millions	2025		2024
Computers, electronic equipment and software	$	245	$	197
Vehicles		10		14
Office furniture and equipment		11		10
Buildings		322		321
Leasehold improvements		56		44
Total property and equipment, gross	$	644	$	586
Less: accumulated depreciation		(171)		(128)
Total property and equipment, net	$	473	$	458

Depreciation expenses totaled $74 million, $62 million, and $39 million for the years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively. During 2025 and 2024, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $32 million and $30 million, respectively.

Substantially all of the Company’s property and equipment were located in Israel as of December 27, 2025 and December 28, 2024.

Royalty bearing agreements

The Company has entered into a number of license and technology transfer agreements with third parties. The agreements allow the Company to utilize and leverage the third parties’ technology in order to integrate it into the Company’s products. In consideration thereof, the Company is obligated to pay royalties to each of the third parties, for each unit of the applicable integrated product sold to other parties. As a result, during the years ended December 27, 2025, December 28, 2024, and December 30, 2023, the Company recorded expenses of approximately $5 million, $7 million, and $9 million, respectively. These expenses were classified as a component of cost of revenue.